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, 2017
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, 450 Fifth Street, NW, Washington, DC 20549-0609. 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, 2017 |
2017 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
During the fiscal year ended April 30, 2017, the US economy continued to expand and strengthen, with unemployment declining and inflation ticking upward somewhat. Signs of an improving economy prompted the US Federal Reserve to raise interest rates in December 2016 and again in March 2017. Major US stock market indexes posted gains for the reporting period, with most hitting record highs following the US presidential election. Investors seemed to believe that the new administration’s plans to reduce tax rates, scale back regulations and increase infrastructure spending had the potential to stimulate economic growth.
While US and overseas stock markets were jolted by the UK’s decision in June 2016 to leave the European Union, markets recovered relatively quickly. During the second half of calendar 2016, small-cap stocks led the US market while large-cap stocks lagged—but that reversed in the first quarter of calendar 2017. Near the close of the fiscal year, headlines out of Washington, DC, suggested that enacting significant regulatory and tax reform might be somewhat more difficult than previously anticipated; this was a slight negative for investor sentiment. For the reporting period as a whole, information technology and financials were the strongest-performing sectors, while telecommunication services and energy were the weakest-performing sectors.
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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.
Strictly in accordance with its guidelines and mandated procedures, Dorsey, Wright & Associates, LLC (the “Index Provider”) includes securities in the Index pursuant to a proprietary selection methodology that is designed to identify companies that demonstrate powerful relative strength characteristics based upon their market performance. “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 selects approximately 100 common stocks for inclusion in the Index from an eligible universe of approximately 1,000 securities of large capitalization companies that trade on The NASDAQ Stock Market LLC and that are included in the NASDAQ Composite Index (the “Benchmark Index”). The Index Provider then uses its proprietary methodology to determine a “momentum” score for each security within the universe of eligible securities. 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 Provider includes in the Index the 100 securities with the highest momentum scores, with higher scoring securities receiving larger weights within 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, 2017, on a market price basis, the Fund returned 23.95%. On a net asset value (“NAV”) basis, the Fund returned 23.98%. During the same time period, the Index returned 24.82%. 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 as well as trading costs associated with portfolio rebalances during the period.
During this same time period, the Benchmark Index returned 28.18%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,000 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 equity market benchmark. The Benchmark Index was selected for its recognition in the marketplace, and because 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 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 most overweight in the financials sector and most underweight in the information technology sector during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund being underweight the information technology sector.
For the fiscal year ended April 30, 2017, the information technology sector contributed most significantly to the Fund’s return, followed by the health care and consumer discretionary sectors, respectively. The materials sector detracted most significantly from the Fund’s return, followed by the telecommunication services sector.
Positions that contributed most significantly to the Fund’s return included Exelixis, Inc., a health care company (portfolio average weight of 2.23%), and MarketAxess Holdings, Inc., a financials company (portfolio average weight of 2.79%). Positions that detracted most significantly from the Fund’s return included Tractor Supply Co., a consumer discretionary company (no longer held at fiscal year-end), and DexCom, Inc., a health care 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, 2017 | ||||
Information Technology | 35.3 | |||
Consumer Discretionary | 20.7 | |||
Health Care | 16.8 | |||
Financials | 15.7 | |||
Industrials | 7.5 | |||
Consumer Staples | 2.5 | |||
Energy | 1.5 | |||
Money Market Fund Plus Other Assets Less Liabilities | (0.0) | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
Apple, Inc. | 3.0 | |||
Priceline Group, Inc. (The) | 2.9 | |||
Arch Capital Group Ltd. | 2.8 | |||
Exelixis, Inc. | 2.7 | |||
MarketAxess Holdings, Inc. | 2.6 | |||
Atrion Corp. | 2.1 | |||
Skyworks Solutions, Inc. | 2.0 | |||
Amazon.com, Inc. | 2.0 | |||
IDEXX Laboratories, Inc. | 1.9 | |||
Intuit, Inc. | 1.8 | |||
Total | 23.8 |
* | 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, 2017
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 Dorsey Wright® NASDAQ Technical Leaders Index† | 24.82 | % | 11.15 | % | 37.33 | % | 12.32 | % | 78.75 | % | 5.62 | % | 72.80 | % | 9.17 | % | 241.49 | % | ||||||||||||||||||||||
NASDAQ Composite Index | 28.18 | 15.07 | 52.36 | 16.14 | 111.32 | 10.31 | 166.80 | N/A | N/A | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 23.98 | 10.43 | 34.65 | 11.50 | 72.37 | 4.92 | 61.67 | 8.46 | 211.81 | |||||||||||||||||||||||||||||||
Market Price Return | 23.95 | 10.42 | 34.62 | 11.50 | 72.35 | 4.91 | 61.54 | 8.45 | 211.29 |
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, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.81% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder 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 powershares.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, 2017. |
†† | Fund and Blended-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.
The Index is composed of stocks that NYSE Group, Inc. (the “Index Provider”), strictly in accordance with its guidelines and mandated procedures, includes pursuant to a proprietary selection methodology. The Index Provider’s selection methodology seeks to identify and select companies from the U.S. marketplace with superior risk-return profiles. 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, 2017, on a market price basis, the Fund returned 18.91%. On a net asset value (“NAV”) basis, the Fund returned 18.88%. During the same time period, the Index returned 19.71%. 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 as well as slippage associated with the portfolio’s quarterly rebalance process.
During this same time period, the S&P 500® Index (the “Benchmark Index”) returned 17.92%. 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 U.S. equity market benchmark. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the U.S. stock 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 energy sector and most underweight in the real estate sector during the fiscal year ended April 30, 2017. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to stock selection within the information technology and industrials sectors.
For the fiscal year ended April 30, 2017, the information technology sector contributed most significantly to the Fund’s return, followed by the financials and industrials sectors, respectively. The energy sector was the only detracting sector.
Positions that contributed most significantly to the Fund’s return included NVIDIA Corp., an information technology company (portfolio average weight of 2.97%), and United Continental Holdings, Inc., an industrials company (portfolio average weight of 2.35%). Positions that detracted most significantly from the Fund’s return included Seadrill Ltd., an energy company (portfolio average weight of 0.56%), and Edwards Lifesciences Corp., a health care company (no longer held at fiscal year-end).
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Information Technology | 23.3 | |||
Financials | 15.3 | |||
Health Care | 13.3 | |||
Consumer Discretionary | 12.3 | |||
Industrials | 10.5 | |||
Consumer Staples | 9.4 | |||
Energy | 7.0 | |||
Materials | 3.3 | |||
Utilities | 3.0 | |||
Telecommunication 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, 2017 | ||||
Security | ||||
Lam Research Corp. | 3.7 | |||
Micron Technology, Inc. | 3.6 | |||
Applied Materials, Inc. | 3.4 | |||
Costco Wholesale Corp. | 3.3 | |||
Sysco Corp. | 3.2 | |||
NVIDIA Corp. | 3.2 | |||
Advanced Micro Devices, Inc. | 2.8 | |||
Williams Partners LP | 2.8 | |||
IDEXX Laboratories, Inc. | 2.6 | |||
Valero Energy Corp. | 2.6 | |||
Total | 31.2 |
* | 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, 2017
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 | 19.71 | % | 8.10 | % | 26.33 | % | 14.61 | % | 97.75 | % | 6.58 | % | 89.06 | % | 10.26 | % | 292.45 | % | ||||||||||||||||||||||
S&P 500® Index | 17.92 | 10.47 | 34.83 | 13.68 | 89.81 | 7.15 | 99.55 | 9.29 | 246.97 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 18.88 | 7.33 | 23.62 | 13.79 | 90.78 | 5.88 | 77.06 | 9.55 | 258.74 | |||||||||||||||||||||||||||||||
Market Price Return | 18.91 | 7.33 | 23.64 | 13.81 | 90.91 | 5.89 | 77.18 | 9.55 | 258.75 |
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. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder 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 powershares.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 common stocks that comprise the Index.
Strictly in accordance with their guidelines and mandated procedures, FTSE International Limited and Research Affiliates LLC include stocks in the Index with the intent to track the performance of the largest U.S. equity stocks based on the following four fundamental measures: book value, cash flow, sales and dividends. 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, 2017, on a market price basis, the Fund returned 16.19%. On a net asset value (“NAV”) basis, the Fund returned 16.16%. During the same time period, the Index returned 16.62%. 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.
During this same time period, the Russell 1000® Index (the “Benchmark Index”) returned 18.03%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,000 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 U.S. large cap equity benchmark. The Benchmark Index was selected for its recognition in the marketplace, and because 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 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 energy sector and most underweight in the information technology sector during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to its allocation to the energy sector.
For the fiscal year ended April 30, 2017, the financials sector contributed most significantly to the Fund’s return, followed by the information technology and industrials sectors, respectively. The telecommunication services sector was the only detracting sector.
Positions that contributed most significantly to the Fund’s return included Bank of America Corp., a financials company (portfolio average weight of 1.52%), and Apple, Inc., an information technology company (portfolio average weight of 1.69%). Positions that detracted most significantly from the Fund’s return included Chesapeake Energy Corp., an energy company (portfolio average weight of 0.27%), and Exxon Mobil Corp., an energy company (portfolio average weight of 2.77%).
Sector Breakdown as of April 30, 2017 | ||||
Financials | 18.3 | |||
Information Technology | 13.7 | |||
Consumer Discretionary | 11.2 | |||
Health Care | 11.0 | |||
Energy | 10.6 | |||
Industrials | 10.4 | |||
Consumer Staples | 9.5 | |||
Utilities | 5.0 | |||
Materials | 3.6 | |||
Telecommunication Services | 3.6 | |||
Real Estate | 3.1 | |||
Money Market Fund Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* as of April 30, 2017 | ||||
Security | ||||
Exxon Mobil Corp. | 2.8 | |||
Apple, Inc. | 2.1 | |||
Chevron Corp. | 1.9 | |||
AT&T, Inc. | 1.8 | |||
JPMorgan Chase & Co. | 1.8 | |||
Berkshire Hathaway, Inc., Class B | 1.7 | |||
Wells Fargo & Co. | 1.5 | |||
Microsoft Corp. | 1.4 | |||
General Electric Co. | 1.4 | |||
Johnson & Johnson | 1.2 | |||
Total | 17.6 |
* | 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, 2017
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 | ||||||||||||||||||||||||||||||||||||||
FTSE RAFI US 1000 Index | 16.62 | % | 8.89 | % | 29.12 | % | 14.08 | % | 93.21 | % | 7.78 | % | 111.57 | % | 8.99 | % | 166.16 | % | ||||||||||||||||||||||
Russell 1000® Index | 18.03 | 10.20 | 33.82 | 13.63 | 89.43 | 7.25 | 101.40 | 8.15 | 143.50 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 16.16 | 8.49 | 27.70 | 13.65 | 89.64 | 7.37 | 103.67 | 8.54 | 153.64 | |||||||||||||||||||||||||||||||
Market Price Return | 16.19 | 8.52 | 27.78 | 13.66 | 89.69 | 7.37 | 103.55 | 8.56 | 154.32 |
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, 2018. 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 Shareholder 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 powershares.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.
Strictly in accordance with their guidelines and mandated procedures, FTSE International Limited and Research Affiliates LLC include stocks in the Index with the intent to track the performance of small and medium-sized U.S. equity stocks based on the following four fundamental measures: book value, sales, cash flow and dividends. 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, 2017, on a market price basis, the Fund returned 22.40%. On a net asset value (“NAV”) basis, the Fund returned 22.44%. During the same time period, the Index returned 22.71%. 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, 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 25.63%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,940 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 U.S. small cap equity benchmark. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the U.S. small cap 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 energy sector and most underweight in the health care sector during the fiscal year ended April 30, 2017. 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, 2017, the financials sector contributed most significantly to the Fund’s return, followed by the industrials and information technology sectors, respectively. The energy sector was the only detracting sector.
Positions that contributed most significantly to the Fund’s return included Clayton Williams Energy, Inc., an energy company (no longer held at fiscal year-end), and Tronox Ltd., Class A, a materials company (portfolio average weight of 0.28%). Positions that detracted most significantly from the Fund’s return included Hornbeck Offshore Services, Inc., an energy company (portfolio average weight of 0.13%), and Bill Barrett Corp., an energy company (portfolio average weight of 0.25%).
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Financials | 17.3 | |||
Consumer Discretionary | 17.3 | |||
Industrials | 16.6 | |||
Information Technology | 15.6 | |||
Health Care | 8.1 | |||
Real Estate | 7.1 | |||
Materials | 5.8 | |||
Energy | 5.8 | |||
Consumer Staples | 3.2 | |||
Utilities | 1.8 | |||
Telecommunication Services | 1.3 | |||
Money Market Fund Plus Other Assets Less Liabilities | 0.1 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
Kratos Defense & Security Solutions, Inc. | 0.5 | |||
Rent-A-Center, Inc. | 0.3 | |||
Stone Energy Corp. | 0.2 | |||
Aaron’s, Inc. | 0.2 | |||
Hill-Rom Holdings, Inc. | 0.2 | |||
Sanderson Farms, Inc. | 0.2 | |||
Sotheby’s | 0.2 | |||
Michaels Cos., Inc. (The) | 0.2 | |||
Zebra Technologies Corp., Class A | 0.2 | |||
Beacon Roofing Supply, Inc. | 0.2 | |||
Total | 2.4 |
* | Excluding money market fund holdings. |
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PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
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 | ||||||||||||||||||||||||||||||||||||||
FTSE RAFI US 1500 Small-Mid Index | 22.71 | % | 8.59 | % | 28.06 | % | 13.81 | % | 90.93 | % | 8.92 | % | 135.10 | % | 9.76 | % | 168.53 | % | ||||||||||||||||||||||
Russell 2000® Index | 25.63 | 9.03 | 29.63 | 12.95 | 83.84 | 7.05 | 97.57 | 7.75 | 120.74 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 22.44 | 8.35 | 27.22 | 13.56 | 88.84 | 8.72 | 130.75 | 9.49 | 161.72 | |||||||||||||||||||||||||||||||
Market Price Return | 22.40 | 8.33 | 27.13 | 13.54 | 88.72 | 8.72 | 130.79 | 9.49 | 161.62 |
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, 2018. 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 Shareholder 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 powershares.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. |
| 12 |
|
PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Consumer Discretionary—20.7% | ||||||||
708 | Amazon.com, Inc.(b) | $ | 654,893 | |||||
1,374 | Charter Communications, Inc., Class A(b) | 474,250 | ||||||
1,678 | Children’s Place, Inc. (The) | 192,634 | ||||||
4,599 | China Lodging Group Ltd. ADR (China)(b) | 326,437 | ||||||
4,922 | Comcast Corp., Class A | 192,893 | ||||||
2,012 | Cracker Barrel Old Country Store, Inc. | 322,302 | ||||||
16,266 | Denny’s Corp.(b) | 206,578 | ||||||
2,744 | Dorman Products, Inc.(b) | 228,164 | ||||||
3,311 | Grand Canyon Education, Inc.(b) | 248,855 | ||||||
5,556 | Liberty Ventures, Series A(b) | 299,191 | ||||||
9,045 | Nutrisystem, Inc. | 483,455 | ||||||
1,862 | Pool Corp. | 222,732 | ||||||
551 | Priceline Group, Inc. (The)(b) | 1,017,598 | ||||||
8,888 | Ross Stores, Inc. | 577,720 | ||||||
21,186 | Ruth’s Hospitality Group, Inc. | 421,601 | ||||||
9,724 | Scientific Games Corp., Class A(b) | 230,945 | ||||||
106,743 | Sirius XM Holdings, Inc. | 528,378 | ||||||
5,546 | SodaStream International Ltd. (Israel)(b) | 301,647 | ||||||
779 | Ulta Beauty, Inc.(b) | 219,242 | ||||||
|
| |||||||
7,149,515 | ||||||||
|
| |||||||
Consumer Staples—2.5% | ||||||||
967 | Coca-Cola Bottling Co. Consolidated | 204,869 | ||||||
1,782 | J & J Snack Foods Corp. | 239,821 | ||||||
4,675 | National Beverage Corp. | 414,158 | ||||||
|
| |||||||
858,848 | ||||||||
|
| |||||||
Energy—1.5% | ||||||||
3,086 | Diamondback Energy, Inc.(b) | 308,106 | ||||||
8,810 | Golar LNG Partners LP (United Kingdom) | 201,133 | ||||||
|
| |||||||
509,239 | ||||||||
|
| |||||||
Financials—15.7% | ||||||||
4,899 | Ameris Bancorp | 230,743 | ||||||
9,859 | Arch Capital Group Ltd.(b) | 956,027 | ||||||
12,047 | Bank of the Ozarks, Inc. | 571,871 | ||||||
3,588 | Banner Corp. | 198,058 | ||||||
6,262 | E*TRADE Financial Corp.(b) | 216,352 | ||||||
4,661 | Eagle Bancorp, Inc.(b) | 279,194 | ||||||
7,209 | East West Bancorp, Inc. | 391,233 | ||||||
6,610 | First Merchants Corp. | 273,522 | ||||||
8,116 | Home BancShares, Inc. | 206,552 | ||||||
3,089 | Independent Bank Group, Inc. | 185,803 | ||||||
4,739 | MarketAxess Holdings, Inc. | 912,352 | ||||||
10,224 | Meridian Bancorp, Inc. | 179,431 | ||||||
4,081 | Pinnacle Financial Partners, Inc. | 261,184 | ||||||
2,305 | Texas Capital Bancshares, Inc.(b) | 175,411 | ||||||
7,273 | United Community Banks, Inc. | 198,917 | ||||||
4,092 | WSFS Financial Corp. | 193,142 | ||||||
|
| |||||||
5,429,792 | ||||||||
|
| |||||||
Health Care—16.8% | ||||||||
3,149 | Align Technology, Inc.(b) | 423,918 | ||||||
1,436 | Atrion Corp. | 742,556 | ||||||
1,663 | Celgene Corp.(b) | 206,295 | ||||||
7,712 | Clovis Oncology, Inc.(b) | 446,448 | ||||||
11,284 | Epizyme, Inc.(b) | 203,676 | ||||||
16,865 | Exact Sciences Corp.(b) | 506,119 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
41,886 | Exelixis, Inc.(b) | $ | 938,246 | |||||
2,622 | ICON PLC(b) | 221,533 | ||||||
1,202 | ICU Medical, Inc.(b) | 184,868 | ||||||
3,891 | IDEXX Laboratories, Inc.(b) | 652,637 | ||||||
4,131 | Masimo Corp.(b) | 424,419 | ||||||
6,444 | Merit Medical Systems, Inc.(b) | 217,163 | ||||||
2,909 | Neogen Corp.(b) | 181,318 | ||||||
3,672 | NuVasive, Inc.(b) | 266,257 | ||||||
6,934 | Spectranetics Corp. (The)(b) | 198,312 | ||||||
|
| |||||||
5,813,765 | ||||||||
|
| |||||||
Industrials—7.5% | ||||||||
6,153 | AAON, Inc. | 225,507 | ||||||
5,619 | Apogee Enterprises, Inc. | 306,235 | ||||||
1,513 | Cintas Corp. | 185,297 | ||||||
1,639 | Elbit Systems Ltd. (Israel) | 194,697 | ||||||
4,037 | Middleby Corp. (The)(b) | 549,557 | ||||||
3,304 | Multi-Color Corp. | 253,747 | ||||||
4,628 | MYR Group, Inc.(b) | 195,579 | ||||||
2,901 | Old Dominion Freight Line, Inc. | 256,797 | ||||||
11,528 | SkyWest, Inc. | 428,842 | ||||||
|
| |||||||
2,596,258 | ||||||||
|
| |||||||
Information Technology—35.3% | ||||||||
4,262 | Activision Blizzard, Inc. | 222,689 | ||||||
1,584 | Adobe Systems, Inc.(b) | 211,844 | ||||||
4,216 | Advanced Energy Industries, Inc.(b) | 311,141 | ||||||
7,126 | Apple, Inc. | 1,023,650 | ||||||
4,985 | Applied Materials, Inc. | 202,441 | ||||||
15,955 | Blucora, Inc.(b) | 294,370 | ||||||
2,575 | Broadcom Ltd. | 568,586 | ||||||
8,699 | Brooks Automation, Inc. | 219,737 | ||||||
9,482 | Cadence Design Systems, Inc.(b) | 308,829 | ||||||
1,920 | Check Point Software Technologies Ltd. (Israel)(b) | 199,699 | ||||||
4,296 | Cirrus Logic, Inc.(b) | 276,448 | ||||||
2,923 | Cognex Corp. | 249,449 | ||||||
1,719 | Coherent, Inc.(b) | 370,616 | ||||||
8,043 | Ebix, Inc. | 496,253 | ||||||
5,343 | Electronic Arts, Inc.(b) | 506,623 | ||||||
36,685 | Extreme Networks, Inc.(b) | 286,693 | ||||||
3,531 | Facebook, Inc., Class A(b) | 530,533 | ||||||
2,306 | InterDigital, Inc. | 207,309 | ||||||
4,991 | Intuit, Inc. | 624,923 | ||||||
1,989 | Jack Henry & Associates, Inc. | 192,774 | ||||||
1,509 | Lam Research Corp. | 218,579 | ||||||
3,122 | Littelfuse, Inc. | 481,256 | ||||||
9,364 | Logitech International SA (Switzerland) | 310,698 | ||||||
887 | MercadoLibre, Inc. (Argentina) | 203,043 | ||||||
7,637 | Micron Technology, Inc.(b) | 211,316 | ||||||
4,732 | Monolithic Power Systems, Inc. | 432,978 | ||||||
1,602 | NetEase, Inc. ADR (China) | 425,155 | ||||||
6,546 | PC Connection, Inc. | 188,132 | ||||||
4,660 | Pegasystems, Inc. | 212,263 | ||||||
4,620 | Sanmina Corp.(b) | 172,095 | ||||||
4,067 | Seagate Technology PLC | 171,343 | ||||||
6,964 | Skyworks Solutions, Inc. | 694,589 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 13 |
|
PowerShares DWA NASDAQ Momentum Portfolio (DWAQ) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
2,796 | Stamps.com, Inc.(b) | $ | 296,795 | |||||
6,841 | Take-Two Interactive Software, Inc.(b) | 429,957 | ||||||
13,263 | TTM Technologies, Inc.(b) | 221,890 | ||||||
2,721 | Universal Display Corp. | 243,121 | ||||||
|
| |||||||
12,217,817 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $27,888,364) | 34,575,234 | |||||||
|
| |||||||
Money Market Fund—0.2% | ||||||||
61,657 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(c) (Cost $61,657) | 61,657 | ||||||
|
| |||||||
Total Investments (Cost $27,950,021)—100.2% | 34,636,891 | |||||||
Other assets less liabilities—(0.2)% | (67,266 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 34,569,625 | ||||||
|
|
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) | 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, 2017. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 14 |
|
Schedule of Investments(a)
PowerShares Dynamic Market Portfolio (PWC)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Consumer Discretionary—12.3% | ||||||||
8,449 | Adient PLC | $ | 621,508 | |||||
27,806 | American Axle & Manufacturing Holdings, Inc.(b) | 489,108 | ||||||
32,973 | ClubCorp Holdings, Inc. | 443,487 | ||||||
2,991 | Domino’s Pizza, Inc. | 542,538 | ||||||
87,263 | General Motors Co. | 3,022,790 | ||||||
24,333 | Intrawest Resorts Holdings, Inc.(b) | 573,772 | ||||||
22,750 | Lear Corp. | 3,245,515 | ||||||
17,746 | Marcus Corp. (The) | 599,815 | ||||||
18,954 | MDC Holdings, Inc. | 587,764 | ||||||
39,786 | Scripps Networks Interactive, Inc., Class A | 2,972,810 | ||||||
17,883 | Service Corp. International | 576,190 | ||||||
33,490 | Time Warner, Inc. | 3,324,552 | ||||||
5,996 | Visteon Corp.(b) | 617,288 | ||||||
|
| |||||||
17,617,137 | ||||||||
|
| |||||||
Consumer Staples—9.4% | ||||||||
19,056 | Central Garden & Pet Co.(b) | 720,317 | ||||||
26,299 | Costco Wholesale Corp. | 4,668,598 | ||||||
35,848 | Dean Foods Co. | 707,640 | ||||||
11,658 | Fresh Del Monte Produce, Inc. | 714,635 | ||||||
17,576 | SpartanNash Co. | 646,797 | ||||||
87,440 | Sysco Corp. | 4,622,953 | ||||||
9,603 | Universal Corp. | 705,340 | ||||||
10,291 | Weis Markets, Inc. | 594,923 | ||||||
|
| |||||||
13,381,203 | ||||||||
|
| |||||||
Energy—7.0% | ||||||||
28,185 | Alliance Holdings GP LP | 751,130 | ||||||
60,019 | Archrock, Inc. | 708,224 | ||||||
76,749 | Atwood Oceanics, Inc.(b) | 600,945 | ||||||
404,983 | Seadrill Ltd. (United Kingdom)(b) | 279,357 | ||||||
58,082 | Valero Energy Corp. | 3,752,678 | ||||||
96,035 | Williams Partners LP | 3,930,713 | ||||||
|
| |||||||
10,023,047 | ||||||||
|
| |||||||
Financials—15.3% | ||||||||
32,034 | Allstate Corp. (The) | 2,604,044 | ||||||
24,784 | Ambac Financial Group, Inc.(b) | 481,553 | ||||||
5,653 | BancFirst Corp. | 542,971 | ||||||
60,218 | CNA Financial Corp. | 2,725,467 | ||||||
5,922 | Cullen/Frost Bankers, Inc. | 558,978 | ||||||
16,073 | Essent Group Ltd.(b) | 594,862 | ||||||
20,865 | Fidelity & Guaranty Life(c) | 593,609 | ||||||
11,616 | Hancock Holding Co. | 542,467 | ||||||
28,315 | JPMorgan Chase & Co. | 2,463,405 | ||||||
12,606 | LegacyTexas Financial Group, Inc. | 476,633 | ||||||
6,164 | Meta Financial Group, Inc. | 523,324 | ||||||
55,395 | Morgan Stanley | 2,402,481 | ||||||
1,723 | National Western Life Group, Inc., Class A | 527,652 | ||||||
25,539 | Opus Bank | 575,904 | ||||||
41,042 | Principal Financial Group, Inc. | 2,673,065 | ||||||
23,276 | Prudential Financial, Inc. | 2,491,230 | ||||||
12,112 | Stock Yards Bancorp, Inc. | 496,592 | ||||||
23,135 | TriState Capital Holdings, Inc.(b) | 576,061 | ||||||
|
| |||||||
21,850,298 | ||||||||
|
|
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care—13.3% | ||||||||
11,247 | Biogen, Inc.(b) | $ | 3,050,299 | |||||
18,057 | Cardiovascular Systems, Inc.(b) | 539,363 | ||||||
8,648 | Clovis Oncology, Inc.(b) | 500,633 | ||||||
10,740 | Five Prime Therapeutics, Inc.(b) | 374,396 | ||||||
12,015 | Halyard Health, Inc.(b) | 474,592 | ||||||
22,392 | IDEXX Laboratories, Inc.(b) | 3,755,810 | ||||||
5,726 | Masimo Corp.(b) | 588,289 | ||||||
21,497 | McKesson Corp. | 2,972,820 | ||||||
14,035 | Medpace Holdings, Inc.(b) | 445,050 | ||||||
6,776 | Mettler-Toledo International, Inc.(b) | 3,478,934 | ||||||
62,778 | MiMedx Group, Inc.(b)(c) | 796,653 | ||||||
23,311 | Quidel Corp.(b) | 563,427 | ||||||
6,492 | Ultragenyx Pharmaceutical, Inc.(b) | 418,020 | ||||||
3,587 | WellCare Health Plans, Inc.(b) | 550,282 | ||||||
21,842 | Xencor, Inc.(b) | 560,684 | ||||||
|
| |||||||
19,069,252 | ||||||||
|
| |||||||
Industrials—10.5% | ||||||||
8,408 | Argan, Inc. | 562,075 | ||||||
16,953 | Chart Industries, Inc.(b) | 618,954 | ||||||
24,053 | Cummins, Inc. | 3,630,560 | ||||||
13,312 | Greenbrier Cos., Inc. (The) | 578,406 | ||||||
18,721 | Jeld-Wen Holding, Inc.(b) | 618,355 | ||||||
4,836 | Nordson Corp. | 605,467 | ||||||
8,815 | Oshkosh Corp. | 611,673 | ||||||
16,338 | Rush Enterprises, Inc., Class A(b) | 616,759 | ||||||
48,103 | United Continental Holdings, Inc.(b) | 3,377,312 | ||||||
29,666 | United Rentals, Inc.(b) | 3,253,173 | ||||||
12,034 | Viad Corp. | 543,937 | ||||||
|
| |||||||
15,016,671 | ||||||||
|
| |||||||
Information Technology—23.3% | ||||||||
13,709 | Advanced Energy Industries, Inc.(b) | 1,011,724 | ||||||
303,027 | Advanced Micro Devices, Inc.(b) | 4,030,259 | ||||||
120,004 | Applied Materials, Inc. | 4,873,362 | ||||||
14,550 | Aspen Technology, Inc.(b) | 894,680 | ||||||
39,318 | Brooks Automation, Inc. | 993,173 | ||||||
12,144 | Cabot Microelectronics Corp. | 951,482 | ||||||
50,588 | Flex Ltd.(b) | 782,090 | ||||||
36,859 | Lam Research Corp. | 5,339,026 | ||||||
184,810 | Micron Technology, Inc.(b) | 5,113,693 | ||||||
43,182 | NVIDIA Corp. | 4,503,883 | ||||||
14,580 | Plexus Corp.(b) | 758,014 | ||||||
20,795 | Sanmina Corp.(b) | 774,614 | ||||||
9,604 | Science Applications International Corp. | 700,996 | ||||||
11,636 | Silicon Laboratories, Inc.(b) | 827,901 | ||||||
9,649 | Tech Data Corp.(b) | 922,927 | ||||||
51,513 | TTM Technologies, Inc.(b) | 861,813 | ||||||
|
| |||||||
33,339,637 | ||||||||
|
| |||||||
Materials—3.3% | ||||||||
18,593 | Advansix, Inc.(b) | 506,845 | ||||||
26,497 | Forterra, Inc.(b) | 509,802 | ||||||
37,343 | LyondellBasell Industries NV, Class A | 3,165,193 | ||||||
5,286 | Packaging Corp. of America | 522,151 | ||||||
|
| |||||||
4,703,991 | ||||||||
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 15 |
|
PowerShares Dynamic Market Portfolio (PWC) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Telecommunication Services—2.6% | ||||||||
15,998 | General Communication, Inc., Class A(b) | $ | 598,965 | |||||
38,107 | Iridium Communications, Inc.(b)(c) | 403,934 | ||||||
132,482 | Sprint Corp.(b) | 1,196,312 | ||||||
10,365 | Telephone & Data Systems, Inc. | 284,623 | ||||||
19,124 | T-Mobile US, Inc.(b) | 1,286,472 | ||||||
|
| |||||||
3,770,306 | ||||||||
|
| |||||||
Utilities—3.0% | ||||||||
23,456 | MDU Resources Group, Inc. | 630,966 | ||||||
17,748 | OGE Energy Corp. | 617,276 | ||||||
45,267 | PG&E Corp. | 3,035,152 | ||||||
|
| |||||||
4,283,394 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $132,698,600) | 143,054,936 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
89,462 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $89,462) | 89,462 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $132,788,062)—100.1% | 143,144,398 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—0.7% | ||||||||
1,020,505 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $1,020,505) | 1,020,505 | ||||||
|
| |||||||
Total Investments (Cost $133,808,567)—100.8% | 144,164,903 | |||||||
Other assets less liabilities—(0.8)% | (1,113,150 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 143,051,753 | ||||||
|
|
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, 2017. |
(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, 2017. |
(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 2I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 16 |
|
Schedule of Investments(a)
PowerShares FTSE RAFI US 1000 Portfolio (PRF)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Consumer Discretionary—11.2% | ||||||||
88,041 | Abercrombie & Fitch Co., Class A(b) | $ | 1,055,612 | |||||
73,291 | Adient PLC | 5,391,286 | ||||||
11,417 | Advance Auto Parts, Inc. | 1,622,812 | ||||||
16,204 | Amazon.com, Inc.(c) | 14,988,538 | ||||||
11,079 | AMC Networks, Inc., Class A(c) | 661,195 | ||||||
37,264 | American Axle & Manufacturing Holdings, Inc.(c) | 655,474 | ||||||
79,408 | American Eagle Outfitters, Inc. | 1,118,859 | ||||||
64,393 | Aramark | 2,351,632 | ||||||
12,794 | Asbury Automotive Group, Inc.(c) | 782,993 | ||||||
195,922 | Ascena Retail Group, Inc.(c) | 766,055 | ||||||
26,061 | Autoliv, Inc. (Sweden)(b) | 2,611,052 | ||||||
48,274 | AutoNation, Inc.(c) | 2,027,508 | ||||||
3,926 | AutoZone, Inc.(c) | 2,717,538 | ||||||
86,810 | Bed Bath & Beyond, Inc. | 3,363,887 | ||||||
126,111 | Best Buy Co., Inc. | 6,533,811 | ||||||
17,723 | Big Lots, Inc. | 894,834 | ||||||
38,896 | Bloomin’ Brands, Inc. | 843,654 | ||||||
54,001 | BorgWarner, Inc. | 2,283,162 | ||||||
16,583 | Brinker International, Inc.(b) | 732,803 | ||||||
15,193 | Brunswick Corp. | 862,203 | ||||||
10,016 | Burlington Stores, Inc.(c) | 990,783 | ||||||
16,387 | Cabela’s, Inc.(c) | 894,730 | ||||||
66,748 | Caesars Entertainment Corp.(b)(c) | 740,903 | ||||||
24,461 | CalAtlantic Group, Inc. | 885,977 | ||||||
46,848 | CarMax, Inc.(c) | 2,740,608 | ||||||
101,650 | Carnival Corp. | 6,278,920 | ||||||
73,557 | CBS Corp., Class B | 4,895,954 | ||||||
7,362 | Charter Communications, Inc., Class A(c) | 2,541,068 | ||||||
3,437 | Chipotle Mexican Grill, Inc.(c) | 1,630,753 | ||||||
25,025 | Cinemark Holdings, Inc. | 1,081,080 | ||||||
74,931 | Coach, Inc. | 2,951,532 | ||||||
948,481 | Comcast Corp., Class A | 37,170,970 | ||||||
21,652 | Cooper Tire & Rubber Co. | 829,272 | ||||||
33,898 | Core-Mark Holding Co., Inc. | 1,187,108 | ||||||
4,310 | Cracker Barrel Old Country Store, Inc.(b) | 690,419 | ||||||
35,773 | CST Brands, Inc. | 1,727,478 | ||||||
66,339 | D.R. Horton, Inc. | 2,181,890 | ||||||
68,497 | Dana, Inc. | 1,330,212 | ||||||
29,538 | Darden Restaurants, Inc. | 2,516,342 | ||||||
12,187 | Deckers Outdoor Corp.(c) | 726,223 | ||||||
51,778 | Delphi Automotive PLC | 4,162,951 | ||||||
18,657 | DeVry Education Group, Inc. | 706,167 | ||||||
22,623 | Dick’s Sporting Goods, Inc. | 1,143,593 | ||||||
17,228 | Dillard’s, Inc., Class A(b) | 953,914 | ||||||
33,011 | Discovery Communications, Inc., Class A(c) | 950,057 | ||||||
48,852 | Discovery Communications, Inc., Class C(c) | 1,366,879 | ||||||
33,409 | DISH Network Corp., Class A(c) | 2,152,876 | ||||||
49,287 | Dollar General Corp. | 3,583,658 | ||||||
37,953 | Dollar Tree, Inc.(c) | 3,141,370 | ||||||
32,920 | DSW, Inc., Class A | 678,810 | ||||||
13,994 | Expedia, Inc. | 1,871,278 | ||||||
59,069 | Express, Inc.(c) | 509,765 | ||||||
28,238 | Foot Locker, Inc. | 2,183,927 | ||||||
2,501,570 | Ford Motor Co. | 28,693,008 | ||||||
46,766 | Fossil Group, Inc.(c) | 806,713 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Discretionary (continued) | ||||||||
80,415 | GameStop Corp., Class A | $ | 1,824,616 | |||||
87,479 | Gannett Co., Inc. | 731,324 | ||||||
107,285 | Gap, Inc. (The) | 2,810,867 | ||||||
27,616 | Garmin Ltd. | 1,403,997 | ||||||
696,919 | General Motors Co. | 24,141,274 | ||||||
12,543 | Genesco, Inc.(c) | 668,542 | ||||||
45,752 | Gentex Corp. | 944,779 | ||||||
38,118 | Genuine Parts Co. | 3,507,618 | ||||||
101,244 | GNC Holdings, Inc., Class A(b) | 787,678 | ||||||
109,574 | Goodyear Tire & Rubber Co. (The) | 3,969,866 | ||||||
1,468 | Graham Holdings Co., Class B | 883,296 | ||||||
14,990 | Group 1 Automotive, Inc. | 1,033,560 | ||||||
54,491 | Guess?, Inc. | 608,120 | ||||||
77,763 | H&R Block, Inc. | 1,927,745 | ||||||
63,452 | Hanesbrands, Inc. | 1,383,888 | ||||||
42,012 | Harley-Davidson, Inc. | 2,386,702 | ||||||
17,225 | Hasbro, Inc. | 1,707,170 | ||||||
28,144 | Hilton Worldwide Holdings, Inc. | 1,659,652 | ||||||
167,687 | Home Depot, Inc. (The) | 26,175,941 | ||||||
20,023 | HSN, Inc. | 738,849 | ||||||
37,364 | International Game Technology PLC | 829,481 | ||||||
86,593 | Interpublic Group of Cos., Inc. (The) | 2,040,997 | ||||||
234,256 | J.C. Penney Co., Inc.(b)(c) | 1,260,297 | ||||||
119,937 | Kohl’s Corp. | 4,681,141 | ||||||
77,092 | L Brands, Inc. | 4,071,229 | ||||||
100,240 | Las Vegas Sands Corp. | 5,913,158 | ||||||
21,427 | Lear Corp. | 3,056,776 | ||||||
29,574 | Leggett & Platt, Inc. | 1,553,818 | ||||||
37,846 | Lennar Corp., Class A | 1,911,223 | ||||||
1,241 | Liberty Broadband Corp., Class A(c) | 111,603 | ||||||
7,780 | Liberty Broadband Corp., Class C(c) | 709,225 | ||||||
59,842 | Liberty Global PLC, Series A (United Kingdom)(c) | 2,119,604 | ||||||
154,191 | Liberty Global PLC, Series C (United Kingdom)(c) | 5,336,550 | ||||||
196,121 | Liberty Interactive Corp. QVC Group, Series A(c) | 4,153,843 | ||||||
6,715 | Lithia Motors, Inc., Class A | 641,618 | ||||||
43,197 | Live Nation Entertainment, Inc.(c) | 1,389,216 | ||||||
54,407 | LKQ Corp.(c) | 1,699,675 | ||||||
172,026 | Lowe’s Cos., Inc. | 14,601,567 | ||||||
215,160 | Macy’s, Inc. | 6,286,975 | ||||||
27,200 | Marriott International, Inc., Class A | 2,568,224 | ||||||
128,502 | Mattel, Inc. | 2,881,015 | ||||||
163,555 | McDonald’s Corp. | 22,886,251 | ||||||
9,756 | Meredith Corp. | 571,214 | ||||||
124,938 | MGM Resorts International(c) | 3,836,846 | ||||||
42,418 | Michael Kors Holdings Ltd.(c) | 1,583,464 | ||||||
10,324 | Mohawk Industries, Inc.(c) | 2,423,972 | ||||||
40,281 | Murphy USA, Inc.(c) | 2,802,349 | ||||||
9,232 | Netflix, Inc.(c) | 1,405,110 | ||||||
40,122 | Newell Brands, Inc. | 1,915,424 | ||||||
184,351 | News Corp., Class A | 2,344,945 | ||||||
51,926 | News Corp., Class B | 675,038 | ||||||
123,160 | NIKE, Inc., Class B | 6,824,296 | ||||||
71,197 | Nordstrom, Inc.(b) | 3,436,679 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 17 |
|
PowerShares FTSE RAFI US 1000 Portfolio (PRF) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Discretionary (continued) | ||||||||
27,200 | Norwegian Cruise Line Holdings Ltd.(c) | $ | 1,466,896 | |||||
562 | NVR, Inc.(c) | 1,186,522 | ||||||
476,453 | Office Depot, Inc. | 2,367,971 | ||||||
56,642 | Omnicom Group, Inc. | 4,651,441 | ||||||
9,197 | O’Reilly Automotive, Inc.(c) | 2,282,236 | ||||||
2,992 | Panera Bread Co., Class A(c) | 935,539 | ||||||
22,208 | Penske Automotive Group, Inc. | 1,059,544 | ||||||
50,278 | Pinnacle Entertainment, Inc.(c) | 1,034,218 | ||||||
14,567 | Polaris Industries, Inc.(b) | 1,241,982 | ||||||
3,029 | Priceline Group, Inc. (The)(c) | 5,594,018 | ||||||
69,089 | PulteGroup, Inc. | 1,566,248 | ||||||
21,242 | PVH Corp. | 2,146,079 | ||||||
23,021 | Ralph Lauren Corp., Class A | 1,858,255 | ||||||
41,236 | Regal Entertainment Group, Class A | 910,079 | ||||||
43,185 | Ross Stores, Inc. | 2,807,025 | ||||||
26,529 | Royal Caribbean Cruises Ltd. | 2,827,991 | ||||||
40,043 | Sally Beauty Holdings, Inc.(c) | 761,618 | ||||||
11,106 | Scripps Networks Interactive, Inc., Class A | 829,840 | ||||||
105,409 | Sears Holdings Corp.(b)(c) | 1,077,280 | ||||||
35,954 | SeaWorld Entertainment, Inc. | 630,274 | ||||||
33,597 | Service Corp. International | 1,082,495 | ||||||
19,829 | Servicemaster Global Holdings, Inc.(c) | 755,485 | ||||||
21,599 | Signet Jewelers Ltd.(b) | 1,422,078 | ||||||
13,973 | Six Flags Entertainment Corp. | 874,850 | ||||||
35,348 | Sonic Automotive, Inc., Class A | 692,821 | ||||||
548,345 | Staples, Inc. | 5,357,331 | ||||||
111,441 | Starbucks Corp. | 6,693,146 | ||||||
272,314 | Target Corp. | 15,208,737 | ||||||
70,275 | TEGNA, Inc. | 1,790,607 | ||||||
13,877 | Tempur Sealy International, Inc.(b)(c) | 651,525 | ||||||
25,936 | Tenneco, Inc. | 1,634,746 | ||||||
6,799 | Thor Industries, Inc. | 653,928 | ||||||
21,654 | Tiffany & Co. | 1,984,589 | ||||||
151,214 | Time Warner, Inc. | 15,011,014 | ||||||
45,805 | Time, Inc. | 696,236 | ||||||
95,315 | TJX Cos., Inc. (The) | 7,495,572 | ||||||
42,683 | Toll Brothers, Inc. | 1,536,161 | ||||||
14,509 | Tractor Supply Co. | 898,252 | ||||||
48,170 | Tribune Media Co., Class A | 1,761,095 | ||||||
14,291 | Tupperware Brands Corp. | 1,026,237 | ||||||
204,626 | Twenty-First Century Fox, Inc., Class A | 6,249,278 | ||||||
83,131 | Twenty-First Century Fox, Inc., Class B | 2,482,292 | ||||||
20,056 | Under Armour, Inc., Class A(b)(c) | 431,003 | ||||||
19,769 | Under Armour, Inc., Class C(c) | 383,716 | ||||||
29,113 | Urban Outfitters, Inc.(c) | 666,105 | ||||||
68,418 | VF Corp. | 3,737,675 | ||||||
130,992 | Viacom, Inc., Class B | 5,575,020 | ||||||
36,336 | Vista Outdoor, Inc.(c) | 710,732 | ||||||
16,268 | Visteon Corp.(c) | 1,674,791 | ||||||
228,471 | Walt Disney Co. (The) | 26,411,248 | ||||||
25,168 | Whirlpool Corp. | 4,673,194 | ||||||
28,525 | Williams-Sonoma, Inc. | 1,541,776 | ||||||
22,417 | Wyndham Worldwide Corp. | 2,136,564 | ||||||
32,527 | Wynn Resorts Ltd. | 4,001,146 | ||||||
71,681 | Yum China Holdings, Inc.(c) | 2,445,756 | ||||||
56,259 | Yum! Brands, Inc. | 3,699,029 | ||||||
|
| |||||||
548,261,689 | ||||||||
|
|
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Staples—9.5% | ||||||||
280,959 | Altria Group, Inc. | $ | 20,167,237 | |||||
18,288 | Andersons, Inc. (The) | 683,057 | ||||||
336,073 | Archer-Daniels-Midland Co. | 15,375,340 | ||||||
453,936 | Avon Products, Inc.(c) | 2,201,590 | ||||||
31,754 | Brown-Forman Corp., Class B | 1,502,599 | ||||||
105,082 | Bunge Ltd. | 8,304,631 | ||||||
32,679 | Campbell Soup Co. | 1,880,350 | ||||||
10,899 | Casey’s General Stores, Inc. | 1,221,451 | ||||||
32,065 | Church & Dwight Co., Inc. | 1,588,180 | ||||||
18,687 | Clorox Co. (The) | 2,498,265 | ||||||
787,736 | Coca-Cola Co. (The) | 33,990,808 | ||||||
34,262 | Coca-Cola European Partners PLC (United Kingdom) | 1,323,198 | ||||||
123,358 | Colgate-Palmolive Co. | 8,886,710 | ||||||
86,232 | Conagra Brands, Inc. | 3,344,077 | ||||||
14,248 | Constellation Brands, Inc., Class A | 2,458,350 | ||||||
116,196 | Costco Wholesale Corp. | 20,627,114 | ||||||
367,209 | CVS Health Corp. | 30,272,710 | ||||||
82,590 | Darling Ingredients, Inc.(c) | 1,249,587 | ||||||
44,579 | Dean Foods Co. | 879,990 | ||||||
31,200 | Dr Pepper Snapple Group, Inc. | 2,859,480 | ||||||
12,838 | Edgewell Personal Care Co.(c) | 917,789 | ||||||
25,896 | Estee Lauder Cos., Inc. (The), Class A | 2,256,577 | ||||||
48,317 | Flowers Foods, Inc. | 947,496 | ||||||
136,144 | General Mills, Inc. | 7,829,641 | ||||||
22,662 | Hain Celestial Group, Inc. (The)(c) | 838,267 | ||||||
19,059 | Herbalife Ltd.(b)(c) | 1,205,672 | ||||||
21,415 | Hershey Co. (The) | 2,317,103 | ||||||
39,325 | Hormel Foods Corp. | 1,379,521 | ||||||
41,942 | HRG Group, Inc.(c) | 839,259 | ||||||
13,891 | Ingredion, Inc. | 1,719,984 | ||||||
24,254 | JM Smucker Co. (The) | 3,073,467 | ||||||
50,361 | Kellogg Co. | 3,575,631 | ||||||
62,387 | Kimberly-Clark Corp. | 8,094,713 | ||||||
95,177 | Kraft Heinz Co. (The) | 8,603,049 | ||||||
427,859 | Kroger Co. (The) | 12,686,019 | ||||||
27,563 | Lamb Weston Holdings, Inc. | 1,150,755 | ||||||
16,297 | McCormick & Co., Inc. | 1,628,070 | ||||||
23,031 | Mead Johnson Nutrition Co. | 2,043,310 | ||||||
23,356 | Molson Coors Brewing Co., Class B | 2,239,607 | ||||||
365,075 | Mondelez International, Inc., Class A | 16,439,327 | ||||||
32,112 | Monster Beverage Corp.(c) | 1,457,243 | ||||||
15,114 | Nu Skin Enterprises, Inc., Class A | 834,746 | ||||||
267,287 | PepsiCo, Inc. | 30,278,271 | ||||||
34,382 | Performance Food Group Co.(c) | 856,112 | ||||||
309,738 | Philip Morris International, Inc. | 34,331,360 | ||||||
18,188 | Pinnacle Foods, Inc. | 1,057,632 | ||||||
9,619 | Post Holdings, Inc.(c) | 809,824 | ||||||
565,224 | Procter & Gamble Co. (The) | 49,361,012 | ||||||
106,467 | Reynolds American, Inc. | 6,867,122 | ||||||
586,197 | Rite Aid Corp.(c) | 2,344,788 | ||||||
18,808 | SpartanNash Co. | 692,134 | ||||||
33,749 | Sprouts Farmers Market, Inc.(c) | 752,940 | ||||||
451,267 | SUPERVALU, Inc.(c) | 1,850,195 | ||||||
159,843 | Sysco Corp. | 8,450,899 | ||||||
11,956 | TreeHouse Foods, Inc.(c) | 1,047,346 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Staples (continued) | ||||||||
79,852 | Tyson Foods, Inc., Class A | $ | 5,131,290 | |||||
26,185 | United Natural Foods, Inc.(c) | 1,087,463 | ||||||
11,110 | Universal Corp. | 816,030 | ||||||
29,921 | US Foods Holding Corp.(c) | 843,772 | ||||||
202,997 | Walgreens Boots Alliance, Inc. | 17,567,360 | ||||||
749,793 | Wal-Mart Stores, Inc. | 56,369,438 | ||||||
100,393 | Whole Foods Market, Inc. | 3,651,293 | ||||||
|
| |||||||
467,558,251 | ||||||||
|
| |||||||
Energy—10.6% | ||||||||
61,030 | Aegean Marine Petroleum Network, Inc. (Greece)(b) | 680,484 | ||||||
112,168 | Anadarko Petroleum Corp. | 6,395,819 | ||||||
51,217 | Antero Resources Corp.(c) | 1,085,288 | ||||||
81,937 | Apache Corp. | 3,985,416 | ||||||
77,646 | Atwood Oceanics, Inc.(c) | 607,968 | ||||||
125,579 | Baker Hughes, Inc. | 7,455,625 | ||||||
44,805 | Cabot Oil & Gas Corp. | 1,041,268 | ||||||
36,135 | California Resources Corp.(b)(c) | 422,779 | ||||||
352,388 | Chesapeake Energy Corp.(b)(c) | 1,853,561 | ||||||
863,666 | Chevron Corp. | 92,153,162 | ||||||
8,497 | Cimarex Energy Co. | 991,430 | ||||||
19,223 | Concho Resources, Inc.(c) | 2,434,785 | ||||||
687,309 | ConocoPhillips | 32,928,974 | ||||||
116,260 | CONSOL Energy, Inc.(c) | 1,764,827 | ||||||
13,933 | Continental Resources, Inc.(c) | 590,898 | ||||||
85,441 | Cosan Ltd., Class A (Brazil) | 657,041 | ||||||
54,986 | Delek US Holdings, Inc. | 1,323,513 | ||||||
92,940 | Devon Energy Corp. | 3,670,201 | ||||||
90,390 | Diamond Offshore Drilling, Inc.(b)(c) | 1,303,424 | ||||||
17,808 | Energen Corp.(c) | 925,838 | ||||||
311,314 | Ensco PLC, Class A | 2,456,267 | ||||||
70,344 | EOG Resources, Inc. | 6,506,820 | ||||||
29,446 | EQT Corp. | 1,711,990 | ||||||
1,697,964 | Exxon Mobil Corp. | 138,638,761 | ||||||
189,935 | Halliburton Co. | 8,714,218 | ||||||
34,158 | Helmerich & Payne, Inc. | 2,071,341 | ||||||
157,625 | Hess Corp. | 7,696,829 | ||||||
183,262 | HollyFrontier Corp. | 5,156,993 | ||||||
641,939 | Kinder Morgan, Inc. | 13,243,202 | ||||||
556,467 | Marathon Oil Corp. | 8,274,664 | ||||||
304,551 | Marathon Petroleum Corp. | 15,513,828 | ||||||
106,802 | McDermott International, Inc.(c) | 698,485 | ||||||
131,860 | Murphy Oil Corp. | 3,452,095 | ||||||
140,905 | Nabors Industries Ltd. | 1,456,958 | ||||||
197,930 | National Oilwell Varco, Inc. | 6,921,612 | ||||||
16,350 | Newfield Exploration Co.(c) | 566,037 | ||||||
424,593 | Noble Corp. PLC | 2,038,046 | ||||||
111,082 | Noble Energy, Inc. | 3,591,281 | ||||||
69,713 | Oasis Petroleum, Inc.(c) | 832,373 | ||||||
263,833 | Occidental Petroleum Corp. | 16,236,283 | ||||||
44,393 | Oceaneering International, Inc. | 1,171,531 | ||||||
20,869 | Oil States International, Inc.(c) | 620,853 | ||||||
60,039 | ONEOK, Inc.(b) | 3,158,652 | ||||||
44,272 | Patterson-UTI Energy, Inc. | 958,267 | ||||||
104,588 | PBF Energy, Inc., Class A | 2,334,404 | ||||||
304,328 | Phillips 66 | 24,212,336 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Energy (continued) | ||||||||
13,751 | Pioneer Natural Resources Co. | $ | 2,378,785 | |||||
95,135 | QEP Resources, Inc.(c) | 1,123,544 | ||||||
29,908 | Range Resources Corp. | 792,263 | ||||||
73,251 | Rowan Cos. PLC, Class A(c) | 1,030,642 | ||||||
284,854 | Schlumberger Ltd. | 20,677,552 | ||||||
39,581 | SM Energy Co. | 894,135 | ||||||
75,978 | Southwestern Energy Co.(c) | 570,595 | ||||||
64,133 | Superior Energy Services, Inc.(c) | 774,727 | ||||||
23,933 | Targa Resources Corp. | 1,319,426 | ||||||
62,320 | Teekay Corp. (Bermuda)(b) | 540,938 | ||||||
65,052 | Tesoro Corp. | 5,185,295 | ||||||
591,194 | Tidewater, Inc.(b)(c) | 518,182 | ||||||
405,026 | Transocean Ltd.(c) | 4,467,437 | ||||||
322,397 | Valero Energy Corp. | 20,830,070 | ||||||
704,775 | Weatherford International PLC(b)(c) | 4,066,552 | ||||||
44,112 | Western Refining, Inc.(b) | 1,521,423 | ||||||
177,350 | Whiting Petroleum Corp.(c) | 1,472,005 | ||||||
228,957 | Williams Cos., Inc. (The) | 7,012,953 | ||||||
72,001 | World Fuel Services Corp. | 2,651,797 | ||||||
71,697 | WPX Energy, Inc.(c) | 855,345 | ||||||
|
| |||||||
519,190,093 | ||||||||
|
| |||||||
Financials—18.3% | ||||||||
9,260 | Affiliated Managers Group, Inc. | 1,533,363 | ||||||
138,092 | Aflac, Inc. | 10,340,329 | ||||||
154,245 | Agnc Investment Corp. REIT | 3,249,942 | ||||||
4,717 | Alleghany Corp.(c) | 2,880,672 | ||||||
24,515 | Allied World Assurance Co. Holdings AG | 1,301,501 | ||||||
129,145 | Allstate Corp. (The) | 10,498,197 | ||||||
310,303 | Ally Financial, Inc. | 6,143,999 | ||||||
34,186 | Ambac Financial Group, Inc.(c) | 664,234 | ||||||
32,937 | American Equity Investment Life Holding Co. | 781,266 | ||||||
185,520 | American Express Co. | 14,702,460 | ||||||
22,152 | American Financial Group, Inc. | 2,155,611 | ||||||
485,852 | American International Group, Inc. | 29,593,245 | ||||||
38,268 | Ameriprise Financial, Inc. | 4,892,564 | ||||||
420,429 | Annaly Capital Management, Inc. REIT | 4,965,266 | ||||||
38,384 | Aon PLC | 4,599,939 | ||||||
22,646 | Arch Capital Group Ltd.(c) | 2,195,983 | ||||||
34,809 | Arthur J. Gallagher & Co. | 1,942,690 | ||||||
18,823 | Aspen Insurance Holdings Ltd. (Bermuda) | 985,384 | ||||||
33,482 | Associated Banc-Corp. | 833,702 | ||||||
25,532 | Assurant, Inc. | 2,457,200 | ||||||
46,313 | Assured Guaranty Ltd. | 1,765,915 | ||||||
29,405 | Axis Capital Holdings Ltd. | 1,937,789 | ||||||
2,560,405 | Bank of America Corp. | 59,759,853 | ||||||
7,792 | Bank of Hawaii Corp. | 634,892 | ||||||
272,280 | Bank of New York Mellon Corp. (The) | 12,813,497 | ||||||
21,648 | BankUnited, Inc. | 763,958 | ||||||
201,121 | BB&T Corp. | 8,684,405 | ||||||
488,803 | Berkshire Hathaway, Inc., Class B(c) | 80,755,144 | ||||||
24,215 | BlackRock, Inc. | 9,312,362 | ||||||
21,492 | Blackstone Mortgage Trust, Inc., Class A REIT | 663,673 | ||||||
18,399 | Brown & Brown, Inc. | 789,317 | ||||||
197,761 | Capital One Financial Corp. | 15,896,029 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
44,929 | Capitol Federal Financial, Inc. | $ | 657,311 | |||||
99,064 | Charles Schwab Corp. (The) | 3,848,636 | ||||||
65,636 | Chimera Investment Corp. REIT | 1,336,349 | ||||||
83,484 | Chubb Ltd. | 11,458,179 | ||||||
35,573 | Cincinnati Financial Corp. | 2,564,458 | ||||||
74,407 | CIT Group, Inc.(b) | 3,445,788 | ||||||
1,013,793 | Citigroup, Inc. | 59,935,442 | ||||||
158,976 | Citizens Financial Group, Inc. | 5,836,009 | ||||||
61,270 | CME Group, Inc. | 7,118,961 | ||||||
70,700 | CNO Financial Group, Inc. | 1,489,649 | ||||||
34,839 | Comerica, Inc. | 2,463,117 | ||||||
18,351 | Commerce Bancshares, Inc. | 1,008,387 | ||||||
11,182 | Cullen/Frost Bankers, Inc. | 1,055,469 | ||||||
93,997 | Discover Financial Services | 5,883,272 | ||||||
56,623 | E*TRADE Financial Corp.(c) | 1,956,325 | ||||||
21,778 | East West Bancorp, Inc. | 1,181,892 | ||||||
21,464 | Eaton Vance Corp. | 921,449 | ||||||
9,863 | Everest Re Group Ltd. | 2,482,616 | ||||||
48,486 | F.N.B. Corp. | 690,441 | ||||||
27,196 | Federated Investors, Inc., Class B | 729,397 | ||||||
226,590 | Fifth Third Bancorp | 5,535,594 | ||||||
36,073 | First American Financial Corp. | 1,565,929 | ||||||
36,496 | First Horizon National Corp. | 669,702 | ||||||
16,323 | First Republic Bank | 1,509,225 | ||||||
48,299 | FNF Group | 1,977,844 | ||||||
101,078 | Franklin Resources, Inc. | 4,357,473 | ||||||
41,934 | Fulton Financial Corp. | 773,682 | ||||||
1,157,221 | Genworth Financial, Inc., Class A(c) | 4,675,173 | ||||||
101,174 | Goldman Sachs Group, Inc. (The) | 22,642,741 | ||||||
18,565 | Hancock Holding Co. | 866,985 | ||||||
15,087 | �� | Hanover Insurance Group, Inc. (The) | 1,331,729 | |||||
175,489 | Hartford Financial Services Group, Inc. (The) | 8,486,648 | ||||||
186,143 | Huntington Bancshares, Inc. | 2,393,799 | ||||||
7,493 | IBERIABANK Corp. | 594,570 | ||||||
64,120 | Intercontinental Exchange, Inc. | 3,860,024 | ||||||
114,460 | Invesco Ltd.(d) | 3,770,312 | ||||||
58,360 | Invesco Mortgage Capital, Inc. REIT(d) | 951,852 | ||||||
57,595 | Investors Bancorp, Inc. | 797,691 | ||||||
56,320 | Janus Capital Group, Inc. | 769,331 | ||||||
988,601 | JPMorgan Chase & Co. | 86,008,287 | ||||||
14,520 | Kemper Corp. | 571,362 | ||||||
199,079 | KeyCorp | 3,631,201 | ||||||
32,734 | Legg Mason, Inc. | 1,223,597 | ||||||
110,919 | Leucadia National Corp. | 2,816,233 | ||||||
69,013 | Lincoln National Corp. | 4,550,027 | ||||||
108,909 | Loews Corp. | 5,077,338 | ||||||
22,692 | LPL Financial Holdings, Inc. | 953,972 | ||||||
30,276 | M&T Bank Corp. | 4,705,193 | ||||||
2,615 | Markel Corp.(c) | 2,535,504 | ||||||
78,195 | Marsh & McLennan Cos., Inc. | 5,796,595 | ||||||
117,244 | MBIA, Inc.(c) | 984,850 | ||||||
413,983 | MetLife, Inc. | 21,448,459 | ||||||
138,723 | MFA Financial, Inc. REIT | 1,152,788 | ||||||
60,000 | MGIC Investment Corp.(c) | 632,400 | ||||||
16,271 | Moody’s Corp. | 1,925,185 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
314,972 | Morgan Stanley | $ | 13,660,336 | |||||
23,392 | Nasdaq, Inc. | 1,611,007 | ||||||
235,082 | Navient Corp. | 3,573,246 | ||||||
65,409 | New Residential Investment Corp. REIT | 1,090,368 | ||||||
198,212 | New York Community Bancorp, Inc. | 2,634,237 | ||||||
43,182 | Northern Trust Corp. | 3,886,380 | ||||||
91,454 | Old Republic International Corp. | 1,891,269 | ||||||
20,577 | PacWest Bancorp | 1,016,298 | ||||||
43,676 | PennyMac Mortgage Investment Trust REIT | 780,927 | ||||||
101,571 | People’s United Financial, Inc. | 1,774,445 | ||||||
82,384 | PHH Corp.(c) | 1,062,754 | ||||||
123,752 | PNC Financial Services Group, Inc. (The) | 14,819,302 | ||||||
30,471 | Popular, Inc. | 1,277,040 | ||||||
75,434 | Principal Financial Group, Inc. | 4,913,016 | ||||||
18,853 | ProAssurance Corp. | 1,167,001 | ||||||
149,364 | Progressive Corp. (The) | 5,932,738 | ||||||
12,768 | Prosperity Bancshares, Inc. | 858,010 | ||||||
166,453 | Prudential Financial, Inc. | 17,815,465 | ||||||
36,276 | Radian Group, Inc. | 612,339 | ||||||
19,370 | Raymond James Financial, Inc. | 1,443,452 | ||||||
334,947 | Regions Financial Corp. | 4,605,521 | ||||||
22,134 | Reinsurance Group of America, Inc. | 2,767,635 | ||||||
9,087 | RenaissanceRe Holdings Ltd. (Bermuda) | 1,291,899 | ||||||
11,043 | RLI Corp. | 631,880 | ||||||
22,590 | S&P Global, Inc. | 3,031,352 | ||||||
78,778 | Santander Consumer USA Holdings, Inc.(c) | 1,003,632 | ||||||
14,726 | Selective Insurance Group, Inc. | 777,533 | ||||||
6,827 | Signature Bank(c) | 945,198 | ||||||
150,816 | SLM Corp.(c) | 1,891,233 | ||||||
65,156 | Starwood Property Trust, Inc. REIT | 1,478,390 | ||||||
91,453 | State Street Corp. | 7,672,907 | ||||||
16,891 | Stifel Financial Corp.(c) | 825,463 | ||||||
128,856 | SunTrust Banks, Inc. | 7,320,309 | ||||||
7,540 | SVB Financial Group(c) | 1,326,588 | ||||||
252,663 | Synchrony Financial | 7,024,031 | ||||||
23,337 | Synovus Financial Corp. | 975,487 | ||||||
56,963 | T. Rowe Price Group, Inc. | 4,038,107 | ||||||
43,443 | TCF Financial Corp. | 717,244 | ||||||
27,349 | TD Ameritrade Holding Corp. | 1,046,646 | ||||||
25,078 | Torchmark Corp. | 1,923,733 | ||||||
120,848 | Travelers Cos., Inc. (The) | 14,702,368 | ||||||
137,881 | Two Harbors Investment Corp. REIT | 1,377,431 | ||||||
370,695 | U.S. Bancorp | 19,009,240 | ||||||
59,863 | Umpqua Holdings Corp. | 1,057,779 | ||||||
13,932 | United Bankshares, Inc. | 555,887 | ||||||
76,226 | Unum Group | 3,531,551 | ||||||
23,127 | Validus Holdings Ltd. | 1,278,461 | ||||||
73,515 | Valley National Bancorp | 864,536 | ||||||
100,312 | Voya Financial, Inc. | 3,749,663 | ||||||
26,897 | W.R. Berkley Corp. | 1,828,458 | ||||||
49,065 | Waddell & Reed Financial, Inc., Class A(b) | 882,679 | ||||||
19,688 | Washington Federal, Inc. | 663,486 | ||||||
13,536 | Webster Financial Corp. | 687,764 | ||||||
1,382,510 | Wells Fargo & Co. | 74,434,338 | ||||||
1,048 | White Mountains Insurance Group Ltd. | 900,169 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
14,035 | Willis Towers Watson PLC | $ | 1,861,322 | |||||
8,554 | Wintrust Financial Corp. | 606,136 | ||||||
90,568 | XL Group Ltd. (Bermuda) | 3,790,271 | ||||||
40,691 | Zions Bancorporation | 1,628,861 | ||||||
|
| |||||||
894,625,641 | ||||||||
|
| |||||||
Health Care—11.0% | ||||||||
231,746 | Abbott Laboratories | 10,113,395 | ||||||
215,059 | AbbVie, Inc. | 14,180,990 | ||||||
89,248 | Aetna, Inc. | 12,054,727 | ||||||
37,962 | Agilent Technologies, Inc. | 2,089,808 | ||||||
20,522 | Alere, Inc.(c) | 1,009,067 | ||||||
19,129 | Alexion Pharmaceuticals, Inc.(c) | 2,444,304 | ||||||
70,071 | Allergan PLC | 17,087,514 | ||||||
50,577 | Allscripts Healthcare Solutions, Inc.(c) | 605,407 | ||||||
95,526 | AmerisourceBergen Corp. | 7,837,908 | ||||||
95,239 | Amgen, Inc. | 15,554,434 | ||||||
99,260 | Anthem, Inc. | 17,657,361 | ||||||
103,178 | Baxter International, Inc. | 5,744,951 | ||||||
26,159 | Becton, Dickinson and Co. | 4,890,948 | ||||||
20,797 | Biogen, Inc.(c) | 5,640,354 | ||||||
3,548 | Bio-Rad Laboratories, Inc., Class A(c) | 774,387 | ||||||
92,605 | Boston Scientific Corp.(c) | 2,442,920 | ||||||
273,646 | Bristol-Myers Squibb Co. | 15,337,858 | ||||||
91,798 | Brookdale Senior Living, Inc.(c) | 1,192,456 | ||||||
5,691 | C.R. Bard, Inc. | 1,749,869 | ||||||
171,437 | Cardinal Health, Inc. | 12,444,612 | ||||||
23,105 | Catalent, Inc.(c) | 676,514 | ||||||
34,227 | Celgene Corp.(c) | 4,245,859 | ||||||
36,730 | Centene Corp.(c) | 2,732,712 | ||||||
31,085 | Cerner Corp.(c) | 2,012,754 | ||||||
49,343 | Cigna Corp. | 7,715,765 | ||||||
421,865 | Community Health Systems, Inc.(c) | 3,632,258 | ||||||
4,362 | Cooper Cos., Inc. (The) | 873,839 | ||||||
67,887 | Danaher Corp. | 5,657,024 | ||||||
60,850 | DaVita, Inc.(c) | 4,199,259 | ||||||
17,578 | DENTSPLY Sirona, Inc. | 1,111,633 | ||||||
15,389 | Edwards Lifesciences Corp.(c) | 1,687,712 | ||||||
174,939 | Eli Lilly & Co. | 14,355,494 | ||||||
134,062 | Endo International PLC(c) | 1,524,285 | ||||||
13,688 | Envision Healthcare Corp.(c) | 766,939 | ||||||
288,554 | Express Scripts Holding Co.(c) | 17,699,902 | ||||||
166,946 | Gilead Sciences, Inc. | 11,444,148 | ||||||
90,640 | HCA Holdings, Inc.(c) | 7,632,794 | ||||||
19,606 | HealthSouth Corp. | 919,521 | ||||||
15,406 | Henry Schein, Inc.(c) | 2,677,563 | ||||||
29,471 | Hologic, Inc.(c) | 1,330,616 | ||||||
40,167 | Humana, Inc. | 8,916,271 | ||||||
5,906 | Illumina, Inc.(c) | 1,091,783 | ||||||
2,617 | Intuitive Surgical, Inc.(c) | 2,187,472 | ||||||
4,969 | Jazz Pharmaceuticals PLC(c) | 791,462 | ||||||
486,306 | Johnson & Johnson | 60,044,202 | ||||||
140,742 | Kindred Healthcare, Inc. | 1,351,123 | ||||||
21,322 | Laboratory Corp. of America Holdings(c) | 2,988,278 | ||||||
21,335 | LifePoint Health, Inc.(c) | 1,325,970 | ||||||
11,505 | Magellan Health, Inc.(c) | 791,544 | ||||||
33,128 | Mallinckrodt PLC(c) | 1,554,366 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
130,693 | McKesson Corp. | $ | 18,073,535 | |||||
17,568 | MEDNAX, Inc.(c) | 1,060,404 | ||||||
237,999 | Medtronic PLC | 19,775,337 | ||||||
591,451 | Merck & Co., Inc. | 36,865,141 | ||||||
1,607 | Mettler-Toledo International, Inc.(c) | 825,066 | ||||||
25,559 | Molina Healthcare, Inc.(c) | 1,272,583 | ||||||
93,968 | Mylan NV(c) | 3,509,705 | ||||||
38,918 | Owens & Minor, Inc. | 1,348,509 | ||||||
21,134 | Patterson Cos., Inc. | 940,252 | ||||||
276,427 | PDL BioPharma, Inc. | 621,961 | ||||||
15,374 | PerkinElmer, Inc. | 913,369 | ||||||
29,901 | Perrigo Co. PLC | 2,210,880 | ||||||
1,576,660 | Pfizer, Inc. | 53,480,307 | ||||||
31,534 | Quest Diagnostics, Inc. | 3,327,152 | ||||||
11,398 | Quintiles IMS Holdings, Inc.(c) | 960,623 | ||||||
3,481 | Regeneron Pharmaceuticals, Inc.(c) | 1,352,334 | ||||||
13,237 | ResMed, Inc. | 899,984 | ||||||
57,801 | Select Medical Holdings Corp.(c) | 794,764 | ||||||
15,044 | STERIS PLC | 1,110,247 | ||||||
34,350 | Stryker Corp. | 4,684,310 | ||||||
4,893 | Teleflex, Inc. | 1,012,313 | ||||||
159,040 | Tenet Healthcare Corp.(b)(c) | 2,492,157 | ||||||
46,902 | Thermo Fisher Scientific, Inc. | 7,754,308 | ||||||
5,360 | United Therapeutics Corp.(c) | 673,752 | ||||||
185,189 | UnitedHealth Group, Inc. | 32,385,852 | ||||||
18,503 | Universal Health Services, Inc., Class B | 2,234,422 | ||||||
13,819 | Varian Medical Systems, Inc.(c) | 1,253,936 | ||||||
7,220 | VCA, Inc.(c) | 661,135 | ||||||
29,590 | VWR Corp.(c) | 836,213 | ||||||
7,490 | Waters Corp.(c) | 1,272,476 | ||||||
14,753 | WellCare Health Plans, Inc.(c) | 2,263,258 | ||||||
28,601 | Zimmer Biomet Holdings, Inc. | 3,422,110 | ||||||
35,477 | Zoetis, Inc. | 1,990,614 | ||||||
|
| |||||||
537,071,341 | ||||||||
|
| |||||||
Industrials—10.4% | ||||||||
93,443 | 3M Co. | 18,298,943 | ||||||
13,129 | A.O. Smith Corp. | 707,391 | ||||||
20,010 | ABM Industries, Inc. | 864,232 | ||||||
3,091 | Acuity Brands, Inc. | 544,325 | ||||||
59,303 | AECOM(c) | 2,028,756 | ||||||
57,550 | AerCap Holdings NV (Ireland)(c) | 2,647,876 | ||||||
31,999 | AGCO Corp. | 2,047,616 | ||||||
20,929 | Air Lease Corp. | 798,232 | ||||||
26,430 | Aircastle Ltd. | 624,277 | ||||||
27,647 | Allison Transmission Holdings, Inc. | 1,069,386 | ||||||
1,680 | AMERCO | 629,093 | ||||||
35,212 | American Airlines Group, Inc. | 1,500,735 | ||||||
31,114 | AMETEK, Inc. | 1,779,721 | ||||||
120,526 | Arconic, Inc. | 3,293,976 | ||||||
16,659 | Armstrong World Industries, Inc.(c) | 778,808 | ||||||
93,217 | Avis Budget Group, Inc.(c) | 2,843,118 | ||||||
113,506 | Boeing Co. (The) | 20,979,314 | ||||||
12,380 | Brink’s Co. (The) | 760,132 | ||||||
34,102 | C.H. Robinson Worldwide, Inc. | 2,479,215 | ||||||
10,623 | Carlisle Cos., Inc. | 1,077,066 | ||||||
194,033 | Caterpillar, Inc. | 19,841,815 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
50,154 | Chicago Bridge & Iron Co. NV | $ | 1,508,632 | |||||
11,833 | Cintas Corp. | 1,449,188 | ||||||
15,197 | Clean Harbors, Inc.(c) | 883,098 | ||||||
32,477 | Colfax Corp.(c) | 1,314,344 | ||||||
42,787 | Covanta Holding Corp. | 622,551 | ||||||
10,018 | Crane Co. | 800,538 | ||||||
167,418 | CSX Corp. | 8,511,531 | ||||||
41,074 | Cummins, Inc. | 6,199,710 | ||||||
7,274 | Curtiss-Wright Corp. | 679,828 | ||||||
95,369 | Deere & Co. | 10,644,134 | ||||||
45,897 | Delta Air Lines, Inc. | 2,085,560 | ||||||
9,684 | Deluxe Corp. | 696,376 | ||||||
19,416 | Donaldson Co., Inc. | 898,572 | ||||||
35,942 | Dover Corp. | 2,835,105 | ||||||
6,568 | Dun & Bradstreet Corp. (The) | 719,918 | ||||||
122,465 | Eaton Corp. PLC | 9,263,253 | ||||||
15,104 | EMCOR Group, Inc. | 992,937 | ||||||
171,101 | Emerson Electric Co. | 10,313,968 | ||||||
8,120 | EnerSys | 674,853 | ||||||
11,278 | Equifax, Inc. | 1,526,026 | ||||||
35,630 | Essendant, Inc. | 595,021 | ||||||
9,571 | Esterline Technologies Corp.(c) | 875,268 | ||||||
30,971 | Expeditors International of Washington, Inc. | 1,737,163 | ||||||
41,212 | Fastenal Co. | 1,841,352 | ||||||
54,662 | FedEx Corp. | 10,369,381 | ||||||
31,795 | Flowserve Corp. | 1,617,412 | ||||||
70,936 | Fluor Corp. | 3,640,436 | ||||||
44,350 | Fortive Corp. | 2,805,581 | ||||||
20,895 | Fortune Brands Home & Security, Inc. | 1,331,847 | ||||||
15,001 | FTI Consulting, Inc.(c) | 518,885 | ||||||
12,612 | GATX Corp.(b) | 755,459 | ||||||
21,962 | Generac Holdings, Inc.(c) | 772,404 | ||||||
47,582 | General Cable Corp. | 856,476 | ||||||
51,427 | General Dynamics Corp. | 9,966,038 | ||||||
2,323,099 | General Electric Co. | 67,346,640 | ||||||
13,193 | Genesee & Wyoming, Inc., Class A(c) | 893,958 | ||||||
6,778 | Graco, Inc. | 731,007 | ||||||
47,946 | Harsco Corp.(c) | 625,695 | ||||||
40,481 | HD Supply Holdings, Inc.(c) | 1,631,384 | ||||||
247,427 | Hertz Global Holdings, Inc.(b)(c) | 4,080,071 | ||||||
123,115 | Honeywell International, Inc. | 16,145,301 | ||||||
13,605 | Hub Group, Inc., Class A(c) | 532,636 | ||||||
10,355 | Hubbell, Inc. | 1,171,461 | ||||||
6,954 | Huntington Ingalls Industries, Inc. | 1,396,989 | ||||||
11,113 | IDEX Corp. | 1,164,198 | ||||||
20,281 | IHS Markit Ltd.(c) | 880,195 | ||||||
48,089 | Illinois Tool Works, Inc. | 6,640,610 | ||||||
47,158 | Ingersoll-Rand PLC | 4,185,273 | ||||||
17,122 | ITT, Inc. | 721,350 | ||||||
12,367 | J.B. Hunt Transport Services, Inc. | 1,108,825 | ||||||
52,777 | Jacobs Engineering Group, Inc. | 2,898,513 | ||||||
107,642 | Johnson Controls International PLC | 4,474,678 | ||||||
20,681 | Kansas City Southern | 1,862,738 | ||||||
23,067 | KAR Auction Services, Inc. | 1,006,183 | ||||||
70,758 | KBR, Inc. | 994,150 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
21,913 | Kennametal, Inc. | $ | 911,143 | |||||
17,195 | Kirby Corp.(c) | 1,213,967 | ||||||
14,929 | KLX, Inc.(c) | 706,142 | ||||||
8,543 | Lincoln Electric Holdings, Inc. | 760,583 | ||||||
53,964 | Lockheed Martin Corp. | 14,540,600 | ||||||
38,560 | LSC Communications, Inc. | 997,547 | ||||||
15,913 | Macquarie Infrastructure Corp. | 1,294,841 | ||||||
32,962 | ManpowerGroup, Inc. | 3,328,503 | ||||||
42,643 | Masco Corp. | 1,578,644 | ||||||
20,512 | MasTec, Inc.(c) | 905,605 | ||||||
45,377 | Meritor, Inc.(c) | 808,164 | ||||||
9,514 | Moog, Inc., Class A(c) | 653,136 | ||||||
54,541 | MRC Global, Inc.(c) | 994,282 | ||||||
8,934 | MSC Industrial Direct Co., Inc., Class A | 799,861 | ||||||
37,080 | Navistar International Corp.(c) | 997,823 | ||||||
63,513 | Nielsen Holdings PLC | 2,612,290 | ||||||
65,471 | Norfolk Southern Corp. | 7,692,188 | ||||||
31,663 | Northrop Grumman Corp. | 7,787,831 | ||||||
38,750 | NOW, Inc.(c) | 659,138 | ||||||
11,922 | Old Dominion Freight Line, Inc. | 1,055,335 | ||||||
8,947 | Orbital ATK, Inc. | 885,753 | ||||||
19,914 | Oshkosh Corp. | 1,381,832 | ||||||
25,941 | Owens Corning | 1,578,510 | ||||||
98,518 | PACCAR, Inc. | 6,574,106 | ||||||
27,609 | Parker-Hannifin Corp. | 4,439,527 | ||||||
37,333 | Pentair PLC (United Kingdom) | 2,408,352 | ||||||
132,205 | Pitney Bowes, Inc. | 1,757,004 | ||||||
50,419 | Quanta Services, Inc.(c) | 1,786,849 | ||||||
56,128 | Raytheon Co. | 8,711,627 | ||||||
12,285 | Regal Beloit Corp. | 968,672 | ||||||
54,558 | Republic Services, Inc. | 3,436,608 | ||||||
30,243 | Rexnord Corp.(c) | 737,929 | ||||||
23,883 | Robert Half International, Inc. | 1,099,812 | ||||||
18,326 | Rockwell Automation, Inc. | 2,883,596 | ||||||
22,014 | Rockwell Collins, Inc. | 2,291,437 | ||||||
10,090 | Roper Technologies, Inc. | 2,206,683 | ||||||
80,737 | RR Donnelley & Sons Co. | 1,014,864 | ||||||
19,019 | Rush Enterprises, Inc., Class A(c) | 717,967 | ||||||
28,332 | Ryder System, Inc. | 1,924,026 | ||||||
26,851 | Sensata Technologies Holding NV(c) | 1,105,724 | ||||||
8,336 | Snap-on, Inc. | 1,396,530 | ||||||
21,839 | Southwest Airlines Co. | 1,227,789 | ||||||
27,686 | Spirit AeroSystems Holdings, Inc., Class A | 1,582,532 | ||||||
25,515 | SPX FLOW, Inc.(c) | 922,112 | ||||||
32,294 | Stanley Black & Decker, Inc. | 4,396,828 | ||||||
13,634 | Stericycle, Inc.(c) | 1,163,526 | ||||||
32,797 | Swift Transportation Co., Class A(c) | 806,150 | ||||||
6,224 | Teledyne Technologies, Inc.(c) | 839,182 | ||||||
41,684 | Terex Corp. | 1,458,106 | ||||||
62,346 | Textron, Inc. | 2,909,064 | ||||||
18,908 | Timken Co. (The) | 912,311 | ||||||
10,453 | TransDigm Group, Inc. | 2,579,069 | ||||||
54,856 | Trinity Industries, Inc. | 1,475,626 | ||||||
27,999 | Triumph Group, Inc. | 733,574 | ||||||
23,559 | Tutor Perini Corp.(c) | 726,795 | ||||||
149,954 | Union Pacific Corp. | 16,788,850 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
33,672 | United Continental Holdings, Inc.(c) | $ | 2,364,111 | |||||
142,088 | United Parcel Service, Inc., Class B | 15,268,776 | ||||||
18,818 | United Rentals, Inc.(c) | 2,063,582 | ||||||
195,587 | United Technologies Corp. | 23,272,897 | ||||||
38,235 | Univar, Inc.(c) | 1,141,315 | ||||||
5,136 | Valmont Industries, Inc. | 782,470 | ||||||
12,538 | Verisk Analytics, Inc.(c) | 1,038,272 | ||||||
10,393 | W.W. Grainger, Inc. | 2,002,731 | ||||||
7,643 | WABCO Holdings, Inc.(c) | 908,523 | ||||||
8,287 | Wabtec Corp.(b) | 695,196 | ||||||
91,559 | Waste Management, Inc. | 6,663,664 | ||||||
5,181 | Watsco, Inc. | 719,123 | ||||||
33,399 | Welbilt, Inc.(c) | 684,680 | ||||||
23,889 | WESCO International, Inc.(c) | 1,456,035 | ||||||
8,788 | Woodward, Inc. | 594,684 | ||||||
18,792 | XPO Logistics, Inc.(c) | 928,137 | ||||||
28,141 | Xylem, Inc. | 1,446,729 | ||||||
57,745 | YRC Worldwide, Inc.(c) | 615,562 | ||||||
|
| |||||||
507,161,759 | ||||||||
|
| |||||||
Information Technology—13.7% | ||||||||
88,759 | Accenture PLC, Class A | 10,766,467 | ||||||
72,387 | Activision Blizzard, Inc. | 3,782,221 | ||||||
25,287 | Adobe Systems, Inc.(c) | 3,381,883 | ||||||
21,743 | Akamai Technologies, Inc.(c) | 1,325,018 | ||||||
9,232 | Alliance Data Systems Corp. | 2,304,584 | ||||||
25,365 | Alphabet, Inc., Class A(c) | 23,450,450 | ||||||
24,797 | Alphabet, Inc., Class C(c) | 22,465,090 | ||||||
25,088 | Amdocs Ltd. | 1,536,389 | ||||||
69,874 | Amkor Technology, Inc.(c) | 823,116 | ||||||
29,085 | Amphenol Corp., Class A | 2,103,136 | ||||||
38,115 | Analog Devices, Inc. | 2,904,363 | ||||||
12,577 | Anixter International, Inc.(c) | 1,025,654 | ||||||
8,602 | ANSYS, Inc.(c) | 947,596 | ||||||
730,805 | Apple, Inc. | 104,980,138 | ||||||
135,718 | Applied Materials, Inc. | 5,511,508 | ||||||
33,906 | ARRIS International PLC(c) | 881,217 | ||||||
63,051 | Arrow Electronics, Inc.(c) | 4,445,095 | ||||||
11,125 | Autodesk, Inc.(c) | 1,002,029 | ||||||
57,181 | Automatic Data Processing, Inc. | 5,974,843 | ||||||
91,094 | Avnet, Inc. | 3,524,427 | ||||||
22,123 | Benchmark Electronics, Inc.(c) | 701,299 | ||||||
61,160 | Booz Allen Hamilton Holding Corp. | 2,197,479 | ||||||
12,665 | Broadcom Ltd. | 2,796,559 | ||||||
14,644 | Broadridge Financial Solutions, Inc. | 1,024,201 | ||||||
81,447 | Brocade Communications Systems, Inc. | 1,023,789 | ||||||
87,795 | CA, Inc. | 2,882,310 | ||||||
7,870 | CACI International, Inc., Class A(c) | 928,660 | ||||||
24,808 | Cadence Design Systems, Inc.(c) | 807,997 | ||||||
9,814 | CDK Global, Inc. | 638,008 | ||||||
27,743 | CDW Corp. | 1,639,334 | ||||||
11,483 | Check Point Software Technologies Ltd. (Israel)(c) | 1,194,347 | ||||||
938,111 | Cisco Systems, Inc. | 31,961,442 | ||||||
16,740 | Citrix Systems, Inc.(c) | 1,354,936 | ||||||
82,028 | Cognizant Technology Solutions Corp., Class A(c) | 4,940,546 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
35,133 | CommScope Holding Co., Inc.(c) | $ | 1,476,991 | |||||
26,298 | Convergys Corp. | 591,968 | ||||||
16,103 | CoreLogic, Inc.(c) | 688,242 | ||||||
246,229 | Corning, Inc. | 7,103,707 | ||||||
31,084 | Cree, Inc.(c) | 680,118 | ||||||
34,969 | CSRA, Inc. | 1,016,899 | ||||||
63,469 | Cypress Semiconductor Corp. | 889,201 | ||||||
23,352 | Diebold Nixdorf, Inc. | 658,526 | ||||||
6,608 | DST Systems, Inc. | 813,511 | ||||||
59,474 | Dxc Technology Co.(c) | 4,480,771 | ||||||
101,276 | eBay, Inc.(c) | 3,383,631 | ||||||
15,962 | EchoStar Corp., Class A(c) | 918,773 | ||||||
19,916 | Electronic Arts, Inc.(c) | 1,888,435 | ||||||
6,376 | F5 Networks, Inc.(c) | 823,333 | ||||||
82,881 | Facebook, Inc., Class A(c) | 12,452,870 | ||||||
49,211 | Fidelity National Information Services, Inc. | 4,143,074 | ||||||
77,985 | First Data Corp., Class A(c) | 1,218,126 | ||||||
40,903 | First Solar, Inc.(b)(c) | 1,208,684 | ||||||
22,335 | Fiserv, Inc.(c) | 2,660,992 | ||||||
5,885 | FleetCor Technologies, Inc.(c) | 830,609 | ||||||
299,766 | Flex Ltd.(c) | 4,634,382 | ||||||
22,252 | FLIR Systems, Inc. | 817,316 | ||||||
31,476 | Genpact Ltd. | 768,644 | ||||||
13,215 | Global Payments, Inc. | 1,080,458 | ||||||
21,480 | Harris Corp. | 2,403,397 | ||||||
692,484 | Hewlett Packard Enterprise Co. | 12,900,977 | ||||||
680,761 | HP, Inc. | 12,811,922 | ||||||
12,516 | IAC/InterActiveCorp.(c) | 1,038,953 | ||||||
20,348 | Insight Enterprises, Inc.(c) | 856,651 | ||||||
1,246,238 | Intel Corp. | 45,051,504 | ||||||
229,727 | International Business Machines Corp. | 36,822,941 | ||||||
17,513 | Intuit, Inc. | 2,192,803 | ||||||
102,558 | Jabil Circuit, Inc. | 2,976,233 | ||||||
62,625 | Juniper Networks, Inc. | 1,883,134 | ||||||
32,837 | Keysight Technologies, Inc.(c) | 1,229,089 | ||||||
42,957 | KLA-Tencor Corp. | 4,219,237 | ||||||
15,610 | Lam Research Corp. | 2,261,108 | ||||||
22,556 | Leidos Holdings, Inc. | 1,187,799 | ||||||
82,047 | Marvell Technology Group Ltd. (Bermuda) | 1,232,346 | ||||||
47,741 | Mastercard, Inc., Class A | 5,553,233 | ||||||
45,847 | Maxim Integrated Products, Inc. | 2,024,145 | ||||||
26,374 | Microchip Technology, Inc. | 1,993,347 | ||||||
291,271 | Micron Technology, Inc.(c) | 8,059,469 | ||||||
1,008,248 | Microsoft Corp. | 69,024,658 | ||||||
26,713 | Motorola Solutions, Inc. | 2,296,517 | ||||||
32,369 | NCR Corp.(c) | 1,335,221 | ||||||
52,878 | NetApp, Inc. | 2,107,188 | ||||||
17,596 | NetScout Systems, Inc.(c) | 662,489 | ||||||
44,568 | Nuance Communications, Inc.(c) | 797,322 | ||||||
19,443 | NVIDIA Corp. | 2,027,905 | ||||||
33,366 | NXP Semiconductors NV (Netherlands)(c) | 3,528,455 | ||||||
72,219 | ON Semiconductor Corp.(c) | 1,024,065 | ||||||
530,631 | Oracle Corp. | 23,857,170 | ||||||
47,414 | Paychex, Inc. | 2,810,702 | ||||||
114,575 | PayPal Holdings, Inc.(c) | 5,467,519 | ||||||
26,737 | Qorvo, Inc.(c) | 1,818,918 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
346,519 | QUALCOMM, Inc. | $ | 18,621,931 | |||||
9,112 | Red Hat, Inc.(c) | 802,585 | ||||||
20,686 | salesforce.com, inc.(c) | 1,781,478 | ||||||
34,673 | Sanmina Corp.(c) | 1,291,569 | ||||||
15,383 | ScanSource, Inc.(c) | 607,629 | ||||||
7,206 | Science Applications International Corp. | 525,966 | ||||||
105,951 | Seagate Technology PLC | 4,463,716 | ||||||
12,710 | Skyworks Solutions, Inc. | 1,267,695 | ||||||
186,559 | Symantec Corp. | 5,900,861 | ||||||
10,231 | SYNNEX Corp. | 1,109,347 | ||||||
18,051 | Synopsys, Inc.(c) | 1,330,359 | ||||||
75,341 | TE Connectivity Ltd. | 5,829,133 | ||||||
46,083 | Tech Data Corp.(c) | 4,407,839 | ||||||
31,312 | Teradata Corp.(c) | 913,684 | ||||||
25,955 | Teradyne, Inc. | 915,433 | ||||||
125,018 | Texas Instruments, Inc. | 9,898,925 | ||||||
18,180 | Total System Services, Inc. | 1,041,896 | ||||||
34,577 | Trimble, Inc.(c) | 1,225,063 | ||||||
57,027 | Twitter, Inc.(c) | 939,805 | ||||||
57,987 | Unisys Corp.(b)(c) | 655,253 | ||||||
11,602 | Vantiv, Inc., Class A(c) | 719,788 | ||||||
31,569 | VeriFone Systems, Inc.(c) | 585,289 | ||||||
115,680 | Visa, Inc., Class A | 10,552,330 | ||||||
45,524 | Vishay Intertechnology, Inc. | 744,317 | ||||||
64,278 | Western Digital Corp. | 5,725,241 | ||||||
133,849 | Western Union Co. (The) | 2,658,241 | ||||||
547,203 | Xerox Corp. | 3,934,390 | ||||||
34,355 | Xilinx, Inc. | 2,168,144 | ||||||
142,273 | Yahoo!, Inc.(c) | 6,858,981 | ||||||
|
| |||||||
673,388,697 | ||||||||
|
| |||||||
Materials—3.6% | ||||||||
37,378 | Air Products & Chemicals, Inc. | 5,251,609 | ||||||
89,966 | AK Steel Holding Corp.(c) | 570,384 | ||||||
16,061 | Albemarle Corp. | 1,749,204 | ||||||
143,005 | Alcoa Corp. | 4,823,559 | ||||||
59,746 | Allegheny Technologies, Inc.(b) | 1,096,339 | ||||||
11,624 | AptarGroup, Inc. | 933,407 | ||||||
15,732 | Ashland Global Holdings, Inc. | 1,942,902 | ||||||
20,200 | Avery Dennison Corp. | 1,680,842 | ||||||
43,909 | Axalta Coating Systems Ltd.(c) | 1,377,425 | ||||||
26,880 | Ball Corp. | 2,066,803 | ||||||
28,908 | Bemis Co., Inc. | 1,298,836 | ||||||
19,394 | Berry Global Group, Inc.(c) | 969,700 | ||||||
15,030 | Cabot Corp. | 904,656 | ||||||
15,127 | Carpenter Technology Corp. | 614,156 | ||||||
22,569 | Celanese Corp., Series A | 1,964,406 | ||||||
102,451 | CF Industries Holdings, Inc. | 2,739,540 | ||||||
44,777 | Chemours Co. (The) | 1,804,065 | ||||||
131,736 | Cliffs Natural Resources, Inc.(c) | 885,266 | ||||||
53,016 | Commercial Metals Co. | 988,218 | ||||||
8,437 | Compass Minerals International, Inc.(b) | 556,842 | ||||||
92,738 | Constellium NV, Class A (Netherlands)(c) | 644,529 | ||||||
39,310 | Crown Holdings, Inc.(c) | 2,204,898 | ||||||
40,201 | Domtar Corp. | 1,593,970 | ||||||
286,231 | Dow Chemical Co. (The) | 17,975,307 | ||||||
170,994 | E.I. du Pont de Nemours & Co. | 13,636,771 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Materials (continued) | ||||||||
40,452 | Eastman Chemical Co. | $ | 3,226,047 | |||||
34,251 | Ecolab, Inc. | 4,421,462 | ||||||
21,454 | FMC Corp. | 1,571,076 | ||||||
688,716 | Freeport-McMoRan, Inc.(c) | 8,781,129 | ||||||
70,865 | Graphic Packaging Holding Co. | 962,347 | ||||||
75,416 | Huntsman Corp. | 1,868,054 | ||||||
11,280 | International Flavors & Fragrances, Inc. | 1,563,295 | ||||||
135,457 | International Paper Co. | 7,310,614 | ||||||
144,683 | LyondellBasell Industries NV, Class A | 12,263,331 | ||||||
6,874 | Martin Marietta Materials, Inc. | 1,513,586 | ||||||
72,838 | Monsanto Co. | 8,493,639 | ||||||
150,670 | Mosaic Co. (The) | 4,057,543 | ||||||
1,804 | NewMarket Corp. | 849,143 | ||||||
143,975 | Newmont Mining Corp. | 4,867,795 | ||||||
93,099 | Nucor Corp. | 5,709,762 | ||||||
33,907 | Olin Corp. | 1,089,432 | ||||||
101,424 | Owens-Illinois, Inc.(c) | 2,213,072 | ||||||
17,653 | Packaging Corp. of America | 1,743,763 | ||||||
51,748 | Platform Specialty Products Corp.(c) | 733,269 | ||||||
21,243 | PolyOne Corp. | 832,938 | ||||||
47,858 | PPG Industries, Inc. | 5,256,723 | ||||||
56,781 | Praxair, Inc. | 7,096,489 | ||||||
25,158 | Reliance Steel & Aluminum Co. | 1,982,954 | ||||||
27,494 | RPM International, Inc. | 1,445,085 | ||||||
30,427 | Sealed Air Corp. | 1,339,397 | ||||||
7,183 | Sherwin-Williams Co. (The) | 2,404,006 | ||||||
10,372 | Silgan Holdings, Inc. | 628,751 | ||||||
26,990 | Sonoco Products Co. | 1,411,847 | ||||||
24,102 | Southern Copper Corp. (Peru) | 852,488 | ||||||
49,748 | Steel Dynamics, Inc. | 1,797,893 | ||||||
15,025 | Trinseo SA | 997,660 | ||||||
59,083 | United States Steel Corp. | 1,318,733 | ||||||
10,716 | Valspar Corp. (The) | 1,204,907 | ||||||
12,708 | Vulcan Materials Co. | 1,536,143 | ||||||
10,174 | W.R. Grace & Co. | 709,331 | ||||||
66,715 | WestRock Co. | 3,573,255 | ||||||
|
| |||||||
177,900,593 | ||||||||
|
| |||||||
Real Estate—3.1% | ||||||||
11,187 | Alexandria Real Estate Equities, Inc. REIT | 1,258,649 | ||||||
23,778 | American Campus Communities, Inc. REIT | 1,126,839 | ||||||
35,323 | American Tower Corp. REIT | 4,448,579 | ||||||
24,288 | Apartment Investment & Management Co., Class A REIT | 1,062,357 | ||||||
58,470 | Apple Hospitality REIT, Inc. REIT | 1,095,143 | ||||||
20,338 | AvalonBay Communities, Inc. REIT | 3,860,966 | ||||||
28,772 | Boston Properties, Inc. REIT | 3,642,535 | ||||||
53,407 | Brandywine Realty Trust REIT | 906,317 | ||||||
71,123 | Brixmor Property Group, Inc. REIT | 1,404,679 | ||||||
18,560 | Camden Property Trust REIT | 1,528,045 | ||||||
106,304 | CBL & Associates Properties, Inc. REIT | 983,312 | ||||||
56,767 | CBRE Group, Inc., Class A(c) | 2,032,826 | ||||||
53,134 | Columbia Property Trust, Inc. REIT | 1,195,515 | ||||||
50,592 | CoreCivic, Inc. REIT(b) | 1,742,894 | ||||||
23,554 | Corporate Office Properties Trust REIT | 771,158 | ||||||
38,661 | Crown Castle International Corp. REIT | 3,657,331 | ||||||
23,100 | CubeSmart REIT | 585,354 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Real Estate (continued) | ||||||||
14,834 | DCT Industrial Trust, Inc. REIT | $ | 750,007 | |||||
86,033 | DDR Corp. REIT | 930,017 | ||||||
66,301 | DiamondRock Hospitality Co. REIT | 729,974 | ||||||
23,823 | Digital Realty Trust, Inc. REIT | 2,735,833 | ||||||
21,720 | Douglas Emmett, Inc. REIT | 818,192 | ||||||
66,594 | Duke Realty Corp. REIT | 1,846,652 | ||||||
10,667 | EPR Properties REIT | 775,598 | ||||||
4,009 | Equinix, Inc. REIT | 1,674,559 | ||||||
34,329 | Equity Commonwealth REIT(c) | 1,098,185 | ||||||
8,851 | Equity LifeStyle Properties, Inc. REIT | 716,134 | ||||||
78,819 | Equity Residential REIT | 5,090,131 | ||||||
9,225 | Essex Property Trust, Inc. REIT | 2,255,236 | ||||||
13,533 | Extra Space Storage, Inc. REIT | 1,022,147 | ||||||
8,697 | Federal Realty Investment Trust REIT | 1,138,350 | ||||||
42,486 | Forest City Realty Trust, Inc., Class A REIT | 960,184 | ||||||
21,906 | Gaming and Leisure Properties, Inc. REIT | 762,329 | ||||||
29,778 | Geo Group, Inc. (The) REIT | 992,203 | ||||||
98,275 | GGP, Inc. REIT | 2,123,723 | ||||||
26,290 | Gramercy Property Trust REIT | 730,599 | ||||||
135,123 | HCP, Inc. REIT | 4,236,106 | ||||||
22,566 | Healthcare Realty Trust, Inc. REIT | 740,165 | ||||||
23,181 | Healthcare Trust of America, Inc., Class A REIT | 739,242 | ||||||
19,203 | Highwoods Properties, Inc. REIT | 977,049 | ||||||
58,302 | Hospitality Properties Trust REIT | 1,855,753 | ||||||
206,273 | Host Hotels & Resorts, Inc. REIT | 3,702,600 | ||||||
5,819 | Howard Hughes Corp. (The)(c) | 716,377 | ||||||
70,746 | Iron Mountain, Inc. REIT | 2,459,131 | ||||||
10,943 | Jones Lang LaSalle, Inc. | 1,256,913 | ||||||
13,044 | Kilroy Realty Corp. REIT | 919,993 | ||||||
85,952 | Kimco Realty Corp. REIT | 1,743,966 | ||||||
10,802 | Lamar Advertising Co., Class A REIT | 778,500 | ||||||
34,078 | LaSalle Hotel Properties REIT | 973,268 | ||||||
68,696 | Lexington Realty Trust REIT | 698,638 | ||||||
38,482 | Liberty Property Trust REIT | 1,561,215 | ||||||
33,630 | Macerich Co. (The) REIT | 2,099,521 | ||||||
30,461 | Mack-Cali Realty Corp. REIT | 823,970 | ||||||
54,996 | Medical Properties Trust, Inc. REIT | 718,798 | ||||||
13,434 | Mid-America Apartment Communities, Inc. REIT | 1,332,787 | ||||||
22,933 | National Retail Properties, Inc. REIT | 968,231 | ||||||
35,980 | OMEGA Healthcare Investors, Inc. REIT | 1,187,340 | ||||||
43,505 | Outfront Media, Inc. REIT | 1,138,091 | ||||||
42,401 | Paramount Group, Inc. REIT | 695,376 | ||||||
35,635 | Park Hotels & Resorts, Inc. REIT | 914,750 | ||||||
49,609 | Piedmont Office Realty Trust, Inc., Class A REIT | 1,083,957 | ||||||
100,320 | Prologis, Inc. REIT | 5,458,411 | ||||||
14,211 | Public Storage REIT | 2,975,499 | ||||||
74,362 | Quality Care Properties, Inc. REIT(c) | 1,290,181 | ||||||
37,867 | Rayonier, Inc. REIT | 1,068,607 | ||||||
61,317 | Realogy Holdings Corp. | 1,873,234 | ||||||
33,790 | Realty Income Corp. REIT | 1,971,646 | ||||||
14,877 | Regency Centers Corp. REIT | 939,929 | ||||||
72,044 | Retail Properties of America, Inc., Class A REIT | 961,067 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Real Estate (continued) | ||||||||
42,866 | RLJ Lodging Trust REIT | $ | 921,190 | |||||
11,474 | Ryman Hospitality Properties, Inc. REIT | 731,812 | ||||||
6,040 | SBA Communications Corp. REIT(c) | 764,000 | ||||||
82,505 | Senior Housing Properties Trust REIT | 1,775,508 | ||||||
41,763 | Simon Property Group, Inc. REIT | 6,901,753 | ||||||
20,519 | SL Green Realty Corp. REIT | 2,153,059 | ||||||
108,681 | Spirit Realty Capital, Inc. REIT | 1,023,775 | ||||||
8,133 | Sun Communities, Inc. REIT | 680,000 | ||||||
59,893 | Sunstone Hotel Investors, Inc. REIT | 891,807 | ||||||
13,867 | Taubman Centers, Inc. REIT | 867,381 | ||||||
43,541 | UDR, Inc. REIT | 1,625,821 | ||||||
81,295 | Ventas, Inc. REIT | 5,203,693 | ||||||
252,194 | VEREIT, Inc. REIT | 2,110,864 | ||||||
30,122 | Vornado Realty Trust REIT | 2,898,941 | ||||||
100,374 | Washington Prime Group, Inc. REIT | 883,291 | ||||||
23,918 | Weingarten Realty Investors REIT | 783,793 | ||||||
92,456 | Welltower, Inc. REIT | 6,605,057 | ||||||
115,558 | Weyerhaeuser Co. REIT | 3,913,949 | ||||||
19,378 | WP Carey, Inc. REIT | 1,213,063 | ||||||
47,826 | Xenia Hotels & Resorts, Inc. REIT | 835,042 | ||||||
|
| |||||||
152,096,662 | ||||||||
|
| |||||||
Telecommunication Services—3.6% | ||||||||
2,237,313 | AT&T, Inc. | 88,664,714 | ||||||
549,712 | CenturyLink, Inc.(b) | 14,111,107 | ||||||
1,364,963 | Frontier Communications Corp.(b) | 2,566,130 | ||||||
61,831 | Level 3 Communications, Inc.(c) | 3,756,852 | ||||||
54,530 | Telephone & Data Systems, Inc. | 1,497,394 | ||||||
47,672 | T-Mobile US, Inc.(c) | 3,206,895 | ||||||
1,305,227 | Verizon Communications, Inc. | 59,922,972 | ||||||
227,335 | Windstream Holdings, Inc.(b) | 1,254,889 | ||||||
|
| |||||||
174,980,953 | ||||||||
|
| |||||||
Utilities—5.0% | ||||||||
471,931 | AES Corp. (The) | 5,337,540 | ||||||
12,216 | ALLETE, Inc. | 854,021 | ||||||
59,830 | Alliant Energy Corp. | 2,352,516 | ||||||
82,607 | Ameren Corp. | 4,517,777 | ||||||
172,240 | American Electric Power Co., Inc. | 11,683,039 | ||||||
36,621 | American Water Works Co., Inc. | 2,920,891 | ||||||
31,848 | Aqua America, Inc. | 1,053,850 | ||||||
25,067 | Atmos Energy Corp. | 2,030,928 | ||||||
20,463 | Avangrid, Inc. | 890,141 | ||||||
22,596 | Avista Corp. | 911,523 | ||||||
13,089 | Black Hills Corp. | 890,314 | ||||||
223,530 | Calpine Corp.(c) | 2,280,006 | ||||||
150,768 | CenterPoint Energy, Inc. | 4,301,411 | ||||||
77,762 | CMS Energy Corp. | 3,530,395 | ||||||
109,504 | Consolidated Edison, Inc. | 8,681,477 | ||||||
145,449 | Dominion Resources, Inc. | 11,262,116 | ||||||
56,392 | DTE Energy Co. | 5,898,039 | ||||||
256,311 | Duke Energy Corp. | 21,145,658 | ||||||
122,600 | Dynegy, Inc.(c) | 787,092 | ||||||
93,256 | Edison International | 7,457,682 | ||||||
92,491 | Entergy Corp. | 7,053,364 | ||||||
90,917 | Eversource Energy | 5,400,470 | ||||||
448,064 | Exelon Corp. | 15,516,456 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Utilities (continued) | ||||||||
276,876 | FirstEnergy Corp. | $ | 8,289,668 | |||||
62,645 | Great Plains Energy, Inc. | 1,853,666 | ||||||
42,017 | Hawaiian Electric Industries, Inc. | 1,408,410 | ||||||
12,122 | IDACORP, Inc. | 1,024,551 | ||||||
63,129 | MDU Resources Group, Inc. | 1,698,170 | ||||||
19,859 | National Fuel Gas Co. | 1,099,791 | ||||||
22,738 | New Jersey Resources Corp. | 917,478 | ||||||
104,547 | NextEra Energy, Inc. | 13,963,297 | ||||||
83,808 | NiSource, Inc. | 2,032,344 | ||||||
13,837 | NorthWestern Corp. | 827,176 | ||||||
169,361 | NRG Energy, Inc. | 2,862,201 | ||||||
58,596 | OGE Energy Corp. | 2,037,969 | ||||||
12,651 | ONE Gas, Inc. | 870,768 | ||||||
153,567 | PG&E Corp. | 10,296,667 | ||||||
36,123 | Pinnacle West Capital Corp. | 3,073,706 | ||||||
25,497 | PNM Resources, Inc. | 949,763 | ||||||
28,106 | Portland General Electric Co. | 1,274,326 | ||||||
224,036 | PPL Corp. | 8,538,012 | ||||||
189,633 | Public Service Enterprise Group, Inc. | 8,353,334 | ||||||
44,095 | SCANA Corp. | 2,923,940 | ||||||
65,672 | Sempra Energy | 7,422,249 | ||||||
321,946 | Southern Co. (The) | 16,032,911 | ||||||
10,773 | Spire, Inc. | 738,489 | ||||||
47,939 | UGI Corp. | 2,404,620 | ||||||
24,207 | Vectren Corp. | 1,438,380 | ||||||
69,445 | WEC Energy Group, Inc. | 4,202,811 | ||||||
38,051 | Westar Energy, Inc. | 1,979,794 | ||||||
11,868 | WGL Holdings, Inc. | 978,635 | ||||||
160,087 | Xcel Energy, Inc. | 7,211,919 | ||||||
|
| |||||||
243,461,751 | ||||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $4,206,655,399)—100.0% | 4,895,697,430 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—1.1% | ||||||||
56,940,680 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(e)(f) (Cost $56,940,680) | 56,940,680 | ||||||
|
| |||||||
Total Investments (Cost $4,263,596,079)—101.1% | 4,952,638,110 | |||||||
Other assets less liabilities—(1.1)% | (55,550,773 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 4,897,087,337 | ||||||
|
|
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, 2017. |
(c) | Non-income producing security. |
(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, 2017. |
(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 2I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 26 |
|
Schedule of Investments(a)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—99.9% | ||||||||
Consumer Discretionary—17.3% | ||||||||
35,943 | 1-800-Flowers.com, Inc., Class A(b) | $ | 386,387 | |||||
100,841 | Aaron’s, Inc. | 3,624,226 | ||||||
35,242 | AMC Entertainment Holdings, Inc., Class A | 1,067,833 | ||||||
66,352 | American Outdoor Brands Corp.(b)(c) | 1,469,697 | ||||||
29,265 | American Public Education, Inc.(b) | 646,756 | ||||||
12,921 | America’s Car-Mart, Inc.(b)(c) | 481,953 | ||||||
308,111 | Arcos Dorados Holdings, Inc., Class A (Uruguay)(b) | 2,526,510 | ||||||
44,508 | Ascent Capital Group, Inc., Class A(b) | 570,147 | ||||||
14,759 | AV Homes, Inc.(b) | 259,020 | ||||||
142,051 | Barnes & Noble Education, Inc.(b) | 1,478,751 | ||||||
238,554 | Barnes & Noble, Inc. | 2,039,637 | ||||||
16,716 | Bassett Furniture Industries, Inc. | 502,316 | ||||||
108,360 | Beazer Homes USA, Inc.(b) | 1,344,748 | ||||||
93,236 | Belmond Ltd., Class A (United Kingdom)(b) | 1,156,126 | ||||||
55,044 | Big 5 Sporting Goods Corp. | 847,678 | ||||||
1,411 | Biglari Holdings, Inc.(b) | 601,975 | ||||||
27,601 | BJ’s Restaurants, Inc.(b) | 1,244,805 | ||||||
35,637 | Black Diamond, Inc.(b) | 187,094 | ||||||
31,515 | Bob Evans Farms, Inc. | 2,103,311 | ||||||
24,033 | Boot Barn Holdings, Inc.(b)(c) | 254,990 | ||||||
117,335 | Boyd Gaming Corp.(b) | 2,661,158 | ||||||
75,486 | Bravo Brio Restaurant Group, Inc.(b) | 366,107 | ||||||
47,464 | Bridgepoint Education, Inc.(b) | 579,061 | ||||||
24,586 | Bright Horizons Family Solutions, Inc.(b) | 1,871,486 | ||||||
105,988 | Buckle, Inc. (The)(c) | 1,981,976 | ||||||
14,683 | Buffalo Wild Wings, Inc.(b) | 2,313,307 | ||||||
35,431 | Build-A-Bear Workshop, Inc.(b) | 368,482 | ||||||
2,227 | Cable One, Inc. | 1,518,502 | ||||||
77,957 | Caleres, Inc. | 2,246,721 | ||||||
75,750 | Callaway Golf Co. | 897,637 | ||||||
9,104 | Capella Education Co. | 867,611 | ||||||
122,195 | Career Education Corp.(b) | 1,240,279 | ||||||
13,552 | Carriage Services, Inc. | 370,647 | ||||||
37,313 | Carrols Restaurant Group, Inc.(b) | 522,382 | ||||||
34,615 | Carter’s, Inc. | 3,185,965 | ||||||
57,022 | Cato Corp. (The), Class A | 1,286,416 | ||||||
7,032 | Cavco Industries, Inc.(b) | 835,050 | ||||||
30,062 | Century Casinos, Inc.(b) | 247,410 | ||||||
24,415 | Century Communities, Inc.(b) | 666,529 | ||||||
36,636 | Cheesecake Factory, Inc. (The) | 2,350,566 | ||||||
51,933 | Chegg, Inc.(b)(c) | 467,916 | ||||||
207,180 | Chico’s FAS, Inc. | 2,863,228 | ||||||
14,233 | Children’s Place, Inc. (The) | 1,633,948 | ||||||
31,036 | Choice Hotels International, Inc. | 1,945,957 | ||||||
196,911 | Christopher & Banks Corp.(b) | 242,201 | ||||||
8,156 | Churchill Downs, Inc. | 1,360,421 | ||||||
11,912 | Chuy’s Holdings, Inc.(b) | 354,978 | ||||||
30,128 | Citi Trends, Inc. | 566,105 | ||||||
56,028 | Clear Channel Outdoor Holdings, Inc., Class A | 288,544 | ||||||
67,419 | ClubCorp Holdings, Inc. | 906,786 | ||||||
9,397 | Collectors Universe, Inc. | 256,632 | ||||||
19,826 | Columbia Sportswear Co. | 1,122,548 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Discretionary (continued) | ||||||||
118,476 | Conn’s, Inc.(b)(c) | $ | 2,085,178 | |||||
69,848 | Container Store Group, Inc. (The)(b)(c) | 287,774 | ||||||
23,492 | Cooper-Standard Holdings, Inc.(b) | 2,656,240 | ||||||
182,641 | Crocs, Inc.(b) | 1,137,853 | ||||||
20,415 | CSS Industries, Inc. | 538,139 | ||||||
10,840 | Culp, Inc. | 347,964 | ||||||
17,125 | Dave & Buster’s Entertainment, Inc.(b) | 1,096,171 | ||||||
31,073 | Del Frisco’s Restaurant Group, Inc.(b) | 534,456 | ||||||
26,582 | Del Taco Restaurants, Inc.(b) | 349,553 | ||||||
46,675 | Denny’s Corp.(b) | 592,772 | ||||||
53,317 | Destination Maternity Corp.(b) | 182,344 | ||||||
31,081 | DineEquity, Inc. | 1,757,320 | ||||||
15,397 | Domino’s Pizza, Inc. | 2,792,862 | ||||||
12,819 | Dorman Products, Inc.(b) | 1,065,900 | ||||||
253,561 | Drive Shack, Inc. | 1,034,529 | ||||||
42,309 | Dunkin’ Brands Group, Inc. | 2,363,381 | ||||||
50,076 | E.W. Scripps Co. (The), Class A(b) | 1,115,693 | ||||||
27,177 | El Pollo Loco Holdings, Inc.(b) | 341,071 | ||||||
36,487 | Eldorado Resorts, Inc.(b)(c) | 697,814 | ||||||
81,568 | Entravision Communications Corp., Class A | 505,722 | ||||||
53,399 | Eros International PLC (India)(b)(c) | 531,320 | ||||||
34,665 | Ethan Allen Interiors, Inc. | 1,033,017 | ||||||
35,316 | Etsy, Inc.(b) | 380,000 | ||||||
105,301 | Extended Stay America, Inc. | 1,836,449 | ||||||
31,893 | Fiesta Restaurant Group, Inc.(b) | 776,595 | ||||||
109,610 | Finish Line, Inc. (The), Class A | 1,732,934 | ||||||
19,964 | Five Below, Inc.(b) | 980,632 | ||||||
7,682 | Flexsteel Industries, Inc. | 408,068 | ||||||
12,067 | Fox Factory Holding Corp.(b) | 362,613 | ||||||
34,644 | Francesca’s Holdings Corp.(b) | 546,682 | ||||||
77,482 | Fred’s, Inc., Class A(c) | 1,140,535 | ||||||
35,548 | FTD Cos., Inc.(b) | 710,960 | ||||||
32,628 | Gentherm, Inc.(b) | 1,212,130 | ||||||
77,045 | G-III Apparel Group Ltd.(b) | 1,825,966 | ||||||
52,456 | Global Eagle Entertainment, Inc.(b)(c) | 162,614 | ||||||
117,719 | GoPro, Inc., Class A(b)(c) | 971,182 | ||||||
27,376 | Grand Canyon Education, Inc.(b) | 2,057,580 | ||||||
96,133 | Gray Television, Inc.(b) | 1,408,348 | ||||||
33,026 | Green Brick Partners, Inc.(b) | 340,168 | ||||||
372,627 | Groupon, Inc., Class A(b) | 1,460,698 | ||||||
137,301 | Harte-Hanks, Inc.(b) | 186,729 | ||||||
37,222 | Haverty Furniture Cos., Inc. | 917,522 | ||||||
24,961 | Helen of Troy Ltd.(b) | 2,346,334 | ||||||
47,278 | Hibbett Sports, Inc.(b)(c) | 1,229,228 | ||||||
43,746 | Hilton Grand Vacations, Inc.(b) | 1,464,179 | ||||||
10,890 | Hooker Furniture Corp. | 473,170 | ||||||
21,655 | Horizon Global Corp.(b) | 305,119 | ||||||
186,861 | Houghton Mifflin Harcourt Co.(b) | 2,148,901 | ||||||
438,452 | Hovnanian Enterprises, Inc., Class A(b)(c) | 1,025,978 | ||||||
17,715 | Hyatt Hotels Corp., Class A(b) | 983,182 | ||||||
135,336 | Iconix Brand Group, Inc.(b) | 947,352 | ||||||
64,421 | Ilg, Inc. | 1,553,190 | ||||||
39,159 | IMAX Corp.(b) | 1,194,349 | ||||||
7,817 | Installed Building Products, Inc.(b) | 417,037 | ||||||
30,126 | International Speedway Corp., Class A | 1,117,675 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 27 |
|
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Discretionary (continued) | ||||||||
13,493 | Intrawest Resorts Holdings, Inc.(b) | $ | 318,165 | |||||
17,216 | iRobot Corp.(b) | 1,372,804 | ||||||
31,578 | Isle of Capri Casinos, Inc.(b)(c) | 728,189 | ||||||
24,976 | J. Alexander’s Holdings, Inc.(b) | 274,736 | ||||||
15,264 | Jack in the Box, Inc. | 1,556,470 | ||||||
86,054 | JAKKS Pacific, Inc.(b)(c) | 421,665 | ||||||
49,327 | John Wiley & Sons, Inc., Class A | 2,599,533 | ||||||
6,884 | Johnson Outdoors, Inc., Class A | 250,027 | ||||||
70,286 | K12, Inc.(b) | 1,324,891 | ||||||
56,710 | Kandi Technologies Group, Inc. (China)(b)(c) | 232,511 | ||||||
52,169 | Kate Spade & Co.(b) | 907,741 | ||||||
143,929 | KB Home(c) | 2,964,937 | ||||||
44,541 | Kirkland’s, Inc.(b) | 523,802 | ||||||
130,857 | La Quinta Holdings, Inc.(b) | 1,846,392 | ||||||
48,288 | Lands’ End, Inc.(b)(c) | 1,139,597 | ||||||
55,380 | La-Z-Boy, Inc. | 1,545,102 | ||||||
16,218 | LCI Industries(c) | 1,640,451 | ||||||
15,886 | LGI Homes, Inc.(b)(c) | 505,651 | ||||||
50,310 | Libbey, Inc. | 528,255 | ||||||
24,232 | Liberty Expedia Holdings, Inc., Class A(b) | 1,170,648 | ||||||
140,540 | Liberty TripAdvisor Holdings, Inc., Series A(b) | 2,065,938 | ||||||
45,833 | Liberty Ventures, Series A(b) | 2,468,107 | ||||||
15,958 | Lifetime Brands, Inc. | 306,394 | ||||||
24,603 | Lions Gate Entertainment Corp., Class A | 643,861 | ||||||
48,584 | Lions Gate Entertainment Corp., Class B(b) | 1,158,728 | ||||||
12,123 | Loral Space & Communications, Inc.(b) | 464,917 | ||||||
40,665 | Lululemon Athletica, Inc.(b) | 2,114,580 | ||||||
75,441 | Lumber Liquidators Holdings, Inc.(b)(c) | 1,852,077 | ||||||
60,289 | M/I Homes, Inc.(b) | 1,637,449 | ||||||
11,269 | Madison Square Garden Co. (The), Class A(b) | 2,273,746 | ||||||
6,729 | MakeMyTrip Ltd. (India)(b)(c) | 258,394 | ||||||
8,642 | Malibu Boats, Inc., Class A(b) | 199,112 | ||||||
21,724 | Marcus Corp. (The) | 734,271 | ||||||
31,700 | MarineMax, Inc.(b) | 645,095 | ||||||
13,392 | Marriott Vacations Worldwide Corp. | 1,475,531 | ||||||
71,773 | MDC Holdings, Inc. | 2,225,681 | ||||||
113,649 | MDC Partners, Inc., Class A(c) | 1,017,159 | ||||||
81,806 | Meritage Homes Corp.(b) | 3,186,344 | ||||||
142,362 | Michaels Cos., Inc. (The)(b) | 3,325,576 | ||||||
121,863 | Modine Manufacturing Co.(b) | 1,474,542 | ||||||
12,284 | Monarch Casino & Resort, Inc.(b) | 362,009 | ||||||
23,610 | Monro Muffler Brake, Inc.(c) | 1,224,179 | ||||||
17,851 | Motorcar Parts of America, Inc.(b) | 541,242 | ||||||
27,984 | Movado Group, Inc. | 654,826 | ||||||
43,894 | MSG Networks, Inc., Class A(b) | 1,095,155 | ||||||
9,277 | NACCO Industries, Inc., Class A | 785,298 | ||||||
5,372 | Nathan’s Famous, Inc.(b) | 366,370 | ||||||
143,677 | National CineMedia, Inc. | 1,705,446 | ||||||
21,596 | Nautilus, Inc.(b) | 393,047 | ||||||
19,381 | New Home Co., Inc. (The)(b) | 225,982 | ||||||
78,410 | New Media Investment Group, Inc. | 1,031,876 | ||||||
122,286 | New York Times Co. (The), Class A | 1,767,033 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Discretionary (continued) | ||||||||
10,231 | Nexstar Media Group, Inc., Class A | $ | 705,939 | |||||
18,360 | Nutrisystem, Inc. | 981,342 | ||||||
32,274 | Ollie’s Bargain Outlet Holdings, Inc.(b) | 1,236,094 | ||||||
30,855 | Overstock.com, Inc.(b) | 535,334 | ||||||
22,412 | Oxford Industries, Inc. | 1,299,448 | ||||||
11,976 | Papa John’s International, Inc. | 946,823 | ||||||
41,862 | Party City Holdco, Inc.(b)(c) | 669,792 | ||||||
119,094 | Penn National Gaming, Inc.(b) | 2,200,857 | ||||||
36,321 | Perry Ellis International, Inc.(b) | 745,307 | ||||||
25,162 | PetMed Express, Inc.(c) | 581,242 | ||||||
285,355 | Pier 1 Imports, Inc. | 1,923,293 | ||||||
12,727 | Planet Fitness, Inc., Class A | 264,722 | ||||||
19,305 | Pool Corp. | 2,309,264 | ||||||
29,090 | Potbelly Corp.(b) | 405,806 | ||||||
16,133 | RCI Hospitality Holdings, Inc. | 268,453 | ||||||
19,990 | Reading International, Inc., Class A(b) | 314,443 | ||||||
24,091 | Red Robin Gourmet Burgers, Inc.(b) | 1,415,346 | ||||||
30,059 | Red Rock Resorts, Inc., Class A | 702,779 | ||||||
117,377 | Regis Corp.(b) | 1,280,583 | ||||||
354,549 | Rent-A-Center, Inc.(c) | 3,790,129 | ||||||
65,322 | RH(b)(c) | 3,133,496 | ||||||
572,510 | Ruby Tuesday, Inc.(b) | 1,459,901 | ||||||
24,152 | Ruth’s Hospitality Group, Inc. | 480,625 | ||||||
26,523 | Salem Media Group, Inc. | 202,901 | ||||||
51,367 | Scholastic Corp. | 2,220,595 | ||||||
51,001 | Scientific Games Corp., Class A(b) | 1,211,274 | ||||||
83,897 | Sears Hometown and Outlet Stores, Inc.(b)(c) | 281,055 | ||||||
62,053 | Select Comfort Corp.(b) | 1,917,438 | ||||||
79,568 | Sequential Brands Group, Inc.(b)(c) | 268,144 | ||||||
28,811 | Shoe Carnival, Inc. | 730,935 | ||||||
32,002 | Shutterfly, Inc.(b) | 1,660,904 | ||||||
74,834 | Sinclair Broadcast Group, Inc., Class A | 2,952,201 | ||||||
462,501 | Sirius XM Holdings, Inc.(c) | 2,289,380 | ||||||
108,450 | Skechers U.S.A., Inc., Class A(b) | 2,738,363 | ||||||
17,074 | SodaStream International Ltd. (Israel)(b)(c) | 928,655 | ||||||
26,554 | Sonic Corp. | 713,772 | ||||||
70,442 | Sotheby’s(b)(c) | 3,336,133 | ||||||
22,347 | Speedway Motorsports, Inc. | 403,363 | ||||||
71,417 | Sportsman’s Warehouse Holdings, Inc.(b)(c) | 292,096 | ||||||
624,344 | Stage Stores, Inc.(c) | 1,798,111 | ||||||
24,004 | Standard Motor Products, Inc. | 1,220,123 | ||||||
376,922 | Stein Mart, Inc. | 930,997 | ||||||
64,052 | Steven Madden Ltd.(b) | 2,437,179 | ||||||
42,027 | Stoneridge, Inc.(b) | 824,149 | ||||||
8,944 | Strattec Security Corp. | 287,550 | ||||||
13,040 | Strayer Education, Inc. | 1,130,698 | ||||||
31,484 | Sturm Ruger & Co., Inc.(c) | 1,903,208 | ||||||
43,013 | Superior Industries International, Inc. | 935,533 | ||||||
86,121 | Tailored Brands, Inc.(c) | 1,061,872 | ||||||
55,264 | Taylor Morrison Home Corp., Class A(b) | 1,276,598 | ||||||
6,794 | Tesla, Inc.(b)(c) | 2,133,792 | ||||||
37,256 | Texas Roadhouse, Inc. | 1,746,561 | ||||||
16,009 | Tile Shop Holdings, Inc. | 341,792 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Discretionary (continued) | ||||||||
26,020 | Tilly’s, Inc., Class A | $ | 248,751 | |||||
61,120 | TopBuild Corp.(b) | 3,128,733 | ||||||
75,296 | Tower International, Inc. | 2,040,522 | ||||||
47,626 | Townsquare Media, Inc., Class A(b) | 576,275 | ||||||
200,916 | TRI Pointe Group, Inc.(b) | 2,501,404 | ||||||
53,729 | TripAdvisor, Inc.(b) | 2,418,342 | ||||||
80,499 | tronc, Inc.(b) | 1,154,356 | ||||||
202,433 | Tuesday Morning Corp.(b) | 657,907 | ||||||
30,814 | Unifi, Inc.(b) | 864,949 | ||||||
10,864 | Universal Electronics, Inc.(b) | 752,875 | ||||||
62,252 | Universal Technical Institute, Inc.(b) | 225,352 | ||||||
14,809 | Vail Resorts, Inc. | 2,927,147 | ||||||
47,744 | Vera Bradley, Inc.(b) | 436,858 | ||||||
102,435 | Vince Holding Corp.(b)(c) | 102,435 | ||||||
78,290 | Vitamin Shoppe, Inc.(b) | 1,510,997 | ||||||
145,454 | VOXX International Corp.(b) | 945,451 | ||||||
8,182 | Wayfair, Inc., Class A(b)(c) | 373,999 | ||||||
90,638 | Weight Watchers International, Inc.(b)(c) | 1,892,521 | ||||||
212,035 | Wendy’s Co. (The) | 3,125,396 | ||||||
11,866 | Weyco Group, Inc. | 331,773 | ||||||
66,408 | William Lyon Homes, Class A(b)(c) | 1,460,976 | ||||||
11,553 | Wingstop, Inc.(c) | 340,005 | ||||||
18,751 | Winnebago Industries, Inc. | 538,154 | ||||||
124,982 | Wolverine World Wide, Inc. | 3,013,316 | ||||||
27,303 | World Wrestling Entertainment, Inc., Class A(c) | 585,103 | ||||||
63,905 | ZAGG, Inc.(b) | 453,726 | ||||||
10,537 | Zoe’s Kitchen, Inc.(b)(c) | 190,193 | ||||||
39,828 | Zumiez, Inc.(b) | 714,913 | ||||||
|
| |||||||
281,722,039 | ||||||||
|
| |||||||
Consumer Staples—3.2% | ||||||||
72,181 | Adecoagro SA (Argentina)(b) | 800,487 | ||||||
14,081 | AdvancePierre Foods Holdings, Inc. | 571,970 | ||||||
29,599 | Alliance One International, Inc.(b) | 406,986 | ||||||
42,928 | Amira Nature Foods Ltd. (United Arab Emirates)(b)(c) | 222,796 | ||||||
49,588 | B&G Foods, Inc.(c) | 2,082,696 | ||||||
51,839 | Blue Buffalo Pet Products, Inc.(b) | 1,277,831 | ||||||
5,370 | Boston Beer Co., Inc. (The), Class A(b)(c) | 775,160 | ||||||
10,824 | Calavo Growers, Inc. | 710,054 | ||||||
40,804 | Cal-Maine Foods, Inc.(c) | 1,540,351 | ||||||
12,055 | Central Garden & Pet Co.(b)(c) | 455,679 | ||||||
40,434 | Central Garden & Pet Co., Class A(b) | 1,424,490 | ||||||
37,290 | Chefs’ Warehouse, Inc. (The)(b) | 509,009 | ||||||
4,792 | Coca-Cola Bottling Co. Consolidated | 1,015,233 | ||||||
153,008 | Coty, Inc., Class A | 2,731,193 | ||||||
12,175 | Craft Brew Alliance, Inc.(b) | 165,580 | ||||||
34,378 | Energizer Holdings, Inc. | 2,036,209 | ||||||
5,756 | Farmer Brothers Co.(b) | 204,338 | ||||||
46,858 | Fresh Del Monte Produce, Inc. | 2,872,395 | ||||||
41,133 | Ingles Markets, Inc., Class A | 1,920,911 | ||||||
19,737 | Inter Parfums, Inc. | 749,019 | ||||||
37,896 | Inventure Foods, Inc.(b)(c) | 140,215 | ||||||
9,127 | J & J Snack Foods Corp. | 1,228,312 | ||||||
10,693 | John B. Sanfilippo & Son, Inc. | 785,936 | ||||||
15,456 | Lancaster Colony Corp. | 1,945,910 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Staples (continued) | ||||||||
44,326 | Landec Corp.(b) | $ | 609,483 | |||||
8,773 | Medifast, Inc. | 406,365 | ||||||
5,401 | MGP Ingredients, Inc.(c) | 282,796 | ||||||
4,973 | National Beverage Corp. | 440,558 | ||||||
15,468 | Natural Grocers by Vitamin Cottage, Inc.(b)(c) | 169,220 | ||||||
9,294 | Nutraceutical International Corp. | 294,620 | ||||||
28,054 | Omega Protein Corp. | 565,288 | ||||||
11,716 | Orchids Paper Products Co.(c) | 285,285 | ||||||
112,742 | Pilgrim’s Pride Corp. | 2,926,782 | ||||||
17,846 | PriceSmart, Inc. | 1,551,710 | ||||||
14,780 | Revlon, Inc., Class A(b) | 383,541 | ||||||
28,923 | Sanderson Farms, Inc. | 3,348,705 | ||||||
26,664 | Seneca Foods Corp., Class A(b) | 991,901 | ||||||
73,002 | Smart & Final Stores, Inc.(b)(c) | 861,424 | ||||||
60,347 | Snyder’s-Lance, Inc. | 2,127,835 | ||||||
18,519 | Spectrum Brands Holdings, Inc. | 2,661,736 | ||||||
191,321 | SunOpta, Inc. (Canada)(b)(c) | 1,396,643 | ||||||
36,479 | Synutra International, Inc.(b) | 219,786 | ||||||
12,601 | Tootsie Roll Industries, Inc.(c) | 470,647 | ||||||
9,264 | USANA Health Sciences, Inc.(b) | 526,658 | ||||||
107,915 | Vector Group Ltd. | 2,343,914 | ||||||
23,021 | Village Super Market, Inc., Class A | 607,524 | ||||||
6,576 | WD-40 Co. | 689,494 | ||||||
24,534 | Weis Markets, Inc. | 1,418,311 | ||||||
|
| |||||||
52,152,986 | ||||||||
|
| |||||||
Energy—5.8% | ||||||||
200,385 | Alon USA Energy, Inc. | 2,422,655 | ||||||
269,032 | Approach Resources, Inc.(b)(c) | 556,896 | ||||||
118,281 | Archrock, Inc. | 1,395,716 | ||||||
46,695 | Ardmore Shipping Corp. (Ireland) | 361,886 | ||||||
245,105 | Bill Barrett Corp.(b) | 941,203 | ||||||
272,720 | Bonanza Creek Energy, Inc.(b)(c) | 137,724 | ||||||
166,318 | Bristow Group, Inc. | 2,223,672 | ||||||
35,642 | Callon Petroleum Co.(b) | 422,001 | ||||||
84,245 | CARBO Ceramics, Inc.(b)(c) | 578,763 | ||||||
33,575 | Carrizo Oil & Gas, Inc.(b) | 844,411 | ||||||
182,715 | Clean Energy Fuels Corp.(b) | 445,825 | ||||||
468,898 | Cloud Peak Energy, Inc.(b) | 1,580,186 | ||||||
1,552,674 | Cobalt International Energy, Inc.(b) | 607,251 | ||||||
39,065 | Comstock Resources, Inc.(b)(c) | 341,428 | ||||||
56,192 | Contango Oil & Gas Co.(b) | 402,335 | ||||||
22,916 | Core Laboratories NV(c) | 2,539,551 | ||||||
110,778 | CVR Energy, Inc.(c) | 2,424,930 | ||||||
908,565 | Denbury Resources, Inc.(b) | 2,017,014 | ||||||
226,792 | DHT Holdings, Inc. | 1,086,334 | ||||||
21,736 | Diamondback Energy, Inc.(b) | 2,170,122 | ||||||
55,997 | Dorian LPG Ltd.(b) | 509,013 | ||||||
41,766 | Dril-Quip, Inc.(b) | 2,153,037 | ||||||
96,823 | Eclipse Resources Corp.(b) | 194,614 | ||||||
127,356 | EP Energy Corp., Class A(b)(c) | 575,649 | ||||||
62,416 | Era Group, Inc.(b) | 793,307 | ||||||
624,050 | EXCO Resources, Inc.(b) | 305,785 | ||||||
84,048 | Exterran Corp.(b) | 2,300,394 | ||||||
94,982 | Fairmount Santrol Holdings, Inc.(b)(c) | 490,107 | ||||||
102,115 | Forum Energy Technologies, Inc.(b) | 1,725,744 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Energy (continued) | ||||||||
42,626 | Frank’s International NV(c) | $ | 387,897 | |||||
112,516 | Frontline Ltd. (Norway)(c) | 748,231 | ||||||
48,312 | GasLog Ltd. (Monaco)(c) | 676,368 | ||||||
349,364 | Gener8 Maritime, Inc.(b) | 1,876,085 | ||||||
34,011 | Geospace Technologies Corp.(b) | 562,542 | ||||||
109,536 | Golar LNG Ltd. (Bermuda)(c) | 2,794,263 | ||||||
110,248 | Green Plains, Inc. | 2,535,704 | ||||||
40,227 | Gulf Island Fabrication, Inc. | 400,259 | ||||||
124,863 | Gulfport Energy Corp.(b) | 1,982,824 | ||||||
36,537 | Halcon Resources Corp.(b) | 244,798 | ||||||
27,367 | Hallador Energy Co. | 183,085 | ||||||
249,076 | Helix Energy Solutions Group, Inc.(b) | 1,524,345 | ||||||
531,114 | Hornbeck Offshore Services, Inc.(b)(c) | 1,811,099 | ||||||
38,139 | Independence Contract Drilling, Inc.(b) | 175,821 | ||||||
117,219 | ION Geophysical Corp.(b)(c) | 504,042 | ||||||
216,848 | Jones Energy, Inc., Class A(b)(c) | 433,696 | ||||||
193,557 | Kosmos Energy Ltd.(b) | 1,163,278 | ||||||
28,611 | Laredo Petroleum, Inc.(b) | 367,938 | ||||||
15,770 | Matador Resources Co.(b) | 341,894 | ||||||
64,970 | Matrix Service Co.(b) | 763,398 | ||||||
14,867 | Natural Gas Services Group, Inc.(b) | 407,356 | ||||||
58,073 | Navigator Holdings Ltd. (United Kingdom)(b)(c) | 699,780 | ||||||
322,934 | Navios Maritime Acquisition Corp. | 545,758 | ||||||
207,927 | Newpark Resources, Inc.(b) | 1,590,642 | ||||||
248,962 | Nordic American Tankers Ltd.(c) | 2,066,385 | ||||||
144,204 | North Atlantic Drilling Ltd. (Norway)(b)(c) | 364,836 | ||||||
1,978,755 | Ocean Rig UDW, Inc. (Cyprus)(b) | 399,709 | ||||||
233,722 | Pacific Drilling SA(b)(c) | 397,327 | ||||||
125,995 | Pacific Ethanol, Inc.(b)(c) | 856,766 | ||||||
51,852 | Par Pacific Holdings, Inc.(b)(c) | 848,817 | ||||||
451,282 | Parker Drilling Co.(b) | 744,615 | ||||||
41,998 | Parsley Energy, Inc., Class A(b) | 1,251,120 | ||||||
33,349 | PDC Energy, Inc.(b) | 1,841,865 | ||||||
32,727 | PHI, Inc.(b) | 383,888 | ||||||
262,668 | Pioneer Energy Services Corp.(b) | 801,137 | ||||||
182,478 | Renewable Energy Group, Inc.(b) | 1,906,895 | ||||||
9,049 | REX American Resources Corp.(b) | 856,759 | ||||||
67,444 | Rice Energy, Inc.(b) | 1,435,883 | ||||||
16,939 | RigNet, Inc.(b) | 332,004 | ||||||
17,956 | Ring Energy, Inc.(b) | 215,472 | ||||||
63,423 | RPC, Inc.(c) | 1,152,396 | ||||||
41,909 | RSP Permian, Inc.(b) | 1,594,637 | ||||||
16,018 | Sanchez Energy Corp.(b)(c) | 123,979 | ||||||
561,361 | Scorpio Tankers, Inc. (Monaco) | 2,469,988 | ||||||
32,184 | SEACOR Holdings, Inc.(b) | 2,113,201 | ||||||
61,416 | SemGroup Corp., Class A | 2,045,153 | ||||||
144,018 | Ship Finance International Ltd. (Norway)(c) | 2,023,453 | ||||||
85,728 | Src Energy, Inc.(b) | 646,389 | ||||||
180,794 | Stone Energy Corp.(b) | 3,785,826 | ||||||
415,304 | Teekay Tankers Ltd., Class A (Bermuda) | 851,373 | ||||||
91,469 | Tesco Corp.(b) | 599,122 | ||||||
285,885 | TETRA Technologies, Inc.(b) | 951,997 | ||||||
298,744 | Tsakos Energy Navigation Ltd. (Greece)(c) | 1,371,235 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Energy (continued) | ||||||||
107,897 | Unit Corp.(b) | $ | 2,318,707 | |||||
23,210 | US Silica Holdings, Inc. | 963,215 | ||||||
363,658 | W&T Offshore, Inc.(b)(c) | 741,862 | ||||||
45,783 | Westmoreland Coal Co.(b) | 488,047 | ||||||
159,065 | Willbros Group, Inc.(b) | 437,429 | ||||||
|
| |||||||
94,650,143 | ||||||||
|
| |||||||
Financials—17.3% | ||||||||
16,846 | 1st Source Corp. | 813,830 | ||||||
62,961 | AG Mortgage Investment Trust, Inc. REIT | 1,193,111 | ||||||
10,607 | Allegiance Bancshares, Inc.(b) | 414,203 | ||||||
14,256 | A-Mark Precious Metals, Inc. | 251,048 | ||||||
18,437 | American National Insurance Co. | 2,155,654 | ||||||
15,013 | Ameris Bancorp | 707,112 | ||||||
16,746 | AMERISAFE, Inc. | 963,732 | ||||||
86,034 | AmTrust Financial Services, Inc.(c) | 1,380,846 | ||||||
298,945 | Anworth Mortgage Asset Corp. REIT | 1,751,818 | ||||||
87,046 | Apollo Commercial Real Estate Finance, Inc. REIT | 1,679,117 | ||||||
53,055 | Ares Commercial Real Estate Corp. REIT | 733,751 | ||||||
42,209 | Argo Group International Holdings Ltd. | 2,783,684 | ||||||
43,744 | Arlington Asset Investment Corp., Class A(c) | 636,913 | ||||||
49,664 | ARMOUR Residential REIT, Inc. REIT | 1,195,412 | ||||||
12,352 | Arrow Financial Corp. | 423,056 | ||||||
27,311 | Artisan Partners Asset Management, Inc., Class A | 800,212 | ||||||
107,409 | Astoria Financial Corp. | 2,190,070 | ||||||
12,232 | Atlas Financial Holdings, Inc.(b) | 158,404 | ||||||
22,339 | Baldwin & Lyons, Inc., Class B | 547,305 | ||||||
44,693 | Banc of California, Inc.(c) | 969,838 | ||||||
6,412 | BancFirst Corp. | 615,873 | ||||||
56,870 | Banco Latinoamericano de Comercio Exterior SA, Class E (Panama) | 1,631,032 | ||||||
95,060 | Bancorp, Inc. (The)(b) | 613,137 | ||||||
69,094 | BancorpSouth, Inc. | 2,103,912 | ||||||
35,888 | Bank Mutual Corp. | 330,170 | ||||||
9,322 | Bank of NT Butterfield & Son Ltd. (The) (Bermuda) | 309,957 | ||||||
34,555 | Bank of the Ozarks, Inc. | 1,640,326 | ||||||
13,202 | BankFinancial Corp. | 195,126 | ||||||
26,094 | Banner Corp. | 1,440,389 | ||||||
85,265 | Beneficial Bancorp, Inc. | 1,364,240 | ||||||
29,653 | Berkshire Hills Bancorp, Inc. | 1,111,987 | ||||||
233,921 | BGC Partners, Inc., Class A | 2,662,021 | ||||||
13,166 | Blue Capital Reinsurance Holdings Ltd. (Bermuda) | 248,837 | ||||||
17,508 | Blue Hills Bancorp, Inc. | 316,895 | ||||||
17,852 | BNC Bancorp | 597,149 | ||||||
30,609 | BofI Holding, Inc.(b)(c) | 731,249 | ||||||
24,389 | BOK Financial Corp. | 2,055,749 | ||||||
76,617 | Boston Private Financial Holdings, Inc. | 1,195,225 | ||||||
12,751 | Bridge Bancorp, Inc. | 462,224 | ||||||
80,042 | Brookline Bancorp, Inc. | 1,164,611 | ||||||
15,347 | Bryn Mawr Bank Corp. | 658,386 | ||||||
14,280 | Camden National Corp. | 610,470 | ||||||
18,721 | Capital Bank Financial Corp., Class A | 776,921 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
242,313 | Capstead Mortgage Corp. REIT | $ | 2,699,367 | |||||
58,796 | Cathay General Bancorp | 2,237,188 | ||||||
32,497 | CBOE Holdings, Inc. | 2,678,078 | ||||||
21,339 | Centerstate Banks, Inc. | 538,383 | ||||||
23,872 | Central Pacific Financial Corp. | 746,716 | ||||||
14,460 | Charter Financial Corp. | 265,341 | ||||||
32,896 | Chemical Financial Corp. | 1,560,915 | ||||||
12,691 | Cherry Hill Mortgage Investment Corp. REIT | 220,696 | ||||||
15,156 | City Holding Co. | 1,077,440 | ||||||
23,239 | Clifton Bancorp, Inc. | 388,091 | ||||||
57,853 | CNA Financial Corp. | 2,618,427 | ||||||
23,759 | CoBiz Financial, Inc. | 390,360 | ||||||
20,728 | Cohen & Steers, Inc. | 827,047 | ||||||
55,187 | Columbia Banking System, Inc. | 2,180,438 | ||||||
34,507 | Community Bank System, Inc. | 1,930,667 | ||||||
17,768 | Community Trust Bancorp, Inc. | 798,672 | ||||||
21,155 | ConnectOne Bancorp, Inc. | 469,641 | ||||||
62,009 | Cowen Group, Inc., Class A(b)(c) | 985,943 | ||||||
27,349 | Crawford & Co., Class B | 298,378 | ||||||
6,153 | Credit Acceptance Corp.(b)(c) | 1,250,597 | ||||||
9,669 | CU Bancorp(b) | 360,412 | ||||||
22,402 | Customers Bancorp, Inc.(b) | 692,894 | ||||||
72,336 | CVB Financial Corp. | 1,558,117 | ||||||
364,979 | CYS Investments, Inc. REIT | 3,113,271 | ||||||
2,234 | Diamond Hill Investment Group, Inc. | 451,603 | ||||||
38,838 | Dime Community Bancshares, Inc. | 755,399 | ||||||
16,742 | Donegal Group, Inc., Class A | 278,922 | ||||||
85,584 | Donnelley Financial Solutions, Inc.(b) | 1,901,676 | ||||||
140,970 | Dynex Capital, Inc. REIT | 975,512 | ||||||
17,523 | Eagle Bancorp, Inc.(b) | 1,049,628 | ||||||
19,902 | eHealth, Inc.(b) | 282,210 | ||||||
14,157 | EMC Insurance Group, Inc. | 406,023 | ||||||
35,984 | Employers Holdings, Inc. | 1,439,360 | ||||||
50,021 | Encore Capital Group, Inc.(b)(c) | 1,668,200 | ||||||
67,679 | Enova International, Inc.(b) | 961,042 | ||||||
14,974 | Enstar Group Ltd. (Bermuda)(b) | 2,916,935 | ||||||
12,588 | Enterprise Financial Services Corp. | 531,843 | ||||||
25,571 | Essent Group Ltd.(b) | 946,383 | ||||||
142,332 | EverBank Financial Corp. | 2,775,474 | ||||||
21,711 | Evercore Partners, Inc., Class A | 1,601,186 | ||||||
190,283 | EZCORP, Inc., Class A(b) | 1,722,061 | ||||||
14,548 | FactSet Research Systems, Inc. | 2,375,106 | ||||||
16,540 | FBL Financial Group, Inc., Class A | 1,099,910 | ||||||
13,695 | FBR & Co. | 247,879 | ||||||
19,952 | FCB Financial Holdings, Inc., Class A(b) | 942,732 | ||||||
10,538 | Federal Agricultural Mortgage Corp., Class C | 601,193 | ||||||
16,130 | Federated National Holding Co. | 259,370 | ||||||
19,295 | Fidelity & Guaranty Life(c) | 548,943 | ||||||
19,108 | Fidelity Southern Corp. | 430,312 | ||||||
15,648 | Financial Engines, Inc. | 665,040 | ||||||
16,124 | Financial Institutions, Inc. | 540,154 | ||||||
308,087 | First BanCorp/Puerto Rico(b) | 1,811,552 | ||||||
19,361 | First Bancorp/Southern Pines NC | 581,604 | ||||||
21,319 | First Busey Corp. | 638,504 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
6,034 | First Citizens BancShares, Inc., Class A | $ | 2,100,194 | |||||
82,730 | First Commonwealth Financial Corp. | 1,068,044 | ||||||
20,062 | First Community Bancshares, Inc. | 530,841 | ||||||
9,335 | First Defiance Financial Corp. | 500,729 | ||||||
72,979 | First Financial Bancorp | 2,017,869 | ||||||
35,312 | First Financial Bankshares, Inc.(c) | 1,410,714 | ||||||
12,577 | First Financial Corp. | 613,758 | ||||||
21,830 | First Hawaiian, Inc. | 649,879 | ||||||
18,908 | First Interstate BancSystem, Inc., Class A | 713,777 | ||||||
27,417 | First Merchants Corp. | 1,134,515 | ||||||
69,949 | First Midwest Bancorp, Inc. | 1,588,542 | ||||||
83,821 | First NBC Bank Holding Co.(b)(c) | 222,126 | ||||||
16,189 | First of Long Island Corp. (The) | 440,341 | ||||||
32,688 | Firstcash, Inc. | 1,698,142 | ||||||
61,287 | Five Oaks Investment Corp. REIT(c) | 329,111 | ||||||
29,870 | Flagstar Bancorp, Inc.(b) | 873,399 | ||||||
33,085 | Flushing Financial Corp. | 975,346 | ||||||
141,737 | FNFV Group(b) | 1,941,797 | ||||||
6,618 | Franklin Financial Network, Inc.(b) | 268,360 | ||||||
58,407 | Gain Capital Holdings, Inc. | 414,106 | ||||||
14,236 | German American Bancorp, Inc. | 468,080 | ||||||
67,596 | Glacier Bancorp, Inc. | 2,283,393 | ||||||
21,779 | Great Ajax Corp. REIT | 296,194 | ||||||
12,594 | Great Southern Bancorp, Inc. | 631,589 | ||||||
47,611 | Great Western Bancorp, Inc. | 1,961,573 | ||||||
20,615 | Green Bancorp, Inc.(b) | 371,070 | ||||||
44,795 | Green Dot Corp., Class A(b) | 1,536,021 | ||||||
48,522 | Greenhill & Co., Inc. | 1,227,607 | ||||||
41,741 | Greenlight Capital Re Ltd., Class A(b) | 899,519 | ||||||
22,796 | Hanmi Financial Corp. | 662,224 | ||||||
26,281 | Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT | 576,080 | ||||||
12,976 | HCI Group, Inc.(c) | 618,825 | ||||||
17,687 | Heartland Financial USA, Inc. | 848,976 | ||||||
27,565 | Heritage Financial Corp. | 727,716 | ||||||
53,079 | Heritage Insurance Holdings, Inc. | 642,256 | ||||||
74,762 | Hilltop Holdings, Inc. | 2,079,131 | ||||||
60,251 | Home BancShares, Inc. | 1,533,388 | ||||||
23,937 | HomeStreet, Inc.(b) | 622,362 | ||||||
17,396 | HomeTrust Bancshares, Inc.(b) | 434,900 | ||||||
70,214 | Hope Bancorp, Inc. | 1,285,618 | ||||||
60,288 | Horace Mann Educators Corp. | 2,330,131 | ||||||
14,533 | Horizon Bancorp | 392,246 | ||||||
7,179 | Houlihan Lokey, Inc., Class A | 240,784 | ||||||
21,694 | Impac Mortgage Holdings, Inc.(b)(c) | 310,224 | ||||||
15,949 | Independent Bank Corp. | 355,663 | ||||||
19,867 | Independent Bank Corp./MA | 1,257,581 | ||||||
6,969 | Independent Bank Group, Inc. | 419,185 | ||||||
19,525 | Infinity Property & Casualty Corp. | 1,937,856 | ||||||
14,913 | Interactive Brokers Group, Inc., Class A | 519,420 | ||||||
62,362 | International Bancshares Corp. | 2,332,339 | ||||||
20,170 | INTL FCStone, Inc.(b) | 753,349 | ||||||
31,090 | Investment Technology Group, Inc. | 619,002 | ||||||
32,441 | James River Group Holdings Ltd. | 1,413,130 | ||||||
116,385 | KCG Holdings, Inc., Class A(b) | 2,316,061 | ||||||
72,176 | Kearny Financial Corp. | 1,053,770 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
61,463 | Ladder Capital Corp., Class A REIT | $ | 899,204 | |||||
29,996 | Lakeland Bancorp, Inc. | 583,422 | ||||||
16,276 | Lakeland Financial Corp. | 743,162 | ||||||
28,115 | LegacyTexas Financial Group, Inc. | 1,063,028 | ||||||
201,133 | LendingClub Corp.(b) | 1,176,628 | ||||||
114,774 | Maiden Holdings Ltd. | 1,417,459 | ||||||
16,561 | MainSource Financial Group, Inc. | 566,386 | ||||||
5,856 | MarketAxess Holdings, Inc. | 1,127,397 | ||||||
12,858 | Marlin Business Services Corp. | 327,236 | ||||||
62,607 | MB Financial, Inc. | 2,661,424 | ||||||
16,330 | Mercantile Bank Corp. | 549,178 | ||||||
49,891 | Mercury General Corp. | 3,067,798 | ||||||
28,534 | Meridian Bancorp, Inc. | 500,772 | ||||||
4,189 | Meta Financial Group, Inc. | 355,646 | ||||||
8,765 | MidWestOne Financial Group, Inc. | 304,145 | ||||||
5,769 | Moelis & Co., Class A | 211,722 | ||||||
10,839 | Morningstar, Inc. | 792,656 | ||||||
30,833 | MSCI, Inc. | 3,093,167 | ||||||
94,215 | Mtge Investment Corp. REIT | 1,695,870 | ||||||
22,749 | National Bank Holdings Corp., Class A | 718,186 | ||||||
6,971 | National Commerce Corp.(b) | 269,778 | ||||||
46,177 | National General Holdings Corp. | 1,050,065 | ||||||
4,044 | National Western Life Group, Inc., Class A | 1,238,435 | ||||||
76,376 | Nationstar Mortgage Holdings, Inc.(b)(c) | 1,230,417 | ||||||
14,680 | Navigators Group, Inc. (The) | 793,454 | ||||||
44,265 | NBT Bancorp, Inc. | 1,690,038 | ||||||
26,220 | Nelnet, Inc., Class A | 1,180,162 | ||||||
320,829 | New York Mortgage Trust, Inc. REIT(c) | 2,056,514 | ||||||
16,658 | Newtek Business Services Corp.(c) | 275,024 | ||||||
31,813 | NMI Holdings, Inc., Class A(b) | 369,031 | ||||||
38,714 | Northfield Bancorp, Inc. | 711,563 | ||||||
149,647 | Northwest Bancshares, Inc. | 2,415,303 | ||||||
14,486 | OceanFirst Financial Corp. | 400,538 | ||||||
422,669 | Ocwen Financial Corp.(b)(c) | 967,912 | ||||||
113,676 | OFG Bancorp(c) | 1,330,009 | ||||||
135,071 | Old National Bancorp | 2,269,193 | ||||||
19,250 | OM Asset Management PLC | 299,530 | ||||||
63,973 | On Deck Capital, Inc.(b)(c) | 303,872 | ||||||
44,266 | OneBeacon Insurance Group Ltd., Class A | 706,043 | ||||||
96,174 | OneMain Holdings, Inc.(b) | 2,242,778 | ||||||
27,375 | Oppenheimer Holdings, Inc., Class A | 473,588 | ||||||
22,204 | Opus Bank | 500,700 | ||||||
19,509 | Orchid Island Capital, Inc. REIT(c) | 206,795 | ||||||
71,830 | Oritani Financial Corp. | 1,217,519 | ||||||
15,787 | Pacific Continental Corp. | 394,675 | ||||||
11,400 | Pacific Premier Bancorp, Inc.(b) | 416,670 | ||||||
16,259 | Park National Corp. | 1,714,186 | ||||||
28,435 | Park Sterling Corp. | 349,751 | ||||||
10,929 | Peapack-Gladstone Financial Corp. | 350,384 | ||||||
12,032 | PennyMac Financial Services, Inc., Class A(b) | 198,528 | ||||||
16,542 | Peoples Bancorp, Inc. | 553,826 | ||||||
35,364 | PICO Holdings, Inc.(b) | 569,360 | ||||||
17,913 | Pinnacle Financial Partners, Inc. | 1,146,432 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
19,391 | Piper Jaffray Cos. | $ | 1,213,877 | |||||
53,610 | PRA Group, Inc.(b) | 1,726,242 | ||||||
5,567 | Preferred Bank | 294,995 | ||||||
35,516 | Primerica, Inc. | 2,976,241 | ||||||
43,630 | PrivateBancorp, Inc. | 2,520,505 | ||||||
11,623 | Provident Financial Holdings, Inc. | 223,510 | ||||||
75,438 | Provident Financial Services, Inc. | 1,938,002 | ||||||
6,476 | QCR Holdings, Inc. | 295,306 | ||||||
143,162 | Redwood Trust, Inc. REIT | 2,443,775 | ||||||
24,787 | Regional Management Corp.(b) | 491,526 | ||||||
35,405 | Renasant Corp. | 1,501,172 | ||||||
15,375 | Republic Bancorp, Inc., Class A | 553,193 | ||||||
173,245 | Resource Capital Corp. REIT | 1,619,841 | ||||||
32,557 | S&T Bancorp, Inc. | 1,170,750 | ||||||
15,620 | Safeguard Scientifics, Inc.(b) | 198,374 | ||||||
23,016 | Safety Insurance Group, Inc. | 1,666,358 | ||||||
21,623 | Sandy Spring Bancorp, Inc. | 935,195 | ||||||
16,733 | Seacoast Banking Corp. of Florida(b) | 404,939 | ||||||
58,821 | SEI Investments Co. | 2,982,813 | ||||||
13,348 | ServisFirst Bancshares, Inc. | 504,554 | ||||||
9,959 | Sierra Bancorp | 249,672 | ||||||
18,788 | Simmons First National Corp., Class A | 1,026,764 | ||||||
14,137 | South State Corp. | 1,246,177 | ||||||
22,156 | Southside Bancshares, Inc. | 769,256 | ||||||
13,155 | Southwest Bancorp, Inc. | 341,372 | ||||||
26,372 | State Auto Financial Corp. | 708,616 | ||||||
24,952 | State Bank Financial Corp. | 670,211 | ||||||
25,946 | State National Cos., Inc. | 380,628 | ||||||
67,945 | Sterling Bancorp | 1,579,721 | ||||||
38,310 | Stewart Information Services Corp. | 1,817,426 | ||||||
11,733 | Stock Yards Bancorp, Inc. | 481,053 | ||||||
6,379 | Stonegate Bank | 292,796 | ||||||
8,817 | Territorial Bancorp, Inc. | 272,886 | ||||||
31,866 | Texas Capital Bancshares, Inc.(b) | 2,425,003 | ||||||
28,055 | TFS Financial Corp. | 464,030 | ||||||
77,956 | Third Point Reinsurance Ltd. (Bermuda)(b) | 943,268 | ||||||
10,895 | Tompkins Financial Corp. | 900,690 | ||||||
35,254 | TowneBank | 1,143,992 | ||||||
17,655 | TriCo Bancshares | 626,046 | ||||||
16,549 | TriState Capital Holdings, Inc.(b) | 412,070 | ||||||
13,162 | Triumph Bancorp, Inc.(b) | 294,829 | ||||||
116,721 | TrustCo Bank Corp. NY | 927,932 | ||||||
82,896 | Trustmark Corp. | 2,753,805 | ||||||
35,850 | UMB Financial Corp. | 2,598,767 | ||||||
39,933 | Union Bankshares Corp. | 1,367,306 | ||||||
44,659 | United Community Banks, Inc. | 1,221,424 | ||||||
48,347 | United Financial Bancorp, Inc. | 834,953 | ||||||
32,737 | United Fire Group, Inc. | 1,440,428 | ||||||
21,443 | United Insurance Holdings Corp. | 327,220 | ||||||
35,744 | Universal Insurance Holdings, Inc.(c) | 931,131 | ||||||
23,537 | Univest Corp. of Pennsylvania | 713,171 | ||||||
13,686 | Virtu Financial, Inc., Class A | 210,764 | ||||||
5,622 | Virtus Investment Partners, Inc. | 598,181 | ||||||
30,515 | Walker & Dunlop, Inc.(b) | 1,368,598 | ||||||
271,718 | Walter Investment Management Corp.(b)(c) | 290,738 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
13,391 | Washington Trust Bancorp, Inc. | $ | 658,837 | |||||
22,317 | Waterstone Financial, Inc. | 424,023 | ||||||
39,398 | WesBanco, Inc. | 1,568,434 | ||||||
25,070 | Westamerica Bancorporation(c) | 1,379,351 | ||||||
43,725 | Western Alliance Bancorp(b) | 2,094,428 | ||||||
154,516 | Western Asset Mortgage Capital Corp. REIT | 1,627,053 | ||||||
46,986 | WisdomTree Investments, Inc.(c) | 392,333 | ||||||
25,558 | World Acceptance Corp.(b)(c) | 1,352,018 | ||||||
19,111 | WSFS Financial Corp. | 902,039 | ||||||
|
| |||||||
281,763,857 | ||||||||
|
| |||||||
Health Care—8.1% | ||||||||
10,839 | Abaxis, Inc. | 488,080 | ||||||
4,807 | ABIOMED, Inc.(b) | 626,448 | ||||||
54,500 | Acadia Healthcare Co., Inc.(b)(c) | 2,375,110 | ||||||
42,319 | Accuray, Inc.(b)(c) | 192,551 | ||||||
42,503 | Aceto Corp. | 673,673 | ||||||
86,723 | Achillion Pharmaceuticals, Inc.(b) | 295,725 | ||||||
38,698 | Acorda Therapeutics, Inc.(b) | 624,973 | ||||||
7,507 | Addus HomeCare Corp.(b) | 254,863 | ||||||
52,595 | Akorn, Inc.(b) | 1,759,303 | ||||||
21,389 | Albany Molecular Research, Inc.(b)(c) | 342,438 | ||||||
12,715 | Alder Biopharmaceuticals, Inc.(b) | 254,936 | ||||||
14,402 | Align Technology, Inc.(b) | 1,938,797 | ||||||
27,566 | Alkermes PLC(b) | 1,605,720 | ||||||
7,092 | Almost Family, Inc.(b) | 352,118 | ||||||
23,994 | Alnylam Pharmaceuticals, Inc.(b) | 1,286,078 | ||||||
46,460 | AMAG Pharmaceuticals, Inc.(b) | 1,133,624 | ||||||
27,014 | Amedisys, Inc.(b) | 1,464,159 | ||||||
14,355 | American Renal Associates Holdings, Inc.(b)(c) | 247,050 | ||||||
55,284 | Amicus Therapeutics, Inc.(b) | 424,581 | ||||||
32,947 | AMN Healthcare Services, Inc.(b) | 1,345,885 | ||||||
19,545 | Amphastar Pharmaceuticals, Inc.(b) | 295,129 | ||||||
11,228 | Analogic Corp. | 806,732 | ||||||
44,989 | AngioDynamics, Inc.(b) | 698,229 | ||||||
8,645 | Anika Therapeutics, Inc.(b) | 398,794 | ||||||
98,445 | Arbutus Biopharma Corp. (Canada)(b) | 329,791 | ||||||
17,350 | Atara Biotherapeutics, Inc.(b)(c) | 296,685 | ||||||
10,292 | athenahealth, Inc.(b) | 1,008,719 | ||||||
13,213 | AtriCure, Inc.(b) | 270,867 | ||||||
724 | Atrion Corp. | 374,380 | ||||||
31,655 | BioMarin Pharmaceutical, Inc.(b) | 3,033,815 | ||||||
323,185 | BioScrip, Inc.(b)(c) | 491,241 | ||||||
18,397 | Bio-Techne Corp. | 1,969,951 | ||||||
10,111 | Bluebird Bio, Inc.(b) | 899,373 | ||||||
73,189 | Bruker Corp. | 1,785,080 | ||||||
15,054 | Cambrex Corp.(b) | 893,455 | ||||||
6,867 | Cantel Medical Corp. | 510,973 | ||||||
32,604 | Capital Senior Living Corp.(b) | 455,478 | ||||||
7,250 | Cardiovascular Systems, Inc.(b) | 216,558 | ||||||
70,926 | Celldex Therapeutics, Inc.(b)(c) | 236,184 | ||||||
30,263 | Charles River Laboratories International, Inc.(b) | 2,714,591 | ||||||
9,452 | Chemed Corp. | 1,903,444 | ||||||
54,344 | Chimerix, Inc.(b) | 324,977 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
6,876 | China Biologic Products, Inc. (China)(b) | $ | 811,368 | |||||
28,925 | Civitas Solutions, Inc.(b) | 514,865 | ||||||
3,355 | Clovis Oncology, Inc.(b) | 194,221 | ||||||
25,717 | Computer Programs & Systems, Inc.(c) | 705,932 | ||||||
31,455 | CONMED Corp. | 1,546,328 | ||||||
10,686 | CorVel Corp.(b) | 475,527 | ||||||
5,435 | Cotiviti Holdings, Inc.(b) | 227,129 | ||||||
31,675 | Cross Country Healthcare, Inc.(b) | 442,500 | ||||||
15,202 | CryoLife, Inc.(b) | 275,916 | ||||||
44,955 | Depomed, Inc.(b) | 539,010 | ||||||
3,603 | DexCom, Inc.(b) | 280,890 | ||||||
65,540 | Diplomat Pharmacy, Inc.(b)(c) | 1,022,424 | ||||||
49,697 | Dynavax Technologies Corp.(b)(c) | 275,818 | ||||||
31,746 | Emergent Biosolutions, Inc.(b) | 949,523 | ||||||
11,736 | Enanta Pharmaceuticals, Inc.(b) | 372,618 | ||||||
27,015 | Endologix, Inc.(b)(c) | 202,342 | ||||||
51,904 | Ensign Group, Inc. (The) | 931,677 | ||||||
7,402 | Esperion Therapeutics, Inc.(b)(c) | 264,622 | ||||||
13,171 | Evolent Health, Inc., Class A(b) | 306,226 | ||||||
17,000 | Exact Sciences Corp.(b)(c) | 510,170 | ||||||
16,028 | Exactech, Inc.(b) | 475,230 | ||||||
8,150 | FibroGen, Inc.(b) | 228,200 | ||||||
13,656 | Five Prime Therapeutics, Inc.(b) | 476,048 | ||||||
159,739 | Five Star Senior Living, Inc.(b) | 303,504 | ||||||
125,251 | Genesis Healthcare, Inc., Class A(b) | 303,107 | ||||||
42,755 | Globus Medical, Inc., Class A(b) | 1,296,759 | ||||||
47,614 | Haemonetics Corp.(b) | 1,994,074 | ||||||
67,821 | Halyard Health, Inc.(b) | 2,678,930 | ||||||
6,397 | HealthEquity, Inc.(b) | 291,191 | ||||||
16,357 | HealthStream, Inc.(b) | 454,561 | ||||||
46,584 | Hill-Rom Holdings, Inc. | 3,523,614 | ||||||
70,790 | HMS Holdings Corp.(b) | 1,449,071 | ||||||
88,210 | Horizon Pharma PLC(b) | 1,356,670 | ||||||
28,561 | ICON PLC(b) | 2,413,119 | ||||||
6,519 | ICU Medical, Inc.(b) | 1,002,622 | ||||||
15,913 | IDEXX Laboratories, Inc.(b) | 2,669,087 | ||||||
135,637 | Impax Laboratories, Inc.(b) | 1,905,700 | ||||||
21,856 | INC Research Holdings, Inc., Class A(b) | 983,520 | ||||||
3,589 | Incyte Corp.(b) | 446,041 | ||||||
2,976 | Inogen, Inc.(b) | 246,681 | ||||||
44,750 | Inovalon Holdings, Inc., Class A(b)(c) | 548,188 | ||||||
20,584 | Insmed, Inc.(b) | 379,775 | ||||||
4,292 | Insulet Corp.(b) | 186,316 | ||||||
17,256 | Insys Therapeutics, Inc.(b)(c) | 194,130 | ||||||
43,777 | Integer Holdings Corp.(b) | 1,608,805 | ||||||
15,358 | Integra LifeSciences Holdings Corp.(b) | 706,007 | ||||||
2,979 | Intercept Pharmaceuticals, Inc.(b)(c) | 334,691 | ||||||
25,896 | Intra-Cellular Therapies, Inc.(b)(c) | 357,883 | ||||||
14,664 | Intrexon Corp.(b)(c) | 305,598 | ||||||
82,910 | Invacare Corp. | 1,218,777 | ||||||
6,707 | Ionis Pharmaceuticals, Inc.(b) | 323,210 | ||||||
35,509 | Juno Therapeutics, Inc.(b)(c) | 885,594 | ||||||
11,303 | K2M Group Holdings, Inc.(b) | 250,361 | ||||||
9,950 | Kite Pharma, Inc.(b) | 816,696 | ||||||
9,196 | Landauer, Inc. | 483,710 | ||||||
27,372 | Lannett Co., Inc.(b)(c) | 711,672 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
12,899 | LHC Group, Inc.(b) | $ | 697,836 | |||||
3,334 | Ligand Pharmaceuticals, Inc.(b)(c) | 370,641 | ||||||
13,253 | LivaNova PLC(b)(c) | 698,433 | ||||||
33,742 | Luminex Corp. | 635,362 | ||||||
14,930 | MacroGenics, Inc.(b) | 322,637 | ||||||
9,507 | Masimo Corp.(b) | 976,749 | ||||||
20,592 | Medicines Co. (The)(b) | 1,015,597 | ||||||
8,937 | Medidata Solutions, Inc.(b) | 584,748 | ||||||
11,135 | Medpace Holdings, Inc.(b) | 353,091 | ||||||
73,490 | Meridian Bioscience, Inc. | 1,087,652 | ||||||
34,997 | Merit Medical Systems, Inc.(b) | 1,179,399 | ||||||
20,905 | Momenta Pharmaceuticals, Inc.(b) | 299,987 | ||||||
91,365 | Myriad Genetics, Inc.(b)(c) | 1,680,202 | ||||||
20,075 | Natus Medical, Inc.(b) | 702,625 | ||||||
11,530 | Neogen Corp.(b) | 718,665 | ||||||
10,201 | Neurocrine Biosciences, Inc.(b) | 544,733 | ||||||
2,023 | Nevro Corp.(b) | 190,607 | ||||||
11,908 | NewLink Genetics Corp.(b)(c) | 222,561 | ||||||
200,536 | Novavax, Inc.(b)(c) | 163,657 | ||||||
20,612 | NuVasive, Inc.(b) | 1,494,576 | ||||||
13,914 | NxStage Medical, Inc.(b) | 415,889 | ||||||
22,541 | Omnicell, Inc.(b) | 933,197 | ||||||
142,128 | OPKO Health, Inc.(b)(c) | 1,104,335 | ||||||
20,235 | OraSure Technologies, Inc.(b) | 265,281 | ||||||
17,801 | Orthofix International NV(b) | 704,030 | ||||||
6,509 | Pacira Pharmaceuticals, Inc.(b) | 316,012 | ||||||
43,218 | PAREXEL International Corp.(b) | 2,758,605 | ||||||
7,676 | Patheon NV(b) | 206,561 | ||||||
3,509 | Penumbra, Inc.(b) | 299,844 | ||||||
82,232 | PharMerica Corp.(b) | 1,940,675 | ||||||
12,266 | Phibro Animal Health Corp., Class A | 364,914 | ||||||
12,652 | Portola Pharmaceuticals, Inc.(b) | 505,953 | ||||||
22,849 | PRA Health Sciences, Inc.(b) | 1,461,422 | ||||||
29,899 | Premier, Inc., Class A(b) | 1,010,586 | ||||||
36,595 | Prestige Brands Holdings, Inc.(b) | 2,100,919 | ||||||
6,810 | Prothena Corp. PLC (Ireland)(b)(c) | 368,625 | ||||||
28,525 | Providence Service Corp. (The)(b) | 1,255,100 | ||||||
17,188 | PTC Therapeutics, Inc.(b) | 208,834 | ||||||
64,067 | Quality Systems, Inc.(b) | 913,595 | ||||||
16,830 | Quidel Corp.(b) | 406,781 | ||||||
236,707 | Quorum Health Corp.(b) | 1,010,739 | ||||||
8,577 | Radius Health, Inc.(b)(c) | 335,103 | ||||||
91,803 | RadNet, Inc.(b) | 555,408 | ||||||
10,842 | REGENXBIO, Inc.(b) | 226,598 | ||||||
7,317 | Repligen Corp.(b) | 269,192 | ||||||
14,892 | Retrophin, Inc.(b) | 291,734 | ||||||
111,771 | RTI Surgical, Inc.(b) | 452,673 | ||||||
52,171 | Sangamo Therapeutics, Inc.(b) | 250,421 | ||||||
6,910 | Sarepta Therapeutics, Inc.(b) | 250,557 | ||||||
37,639 | SciClone Pharmaceuticals, Inc.(b) | 363,216 | ||||||
9,678 | Seattle Genetics, Inc.(b) | 661,007 | ||||||
3,353 | Spark Therapeutics, Inc.(b) | 194,373 | ||||||
8,737 | Spectranetics Corp. (The)(b) | 249,878 | ||||||
58,979 | Spectrum Pharmaceuticals, Inc.(b) | 448,830 | ||||||
17,404 | Surgery Partners, Inc.(b) | 299,349 | ||||||
8,679 | SurModics, Inc.(b) | 198,315 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
12,182 | Taro Pharmaceutical Industries Ltd.(b)(c) | $ | 1,423,467 | |||||
38,967 | Tetraphase Pharmaceuticals, Inc.(b) | 309,008 | ||||||
6,321 | Theravance Biopharma, Inc. (Cayman Islands)(b)(c) | 254,926 | ||||||
28,533 | Tivity Health, Inc.(b) | 958,709 | ||||||
58,578 | Triple-S Management Corp., Class B(b) | 1,060,262 | ||||||
6,638 | U.S. Physical Therapy, Inc. | 435,453 | ||||||
6,427 | Ultragenyx Pharmaceutical, Inc.(b) | 413,835 | ||||||
13,716 | Veeva Systems, Inc., Class A(b) | 735,452 | ||||||
19,681 | Vertex Pharmaceuticals, Inc.(b) | 2,328,262 | ||||||
31,894 | West Pharmaceutical Services, Inc. | 2,935,205 | ||||||
46,887 | Wright Medical Group NV(b) | 1,424,896 | ||||||
20,290 | Zogenix, Inc.(b) | 223,190 | ||||||
|
| |||||||
132,299,780 | ||||||||
|
| |||||||
Industrials—16.6% | ||||||||
14,068 | AAON, Inc. | 515,592 | ||||||
66,687 | AAR Corp. | 2,400,065 | ||||||
158,317 | ACCO Brands Corp.(b) | 2,256,017 | ||||||
68,621 | Actuant Corp., Class A | 1,873,353 | ||||||
46,132 | Advanced Drainage Systems, Inc. | 1,063,343 | ||||||
21,143 | Advisory Board Co. (The)(b) | 1,080,407 | ||||||
74,824 | Aegion Corp.(b) | 1,707,484 | ||||||
51,793 | Aerojet Rocketdyne Holdings, Inc.(b) | 1,160,681 | ||||||
15,607 | Aerovironment, Inc.(b) | 445,892 | ||||||
67,781 | Air Transport Services Group, Inc.(b) | 1,246,493 | ||||||
9,514 | Alamo Group, Inc. | 752,177 | ||||||
21,975 | Alaska Air Group, Inc. | 1,869,853 | ||||||
21,002 | Albany International Corp., Class A | 1,023,847 | ||||||
3,101 | Allegiant Travel Co. | 450,885 | ||||||
34,545 | Allegion PLC | 2,716,619 | ||||||
23,625 | Altra Industrial Motion Corp. | 1,043,044 | ||||||
55,317 | Ameresco, Inc., Class A(b) | 356,795 | ||||||
14,882 | American Railcar Industries, Inc.(c) | 624,300 | ||||||
7,869 | American Woodmark Corp.(b) | 723,161 | ||||||
16,309 | Apogee Enterprises, Inc. | 888,840 | ||||||
39,393 | Applied Industrial Technologies, Inc. | 2,521,152 | ||||||
74,856 | ARC Document Solutions, Inc.(b) | 275,470 | ||||||
62,565 | ArcBest Corp. | 1,654,844 | ||||||
7,831 | Argan, Inc. | 523,502 | ||||||
67,700 | Armstrong Flooring, Inc.(b) | 1,299,163 | ||||||
14,702 | Astec Industries, Inc. | 931,372 | ||||||
17,081 | Astronics Corp.(b) | 555,303 | ||||||
11,207 | Atkore International Group, Inc.(b) | 294,296 | ||||||
4,947 | Atlas Air Worldwide Holdings, Inc.(b) | 286,926 | ||||||
13,809 | Axon Enterprise, Inc.(b)(c) | 339,425 | ||||||
24,014 | AZZ, Inc. | 1,418,027 | ||||||
136,088 | Babcock & Wilcox Enterprises, Inc.(b) | 1,275,145 | ||||||
41,680 | Barnes Group, Inc. | 2,291,150 | ||||||
6,019 | Barrett Business Services, Inc. | 347,056 | ||||||
65,344 | Beacon Roofing Supply, Inc.(b) | 3,239,102 | ||||||
61,724 | BMC Stock Holdings, Inc.(b) | 1,438,169 | ||||||
42,574 | Brady Corp., Class A | 1,658,257 | ||||||
88,074 | Briggs & Stratton Corp. | 2,200,969 | ||||||
90,957 | Builders FirstSource, Inc.(b) | 1,456,222 | ||||||
55,605 | BWX Technologies, Inc. | 2,734,098 | ||||||
16,727 | Caesarstone Sdot-Yam Ltd. (Israel)(b) | 664,062 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
48,123 | CAI International, Inc.(b) | $ | 992,296 | |||||
53,819 | Casella Waste Systems, Inc., Class A(b) | 809,976 | ||||||
73,906 | CBIZ, Inc.(b) | 1,164,019 | ||||||
43,323 | CDI Corp.(b) | 353,082 | ||||||
34,960 | CECO Environmental Corp. | 394,698 | ||||||
104,245 | Celadon Group, Inc.(c) | 411,768 | ||||||
46,072 | Chart Industries, Inc.(b) | 1,682,089 | ||||||
15,741 | CIRCOR International, Inc. | 1,050,082 | ||||||
565,389 | Civeo Corp.(b) | 1,690,513 | ||||||
26,069 | Columbus McKinnon Corp. | 681,183 | ||||||
37,260 | Comfort Systems USA, Inc. | 1,367,442 | ||||||
103,363 | Commercial Vehicle Group, Inc.(b) | 918,897 | ||||||
28,695 | Continental Building Products, Inc.(b) | 698,723 | ||||||
11,235 | Copa Holdings SA, Class A (Panama) | 1,307,979 | ||||||
93,768 | Copart, Inc.(b) | 2,897,431 | ||||||
170,044 | Costamare, Inc. (Monaco)(c) | 1,146,097 | ||||||
32,091 | Covenant Transportation Group, Inc., Class A(b) | 601,064 | ||||||
12,187 | CRA International, Inc. | 462,375 | ||||||
15,257 | CSW Industrials, Inc.(b) | 540,098 | ||||||
25,083 | Cubic Corp. | 1,301,808 | ||||||
337,662 | Diana Shipping, Inc. (Greece)(b)(c) | 1,347,271 | ||||||
74,528 | DigitalGlobe, Inc.(b) | 2,399,802 | ||||||
16,778 | DMC Global, Inc. | 256,703 | ||||||
23,222 | Douglas Dynamics, Inc. | 740,782 | ||||||
18,186 | Ducommun, Inc.(b) | 534,487 | ||||||
29,540 | DXP Enterprises, Inc.(b) | 1,077,619 | ||||||
27,700 | Dycom Industries, Inc.(b) | 2,926,782 | ||||||
43,640 | Eagle Bulk Shipping, Inc.(b) | 215,145 | ||||||
48,758 | Echo Global Logistics, Inc.(b) | 914,212 | ||||||
25,914 | Encore Wire Corp. | 1,145,399 | ||||||
27,184 | Engility Holdings, Inc.(b) | 770,666 | ||||||
54,968 | Ennis, Inc. | 967,437 | ||||||
28,570 | EnPro Industries, Inc. | 2,018,470 | ||||||
20,093 | ESCO Technologies, Inc. | 1,182,473 | ||||||
11,550 | Exponent, Inc. | 706,282 | ||||||
63,874 | Federal Signal Corp. | 997,073 | ||||||
25,702 | Forward Air Corp. | 1,366,575 | ||||||
14,525 | Franklin Covey Co.(b) | 308,656 | ||||||
32,127 | Franklin Electric Co., Inc. | 1,320,420 | ||||||
38,003 | FreightCar America, Inc. | 496,319 | ||||||
27,096 | Gibraltar Industries, Inc.(b) | 1,063,518 | ||||||
34,489 | Global Brass & Copper Holdings, Inc. | 1,229,533 | ||||||
9,587 | GMS, Inc.(b) | 346,666 | ||||||
18,355 | GP Strategies Corp.(b) | 497,420 | ||||||
9,527 | Graham Corp. | 210,261 | ||||||
35,373 | Granite Construction, Inc. | 1,864,511 | ||||||
166,552 | Great Lakes Dredge & Dock Corp.(b) | 757,812 | ||||||
46,808 | Greenbrier Cos., Inc. (The)(c) | 2,033,808 | ||||||
53,587 | Griffon Corp. | 1,286,088 | ||||||
77,628 | H&E Equipment Services, Inc. | 1,639,503 | ||||||
14,731 | Hawaiian Holdings, Inc.(b) | 799,893 | ||||||
144,103 | HC2 Holdings, Inc.(b) | 841,562 | ||||||
44,184 | Healthcare Services Group, Inc. | 2,028,487 | ||||||
48,613 | Heartland Express, Inc. | 978,094 | ||||||
11,161 | HEICO Corp. | 793,212 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
23,883 | HEICO Corp., Class A | $ | 1,464,028 | |||||
31,434 | Heidrick & Struggles International, Inc. | 675,831 | ||||||
51,416 | Herc Holdings, Inc.(b) | 2,337,886 | ||||||
14,605 | Heritage-Crystal Clean, Inc.(b) | 219,805 | ||||||
74,828 | Herman Miller, Inc. | 2,476,807 | ||||||
54,764 | Hexcel Corp. | 2,834,037 | ||||||
72,613 | Hillenbrand, Inc. | 2,679,420 | ||||||
54,943 | HNI Corp. | 2,569,135 | ||||||
40,133 | Huron Consulting Group, Inc.(b) | 1,785,918 | ||||||
20,689 | Hyster-Yale Materials Handling, Inc. | 1,243,616 | ||||||
28,989 | ICF International, Inc.(b) | 1,279,864 | ||||||
69,243 | InnerWorkings, Inc.(b) | 733,283 | ||||||
17,604 | Insperity, Inc. | 1,608,125 | ||||||
11,727 | Insteel Industries, Inc. | 408,217 | ||||||
69,677 | Interface, Inc. | 1,386,572 | ||||||
131,179 | JetBlue Airways Corp.(b) | 2,863,638 | ||||||
11,881 | John Bean Technologies Corp. | 1,053,251 | ||||||
9,685 | Kadant, Inc. | 601,923 | ||||||
37,729 | Kaman Corp. | 1,811,369 | ||||||
87,048 | Kelly Services, Inc., Class A | 1,942,911 | ||||||
34,806 | KEYW Holding Corp. (The)(b)(c) | 330,309 | ||||||
34,388 | Kforce, Inc. | 780,608 | ||||||
41,289 | Kimball International, Inc., Class B | 733,706 | ||||||
44,618 | Knight Transportation, Inc. | 1,530,397 | ||||||
52,537 | Knoll, Inc. | 1,258,787 | ||||||
47,259 | Korn/Ferry International | 1,531,192 | ||||||
959,159 | Kratos Defense & Security Solutions, Inc.(b) | 7,308,792 | ||||||
34,166 | Landstar System, Inc. | 2,919,485 | ||||||
66,492 | Layne Christensen Co.(b)(c) | 529,941 | ||||||
39,500 | LB Foster Co., Class A | 560,900 | ||||||
17,946 | Lennox International, Inc. | 2,968,089 | ||||||
10,601 | Lindsay Corp.(c) | 920,803 | ||||||
36,158 | LSI Industries, Inc. | 327,953 | ||||||
11,799 | Lydall, Inc.(b) | 618,268 | ||||||
115,222 | Manitowoc Co., Inc. (The)(b) | 687,875 | ||||||
32,387 | Marten Transport Ltd. | 803,198 | ||||||
26,432 | Masonite International Corp.(b) | 2,199,142 | ||||||
13,230 | Matson, Inc. | 419,391 | ||||||
22,080 | Matthews International Corp., Class A | 1,513,584 | ||||||
28,942 | McGrath RentCorp | 1,007,471 | ||||||
13,769 | Mercury Systems, Inc.(b) | 514,685 | ||||||
20,010 | Middleby Corp. (The)(b) | 2,723,961 | ||||||
19,694 | Milacron Holdings Corp.(b) | 370,641 | ||||||
18,704 | Miller Industries, Inc. | 475,082 | ||||||
24,081 | Mistras Group, Inc.(b) | 541,822 | ||||||
42,055 | Mobile Mini, Inc. | 1,206,979 | ||||||
29,011 | MSA Safety, Inc. | 2,258,506 | ||||||
49,317 | Mueller Industries, Inc. | 1,580,117 | ||||||
103,285 | Mueller Water Products, Inc., Class A | 1,161,956 | ||||||
11,240 | Multi-Color Corp. | 863,232 | ||||||
30,582 | MYR Group, Inc.(b) | 1,292,395 | ||||||
9,421 | National Presto Industries, Inc. | 983,081 | ||||||
66,817 | Navigant Consulting, Inc.(b) | 1,601,603 | ||||||
707,141 | Navios Maritime Holdings, Inc. (Monaco)(b)(c) | 1,202,140 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
46,584 | NCI Building Systems, Inc.(b) | $ | 815,220 | |||||
15,798 | Neff Corp., Class A(b) | 278,045 | ||||||
31,720 | NN, Inc. | 875,472 | ||||||
23,331 | Nordson Corp. | 2,921,041 | ||||||
31,441 | Northwest Pipe Co.(b) | 440,488 | ||||||
40,812 | On Assignment, Inc.(b) | 2,112,837 | ||||||
53,525 | Orion Group Holdings, Inc.(b) | 404,114 | ||||||
9,697 | P.A.M. Transportation Services, Inc.(b) | 182,013 | ||||||
17,034 | Park-Ohio Holdings Corp. | 670,288 | ||||||
8,791 | Patrick Industries, Inc.(b) | 624,601 | ||||||
35,060 | PGT Innovations, Inc.(b) | 382,154 | ||||||
25,261 | Ply Gem Holdings, Inc.(b) | 486,274 | ||||||
18,148 | Powell Industries, Inc. | 625,925 | ||||||
42,531 | Primoris Services Corp. | 976,937 | ||||||
11,274 | Proto Labs, Inc.(b) | 653,892 | ||||||
104,880 | Quad/Graphics, Inc., Class A | 2,754,149 | ||||||
45,427 | Quanex Building Products Corp. | 926,711 | ||||||
30,370 | Raven Industries, Inc. | 941,470 | ||||||
12,434 | RBC Bearings, Inc.(b) | 1,247,130 | ||||||
48,574 | Resources Connection, Inc. | 675,179 | ||||||
187,556 | Roadrunner Transportation Systems, Inc.(b) | 1,260,376 | ||||||
40,507 | Rollins, Inc. | 1,572,887 | ||||||
97,998 | RPX Corp.(b) | 1,258,294 | ||||||
330,903 | Safe Bulkers, Inc. (Greece)(b) | 704,823 | ||||||
34,987 | Saia, Inc.(b) | 1,684,624 | ||||||
105,623 | Scorpio Bulkers, Inc.(b)(c) | 786,891 | ||||||
245,372 | Seaspan Corp. (Hong Kong)(c) | 1,727,419 | ||||||
28,177 | Simpson Manufacturing Co., Inc. | 1,175,263 | ||||||
15,670 | Siteone Landscape Supply, Inc.(b) | 749,183 | ||||||
28,768 | SkyWest, Inc. | 1,070,170 | ||||||
35,817 | SP Plus Corp.(b) | 1,233,896 | ||||||
53,127 | Spartan Motors, Inc. | 438,298 | ||||||
15,003 | Sparton Corp.(b) | 334,117 | ||||||
17,802 | Spirit Airlines, Inc.(b) | 1,019,521 | ||||||
45,713 | SPX Corp.(b) | 1,099,855 | ||||||
9,099 | Standex International Corp. | 854,851 | ||||||
157,994 | Steelcase, Inc., Class A | 2,693,798 | ||||||
19,319 | Sun Hydraulics Corp. | 750,350 | ||||||
71,474 | Sunrun, Inc.(b)(c) | 378,097 | ||||||
29,796 | Team, Inc.(b) | 801,512 | ||||||
14,712 | Tennant Co. | 1,077,654 | ||||||
49,884 | Tetra Tech, Inc. | 2,192,402 | ||||||
77,858 | Textainer Group Holdings Ltd. | 1,163,977 | ||||||
37,333 | Thermon Group Holdings, Inc.(b) | 765,327 | ||||||
91,939 | Titan International, Inc. | 984,667 | ||||||
82,891 | Titan Machinery, Inc.(b) | 1,313,822 | ||||||
46,741 | Toro Co. (The) | 3,034,426 | ||||||
8,105 | Trex Co., Inc.(b) | 593,205 | ||||||
67,146 | TriMas Corp.(b) | 1,541,001 | ||||||
29,149 | TriNet Group, Inc.(b) | 856,981 | ||||||
63,599 | Triton International Ltd. (Bermuda)(b) | 1,946,765 | ||||||
83,794 | TrueBlue, Inc.(b) | 2,291,766 | ||||||
16,223 | Twin Disc, Inc.(b) | 317,971 | ||||||
14,177 | UniFirst Corp. | 1,973,438 | ||||||
21,475 | Universal Forest Products, Inc. | 2,046,353 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
15,182 | US Ecology, Inc. | $ | 715,831 | |||||
39,256 | USA Truck, Inc.(b) | 263,408 | ||||||
89,418 | USG Corp.(b) | 2,709,365 | ||||||
44,401 | Vectrus, Inc.(b) | 1,129,561 | ||||||
47,545 | Veritiv Corp.(b) | 2,455,699 | ||||||
28,166 | Viad Corp. | 1,273,103 | ||||||
11,718 | VSE Corp. | 499,773 | ||||||
101,342 | Wabash National Corp. | 2,308,571 | ||||||
7,124 | WageWorks, Inc.(b) | 525,751 | ||||||
21,857 | Watts Water Technologies, Inc., Class A | 1,359,505 | ||||||
78,644 | Werner Enterprises, Inc. | 2,146,981 | ||||||
103,825 | Wesco Aircraft Holdings, Inc.(b) | 1,261,474 | ||||||
107,868 | West Corp. | 2,878,997 | ||||||
14,470 | Willis Lease Finance Corp.(b) | 328,614 | ||||||
38,931 | Xerium Technologies, Inc.(b) | 276,799 | ||||||
|
| |||||||
270,660,198 | ||||||||
|
| |||||||
Information Technology—15.6% | ||||||||
5,696 | 2U, Inc.(b) | 258,598 | ||||||
52,779 | 3D Systems Corp.(b)(c) | 835,492 | ||||||
27,744 | 8x8, Inc.(b) | 403,675 | ||||||
97,286 | ACI Worldwide, Inc.(b) | 2,090,676 | ||||||
26,586 | Actua Corp.(b) | 372,204 | ||||||
59,844 | Acxiom Corp.(b) | 1,729,492 | ||||||
49,910 | ADTRAN, Inc. | 998,200 | ||||||
12,702 | Advanced Energy Industries, Inc.(b) | 937,408 | ||||||
225,435 | Advanced Micro Devices, Inc.(b) | 2,998,285 | ||||||
24,427 | Alpha & Omega Semiconductor Ltd.(b) | 404,267 | ||||||
11,246 | Ambarella, Inc.(b)(c) | 632,250 | ||||||
6,906 | Applied Optoelectronics, Inc.(b)(c) | 341,087 | ||||||
6,735 | Arista Networks, Inc.(b) | 940,475 | ||||||
8,273 | Aspen Technology, Inc.(b) | 508,707 | ||||||
75,352 | Avid Technology, Inc.(b) | 422,348 | ||||||
74,969 | AVX Corp. | 1,267,726 | ||||||
22,464 | Axcelis Technologies, Inc.(b) | 432,432 | ||||||
17,632 | Badger Meter, Inc. | 700,872 | ||||||
73,624 | Bankrate, Inc.(b) | 780,414 | ||||||
62,575 | Bazaarvoice, Inc.(b) | 294,102 | ||||||
13,909 | Bel Fuse, Inc., Class B | 336,598 | ||||||
35,194 | Belden, Inc. | 2,453,022 | ||||||
71,851 | Black Box Corp. | 711,325 | ||||||
10,750 | Black Knight Financial Services, Inc., Class A(b)(c) | 445,050 | ||||||
14,087 | Blackbaud, Inc. | 1,132,736 | ||||||
51,094 | Blackhawk Network Holdings, Inc., Class A(b) | 2,066,752 | ||||||
54,055 | Blucora, Inc.(b) | 997,315 | ||||||
23,325 | Bottomline Technologies (de), Inc.(b) | 543,472 | ||||||
9,548 | BroadSoft, Inc.(b) | 366,643 | ||||||
52,063 | Brooks Automation, Inc. | 1,315,111 | ||||||
29,167 | Cabot Microelectronics Corp. | 2,285,234 | ||||||
27,551 | CalAmp Corp.(b) | 494,265 | ||||||
59,653 | Calix, Inc.(b) | 399,675 | ||||||
10,192 | Callidus Software, Inc.(b) | 214,542 | ||||||
165,375 | Canadian Solar, Inc. (Canada)(b)(c) | 2,199,487 | ||||||
32,952 | Cardtronics PLC, Class A(b) | 1,370,144 | ||||||
6,963 | Cass Information Systems, Inc. | 462,831 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
9,249 | Cavium, Inc.(b) | $ | 636,794 | |||||
7,340 | CEVA, Inc.(b) | 264,240 | ||||||
91,532 | Ciena Corp.(b) | 2,096,998 | ||||||
18,403 | Cimpress NV (Netherlands)(b)(c) | 1,510,518 | ||||||
38,754 | Cirrus Logic, Inc.(b) | 2,493,820 | ||||||
17,731 | Cognex Corp. | 1,513,164 | ||||||
9,583 | Coherent, Inc.(b) | 2,066,095 | ||||||
27,914 | Cohu, Inc. | 522,829 | ||||||
18,234 | CommVault Systems, Inc.(b) | 919,905 | ||||||
91,535 | Comtech Telecommunications Corp. | 1,282,405 | ||||||
12,264 | Control4 Corp.(b) | 207,262 | ||||||
10,431 | CoStar Group, Inc.(b) | 2,512,724 | ||||||
47,502 | Cray, Inc.(b) | 850,286 | ||||||
30,921 | CSG Systems International, Inc. | 1,159,847 | ||||||
27,176 | CTS Corp. | 600,590 | ||||||
5,380 | CyberArk Software Ltd. (Israel)(b) | 284,656 | ||||||
74,751 | Daktronics, Inc. | 707,144 | ||||||
25,277 | Dell Technologies, Inc. Class V(b) | 1,696,339 | ||||||
93,510 | DHI Group, Inc.(b) | 360,013 | ||||||
36,699 | Digi International, Inc.(b) | 455,068 | ||||||
49,383 | Diodes, Inc.(b) | 1,155,068 | ||||||
34,689 | Dolby Laboratories, Inc., Class A | 1,829,151 | ||||||
23,530 | DSP Group, Inc.(b) | 292,948 | ||||||
74,789 | Eastman Kodak Co.(b) | 822,679 | ||||||
11,246 | Ebix, Inc.(c) | 693,878 | ||||||
65,742 | Electro Scientific Industries, Inc.(b) | 458,879 | ||||||
37,216 | Electronics for Imaging, Inc.(b) | 1,703,748 | ||||||
5,170 | Ellie Mae, Inc.(b) | 526,099 | ||||||
21,977 | EMCORE Corp. | 197,793 | ||||||
39,845 | Endurance International Group Holdings, Inc.(b) | 302,822 | ||||||
52,358 | EnerNOC, Inc.(b) | 295,823 | ||||||
74,645 | Entegris, Inc.(b) | 1,851,196 | ||||||
17,396 | Envestnet, Inc.(b) | 605,381 | ||||||
19,011 | EPAM Systems, Inc.(b) | 1,463,847 | ||||||
19,233 | ePlus, Inc.(b) | 1,370,351 | ||||||
31,863 | Euronet Worldwide, Inc.(b) | 2,632,521 | ||||||
257,786 | Everi Holdings, Inc.(b) | 1,636,941 | ||||||
45,745 | EVERTEC, Inc. | 725,058 | ||||||
22,856 | Exar Corp.(b) | 297,357 | ||||||
17,783 | ExlService Holdings, Inc.(b) | 848,427 | ||||||
61,761 | Extreme Networks, Inc.(b) | 482,662 | ||||||
22,899 | Fabrinet (Thailand)(b) | 793,908 | ||||||
8,817 | Fair Isaac Corp. | 1,194,527 | ||||||
17,728 | FARO Technologies, Inc.(b) | 649,731 | ||||||
62,820 | Finisar Corp.(b) | 1,434,809 | ||||||
94,740 | FireEye, Inc.(b)(c) | 1,185,197 | ||||||
183,067 | Fitbit, Inc., Class A(b)(c) | 1,047,143 | ||||||
30,987 | FormFactor, Inc.(b) | 343,956 | ||||||
8,429 | Forrester Research, Inc. | 341,796 | ||||||
33,710 | Fortinet, Inc.(b) | 1,314,690 | ||||||
20,662 | Gartner, Inc.(b) | 2,357,328 | ||||||
6,510 | Gigamon, Inc.(b) | 206,367 | ||||||
6,391 | Globant SA(b)(c) | 242,155 | ||||||
153,592 | Glu Mobile, Inc.(b)(c) | 354,798 | ||||||
13,046 | GoDaddy, Inc., Class A(b) | 507,750 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
24,417 | Gogo, Inc.(b)(c) | $ | 307,898 | |||||
26,551 | GrubHub, Inc.(b) | 1,141,162 | ||||||
7,940 | GTT Communications, Inc.(b) | 218,350 | ||||||
14,066 | Guidewire Software, Inc.(b) | 864,918 | ||||||
14,461 | Hackett Group, Inc. (The) | 286,762 | ||||||
129,347 | Harmonic, Inc.(b) | 750,213 | ||||||
45,349 | Hollysys Automation Technologies Ltd. (China) | 727,398 | ||||||
41,857 | II-VI, Inc.(b) | 1,387,560 | ||||||
6,449 | Imperva, Inc.(b) | 286,658 | ||||||
95,800 | Infinera Corp.(b) | 950,336 | ||||||
7,680 | Inphi Corp.(b) | 318,106 | ||||||
75,928 | Inseego Corp.(b)(c) | 162,486 | ||||||
59,763 | Integrated Device Technology, Inc.(b) | 1,433,714 | ||||||
17,768 | InterDigital, Inc. | 1,597,343 | ||||||
286,083 | Internap Corp.(b)(c) | 886,857 | ||||||
26,531 | InterXion Holding NV (Netherlands)(b) | 1,105,281 | ||||||
51,370 | InvenSense, Inc.(b) | 660,618 | ||||||
11,330 | IPG Photonics Corp.(b) | 1,431,206 | ||||||
32,752 | Itron, Inc.(b) | 2,123,967 | ||||||
33,529 | IXYS Corp. | 467,730 | ||||||
28,101 | j2 Global, Inc. | 2,535,834 | ||||||
30,819 | Jack Henry & Associates, Inc. | 2,986,977 | ||||||
45,126 | Kimball Electronics, Inc.(b) | 778,423 | ||||||
124,316 | Knowles Corp.(b) | 2,204,123 | ||||||
81,534 | Kulicke & Soffa Industries, Inc. (Singapore)(b) | 1,819,839 | ||||||
23,493 | KVH Industries, Inc.(b) | 187,944 | ||||||
87,123 | Lattice Semiconductor Corp.(b) | 597,664 | ||||||
60,569 | Liquidity Services, Inc.(b) | 472,438 | ||||||
10,308 | Littelfuse, Inc. | 1,588,978 | ||||||
45,166 | LivePerson, Inc.(b) | 318,420 | ||||||
3,539 | LogMeIn, Inc. | 399,907 | ||||||
19,487 | Lumentum Holdings, Inc.(b) | 833,069 | ||||||
9,273 | Luxoft Holding, Inc., Class A(b) | 571,680 | ||||||
7,009 | MACOM Technology Solutions Holdings, Inc.(b) | 342,600 | ||||||
65,836 | Magnachip Semiconductor Corp. (South Korea)(b)(c) | 559,606 | ||||||
18,769 | Manhattan Associates, Inc.(b) | 876,325 | ||||||
49,727 | ManTech International Corp., Class A | 1,765,308 | ||||||
67,981 | Marchex, Inc., Class B(b) | 184,229 | ||||||
14,045 | Match Group, Inc.(b)(c) | 261,658 | ||||||
31,499 | MAXIMUS, Inc. | 1,921,124 | ||||||
12,095 | MaxLinear, Inc., Class A(b) | 336,604 | ||||||
54,450 | Maxwell Technologies, Inc.(b) | 332,145 | ||||||
26,254 | Mellanox Technologies Ltd. (Israel)(b)(c) | 1,239,189 | ||||||
5,808 | MercadoLibre, Inc. (Argentina) | 1,329,509 | ||||||
28,276 | Methode Electronics, Inc. | 1,259,696 | ||||||
50,952 | Microsemi Corp.(b) | 2,391,687 | ||||||
4,663 | MicroStrategy, Inc., Class A(b) | 886,763 | ||||||
31,016 | MKS Instruments, Inc. | 2,427,002 | ||||||
11,802 | Mobileye NV(b) | 730,780 | ||||||
68,951 | MoneyGram International, Inc.(b) | 1,228,017 | ||||||
8,431 | Monolithic Power Systems, Inc. | 771,437 | ||||||
29,057 | Monotype Imaging Holdings, Inc. | 591,310 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
18,246 | MTS Systems Corp. | $ | 847,527 | |||||
12,679 | Nanometrics, Inc.(b) | 400,086 | ||||||
79,121 | National Instruments Corp. | 2,762,114 | ||||||
24,163 | NeoPhotonics Corp.(b) | 187,505 | ||||||
93,428 | Net 1 UEPS Technologies, Inc. (South Africa)(b) | 1,011,825 | ||||||
37,227 | NETGEAR, Inc.(b) | 1,755,253 | ||||||
84,542 | NeuStar, Inc., Class A(b) | 2,806,794 | ||||||
35,034 | NIC, Inc. | 747,976 | ||||||
22,500 | Novanta, Inc.(b) | 631,125 | ||||||
36,870 | Oclaro, Inc.(b)(c) | 295,329 | ||||||
37,100 | Orbotech Ltd. (Israel)(b) | 1,221,703 | ||||||
18,779 | OSI Systems, Inc.(b) | 1,453,495 | ||||||
5,499 | Palo Alto Networks, Inc.(b) | 596,147 | ||||||
70,431 | Pandora Media, Inc.(b)(c) | 764,176 | ||||||
44,283 | Park Electrochemical Corp. | 766,982 | ||||||
3,993 | Paycom Software, Inc.(b) | 240,578 | ||||||
27,914 | PC Connection, Inc. | 802,248 | ||||||
12,797 | PDF Solutions, Inc.(b) | 243,399 | ||||||
9,197 | Pegasystems, Inc. | 418,923 | ||||||
42,690 | Perficient, Inc.(b) | 743,660 | ||||||
26,979 | PFSweb, Inc.(b) | 197,486 | ||||||
130,465 | Photronics, Inc.(b) | 1,500,348 | ||||||
25,008 | Plantronics, Inc. | 1,365,437 | ||||||
50,653 | Plexus Corp.(b) | 2,633,449 | ||||||
11,464 | Power Integrations, Inc. | 756,051 | ||||||
39,661 | Progress Software Corp. | 1,178,725 | ||||||
46,514 | PTC, Inc.(b) | 2,514,082 | ||||||
24,799 | Pure Storage, Inc., Class A(b)(c) | 263,117 | ||||||
8,047 | Qualys, Inc.(b) | 309,005 | ||||||
83,865 | QuinStreet, Inc.(b) | 375,715 | ||||||
21,830 | Quotient Technology, Inc.(b) | 237,947 | ||||||
56,170 | Radisys Corp.(b) | 225,242 | ||||||
35,789 | Radware Ltd. (Israel)(b) | 584,434 | ||||||
63,227 | Rambus, Inc.(b) | 791,602 | ||||||
12,855 | RealPage, Inc.(b) | 476,278 | ||||||
61,156 | RetailMeNot, Inc.(b) | 709,410 | ||||||
90,008 | Rocket Fuel, Inc.(b)(c) | 452,290 | ||||||
16,935 | Rogers Corp.(b) | 1,743,289 | ||||||
31,974 | Rubicon Project, Inc. (The)(b) | 182,572 | ||||||
22,380 | Rudolph Technologies, Inc.(b) | 548,310 | ||||||
103,574 | Sabre Corp. | 2,424,667 | ||||||
30,486 | Semtech Corp.(b) | 1,041,097 | ||||||
9,188 | ServiceNow, Inc.(b) | 868,082 | ||||||
37,814 | ServiceSource International, Inc.(b) | 142,181 | ||||||
3,123 | Shopify, Inc., Class A (Canada)(b) | 237,192 | ||||||
57,250 | ShoreTel, Inc.(b) | 374,988 | ||||||
4,448 | Shutterstock, Inc.(b) | 192,287 | ||||||
44,251 | Sigma Designs, Inc.(b) | 274,356 | ||||||
6,627 | Silicom Ltd. (Israel) | 359,382 | ||||||
19,601 | Silicon Laboratories, Inc.(b) | 1,394,611 | ||||||
33,198 | SINA Corp. (China)(b) | 2,549,938 | ||||||
62,569 | Sohu.com, Inc. (China)(b) | 2,427,677 | ||||||
13,295 | SolarEdge Technologies, Inc.(b)(c) | 214,714 | ||||||
63,916 | Sonus Networks, Inc.(b) | 490,875 | ||||||
16,818 | Splunk, Inc.(b) | 1,081,566 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
5,978 | SPS Commerce, Inc.(b) | $ | 330,344 | |||||
32,148 | Square, Inc., Class A(b) | 586,380 | ||||||
73,209 | SS&C Technologies Holdings, Inc. | 2,689,699 | ||||||
2,832 | Stamps.com, Inc.(b)(c) | 300,617 | ||||||
60,642 | Stratasys Ltd.(b) | 1,501,496 | ||||||
130,313 | SunPower Corp.(b)(c) | 904,372 | ||||||
50,793 | Super Micro Computer, Inc.(b) | 1,239,349 | ||||||
63,885 | Sykes Enterprises, Inc.(b) | 1,904,412 | ||||||
33,093 | Synaptics, Inc.(b) | 1,812,504 | ||||||
27,962 | Synchronoss Technologies, Inc.(b) | 447,392 | ||||||
52,499 | Syntel, Inc. | 924,507 | ||||||
13,294 | Tableau Software, Inc., Class A(b) | 713,622 | ||||||
38,394 | Take-Two Interactive Software, Inc.(b) | 2,413,063 | ||||||
23,086 | TeleTech Holdings, Inc. | 721,438 | ||||||
110,016 | Tivo Corp. | 2,172,816 | ||||||
185,461 | Travelport Worldwide Ltd. | 2,442,521 | ||||||
121,307 | TTM Technologies, Inc.(b) | 2,029,466 | ||||||
9,675 | Tyler Technologies, Inc.(b) | 1,582,733 | ||||||
6,740 | Ubiquiti Networks, Inc.(b)(c) | 347,245 | ||||||
4,256 | Ultimate Software Group, Inc. (The)(b) | 862,564 | ||||||
46,649 | Ultra Clean Holdings, Inc.(b) | 897,527 | ||||||
18,739 | Ultratech, Inc.(b) | 571,914 | ||||||
8,854 | Universal Display Corp. | 791,105 | ||||||
28,871 | VASCO Data Security International, Inc.(b) | 389,759 | ||||||
47,266 | Veeco Instruments, Inc.(b) | 1,559,778 | ||||||
63,205 | Verint Systems, Inc.(b) | 2,483,957 | ||||||
31,323 | VeriSign, Inc.(b)(c) | 2,785,241 | ||||||
63,245 | Versum Materials, Inc. | 2,025,105 | ||||||
39,925 | ViaSat, Inc.(b) | 2,556,398 | ||||||
132,451 | Viavi Solutions, Inc.(b) | 1,324,510 | ||||||
30,557 | Virtusa Corp.(b) | 946,656 | ||||||
22,470 | Vishay Precision Group, Inc.(b) | 386,484 | ||||||
29,155 | VMware, Inc., Class A(b)(c) | 2,744,069 | ||||||
39,278 | Web.com Group, Inc.(b) | 758,065 | ||||||
15,527 | WebMD Health Corp.(b) | 842,029 | ||||||
26,341 | WEX, Inc.(b) | 2,672,558 | ||||||
10,491 | Workday, Inc., Class A(b) | 916,913 | ||||||
62,737 | Xcerra Corp.(b) | 614,823 | ||||||
16,502 | XO Group, Inc.(b) | 289,610 | ||||||
29,019 | Xperi Corp. | 975,038 | ||||||
105,072 | Yandex NV, Class A (Russia)(b) | 2,864,263 | ||||||
23,402 | Yelp, Inc., Class A(b) | 828,665 | ||||||
34,809 | Zebra Technologies Corp., Class A(b) | 3,281,444 | ||||||
8,407 | Zendesk, Inc.(b) | 241,701 | ||||||
20,594 | Zillow Group, Inc., Class A(b) | 792,663 | ||||||
39,472 | Zillow Group, Inc., Class C(b) | 1,539,408 | ||||||
766,867 | Zynga, Inc., Class A(b) | 2,216,246 | ||||||
|
| |||||||
255,326,957 | ||||||||
|
| |||||||
Materials—5.8% | ||||||||
65,713 | A. Schulman, Inc. | 2,079,816 | ||||||
78,393 | Advansix, Inc.(b) | 2,136,993 | ||||||
79,859 | Agrofresh Solutions, Inc.(b)(c) | 448,009 | ||||||
34,548 | American Vanguard Corp. | 578,679 | ||||||
16,997 | Ampco-Pittsburgh Corp. | 247,306 | ||||||
11,580 | Balchem Corp. | 939,833 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Materials (continued) | ||||||||
100,493 | Boise Cascade Co.(b) | $ | 3,065,036 | |||||
51,198 | Calgon Carbon Corp. | 744,931 | ||||||
100,492 | Century Aluminum Co.(b) | 1,370,711 | ||||||
44,225 | Clearwater Paper Corp.(b) | 2,149,335 | ||||||
96,103 | Coeur Mining, Inc.(b) | 870,693 | ||||||
16,161 | Core Molding Technologies, Inc.(b) | 319,665 | ||||||
5,155 | Deltic Timber Corp. | 398,842 | ||||||
20,072 | Eagle Materials, Inc. | 1,926,310 | ||||||
104,160 | Ferro Corp.(b) | 1,866,547 | ||||||
41,195 | Ferroglobe PLC | 397,532 | ||||||
50,209 | Flotek Industries, Inc.(b)(c) | 603,010 | ||||||
52,019 | FutureFuel Corp. | 804,214 | ||||||
88,330 | GCP Applied Technologies, Inc.(b) | 2,906,057 | ||||||
84,471 | Gold Resource Corp.(c) | 278,754 | ||||||
278,381 | Golden Star Resources Ltd.(b) | 200,045 | ||||||
47,409 | Greif, Inc., Class A | 2,779,116 | ||||||
51,817 | H.B. Fuller Co. | 2,737,492 | ||||||
10,663 | Hawkins, Inc. | 544,879 | ||||||
19,968 | Haynes International, Inc. | 844,447 | ||||||
47,079 | Headwaters, Inc.(b) | 1,118,597 | ||||||
252,321 | Hecla Mining Co. | 1,375,149 | ||||||
28,967 | Ingevity Corp.(b) | 1,831,583 | ||||||
32,722 | Innophos Holdings, Inc. | 1,568,693 | ||||||
18,831 | Innospec, Inc. | 1,242,846 | ||||||
295,783 | Intrepid Potash, Inc.(b)(c) | 535,367 | ||||||
22,791 | Kaiser Aluminum Corp. | 1,923,788 | ||||||
106,288 | KapStone Paper and Packaging Corp. | 2,241,614 | ||||||
7,153 | KMG Chemicals, Inc. | 375,890 | ||||||
27,799 | Koppers Holdings, Inc.(b) | 1,180,068 | ||||||
62,242 | Kraton Corp.(b) | 2,035,936 | ||||||
46,237 | Kronos Worldwide, Inc. | 810,072 | ||||||
96,532 | Louisiana-Pacific Corp.(b) | 2,484,734 | ||||||
115,879 | LSB Industries, Inc.(b)(c) | 1,276,987 | ||||||
37,193 | Materion Corp. | 1,415,194 | ||||||
74,581 | McEwen Mining, Inc.(b)(c) | 226,726 | ||||||
26,633 | Minerals Technologies, Inc. | 2,096,017 | ||||||
42,284 | Multi Packaging Solutions International Ltd.(b) | 758,998 | ||||||
45,065 | Myers Industries, Inc. | 734,559 | ||||||
15,853 | Neenah Paper, Inc. | 1,242,083 | ||||||
30,871 | Olympic Steel, Inc. | 696,141 | ||||||
116,803 | OMNOVA Solutions, Inc.(b) | 1,109,628 | ||||||
92,541 | P.H. Glatfelter Co. | 1,990,557 | ||||||
8,658 | Quaker Chemical Corp. | 1,251,947 | ||||||
115,029 | Rayonier Advanced Materials, Inc. | 1,524,134 | ||||||
100,609 | Rentech, Inc.(b) | 52,297 | ||||||
41,785 | Royal Gold, Inc. | 2,953,364 | ||||||
96,053 | Ryerson Holding Corp.(b) | 1,315,926 | ||||||
79,328 | Schnitzer Steel Industries, Inc., Class A | 1,499,299 | ||||||
41,107 | Schweitzer-Mauduit International, Inc. | 1,769,656 | ||||||
30,606 | Scotts Miracle-Gro Co. (The) | 2,956,540 | ||||||
35,764 | Sensient Technologies Corp. | 2,925,495 | ||||||
21,551 | Stepan Co. | 1,827,525 | ||||||
98,760 | Stillwater Mining Co.(b) | 1,775,705 | ||||||
68,938 | Summit Materials, Inc., Class A(b) | 1,768,949 | ||||||
164,023 | SunCoke Energy, Inc.(b) | 1,504,091 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Materials (continued) | ||||||||
73,521 | TimkenSteel Corp.(b) | $ | 1,108,697 | |||||
31,880 | Tredegar Corp. | 546,742 | ||||||
152,785 | Tronox Ltd., Class A | 2,522,480 | ||||||
11,863 | US Concrete, Inc.(b)(c) | 735,506 | ||||||
20,266 | Valvoline, Inc.(c) | 450,919 | ||||||
46,033 | Westlake Chemical Corp. | 2,865,554 | ||||||
53,136 | Worthington Industries, Inc. | 2,311,416 | ||||||
|
| |||||||
95,175,721 | ||||||||
|
| |||||||
Real Estate—7.1% | ||||||||
63,578 | Acadia Realty Trust REIT | 1,848,848 | ||||||
13,417 | Agree Realty Corp. REIT | 650,456 | ||||||
30,401 | Alexander & Baldwin, Inc. | 1,398,750 | ||||||
1,537 | Alexander’s, Inc. REIT | 668,303 | ||||||
2,459 | Altisource Asset Management Corp.(b)(c) | 188,359 | ||||||
34,179 | Altisource Portfolio Solutions SA(b)(c) | 755,014 | ||||||
178,935 | Altisource Residential Corp. REIT | 2,573,085 | ||||||
34,663 | American Assets Trust, Inc. REIT | 1,484,616 | ||||||
127,389 | American Homes 4 Rent, Class A REIT | 2,936,316 | ||||||
41,744 | Armada Hoffler Properties, Inc. REIT | 595,269 | ||||||
48,445 | Ashford Hospitality Prime, Inc. REIT | 513,033 | ||||||
271,853 | Ashford Hospitality Trust, Inc. REIT | 1,699,081 | ||||||
16,449 | Bluerock Residential Growth REIT, Inc., Class A REIT | 204,955 | ||||||
79,403 | Care Capital Properties, Inc. REIT | 2,133,559 | ||||||
42,628 | CareTrust REIT, Inc. REIT | 725,529 | ||||||
44,339 | CatchMark Timber Trust, Inc., Class A REIT | 519,210 | ||||||
153,071 | Cedar Realty Trust, Inc. REIT | 823,522 | ||||||
53,813 | Chatham Lodging Trust REIT | 1,041,820 | ||||||
88,773 | Chesapeake Lodging Trust REIT | 2,069,299 | ||||||
16,583 | Colony Starwood Homes REIT | 573,274 | ||||||
14,072 | CorEnergy Infrastructure Trust, Inc. REIT(c) | 513,347 | ||||||
8,678 | CoreSite Realty Corp. REIT | 849,142 | ||||||
171,002 | Cousins Properties, Inc. REIT | 1,451,807 | ||||||
34,446 | CyrusOne, Inc. REIT | 1,882,129 | ||||||
41,501 | DuPont Fabros Technology, Inc. REIT | 2,139,377 | ||||||
17,605 | Easterly Government Properties, Inc. REIT | 354,213 | ||||||
26,487 | EastGroup Properties, Inc. REIT | 2,072,608 | ||||||
50,825 | Education Realty Trust, Inc. REIT | 1,970,485 | ||||||
65,285 | Empire State Realty Trust, Inc., Class A REIT | 1,357,928 | ||||||
154,088 | FelCor Lodging Trust, Inc. REIT | 1,194,182 | ||||||
75,013 | First Industrial Realty Trust, Inc. REIT | 2,110,866 | ||||||
122,533 | First Potomac Realty Trust REIT | 1,347,863 | ||||||
49,235 | Forestar Group, Inc.(b) | 696,675 | ||||||
22,183 | Four Corners Property Trust, Inc. REIT | 517,529 | ||||||
167,339 | Franklin Street Properties Corp. REIT | 2,029,822 | ||||||
29,269 | Getty Realty Corp. REIT | 749,286 | ||||||
28,034 | Gladstone Commercial Corp. REIT | 625,158 | ||||||
55,764 | Global NET Lease, Inc. REIT | 1,317,703 | ||||||
120,187 | Government Properties Income Trust REIT | 2,562,387 | ||||||
66,700 | Hersha Hospitality Trust REIT | 1,229,948 | ||||||
33,099 | HFF, Inc., Class A | 1,039,309 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Real Estate (continued) | ||||||||
55,068 | Hudson Pacific Properties, Inc. REIT | $ | 1,892,137 | |||||
45,926 | Independence Realty Trust, Inc. REIT | 422,519 | ||||||
52,353 | InfraREIT, Inc. REIT | 999,942 | ||||||
275,018 | Investors Real Estate Trust REIT | 1,625,356 | ||||||
101,187 | iStar, Inc. REIT(b) | 1,237,517 | ||||||
66,647 | Kennedy-Wilson Holdings, Inc. | 1,359,599 | ||||||
103,663 | Kite Realty Group Trust REIT | 2,110,579 | ||||||
32,732 | Life Storage, Inc. REIT | 2,565,861 | ||||||
27,691 | LTC Properties, Inc. REIT | 1,324,737 | ||||||
10,410 | Marcus & Millichap, Inc.(b) | 268,578 | ||||||
21,257 | Medequities Realty Trust, Inc. REIT | 251,258 | ||||||
41,421 | Monmouth Real Estate Investment Corp. REIT(c) | 621,315 | ||||||
199,105 | Monogram Residential Trust, Inc. REIT | 2,026,889 | ||||||
23,364 | National Health Investors, Inc. REIT | 1,709,544 | ||||||
19,532 | National Storage Affiliates Trust REIT | 478,534 | ||||||
168,389 | New Senior Investment Group, Inc. REIT | 1,754,613 | ||||||
14,820 | NexPoint Residential Trust, Inc. REIT | 355,828 | ||||||
67,170 | NorthStar Realty Europe Corp. REIT | 781,187 | ||||||
19,320 | One Liberty Properties, Inc. REIT | 469,090 | ||||||
24,944 | Parkway, Inc. REIT | 502,622 | ||||||
89,021 | Pebblebrook Hotel Trust REIT | 2,649,265 | ||||||
107,570 | Pennsylvania Real Estate Investment Trust REIT | 1,489,845 | ||||||
56,932 | Physicians Realty Trust REIT | 1,118,144 | ||||||
38,678 | Potlatch Corp. REIT | 1,742,444 | ||||||
43,171 | Preferred Apartment Communities, Inc., Class A REIT | 610,870 | ||||||
15,524 | PS Business Parks, Inc. REIT | 1,886,787 | ||||||
25,398 | QTS Realty Trust, Inc., Class A REIT | 1,357,269 | ||||||
326,862 | RAIT Financial Trust REIT | 1,003,466 | ||||||
107,330 | Ramco-Gershenson Properties Trust REIT | 1,430,709 | ||||||
12,080 | RE/MAX Holdings, Inc., Class A | 714,532 | ||||||
79,107 | Retail Opportunity Investments Corp. REIT | 1,629,604 | ||||||
35,638 | Rexford Industrial Realty, Inc. REIT | 888,812 | ||||||
4,225 | RMR Group, Inc. (The), Class A | 222,869 | ||||||
75,519 | Sabra Health Care REIT, Inc. REIT | 2,053,362 | ||||||
11,826 | Saul Centers, Inc. REIT | 710,151 | ||||||
94,089 | Select Income REIT | 2,357,870 | ||||||
28,311 | Seritage Growth Properties, Class A REIT(c) | 1,174,907 | ||||||
28,169 | Silver Bay Realty Trust Corp. REIT | 603,662 | ||||||
41,891 | St. Joe Co. (The)(b) | 733,093 | ||||||
61,739 | STAG Industrial, Inc., Class A REIT | 1,627,440 | ||||||
112,067 | STORE Capital Corp. REIT | 2,688,487 | ||||||
85,968 | Summit Hotel Properties, Inc. REIT | 1,421,051 | ||||||
82,491 | Tanger Factory Outlet Centers, Inc. REIT | 2,572,894 | ||||||
11,747 | Tejon Ranch Co.(b) | 269,006 | ||||||
30,731 | Terreno Realty Corp. REIT | 948,973 | ||||||
78,743 | Tier REIT, Inc. REIT | 1,363,041 | ||||||
27,397 | UMH Properties, Inc. REIT | 438,900 | ||||||
8,261 | Universal Health Realty Income Trust REIT | 576,205 | ||||||
43,166 | Urban Edge Properties REIT | 1,100,733 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Real Estate (continued) | ||||||||
34,441 | Urstadt Biddle Properties, Inc., Class A REIT | $ | 677,110 | |||||
81,689 | Washington REIT | 2,587,091 | ||||||
41,472 | Whitestone REIT | 520,059 | ||||||
|
| |||||||
115,340,418 | ||||||||
|
| |||||||
Telecommunication Services—1.3% | ||||||||
11,144 | ATN International, Inc. | 771,053 | ||||||
22,111 | Boingo Wireless, Inc.(b) | 315,966 | ||||||
125,910 | Cincinnati Bell, Inc.(b) | 2,373,404 | ||||||
24,030 | Cogent Communications Holdings, Inc. | 1,081,350 | ||||||
85,312 | Consolidated Communications Holdings, Inc.(c) | 2,019,335 | ||||||
54,324 | FairPoint Communications, Inc.(b) | 926,224 | ||||||
58,416 | General Communication, Inc., Class A(b) | 2,187,095 | ||||||
10,467 | Hawaiian Telcom Holdco, Inc.(b) | 266,385 | ||||||
43,844 | IDT Corp., Class B(b) | 665,990 | ||||||
225,049 | Intelsat SA(b)(c) | 663,895 | ||||||
202,928 | Iridium Communications, Inc.(b)(c) | 2,151,037 | ||||||
29,618 | Lumos Networks Corp.(b) | 530,458 | ||||||
24,768 | Magicjack Vocaltec Ltd. (Israel)(b)(c) | 203,098 | ||||||
588,400 | NII Holdings, Inc.(b) | 507,672 | ||||||
46,183 | ORBCOMM, Inc.(b) | 445,204 | ||||||
8,113 | pdvWireless, Inc.(b)(c) | 208,098 | ||||||
30,650 | Shenandoah Telecommunications Co. | 980,800 | ||||||
41,003 | Spok Holdings, Inc. | 736,004 | ||||||
36,711 | United States Cellular Corp.(b) | 1,438,337 | ||||||
202,551 | Vonage Holdings Corp.(b) | 1,359,117 | ||||||
46,904 | Zayo Group Holdings, Inc.(b) | 1,644,923 | ||||||
|
| |||||||
21,475,445 | ||||||||
|
| |||||||
Utilities—1.8% | ||||||||
35,210 | American States Water Co. | 1,567,549 | ||||||
9,437 | Artesian Resources Corp., Class A | 362,475 | ||||||
370,782 | Atlantic Power Corp.(b) | 926,955 | ||||||
92,293 | Atlantica Yield PLC (Spain) | 1,923,386 | ||||||
50,308 | California Water Service Group | 1,795,996 | ||||||
14,950 | Chesapeake Utilities Corp. | 1,095,835 | ||||||
9,083 | Connecticut Water Service, Inc. | 487,485 | ||||||
24,306 | Consolidated Water Co. Ltd. (Cayman Islands) | 286,811 | ||||||
60,751 | El Paso Electric Co. | 3,134,752 | ||||||
31,241 | MGE Energy, Inc. | 2,008,796 | ||||||
15,500 | Middlesex Water Co. | 590,860 | ||||||
42,681 | Northwest Natural Gas Co. | 2,543,788 | ||||||
33,883 | NRG Yield, Inc., Class A | 587,531 | ||||||
61,699 | NRG Yield, Inc., Class C | 1,092,072 | ||||||
19,107 | Ormat Technologies, Inc. | 1,128,459 | ||||||
48,534 | Otter Tail Corp. | 1,917,093 | ||||||
65,709 | Pattern Energy Group, Inc. | 1,446,912 | ||||||
16,016 | SJW Corp. | 782,221 | ||||||
84,556 | South Jersey Industries, Inc. | 3,172,541 | ||||||
100,668 | TerraForm Global, Inc., Class A | 478,173 | ||||||
106,539 | TerraForm Power, Inc., Class A(b)(c) | 1,341,326 | ||||||
22,725 | Unitil Corp. | 1,100,572 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Utilities (continued) | ||||||||
8,481 | York Water Co. (The) | $ | 318,038 | |||||
|
| |||||||
30,089,626 | ||||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $1,429,307,281)—99.9% | 1,630,657,170 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—7.4% | ||||||||
121,440,868 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $121,440,868) | 121,440,868 | ||||||
|
| |||||||
Total Investments (Cost $1,550,748,149)—107.3% | 1,752,098,038 | |||||||
Other assets less liabilities—(7.3)% | (119,570,653 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 1,632,527,385 | ||||||
|
|
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, 2017. |
(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, 2017. |
(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 2I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 41 |
|
Statements of Assets and Liabilities
April 30, 2017
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) | $ | 34,575,234 | $ | 143,054,936 | $ | 4,890,975,266 | $ | 1,630,657,170 | ||||||||
Affiliated investments, at value | 61,657 | 1,109,967 | 61,662,844 | 121,440,868 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total investments, at value | 34,636,891 | 144,164,903 | 4,952,638,110 | 1,752,098,038 | ||||||||||||
Receivables: | ||||||||||||||||
Dividends | 4,702 | 37,411 | 5,622,241 | 570,746 | ||||||||||||
Securities lending | — | 834 | 82,849 | 301,896 | ||||||||||||
Foreign tax reclaims | — | — | 3,391 | — | ||||||||||||
Investments sold | — | — | — | 3,834,201 | ||||||||||||
Other assets | 652 | 1,200 | 6,682 | 2,203 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Assets | 34,642,245 | 144,204,348 | 4,958,353,273 | 1,756,807,084 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Liabilities: | ||||||||||||||||
Due to custodian | — | — | 1,248,036 | 1,807,168 | ||||||||||||
Payables: | ||||||||||||||||
Collateral upon return of securities loaned | — | 1,020,505 | 56,940,680 | 121,440,868 | ||||||||||||
Accrued advisory fees | 7,144 | 57,543 | 1,078,672 | 344,674 | ||||||||||||
Accrued trustees’ and officer’s fees | 17,879 | 32,217 | 128,526 | 46,810 | ||||||||||||
Accrued expenses | 47,597 | 42,330 | 1,870,022 | 640,179 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Liabilities | 72,620 | 1,152,595 | 61,265,936 | 124,279,699 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 34,569,625 | $ | 143,051,753 | $ | 4,897,087,337 | $ | 1,632,527,385 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets Consist of: | ||||||||||||||||
Shares of beneficial interest | $ | 65,396,997 | $ | 342,894,446 | $ | 4,418,003,546 | $ | 1,551,037,976 | ||||||||
Undistributed net investment income | (27,592 | ) | (31,138 | ) | 8,775,000 | 1,168,429 | ||||||||||
Undistributed net realized gain (loss) | (37,486,650 | ) | (210,167,891 | ) | (218,733,240 | ) | (121,028,909 | ) | ||||||||
Net unrealized appreciation | 6,686,870 | 10,356,336 | 689,042,031 | 201,349,889 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 34,569,625 | $ | 143,051,753 | $ | 4,897,087,337 | $ | 1,632,527,385 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 400,000 | 1,700,000 | 47,700,000 | 13,850,000 | ||||||||||||
Net asset value | $ | 86.42 | $ | 84.15 | $ | 102.66 | $ | 117.87 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Market price | $ | 86.38 | $ | 84.16 | $ | 102.67 | $ | 117.82 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Unaffiliated investments, at cost | $ | 27,888,364 | $ | 132,698,600 | $ | 4,202,042,205 | $ | 1,429,307,281 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Affiliated investments, at cost | $ | 61,657 | $ | 1,109,967 | $ | 61,553,874 | $ | 121,440,868 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total investments, at cost | $ | 27,950,021 | $ | 133,808,567 | $ | 4,263,596,079 | $ | 1,550,748,149 | ||||||||
|
|
|
|
|
|
|
| |||||||||
(a) Includes securities on loan with an aggregate value of | $ | — | $ | 1,031,481 | $ | 54,989,960 | $ | 117,300,156 | ||||||||
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 42 |
|
For the year ended April 30, 2017
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 | $ | 235,806 | $ | 1,601,169 | $ | 102,803,632 | $ | 20,209,642 | ||||||||
Affiliated dividend income | 276 | 370 | 234,342 | 4,819 | ||||||||||||
Securities lending income | — | 7,819 | 804,632 | 2,783,030 | ||||||||||||
Foreign withholding tax | (1,174 | ) | (182 | ) | (5,311 | ) | (18,778 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total Income | 234,908 | 1,609,176 | 103,837,295 | 22,978,713 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Expenses: | ||||||||||||||||
Advisory fees | 170,634 | 694,776 | 12,953,156 | 4,180,686 | ||||||||||||
Accounting & administration fees | 36,827 | 36,827 | 833,837 | 270,471 | ||||||||||||
Sub-licensing fees | 26,208 | 41,724 | 4,021,035 | 1,297,639 | ||||||||||||
Professional fees | 25,875 | 30,617 | 79,082 | 42,270 | ||||||||||||
Trustees’ and officer’s fees | 7,818 | 9,510 | 75,546 | 28,085 | ||||||||||||
Custodian & transfer agent fees | 4,367 | 6,407 | 95,206 | 52,303 | ||||||||||||
Other expenses | 18,207 | 23,832 | 167,800 | 48,335 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Expenses | 289,936 | 843,693 | 18,225,662 | 5,919,789 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Less: Waivers | (85,298 | ) | (10,141 | ) | (810,212 | ) | (299,926 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Expenses | 204,638 | 833,552 | 17,415,450 | 5,619,863 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Investment Income | 30,270 | 775,624 | 86,421,845 | 17,358,850 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Realized and Unrealized Gain (Loss): | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investment securities | (2,305,012 | ) | (12,622,048 | ) | (77,236,390 | ) | (48,969,471 | ) | ||||||||
In-kind redemptions | 4,217,353 | 28,707,787 | 233,576,845 | 134,924,982 | ||||||||||||
Foreign currencies | — | — | — | 159 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized gain | 1,912,341 | 16,085,739 | 156,340,455 | �� | 85,955,670 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in unrealized appreciation on investment securities | 5,369,013 | 6,403,892 | 418,335,665 | 184,066,542 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized and unrealized gain | 7,281,354 | 22,489,631 | 574,676,120 | 270,022,212 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets resulting from operations | $ | 7,311,624 | $ | 23,265,255 | $ | 661,097,965 | $ | 287,381,062 | ||||||||
|
|
|
|
|
|
|
|
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, 2017 and 2016
PowerShares DWA NASDAQ Momentum Portfolio (DWAQ) | PowerShares Dynamic Market Portfolio (PWC) | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Operations: | ||||||||||||||||
Net investment income (loss) | $ | 30,270 | $ | (37,908 | ) | $ | 775,624 | $ | 1,747,478 | |||||||
Net realized gain (loss) | 1,912,341 | (4,266,521 | ) | 16,085,739 | (858,735 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) | 5,369,013 | (2,129,082 | ) | 6,403,892 | (1,716,563 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 7,311,624 | (6,433,511 | ) | 23,265,255 | (827,820 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net investment income | (29,253 | ) | (22,077 | ) | (1,505,949 | ) | (1,698,632 | ) | ||||||||
Return of capital | (35,078 | ) | (2,759 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (64,331 | ) | (24,836 | ) | (1,505,949 | ) | (1,698,632 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shareholder Transactions: | ||||||||||||||||
Proceeds from shares sold | 19,779,660 | 35,446,415 | 222,152,171 | 152,722,956 | ||||||||||||
Value of shares repurchased | (27,370,608 | ) | (24,097,986 | ) | (243,981,797 | ) | (176,024,640 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from shares transactions | (7,590,948 | ) | 11,348,429 | (21,829,626 | ) | (23,301,684 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Increase (Decrease) in Net Assets | (343,655 | ) | 4,890,082 | (70,320 | ) | (25,828,136 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 34,913,280 | 30,023,198 | 143,122,073 | 168,950,209 | ||||||||||||
|
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|
|
|
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| |||||||||
End of year | $ | 34,569,625 | $ | 34,913,280 | $ | 143,051,753 | $ | 143,122,073 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income (loss) at end of year | $ | (27,592 | ) | $ | (28,618 | ) | $ | (31,138 | ) | $ | 347,577 | |||||
|
|
|
|
|
|
|
| |||||||||
Changes in Shares Outstanding: | ||||||||||||||||
Shares sold | 250,000 | 450,000 | 2,850,000 | 2,050,000 | ||||||||||||
Shares repurchased | (350,000 | ) | (350,000 | ) | (3,150,000 | ) | (2,350,000 | ) | ||||||||
Shares outstanding, beginning of year | 500,000 | 400,000 | 2,000,000 | 2,300,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding, end of year | 400,000 | 500,000 | 1,700,000 | 2,000,000 | ||||||||||||
|
|
|
|
|
|
|
|
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) | |||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||
$ | 86,421,845 | $ | 92,339,251 | $ | 17,358,850 | $ | 14,578,380 | |||||||
156,340,455 | 319,111,469 | 85,955,670 | 27,325,820 | |||||||||||
418,335,665 | (458,584,354 | ) | 184,066,542 | (101,820,682 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||
661,097,965 | (47,133,634 | ) | 287,381,062 | (59,916,482 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||
(87,957,739 | ) | (96,826,783 | ) | (19,236,098 | ) | (14,367,669 | ) | |||||||
— | — | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||
(87,957,739 | ) | (96,826,783 | ) | (19,236,098 | ) | (14,367,669 | ) | |||||||
|
|
|
|
|
|
|
| |||||||
792,919,263 | 761,845,771 | 624,686,726 | 284,803,033 | |||||||||||
(611,372,688 | ) | (1,033,501,636 | ) | (367,598,913 | ) | (261,733,949 | ) | |||||||
|
|
|
|
|
|
|
| |||||||
181,546,575 | (271,655,865 | ) | 257,087,813 | 23,069,084 | ||||||||||
|
|
|
|
|
|
|
| |||||||
754,686,801 | (415,616,282 | ) | 525,232,777 | (51,215,067 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||
4,142,400,536 | 4,558,016,818 | 1,107,294,608 | 1,158,509,675 | |||||||||||
|
|
|
|
|
|
|
| |||||||
$ | 4,897,087,337 | $ | 4,142,400,536 | $ | 1,632,527,385 | $ | 1,107,294,608 | |||||||
|
|
|
|
|
|
|
| |||||||
$ | 8,775,000 | $ | 10,310,894 | $ | 1,168,429 | $ | 2,493,309 | |||||||
|
|
|
|
|
|
|
| |||||||
7,900,000 | 8,600,000 | 5,750,000 | 3,000,000 | |||||||||||
(6,150,000 | ) | (11,950,000 | ) | (3,250,000 | ) | (2,850,000 | ) | |||||||
45,950,000 | 49,300,000 | 11,350,000 | 11,200,000 | |||||||||||
|
|
|
|
|
|
|
| |||||||
47,700,000 | 45,950,000 | 13,850,000 | 11,350,000 | |||||||||||
|
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|
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|
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|
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| 45 |
|
PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)
Year Ended April 30, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 69.83 | $ | 75.06 | $ | 64.34 | $ | 55.40 | $ | 51.32 | ||||||||||
Net investment income (loss)(a) | 0.07 | (0.06 | ) | 0.06 | 0.21 | 0.71 | (b) | |||||||||||||
Net realized and unrealized gain (loss) on investments | 16.65 | (5.11 | ) | 10.66 | 9.00 | 4.18 | ||||||||||||||
Total from investment operations | 16.72 | (5.17 | ) | 10.72 | 9.21 | 4.89 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.06 | ) | (0.05 | ) | — | (0.27 | ) | (0.81 | ) | |||||||||||
Return of capital | (0.07 | ) | (0.01 | ) | — | — | — | |||||||||||||
Total distributions | (0.13 | ) | (0.06 | ) | — | (0.27 | ) | (0.81 | ) | |||||||||||
Net asset value at end of year | $ | 86.42 | $ | 69.83 | $ | 75.06 | $ | 64.34 | $ | 55.40 | ||||||||||
Market price at end of year(c) | $ | 86.38 | $ | 69.82 | $ | 75.10 | $ | 64.32 | $ | 55.32 | ||||||||||
Net Asset Value Total Return(d) | 23.98 | % | (6.90 | )% | 16.66 | % | 16.64 | % | 9.75 | % | ||||||||||
Market Price Total Return(d) | 23.95 | % | (6.96 | )% | 16.76 | % | 16.77 | % | 9.63 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 34,570 | $ | 34,913 | $ | 30,023 | $ | 25,734 | $ | 22,160 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.60 | % | 0.60 | % | 0.60 | % | 0.60 | %(e) | 0.60 | % | ||||||||||
Expenses, prior to Waivers | 0.85 | % | 0.81 | % | 0.96 | % | 0.91 | %(e) | 0.95 | % | ||||||||||
Net investment income (loss), after Waivers | 0.09 | % | (0.09 | )% | 0.09 | % | 0.32 | % | 1.42 | %(b) | ||||||||||
Portfolio turnover rate(f) | 89 | % | 118 | % | 154 | % | 296 | % | 118 | % |
(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, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 71.56 | $ | 73.46 | $ | 70.27 | $ | 56.26 | $ | 46.78 | ||||||||||
Net investment income(a) | 0.43 | 0.82 | 0.68 | 0.60 | 0.82 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 12.98 | (1.91 | ) | 3.25 | 13.99 | 9.51 | ||||||||||||||
Total from investment operations | 13.41 | (1.09 | ) | 3.93 | 14.59 | 10.33 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.82 | ) | (0.81 | ) | (0.74 | ) | (0.58 | ) | (0.85 | ) | ||||||||||
Net asset value at end of year | $ | 84.15 | $ | 71.56 | $ | 73.46 | $ | 70.27 | $ | 56.26 | ||||||||||
Market price at end of year(b) | $ | 84.16 | $ | 71.55 | $ | 73.40 | $ | 70.27 | $ | 56.23 | ||||||||||
Net Asset Value Total Return(c) | 18.88 | % | (1.50 | )% | 5.58 | % | 26.09 | % | 22.39 | % | ||||||||||
Market Price Total Return(c) | 18.91 | % | (1.43 | )% | 5.49 | % | 26.15 | % | 22.40 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 143,052 | $ | 143,122 | $ | 168,950 | $ | 186,219 | $ | 140,658 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.60 | % | 0.60 | % | 0.59 | % | 0.60 | % | 0.60 | % | ||||||||||
Expenses, prior to Waivers | 0.61 | % | 0.60 | % | 0.59 | % | 0.60 | % | 0.60 | % | ||||||||||
Net investment income, after Waivers | 0.56 | % | 1.13 | % | 0.93 | % | 0.94 | % | 1.68 | % | ||||||||||
Portfolio turnover rate(d) | 231 | % | 231 | % | 237 | % | 244 | % | 166 | % |
(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, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 90.15 | $ | 92.45 | $ | 85.42 | $ | 71.42 | $ | 59.73 | ||||||||||
Net investment income(a) | 1.86 | 1.93 | 1.72 | 1.45 | 1.31 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 12.56 | (2.23 | ) | 6.93 | 13.89 | 11.66 | ||||||||||||||
Total from investment operations | 14.42 | (0.30 | ) | 8.65 | 15.34 | 12.97 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (1.91 | ) | (2.00 | ) | (1.62 | ) | (1.34 | ) | (1.28 | ) | ||||||||||
Net asset value at end of year | $ | 102.66 | $ | 90.15 | $ | 92.45 | $ | 85.42 | $ | 71.42 | ||||||||||
Market price at end of year(b) | $ | 102.67 | $ | 90.13 | $ | 92.43 | $ | 85.37 | $ | 71.42 | ||||||||||
Net Asset Value Total Return(c) | 16.16 | % | (0.23 | )% | 10.19 | % | 21.68 | % | 22.06 | % | ||||||||||
Market Price Total Return(c) | 16.19 | % | (0.24 | )% | 10.23 | % | 21.61 | % | 22.09 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 4,897,087 | $ | 4,142,401 | $ | 4,558,017 | $ | 3,305,696 | $ | 1,778,450 | ||||||||||
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 | % | 0.41 | % | 0.43 | % | ||||||||||
Net investment income, after Waivers | 1.93 | % | 2.19 | % | 1.92 | % | 1.84 | % | 2.10 | % | ||||||||||
Portfolio turnover rate(d) | 11 | % | 12 | % | 10 | % | 12 | % | 13 | % |
(a) | Based on average shares outstanding. |
(b) | The mean between the last bid and ask prices. |
(c) | Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. 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, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 97.56 | $ | 103.44 | $ | 96.35 | $ | 77.76 | $ | 66.71 | ||||||||||
Net investment income(a) | 1.30 | 1.25 | 1.38 | 0.98 | 1.13 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 20.46 | (5.93 | ) | 7.04 | 18.52 | 11.08 | ||||||||||||||
Total from investment operations | 21.76 | (4.68 | ) | 8.42 | 19.50 | 12.21 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (1.45 | ) | (1.20 | ) | (1.33 | ) | (0.91 | ) | (1.16 | ) | ||||||||||
Net asset value at end of year | $ | 117.87 | $ | 97.56 | $ | 103.44 | $ | 96.35 | $ | 77.76 | ||||||||||
Market price at end of year(b) | $ | 117.82 | $ | 97.55 | $ | 103.45 | $ | 96.38 | $ | 77.67 | ||||||||||
Net Asset Value Total Return(c) | 22.44 | % | (4.49 | )% | 8.80 | % | 25.22 | % | 18.56 | % | ||||||||||
Market Price Total Return(c) | 22.40 | % | (4.52 | )% | 8.78 | % | 25.40 | % | 18.41 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 1,632,527 | $ | 1,107,295 | $ | 1,158,510 | $ | 958,731 | $ | 563,763 | ||||||||||
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 | % | 0.42 | % | 0.42 | % | 0.43 | % | ||||||||||
Net investment income, after Waivers | 1.20 | % | 1.30 | % | 1.39 | % | 1.08 | % | 1.64 | % | ||||||||||
Portfolio turnover rate(d) | 29 | % | 28 | % | 26 | % | 31 | % | 30 | % |
(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, 2017
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, 2017, 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.” Shares of Dynamic Market Portfolio and FTSE RAFI US 1000 Portfolio are listed and traded on NYSE Arca, Inc., and Shares of DWA NASDAQ Momentum Portfolio and FTSE RAFI US 1500 Small-Mid Portfolio are listed and traded on The NASDAQ Stock Market LLC. Prior to December 7, 2016, Shares of DWA NASDAQ Momentum Portfolio were 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 | |
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 following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.
Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services—Investment Companies.
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 |
|
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 Mid-Capitalization Company Risk. For Dynamic Market Portfolio and FTSE RAFI US 1500 Small-Mid Portfolio, investing in securities of small- and mid-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 mid-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 accounting principles generally accepted in the United States of America (“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.
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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”), any Trustee who is not an affiliate of the Adviser or Distributor (or any of their affiliates) and who is otherwise an “interested person” of the Trust under the 1940 Act (an “Unaffiliated Trustee”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees and any Unaffiliated Trustee, 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. Accounting Estimates
The preparation of the financial statements in accordance with 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.
I. Securities Lending
During the fiscal year ended April 30, 2017, Dynamic Market Portfolio, 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
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these loans is generally 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 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, 2018. 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, 2018. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2018. 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, 2019, 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, 2017, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:
DWA NASDAQ Momentum Portfolio | $ | 85,298 | ||
Dynamic Market Portfolio | 10,141 | |||
FTSE RAFI US 1000 Portfolio | 810,212 | |||
FTSE RAFI US 1500 Small-Mid Portfolio | 299,926 |
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 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 DWA NASDAQ Momentum Portfolio and Dynamic Market Portfolio, the expenses borne by the Adviser are not subject to recapture.
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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, 2017 are as follows:
Total Potential Recapture Amounts | Potential Recapture Amounts Expiring | |||||||||||||||
4/30/18 | 4/30/19 | 4/30/20 | ||||||||||||||
FTSE RAFI US 1000 Portfolio | $ | 2,467,520 | $ | 811,780 | $ | 851,900 | $ | 803,840 | ||||||||
FTSE RAFI US 1500 Small-Mid Portfolio | 877,258 | 320,530 | 259,243 | 297,485 |
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 Limited and Research Affiliates LLC | |
FTSE RAFI US 1500 Small-Mid Portfolio | FTSE International Limited and Research Affiliates LLC |
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, 2017.
FTSE RAFI US 1000 Portfolio
Value April 30, 2016 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain (Loss) | Value April 30, 2017 | Dividend Income | ||||||||||||||||||||||
Invesco Ltd. | $ | 3,147,763 | $ | 684,827 | $ | (257,924 | ) | $ | 210,726 | $ | (15,080 | ) | $ | 3,770,312 | $ | 115,620 | ||||||||||||
Invesco Mortgage Capital, Inc. REIT | 875,047 | 193,448 | (345,740 | ) | 298,640 | (69,543 | ) | 951,852 | 106,372 | |||||||||||||||||||
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Total Investments in Affiliates | $ | 4,022,810 | $ | 878,275 | $ | (603,664 | ) | $ | 509,366 | $ | (84,623 | ) | $ | 4,722,164 | $ | 221,992 | ||||||||||||
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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. |
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As of April 30, 2017, 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.
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, 2017 and 2016:
2017 | 2016 | |||||||||||||||
Ordinary Income | Return of Capital | Ordinary Income | Return of Capital | |||||||||||||
DWA NASDAQ Momentum Portfolio | $ | 29,253 | $ | 35,078 | $ | 22,077 | $ | 2,759 | ||||||||
Dynamic Market Portfolio | 1,505,949 | — | 1,698,632 | — | ||||||||||||
FTSE RAFI US 1000 Portfolio | 87,957,739 | — | 96,826,783 | — | ||||||||||||
FTSE RAFI US 1500 Small-Mid Portfolio | 19,236,098 | — | 14,367,669 | — |
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** | $ | — | $ | (17,173 | ) | $ | 6,640,385 | $ | (36,467,721 | ) | $ | (982,863 | ) | $ | 65,396,997 | $ | 34,569,625 | |||||||||||
Dynamic Market Portfolio | — | (31,138 | ) | 10,176,135 | (205,945,819 | ) | (4,041,871 | ) | 342,894,446 | 143,051,753 | ||||||||||||||||||
FTSE RAFI US 1000 Portfolio | 8,896,145 | (121,145 | ) | 625,677,458 | (95,385,223 | ) | (59,983,444 | ) | 4,418,003,546 | 4,897,087,337 | ||||||||||||||||||
FTSE RAFI US 1500 Small-Mid Portfolio | 2,180,979 | (44,433 | ) | 159,821,617 | (58,250,243 | ) | (22,218,511 | ) | 1,551,037,976 | 1,632,527,385 |
* | 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 $10,419 and Post –October Capital Losses of $972,444. |
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, 2017.
Post-effective/no expiration | ||||||||||||||||||||||||
2018 | 2019 | Short-Term | Long-Term | Total* | Expired | |||||||||||||||||||
DWA NASDAQ Momentum Portfolio | $ | 14,947,690 | $ | 3,683,431 | $ | 17,836,600 | $ | — | $ | 36,467,721 | $ | 15,764,010 | ||||||||||||
Dynamic Market Portfolio | 104,214,879 | 15,461,574 | 84,940,699 | 1,328,667 | 205,945,819 | 96,635,542 | ||||||||||||||||||
FTSE RAFI US 1000 Portfolio | 49,808,238 | 38,490,195 | 4,543,924 | 2,542,866 | 95,385,223 | 36,351,059 | ||||||||||||||||||
FTSE RAFI US 1500 Small-Mid Portfolio | 5,168,127 | 2,475,894 | 18,355,986 | 32,250,236 | 58,250,243 | 4,933,892 |
* | 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, 2017, 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 | $ | 31,414,929 | $ | 34,410,976 | ||||
Dynamic Market Portfolio | 334,197,156 | 333,672,270 | ||||||
FTSE RAFI US 1000 Portfolio | 498,607,014 | 498,256,678 | ||||||
FTSE RAFI US 1500 Small-Mid Portfolio | 417,665,684 | 418,504,770 |
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For the fiscal year ended April 30, 2017, in-kind transactions associated with creations and redemptions were as follows:
Cost of Securities Received | Value of Securities Delivered | |||||||
DWA NASDAQ Momentum Portfolio | $ | 19,787,247 | $ | 24,400,922 | ||||
Dynamic Market Portfolio | 221,964,536 | 244,503,107 | ||||||
FTSE RAFI US 1000 Portfolio | 792,164,260 | 608,683,938 | ||||||
FTSE RAFI US 1500 Small-Mid Portfolio | 621,779,418 | 364,320,388 |
Gains (losses) on in-kind transactions are generally not considered taxable gains (losses) for federal income tax purposes.
At April 30, 2017, 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 | Cost | |||||||||||||
DWA NASDAQ Momentum Portfolio | $ | 6,860,546 | $ | (220,161 | ) | $ | 6,640,385 | $ | 27,996,506 | |||||||
Dynamic Market Portfolio | 14,515,969 | (4,339,834 | ) | 10,176,135 | 133,988,768 | |||||||||||
FTSE RAFI US 1000 Portfolio | 796,972,538 | (171,295,080 | ) | 625,677,458 | 4,326,960,652 | |||||||||||
FTSE RAFI US 1500 Small-Mid Portfolio | 264,605,536 | (104,783,919 | ) | 159,821,617 | 1,592,276,421 |
Note 8. Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of in-kind transactions and expired capital loss carryforwards, 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, 2017, the reclassifications were as follows:
Undistributed Net Investment Income | Undistributed Net Realized Gain (Loss) | Shares of Beneficial Interest | ||||||||||
DWA NASDAQ Momentum Portfolio | $ | 9 | $ | 11,644,037 | $ | (11,644,046 | ) | |||||
Dynamic Market Portfolio | 351,610 | 69,030,679 | (69,382,289 | ) | ||||||||
FTSE RAFI US 1000 Portfolio | — | (180,225,067 | ) | 180,225,067 | ||||||||
FTSE RAFI US 1500 Small-Mid Portfolio | 552,368 | (123,409,772 | ) | 122,857,404 |
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, any Unaffiliated Trustee, 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, each Independent Trustee or Unaffiliated 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
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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.
Certain transaction fees may be charged by the Funds for creations and redemptions, which are treated as increases in capital.
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 and Unaffiliated Trustee is also indemnified against certain liabilities arising out of the performance of his duties to the Trust pursuant to an Indemnification Agreement between such 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 of PowerShares Exchange-Traded Fund Trust and Shareholders 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:
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”) as of April 30, 2017, 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 as of April 30, 2017 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Chicago, IL
June 23, 2017
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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, 2017.
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 the 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, 2016 | Ending Account Value April 30, 2017 | 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 | $ | 1,174.40 | 0.60 | % | $ | 3.23 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.82 | 0.60 | 3.01 | ||||||||||||
PowerShares Dynamic Market Portfolio (PWC) | ||||||||||||||||
Actual | 1,000.00 | 1,141.60 | 0.60 | 3.19 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.82 | 0.60 | 3.01 | ||||||||||||
PowerShares FTSE RAFI US 1000 Portfolio (PRF) | ||||||||||||||||
Actual | 1,000.00 | 1,129.30 | 0.39 | 2.06 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.86 | 0.39 | 1.96 | ||||||||||||
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) | ||||||||||||||||
Actual | 1,000.00 | 1,171.90 | 0.39 | 2.10 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.86 | 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, 2017. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 181/365. Expense ratios for the most recent six-month period may differ from expenses 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, 2017:
Qualified Dividend Income* | Dividends Received Deduction* | |||||||||
PowerShares DWA NASDAQ Momentum Portfolio | 100 | % | 100 | % | ||||||
PowerShares Dynamic Market Portfolio | 100 | % | 100 | % | ||||||
PowerShares FTSE RAFI US 1000 Portfolio | 100 | % | 100 | % | ||||||
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio | 93 | % | 85 | % |
* | 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 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 (as defined below) overseen by each Independent Trustee and the other directorships, if any, held by an Independent Trustee are shown below.
The information is current as of April 30, 2017.
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). | 135 | 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. | 135 | 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; 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). | 135 | 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- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 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). | 135 | 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). | 135 | 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); President and Chief Executive Officer, Stone Pillar Investments, Ltd. (2016-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). | 135 | 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- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser. |
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Trustees and Officers (continued)
The Unaffiliated Trustee, his term of office and length of time served, his principal business occupations during at least the past five years, the number of portfolios in the Fund Complex (as defined below) overseen by the Unaffiliated Trustee and the other directorships, if any, held by the Unaffiliated Trustee, are shown below.
The information is current as of April 30, 2017.
Name, Address and Year of Birth of Unaffiliated Trustee | 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 Unaffiliated Trustee | Other Directorships Held by Unaffiliated Trustee 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). | 135 | None |
* | This is the date the Unaffiliated Trustee began serving the Trust. The Unaffiliated Trustee serves an indefinite term, until his successor is elected. |
** | Effective May 18, 2016, Mr. Nussbaum became an Unaffiliated Trustee. |
*** | Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser. |
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Trustees and Officers (continued)
The Interested Trustee 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 (as defined below) overseen by the Interested Trustees and the other directorships, if any, held by the Interested Trustee are shown below.
The information is current as of April 30, 2017.
Name, Address and Year of Birth of Interested Trustee | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex** Overseen by Interested Trustee | Other Directorships Held by Interested Trustee 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 Holding Company (US), Inc., Invesco Finance, Inc., Invesco Group Services, Inc., Invesco North American Holdings, Inc. and INVESCO Asset Management (Bermuda) Ltd.; Executive Vice President, Invesco Investments (Bermuda) Ltd., Manager, Horizon Flight Works LLC; Director and Secretary, Invesco Services (Bahamas) Private Limited; formerly, Director and Chairman, INVESCO Funds Group, Inc., Senior Vice President, Secretary and General Counsel, Invesco Advisers, Inc. (2003-2006); Director, Invesco Investments (Bermuda) Ltd. (2008-2016); 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. | 135 | None |
* | This is the date the Interested Trustee began serving the Trust. The Interested Trustee serves an indefinite term, until his successor is elected. |
** | Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 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 and Principal 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). | |||
Adam Henkel—1980 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chief Compliance Officer | Since 2017 | Chief Compliance Officer of Invesco PowerShares Capital Management LLC (2017-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 and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2017-Present); formerly, Senior Counsel, Invesco, Ltd. (2013-2017); and Assistant Vice President, U.S. Bancorp Fund Services, LLC (2010-2013). | |||
Steven M. Hill—1964 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Vice President and Treasurer | Since 2012 | 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). |
* | This is the date the Officer 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 and Principal Executive Officer, The Invesco Funds (2016-Present); Treasurer, The Invesco Funds (2008-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 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); Manager and Assistant Secretary, Invesco Indexing LLC (2017-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.) (2011-Present); 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 date the Officer 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 11, 2017, 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 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 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, (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 the Funds.
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. (“Invesco”), 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, 2016, 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 Invesco’s Global Performance Measurement and Risk Group, an independent organization within Invesco, with respect to general expected tracking error ranges and various explanations for any tracking error. The Trustees noted that for each applicable
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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)
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.
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 contractual advisory fee, net advisory fee, and gross and net expense ratio. The Trustees also compared each Fund’s contractual advisory fee and net expense ratio to information compiled by the Adviser from Lipper Inc. databases on the net 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 contractual 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 (The net advisory fees, after giving effect to the Expense Caps as defined below, was -0.01% for PowerShares Russell 2000 Pure Growth 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 as defined below, were -0.06%, -0.19% and -0.62%, 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 contractual 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, 2018, 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 contractual advisory fees for certain Funds were equal to or lower than the median net advisory fees of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the contractual advisory fees for all of the Funds were lower than the median net 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 AchieversTM Portfolio | X | |||||||
PowerShares CleantechTM Portfolio | X | |||||||
PowerShares Dividend AchieversTM Portfolio | 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 |
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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 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 | 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 | ||||
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 | X | ||||
PowerShares Global Listed Private Equity Portfolio | N/A | X | ||||
PowerShares Golden Dragon China Portfolio | X | N/A | X | |||
PowerShares High Yield Equity Dividend AchieversTM Portfolio | X | |||||
PowerShares International Dividend AchieversTM Portfolio | X | N/A | 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 contractual 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 AchieversTM Portfolio | X | |||||
PowerShares CleantechTM Portfolio | X | |||||
PowerShares Dividend AchieversTM 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 |
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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 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 | 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 | |||||
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 | X | |||
PowerShares Russell Midcap Pure Growth Portfolio | 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 AchieversTM Portfolio | X | X | ||||
PowerShares International Dividend AchieversTM Portfolio | N/A | 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 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. |
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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)
In response to questions from the Independent Trustees, the Adviser provided supplemental information regarding each of PowerShares Dynamic Energy Exploration & Production Portfolio, PowerShares Dynamic Large Cap Growth Portfolio, PowerShares Global Listed Private Equity Portfolio and PowerShares Russell Top 200 Pure Growth Portfolio’s advisory fees and total expenses and the Lipper peer data. The Adviser explained in detail its view that it believes that the advisory fees and total expenses for these Funds are competitive and generally in line with other comparable funds in the marketplace, noting, in particular, the unique underlying investment strategy and complexity of each Fund, the limited number of peers in the Lipper data, and/or the differing pricing philosophy of certain of the peers.
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 the Funds, 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 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.powershares.com.
P-PS-AR-2 | ||||||
©2017 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | ||||||
powershares.com 800 983 0903 | @PowerShares |
April 30, 2017 |
2017 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 | ||||
37 | ||||
38 | ||||
39 | ||||
57 | ||||
60 | ||||
64 | ||||
72 | ||||
74 | ||||
76 | ||||
79 | ||||
81 | ||||
82 | ||||
Statements of Assets and Liabilities | 88 | |||
Statements of Operations | 90 | |||
Statements of Changes in Net Assets | 92 | |||
Financial Highlights | 96 | |||
Notes to Financial Statements | 105 | |||
Report of Independent Registered Public Accounting Firm | 116 | |||
Fees and Expenses | 117 | |||
Tax Information | 119 | |||
Trustees and Officers | 120 | |||
Board Considerations Regarding Continuation of Investment Advisory Agreement | 126 |
| 2 |
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US Equity
During the fiscal year ended April 30, 2017, the US economy continued to expand and strengthen, with unemployment declining and inflation ticking upward somewhat. Signs of an improving economy prompted the US Federal Reserve to raise interest rates in December 2016 and again in March 2017. Major US stock market indexes posted gains for the reporting period, with most hitting record highs following the US presidential election. Investors seemed to believe that the new administration’s plans to reduce tax rates, scale back regulations and increase infrastructure spending had the potential to stimulate economic growth.
While US and overseas stock markets were jolted by the UK’s decision in June 2016 to leave the European Union, markets recovered relatively quickly. During the second half of calendar 2016, small-cap stocks led the US market while large-cap stocks lagged—but that reversed in the first quarter of calendar 2017. Near the close of the fiscal year, headlines out of Washington, DC, suggested that enacting significant regulatory and tax reform might be somewhat more difficult than previously anticipated; this was a slight negative for investor sentiment. For the reporting period as a whole, information technology and financials were the strongest-performing sectors, while telecommunication services and energy were the weakest-performing sectors.
| 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 capitalization companies that comprise the Index.
NYSE Group, Inc. (the “Index Provider”) considers a company to be a large capitalization company if it falls within the Index model. The Index for the Fund is composed of 50 large capitalization U.S. growth stocks that, strictly in accordance with its guidelines and mandated procedures, the Index Provider includes 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 Index Provider Intellidex model. 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, 2017, on a market price basis, the Fund returned 14.57%. On a net asset value (“NAV”) basis, the Fund returned 14.46%. During the same time period, the Index returned 15.20%. 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 slippage associated with the portfolio’s quarterly rebalance process.
During this same time period, the Russell 1000® Growth Index (the “Benchmark Index”) returned 19.50%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 610 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 because its performance comparison is a useful measure for investors as a broad representation of the U.S. 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 health care sector and most underweight the industrials sector during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s relative
underweight allocation in the industrials and consumer discretionary sectors.
For the fiscal year ended April 30, 2017, the information technology sector contributed most significantly to the Fund’s return, followed by the health care and consumer discretionary sectors, respectively. The materials sector detracted most significantly from the Fund’s return, followed by the energy sector.
Positions that contributed most significantly to the Fund’s return included Amazon.com, Inc., a consumer discretionary company (portfolio average weight of 3.46%), and NVIDIA Corp., an information technology company (portfolio average weight of 1.18%). Positions that detracted most significantly from the Fund’s return included Bristol-Myers Squibb Co., a health care company (portfolio average weight of 3.22%), and NIKE, Inc., Class B, a consumer discretionary company (no longer held at fiscal year-end).
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Information Technology | 36.0 | |||
Consumer Discretionary | 20.7 | |||
Health Care | 14.9 | |||
Energy | 8.3 | |||
Consumer Staples | 7.5 | |||
Industrials | 5.7 | |||
Financials | 4.1 | |||
Telecommunication Services | 1.5 | |||
Materials | 1.3 | |||
Other Assets Less Liabilities | (0.0) | |||
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
Facebook, Inc., Class A | 3.6 | |||
Alphabet, Inc., Class A | 3.5 | |||
Amazon.com, Inc. | 3.5 | |||
Home Depot, Inc. (The) | 3.5 | |||
UnitedHealth Group, Inc. | 3.5 | |||
Microsoft Corp. | 3.4 | |||
Mastercard, Inc., Class A | 3.4 | |||
Starbucks Corp. | 3.4 | |||
Comcast Corp., Class A | 3.4 | |||
Philip Morris International, Inc. | 3.3 | |||
Total | 34.5 |
| 4 |
|
PowerShares Dynamic Large Cap Growth Portfolio (PWB) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
Index | 1 Year | 3 Years Average Annualized | 3 Years | 5 Years Average Annualized | 5 Years | 10 Years Average Annualized | 10 Years | Fund Inception† | ||||||||||||||||||||||||||||||||
Average Annualized | Cumulative | |||||||||||||||||||||||||||||||||||||||
Dynamic Large Cap Growth IntellidexSM Index | 15.20 | % | 12.37 | % | 41.90 | % | 14.82 | % | 99.61 | % | 8.62 | % | 128.59 | % | 8.63 | % | 173.52 | % | ||||||||||||||||||||||
Russell 1000® Growth Index | 19.50 | 12.11 | 40.91 | 13.87 | 91.44 | 8.88 | 134.10 | 9.15 | 189.83 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 14.46 | 11.69 | 39.33 | 14.13 | 93.67 | 7.92 | 114.29 | 7.92 | 152.64 | |||||||||||||||||||||||||||||||
Market Price Return | 14.57 | 11.71 | 39.41 | 14.15 | 93.78 | 7.92 | 114.30 | 7.91 | 152.28 |
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. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.57%. The Financial Highlights section of the Shareholder 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 powershares.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 |
|
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 capitalization companies that comprise the Index.
NYSE Group, Inc. (“NYSE Group” or the “Index Provider”) considers a company to be a large capitalization company if it falls within the Index model. The Index for the Fund is composed of 50 large capitalization U.S. value stocks that, strictly in accordance with its guidelines and mandated procedures, the Index Provider includes 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 NYSE Group Intellidex model. 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, 2017, on a market price basis, the Fund returned 20.14%. On a net asset value (“NAV”) basis, the Fund returned 20.06%. During the same time period, the Index returned 20.80%. 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 the 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 16.55%. 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 because its performance comparison is a useful measure for investors as a broad representation of the U.S. 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 the energy sector during the fiscal year ended April 30, 2017. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to the Fund’s relative overweight allocation in the information technology sector.
For the fiscal year ended April 30, 2017, the financials sector contributed most significantly to the Fund’s return, followed by the information technology and industrials sectors, respectively. The consumer discretionary sector detracted most significantly from the Fund’s return, followed by the energy sector.
Positions that contributed most significantly to the Fund’s return included JPMorgan Chase & Co., a financials company (portfolio average weight of 3.39%), and CSX Corp., an industrials company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Target Corp., a consumer discretionary company (portfolio average weight of 0.62%), and Gilead Sciences, Inc., a health care company (no longer held at fiscal year-end).
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Financials | 28.5 | |||
Information Technology | 24.9 | |||
Health Care | 18.8 | |||
Industrials | 11.4 | |||
Consumer Staples | 5.0 | |||
Telecommunication Services | 3.2 | |||
Materials | 2.8 | |||
Consumer Discretionary | 2.6 | |||
Energy | 1.4 | |||
Utilities | 1.4 | |||
Other Assets Less Liabilities | (0.0) | |||
Top Ten Fund Holdings as of April 30, 2017 | ||||
Security | ||||
Wal-Mart Stores, Inc. | 3.6 | |||
Apple, Inc. | 3.6 | |||
Oracle Corp. | 3.6 | |||
Johnson & Johnson | 3.4 | |||
Cisco Systems, Inc. | 3.4 | |||
Intel Corp. | 3.4 | |||
Pfizer, Inc. | 3.4 | |||
Citigroup, Inc. | 3.3 | |||
JPMorgan Chase & Co. | 3.2 | |||
Bank of America Corp. | 3.2 | |||
Total | 34.1 |
| 6 |
|
PowerShares Dynamic Large Cap Value Portfolio (PWV) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
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 Value IntellidexSM Index | 20.80 | % | 9.11 | % | 29.88 | % | 14.40 | % | 95.90 | % | 8.59 | % | 127.98 | % | 10.31 | % | 229.66 | % | ||||||||||||||||||||||
Russell 1000® Value Index | 16.55 | 8.26 | 26.89 | 13.32 | 86.85 | 5.53 | 71.28 | 7.11 | 130.55 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 20.06 | 8.44 | 27.51 | 13.67 | 89.74 | 7.87 | 113.38 | 9.58 | 204.05 | |||||||||||||||||||||||||||||||
Market Price Return | 20.14 | 8.47 | 27.63 | 13.69 | 89.97 | 7.88 | 113.44 | 9.57 | 203.72 |
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. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.57%. The Financial Highlights section of the Shareholder 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 powershares.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. |
| 7 |
|
EQWS | Manager’s Analysis | |
PowerShares Russell 2000 Equal Weight Portfolio (EQWS) |
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 Russell 2000® Equal Weight Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the component securities that comprise the 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 capitalization-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 will invest in all of the component securities of the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 23.11%. On a net asset value (“NAV”) basis, the Fund returned 23.21%. During the same time period, the Index returned 23.58%. 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 2000® Index (the “Benchmark Index”) returned 25.63%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 2,000 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 because its performance
comparison is a useful measure for investors as a broad representation of the U.S. small cap 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, 2017, which both contributed to the Fund’s underperformance.
For the fiscal year ended April 30, 2017, the industrials sector contributed most significantly to the Fund’s return, followed by the information technology and financials sectors, respectively. There were no detracting sectors.
Positions that contributed most significantly to the Fund’s return included Straight Path Communications, Inc., Class B, a telecommunication services company (portfolio average weight of 0.23%), and Clayton Williams Energy, Inc., an energy company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included GNC Holdings, Inc., Class A, a consumer discretionary company (portfolio average weight of 0.17%), and Cobalt International Energy, Inc., an energy company (portfolio average weight of 0.11%).
| 8 |
|
PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Industrials | 14.0 | |||
Information Technology | 13.4 | |||
Consumer Discretionary | 11.7 | |||
Health Care | 11.2 | |||
Consumer Staples | 10.8 | |||
Energy | 9.4 | |||
Financials | 8.5 | |||
Utilities | 7.2 | |||
Materials | 6.9 | |||
Telecommunication Services | 4.4 | |||
Real Estate | 2.4 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.1 |
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
Straight Path Communications, Inc., Class B | 0.8 | |||
General Communication, Inc., Class A | 0.3 | |||
AdvancePierre Foods Holdings, Inc. | 0.3 | |||
Sanderson Farms, Inc. | 0.3 | |||
PetMed Express, Inc. | 0.3 | |||
Core-Mark Holding Co., Inc. | 0.3 | |||
Calavo Growers, Inc. | 0.3 | |||
GNC Holdings, Inc., Class A | 0.3 | |||
SUPERVALU, Inc. | 0.3 | |||
National Beverage Corp. | 0.3 | |||
Total | 3.5 |
* | Excluding money market fund holdings. |
| 9 |
|
PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
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® Equal Weight Index† | 23.58 | % | 8.15 | % | 26.50 | % | 12.35 | % | 79.02 | % | 5.74 | % | 74.76 | % | 6.14 | % | 86.03 | % | ||||||||||||||||||||||
Russell 2000® Index | 25.63 | 9.03 | 29.63 | 12.95 | 83.84 | 7.05 | 97.57 | 7.24 | 107.02 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 23.21 | 7.80 | 25.28 | 11.92 | 75.63 | 5.13 | 64.86 | 5.51 | 74.77 | |||||||||||||||||||||||||||||||
Market Price Return | 23.11 | 7.81 | 25.29 | 11.95 | 75.81 | 5.12 | 64.83 | 5.51 | 74.73 |
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, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 1.17% and the net annual operating expense ratio was indicated as 0.25%. The Financial Highlights section of the Shareholder 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 powershares.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-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 RAFI® Fundamental Small Core 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, 2017. |
†† | Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund. |
| 10 |
|
PXSG | Manager’s Analysis | |
PowerShares Russell 2000 Pure Growth Portfolio (PXSG) |
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 Russell 2000® Pure Growth Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the component securities that comprise the 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 U.S. 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, 2017, on a market price basis, the Fund returned 22.82%. On a net asset value (“NAV”) basis, the Fund returned 23.02%. During the same time period, the Index returned 23.13%. 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 income received from the securities lending program in which the Fund participates.
During this same time period, the Russell 2000® Growth Index (the “Benchmark Index”) returned 24.06%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,160 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 small cap growth stocks. The Benchmark Index was selected for its recognition in the marketplace, and because 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 financials sector during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s underweight allocation in the materials sector.
For the fiscal year ended April 30, 2017, the information technology sector contributed most significantly to the Fund’s return, followed by the health care and industrial sectors, respectively. The consumer staples sector detracted most significantly from the Fund’s return, followed by the energy sector.
Positions that contributed most significantly to the Fund’s return included Extreme Networks, Inc., an information technology company (portfolio average weight of 0.74%), and ZELTIQ Aesthetics, Inc., a health care company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Diplomat Pharmacy, Inc., a health care company (portfolio average weight of 0.40%), and Zoe’s Kitchen, Inc., a consumer discretionary company (portfolio average weight of 0.51%).
| 11 |
|
PowerShares Russell 2000 Pure Growth Portfolio (PXSG) (continued)
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Information Technology | 34.9 | |||
Health Care | 24.5 | |||
Consumer Discretionary | 16.4 | |||
Industrials | 13.9 | |||
Consumer Staples | 3.1 | |||
Materials | 2.5 | |||
Real Estate | 2.4 | |||
Financials | 1.6 | |||
Telecommunication Services | 0.7 | |||
Money Market Fund Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* as of April 30, 2017 | ||||
Security | ||||
LogMeIn, Inc. | 1.4 | |||
Supernus Pharmaceuticals, Inc. | 1.4 | |||
Extreme Networks, Inc. | 1.3 | |||
MiMedx Group, Inc. | 1.3 | |||
Repligen Corp. | 1.2 | |||
Cavium, Inc. | 1.1 | |||
Builders FirstSource, Inc. | 1.1 | |||
Universal Display Corp. | 1.1 | |||
Nexstar Media Group, Inc., Class A | 1.0 | |||
Pegasystems, Inc. | 1.0 | |||
Total | 11.9 |
* | Excluding money market fund holdings. |
| 12 |
|
PowerShares Russell 2000 Pure Growth Portfolio (PXSG) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
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 Growth Index† | 23.13 | % | 6.98 | % | 22.43 | % | 11.19 | % | 69.96 | % | 5.41 | % | 69.43 | % | 6.31 | % | 110.39 | % | ||||||||||||||||||||||
Russell 2000® Growth Index | 24.06 | 9.27 | 30.48 | 12.89 | 83.31 | 7.97 | 115.35 | 8.68 | 175.22 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 23.02 | 6.77 | 21.71 | 10.89 | 67.67 | 4.84 | 60.46 | 5.75 | 97.41 | |||||||||||||||||||||||||||||||
Market Price Return | 22.82 | 6.77 | 21.72 | 10.91 | 67.80 | 4.84 | 60.40 | 5.73 | 96.95 |
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, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.67% and the net annual operating expense ratio was indicated as 0.39%. The Financial Highlights section of the Shareholder 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 powershares.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-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 RAFI® Fundamental Small Growth 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, 2017. |
†† | Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund. |
| 13 |
|
PXSV | Manager’s Analysis | |
PowerShares Russell 2000 Pure Value Portfolio (PXSV) |
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 Russell 2000® Pure Value Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the component securities that comprise the 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 U.S. 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, 2017, on a market price basis, the Fund returned 25.54%. On a net asset value (“NAV”) basis, the Fund returned 25.64%. During the same time period, the Index returned 25.97%. 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 2000® Value Index (the “Benchmark Index”) returned 27.18%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,350 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 small cap value stocks. The Benchmark Index was selected for its recognition in the marketplace, and because 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 energy sector and most underweight in the industrials sector during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s overweight allocation in the energy sector.
For the fiscal year ended April 30, 2017, the financials sector contributed most significantly to the Fund’s return, followed by the industrials and consumer discretionary sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the telecommunication services sectors.
Positions that contributed most significantly to the Fund’s return included Clayton Williams Energy, Inc., an energy company (no longer held at fiscal year-end), and Veeco Instruments, Inc., an information technology company (portfolio average weight of 0.66%). Positions that detracted most significantly from the Fund’s return included Seadrill Ltd., an energy company (portfolio average weight of 0.31%), and Hornbeck Offshore Services, Inc., an energy company (portfolio average weight of 0.27%).
| 14 |
|
PowerShares Russell 2000 Pure Value Portfolio (PXSV) (continued)
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Financials | 41.1 | |||
Energy | 13.9 | |||
Industrials | 8.6 | |||
Real Estate | 8.4 | |||
Consumer Discretionary | 7.7 | |||
Information Technology | 7.5 | |||
Materials | 5.3 | |||
Utilities | 3.1 | |||
Health Care | 3.0 | |||
Telecommunication Services | 1.2 | |||
Consumer Staples | 0.3 | |||
Money Market Funds Plus Other Assets Less Liabilities | (0.1) | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
Veeco Instruments, Inc. | 1.1 | |||
DeVry Education Group, Inc. | 0.9 | |||
RetailMeNot, Inc. | 0.9 | |||
Beazer Homes USA, Inc. | 0.9 | |||
MGIC Investment Corp. | 0.9 | |||
Bridgepoint Education, Inc. | 0.8 | |||
Materion Corp. | 0.8 | |||
Columbus McKinnon Corp. | 0.8 | |||
Alon USA Energy, Inc. | 0.8 | |||
Haynes International, Inc. | 0.8 | |||
Total | 8.7 |
* | Excluding money market fund holdings. |
| 15 |
|
PowerShares Russell 2000 Pure Value Portfolio (PXSV) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
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† | 25.97 | % | 8.41 | % | 27.41 | % | 14.84 | % | 99.77 | % | 6.92 | % | 95.22 | % | 7.82 | % | 149.79 | % | ||||||||||||||||||||||
Russell 2000® Value Index | 27.18 | 8.71 | 28.46 | 12.96 | 83.93 | 6.02 | 79.51 | 7.48 | 140.35 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 25.64 | 8.15 | 26.50 | 14.56 | 97.35 | 6.41 | 86.15 | 7.25 | 134.23 | |||||||||||||||||||||||||||||||
Market Price Return | 25.54 | 8.13 | 26.41 | 14.58 | 97.52 | 6.41 | 86.11 | 7.24 | 133.87 |
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, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.50% and the net annual operating expense ratio was indicated as 0.39%. The Financial Highlights section of the Shareholder 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 powershares.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-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 RAFI® Fundamental Small Value 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, 2017. |
†† | Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund. |
| 16 |
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EQWM | Manager’s Analysis | |
PowerShares Russell Midcap Equal Weight Portfolio (EQWM) |
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 Russell Midcap® Equal Weight Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the component securities that comprise the 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 capitalization-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 will invest in all of the component securities of the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 14.11%. On a net asset value (“NAV”) basis, the Fund returned 14.00%. During the same time period, the Index returned 14.24%. 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 Russell Midcap® Index (the “Benchmark Index”) returned 16.70%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 800 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 because its performance
comparison is a useful measure for investors as a broad representation of the U.S. mid cap 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, 2017, which both contributed to the Fund’s underperformance.
For the fiscal year ended April 30, 2017, the information technology sector contributed most significantly to the Fund’s return, followed by the industrials and materials sectors, respectively. The energy sector was the only detracting sector.
Positions that contributed most significantly to the Fund’s return included Sprint Corp., a telecommunication services company (portfolio average weight of 0.30%), and NVIDIA Corp., an information technology company (portfolio average weight of 0.15%). Positions that detracted most significantly from the Fund’s return included Frontier Communications Corp., a telecommunication services company (portfolio average weight of 0.24%), and Rite Aid Corp., a consumer staples company (portfolio average weight of 0.29%).
| 17 |
|
PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Information Technology | 13.5 | |||
Industrials | 12.5 | |||
Health Care | 12.0 | |||
Consumer Staples | 11.0 | |||
Consumer Discretionary | 10.5 | |||
Energy | 10.2 | |||
Utilities | 9.1 | |||
Materials | 9.0 | |||
Financials | 5.7 | |||
Real Estate | 4.3 | |||
Telecommunication Services | 2.1 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.1 | |||
Top Ten Fund Holdings* as of April 30, 2017 | ||||
Security | ||||
Whole Foods Market, Inc. | 0.4 | |||
Pilgrim’s Pride Corp. | 0.4 | |||
Herbalife Ltd. | 0.4 | |||
Blue Buffalo Pet Products, Inc. | 0.4 | |||
Energizer Holdings, Inc. | 0.3 | |||
TreeHouse Foods, Inc. | 0.3 | |||
US Foods Holding Corp. | 0.3 | |||
Tyson Foods, Inc., Class A | 0.3 | |||
Ingredion, Inc. | 0.3 | |||
Spectrum Brands Holdings, Inc. | 0.3 | |||
Total | 3.4 |
* | Excluding money market fund holdings. |
| 18 |
|
PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
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® Equal Weight Index† | 14.24 | % | 8.20 | % | 26.69 | % | 12.38 | % | 79.28 | % | 6.25 | % | 83.37 | % | 7.09 | % | 104.15 | % | ||||||||||||||||||||||
Russell Midcap® Index | 16.70 | 8.97 | 29.39 | 13.34 | 87.00 | 7.62 | 108.41 | 8.16 | 126.33 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 14.00 | 7.92 | 25.69 | 12.02 | 76.42 | 5.73 | 74.55 | 6.56 | 93.83 | |||||||||||||||||||||||||||||||
Market Price Return | 14.11 | 7.98 | 25.89 | 12.01 | 76.30 | 5.72 | 74.49 | 6.57 | 93.91 |
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, 2018. 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 0.25%. The Financial Highlights section of the Shareholder 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 powershares.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-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 RAFI® Fundamental Mid Core 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, 2017. |
†† | Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund. |
| 19 |
|
PXMG | Manager’s Analysis | |
PowerShares Russell Midcap Pure Growth Portfolio (PXMG) |
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 Russell Midcap® Pure Growth Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the component securities that comprise the Index.
The Index is composed of securities selected from the Russell Midcap® Index, which includes 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, 2017, on a market price basis, the Fund returned 19.98%. On a net asset value (“NAV”) basis, the Fund returned 19.89%. During the same time period, the Index returned 20.32%. 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 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 15.83%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 470 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 midcap growth stocks. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the U.S. midcap 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 staples sector during the fiscal year ended April 30, 2017. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s overweight allocation in the healthcare sector.
For the fiscal year ended April 30, 2017, the information technology sector contributed most significantly to the Fund’s return, followed by the health care and industrials sectors, respectively. The materials sector was the only detracting sector.
Positions that contributed most significantly to the Fund’s return included NVIDIA Corp., an information technology company (portfolio average weight of 1.47%), and Incyte Corp., a health care company (portfolio average weight of 1.86%). Positions that detracted most significantly from the Fund’s return included Under Armour, Inc., Class A, a consumer discretionary company (portfolio average weight of 1.21%), and athenahealth, Inc., a health care company (portfolio average weight of 1.29%).
Sector Breakdown as of April 30, 2017 | ||||
Information Technology | 32.7 | |||
Health Care | 24.8 | |||
Consumer Discretionary | 21.1 | |||
Industrials | 9.8 | |||
Financials | 5.6 | |||
Real Estate | 3.7 | |||
Consumer Staples | 2.2 | |||
Telecommunication Services | 0.1 | |||
Money Market Funds Plus Other Assets Less Liabilities | (0.0) | |||
Top Ten Fund Holdings* as of April 30, 2017 | ||||
Security | ||||
Incyte Corp. | 2.4 | |||
ABIOMED, Inc. | 2.1 | |||
MarketAxess Holdings, Inc. | 2.1 | |||
NVIDIA Corp. | 2.0 | |||
Illumina, Inc. | 2.0 | |||
Align Technology, Inc. | 1.9 | |||
Veeva Systems, Inc., Class A | 1.9 | |||
ServiceNow, Inc. | 1.9 | |||
Arista Networks, Inc. | 1.9 | |||
Ulta Beauty, Inc. | 1.8 | |||
Total | 20.0 |
* | Excluding money market fund holdings. |
| 20 |
|
PowerShares Russell Midcap Pure Growth Portfolio (PXMG) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
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 Growth Index† | 20.32 | % | 6.26 | % | 19.98 | % | 10.43 | % | 64.21 | % | 6.27 | % | 83.62 | % | 8.30 | % | 163.64 | % | ||||||||||||||||||||||
Russell Midcap® Growth Index | 15.83 | 8.95 | 29.32 | 12.28 | 78.49 | 7.83 | 112.47 | 9.00 | 185.19 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 19.89 | 5.87 | 18.67 | 10.01 | 61.11 | 5.72 | 74.37 | 7.70 | 146.47 | |||||||||||||||||||||||||||||||
Market Price Return | 19.98 | 5.91 | 18.79 | 10.03 | 61.25 | 5.72 | 74.45 | 7.69 | 146.15 |
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, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.44% and the net annual operating expense ratio was indicated as 0.39%. The Financial Highlights section of the Shareholder 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 powershares.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-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 RAFI® Fundamental Mid Growth 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, 2017. |
†† | Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund. |
| 21 |
|
PXMV | Manager’s Analysis | |
PowerShares Russell Midcap Pure Value Portfolio (PXMV) |
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 Russell Midcap® Pure Value Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the component securities that comprise the Index.
The Index is composed of securities selected from the Russell Midcap® Index, which includes 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 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, 2017, on a market price basis, the Fund returned 16.64%. On a net asset value (“NAV”) basis, the Fund returned 16.60%. 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 Russell Midcap® Value Index (the “Benchmark Index”) returned 17.52%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 570 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 midcap value stocks. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the U.S. midcap 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 information technology sector during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s underweight allocation in the information technology sector.
For the fiscal year ended April 30, 2017, the financials 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 telecommunication services and information technology sectors, respectively.
Positions that contributed most significantly to the Fund’s return included SLM Corp., a financials company (portfolio average weight of 0.80%), and Assured Guaranty Ltd., a financials company (portfolio average weight of 1.21%). Positions that detracted most significantly from the Fund’s return included Frontier Communications Corp., a telecommunication services company (portfolio average weight of 0.69%), and First Solar, Inc., an information technology company (portfolio average weight of 0.67%).
| 22 |
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PowerShares Russell Midcap Pure Value Portfolio (PXMV) (continued)
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Financials | 29.0 | |||
Energy | 16.5 | |||
Utilities | 14.8 | |||
Real Estate | 11.6 | |||
Industrials | 10.2 | |||
Consumer Discretionary | 5.0 | |||
Information Technology | 4.7 | |||
Materials | 3.5 | |||
Telecommunication Services | 2.8 | |||
Health Care | 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, 2017 | ||||
Security | ||||
Assured Guaranty Ltd. | 1.7 | |||
Comerica, Inc. | 1.6 | |||
Popular, Inc. | 1.5 | |||
Chimera Investment Corp. | 1.5 | |||
Fifth Third Bancorp | 1.4 | |||
CIT Group, Inc. | 1.3 | |||
Timken Co. (The) | 1.3 | |||
MFA Financial, Inc. | 1.3 | |||
United Continental Holdings, Inc. | 1.3 | |||
Two Harbors Investment Corp. | 1.3 | |||
Total | 14.2 |
* | Excluding money market fund holdings. |
| 23 |
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PowerShares Russell Midcap Pure Value Portfolio (PXMV) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
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† | 17.00 | % | 8.83 | % | 28.91 | % | 15.38 | % | 104.51 | % | 6.76 | % | 92.42 | % | 8.54 | % | 170.98 | % | ||||||||||||||||||||||
Russell Midcap® Value Index | 17.52 | 8.86 | 29.01 | 14.26 | 94.78 | 7.16 | 99.70 | 9.05 | 186.61 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 16.60 | 8.47 | 27.61 | 14.97 | 100.87 | 6.21 | 82.72 | 7.91 | 152.44 | |||||||||||||||||||||||||||||||
Market Price Return | 16.64 | 8.48 | 27.66 | 15.00 | 101.11 | 6.21 | 82.75 | 7.90 | 152.15 |
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, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.54% and the net annual operating expense ratio was indicated as 0.39%. The Financial Highlights section of the Shareholder 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 powershares.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-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 RAFI® Fundamental Mid Value 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, 2017. |
†† | Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund. |
| 24 |
|
EQWL | Manager’s Analysis | |
PowerShares Russell Top 200 Equal Weight Portfolio (EQWL) |
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 Russell Top 200® Equal Weight Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the component securities that comprise the 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 represents the largest 200 companies within the Russell 3000® Index, an index measuring 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 capitalization-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 will invest in all of the component securities of the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 19.80%. On a net asset value (“NAV”) basis, the Fund returned 19.58%. During the same time period, the Index returned 19.91%. 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 18.03%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,000 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 large cap equity benchmark. The Benchmark Index was selected for its recognition in the marketplace, and because 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 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 health care sector and most underweight in the information technology sector during the fiscal year ended April 30, 2017. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s relative overweight allocation to the healthcare sector.
For the fiscal year ended April 30, 2017, the information technology sector contributed most significantly to the Fund’s return, followed by the financials and industrials sectors, respectively. There were no detracting sectors.
Positions that contributed most significantly to the Fund’s return included CSX Corp., an industrials company (portfolio average weight of 0.54%), and Applied Materials, Inc., an information technology company (portfolio average weight of 0.45%). Positions that detracted most significantly from the Fund’s return included Target Corp., a consumer discretionary company (portfolio average weight of 0.47%), and Gilead Sciences, Inc., a health care company (portfolio average weight of 0.47%).
| 25 |
|
PowerShares Russell Top 200 Equal Weight Portfolio (EQWL) (continued)
Sector Breakdown as of April 30, 2017 | ||||
Health Care | 16.5 | |||
Information Technology | 15.1 | |||
Financials | 15.1 | |||
Consumer Discretionary | 12.9 | |||
Industrials | 11.6 | |||
Consumer Staples | 10.3 | |||
Energy | 6.2 | |||
Materials | 5.0 | |||
Utilities | 3.4 | |||
Real Estate | 2.5 | |||
Telecommunication Services | 1.4 | |||
Money Market Fund Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* as of April 30, 2017 | ||||
Security | ||||
Vertex Pharmaceuticals, Inc. | 0.7 | |||
Yum China Holdings, Inc. | 0.6 | |||
Tesla, Inc. | 0.6 | |||
Bioverativ, Inc. | 0.6 | |||
Caterpillar, Inc. | 0.6 | |||
PayPal Holdings, Inc. | 0.6 | |||
Alphabet, Inc., Class C | 0.5 | |||
CSX Corp. | 0.5 | |||
HP, Inc. | 0.5 | |||
Boston Scientific Corp. | 0.5 | |||
Total | 5.7 |
* | Excluding money market fund holdings. |
| 26 |
|
PowerShares Russell Top 200 Equal Weight Portfolio (EQWL) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
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 Top 200® Equal Weight Index† | 19.91 | % | 10.37 | % | 34.45 | % | 14.46 | % | 96.45 | % | 8.04 | % | 116.72 | % | 8.49 | % | 133.71 | % | ||||||||||||||||||||||
Russell 1000® Index | 18.03 | 10.20 | 33.82 | 13.63 | 89.43 | 7.25 | 101.40 | 7.66 | 115.64 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 19.58 | 10.04 | 33.23 | 14.07 | 93.10 | 7.50 | 106.01 | 7.94 | 121.59 | |||||||||||||||||||||||||||||||
Market Price Return | 19.80 | 10.05 | 33.27 | 14.09 | 93.27 | 7.50 | 106.13 | 7.94 | 121.60 |
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, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.54% and the net annual operating expense ratio was indicated as 0.25%. The Financial Highlights section of the Shareholder 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 powershares.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-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 RAFI® Fundamental Large Core 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, 2017. |
†† | Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund. |
| 27 |
|
PXLG | Manager’s Analysis | |
PowerShares Russell Top 200 Pure Growth Portfolio (PXLG) |
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 Russell Top 200® Pure Growth Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the component securities that comprise the 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 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, 2017, on a market price basis, the Fund returned 18.09%. On a net asset value (“NAV”) basis, the Fund returned 18.06%. During the same time period, the Index returned 18.52%. 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 19.50%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 610 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 because its performance comparison is a useful measure for investors as a broad representation of the U.S. 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 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 information technology sector during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s underweight allocation in the information technology sector.
For the fiscal year ended April 30, 2017, the consumer discretionary sector contributed most significantly to the Fund’s return, followed by the information technology and health care sectors, respectively. The consumer staples sector was the only detracting sector.
Positions that contributed most significantly to the Fund’s return included Netflix, Inc., a consumer discretionary company (portfolio average weight of 2.83%), and Broadcom Ltd., an information technology company (portfolio average weight of 2.55%). Positions that detracted most significantly from the Fund’s return included Gilead Sciences, Inc., a health care company (portfolio average weight of 0.99%), and Monster Beverage Corp., a consumer staples company (portfolio average weight of 0.99%).
| 28 |
|
PowerShares Russell Top 200 Pure Growth Portfolio (PXLG) (continued)
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Consumer Discretionary | 30.3 | |||
Information Technology | 26.1 | |||
Health Care | 17.8 | |||
Consumer Staples | 9.3 | |||
Industrials | 7.0 | |||
Real Estate | 4.2 | |||
Materials | 3.4 | |||
Financials | 1.8 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.1 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
Netflix, Inc. | 3.6 | |||
Priceline Group, Inc. (The) | 3.6 | |||
Tesla, Inc. | 3.5 | |||
Amazon.com, Inc. | 3.2 | |||
Mastercard, Inc., Class A | 3.0 | |||
American Tower Corp. | 2.9 | |||
Celgene Corp. | 2.9 | |||
Broadcom Ltd. | 2.8 | |||
Boeing Co. (The) | 2.6 | |||
salesforce.com, inc. | 2.6 | |||
Total | 30.7 |
* | Excluding money market fund holdings. |
| 29 |
|
PowerShares Russell Top 200 Pure Growth Portfolio (PXLG) (continued)
Growth of a $10,000 Investment Since Inception†
Fund Performance History as of April 30, 2017
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® Pure Growth Index†† | 18.52 | % | 10.93 | % | 36.52 | % | 13.77 | % | 90.58 | % | 14.15 | % | 117.53 | % | ||||||||||||||||||
Russell 1000® Growth Index | 19.50 | 12.11 | 40.91 | 13.87 | 91.44 | 14.47 | 121.09 | |||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||
NAV Return | 18.06 | 10.50 | 34.93 | 13.32 | 86.83 | 13.70 | 112.63 | |||||||||||||||||||||||||
Market Price Return | 18.09 | 10.52 | 35.01 | 13.33 | 86.96 | 13.73 | 112.90 |
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. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.39%. The Financial Highlights section of the Shareholder 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 powershares.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-Russell Top 200® Pure Growth Index performance is comprised of the performance of the RAFI® Fundamental Large Growth 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, 2017. |
| 30 |
|
PXLV | Manager’s Analysis | |
PowerShares Russell Top 200 Pure Value Portfolio (PXLV) |
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 Russell Top 200® Pure Value Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the component securities that compose the 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, 2017, on a market price basis, the Fund returned 23.69%. On a net asset value (“NAV”) basis, the Fund returned 23.50%. During the same time period, the Index returned 24.00%. 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 Russell 1000® Value Index (the “Benchmark Index”) returned 16.55%. 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 because its performance comparison is a useful measure for investors as a broad representation of the U.S. 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 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 health care sector during the fiscal year ended April 30, 2017. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s overweight allocation in the financials sector.
For the fiscal year ended April 30, 2017, the financials sector contributed most significantly to the Fund’s return, followed by the industrials and information technology sectors, respectively. The real estate sector was the only detracting sector.
Positions that contributed most significantly to the Fund’s return included Morgan Stanley, a financials company (portfolio average weight of 2.61%), and CSX Corp., an industrials company (portfolio average weight of 1.84%). Positions that detracted most significantly from the Fund’s return included General Electric Co., an industrials company (no longer held at fiscal year-end), and Baker Hughes, Inc., an energy company (no longer held at fiscal year-end).
| 31 |
|
PowerShares Russell Top 200 Pure Value Portfolio (PXLV) (continued)
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Financials | 38.9 | |||
Energy | 16.3 | |||
Utilities | 12.7 | |||
Industrials | 9.5 | |||
Information Technology | 9.4 | |||
Consumer Staples | 4.4 | |||
Consumer Discretionary | 3.6 | |||
Health Care | 2.2 | |||
Materials | 1.6 | |||
Telecommunication Services | 1.1 | |||
Real Estate | 0.3 | |||
Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
Yahoo!, Inc. | 3.3 | |||
Morgan Stanley | 3.3 | |||
PNC Financial Services Group, Inc. (The) | 3.1 | |||
Citigroup, Inc. | 3.0 | |||
JPMorgan Chase & Co. | 2.9 | |||
CSX Corp. | 2.8 | |||
Duke Energy Corp. | 2.8 | |||
Bank of America Corp. | 2.8 | |||
Kinder Morgan, Inc. | 2.8 | |||
Eaton Corp. PLC | 2.7 | |||
Total | 29.5 |
| 32 |
|
PowerShares Russell Top 200 Pure Value Portfolio (PXLV) (continued)
Growth of a $10,000 Investment Since Inception†
Fund Performance History as of April 30, 2017
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® Pure Value Index†† | 24.00 | % | 9.63 | % | 31.75 | % | 14.88 | % | 100.06 | % | 13.57 | % | 111.16 | % | ||||||||||||||||||
Russell 1000® Value Index | 16.55 | 8.26 | 26.89 | 13.32 | 86.85 | 12.72 | 102.03 | |||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||
NAV Return | 23.50 | 9.22 | 30.30 | 14.46 | 96.44 | 13.15 | 106.58 | |||||||||||||||||||||||||
Market Price Return | 23.69 | 9.26 | 30.42 | 14.49 | 96.73 | 13.19 | 107.01 |
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, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.55% and the net annual operating expense ratio was indicated as 0.39%. The Financial Highlights section of the Shareholder 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
powershares.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-Russell Top 200® Pure Value Index performance is comprised of the performance of the RAFI® Fundamental Large Value 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, 2017. |
| 33 |
|
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”) considers a company to be a micro capitalization company if it falls within the Index model. 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 the lower threshold equal to a minimum capitalization of approximately 0.015% of the largest capitalization domestic company at the time of selection. The Index Provider, strictly in accordance with its guidelines and mandated procedures, selects companies for inclusion in the Index from a universe of 7,000 domestic companies. 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, 2017, on a market price basis, the Fund returned 23.81%. On a net asset value (“NAV”) basis, the Fund returned 23.87%. During the same time period, the Index returned 24.91%. 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 portfolio’s quarterly rebalance process.
During this same time period, the Russell Microcap® Index (the “Benchmark Index”) returned 25.03%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,490 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 benchmark similarly composed of micro-cap stocks. The Benchmark Index was selected for its recognition in the marketplace, and because 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, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index
during the period can be attributed due to fees and operating expenses that the Fund incurred during the period as well as the impact of trading costs associated with the portfolio’s quarterly rebalance process.
For the fiscal year ended April 30, 2017, the financials sector contributed most significantly to the Fund’s return, followed by the industrials and information technology sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the telecommunication services sector.
Positions that contributed most significantly to the Fund’s return included SodaStream International Ltd. (Israel), a consumer discretionary company (portfolio average weight of 0.29%), and Tivity Health, Inc., a health care company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Ocean Rig UDW, Inc., an energy company (no longer held at fiscal year-end), and Hornbeck Offshore Services, Inc., an energy company (no longer held at fiscal year-end).
| 34 |
|
PowerShares Zacks Micro Cap Portfolio (PZI) (continued)
Sector Breakdown as of April 30, 2017 | ||||
Financials | 45.1 | |||
Industrials | 12.9 | |||
Energy | 10.6 | |||
Information Technology | 8.9 | |||
Consumer Discretionary | 8.1 | |||
Real Estate | 5.0 | |||
Materials | 4.5 | |||
Health Care | 3.1 | |||
Consumer Staples | 1.3 | |||
Telecommunication Services | 0.3 | |||
Utilities | 0.2 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* as of April 30, 2017 | ||||
Security | ||||
RetailMeNot, Inc. | 0.4 | |||
CAI International, Inc. | 0.3 | |||
Southcross Energy Partners LP | 0.3 | |||
Resolute Forest Products, Inc. | 0.3 | |||
NL Industries, Inc. | 0.3 | |||
VOXX International Corp. | 0.3 | |||
DMC Global, Inc. | 0.3 | |||
Ring Energy, Inc. | 0.3 | |||
Exar Corp. | 0.3 | |||
Ultra Clean Holdings, Inc. | 0.3 | |||
Total | 3.1 |
* | Excluding money market fund holdings. |
| 35 |
|
PowerShares Zacks Micro Cap Portfolio (PZI) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
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 | ||||||||||||||||||||||||||||||||||||||
Zacks Micro Cap Index™ | 24.91 | % | 7.75 | % | 25.09 | % | 13.47 | % | 88.07 | % | 2.46 | % | 27.51 | % | 4.15 | % | 60.86 | % | ||||||||||||||||||||||
Russell Microcap® Index | 25.03 | 7.36 | 23.74 | 12.99 | 84.13 | 5.37 | 68.76 | 6.54 | 109.93 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 23.87 | 6.95 | 22.33 | 12.55 | 80.58 | 1.62 | 17.48 | 3.28 | 45.79 | |||||||||||||||||||||||||||||||
Market Price Return | 23.81 | 6.95 | 22.35 | 12.58 | 80.83 | 1.65 | 17.83 | 3.26 | 45.54 |
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, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 1.11%, including acquired fund fees and expenses of 0.11% and the net annual operating expense ratio was indicated as 0.81%. The Financial Highlights section of the Shareholder 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 powershares.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 Large Cap Growth Portfolio (PWB)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Consumer Discretionary—20.7% | ||||||||
16,749 | Amazon.com, Inc.(b) | $ | 15,492,657 | |||||
379,110 | Comcast Corp., Class A | 14,857,321 | ||||||
98,636 | Home Depot, Inc. (The) | 15,397,080 | ||||||
23,003 | O’Reilly Automotive, Inc.(b) | 5,708,194 | ||||||
3,736 | Priceline Group, Inc. (The)(b) | 6,899,719 | ||||||
90,436 | Ross Stores, Inc. | 5,878,340 | ||||||
1,206,549 | Sirius XM Holdings, Inc. | 5,972,418 | ||||||
247,633 | Starbucks Corp. | 14,872,838 | ||||||
63,025 | Time Warner, Inc. | 6,256,492 | ||||||
|
| |||||||
91,335,059 | ||||||||
|
| |||||||
Consumer Staples—7.5% | ||||||||
34,787 | Costco Wholesale Corp. | 6,175,388 | ||||||
56,301 | Hershey Co. (The) | 6,091,768 | ||||||
133,997 | Philip Morris International, Inc. | 14,852,228 | ||||||
115,659 | Sysco Corp. | 6,114,891 | ||||||
|
| |||||||
33,234,275 | ||||||||
|
| |||||||
Energy—8.3% | ||||||||
92,713 | Anadarko Petroleum Corp. | 5,286,495 | ||||||
102,004 | Baker Hughes, Inc. | 6,055,977 | ||||||
128,568 | Chevron Corp. | 13,718,206 | ||||||
115,007 | Halliburton Co. | 5,276,521 | ||||||
150,893 | Williams Partners LP | 6,176,051 | ||||||
|
| |||||||
36,513,250 | ||||||||
|
| |||||||
Financials—4.1% | ||||||||
49,928 | CME Group, Inc. | 5,801,134 | ||||||
83,183 | Marsh & McLennan Cos., Inc. | 6,166,356 | ||||||
46,773 | S&P Global, Inc. | 6,276,469 | ||||||
|
| |||||||
18,243,959 | ||||||||
|
| |||||||
Health Care—14.9% | ||||||||
121,396 | Baxter International, Inc. | 6,759,329 | ||||||
255,935 | Bristol-Myers Squibb Co. | 14,345,157 | ||||||
119,484 | Celgene Corp.(b) | 14,821,990 | ||||||
172,907 | Eli Lilly & Co. | 14,188,749 | ||||||
87,784 | UnitedHealth Group, Inc. | 15,351,666 | ||||||
|
| |||||||
65,466,891 | ||||||||
|
| |||||||
Industrials—5.7% | ||||||||
127,682 | CSX Corp. | 6,491,353 | ||||||
31,997 | FedEx Corp. | 6,069,831 | ||||||
99,354 | Republic Services, Inc. | 6,258,308 | ||||||
83,901 | Waste Management, Inc. | 6,106,315 | ||||||
|
| |||||||
24,925,807 | ||||||||
|
| |||||||
Information Technology—36.0% | ||||||||
49,944 | Accenture PLC, Class A | 6,058,207 | ||||||
51,479 | Adobe Systems, Inc.(b) | 6,884,802 | ||||||
16,771 | Alphabet, Inc., Class A(b) | 15,505,125 | ||||||
87,427 | Amphenol Corp., Class A | 6,321,846 | ||||||
74,957 | Analog Devices, Inc. | 5,711,723 | ||||||
169,171 | Applied Materials, Inc. | 6,870,034 | ||||||
60,186 | Automatic Data Processing, Inc. | 6,288,835 | ||||||
70,597 | Electronic Arts, Inc.(b) | 6,694,008 | ||||||
105,449 | Facebook, Inc., Class A(b) | 15,843,712 | ||||||
53,239 | Fiserv, Inc.(b) | 6,342,895 | ||||||
50,681 | Intuit, Inc. | 6,345,768 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
128,892 | Mastercard, Inc., Class A | $ | 14,992,718 | |||||
220,883 | Microsoft Corp. | 15,121,650 | ||||||
60,874 | NVIDIA Corp. | 6,349,158 | ||||||
101,260 | Paychex, Inc. | 6,002,693 | ||||||
161,869 | Visa, Inc., Class A | 14,765,690 | ||||||
67,415 | VMware, Inc., Class A(b) | 6,345,100 | ||||||
134,711 | Yahoo!, Inc.(b) | 6,494,417 | ||||||
|
| |||||||
158,938,381 | ||||||||
|
| |||||||
Materials—1.3% | ||||||||
166,004 | Southern Copper Corp. (Peru) | 5,871,562 | ||||||
|
| |||||||
Telecommunication Services—1.5% | ||||||||
98,553 | T-Mobile US, Inc.(b) | 6,629,660 | ||||||
|
| |||||||
Total Investments (Cost $385,869,240)—100.0% | 441,158,844 | |||||||
Other assets less liabilities—(0.0)% | (106,259 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 441,052,585 | ||||||
|
|
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.
| 37 |
|
Schedule of Investments(a)
PowerShares Dynamic Large Cap Value Portfolio (PWV)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks—100.0% | ||||||||
Consumer Discretionary—2.6% | ||||||||
490,345 | General Motors Co. | $ | 16,985,551 | |||||
281,091 | Target Corp. | 15,698,932 | ||||||
|
| |||||||
32,684,483 | ||||||||
|
| |||||||
Consumer Staples—5.0% | ||||||||
290,757 | Tyson Foods, Inc., Class A | 18,684,045 | ||||||
597,657 | Wal-Mart Stores, Inc. | 44,931,853 | ||||||
|
| |||||||
63,615,898 | ||||||||
|
| |||||||
Energy—1.4% | ||||||||
272,496 | Valero Energy Corp. | 17,605,967 | ||||||
|
| |||||||
Financials—28.5% | ||||||||
226,760 | Allstate Corp. (The) | 18,433,320 | ||||||
228,175 | American Express Co. | 18,082,869 | ||||||
1,733,896 | Bank of America Corp. | 40,469,133 | ||||||
703,052 | Citigroup, Inc. | 41,564,434 | ||||||
664,922 | Fifth Third Bancorp | 16,244,044 | ||||||
425,372 | Franklin Resources, Inc. | 18,337,787 | ||||||
467,674 | JPMorgan Chase & Co. | 40,687,638 | ||||||
392,129 | Morgan Stanley | 17,006,635 | ||||||
142,541 | PNC Financial Services Group, Inc. (The) | 17,069,285 | ||||||
467,262 | Progressive Corp. (The) | 18,559,647 | ||||||
164,762 | Prudential Financial, Inc. | 17,634,477 | ||||||
228,835 | State Street Corp. | 19,199,256 | ||||||
305,437 | SunTrust Banks, Inc. | 17,351,876 | ||||||
149,275 | Travelers Cos., Inc. (The) | 18,160,797 | ||||||
728,656 | Wells Fargo & Co. | 39,230,839 | ||||||
|
| |||||||
358,032,037 | ||||||||
|
| |||||||
Health Care—18.8% | ||||||||
244,924 | Amgen, Inc. | 40,000,988 | ||||||
111,428 | Anthem, Inc. | 19,821,927 | ||||||
64,147 | Biogen, Inc.(b) | 17,397,308 | ||||||
257,511 | Express Scripts Holding Co.(b) | 15,795,725 | ||||||
350,199 | Johnson & Johnson | 43,239,070 | ||||||
122,613 | McKesson Corp. | 16,956,152 | ||||||
647,217 | Merck & Co., Inc. | 40,341,035 | ||||||
1,251,297 | Pfizer, Inc. | 42,443,994 | ||||||
|
| |||||||
235,996,199 | ||||||||
|
| |||||||
Industrials—11.4% | ||||||||
396,213 | American Airlines Group, Inc. | 16,886,598 | ||||||
122,497 | Cummins, Inc. | 18,489,697 | ||||||
361,829 | Delta Air Lines, Inc. | 16,441,510 | ||||||
253,264 | Eaton Corp. PLC | 19,156,889 | ||||||
270,839 | PACCAR, Inc. | 18,073,086 | ||||||
318,989 | Southwest Airlines Co. | 17,933,561 | ||||||
171,185 | Union Pacific Corp. | 19,165,873 | ||||||
244,975 | United Continental Holdings, Inc.(b) | 17,199,695 | ||||||
|
| |||||||
143,346,909 | ||||||||
|
| |||||||
Information Technology—24.9% | ||||||||
312,161 | Apple, Inc. | 44,841,928 | ||||||
1,252,030 | Cisco Systems, Inc. | 42,656,662 | ||||||
662,750 | Corning, Inc. | 19,120,338 | ||||||
1,037,805 | HP, Inc. | 19,531,490 | ||||||
1,177,975 | Intel Corp. | 42,583,796 | ||||||
234,622 | International Business Machines Corp. | 37,607,560 | ||||||
777,910 | Micron Technology, Inc.(b) | 21,524,770 |
Number of Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Information Technology (continued) | ||||||||
992,065 | Oracle Corp. | $ | 44,603,242 | |||||
246,131 | TE Connectivity Ltd. | 19,043,156 | ||||||
244,873 | Western Digital Corp. | 21,810,838 | ||||||
|
| |||||||
313,323,780 | ||||||||
|
| |||||||
Materials—2.8% | ||||||||
288,234 | Dow Chemical Co. (The) | 18,101,095 | ||||||
196,125 | LyondellBasell Industries NV, Class A | 16,623,555 | ||||||
|
| |||||||
34,724,650 | ||||||||
|
| |||||||
Telecommunication Services—3.2% | ||||||||
1,015,951 | AT&T, Inc. | 40,262,138 | ||||||
|
| |||||||
Utilities—1.4% | ||||||||
507,651 | Exelon Corp. | 17,579,954 | ||||||
|
| |||||||
Total Investments (Cost $1,149,157,926)—100.0% | 1,257,172,015 | |||||||
Other assets less liabilities—(0.0)% | (199,338 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 1,256,972,677 | ||||||
|
|
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.
| 38 |
|
Schedule of Investments(a)
PowerShares Russell 2000 Equal Weight Portfolio (EQWS)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—99.9% | ||||||||
Consumer Discretionary—11.7% | ||||||||
791 | 1-800-Flowers.com, Inc., Class A(b) | $ | 8,503 | |||||
284 | Aaron’s, Inc. | 10,207 | ||||||
724 | Abercrombie & Fitch Co., Class A | 8,681 | ||||||
457 | Acushnet Holdings Corp. | 8,345 | ||||||
270 | AMC Entertainment Holdings, Inc., Class A | 8,181 | ||||||
617 | American Axle & Manufacturing Holdings, Inc.(b) | 10,853 | ||||||
588 | American Eagle Outfitters, Inc. | 8,285 | ||||||
431 | American Outdoor Brands Corp.(b) | 9,547 | ||||||
373 | American Public Education, Inc.(b) | 8,243 | ||||||
233 | America’s Car-Mart, Inc.(b) | 8,691 | ||||||
135 | Asbury Automotive Group, Inc.(b) | 8,262 | ||||||
2,127 | Ascena Retail Group, Inc.(b) | 8,317 | ||||||
662 | Ascent Capital Group, Inc., Class A(b) | 8,480 | ||||||
535 | At Home Group, Inc.(b) | 9,368 | ||||||
284 | AV Homes, Inc.(b) | 4,984 | ||||||
852 | Barnes & Noble Education, Inc.(b) | 8,869 | ||||||
926 | Barnes & Noble, Inc. | 7,917 | ||||||
322 | Bassett Furniture Industries, Inc. | 9,676 | ||||||
695 | Beazer Homes USA, Inc.(b) | 8,625 | ||||||
670 | Belmond Ltd., Class A (United Kingdom)(b) | 8,308 | ||||||
545 | Big 5 Sporting Goods Corp. | 8,393 | ||||||
168 | Big Lots, Inc. | 8,482 | ||||||
20 | Biglari Holdings, Inc.(b) | 8,533 | ||||||
212 | BJ’s Restaurants, Inc.(b) | 9,561 | ||||||
425 | Bloomin’ Brands, Inc. | 9,218 | ||||||
132 | Bob Evans Farms, Inc. | 8,810 | ||||||
416 | Bojangles’, Inc.(b) | 9,131 | ||||||
871 | Boot Barn Holdings, Inc.(b) | 9,241 | ||||||
395 | Boyd Gaming Corp.(b) | 8,959 | ||||||
766 | Bridgepoint Education, Inc.(b) | 9,345 | ||||||
117 | Bright Horizons Family Solutions, Inc.(b) | 8,906 | ||||||
451 | Buckle, Inc. (The) | 8,434 | ||||||
55 | Buffalo Wild Wings, Inc.(b) | 8,665 | ||||||
947 | Build-A-Bear Workshop, Inc.(b) | 9,849 | ||||||
552 | Caesars Acquisition Co., Class A(b) | 9,632 | ||||||
862 | Caesars Entertainment Corp.(b) | 9,568 | ||||||
306 | Caleres, Inc. | 8,819 | ||||||
716 | Callaway Golf Co. | 8,485 | ||||||
1,585 | Cambium Learning Group, Inc.(b) | 7,719 | ||||||
260 | Camping World Holdings, Inc., Class A | 8,039 | ||||||
99 | Capella Education Co. | 9,435 | ||||||
968 | Career Education Corp.(b) | 9,825 | ||||||
301 | Carriage Services, Inc. | 8,232 | ||||||
584 | Carrols Restaurant Group, Inc.(b) | 8,176 | ||||||
379 | Cato Corp. (The), Class A | 8,550 | ||||||
70 | Cavco Industries, Inc.(b) | 8,312 | ||||||
2,715 | Central European Media Enterprises Ltd., Class A (Bermuda)(b) | 11,132 | ||||||
1,066 | Century Casinos, Inc.(b) | 8,773 | ||||||
321 | Century Communities, Inc.(b) | 8,763 | ||||||
133 | Cheesecake Factory, Inc. (The) | 8,533 | ||||||
1,002 | Chegg, Inc.(b) | 9,028 | ||||||
582 | Chico’s FAS, Inc. | 8,043 | ||||||
77 | Children’s Place, Inc. (The) | 8,840 | ||||||
53 | Churchill Downs, Inc. | 8,840 | ||||||
285 | Chuy’s Holdings, Inc.(b) | 8,493 | ||||||
470 | Citi Trends, Inc. | 8,831 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Discretionary (continued) | ||||||||
509 | ClubCorp Holdings, Inc. | $ | 6,846 | |||||
331 | Collectors Universe, Inc. | 9,040 | ||||||
141 | Columbia Sportswear Co. | 7,983 | ||||||
976 | Conn’s, Inc.(b) | 17,178 | ||||||
2,052 | Container Store Group, Inc. (The)(b) | 8,454 | ||||||
190 | Cooper Tire & Rubber Co. | 7,277 | ||||||
74 | Cooper-Standard Holdings, Inc.(b) | 8,367 | ||||||
1,705 | Core-Mark Holding Co., Inc. | 59,709 | ||||||
52 | Cracker Barrel Old Country Store, Inc. | 8,330 | ||||||
1,223 | Crocs, Inc.(b) | 7,619 | ||||||
335 | CSS Industries, Inc. | 8,831 | ||||||
646 | Culp, Inc. | 20,737 | ||||||
40 | Daily Journal Corp.(b) | 8,361 | ||||||
442 | Dana, Inc. | 8,584 | ||||||
136 | Dave & Buster’s Entertainment, Inc.(b) | 8,705 | ||||||
147 | Deckers Outdoor Corp.(b) | 8,760 | ||||||
466 | Del Frisco’s Restaurant Group, Inc.(b) | 8,015 | ||||||
652 | Del Taco Restaurants, Inc.(b) | 8,574 | ||||||
474 | Delta Apparel, Inc.(b) | 8,309 | ||||||
671 | Denny’s Corp.(b) | 8,522 | ||||||
3,195 | Destination XL Group, Inc.(b) | 8,147 | ||||||
248 | DeVry Education Group, Inc. | 9,387 | ||||||
160 | DineEquity, Inc. | 9,046 | ||||||
103 | Dorman Products, Inc.(b) | 8,564 | ||||||
426 | DSW, Inc., Class A | 8,784 | ||||||
364 | Duluth Holdings, Inc., Class B(b) | 8,063 | ||||||
360 | E.W. Scripps Co. (The), Class A(b) | 8,021 | ||||||
702 | El Pollo Loco Holdings, Inc.(b) | 8,810 | ||||||
462 | Eldorado Resorts, Inc.(b) | 8,836 | ||||||
343 | Empire Resorts, Inc.(b) | 8,575 | ||||||
582 | Entercom Communications Corp., Class A | 7,362 | ||||||
1,335 | Entravision Communications Corp., Class A | 8,277 | ||||||
836 | Eros International PLC (India)(b) | 8,318 | ||||||
639 | Escalade, Inc. | 8,531 | ||||||
270 | Ethan Allen Interiors, Inc. | 8,046 | ||||||
824 | Etsy, Inc.(b) | 8,866 | ||||||
942 | Express, Inc.(b) | 8,129 | ||||||
364 | Fiesta Restaurant Group, Inc.(b) | 8,863 | ||||||
507 | Finish Line, Inc. (The), Class A | 8,016 | ||||||
193 | Five Below, Inc.(b) | 9,480 | ||||||
170 | Flexsteel Industries, Inc. | 9,030 | ||||||
526 | Fogo de Chao, Inc.(b) | 8,916 | ||||||
497 | Fossil Group, Inc.(b) | 8,573 | ||||||
295 | Fox Factory Holding Corp.(b) | 8,865 | ||||||
507 | Francesca’s Holdings Corp.(b) | 8,000 | ||||||
592 | Fred’s, Inc., Class A(c) | 8,714 | ||||||
415 | FTD Cos., Inc.(b) | 8,300 | ||||||
840 | Gaia, Inc.(b) | 9,198 | ||||||
1,000 | Gannett Co., Inc. | 8,360 | ||||||
146 | Genesco, Inc.(b) | 7,782 | ||||||
220 | Gentherm, Inc.(b) | 8,173 | ||||||
355 | G-III Apparel Group Ltd.(b) | 8,413 | ||||||
3,217 | Global Eagle Entertainment, Inc.(b) | 9,973 | ||||||
7,542 | GNC Holdings, Inc., Class A(c) | 58,677 | ||||||
621 | Golden Entertainment, Inc. | 8,719 | ||||||
974 | GoPro, Inc., Class A(b) | 8,035 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 39 |
|
PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Discretionary (continued) | ||||||||
118 | Grand Canyon Education, Inc.(b) | $ | 8,869 | |||||
590 | Gray Television, Inc.(b) | 8,643 | ||||||
3,139 | Green Brick Partners, Inc.(b) | 32,332 | ||||||
112 | Group 1 Automotive, Inc. | 7,722 | ||||||
745 | Guess?, Inc. | 8,314 | ||||||
501 | Habit Restaurants, Inc. (The), Class A(b) | 9,469 | ||||||
347 | Haverty Furniture Cos., Inc. | 8,554 | ||||||
87 | Helen of Troy Ltd.(b) | 8,178 | ||||||
737 | Hemisphere Media Group, Inc., Class A(b) | 8,586 | ||||||
284 | Hibbett Sports, Inc.(b) | 7,384 | ||||||
271 | Hooker Furniture Corp. | 11,775 | ||||||
621 | Horizon Global Corp.(b) | 8,750 | ||||||
853 | Houghton Mifflin Harcourt Co.(b) | 9,809 | ||||||
3,573 | Hovnanian Enterprises, Inc., Class A(b) | 8,361 | ||||||
225 | HSN, Inc. | 8,302 | ||||||
1,156 | Iconix Brand Group, Inc.(b) | 8,092 | ||||||
423 | Ilg, Inc. | 10,199 | ||||||
240 | IMAX Corp.(b) | 7,320 | ||||||
389 | Installed Building Products, Inc.(b) | 20,753 | ||||||
223 | International Speedway Corp., Class A | 8,273 | ||||||
342 | Intrawest Resorts Holdings, Inc.(b) | 8,064 | ||||||
162 | iRobot Corp.(b) | 12,918 | ||||||
321 | Isle of Capri Casinos, Inc.(b) | 7,402 | ||||||
844 | J. Alexander’s Holdings, Inc.(b) | 9,284 | ||||||
82 | Jack in the Box, Inc. | 8,362 | ||||||
1,509 | JAKKS Pacific, Inc.(b) | 7,394 | ||||||
881 | Jamba, Inc.(b) | 7,506 | ||||||
228 | Johnson Outdoors, Inc., Class A | 8,281 | ||||||
434 | K12, Inc.(b) | 8,181 | ||||||
422 | KB Home | 8,693 | ||||||
679 | Kirkland’s, Inc.(b) | 7,985 | ||||||
1,381 | Kona Grill, Inc.(b) | 7,872 | ||||||
600 | La Quinta Holdings, Inc.(b) | 8,466 | ||||||
420 | Lands’ End, Inc.(b) | 9,912 | ||||||
597 | Laureate Education, Inc., Class A(b) | 8,245 | ||||||
295 | La-Z-Boy, Inc. | 8,230 | ||||||
82 | LCI Industries | 8,294 | ||||||
256 | LGI Homes, Inc.(b) | 8,148 | ||||||
579 | Libbey, Inc. | 6,079 | ||||||
364 | Liberty Media Corp.-Liberty Braves, Class C(b) | 8,925 | ||||||
242 | Liberty Media Corp.-Liberty Formula One, Class C(b) | 8,475 | ||||||
570 | Liberty Tax, Inc., Class A | 8,008 | ||||||
590 | �� | Liberty TripAdvisor Holdings, Inc., Series A(b) | 8,673 | |||||
416 | Lifetime Brands, Inc. | 7,987 | ||||||
906 | Lindblad Expeditions Holdings, Inc.(b) | 8,607 | ||||||
95 | Lithia Motors, Inc., Class A | 9,077 | ||||||
253 | Loral Space & Communications, Inc.(b) | 9,703 | ||||||
2,562 | Luby’s, Inc.(b) | 7,532 | ||||||
434 | Lumber Liquidators Holdings, Inc.(b) | 10,655 | ||||||
339 | M/I Homes, Inc.(b) | 9,207 | ||||||
388 | Malibu Boats, Inc., Class A(b) | 8,940 | ||||||
262 | Marcus Corp. (The) | 8,856 | ||||||
756 | Marine Products Corp. | 9,042 | ||||||
380 | MarineMax, Inc.(b) | 7,733 | ||||||
83 | Marriott Vacations Worldwide Corp. | 9,145 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Discretionary (continued) | ||||||||
527 | MCBC Holdings, Inc. | $ | 8,827 | |||||
276 | MDC Holdings, Inc. | 8,559 | ||||||
885 | MDC Partners, Inc., Class A | 7,921 | ||||||
314 | Media General(b) | 93 | ||||||
129 | Meredith Corp. | 7,553 | ||||||
223 | Meritage Homes Corp.(b) | 8,686 | ||||||
845 | Modine Manufacturing Co.(b) | 10,224 | ||||||
280 | Monarch Casino & Resort, Inc.(b) | 8,252 | ||||||
156 | Monro Muffler Brake, Inc. | 8,089 | ||||||
287 | Motorcar Parts of America, Inc.(b) | 8,702 | ||||||
339 | Movado Group, Inc. | 7,933 | ||||||
364 | MSG Networks, Inc., Class A(b) | 9,082 | ||||||
133 | NACCO Industries, Inc., Class A | 11,258 | ||||||
134 | Nathan’s Famous, Inc.(b) | 9,139 | ||||||
656 | National CineMedia, Inc. | 7,787 | ||||||
460 | Nautilus, Inc.(b) | 8,372 | ||||||
794 | New Home Co., Inc. (The)(b) | 9,258 | ||||||
570 | New Media Investment Group, Inc. | 7,501 | ||||||
570 | New York Times Co. (The), Class A | 8,236 | ||||||
117 | Nexstar Media Group, Inc., Class A | 8,073 | ||||||
1,851 | Noodles & Co., Class A(b) | 10,828 | ||||||
149 | Nutrisystem, Inc. | 7,964 | ||||||
1,806 | Office Depot, Inc. | 8,976 | ||||||
250 | Ollie’s Bargain Outlet Holdings, Inc.(b) | 9,575 | ||||||
482 | Overstock.com, Inc.(b) | 8,363 | ||||||
152 | Oxford Industries, Inc. | 8,813 | ||||||
110 | Papa John’s International, Inc. | 8,697 | ||||||
586 | Party City Holdco, Inc.(b) | 9,376 | ||||||
474 | Penn National Gaming, Inc.(b) | 8,760 | ||||||
384 | Perry Ellis International, Inc.(b) | 7,880 | ||||||
2,626 | PetMed Express, Inc. | 60,661 | ||||||
1,165 | Pier 1 Imports, Inc. | 7,852 | ||||||
436 | Pinnacle Entertainment, Inc.(b) | 8,969 | ||||||
415 | Planet Fitness, Inc., Class A | 8,632 | ||||||
613 | Potbelly Corp.(b) | 8,551 | ||||||
2,762 | Radio One, Inc., Class D(b) | 8,286 | ||||||
510 | Reading International, Inc., Class A(b) | 8,022 | ||||||
1,181 | Red Lion Hotels Corp.(b) | 7,677 | ||||||
151 | Red Robin Gourmet Burgers, Inc.(b) | 8,871 | ||||||
380 | Red Rock Resorts, Inc., Class A | 8,884 | ||||||
683 | Regis Corp.(b) | 7,452 | ||||||
932 | Rent-A-Center, Inc.(c) | 9,963 | ||||||
220 | RH(b) | 10,553 | ||||||
3,259 | Ruby Tuesday, Inc.(b) | 8,310 | ||||||
412 | Ruth’s Hospitality Group, Inc. | 8,199 | ||||||
161 | Saga Communications, Inc., Class A | 8,251 | ||||||
1,198 | Salem Media Group, Inc. | 9,165 | ||||||
191 | Scholastic Corp. | 8,257 | ||||||
378 | Scientific Games Corp., Class A(b) | 8,978 | ||||||
995 | Sears Holdings Corp.(b)(c) | 10,169 | ||||||
471 | SeaWorld Entertainment, Inc. | 8,257 | ||||||
342 | Select Comfort Corp.(b) | 10,568 | ||||||
2,348 | Sequential Brands Group, Inc.(b) | 7,913 | ||||||
253 | Shake Shack, Inc., Class A(b) | 8,587 | ||||||
328 | Shoe Carnival, Inc. | 8,321 | ||||||
174 | Shutterfly, Inc.(b) | 9,031 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 40 |
|
PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Discretionary (continued) | ||||||||
205 | Sinclair Broadcast Group, Inc., Class A | $ | 8,087 | |||||
402 | Sonic Automotive, Inc., Class A | 7,879 | ||||||
353 | Sonic Corp. | 9,489 | ||||||
175 | Sotheby’s(b) | 8,288 | ||||||
420 | Speedway Motorsports, Inc. | 7,581 | ||||||
1,620 | Sportsman’s Warehouse Holdings, Inc.(b) | 6,626 | ||||||
4,178 | Stage Stores, Inc. | 12,033 | ||||||
169 | Standard Motor Products, Inc. | 8,590 | ||||||
2,962 | Stein Mart, Inc. | 7,316 | ||||||
216 | Steven Madden Ltd.(b) | 8,219 | ||||||
451 | Stoneridge, Inc.(b) | 8,844 | ||||||
300 | Strattec Security Corp. | 9,645 | ||||||
102 | Strayer Education, Inc. | 8,844 | ||||||
153 | Sturm Ruger & Co., Inc. | 9,249 | ||||||
318 | Superior Industries International, Inc. | 6,917 | ||||||
479 | Superior Uniform Group, Inc. | 8,737 | ||||||
560 | Tailored Brands, Inc. | 6,905 | ||||||
384 | Taylor Morrison Home Corp., Class A(b) | 8,870 | ||||||
130 | Tenneco, Inc. | 8,194 | ||||||
187 | Texas Roadhouse, Inc. | 8,767 | ||||||
437 | Tile Shop Holdings, Inc. | 9,330 | ||||||
937 | Tilly’s, Inc., Class A | 8,958 | ||||||
423 | Time, Inc. | 6,430 | ||||||
207 | TopBuild Corp.(b) | 10,596 | ||||||
306 | Tower International, Inc. | 8,293 | ||||||
695 | Townsquare Media, Inc., Class A(b) | 8,410 | ||||||
651 | TRI Pointe Group, Inc.(b) | 8,105 | ||||||
619 | tronc, Inc.(b) | 8,876 | ||||||
2,432 | Tuesday Morning Corp.(b) | 7,904 | ||||||
470 | UCP, Inc., Class A(b) | 5,382 | ||||||
737 | Unifi, Inc.(b) | 20,688 | ||||||
683 | Unique Fabricating, Inc. | 7,930 | ||||||
122 | Universal Electronics, Inc.(b) | 8,455 | ||||||
956 | Vera Bradley, Inc.(b) | 8,747 | ||||||
4,403 | Vince Holding Corp.(b)(c) | 4,403 | ||||||
422 | Vitamin Shoppe, Inc.(b) | 8,145 | ||||||
213 | Wayfair, Inc., Class A(b)(c) | 9,736 | ||||||
540 | Weight Watchers International, Inc.(b) | 11,275 | ||||||
893 | West Marine, Inc.(b) | 9,787 | ||||||
304 | Weyco Group, Inc. | 8,500 | ||||||
394 | William Lyon Homes, Class A(b) | 8,668 | ||||||
305 | Wingstop, Inc. | 8,976 | ||||||
73 | Winmark Corp. | 9,424 | ||||||
274 | Winnebago Industries, Inc. | 7,864 | ||||||
328 | Wolverine World Wide, Inc. | 7,908 | ||||||
375 | World Wrestling Entertainment, Inc., Class A | 8,036 | ||||||
1,225 | ZAGG, Inc.(b) | 8,698 | ||||||
478 | Zoe’s Kitchen, Inc.(b) | 8,628 | ||||||
471 | Zumiez, Inc.(b) | 8,454 | ||||||
|
| |||||||
2,554,395 | ||||||||
|
| |||||||
Consumer Staples—10.8% | ||||||||
1,728 | AdvancePierre Foods Holdings, Inc. | 70,191 | ||||||
6,262 | Amplify Snack Brands, Inc.(b)(c) | 56,358 | ||||||
1,386 | Andersons, Inc. (The) | 51,767 | ||||||
1,886 | Avon Products, Inc.(b) | 9,147 | ||||||
1,312 | B&G Foods, Inc. | 55,104 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Staples (continued) | ||||||||
357 | Boston Beer Co., Inc. (The), Class A(b) | $ | 51,533 | |||||
907 | Calavo Growers, Inc. | 59,499 | ||||||
1,419 | Cal-Maine Foods, Inc.(c) | 53,567 | ||||||
237 | Central Garden & Pet Co., Class A(b) | 8,349 | ||||||
3,837 | Chefs’ Warehouse, Inc. (The)(b) | 52,375 | ||||||
267 | Coca-Cola Bottling Co. Consolidated | 56,567 | ||||||
659 | Darling Ingredients, Inc.(b) | 9,971 | ||||||
2,771 | Dean Foods Co. | 54,700 | ||||||
311 | elf Beauty, Inc.(b) | 8,475 | ||||||
1,570 | Farmer Brothers Co.(b) | 55,735 | ||||||
910 | Fresh Del Monte Produce, Inc. | 55,783 | ||||||
4,855 | Freshpet, Inc.(b) | 57,046 | ||||||
247 | HRG Group, Inc.(b) | 4,942 | ||||||
1,213 | Ingles Markets, Inc., Class A | 56,647 | ||||||
220 | Inter Parfums, Inc. | 8,349 | ||||||
388 | J & J Snack Foods Corp. | 52,217 | ||||||
771 | John B. Sanfilippo & Son, Inc. | 56,668 | ||||||
410 | Lancaster Colony Corp. | 51,619 | ||||||
1,687 | Landec Corp.(b) | 23,196 | ||||||
2,758 | Limoneira Co. | 57,035 | ||||||
1,227 | Medifast, Inc. | 56,835 | ||||||
988 | MGP Ingredients, Inc. | 51,732 | ||||||
662 | National Beverage Corp. | 58,647 | ||||||
1,667 | Nutraceutical International Corp. | 52,844 | ||||||
542 | Oil-Dri Corp. of America | 22,054 | ||||||
2,771 | Omega Protein Corp. | 55,836 | ||||||
2,028 | Orchids Paper Products Co.(c) | 49,382 | ||||||
2,272 | Performance Food Group Co.(b) | 56,573 | ||||||
89 | PriceSmart, Inc. | 7,739 | ||||||
3,928 | Primo Water Corp.(b) | 47,018 | ||||||
288 | Revlon, Inc., Class A(b) | 7,474 | ||||||
534 | Sanderson Farms, Inc. | 61,826 | ||||||
13 | Seaboard Corp. | 55,042 | ||||||
1,482 | Seneca Foods Corp., Class A(b) | 55,130 | ||||||
4,525 | Smart & Final Stores, Inc.(b) | 53,395 | ||||||
1,333 | Snyder’s-Lance, Inc. | 47,002 | ||||||
1,572 | SpartanNash Co. | 57,850 | ||||||
14,305 | SUPERVALU, Inc.(b) | 58,650 | ||||||
1,406 | Tootsie Roll Industries, Inc. | 52,514 | ||||||
1,224 | United Natural Foods, Inc.(b) | 50,833 | ||||||
754 | Universal Corp. | 55,381 | ||||||
913 | USANA Health Sciences, Inc.(b) | 51,904 | ||||||
2,637 | Vector Group Ltd. | 57,276 | ||||||
2,025 | Village Super Market, Inc., Class A | 53,440 | ||||||
482 | WD-40 Co. | 50,538 | ||||||
887 | Weis Markets, Inc. | 51,277 | ||||||
|
| |||||||
2,355,032 | ||||||||
|
| |||||||
Energy—9.4% | ||||||||
15,154 | Abraxas Petroleum Corp.(b) | 28,338 | ||||||
2,434 | Alon USA Energy, Inc. | 29,427 | ||||||
2,522 | Archrock, Inc. | 29,760 | ||||||
1,279 | Ardmore Shipping Corp. (Ireland) | 9,912 | ||||||
3,370 | Atwood Oceanics, Inc.(b) | 26,387 | ||||||
7,171 | Bill Barrett Corp.(b) | 27,537 | ||||||
692 | Bristow Group, Inc. | 9,252 | ||||||
2,381 | California Resources Corp.(b) | 27,858 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 41 |
|
PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Energy (continued) | ||||||||
2,618 | Callon Petroleum Co.(b) | $ | 30,997 | |||||
2,623 | CARBO Ceramics, Inc.(b) | 18,020 | ||||||
1,148 | Carrizo Oil & Gas, Inc.(b) | 28,872 | ||||||
12,818 | Clean Energy Fuels Corp.(b) | 31,276 | ||||||
75,494 | Cobalt International Energy, Inc.(b) | 29,526 | ||||||
4,711 | Contango Oil & Gas Co.(b) | 33,731 | ||||||
1,582 | CVR Energy, Inc. | 34,630 | ||||||
1,218 | Delek US Holdings, Inc. | 29,317 | ||||||
13,920 | Denbury Resources, Inc.(b) | 30,902 | ||||||
2,108 | DHT Holdings, Inc. | 10,097 | ||||||
928 | Dorian LPG Ltd.(b) | 8,436 | ||||||
13,857 | Eclipse Resources Corp.(b) | 27,853 | ||||||
7,175 | EP Energy Corp., Class A(b)(c) | 32,431 | ||||||
2,549 | Era Group, Inc.(b) | 32,398 | ||||||
4,129 | Evolution Petroleum Corp. | 33,032 | ||||||
1,109 | Exterran Corp.(b) | 30,353 | ||||||
4,612 | Fairmount Santrol Holdings, Inc.(b) | 23,798 | ||||||
1,654 | Forum Energy Technologies, Inc.(b) | 27,953 | ||||||
1,386 | Frontline Ltd. (Norway) | 9,217 | ||||||
644 | GasLog Ltd. (Monaco) | 9,016 | ||||||
1,786 | Gener8 Maritime, Inc.(b) | 9,591 | ||||||
2,062 | Geospace Technologies Corp.(b) | 34,105 | ||||||
1,132 | Golar LNG Ltd. (Bermuda) | 28,877 | ||||||
1,349 | Green Plains, Inc. | 31,027 | ||||||
4,315 | Helix Energy Solutions Group, Inc.(b) | 26,408 | ||||||
7,634 | Hornbeck Offshore Services, Inc.(b)(c) | 26,032 | ||||||
6,128 | Independence Contract Drilling, Inc.(b) | 28,250 | ||||||
477 | International Seaways Inc.(b) | 9,220 | ||||||
258 | Isramco, Inc.(b) | 29,438 | ||||||
2,564 | Jagged Peak Energy, Inc.(b) | 28,563 | ||||||
12,818 | Jones Energy, Inc., Class A(b)(c) | 25,636 | ||||||
1,947 | Keane Group, Inc.(b)(c) | 26,908 | ||||||
1,531 | Mammoth Energy Services, Inc.(b) | 29,548 | ||||||
1,408 | Matador Resources Co.(b) | 30,525 | ||||||
1,966 | Matrix Service Co.(b) | 23,100 | ||||||
4,891 | McDermott International, Inc.(b) | 31,987 | ||||||
1,268 | Natural Gas Services Group, Inc.(b) | 34,743 | ||||||
5,409 | Navios Maritime Acquisition Corp. | 9,141 | ||||||
4,021 | Newpark Resources, Inc.(b) | 30,761 | ||||||
1,183 | Nordic American Tankers Ltd. | 9,819 | ||||||
2,524 | Oasis Petroleum, Inc.(b) | 30,137 | ||||||
967 | Oil States International, Inc.(b) | 28,768 | ||||||
2,343 | Overseas Shipholding Group, Inc., Class A(b) | 8,528 | ||||||
4,524 | Pacific Ethanol, Inc.(b) | 30,763 | ||||||
1,766 | Panhandle Oil and Gas, Inc., Class A | 33,466 | ||||||
1,920 | Par Pacific Holdings, Inc.(b) | 31,430 | ||||||
22,662 | Parker Drilling Co.(b) | 37,392 | ||||||
493 | PDC Energy, Inc.(b) | 27,228 | ||||||
766 | PHI, Inc.(b) | 8,985 | ||||||
7,596 | Pioneer Energy Services Corp.(b) | 23,168 | ||||||
3,061 | Renewable Energy Group, Inc.(b) | 31,987 | ||||||
397 | REX American Resources Corp.(b) | 37,588 | ||||||
1,566 | RigNet, Inc.(b) | 30,694 | ||||||
3,351 | Ring Energy, Inc.(b) | 40,212 | ||||||
797 | RSP Permian, Inc.(b) | 30,326 | ||||||
3,422 | Sanchez Energy Corp.(b) | 26,486 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Energy (continued) | ||||||||
2,254 | Scorpio Tankers, Inc. (Monaco) | $ | 9,918 | |||||
466 | SEACOR Holdings, Inc.(b) | 30,598 | ||||||
21,364 | Seadrill Ltd. (United Kingdom)(b) | 14,737 | ||||||
916 | SemGroup Corp., Class A | 30,503 | ||||||
655 | Ship Finance International Ltd. (Norway) | 9,203 | ||||||
2,110 | Smart Sand, Inc.(b) | 25,700 | ||||||
4,158 | Src Energy, Inc.(b) | 31,351 | ||||||
1,041 | Teekay Corp. (Bermuda) | 9,036 | ||||||
4,507 | Teekay Tankers Ltd., Class A (Bermuda) | 9,239 | ||||||
4,048 | Tesco Corp.(b) | 26,514 | ||||||
7,929 | TETRA Technologies, Inc.(b) | 26,404 | ||||||
1,395 | Unit Corp.(b) | 29,979 | ||||||
446 | US Silica Holdings, Inc. | 18,509 | ||||||
10,832 | W&T Offshore, Inc.(b) | 22,097 | ||||||
871 | Western Refining, Inc. | 30,041 | ||||||
2,100 | Westmoreland Coal Co.(b) | 22,386 | ||||||
2,661 | Wildhorse Resource Development Corp.(b) | 29,031 | ||||||
11,565 | Willbros Group, Inc.(b) | 31,804 | ||||||
|
| |||||||
2,068,213 | ||||||||
|
| |||||||
Financials—8.5% | ||||||||
102 | 1st Source Corp. | 4,928 | ||||||
337 | Access National Corp. | 9,547 | ||||||
159 | ACNB Corp. | 4,921 | ||||||
265 | AG Mortgage Investment Trust, Inc. REIT | 5,022 | ||||||
133 | Allegiance Bancshares, Inc.(b) | 5,194 | ||||||
262 | Ambac Financial Group, Inc.(b) | 5,091 | ||||||
196 | American Equity Investment Life Holding Co. | 4,649 | ||||||
131 | American National Bankshares, Inc. | 5,030 | ||||||
107 | Ameris Bancorp | 5,040 | ||||||
73 | AMERISAFE, Inc. | 4,201 | ||||||
153 | Ames National Corp. | 4,728 | ||||||
847 | Anworth Mortgage Asset Corp. REIT | 4,963 | ||||||
252 | Apollo Commercial Real Estate Finance, Inc. REIT | 4,861 | ||||||
350 | Ares Commercial Real Estate Corp. REIT | 4,840 | ||||||
71 | Argo Group International Holdings Ltd. | 4,682 | ||||||
325 | Arlington Asset Investment Corp., Class A | 4,732 | ||||||
209 | ARMOUR Residential REIT, Inc. REIT | 5,031 | ||||||
138 | Arrow Financial Corp. | 4,726 | ||||||
126 | Associated Capital Group, Inc., Class A | 4,240 | ||||||
231 | Astoria Financial Corp. | 4,710 | ||||||
257 | Atlantic Capital Bancshares, Inc.(b) | 5,037 | ||||||
348 | Atlas Financial Holdings, Inc.(b) | 4,507 | ||||||
315 | B. Riley Financial, Inc. | 4,741 | ||||||
197 | Baldwin & Lyons, Inc., Class B | 4,826 | ||||||
231 | Banc of California, Inc. | 5,013 | ||||||
53 | BancFirst Corp. | 5,091 | ||||||
172 | Banco Latinoamericano de Comercio Exterior SA, Class E (Panama) | 4,933 | ||||||
960 | Bancorp, Inc. (The)(b) | 6,192 | ||||||
158 | BancorpSouth, Inc. | 4,811 | ||||||
504 | Bank Mutual Corp. | 4,637 | ||||||
72 | Bank of Marin Bancorp | 4,547 | ||||||
148 | Bank of NT Butterfield & Son Ltd. (The) (Bermuda) | 4,921 | ||||||
94 | Bank of the Ozarks, Inc. | 4,462 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
326 | BankFinancial Corp. | $ | 4,818 | |||||
153 | Bankwell Financial Group, Inc. | 5,529 | ||||||
85 | Banner Corp. | 4,692 | ||||||
152 | Bar Harbor Bankshares | 4,680 | ||||||
504 | Bear State Financial, Inc. | 4,728 | ||||||
289 | Beneficial Bancorp, Inc. | 4,624 | ||||||
134 | Berkshire Hills Bancorp, Inc. | 5,025 | ||||||
428 | BGC Partners, Inc., Class A | 4,871 | ||||||
249 | Blue Capital Reinsurance Holdings Ltd. (Bermuda) | 4,706 | ||||||
277 | Blue Hills Bancorp, Inc. | 5,014 | ||||||
139 | BNC Bancorp | 4,650 | ||||||
169 | BofI Holding, Inc.(b) | 4,037 | ||||||
296 | Boston Private Financial Holdings, Inc. | 4,618 | ||||||
138 | Bridge Bancorp, Inc. | 5,002 | ||||||
315 | Brookline Bancorp, Inc. | 4,583 | ||||||
121 | Bryn Mawr Bank Corp. | 5,191 | ||||||
172 | BSB Bancorp, Inc.(b) | 5,014 | ||||||
104 | C&F Financial Corp. | 5,200 | ||||||
298 | California First National Bancorp | 4,917 | ||||||
113 | Camden National Corp. | 4,831 | ||||||
110 | Capital Bank Financial Corp., Class A | 4,565 | ||||||
233 | Capital City Bank Group, Inc. | 4,802 | ||||||
321 | Capitol Federal Financial, Inc. | 4,696 | ||||||
245 | Capstar Financial Holdings, Inc.(b) | 4,322 | ||||||
446 | Capstead Mortgage Corp. REIT | 4,968 | ||||||
164 | Carolina Financial Corp. | 5,061 | ||||||
614 | Cascade Bancorp(b) | 4,593 | ||||||
127 | Cathay General Bancorp | 4,832 | ||||||
187 | Centerstate Banks, Inc. | 4,718 | ||||||
159 | Central Pacific Financial Corp. | 4,974 | ||||||
243 | Central Valley Community Bancorp | 5,519 | ||||||
77 | Century Bancorp, Inc., Class A | 4,855 | ||||||
258 | Charter Financial Corp. | 4,734 | ||||||
93 | Chemical Financial Corp. | 4,413 | ||||||
124 | Chemung Financial Corp. | 4,711 | ||||||
204 | Citizens & Northern Corp. | 4,743 | ||||||
664 | Citizens, Inc.(b) | 4,681 | ||||||
75 | City Holding Co. | 5,332 | ||||||
296 | Clifton Bancorp, Inc. | 4,943 | ||||||
194 | CNB Financial Corp. | 4,635 | ||||||
230 | CNO Financial Group, Inc. | 4,846 | ||||||
291 | CoBiz Financial, Inc. | 4,781 | ||||||
180 | Codorus Valley Bancorp, Inc. | 5,218 | ||||||
123 | Cohen & Steers, Inc. | 4,908 | ||||||
124 | Columbia Banking System, Inc. | 4,899 | ||||||
88 | Community Bank System, Inc. | 4,924 | ||||||
105 | Community Trust Bancorp, Inc. | 4,720 | ||||||
205 | ConnectOne Bancorp, Inc. | 4,551 | ||||||
160 | County Bancorp, Inc. | 4,392 | ||||||
352 | Cowen Group, Inc., Class A(b) | 5,597 | ||||||
494 | Crawford & Co., Class B | 5,390 | ||||||
122 | CU Bancorp(b) | 4,548 | ||||||
151 | Customers Bancorp, Inc.(b) | 4,670 | ||||||
219 | CVB Financial Corp. | 4,717 | ||||||
603 | CYS Investments, Inc. REIT | 5,144 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
25 | Diamond Hill Investment Group, Inc. | $ | 5,054 | |||||
236 | Dime Community Bancshares, Inc. | 4,590 | ||||||
273 | Donegal Group, Inc., Class A | 4,548 | ||||||
680 | Dynex Capital, Inc. REIT | 4,706 | ||||||
81 | Eagle Bancorp, Inc.(b) | 4,852 | ||||||
419 | eHealth, Inc.(b) | 5,941 | ||||||
166 | EMC Insurance Group, Inc. | 4,761 | ||||||
127 | Employers Holdings, Inc. | 5,080 | ||||||
154 | Encore Capital Group, Inc.(b) | 5,136 | ||||||
336 | Enova International, Inc.(b) | 4,771 | ||||||
25 | Enstar Group Ltd. (Bermuda)(b) | 4,870 | ||||||
146 | Enterprise Bancorp, Inc. | 5,111 | ||||||
115 | Enterprise Financial Services Corp. | 4,859 | ||||||
152 | Equity Bancshares, Inc., Class A(b) | 4,799 | ||||||
323 | ESSA Bancorp, Inc. | 4,887 | ||||||
133 | Essent Group Ltd.(b) | 4,922 | ||||||
239 | EverBank Financial Corp. | 4,660 | ||||||
60 | Evercore Partners, Inc., Class A | 4,425 | ||||||
571 | EZCORP, Inc., Class A(b) | 5,168 | ||||||
322 | F.N.B. Corp. | 4,585 | ||||||
122 | Farmers Capital Bank Corp. | 5,063 | ||||||
349 | Farmers National Banc Corp. | 4,991 | ||||||
148 | FB Financial Corp.(b) | 5,364 | ||||||
74 | FBL Financial Group, Inc., Class A | 4,921 | ||||||
262 | FBR & Co. | 4,742 | ||||||
99 | FCB Financial Holdings, Inc., Class A(b) | 4,678 | ||||||
82 | Federal Agricultural Mortgage Corp., Class C | 4,678 | ||||||
274 | Federated National Holding Co. | 4,406 | ||||||
1,353 | Ferroglobe Representation & Warranty Insurance Trust(b) | 0 | ||||||
169 | Fidelity & Guaranty Life | 4,808 | ||||||
223 | Fidelity Southern Corp. | 5,022 | ||||||
941 | Fifth Street Asset Management, Inc., Class A | 4,423 | ||||||
117 | Financial Engines, Inc. | 4,972 | ||||||
146 | Financial Institutions, Inc. | 4,891 | ||||||
178 | First Bancorp, Inc./Me | 4,801 | ||||||
853 | First BanCorp/Puerto Rico(b) | 5,016 | ||||||
162 | First Bancorp/Southern Pines NC | 4,866 | ||||||
161 | First Busey Corp. | 4,822 | ||||||
189 | First Business Financial Services, Inc. | 5,022 | ||||||
17 | First Citizens BancShares, Inc., Class A | 5,917 | ||||||
359 | First Commonwealth Financial Corp. | 4,635 | ||||||
191 | First Community Bancshares, Inc. | 5,054 | ||||||
373 | First Community Financial Partners, Inc.(b) | 4,868 | ||||||
197 | First Connecticut Bancorp, Inc. | 5,260 | ||||||
97 | First Defiance Financial Corp. | 5,203 | ||||||
176 | First Financial Bancorp | 4,866 | ||||||
119 | First Financial Bankshares, Inc. | 4,754 | ||||||
101 | First Financial Corp. | 4,929 | ||||||
259 | First Financial Northwest, Inc. | 4,061 | ||||||
308 | First Foundation, Inc.(b) | 4,836 | ||||||
155 | First Internet Bancorp | 4,580 | ||||||
120 | First Interstate BancSystem, Inc., Class A | 4,530 | ||||||
123 | First Merchants Corp. | 5,090 | ||||||
148 | First Mid-Illinois Bancshares, Inc. | 4,826 | ||||||
203 | First Midwest Bancorp, Inc. | 4,610 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
1,179 | First NBC Bank Holding Co.(b) | $ | 3,124 | |||||
306 | First Northwest Bancorp(b) | 5,037 | ||||||
176 | First of Long Island Corp. (The) | 4,787 | ||||||
104 | �� | Firstcash, Inc. | 5,403 | |||||
170 | Flagstar Bancorp, Inc.(b) | 4,971 | ||||||
179 | Flushing Financial Corp. | 5,277 | ||||||
382 | FNFV Group(b) | 5,233 | ||||||
128 | Franklin Financial Network, Inc.(b) | 5,190 | ||||||
265 | Fulton Financial Corp. | 4,889 | ||||||
561 | Gain Capital Holdings, Inc. | 3,977 | ||||||
161 | GAMCO Investors, Inc., Class A | 4,621 | ||||||
1,159 | Genworth Financial, Inc., Class A(b) | 4,682 | ||||||
154 | German American Bancorp, Inc. | 5,064 | ||||||
142 | Glacier Bancorp, Inc. | 4,797 | ||||||
126 | Global Indemnity Ltd., Class A (Cayman Islands)(b) | 5,109 | ||||||
357 | Great Ajax Corp. REIT | 4,855 | ||||||
95 | Great Southern Bancorp, Inc. | 4,764 | ||||||
114 | Great Western Bancorp, Inc. | 4,697 | ||||||
288 | Green Bancorp, Inc.(b) | 5,184 | ||||||
141 | Green Dot Corp., Class A(b) | 4,835 | ||||||
203 | Greene County Bancorp, Inc. | 5,024 | ||||||
162 | Greenhill & Co., Inc. | 4,099 | ||||||
213 | Greenlight Capital Re Ltd., Class A(b) | 4,590 | ||||||
200 | Guaranty Bancorp | 5,030 | ||||||
426 | Hallmark Financial Services, Inc.(b) | 4,477 | ||||||
108 | Hancock Holding Co. | 5,044 | ||||||
160 | Hanmi Financial Corp. | 4,648 | ||||||
245 | Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT | 5,370 | ||||||
251 | HarborOne Bancorp, Inc.(b) | 5,226 | ||||||
103 | HCI Group, Inc. | 4,912 | ||||||
97 | Heartland Financial USA, Inc. | 4,656 | ||||||
286 | Hennessy Advisors, Inc. | 4,865 | ||||||
347 | Heritage Commerce Corp. | 4,955 | ||||||
200 | Heritage Financial Corp. | 5,280 | ||||||
375 | Heritage Insurance Holdings, Inc. | 4,537 | ||||||
176 | Hilltop Holdings, Inc. | 4,895 | ||||||
27 | Hingham Institution for Savings | 4,846 | ||||||
139 | Home Bancorp, Inc. | 5,162 | ||||||
176 | Home BancShares, Inc. | 4,479 | ||||||
181 | HomeStreet, Inc.(b) | 4,706 | ||||||
205 | HomeTrust Bancshares, Inc.(b) | 5,125 | ||||||
248 | Hope Bancorp, Inc. | 4,541 | ||||||
116 | Horace Mann Educators Corp. | 4,483 | ||||||
184 | Horizon Bancorp | 4,966 | ||||||
143 | Houlihan Lokey, Inc., Class A | 4,796 | ||||||
61 | IBERIABANK Corp. | 4,840 | ||||||
374 | Impac Mortgage Holdings, Inc.(b)(c) | 5,348 | ||||||
239 | Independence Holding Co. | 4,529 | ||||||
77 | Independent Bank Corp./MA | 4,874 | ||||||
233 | Independent Bank Corp./MI | 5,196 | ||||||
78 | Independent Bank Group, Inc. | 4,692 | ||||||
49 | Infinity Property & Casualty Corp. | 4,863 | ||||||
133 | International Bancshares Corp. | 4,974 | ||||||
127 | INTL FCStone, Inc.(b) | 4,743 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
308 | Invesco Mortgage Capital, Inc. REIT(d) | $ | 5,023 | |||||
233 | Investment Technology Group, Inc. | 4,639 | ||||||
338 | Investors Bancorp, Inc. | 4,681 | ||||||
35 | Investors Title Co. | 6,238 | ||||||
117 | James River Group Holdings Ltd. | 5,097 | ||||||
366 | Janus Capital Group, Inc. | 5,000 | ||||||
257 | KCG Holdings, Inc., Class A(b) | 5,114 | ||||||
313 | Kearny Financial Corp. | 4,570 | ||||||
119 | Kemper Corp. | 4,683 | ||||||
143 | Kinsale Capital Group, Inc. | 5,171 | ||||||
325 | Ladder Capital Corp., Class A REIT | 4,755 | ||||||
2,016 | Ladenburg Thalmann Financial Services, Inc.(b) | 5,604 | ||||||
248 | Lakeland Bancorp, Inc. | 4,824 | ||||||
111 | Lakeland Financial Corp. | 5,068 | ||||||
210 | LCNB Corp. | 4,651 | ||||||
120 | LegacyTexas Financial Group, Inc. | 4,537 | ||||||
896 | LendingClub Corp.(b) | 5,242 | ||||||
39 | LendingTree, Inc.(b) | 5,495 | ||||||
225 | Live Oak Bancshares, Inc. | 5,434 | ||||||
482 | Macatawa Bank Corp. | 4,613 | ||||||
337 | Maiden Holdings Ltd. | 4,162 | ||||||
146 | MainSource Financial Group, Inc. | 4,993 | ||||||
817 | Manning & Napier, Inc. | 4,739 | ||||||
379 | Marlin Business Services Corp. | 9,646 | ||||||
113 | MB Financial, Inc. | 4,804 | ||||||
579 | MBIA, Inc.(b) | 4,864 | ||||||
427 | MBT Financial Corp. | 4,782 | ||||||
582 | Medley Management, Inc., Class A | 4,481 | ||||||
136 | Mercantile Bank Corp. | 4,574 | ||||||
98 | Merchants Bancshares, Inc. | 4,880 | ||||||
257 | Meridian Bancorp, Inc. | 4,510 | ||||||
55 | Meta Financial Group, Inc. | 4,669 | ||||||
465 | MGIC Investment Corp.(b) | 4,901 | ||||||
141 | Midland States Bancorp, Inc. | 4,864 | ||||||
137 | MidWestOne Financial Group, Inc. | 4,754 | ||||||
125 | Moelis & Co., Class A | 4,587 | ||||||
278 | Mtge Investment Corp. REIT | 5,004 | ||||||
149 | Mutualfirst Financial, Inc. | 4,910 | ||||||
149 | National Bank Holdings Corp., Class A | 4,704 | ||||||
120 | National Bankshares, Inc. | 5,046 | ||||||
131 | National Commerce Corp.(b) | 5,070 | ||||||
200 | National General Holdings Corp. | 4,548 | ||||||
18 | National Western Life Group, Inc., Class A | 5,512 | ||||||
310 | Nationstar Mortgage Holdings, Inc.(b) | 4,994 | ||||||
88 | Navigators Group, Inc. (The) | 4,756 | ||||||
125 | NBT Bancorp, Inc. | 4,772 | ||||||
110 | Nelnet, Inc., Class A | 4,951 | ||||||
280 | New Residential Investment Corp. REIT | 4,668 | ||||||
748 | New York Mortgage Trust, Inc. REIT | 4,795 | ||||||
439 | NewStar Financial, Inc. | 4,715 | ||||||
99 | Nicolet Bankshares, Inc.(b) | 4,881 | ||||||
421 | NMI Holdings, Inc., Class A(b) | 4,884 | ||||||
263 | Northfield Bancorp, Inc. | 4,834 | ||||||
160 | Northrim Bancorp, Inc. | 5,120 | ||||||
278 | Northwest Bancshares, Inc. | 4,487 | ||||||
167 | OceanFirst Financial Corp. | 4,618 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
1,002 | Ocwen Financial Corp.(b) | $ | 2,295 | |||||
421 | OFG Bancorp | 4,926 | ||||||
168 | Old Line Bancshares, Inc. | 4,664 | ||||||
280 | Old National Bancorp | 4,704 | ||||||
448 | Old Second Bancorp, Inc. | 5,376 | ||||||
323 | OM Asset Management PLC | 5,026 | ||||||
976 | On Deck Capital, Inc.(b) | 4,636 | ||||||
310 | OneBeacon Insurance Group Ltd., Class A | 4,944 | ||||||
284 | Oppenheimer Holdings, Inc., Class A | 4,913 | ||||||
246 | Opus Bank | 5,547 | ||||||
461 | Orchid Island Capital, Inc. REIT | 4,887 | ||||||
282 | Oritani Financial Corp. | 4,780 | ||||||
217 | Orrstown Financial Services, Inc. | 4,655 | ||||||
270 | Owens Realty Mortgage, Inc. REIT | 4,903 | ||||||
199 | Pacific Continental Corp. | 4,975 | ||||||
613 | Pacific Mercantile Bancorp(b) | 4,751 | ||||||
224 | Pacific Premier Bancorp, Inc.(b) | 8,187 | ||||||
91 | Paragon Commercial Corp.(b) | 5,002 | ||||||
45 | Park National Corp. | 4,744 | ||||||
399 | Park Sterling Corp. | 4,908 | ||||||
157 | Peapack-Gladstone Financial Corp. | 5,033 | ||||||
105 | Penns Woods Bancorp, Inc. | 4,378 | ||||||
281 | PennyMac Financial Services, Inc., Class A(b) | 4,636 | ||||||
275 | PennyMac Mortgage Investment Trust REIT | 4,917 | ||||||
149 | Peoples Bancorp, Inc. | 4,989 | ||||||
117 | Peoples Financial Services Corp. | 5,258 | ||||||
179 | People’s Utah Bancorp | 4,726 | ||||||
772 | PHH Corp.(b) | 9,959 | ||||||
336 | PICO Holdings, Inc.(b) | 5,410 | ||||||
73 | Pinnacle Financial Partners, Inc. | 4,672 | ||||||
73 | Piper Jaffray Cos. | 4,570 | ||||||
133 | PJT Partners, Inc., Class A | 4,610 | ||||||
141 | PRA Group, Inc.(b) | 4,540 | ||||||
92 | Preferred Bank | 4,875 | ||||||
244 | Premier Financial Bancorp, Inc. | 5,229 | ||||||
58 | Primerica, Inc. | 4,860 | ||||||
83 | PrivateBancorp, Inc. | 4,795 | ||||||
68 | Prosperity Bancshares, Inc. | 4,570 | ||||||
222 | Provident Bancorp, Inc.(b) | 4,729 | ||||||
250 | Provident Financial Holdings, Inc. | 4,807 | ||||||
184 | Provident Financial Services, Inc. | 4,727 | ||||||
499 | Pzena Investment Management, Inc., Class A | 5,135 | ||||||
111 | QCR Holdings, Inc. | 5,062 | ||||||
262 | Radian Group, Inc. | 4,423 | ||||||
284 | Redwood Trust, Inc. REIT | 4,848 | ||||||
245 | Regional Management Corp.(b) | 4,858 | ||||||
120 | Renasant Corp. | 5,088 | ||||||
140 | Republic Bancorp, Inc., Class A | 5,037 | ||||||
590 | Republic First Bancorp, Inc.(b) | 5,074 | ||||||
474 | Resource Capital Corp. REIT | 4,432 | ||||||
79 | RLI Corp. | 4,520 | ||||||
138 | S&T Bancorp, Inc. | 4,962 | ||||||
380 | Safeguard Scientifics, Inc.(b) | 4,826 | ||||||
67 | Safety Insurance Group, Inc. | 4,851 | ||||||
117 | Sandy Spring Bancorp, Inc. | 5,060 | ||||||
205 | Seacoast Banking Corp. of Florida(b) | 4,961 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
99 | Selective Insurance Group, Inc. | $ | 5,227 | |||||
130 | ServisFirst Bancshares, Inc. | 4,914 | ||||||
297 | Shore Bancshares, Inc. | 4,927 | ||||||
333 | SI Financial Group, Inc. | 4,978 | ||||||
179 | Sierra Bancorp | 4,488 | ||||||
336 | Silvercrest Asset Management Group, Inc., Class A | 4,586 | ||||||
87 | Simmons First National Corp., Class A | 4,755 | ||||||
54 | South State Corp. | 4,760 | ||||||
143 | Southern First Bancshares, Inc.(b) | 4,819 | ||||||
142 | Southern Missouri Bancorp, Inc. | 4,729 | ||||||
288 | Southern National Bancorp of Virginia, Inc. | 5,244 | ||||||
143 | Southside Bancshares, Inc. | 4,965 | ||||||
181 | Southwest Bancorp, Inc. | 4,697 | ||||||
170 | State Auto Financial Corp. | 4,568 | ||||||
186 | State Bank Financial Corp. | 4,996 | ||||||
321 | State National Cos., Inc. | 4,709 | ||||||
199 | Sterling Bancorp | 4,627 | ||||||
107 | Stewart Information Services Corp. | 5,076 | ||||||
96 | Stifel Financial Corp.(b) | 4,692 | ||||||
117 | Stock Yards Bancorp, Inc. | 4,797 | ||||||
101 | Stonegate Bank | 4,636 | ||||||
235 | Summit Financial Group, Inc. | 5,139 | ||||||
195 | Sun Bancorp, Inc. | 4,865 | ||||||
150 | Territorial Bancorp, Inc. | 4,642 | ||||||
58 | Texas Capital Bancshares, Inc.(b) | 4,414 | ||||||
395 | Third Point Reinsurance Ltd. (Bermuda)(b) | 4,779 | ||||||
695 | Tiptree, Inc., Class A | 4,900 | ||||||
58 | Tompkins Financial Corp. | 4,795 | ||||||
150 | TowneBank | 4,867 | ||||||
137 | TriCo Bancshares | 4,858 | ||||||
204 | TriState Capital Holdings, Inc.(b) | 5,080 | ||||||
187 | Triumph Bancorp, Inc.(b) | 4,189 | ||||||
323 | Trupanion, Inc.(b) | 5,132 | ||||||
601 | TrustCo Bank Corp. NY | 4,778 | ||||||
150 | Trustmark Corp. | 4,983 | ||||||
63 | UMB Financial Corp. | 4,567 | ||||||
270 | Umpqua Holdings Corp. | 4,771 | ||||||
136 | Union Bankshares Corp. | 4,657 | ||||||
111 | Union Bankshares, Inc./Morrisville VT | 4,668 | ||||||
230 | United Bankshares, Inc. | 9,177 | ||||||
176 | United Community Banks, Inc. | 4,814 | ||||||
562 | United Community Financial Corp. | 4,799 | ||||||
283 | United Financial Bancorp, Inc. | 4,887 | ||||||
110 | United Fire Group, Inc. | 4,840 | ||||||
299 | United Insurance Holdings Corp. | 4,563 | ||||||
196 | Universal Insurance Holdings, Inc. | 5,106 | ||||||
177 | Univest Corp. of Pennsylvania | 5,363 | ||||||
401 | Valley National Bancorp | 4,716 | ||||||
264 | Value Line, Inc. | 4,615 | ||||||
169 | Veritex Holdings, Inc.(b) | 4,553 | ||||||
281 | Virtu Financial, Inc., Class A | 4,327 | ||||||
46 | Virtus Investment Partners, Inc. | 4,894 | ||||||
278 | Waddell & Reed Financial, Inc., Class A | 5,001 | ||||||
108 | Walker & Dunlop, Inc.(b) | 4,844 | ||||||
145 | Washington Federal, Inc. | 4,886 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
94 | Washington Trust Bancorp, Inc. | $ | 4,625 | |||||
171 | WashingtonFirst Bankshares, Inc. | 4,810 | ||||||
259 | Waterstone Financial, Inc. | 4,921 | ||||||
92 | Webster Financial Corp. | 4,675 | ||||||
130 | WesBanco, Inc. | 5,175 | ||||||
217 | West Bancorporation, Inc. | 5,056 | ||||||
85 | Westamerica Bancorporation | 4,677 | ||||||
471 | Western Asset Mortgage Capital Corp. REIT | 4,960 | ||||||
454 | Western New England Bancorp, Inc. | 4,767 | ||||||
89 | Westwood Holdings Group, Inc. | 4,966 | ||||||
17 | Wins Finance Hondings, Inc.(b) | 779 | ||||||
69 | Wintrust Financial Corp. | 4,889 | ||||||
544 | WisdomTree Investments, Inc.(c) | 4,542 | ||||||
3,450 | WMIH Corp.(b) | 5,175 | ||||||
96 | World Acceptance Corp.(b) | 5,078 | ||||||
105 | WSFS Financial Corp. | 4,956 | ||||||
196 | Xenith Bankshares, Inc.(b) | 5,296 | ||||||
|
| |||||||
1,859,657 | ||||||||
|
| |||||||
Health Care—11.2% | ||||||||
904 | AAC Holdings, Inc.(b) | 6,473 | ||||||
147 | Abaxis, Inc. | 6,619 | ||||||
310 | Accelerate Diagnostics, Inc.(b) | 8,463 | ||||||
265 | Acceleron Pharma, Inc.(b) | 8,750 | ||||||
1,456 | Accuray, Inc.(b) | 6,625 | ||||||
2,355 | AcelRx Pharmaceuticals, Inc.(b) | 6,123 | ||||||
1,354 | Aceto Corp. | 21,461 | ||||||
1,864 | Achillion Pharmaceuticals, Inc.(b) | 6,356 | ||||||
234 | Aclaris Therapeutics, Inc.(b) | 6,578 | ||||||
278 | Acorda Therapeutics, Inc.(b) | 4,490 | ||||||
405 | Adamas Pharmaceuticals, Inc.(b) | 6,634 | ||||||
232 | Addus HomeCare Corp.(b) | 7,876 | ||||||
682 | Aduro Biotech, Inc.(b) | 6,581 | ||||||
899 | Advaxis, Inc.(b) | 7,695 | ||||||
2,717 | Adverum Biotechnologies, Inc.(b) | 7,743 | ||||||
155 | Aerie Pharmaceuticals, Inc.(b) | 6,828 | ||||||
4,360 | Aevi Genomic Medicine, Inc.(b) | 6,976 | ||||||
1,802 | Agenus, Inc.(b) | 6,469 | ||||||
2,386 | Agile Therapeutics, Inc.(b) | 8,566 | ||||||
310 | Aimmune Therapeutics, Inc.(b) | 6,026 | ||||||
776 | Akebia Therapeutics, Inc.(b) | 10,228 | ||||||
541 | Albany Molecular Research, Inc.(b) | 8,661 | ||||||
341 | Alder Biopharmaceuticals, Inc.(b) | 6,837 | ||||||
148 | Almost Family, Inc.(b) | 7,348 | ||||||
327 | AMAG Pharmaceuticals, Inc.(b) | 7,979 | ||||||
141 | Amedisys, Inc.(b) | 7,642 | ||||||
415 | American Renal Associates Holdings, Inc.(b) | 7,142 | ||||||
989 | Amicus Therapeutics, Inc.(b) | 7,596 | ||||||
183 | AMN Healthcare Services, Inc.(b) | 7,476 | ||||||
515 | Amphastar Pharmaceuticals, Inc.(b) | 7,777 | ||||||
8,639 | Ampio Pharmaceuticals, Inc.(b)(c) | 4,830 | ||||||
96 | Analogic Corp. | 6,898 | ||||||
256 | Anaptysbio, Inc.(b) | 6,830 | ||||||
1,179 | Anavex Life Sciences Corp.(b) | 6,638 | ||||||
417 | AngioDynamics, Inc.(b) | 6,472 | ||||||
155 | ANI Pharmaceuticals, Inc.(b) | 8,389 | ||||||
169 | Anika Therapeutics, Inc.(b) | 7,796 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
1,070 | Applied Genetic Technologies Corp.(b) | $ | 5,992 | |||||
1,374 | Aratana Therapeutics, Inc.(b) | 8,519 | ||||||
529 | Ardelyx, Inc.(b) | 7,089 | ||||||
4,871 | Arena Pharmaceuticals, Inc.(b) | 6,527 | ||||||
766 | Array BioPharma, Inc.(b) | 6,641 | ||||||
3,818 | Arrowhead Pharmaceuticals, Inc.(b) | 5,918 | ||||||
2,173 | Asterias Biotherapeutics, Inc.(b) | 8,040 | ||||||
336 | Atara Biotherapeutics, Inc.(b) | 5,746 | ||||||
6,251 | Athersys, Inc.(b)(c) | 9,252 | ||||||
380 | AtriCure, Inc.(b) | 7,790 | ||||||
15 | Atrion Corp. | 7,757 | ||||||
457 | Audentes Therapeutics, Inc.(b) | 6,809 | ||||||
97 | Avexis, Inc.(b) | 7,809 | ||||||
4,281 | Avinger, Inc.(b) | 2,409 | ||||||
703 | AxoGen, Inc.(b) | 8,577 | ||||||
479 | Axovant Sciences Ltd.(b) | 11,611 | ||||||
1,909 | Axsome Therapeutics, Inc.(b) | 7,827 | ||||||
548 | Bellicum Pharmaceuticals, Inc.(b) | 7,327 | ||||||
832 | BioCryst Pharmaceuticals, Inc.(b) | 5,275 | ||||||
8,883 | Bio-Path Holdings, Inc.(b) | 5,603 | ||||||
3,991 | BioScrip, Inc.(b) | 6,066 | ||||||
137 | BioSpecifics Technologies Corp.(b) | 7,772 | ||||||
271 | BioTelemetry, Inc.(b) | 8,916 | ||||||
2,187 | BioTime, Inc.(b) | 7,436 | ||||||
81 | Bluebird Bio, Inc.(b) | 7,205 | ||||||
172 | Blueprint Medicines Corp.(b) | 8,012 | ||||||
139 | Cambrex Corp.(b) | 8,250 | ||||||
94 | Cantel Medical Corp. | 6,995 | ||||||
528 | Capital Senior Living Corp.(b) | 7,376 | ||||||
423 | Cara Therapeutics, Inc.(b) | 6,721 | ||||||
257 | Cardiovascular Systems, Inc.(b) | 7,677 | ||||||
2,173 | Castlight Health, Inc., Class B(b) | 8,366 | ||||||
253 | Catalent, Inc.(b) | 7,408 | ||||||
2,160 | Celldex Therapeutics, Inc.(b) | 7,193 | ||||||
634 | Cellular Biomedicine Group, Inc.(b) | 6,847 | ||||||
1,744 | Cempra, Inc.(b) | 7,499 | ||||||
1,714 | Cerus Corp.(b) | 7,456 | ||||||
38 | Chemed Corp. | 7,652 | ||||||
998 | ChemoCentryx, Inc.(b) | 7,226 | ||||||
1,088 | Chimerix, Inc.(b) | 6,506 | ||||||
948 | Cidara Therapeutics, Inc.(b) | 7,347 | ||||||
408 | Civitas Solutions, Inc.(b) | 7,262 | ||||||
992 | Clearside BioMedical, Inc.(b) | 7,896 | ||||||
103 | Clovis Oncology, Inc.(b) | 5,963 | ||||||
323 | Coherus Biosciences, Inc.(b) | 6,202 | ||||||
555 | Collegium Pharmaceutical, Inc.(b) | 5,445 | ||||||
812 | Community Health Systems, Inc.(b) | 6,991 | ||||||
256 | Computer Programs & Systems, Inc. | 7,027 | ||||||
395 | Concert Pharmaceuticals, Inc.(b) | 6,269 | ||||||
1,493 | ConforMIS, Inc.(b) | 8,391 | ||||||
164 | CONMED Corp. | 8,062 | ||||||
707 | Corcept Therapeutics, Inc.(b) | 6,745 | ||||||
5,838 | Corindus Vascular Robotics, Inc.(b) | 7,356 | ||||||
174 | CorVel Corp.(b) | 7,743 | ||||||
346 | Corvus Pharmaceuticals, Inc.(b) | 3,436 | ||||||
180 | Cotiviti Holdings, Inc.(b) | 7,522 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
521 | Cross Country Healthcare, Inc.(b) | $ | 7,278 | |||||
423 | CryoLife, Inc.(b) | 7,677 | ||||||
2,470 | Curis, Inc.(b) | 5,977 | ||||||
349 | Cutera, Inc.(b) | 6,823 | ||||||
563 | Cytokinetics, Inc.(b) | 9,233 | ||||||
405 | CytomX Therapeutics, Inc.(b) | 6,363 | ||||||
17,364 | CytRx Corp.(b)(c) | 8,835 | ||||||
476 | Depomed, Inc.(b) | 5,707 | ||||||
205 | Dermira, Inc.(b) | 6,982 | ||||||
3,611 | Diplomat Pharmacy, Inc.(b) | 56,332 | ||||||
7,401 | Durect Corp.(b) | 6,494 | ||||||
103 | Dyax Corp.(b) | 114 | ||||||
1,187 | Dynavax Technologies Corp.(b) | 6,588 | ||||||
86 | Eagle Pharmaceuticals, Inc.(b) | 7,791 | ||||||
909 | Edge Therapeutics, Inc.(b) | 9,435 | ||||||
367 | Editas Medicine, Inc.(b) | 6,918 | ||||||
1,481 | Egalet Corp.(b) | 5,657 | ||||||
679 | Eiger BioPharmaceuticals, Inc.(b) | 5,364 | ||||||
249 | Emergent Biosolutions, Inc.(b) | 7,448 | ||||||
231 | Enanta Pharmaceuticals, Inc.(b) | 7,334 | ||||||
3,139 | Endocyte, Inc.(b) | 7,220 | ||||||
1,064 | Endologix, Inc.(b) | 7,969 | ||||||
386 | Ensign Group, Inc. (The) | 6,929 | ||||||
514 | Entellus Medical, Inc.(b) | 7,309 | ||||||
893 | Enzo Biochem, Inc.(b) | 7,858 | ||||||
417 | Epizyme, Inc.(b) | 7,527 | ||||||
175 | Esperion Therapeutics, Inc.(b) | 6,256 | ||||||
498 | Evolent Health, Inc., Class A(b) | 11,579 | ||||||
345 | Exact Sciences Corp.(b) | 10,353 | ||||||
265 | Exactech, Inc.(b) | 7,857 | ||||||
348 | Exelixis, Inc.(b) | 7,795 | ||||||
282 | FibroGen, Inc.(b) | 7,896 | ||||||
202 | Five Prime Therapeutics, Inc.(b) | 7,042 | ||||||
269 | Flexion Therapeutics, Inc.(b) | 5,490 | ||||||
1,280 | Fluidigm Corp.(b) | 6,323 | ||||||
2,041 | Fortress Biotech, Inc.(b) | 7,429 | ||||||
220 | Foundation Medicine, Inc.(b) | 7,810 | ||||||
643 | Fulgent Genetics, Inc.(b) | 6,552 | ||||||
2,931 | Genesis Healthcare, Inc., Class A(b) | 7,093 | ||||||
538 | GenMark Diagnostics, Inc.(b) | 6,897 | ||||||
227 | Genomic Health, Inc.(b) | 7,459 | ||||||
3,348 | Geron Corp.(b) | 8,571 | ||||||
144 | Glaukos Corp.(b) | 6,844 | ||||||
183 | Global Blood Therapeutics, Inc.(b) | 5,298 | ||||||
238 | Globus Medical, Inc., Class A(b) | 7,219 | ||||||
1,244 | Glycomimetics, Inc.(b) | 5,349 | ||||||
180 | Haemonetics Corp.(b) | 7,538 | ||||||
525 | Halozyme Therapeutics, Inc.(b) | 7,319 | ||||||
187 | Halyard Health, Inc.(b) | 7,387 | ||||||
166 | HealthEquity, Inc.(b) | 7,556 | ||||||
171 | HealthSouth Corp. | 8,020 | ||||||
362 | HealthStream, Inc.(b) | 10,060 | ||||||
491 | Heron Therapeutics, Inc.(b) | 7,537 | ||||||
72 | Heska Corp.(b) | 7,794 | ||||||
397 | HMS Holdings Corp.(b) | 8,127 | ||||||
485 | Horizon Pharma PLC(b) | 7,459 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
46 | ICU Medical, Inc.(b) | $ | 7,075 | |||||
2,919 | Idera Pharmaceuticals, Inc.(b) | 6,860 | ||||||
794 | Ignyta, Inc.(b) | 7,027 | ||||||
1,087 | Immune Design Corp.(b) | 7,120 | ||||||
1,930 | ImmunoGen, Inc.(b)(c) | 8,376 | ||||||
1,065 | Immunomedics, Inc.(b) | 6,102 | ||||||
768 | Impax Laboratories, Inc.(b) | 10,790 | ||||||
161 | INC Research Holdings, Inc., Class A(b) | 7,245 | ||||||
2,207 | Infinity Pharmaceuticals, Inc.(b) | 4,745 | ||||||
547 | Innoviva, Inc.(b) | 6,446 | ||||||
94 | Inogen, Inc.(b) | 7,792 | ||||||
1,187 | Inovio Pharmaceuticals, Inc.(b) | 7,466 | ||||||
451 | Insmed, Inc.(b) | 8,321 | ||||||
168 | Insulet Corp.(b) | 7,293 | ||||||
668 | Insys Therapeutics, Inc.(b)(c) | 7,515 | ||||||
176 | Integer Holdings Corp.(b) | 6,468 | ||||||
167 | Integra LifeSciences Holdings Corp.(b) | 7,677 | ||||||
536 | Intellia Therapeutics, Inc.(b) | 7,810 | ||||||
432 | Intersect ENT, Inc.(b) | 8,208 | ||||||
477 | Intra-Cellular Therapies, Inc.(b) | 6,592 | ||||||
617 | Invacare Corp. | 9,070 | ||||||
667 | Invitae Corp.(b) | 7,357 | ||||||
1,744 | InVivo Therapeutics Holdings Corp.(b) | 6,627 | ||||||
817 | iRadimed Corp.(b) | 7,026 | ||||||
202 | iRhythm Technologies, Inc.(b) | 7,129 | ||||||
547 | Iridex Corp.(b) | 6,236 | ||||||
412 | Ironwood Pharmaceuticals, Inc., Class A(b) | 6,724 | ||||||
292 | Jounce Therapeutics, Inc.(b) | 8,269 | ||||||
377 | K2M Group Holdings, Inc.(b) | 8,351 | ||||||
682 | Karyopharm Therapeutics, Inc.(b) | 6,970 | ||||||
1,280 | Keryx Biopharmaceuticals, Inc.(b)(c) | 7,578 | ||||||
872 | Kindred Healthcare, Inc. | 8,371 | ||||||
95 | Kite Pharma, Inc.(b) | 7,798 | ||||||
202 | La Jolla Pharmaceutical Co.(b) | 5,858 | ||||||
153 | Landauer, Inc. | 8,048 | ||||||
333 | Lannett Co., Inc.(b)(c) | 8,658 | ||||||
293 | LeMaitre Vascular, Inc. | 8,717 | ||||||
497 | Lexicon Pharmaceuticals, Inc.(b) | 7,758 | ||||||
140 | LHC Group, Inc.(b) | 7,574 | ||||||
68 | Ligand Pharmaceuticals, Inc.(b) | 7,560 | ||||||
955 | Lion Biotechnologies, Inc.(b) | 6,542 | ||||||
1,690 | Lipocine, Inc.(b) | 7,166 | ||||||
158 | Loxo Oncology, Inc.(b) | 7,278 | ||||||
392 | Luminex Corp. | 7,381 | ||||||
395 | MacroGenics, Inc.(b) | 8,536 | ||||||
109 | Magellan Health, Inc.(b) | 7,499 | ||||||
3,622 | Mannkind Corp.(b)(c) | 3,164 | ||||||
76 | Masimo Corp.(b) | 7,808 | ||||||
141 | Medicines Co. (The)(b) | 6,954 | ||||||
1,216 | MediciNova, Inc.(b) | 6,992 | ||||||
128 | Medidata Solutions, Inc.(b) | 8,375 | ||||||
261 | Medpace Holdings, Inc.(b) | 8,276 | ||||||
545 | Meridian Bioscience, Inc. | 8,066 | ||||||
250 | Merit Medical Systems, Inc.(b) | 8,425 | ||||||
2,339 | Merrimack Pharmaceuticals, Inc.(b)(c) | 7,789 | ||||||
792 | MiMedx Group, Inc.(b) | 10,050 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
911 | Minerva Neurosciences, Inc.(b) | $ | 6,924 | |||||
1,385 | Mirati Therapeutics, Inc.(b) | 6,302 | ||||||
165 | Molina Healthcare, Inc.(b) | 8,215 | ||||||
527 | Momenta Pharmaceuticals, Inc.(b) | 7,562 | ||||||
508 | MyoKardia, Inc.(b) | 6,629 | ||||||
623 | Myovant Sciences Ltd. (Bermuda)(b) | 8,093 | ||||||
369 | Myriad Genetics, Inc.(b) | 6,786 | ||||||
369 | Nanostring Technologies, Inc.(b) | 6,450 | ||||||
1,484 | Nanthealth, Inc.(b) | 4,615 | ||||||
805 | Natera, Inc.(b) | 7,285 | ||||||
98 | National Healthcare Corp. | 7,293 | ||||||
372 | National Research Corp., Class A | 9,226 | ||||||
183 | Natus Medical, Inc.(b) | 6,405 | ||||||
314 | Nektar Therapeutics(b) | 5,957 | ||||||
110 | Neogen Corp.(b) | 6,856 | ||||||
932 | NeoGenomics, Inc.(b) | 7,037 | ||||||
1,009 | Neos Therapeutics, Inc.(b) | 7,164 | ||||||
77 | Nevro Corp.(b) | 7,255 | ||||||
348 | NewLink Genetics Corp.(b) | 6,504 | ||||||
4,155 | Nobilis Health Corp.(b) | 5,194 | ||||||
5,562 | Novavax, Inc.(b) | 4,539 | ||||||
1,024 | Novocure Ltd.(b) | 11,571 | ||||||
95 | NuVasive, Inc.(b) | 6,888 | ||||||
270 | NxStage Medical, Inc.(b) | 8,070 | ||||||
692 | Obalon Therapeutics, Inc.(b) | 7,349 | ||||||
769 | Ocular Therapeutix, Inc.(b) | 7,659 | ||||||
622 | Omeros Corp.(b) | 10,151 | ||||||
180 | Omnicell, Inc.(b) | 7,452 | ||||||
770 | OncoMed Pharmaceuticals, Inc.(b) | 3,034 | ||||||
2,090 | Ophthotech Corp.(b) | 6,207 | ||||||
586 | OraSure Technologies, Inc.(b) | 7,682 | ||||||
2,347 | Organovo Holdings, Inc.(b) | 6,806 | ||||||
181 | Orthofix International NV(b) | 7,159 | ||||||
539 | Otonomy, Inc.(b) | 7,196 | ||||||
4,155 | OvaScience, Inc.(b) | 6,274 | ||||||
208 | Owens & Minor, Inc. | 7,207 | ||||||
455 | Oxford Immunotec Global PLC(b) | 7,002 | ||||||
1,413 | Pacific Biosciences of California, Inc.(b) | 5,567 | ||||||
150 | Pacira Pharmaceuticals, Inc.(b) | 7,283 | ||||||
448 | Paratek Pharmaceuticals, Inc.(b) | 9,610 | ||||||
114 | PAREXEL International Corp.(b) | 7,277 | ||||||
3,480 | PDL BioPharma, Inc. | 7,830 | ||||||
90 | Penumbra, Inc.(b) | 7,691 | ||||||
1,261 | Pfenex, Inc.(b) | 6,065 | ||||||
8,998 | PharmAthene, Inc. | 6,540 | ||||||
299 | PharMerica Corp.(b) | 7,056 | ||||||
258 | Phibro Animal Health Corp., Class A | 7,676 | ||||||
185 | Portola Pharmaceuticals, Inc.(b) | 7,398 | ||||||
118 | PRA Health Sciences, Inc.(b) | 7,547 | ||||||
126 | Prestige Brands Holdings, Inc.(b) | 7,234 | ||||||
637 | Progenics Pharmaceuticals, Inc.(b) | 5,045 | ||||||
537 | Protagonist Therapeutics, Inc.(b) | 5,434 | ||||||
680 | Proteostasis Therapeutics, Inc.(b) | 4,111 | ||||||
136 | Prothena Corp. PLC (Ireland)(b) | 7,362 | ||||||
165 | Providence Service Corp. (The)(b) | 7,260 | ||||||
836 | PTC Therapeutics, Inc.(b) | 10,157 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
176 | Puma Biotechnology, Inc.(b) | $ | 7,146 | |||||
481 | Quality Systems, Inc.(b) | 6,859 | ||||||
326 | Quidel Corp.(b) | 7,879 | ||||||
1,033 | Quorum Health Corp.(b) | 4,411 | ||||||
320 | Ra Pharmaceuticals, Inc.(b) | 7,552 | ||||||
189 | Radius Health, Inc.(b) | 7,384 | ||||||
1,197 | RadNet, Inc.(b) | 7,242 | �� | |||||
272 | Reata Pharmaceuticals, Inc., Class A(b) | 5,641 | ||||||
352 | REGENXBIO, Inc.(b) | 7,357 | ||||||
204 | Repligen Corp.(b) | 7,505 | ||||||
403 | Retrophin, Inc.(b) | 7,895 | ||||||
356 | Revance Therapeutics, Inc.(b) | 7,743 | ||||||
2,316 | Rigel Pharmaceuticals, Inc.(b) | 6,925 | ||||||
1,201 | Rockwell Medical, Inc.(b) | 10,329 | ||||||
1,884 | RTI Surgical, Inc.(b) | 7,630 | ||||||
109 | Sage Therapeutics, Inc.(b) | 7,739 | ||||||
1,682 | Sangamo Therapeutics, Inc.(b) | 8,074 | ||||||
238 | Sarepta Therapeutics, Inc.(b) | 8,630 | ||||||
736 | SciClone Pharmaceuticals, Inc.(b) | 7,102 | ||||||
579 | Select Medical Holdings Corp.(b) | 7,961 | ||||||
649 | Selecta Biosciences, Inc.(b) | 7,827 | ||||||
3,818 | Senseonics Holdings, Inc.(b) | 6,452 | ||||||
660 | Seres Therapeutics, Inc.(b) | 6,488 | ||||||
1,682 | Sorrento Therapeutics, Inc.(b) | 3,280 | ||||||
135 | Spark Therapeutics, Inc.(b) | 7,826 | ||||||
260 | Spectranetics Corp. (The)(b) | 7,436 | ||||||
1,079 | Spectrum Pharmaceuticals, Inc.(b) | 8,211 | ||||||
740 | STAAR Surgical Co.(b) | 7,696 | ||||||
831 | Stemline Therapeutics, Inc.(b) | 7,396 | ||||||
657 | Sucampo Pharmaceuticals, Inc., Class A(b) | 6,669 | ||||||
249 | Supernus Pharmaceuticals, Inc.(b) | 8,117 | ||||||
369 | Surgery Partners, Inc.(b) | 6,347 | ||||||
301 | SurModics, Inc.(b) | 6,878 | ||||||
545 | Syndax Pharmaceuticals, Inc.(b) | 5,172 | ||||||
1,580 | Synergy Pharmaceuticals, Inc.(b) | 6,510 | ||||||
9,846 | Synthetic Biologics, Inc.(b) | 5,612 | ||||||
485 | Syros Pharmaceuticals, Inc.(b) | 7,367 | ||||||
1,353 | T2 Biosystems, Inc.(b) | 6,508 | ||||||
526 | Tabula Rasa Healthcare, Inc.(b) | 7,090 | ||||||
392 | Tactile Systems Technology, Inc.(b) | 7,389 | ||||||
295 | Teladoc, Inc.(b) | 7,316 | ||||||
969 | Teligent, Inc.(b) | 7,645 | ||||||
46 | TESARO, Inc.(b) | 6,789 | ||||||
874 | Tetraphase Pharmaceuticals, Inc.(b) | 6,931 | ||||||
648 | TG Therapeutics, Inc.(b) | 7,160 | ||||||
1,069 | TherapeuticsMD, Inc.(b)(c) | 5,452 | ||||||
212 | Theravance Biopharma, Inc. (Cayman Islands)(b) | 8,550 | ||||||
2,140 | Titan Pharmaceuticals, Inc.(b) | 6,313 | ||||||
252 | Tivity Health, Inc.(b) | 8,467 | ||||||
99 | Tobira Therapeutics, Inc.(b) | 1,360 | ||||||
6,364 | TransEnterix, Inc.(b) | 4,137 | ||||||
1,968 | Trevena, Inc.(b) | 6,435 | ||||||
426 | Triple-S Management Corp., Class B(b) | 7,711 | ||||||
6,142 | Trovagene, Inc.(b) | 5,712 | ||||||
112 | U.S. Physical Therapy, Inc. | 7,347 | ||||||
98 | Ultragenyx Pharmaceutical, Inc.(b) | 6,310 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
118 | Utah Medical Products, Inc. | $ | 7,387 | |||||
501 | Vanda Pharmaceuticals, Inc.(b) | 7,640 | ||||||
775 | Veracyte, Inc.(b) | 6,564 | ||||||
345 | Versartis, Inc.(b) | 6,348 | ||||||
872 | Viewray, Inc.(b) | 6,017 | ||||||
1,766 | Vital Therapies, Inc.(b) | 7,064 | ||||||
430 | Vocera Communications, Inc.(b) | 10,905 | ||||||
617 | Voyager Therapeutics, Inc.(b) | 6,441 | ||||||
1,193 | vTv Therapeutics, Inc., Class A(b) | 6,573 | ||||||
272 | WaVe Life Sciences Ltd.(b) | 5,739 | ||||||
232 | Wright Medical Group NV(b) | 7,050 | ||||||
368 | XBiotech, Inc.(b) | 4,004 | ||||||
298 | Xencor, Inc.(b) | 7,650 | ||||||
1,497 | Zafgen, Inc.(b) | 7,305 | ||||||
1,203 | ZIOPHARM Oncology, Inc.(b)(c) | 8,469 | ||||||
679 | Zogenix, Inc.(b) | 7,469 | ||||||
|
| |||||||
2,450,280 | ||||||||
|
| |||||||
Industrials—14.0% | ||||||||
554 | AAON, Inc. | 20,304 | ||||||
277 | AAR Corp. | 9,969 | ||||||
218 | ABM Industries, Inc. | 9,415 | ||||||
1,887 | Acacia Research Corp.(b) | 10,284 | ||||||
723 | ACCO Brands Corp.(b) | 10,303 | ||||||
361 | Actuant Corp., Class A | 9,855 | ||||||
417 | Advanced Disposal Services, Inc.(b) | 9,916 | ||||||
927 | Advanced Drainage Systems, Inc. | 21,367 | ||||||
212 | Advisory Board Co. (The)(b) | 10,833 | ||||||
428 | Aegion Corp.(b) | 9,767 | ||||||
437 | Aerojet Rocketdyne Holdings, Inc.(b) | 9,793 | ||||||
346 | Aerovironment, Inc.(b) | 9,885 | ||||||
604 | Air Transport Services Group, Inc.(b) | 11,108 | ||||||
403 | Aircastle Ltd. | 9,519 | ||||||
126 | Alamo Group, Inc. | 9,962 | ||||||
212 | Albany International Corp., Class A | 10,335 | ||||||
59 | Allegiant Travel Co. | 8,579 | ||||||
467 | Allied Motion Technologies, Inc. | 10,573 | ||||||
251 | Altra Industrial Motion Corp. | 11,082 | ||||||
234 | American Railcar Industries, Inc. | 9,816 | ||||||
1,488 | American Superconductor Corp.(b) | 7,752 | ||||||
92 | American Woodmark Corp.(b) | 8,455 | ||||||
352 | Apogee Enterprises, Inc. | 19,184 | ||||||
154 | Applied Industrial Technologies, Inc. | 9,856 | ||||||
536 | Aqua Metals, Inc.(b)(c) | 8,844 | ||||||
2,649 | ARC Document Solutions, Inc.(b) | 9,748 | ||||||
371 | ArcBest Corp. | 9,813 | ||||||
146 | Argan, Inc. | 9,760 | ||||||
1,094 | Armstrong Flooring, Inc.(b) | 20,994 | ||||||
155 | Astec Industries, Inc. | 9,819 | ||||||
321 | Astronics Corp.(b) | 10,436 | ||||||
367 | Atkore International Group, Inc.(b) | 9,637 | ||||||
183 | Atlas Air Worldwide Holdings, Inc.(b) | 10,614 | ||||||
418 | Axon Enterprise, Inc.(b) | 10,274 | ||||||
167 | AZZ, Inc. | 9,861 | ||||||
1,065 | Babcock & Wilcox Enterprises, Inc.(b) | 9,979 | ||||||
188 | Barnes Group, Inc. | 10,334 | ||||||
181 | Barrett Business Services, Inc. | 10,436 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
413 | Beacon Roofing Supply, Inc.(b) | $ | 20,472 | |||||
572 | Blue Bird Corp.(b) | 10,639 | ||||||
890 | BMC Stock Holdings, Inc.(b) | 20,737 | ||||||
245 | Brady Corp., Class A | 9,543 | ||||||
436 | Briggs & Stratton Corp. | 10,896 | ||||||
183 | Brink’s Co. (The) | 11,236 | ||||||
1,389 | Builders FirstSource, Inc.(b) | 22,238 | ||||||
601 | Caesarstone Sdot-Yam Ltd. (Israel)(b) | 23,860 | ||||||
664 | CAI International, Inc.(b) | 13,692 | ||||||
682 | Casella Waste Systems, Inc., Class A(b) | 10,264 | ||||||
691 | CBIZ, Inc.(b) | 10,883 | ||||||
894 | CECO Environmental Corp. | 10,093 | ||||||
1,382 | Celadon Group, Inc. | 5,459 | ||||||
285 | Chart Industries, Inc.(b) | 10,405 | ||||||
166 | CIRCOR International, Inc. | 11,074 | ||||||
2,295 | Cogint, Inc.(b)(c) | 12,163 | ||||||
385 | Columbus McKinnon Corp. | 10,060 | ||||||
576 | Comfort Systems USA, Inc. | 21,139 | ||||||
786 | Continental Building Products, Inc.(b) | 19,139 | ||||||
1,510 | Costamare, Inc. (Monaco) | 10,177 | ||||||
526 | Covenant Transportation Group, Inc., Class A(b) | 9,852 | ||||||
273 | CRA International, Inc. | 10,358 | ||||||
265 | CSW Industrials, Inc.(b) | 9,381 | ||||||
175 | Cubic Corp. | 9,082 | ||||||
102 | Curtiss-Wright Corp. | 9,533 | ||||||
133 | Deluxe Corp. | 9,564 | ||||||
306 | DigitalGlobe, Inc.(b) | 9,853 | ||||||
1,606 | DMC Global, Inc. | 24,572 | ||||||
318 | Douglas Dynamics, Inc. | 10,144 | ||||||
330 | Ducommun, Inc.(b) | 9,699 | ||||||
286 | DXP Enterprises, Inc.(b) | 10,433 | ||||||
106 | Dycom Industries, Inc.(b) | 11,200 | ||||||
461 | Echo Global Logistics, Inc.(b) | 8,644 | ||||||
155 | EMCOR Group, Inc. | 10,190 | ||||||
209 | Encore Wire Corp. | 9,238 | ||||||
617 | Energous Corp.(b)(c) | 7,787 | ||||||
1,269 | Energy Recovery, Inc.(b) | 10,710 | ||||||
125 | EnerSys | 10,389 | ||||||
339 | Engility Holdings, Inc.(b) | 9,611 | ||||||
605 | Ennis, Inc. | 10,648 | ||||||
148 | EnPro Industries, Inc. | 10,456 | ||||||
167 | ESCO Technologies, Inc. | 9,828 | ||||||
656 | Essendant, Inc. | 10,955 | ||||||
112 | Esterline Technologies Corp.(b) | 10,242 | ||||||
950 | ExOne Co. (The)(b) | 9,585 | ||||||
163 | Exponent, Inc. | 9,967 | ||||||
689 | Federal Signal Corp. | 10,755 | ||||||
202 | Forward Air Corp. | 10,740 | ||||||
1,172 | Foundation Building Materials, Inc.(b) | 18,975 | ||||||
495 | Franklin Covey Co.(b) | 10,519 | ||||||
231 | Franklin Electric Co., Inc. | 9,494 | ||||||
760 | FreightCar America, Inc. | 9,926 | ||||||
236 | FTI Consulting, Inc.(b) | 8,163 | ||||||
162 | GATX Corp. | 9,704 | ||||||
669 | Gencor Industries, Inc.(b) | 11,105 | ||||||
254 | Generac Holdings, Inc.(b) | 8,933 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
563 | General Cable Corp. | $ | 10,134 | |||||
501 | Gibraltar Industries, Inc.(b) | 19,664 | ||||||
564 | Global Brass & Copper Holdings, Inc. | 20,107 | ||||||
584 | GMS, Inc.(b) | 21,117 | ||||||
317 | Gorman-Rupp Co. (The) | 9,073 | ||||||
399 | GP Strategies Corp.(b) | 10,813 | ||||||
413 | Graham Corp. | 9,115 | ||||||
202 | Granite Construction, Inc. | 10,647 | ||||||
2,309 | Great Lakes Dredge & Dock Corp.(b) | 10,506 | ||||||
226 | Greenbrier Cos., Inc. (The) | 9,820 | ||||||
840 | Griffon Corp. | 20,160 | ||||||
389 | H&E Equipment Services, Inc. | 8,216 | ||||||
888 | Hardinge, Inc. | 9,324 | ||||||
757 | Harsco Corp.(b) | 9,879 | ||||||
199 | Hawaiian Holdings, Inc.(b) | 10,806 | ||||||
1,602 | HC2 Holdings, Inc.(b) | 9,356 | ||||||
225 | Healthcare Services Group, Inc. | 10,330 | ||||||
474 | Heartland Express, Inc. | 9,537 | ||||||
366 | Heidrick & Struggles International, Inc. | 7,869 | ||||||
714 | Heritage-Crystal Clean, Inc.(b) | 10,746 | ||||||
300 | Herman Miller, Inc. | 9,930 | ||||||
1,932 | Hill International, Inc.(b) | 7,825 | ||||||
264 | Hillenbrand, Inc. | 9,742 | ||||||
208 | HNI Corp. | 9,726 | ||||||
205 | Hub Group, Inc., Class A(b) | 8,026 | ||||||
316 | Hurco Cos., Inc. | 9,164 | ||||||
238 | Huron Consulting Group, Inc.(b) | 10,591 | ||||||
167 | Hyster-Yale Materials Handling, Inc. | 10,038 | ||||||
232 | ICF International, Inc.(b) | 10,243 | ||||||
520 | IES Holdings, Inc.(b) | 10,400 | ||||||
996 | InnerWorkings, Inc.(b) | 10,548 | ||||||
109 | Insperity, Inc. | 9,957 | ||||||
580 | Insteel Industries, Inc. | 20,190 | ||||||
1,081 | Interface, Inc. | 21,512 | ||||||
618 | Jeld-Wen Holding, Inc.(b) | 20,413 | ||||||
108 | John Bean Technologies Corp. | 9,574 | ||||||
162 | Kadant, Inc. | 10,068 | ||||||
199 | Kaman Corp. | 9,554 | ||||||
439 | Kelly Services, Inc., Class A | 9,798 | ||||||
254 | Kennametal, Inc. | 10,561 | ||||||
1,014 | KEYW Holding Corp. (The)(b) | 9,623 | ||||||
404 | Kforce, Inc. | 9,171 | ||||||
572 | Kimball International, Inc., Class B | 10,164 | ||||||
214 | KLX, Inc.(b) | 10,122 | ||||||
297 | Knight Transportation, Inc. | 10,187 | ||||||
403 | Knoll, Inc. | 9,656 | ||||||
305 | Korn/Ferry International | 9,882 | ||||||
1,167 | Kratos Defense & Security Solutions, Inc.(b) | 8,893 | ||||||
886 | Lawson Products, Inc.(b) | 20,156 | ||||||
1,206 | Layne Christensen Co.(b) | 9,612 | ||||||
118 | Lindsay Corp. | 10,249 | ||||||
2,095 | LSI Industries, Inc. | 19,002 | ||||||
183 | Lydall, Inc.(b) | 9,589 | ||||||
1,638 | Manitowoc Co., Inc. (The)(b) | 9,779 | ||||||
395 | Marten Transport Ltd. | 9,796 | ||||||
252 | Masonite International Corp.(b) | 20,966 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
246 | MasTec, Inc.(b) | $ | 10,861 | |||||
308 | Matson, Inc. | 9,764 | ||||||
123 | Matthews International Corp., Class A | 8,432 | ||||||
288 | McGrath RentCorp | 10,025 | ||||||
255 | Mercury Systems, Inc.(b) | 9,532 | ||||||
490 | Meritor, Inc.(b) | 8,727 | ||||||
531 | Milacron Holdings Corp.(b) | 9,993 | ||||||
386 | Miller Industries, Inc. | 9,804 | ||||||
462 | Mistras Group, Inc.(b) | 10,395 | ||||||
317 | Mobile Mini, Inc. | 9,098 | ||||||
147 | Moog, Inc., Class A(b) | 10,092 | ||||||
1,127 | MRC Global, Inc.(b) | 20,545 | ||||||
136 | MSA Safety, Inc. | 10,588 | ||||||
608 | Mueller Industries, Inc. | 19,480 | ||||||
1,691 | Mueller Water Products, Inc., Class A | 19,024 | ||||||
135 | Multi-Color Corp. | 10,368 | ||||||
240 | MYR Group, Inc.(b) | 10,142 | ||||||
81 | National Presto Industries, Inc. | 8,452 | ||||||
424 | Navigant Consulting, Inc.(b) | 10,163 | ||||||
376 | Navistar International Corp.(b) | 10,118 | ||||||
1,244 | NCI Building Systems, Inc.(b) | 21,770 | ||||||
535 | Neff Corp., Class A(b) | 9,416 | ||||||
833 | NN, Inc. | 22,991 | ||||||
1,904 | NOW, Inc.(b) | 32,387 | ||||||
255 | NV5 Global, Inc.(b) | 9,869 | ||||||
440 | Omega Flex, Inc. | 24,715 | ||||||
204 | On Assignment, Inc.(b) | 10,561 | ||||||
1,288 | Orion Group Holdings, Inc.(b) | 9,724 | ||||||
266 | Park-Ohio Holdings Corp. | 10,467 | ||||||
290 | Patrick Industries, Inc.(b) | 20,605 | ||||||
1,947 | PGT Innovations, Inc.(b) | 21,222 | ||||||
7,395 | Plug Power, Inc.(b)(c) | 16,565 | ||||||
1,044 | Ply Gem Holdings, Inc.(b) | 20,097 | ||||||
303 | Powell Industries, Inc. | 10,450 | ||||||
196 | Preformed Line Products Co. | 10,374 | ||||||
412 | Primoris Services Corp. | 9,464 | ||||||
186 | Proto Labs, Inc.(b) | 10,788 | ||||||
403 | Quad/Graphics, Inc., Class A | 10,583 | ||||||
1,039 | Quanex Building Products Corp. | 21,196 | ||||||
1,920 | Radiant Logistics, Inc.(b) | 11,520 | ||||||
325 | Raven Industries, Inc. | 10,075 | ||||||
218 | RBC Bearings, Inc.(b) | 21,865 | ||||||
579 | Resources Connection, Inc. | 8,048 | ||||||
341 | REV Group, Inc. | 9,616 | ||||||
868 | Rexnord Corp.(b) | 21,179 | ||||||
1,500 | Roadrunner Transportation Systems, Inc.(b) | 10,080 | ||||||
789 | RPX Corp.(b) | 10,131 | ||||||
294 | Rush Enterprises, Inc., Class A(b) | 11,099 | ||||||
221 | Saia, Inc.(b) | 10,641 | ||||||
1,064 | Scorpio Bulkers, Inc.(b) | 7,927 | ||||||
478 | Simpson Manufacturing Co., Inc. | 19,937 | ||||||
174 | Siteone Landscape Supply, Inc.(b) | 8,319 | ||||||
269 | SkyWest, Inc. | 10,007 | ||||||
277 | SP Plus Corp.(b) | 9,543 | ||||||
1,288 | Spartan Motors, Inc. | 10,626 | ||||||
453 | Sparton Corp.(b) | 10,088 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
397 | SPX Corp.(b) | $ | 9,552 | |||||
285 | SPX FLOW, Inc.(b) | 10,300 | ||||||
100 | Standex International Corp. | 9,395 | ||||||
554 | Steelcase, Inc., Class A | 9,446 | ||||||
263 | Sun Hydraulics Corp. | 10,215 | ||||||
6,356 | Sunrun, Inc.(b) | 33,623 | ||||||
491 | Supreme Industries, Inc., Class A | 9,840 | ||||||
470 | Swift Transportation Co., Class A(b) | 11,553 | ||||||
376 | Team, Inc.(b) | 10,114 | ||||||
83 | Teledyne Technologies, Inc.(b) | 11,191 | ||||||
134 | Tennant Co. | 9,816 | ||||||
236 | Tetra Tech, Inc. | 10,372 | ||||||
688 | Textainer Group Holdings Ltd. | 10,286 | ||||||
488 | Thermon Group Holdings, Inc.(b) | 10,004 | ||||||
981 | Titan International, Inc. | 10,507 | ||||||
702 | Titan Machinery, Inc.(b) | 11,127 | ||||||
1,918 | TPI Composites, Inc.(b) | 37,689 | ||||||
893 | TRC Cos., Inc.(b) | 15,628 | ||||||
290 | Trex Co., Inc.(b) | 21,225 | ||||||
455 | TriMas Corp.(b) | 10,442 | ||||||
329 | TriNet Group, Inc.(b) | 9,673 | ||||||
408 | Triton International Ltd. (Bermuda)(b) | 12,489 | ||||||
393 | Triumph Group, Inc. | 10,297 | ||||||
350 | TrueBlue, Inc.(b) | 9,573 | ||||||
324 | Tutor Perini Corp.(b) | 9,995 | ||||||
70 | UniFirst Corp. | 9,744 | ||||||
671 | Univar, Inc.(b) | 20,029 | ||||||
209 | Universal Forest Products, Inc. | 19,916 | ||||||
731 | Universal Logistics Holdings, Inc. | 10,197 | ||||||
202 | US Ecology, Inc. | 9,524 | ||||||
1,298 | USA Truck, Inc.(b) | 8,710 | ||||||
425 | Vectrus, Inc.(b) | 10,812 | ||||||
388 | Veritiv Corp.(b) | 20,040 | ||||||
181 | Viad Corp. | 8,181 | ||||||
592 | Vicor Corp.(b) | 10,656 | ||||||
251 | VSE Corp. | 10,705 | ||||||
461 | Wabash National Corp. | 10,502 | ||||||
125 | WageWorks, Inc.(b) | 9,225 | ||||||
155 | Watts Water Technologies, Inc., Class A | 9,641 | ||||||
361 | Werner Enterprises, Inc. | 9,855 | ||||||
849 | Wesco Aircraft Holdings, Inc.(b) | 10,315 | ||||||
1,839 | West Corp. | 49,083 | ||||||
442 | Willis Lease Finance Corp.(b) | 10,038 | ||||||
143 | Woodward, Inc. | 9,677 | ||||||
202 | XPO Logistics, Inc.(b) | 9,977 | ||||||
881 | YRC Worldwide, Inc.(b) | 9,391 | ||||||
|
| |||||||
3,054,909 | ||||||||
|
| |||||||
Information Technology—13.4% | ||||||||
220 | 2U, Inc.(b) | 9,988 | ||||||
701 | 3D Systems Corp.(b) | 11,097 | ||||||
3,103 | 8x8, Inc.(b) | 45,149 | ||||||
1,082 | A10 Networks, Inc.(b) | 8,764 | ||||||
177 | Acacia Communications, Inc.(b)(c) | 8,114 | ||||||
456 | ACI Worldwide, Inc.(b) | 9,799 | ||||||
708 | Actua Corp.(b) | 9,912 | ||||||
356 | Acxiom Corp.(b) | 10,288 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
465 | ADTRAN, Inc. | $ | 9,300 | |||||
144 | Advanced Energy Industries, Inc.(b) | 10,627 | ||||||
718 | Advanced Micro Devices, Inc.(b) | 9,549 | ||||||
2,304 | Aerohive Networks, Inc.(b) | 8,916 | ||||||
1,040 | Agilysys, Inc.(b) | 10,296 | ||||||
316 | Alarm.com Holdings, Inc.(b) | 10,305 | ||||||
2,666 | ALJ Regional Holdings, Inc.(b) | 8,931 | ||||||
577 | Alpha & Omega Semiconductor Ltd.(b) | 9,549 | ||||||
182 | Ambarella, Inc.(b) | 10,232 | ||||||
1,359 | Amber Road, Inc.(b) | 11,130 | ||||||
962 | American Software, Inc., Class A | 10,553 | ||||||
912 | Amkor Technology, Inc.(b) | 10,743 | ||||||
1,465 | Angie’s List, Inc.(b) | 8,614 | ||||||
126 | Anixter International, Inc.(b) | 10,275 | ||||||
389 | AppFolio, Inc., Class A(b) | 10,328 | ||||||
192 | Applied Optoelectronics, Inc.(b) | 9,483 | ||||||
840 | Apptio, Inc., Class A(b) | 10,962 | ||||||
173 | Aspen Technology, Inc.(b) | 10,638 | ||||||
809 | Autobytel, Inc.(b) | 10,606 | ||||||
2,030 | Avid Technology, Inc.(b) | 11,378 | ||||||
619 | AVX Corp. | 10,467 | ||||||
629 | Axcelis Technologies, Inc.(b) | 12,108 | ||||||
265 | Badger Meter, Inc. | 10,534 | ||||||
1,027 | Bankrate, Inc.(b) | 10,886 | ||||||
431 | Barracuda Networks, Inc.(b) | 8,762 | ||||||
2,387 | Bazaarvoice, Inc.(b) | 11,219 | ||||||
436 | Bel Fuse, Inc., Class B | 10,551 | ||||||
297 | Belden, Inc. | 20,701 | ||||||
310 | Benchmark Electronics, Inc.(b) | 9,827 | ||||||
378 | Benefitfocus, Inc.(b) | 11,907 | ||||||
1,132 | Black Box Corp. | 11,207 | ||||||
130 | Blackbaud, Inc. | 10,453 | ||||||
120 | Blackhawk Network Holdings, Inc., Class A(b) | 4,854 | ||||||
344 | Blackline, Inc.(b) | 11,307 | ||||||
558 | Blucora, Inc.(b) | 10,295 | ||||||
413 | Bottomline Technologies (de), Inc.(b) | 9,623 | ||||||
605 | Box, Inc., Class A(b) | 10,430 | ||||||
1,238 | Brightcove, Inc.(b) | 10,771 | ||||||
236 | BroadSoft, Inc.(b) | 9,062 | ||||||
472 | Brooks Automation, Inc. | 11,923 | ||||||
275 | Cabot Microelectronics Corp. | 21,546 | ||||||
81 | CACI International, Inc., Class A(b) | 9,558 | ||||||
599 | CalAmp Corp.(b) | 10,746 | ||||||
1,395 | Calix, Inc.(b) | 9,346 | ||||||
482 | Callidus Software, Inc.(b) | 10,146 | ||||||
512 | Carbonite, Inc.(b) | 11,059 | ||||||
102 | Cardtronics PLC, Class A(b) | 4,241 | ||||||
696 | Care.com, Inc.(b) | 8,248 | ||||||
74 | Cass Information Systems, Inc. | 4,919 | ||||||
139 | Cavium, Inc.(b) | 9,570 | ||||||
289 | CEVA, Inc.(b) | 10,404 | ||||||
922 | ChannelAdvisor Corp.(b) | 10,880 | ||||||
419 | Ciena Corp.(b) | 9,599 | ||||||
99 | Cimpress NV (Netherlands)(b) | 8,126 | ||||||
167 | Cirrus Logic, Inc.(b) | 10,746 | ||||||
586 | Clearfield, Inc.(b) | 8,292 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
51 | Coherent, Inc.(b) | $ | 10,996 | |||||
579 | Cohu, Inc. | 10,845 | ||||||
201 | CommVault Systems, Inc.(b) | 10,140 | ||||||
673 | Comtech Telecommunications Corp. | 9,429 | ||||||
623 | Control4 Corp.(b) | 10,529 | ||||||
460 | Convergys Corp. | 10,355 | ||||||
257 | Cornerstone OnDemand, Inc.(b) | 10,095 | ||||||
417 | Coupa Software, Inc.(b) | 11,572 | ||||||
1,059 | CPI Card Group, Inc. | 3,812 | ||||||
477 | Cray, Inc.(b) | 8,538 | ||||||
269 | CSG Systems International, Inc. | 10,090 | ||||||
454 | CTS Corp. | 10,033 | ||||||
1,083 | Daktronics, Inc. | 10,245 | ||||||
2,281 | DHI Group, Inc.(b) | 8,782 | ||||||
338 | Diebold Nixdorf, Inc. | 9,532 | ||||||
836 | Digi International, Inc.(b) | 10,366 | ||||||
393 | Digimarc Corp.(b) | 11,338 | ||||||
418 | Diodes, Inc.(b) | 9,777 | ||||||
850 | DSP Group, Inc.(b) | 10,582 | ||||||
727 | Eastman Kodak Co.(b) | 7,997 | ||||||
163 | Ebix, Inc. | 10,057 | ||||||
1,508 | Electro Scientific Industries, Inc.(b) | 10,526 | ||||||
204 | Electronics for Imaging, Inc.(b) | 9,339 | ||||||
102 | Ellie Mae, Inc.(b) | 10,380 | ||||||
1,126 | EMCORE Corp. | 10,134 | ||||||
1,254 | Endurance International Group Holdings, Inc.(b) | 9,530 | ||||||
5,697 | EnerNOC, Inc.(b) | 32,188 | ||||||
435 | Entegris, Inc.(b) | 10,788 | ||||||
303 | Envestnet, Inc.(b) | 10,544 | ||||||
136 | EPAM Systems, Inc.(b) | 10,472 | ||||||
150 | ePlus, Inc.(b) | 10,688 | ||||||
511 | Everbridge, Inc.(b) | 11,860 | ||||||
292 | EVERTEC, Inc. | 4,628 | ||||||
764 | Exa Corp.(b) | 10,513 | ||||||
948 | Exar Corp.(b) | 12,333 | ||||||
204 | ExlService Holdings, Inc.(b) | 9,733 | ||||||
1,531 | Extreme Networks, Inc.(b) | 11,965 | ||||||
237 | Fabrinet (Thailand)(b) | 8,217 | ||||||
37 | Fair Isaac Corp. | 5,013 | ||||||
275 | FARO Technologies, Inc.(b) | 10,079 | ||||||
358 | Finisar Corp.(b) | 8,177 | ||||||
547 | Five9, Inc.(b) | 9,980 | ||||||
865 | FormFactor, Inc.(b) | 9,602 | ||||||
244 | Forrester Research, Inc. | 9,894 | ||||||
288 | Gigamon, Inc.(b) | 9,130 | ||||||
1,101 | Global Sources Ltd. (Hong Kong)(b) | 10,129 | ||||||
281 | Globant SA(b) | 10,647 | ||||||
4,673 | Glu Mobile, Inc.(b) | 10,795 | ||||||
3,982 | Gogo, Inc.(b)(c) | 50,213 | ||||||
296 | GrubHub, Inc.(b) | 12,722 | ||||||
426 | GTT Communications, Inc.(b) | 11,715 | ||||||
1,696 | Guidance Software, Inc.(b) | 10,261 | ||||||
498 | Hackett Group, Inc. (The) | 9,875 | ||||||
1,708 | Harmonic, Inc.(b) | 9,906 | ||||||
1,064 | Hortonworks, Inc.(b) | 11,076 | ||||||
165 | HubSpot, Inc.(b) | 11,063 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
551 | Ichor Holdings Ltd.(b) | $ | 10,689 | |||||
268 | II-VI, Inc.(b) | 8,884 | ||||||
1,194 | Immersion Corp.(b) | 10,471 | ||||||
244 | Imperva, Inc.(b) | 10,846 | ||||||
352 | Impinj, Inc.(b) | 13,193 | ||||||
912 | Infinera Corp.(b) | 9,047 | ||||||
3,063 | Information Services Group, Inc.(b) | 9,648 | ||||||
217 | Inphi Corp.(b) | 8,988 | ||||||
239 | Insight Enterprises, Inc.(b) | 10,062 | ||||||
340 | Instructure, Inc.(b) | 8,126 | ||||||
421 | Integrated Device Technology, Inc.(b) | 10,100 | ||||||
116 | InterDigital, Inc. | 10,428 | ||||||
779 | InvenSense, Inc.(b) | 10,018 | ||||||
151 | Itron, Inc.(b) | 9,792 | ||||||
698 | IXYS Corp. | 9,737 | ||||||
531 | j2 Global, Inc. | 47,917 | ||||||
2,277 | Jive Software, Inc.(b) | 11,499 | ||||||
619 | Kimball Electronics, Inc.(b) | 10,678 | ||||||
527 | Knowles Corp.(b) | 9,344 | ||||||
2,483 | Kopin Corp.(b) | 10,131 | ||||||
1,216 | KVH Industries, Inc.(b) | 9,728 | ||||||
1,407 | Lattice Semiconductor Corp.(b) | 9,652 | ||||||
4,060 | Limelight Networks, Inc.(b) | 12,748 | ||||||
1,237 | Liquidity Services, Inc.(b) | 9,649 | ||||||
60 | Littelfuse, Inc. | 9,249 | ||||||
1,501 | LivePerson, Inc.(b) | 10,582 | ||||||
104 | LogMeIn, Inc. | 11,752 | ||||||
192 | Lumentum Holdings, Inc.(b) | 8,208 | ||||||
222 | MACOM Technology Solutions Holdings, Inc.(b) | 10,851 | ||||||
280 | ManTech International Corp., Class A | 9,940 | ||||||
3,028 | Marchex, Inc., Class B(b) | 8,206 | ||||||
154 | MAXIMUS, Inc. | 9,392 | ||||||
378 | MaxLinear, Inc., Class A(b) | 10,520 | ||||||
1,661 | Maxwell Technologies, Inc.(b) | 10,132 | ||||||
1,891 | Meet Group, Inc. (The)(b) | 11,270 | ||||||
80 | Mesa Laboratories, Inc. | 11,186 | ||||||
226 | Methode Electronics, Inc. | 10,068 | ||||||
194 | Microsemi Corp.(b) | 9,106 | ||||||
53 | MicroStrategy, Inc., Class A(b) | 10,079 | ||||||
368 | MINDBODY, Inc., Class A(b) | 10,433 | ||||||
1,585 | Mitek Systems, Inc.(b) | 13,869 | ||||||
146 | MKS Instruments, Inc. | 11,425 | ||||||
2,252 | Mobileiron, Inc.(b) | 10,247 | ||||||
986 | Model N, Inc.(b) | 10,550 | ||||||
280 | MoneyGram International, Inc.(b) | 4,987 | ||||||
109 | Monolithic Power Systems, Inc. | 9,974 | ||||||
515 | Monotype Imaging Holdings, Inc. | 10,480 | ||||||
175 | MTS Systems Corp. | 8,129 | ||||||
340 | Nanometrics, Inc.(b) | 10,729 | ||||||
665 | NCI, Inc., Class A(b) | 9,875 | ||||||
1,127 | NeoPhotonics Corp.(b) | 8,746 | ||||||
192 | NETGEAR, Inc.(b) | 9,053 | ||||||
264 | NetScout Systems, Inc.(b) | 9,940 | ||||||
299 | NeuStar, Inc., Class A(b) | 9,927 | ||||||
275 | New Relic, Inc.(b) | 10,995 | ||||||
484 | NIC, Inc. | 10,333 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
368 | Novanta, Inc.(b) | $ | 10,322 | |||||
2,168 | Numerex Corp., Class A(b) | 9,756 | ||||||
122 | NVE Corp. | 9,932 | ||||||
1,035 | Oclaro, Inc.(b) | 8,290 | ||||||
133 | OSI Systems, Inc.(b) | 10,294 | ||||||
843 | Park City Group, Inc.(b) | 10,664 | ||||||
543 | Park Electrochemical Corp. | 9,405 | ||||||
183 | Paycom Software, Inc.(b) | 11,026 | ||||||
272 | Paylocity Holding Corp.(b) | 10,728 | ||||||
345 | PC Connection, Inc. | 9,915 | ||||||
447 | PDF Solutions, Inc.(b) | 8,502 | ||||||
237 | Pegasystems, Inc. | 10,795 | ||||||
572 | Perficient, Inc.(b) | 9,964 | ||||||
1,426 | PFSweb, Inc.(b) | 10,438 | ||||||
909 | Photronics, Inc.(b) | 10,454 | ||||||
1,239 | Planet Payment, Inc.(b) | 5,167 | ||||||
187 | Plantronics, Inc. | 10,210 | ||||||
173 | Plexus Corp.(b) | 8,994 | ||||||
155 | Power Integrations, Inc. | 10,222 | ||||||
352 | Progress Software Corp. | 10,461 | ||||||
134 | Proofpoint, Inc.(b) | 10,100 | ||||||
437 | PROS Holdings, Inc.(b) | 10,772 | ||||||
978 | Pure Storage, Inc., Class A(b) | 10,377 | ||||||
282 | Q2 Holdings, Inc.(b) | 10,758 | ||||||
368 | QAD, Inc., Class A | 11,114 | ||||||
276 | Qualys, Inc.(b) | 10,598 | ||||||
465 | Quantenna Communications, Inc.(b) | 8,556 | ||||||
2,226 | QuinStreet, Inc.(b) | 9,972 | ||||||
811 | Quotient Technology, Inc.(b) | 8,840 | ||||||
2,567 | Radisys Corp.(b) | 10,294 | ||||||
773 | Rambus, Inc.(b) | 9,678 | ||||||
687 | Rapid7, Inc.(b) | 11,645 | ||||||
2,154 | RealNetworks, Inc.(b) | 9,844 | ||||||
284 | RealPage, Inc.(b) | 10,522 | ||||||
553 | Reis, Inc. | 10,396 | ||||||
1,238 | RetailMeNot, Inc.(b) | 14,361 | ||||||
1,057 | Rightside Group Ltd.(b) | 10,612 | ||||||
368 | RingCentral, Inc., Class A(b) | 11,758 | ||||||
119 | Rogers Corp.(b) | 12,250 | ||||||
842 | Rosetta Stone, Inc.(b) | 9,473 | ||||||
1,795 | Rubicon Project, Inc. (The)(b) | 10,249 | ||||||
453 | Rudolph Technologies, Inc.(b) | 11,099 | ||||||
249 | Sanmina Corp.(b) | 9,275 | ||||||
757 | Sapiens International Corp. NV (Israel) | 8,978 | ||||||
250 | ScanSource, Inc.(b) | 9,875 | ||||||
114 | Science Applications International Corp. | 8,321 | ||||||
863 | SecureWorks Corp., Class A(b) | 7,465 | ||||||
293 | Semtech Corp.(b) | 10,006 | ||||||
2,615 | ServiceSource International, Inc.(b) | 9,832 | ||||||
1,708 | ShoreTel, Inc.(b) | 11,187 | ||||||
201 | Shutterstock, Inc.(b) | 8,689 | ||||||
1,753 | Sigma Designs, Inc.(b) | 10,869 | ||||||
209 | Silicom Ltd. (Israel) | 11,334 | ||||||
137 | Silicon Laboratories, Inc.(b) | 9,748 | ||||||
938 | Silver Spring Networks, Inc.(b) | 10,703 | ||||||
1,515 | Sonus Networks, Inc.(b) | 11,635 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
176 | SPS Commerce, Inc.(b) | $ | 9,726 | |||||
69 | Stamps.com, Inc.(b) | 7,324 | ||||||
517 | Stratasys Ltd.(b) | 12,801 | ||||||
388 | Super Micro Computer, Inc.(b) | 9,467 | ||||||
320 | Sykes Enterprises, Inc.(b) | 9,539 | ||||||
200 | Synaptics, Inc.(b) | 10,954 | ||||||
385 | Synchronoss Technologies, Inc.(b) | 6,160 | ||||||
85 | SYNNEX Corp. | 9,217 | ||||||
591 | Syntel, Inc. | 10,408 | ||||||
1,346 | Systemax, Inc. | 17,821 | ||||||
172 | Take-Two Interactive Software, Inc.(b) | 10,810 | ||||||
107 | Tech Data Corp.(b) | 10,235 | ||||||
1,107 | TechTarget, Inc.(b) | 10,240 | ||||||
1,201 | Telenav, Inc.(b) | 10,449 | ||||||
314 | TeleTech Holdings, Inc. | 9,813 | ||||||
553 | Tivo Corp. | 10,922 | ||||||
220 | Trade Desk, Inc. (The), Class A(b) | 8,217 | ||||||
703 | Travelport Worldwide Ltd. | 9,259 | ||||||
655 | TrueCar, Inc.(b) | 11,476 | ||||||
637 | TTM Technologies, Inc.(b) | 10,657 | ||||||
196 | Ubiquiti Networks, Inc.(b) | 10,098 | ||||||
644 | Ultra Clean Holdings, Inc.(b) | 12,391 | ||||||
338 | Ultratech, Inc.(b) | 10,316 | ||||||
690 | Unisys Corp.(b) | 7,797 | ||||||
119 | Universal Display Corp. | 10,633 | ||||||
2,477 | USA Technologies, Inc.(b) | 12,137 | ||||||
323 | Varonis Systems, Inc.(b) | 10,142 | ||||||
774 | VASCO Data Security International, Inc.(b) | 10,449 | ||||||
344 | Veeco Instruments, Inc.(b) | 11,352 | ||||||
244 | Verint Systems, Inc.(b) | 9,589 | ||||||
155 | ViaSat, Inc.(b) | 9,925 | ||||||
919 | Viavi Solutions, Inc.(b) | 9,190 | ||||||
4,718 | VirnetX Holding Corp.(b)(c) | 15,569 | ||||||
336 | Virtusa Corp.(b) | 10,409 | ||||||
613 | Vishay Intertechnology, Inc. | 10,023 | ||||||
601 | Vishay Precision Group, Inc.(b) | 10,337 | ||||||
517 | Web.com Group, Inc.(b) | 9,978 | ||||||
140 | WebMD Health Corp.(b) | 7,592 | ||||||
654 | Workiva, Inc., Class A(b) | 10,987 | ||||||
861 | Xactly Corp.(b) | 9,988 | ||||||
1,126 | Xcerra Corp.(b) | 11,035 | ||||||
482 | XO Group, Inc.(b) | 8,459 | ||||||
271 | Xperi Corp. | 9,106 | ||||||
375 | Zendesk, Inc.(b) | 10,781 | ||||||
2,144 | Zix Corp.(b) | 11,642 | ||||||
|
| |||||||
2,942,816 | ||||||||
|
| |||||||
Materials—6.9% | ||||||||
649 | A. Schulman, Inc. | 20,541 | ||||||
2,687 | AK Steel Holding Corp.(b) | 17,036 | ||||||
1,165 | Allegheny Technologies, Inc. | 21,378 | ||||||
1,260 | American Vanguard Corp. | 21,105 | ||||||
1,385 | Ampco-Pittsburgh Corp. | 20,152 | ||||||
246 | Balchem Corp. | 19,965 | ||||||
746 | Boise Cascade Co.(b) | 22,753 | ||||||
1,466 | Calgon Carbon Corp. | 21,330 | ||||||
551 | Carpenter Technology Corp. | 22,371 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Materials (continued) | ||||||||
1,680 | Century Aluminum Co.(b) | $ | 22,915 | |||||
212 | Chase Corp. | 21,730 | ||||||
584 | Chemours Co. (The) | 23,529 | ||||||
363 | Clearwater Paper Corp.(b) | 17,642 | ||||||
2,411 | Cliffs Natural Resources, Inc.(b) | 16,202 | ||||||
1,570 | Codexis, Inc.(b) | 6,908 | ||||||
2,545 | Coeur Mining, Inc.(b) | 23,058 | ||||||
1,066 | Commercial Metals Co. | 19,870 | ||||||
265 | Deltic Timber Corp. | 20,503 | ||||||
1,352 | Ferro Corp.(b) | 24,228 | ||||||
2,036 | Ferroglobe PLC | 19,647 | ||||||
2,742 | Flotek Industries, Inc.(b) | 32,931 | ||||||
1,112 | Forterra, Inc.(b) | 21,395 | ||||||
1,452 | FutureFuel Corp. | 22,448 | ||||||
612 | GCP Applied Technologies, Inc.(b) | 20,135 | ||||||
4,602 | Gold Resource Corp. | 15,187 | ||||||
365 | Greif, Inc., Class A | 21,396 | ||||||
390 | H.B. Fuller Co. | 20,604 | ||||||
416 | Hawkins, Inc. | 21,258 | ||||||
563 | Haynes International, Inc. | 23,809 | ||||||
857 | Headwaters, Inc.(b) | 20,362 | ||||||
3,968 | Hecla Mining Co. | 21,626 | ||||||
332 | Ingevity Corp.(b) | 20,992 | ||||||
377 | Innophos Holdings, Inc. | 18,073 | ||||||
325 | Innospec, Inc. | 21,450 | ||||||
249 | Kaiser Aluminum Corp. | 21,018 | ||||||
860 | KapStone Paper and Packaging Corp. | 18,137 | ||||||
471 | KMG Chemicals, Inc. | 24,751 | ||||||
485 | Koppers Holdings, Inc.(b) | 20,588 | ||||||
698 | Kraton Corp.(b) | 22,832 | ||||||
1,290 | Kronos Worldwide, Inc. | 22,601 | ||||||
847 | Louisiana-Pacific Corp.(b) | 21,802 | ||||||
2,325 | LSB Industries, Inc.(b)(c) | 25,621 | ||||||
620 | Materion Corp. | 23,591 | ||||||
275 | Minerals Technologies, Inc. | 21,642 | ||||||
1,126 | Multi Packaging Solutions International Ltd.(b) | 20,212 | ||||||
1,348 | Myers Industries, Inc. | 21,972 | ||||||
265 | Neenah Paper, Inc. | 20,763 | ||||||
611 | Olin Corp. | 19,631 | ||||||
1,043 | Olympic Steel, Inc. | 23,520 | ||||||
2,203 | OMNOVA Solutions, Inc.(b) | 20,929 | ||||||
922 | P.H. Glatfelter Co. | 19,832 | ||||||
604 | PolyOne Corp. | 23,683 | ||||||
156 | Quaker Chemical Corp. | 22,558 | ||||||
1,587 | Rayonier Advanced Materials, Inc. | 21,028 | ||||||
1,502 | Real Industry, Inc.(b) | 3,905 | ||||||
1,824 | Ryerson Holding Corp.(b) | 24,989 | ||||||
983 | Schnitzer Steel Industries, Inc., Class A | 18,579 | ||||||
488 | Schweitzer-Mauduit International, Inc. | 21,008 | ||||||
251 | Sensient Technologies Corp. | 20,532 | ||||||
258 | Stepan Co. | 21,878 | ||||||
1,158 | Stillwater Mining Co.(b) | 20,821 | ||||||
858 | Summit Materials, Inc., Class A(b) | 22,016 | ||||||
3,396 | SunCoke Energy, Inc.(b) | 31,141 | ||||||
1,120 | TimkenSteel Corp.(b) | 16,890 | ||||||
2,862 | Trecora Resources(b) | 31,625 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Materials (continued) | ||||||||
1,179 | Tredegar Corp. | $ | 20,220 | |||||
302 | Trinseo SA | 20,053 | ||||||
1,210 | Tronox Ltd., Class A | 19,977 | ||||||
803 | UFP Technologies, Inc.(b) | 21,440 | ||||||
259 | United States Lime & Minerals, Inc. | 20,492 | ||||||
302 | US Concrete, Inc.(b) | 18,724 | ||||||
403 | Worthington Industries, Inc. | 17,531 | ||||||
|
| |||||||
1,513,061 | ||||||||
|
| |||||||
Real Estate—2.4% | ||||||||
155 | Acadia Realty Trust REIT | 4,507 | ||||||
97 | Agree Realty Corp. REIT | 4,703 | ||||||
108 | Alexander & Baldwin, Inc. | 4,969 | ||||||
11 | Alexander’s, Inc. REIT | 4,783 | ||||||
161 | Altisource Portfolio Solutions SA(b) | 3,556 | ||||||
328 | Altisource Residential Corp. REIT | 4,717 | ||||||
111 | American Assets Trust, Inc. REIT | 4,754 | ||||||
337 | Armada Hoffler Properties, Inc. REIT | 4,806 | ||||||
440 | Ashford Hospitality Prime, Inc. REIT | 4,660 | ||||||
799 | Ashford Hospitality Trust, Inc. REIT | 4,994 | ||||||
384 | Bluerock Residential Growth REIT, Inc., Class A REIT | 4,785 | ||||||
294 | CareTrust REIT, Inc. REIT | 5,004 | ||||||
422 | CatchMark Timber Trust, Inc., Class A REIT | 4,942 | ||||||
510 | CBL & Associates Properties, Inc. REIT | 4,717 | ||||||
926 | Cedar Realty Trust, Inc. REIT | 4,982 | ||||||
240 | Chatham Lodging Trust REIT | 4,646 | ||||||
198 | Chesapeake Lodging Trust REIT | 4,615 | ||||||
391 | City Office REIT, Inc. REIT | 4,907 | ||||||
345 | Clipper Realty, Inc. REIT | 3,795 | ||||||
138 | Colony Starwood Homes REIT | 4,771 | ||||||
203 | Community Healthcare Trust, Inc. REIT | 5,018 | ||||||
90 | Consolidated-Tomoka Land Co. | 4,881 | ||||||
142 | CorEnergy Infrastructure Trust, Inc. REIT | 5,180 | ||||||
52 | CoreSite Realty Corp. REIT | 5,088 | ||||||
569 | Cousins Properties, Inc. REIT | 4,831 | ||||||
428 | DiamondRock Hospitality Co. REIT | 4,712 | ||||||
94 | DuPont Fabros Technology, Inc. REIT | 4,846 | ||||||
239 | Easterly Government Properties, Inc. REIT | 4,809 | ||||||
64 | EastGroup Properties, Inc. REIT | 5,008 | ||||||
116 | Education Realty Trust, Inc. REIT | 4,497 | ||||||
426 | Farmland Partners, Inc. REIT | 4,643 | ||||||
624 | FelCor Lodging Trust, Inc. REIT | 4,836 | ||||||
176 | First Industrial Realty Trust, Inc. REIT | 4,953 | ||||||
464 | First Potomac Realty Trust REIT | 5,104 | ||||||
358 | Forestar Group, Inc.(b) | 5,066 | ||||||
211 | Four Corners Property Trust, Inc. REIT | 4,923 | ||||||
391 | Franklin Street Properties Corp. REIT | 4,743 | ||||||
117 | FRP Holdings, Inc.(b) | 4,996 | ||||||
151 | Geo Group, Inc. (The) REIT | 5,031 | ||||||
186 | Getty Realty Corp. REIT | 4,762 | ||||||
235 | Gladstone Commercial Corp. REIT | 5,240 | ||||||
556 | Global Medical REIT, Inc. REIT | 5,154 | ||||||
197 | Global NET Lease, Inc. REIT | 4,655 | ||||||
227 | Government Properties Income Trust REIT | 4,840 | ||||||
180 | Gramercy Property Trust REIT | 5,002 | ||||||
148 | Healthcare Realty Trust, Inc. REIT | 4,854 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Real Estate (continued) | ||||||||
250 | Hersha Hospitality Trust REIT | $ | 4,610 | |||||
160 | HFF, Inc., Class A | 5,024 | ||||||
134 | Hudson Pacific Properties, Inc. REIT | 4,604 | ||||||
505 | Independence Realty Trust, Inc. REIT | 4,646 | ||||||
268 | InfraREIT, Inc. REIT | 5,119 | ||||||
811 | Investors Real Estate Trust REIT | 4,793 | ||||||
403 | iStar, Inc. REIT(b) | 4,929 | ||||||
221 | Kennedy-Wilson Holdings, Inc. | 4,508 | ||||||
221 | Kite Realty Group Trust REIT | 4,500 | ||||||
164 | LaSalle Hotel Properties REIT | 4,684 | ||||||
455 | Lexington Realty Trust REIT | 4,627 | ||||||
100 | LTC Properties, Inc. REIT | 4,784 | ||||||
172 | Mack-Cali Realty Corp. REIT | 4,653 | ||||||
191 | Marcus & Millichap, Inc.(b) | 4,928 | ||||||
427 | Medequities Realty Trust, Inc. REIT | 5,047 | ||||||
366 | Medical Properties Trust, Inc. REIT | 4,784 | ||||||
330 | Monmouth Real Estate Investment Corp. REIT | 4,950 | ||||||
467 | Monogram Residential Trust, Inc. REIT | 4,754 | ||||||
65 | National Health Investors, Inc. REIT | 4,756 | ||||||
196 | National Storage Affiliates Trust REIT | 4,802 | ||||||
478 | New Senior Investment Group, Inc. REIT | 4,981 | ||||||
197 | NexPoint Residential Trust, Inc. REIT | 4,730 | ||||||
400 | NorthStar Realty Europe Corp. REIT | 4,652 | ||||||
207 | One Liberty Properties, Inc. REIT | 5,026 | ||||||
246 | Parkway, Inc. REIT | 4,957 | ||||||
167 | Pebblebrook Hotel Trust REIT | 4,970 | ||||||
326 | Pennsylvania Real Estate Investment Trust REIT | 4,515 | ||||||
241 | Physicians Realty Trust REIT | 4,733 | ||||||
104 | Potlatch Corp. REIT | 4,685 | ||||||
347 | Preferred Apartment Communities, Inc., Class A REIT | 4,910 | ||||||
41 | PS Business Parks, Inc. REIT | 4,983 | ||||||
96 | QTS Realty Trust, Inc., Class A REIT | 5,130 | ||||||
1,595 | RAIT Financial Trust REIT | 4,897 | ||||||
338 | Ramco-Gershenson Properties Trust REIT | 4,506 | ||||||
81 | RE/MAX Holdings, Inc., Class A | 4,791 | ||||||
221 | Retail Opportunity Investments Corp. REIT | 4,553 | ||||||
210 | Rexford Industrial Realty, Inc. REIT | 5,237 | ||||||
209 | RLJ Lodging Trust REIT | 4,491 | ||||||
93 | RMR Group, Inc. (The), Class A | 4,906 | ||||||
75 | Ryman Hospitality Properties, Inc. REIT | 4,783 | ||||||
169 | Sabra Health Care REIT, Inc. REIT | 4,595 | ||||||
76 | Saul Centers, Inc. REIT | 4,564 | ||||||
183 | Select Income REIT | 4,586 | ||||||
110 | Seritage Growth Properties, Class A REIT | 4,565 | ||||||
216 | Silver Bay Realty Trust Corp. REIT | 4,629 | ||||||
274 | St. Joe Co. (The)(b) | 4,795 | ||||||
186 | STAG Industrial, Inc., Class A REIT | 4,903 | ||||||
177 | Stratus Properties, Inc. | 5,283 | ||||||
302 | Summit Hotel Properties, Inc. REIT | 4,992 | ||||||
317 | Sunstone Hotel Investors, Inc. REIT | 4,720 | ||||||
215 | Tejon Ranch Co.(b) | 4,923 | ||||||
168 | Terreno Realty Corp. REIT | 5,188 | ||||||
271 | Tier REIT, Inc. REIT | 4,691 | ||||||
635 | Trinity Place Holdings, Inc.(b) | 4,528 | ||||||
312 | UMH Properties, Inc. REIT | 4,998 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Real Estate (continued) | ||||||||
77 | Universal Health Realty Income Trust REIT | $ | 5,371 | |||||
178 | Urban Edge Properties REIT | 4,539 | ||||||
228 | Urstadt Biddle Properties, Inc., Class A REIT | 4,482 | ||||||
149 | Washington REIT | 4,719 | ||||||
579 | Washington Prime Group, Inc. REIT | 5,095 | ||||||
346 | Whitestone REIT | 4,339 | ||||||
281 | Xenia Hotels & Resorts, Inc. REIT | 4,906 | ||||||
|
| |||||||
518,634 | ||||||||
|
| |||||||
Telecommunication Services—4.4% | ||||||||
618 | ATN International, Inc. | 42,759 | ||||||
3,371 | Boingo Wireless, Inc.(b) | 48,172 | ||||||
2,387 | Cincinnati Bell, Inc.(b) | 44,995 | ||||||
1,060 | Cogent Communications Holdings, Inc. | 47,700 | ||||||
1,912 | Consolidated Communications Holdings, Inc. | 45,257 | ||||||
2,695 | FairPoint Communications, Inc.(b) | 45,950 | ||||||
2,036 | General Communication, Inc., Class A(b) | 76,228 | ||||||
27,256 | Globalstar, Inc.(b)(c) | 52,059 | ||||||
3,564 | IDT Corp., Class B(b) | 54,137 | ||||||
4,960 | Iridium Communications, Inc.(b) | 52,576 | ||||||
2,510 | Lumos Networks Corp.(b) | 44,954 | ||||||
4,815 | ORBCOMM, Inc.(b) | 46,417 | ||||||
473 | pdvWireless, Inc.(b) | 12,132 | ||||||
1,550 | Shenandoah Telecommunications Co. | 49,600 | ||||||
2,444 | Spok Holdings, Inc. | 43,870 | ||||||
1,306 | Straight Path Communications, Inc., Class B(b) | 168,291 | ||||||
7,053 | Vonage Holdings Corp.(b) | 47,326 | ||||||
7,914 | Windstream Holdings, Inc. | 43,685 | ||||||
|
| |||||||
966,108 | ||||||||
|
| |||||||
Utilities—7.2% | ||||||||
656 | ALLETE, Inc. | 45,861 | �� | |||||
1,018 | American States Water Co. | 45,321 | ||||||
1,344 | Artesian Resources Corp., Class A | 51,623 | ||||||
17,102 | Atlantic Power Corp.(b) | 42,755 | ||||||
2,094 | Atlantica Yield PLC (Spain) | 43,639 | ||||||
1,123 | Avista Corp. | 45,302 | ||||||
669 | Black Hills Corp. | 45,505 | ||||||
1,271 | California Water Service Group | 45,375 | ||||||
645 | Chesapeake Utilities Corp. | 47,278 | ||||||
838 | Connecticut Water Service, Inc. | 44,975 | ||||||
1,461 | Delta Natural Gas Co., Inc. | 44,268 | ||||||
6,315 | Dynegy, Inc.(b) | 40,542 | ||||||
901 | El Paso Electric Co. | 46,492 | ||||||
536 | IDACORP, Inc. | 45,303 | ||||||
704 | MGE Energy, Inc. | 45,267 | ||||||
1,220 | Middlesex Water Co. | 46,506 | ||||||
1,133 | New Jersey Resources Corp. | 45,717 | ||||||
748 | Northwest Natural Gas Co. | 44,581 | ||||||
758 | NorthWestern Corp. | 45,313 | ||||||
2,634 | NRG Yield, Inc., Class C | 46,622 | ||||||
654 | ONE Gas, Inc. | 45,015 | ||||||
791 | Ormat Technologies, Inc. | 46,716 | ||||||
1,217 | Otter Tail Corp. | 48,072 | ||||||
2,188 | Pattern Energy Group, Inc. | 48,180 | ||||||
1,190 | PNM Resources, Inc. | 44,328 | ||||||
992 | Portland General Electric Co. | 44,977 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Utilities (continued) | ||||||||
935 | SJW Corp. | $ | 45,665 | |||||
1,266 | South Jersey Industries, Inc. | 47,500 | ||||||
533 | Southwest Gas Holdings, Inc. | 44,644 | ||||||
659 | Spire, Inc. | 45,174 | ||||||
6,310 | TerraForm Global, Inc., Class A | 29,973 | ||||||
2,528 | TerraForm Power, Inc., Class A(b) | 31,828 | ||||||
993 | Unitil Corp. | 48,091 | ||||||
536 | WGL Holdings, Inc. | 44,199 | ||||||
1,295 | York Water Co. (The) | 48,563 | ||||||
|
| |||||||
1,571,170 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $19,792,325) | 21,854,275 | |||||||
|
| |||||||
Money Market Fund—0.3% | ||||||||
59,289 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(e) (Cost $59,289) | 59,289 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $19,851,614)—100.2% | 21,913,564 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—1.9% | ||||||||
426,605 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(e)(f) (Cost $426,605) | 426,605 | ||||||
|
| |||||||
Total Investments (Cost $20,278,219)—102.1% | 22,340,169 | |||||||
Other assets less liabilities—(2.1)% | (462,740 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 21,877,429 | ||||||
|
|
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, 2017. |
(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, 2017. |
(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 2I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 56 |
|
Schedule of Investments(a)
PowerShares Russell 2000 Pure Growth Portfolio (PXSG)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Consumer Discretionary—16.4% | ||||||||
10,385 | American Outdoor Brands Corp.(b)(c) | $ | 230,028 | |||||
2,438 | Asbury Automotive Group, Inc.(c) | 149,206 | ||||||
3,001 | BJ’s Restaurants, Inc.(c) | 135,345 | ||||||
1,605 | Buffalo Wild Wings, Inc.(c) | 252,868 | ||||||
421 | Cavco Industries, Inc.(c) | 49,994 | ||||||
957 | Cheesecake Factory, Inc. (The) | 61,401 | ||||||
925 | Churchill Downs, Inc. | 154,290 | ||||||
3,518 | Core-Mark Holding Co., Inc. | 123,200 | ||||||
3,736 | Dave & Buster’s Entertainment, Inc.(c) | 239,141 | ||||||
811 | Dorman Products, Inc.(c) | 67,435 | ||||||
2,808 | Duluth Holdings, Inc., Class B(b)(c) | 62,197 | ||||||
682 | Etsy, Inc.(c) | 7,338 | ||||||
4,802 | Fox Factory Holding Corp.(c) | 144,300 | ||||||
6,700 | Francesca’s Holdings Corp.(c) | 105,726 | ||||||
545 | Gentherm, Inc.(c) | 20,247 | ||||||
2,916 | Grand Canyon Education, Inc.(c) | 219,167 | ||||||
8,928 | Habit Restaurants, Inc. (The), Class A(c) | 168,739 | ||||||
2,460 | IMAX Corp.(c) | 75,030 | ||||||
3,893 | Installed Building Products, Inc.(c) | 207,692 | ||||||
2,953 | LCI Industries | 298,696 | ||||||
1,570 | Lindblad Expeditions Holdings, Inc.(c) | 14,915 | ||||||
7,439 | MCBC Holdings, Inc. | 124,603 | ||||||
331 | Monro Muffler Brake, Inc. | 17,162 | ||||||
5,617 | Nautilus, Inc.(c) | 102,229 | ||||||
5,077 | Nexstar Media Group, Inc., Class A | 350,313 | ||||||
2,902 | Ollie’s Bargain Outlet Holdings, Inc.(c) | 111,147 | ||||||
857 | Oxford Industries, Inc. | 49,689 | ||||||
767 | Papa John’s International, Inc. | 60,639 | ||||||
6,286 | Potbelly Corp.(c) | 87,690 | ||||||
9,625 | Select Comfort Corp.(c) | 297,413 | ||||||
3,526 | Shake Shack, Inc., Class A(b)(c) | 119,672 | ||||||
726 | Shutterfly, Inc.(c) | 37,679 | ||||||
7,125 | Sinclair Broadcast Group, Inc., Class A | 281,081 | ||||||
2,183 | Sturm Ruger & Co., Inc.(b) | 131,962 | ||||||
4,979 | Taylor Morrison Home Corp., Class A(c) | 115,015 | ||||||
41 | Tenneco, Inc. | 2,584 | ||||||
4,649 | Texas Roadhouse, Inc. | 217,945 | ||||||
14,837 | Tile Shop Holdings, Inc. | 316,770 | ||||||
1,587 | Universal Electronics, Inc.(c) | 109,979 | ||||||
6,972 | World Wrestling Entertainment, Inc., Class A | 149,410 | ||||||
7,356 | Zoe’s Kitchen, Inc.(b)(c) | 132,776 | ||||||
|
| |||||||
5,602,713 | ||||||||
|
| |||||||
Consumer Staples—3.1% | ||||||||
9,860 | Amplify Snack Brands, Inc.(b)(c) | 88,740 | ||||||
4,539 | B&G Foods, Inc. | 190,638 | ||||||
2,180 | Calavo Growers, Inc. | 143,008 | ||||||
181 | Coca-Cola Bottling Co. Consolidated | 38,347 | ||||||
405 | Farmer Brothers Co.(c) | 14,378 | ||||||
8,826 | HRG Group, Inc.(c) | 176,608 | ||||||
12,163 | Lifevantage Corp.(b)(c) | 60,328 | ||||||
603 | MGP Ingredients, Inc. | 31,573 | ||||||
3,431 | Natural Health Trends Corp. | 98,401 | ||||||
907 | PriceSmart, Inc. | 78,864 | ||||||
2,591 | USANA Health Sciences, Inc.(c) | 147,298 | ||||||
|
| |||||||
1,068,183 | ||||||||
|
|
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials—1.6% | ||||||||
3,549 | Cohen & Steers, Inc. | $ | 141,605 | |||||
309 | Diamond Hill Investment Group, Inc. | 62,464 | ||||||
1,065 | Financial Engines, Inc. | 45,263 | ||||||
418 | Firstcash, Inc. | 21,715 | ||||||
2,153 | Moelis & Co., Class A | 79,015 | ||||||
1,928 | ServisFirst Bancshares, Inc. | 72,878 | ||||||
5,095 | Trupanion, Inc.(b)(c) | 80,960 | ||||||
689 | Westwood Holdings Group, Inc. | 38,446 | ||||||
4,282 | WMIH Corp.(c) | 6,423 | ||||||
|
| |||||||
548,769 | ||||||||
|
| |||||||
Health Care—24.5% | ||||||||
910 | Abaxis, Inc. | 40,977 | ||||||
36,423 | AcelRx Pharmaceuticals, Inc.(b)(c) | 94,700 | ||||||
2,971 | Achillion Pharmaceuticals, Inc.(c) | 10,131 | ||||||
3,736 | AMN Healthcare Services, Inc.(c) | 152,616 | ||||||
3,571 | Amphastar Pharmaceuticals, Inc.(c) | 53,922 | ||||||
1,018 | Ampio Pharmaceuticals, Inc.(c) | 569 | ||||||
3,830 | ANI Pharmaceuticals, Inc.(c) | 207,280 | ||||||
440 | Aptevo Therapeutics, Inc.(c) | 880 | ||||||
65,270 | Arena Pharmaceuticals, Inc.(c) | 87,462 | ||||||
3,394 | Avinger, Inc.(c) | 1,910 | ||||||
3,318 | BioSpecifics Technologies Corp.(c) | 188,230 | ||||||
7,921 | BioTelemetry, Inc.(c) | 260,601 | ||||||
2,404 | Cambrex Corp.(c) | 142,677 | ||||||
2,128 | Cantel Medical Corp. | 158,344 | ||||||
5,950 | Castlight Health, Inc., Class B(c) | 22,908 | ||||||
1,128 | Cempra, Inc.(c) | 4,850 | ||||||
22,638 | Chromadex Corp.(b)(c) | 70,404 | ||||||
768 | Computer Programs & Systems, Inc. | 21,082 | ||||||
2,381 | CorVel Corp.(c) | 105,955 | ||||||
6,492 | Cross Country Healthcare, Inc.(c) | 90,693 | ||||||
16,048 | Cytokinetics, Inc.(c) | 263,187 | ||||||
9,490 | Depomed, Inc.(c) | 113,785 | ||||||
7,282 | Diplomat Pharmacy, Inc.(c) | 113,599 | ||||||
2,464 | Eagle Pharmaceuticals, Inc.(b)(c) | 223,214 | ||||||
939 | Emergent Biosolutions, Inc.(c) | 28,085 | ||||||
5,811 | Endologix, Inc.(b)(c) | 43,524 | ||||||
3,633 | Fluidigm Corp.(c) | 17,947 | ||||||
6,356 | GenMark Diagnostics, Inc.(c) | 81,484 | ||||||
4,081 | Genomic Health, Inc.(c) | 134,102 | ||||||
30,855 | Geron Corp.(b)(c) | 78,989 | ||||||
1,585 | Glaukos Corp.(c) | 75,335 | ||||||
12,333 | Halozyme Therapeutics, Inc.(c) | 171,922 | ||||||
4,405 | HealthEquity, Inc.(c) | 200,516 | ||||||
597 | HealthStream, Inc.(c) | 16,591 | ||||||
9,102 | ImmunoGen, Inc.(b)(c) | 39,503 | ||||||
1,779 | INC Research Holdings, Inc., Class A(c) | 80,055 | ||||||
2,640 | Inogen, Inc.(c) | 218,830 | ||||||
7,800 | Inovio Pharmaceuticals, Inc.(b)(c) | 49,062 | ||||||
10 | Insulet Corp.(c) | 434 | ||||||
1,325 | Intra-Cellular Therapies, Inc.(c) | 18,312 | ||||||
2,450 | iRadimed Corp.(b)(c) | 21,070 | ||||||
4,529 | Ironwood Pharmaceuticals, Inc., Class A(c) | 73,913 | ||||||
22,596 | Keryx Biopharmaceuticals, Inc.(b)(c) | 133,768 | ||||||
9,259 | Lexicon Pharmaceuticals, Inc.(b)(c) | 144,533 | ||||||
1,592 | Ligand Pharmaceuticals, Inc.(b)(c) | 176,983 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 57 |
|
PowerShares Russell 2000 Pure Growth Portfolio (PXSG) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
1,269 | Masimo Corp.(c) | $ | 130,377 | |||||
13,765 | MediciNova, Inc.(c) | 79,149 | ||||||
4,449 | Medidata Solutions, Inc.(c) | 291,098 | ||||||
34,276 | MiMedx Group, Inc.(b)(c) | 434,962 | ||||||
2,422 | Myriad Genetics, Inc.(b)(c) | 44,541 | ||||||
2,976 | Neogen Corp.(c) | 185,494 | ||||||
9,236 | NeoGenomics, Inc.(c) | 69,732 | ||||||
621 | Nevro Corp.(c) | 58,511 | ||||||
15,056 | Novavax, Inc.(b)(c) | 12,287 | ||||||
2,373 | Novocure Ltd.(b)(c) | 26,815 | ||||||
2,098 | NuVasive, Inc.(c) | 152,126 | ||||||
4,597 | Ocular Therapeutix, Inc.(b)(c) | 45,786 | ||||||
3,851 | Omnicell, Inc.(c) | 159,431 | ||||||
14,014 | Pacific Biosciences of California, Inc.(c) | 55,215 | ||||||
1,943 | Paratek Pharmaceuticals, Inc.(c) | 41,677 | ||||||
3,279 | PAREXEL International Corp.(c) | 209,299 | ||||||
4,482 | PRA Health Sciences, Inc.(c) | 286,669 | ||||||
2,191 | Prothena Corp. PLC (Ireland)(b)(c) | 118,599 | ||||||
812 | Providence Service Corp. (The)(c) | 35,728 | ||||||
1,527 | Radius Health, Inc.(b)(c) | 59,660 | ||||||
7,224 | RadNet, Inc.(c) | 43,705 | ||||||
11,032 | Repligen Corp.(c) | 405,867 | ||||||
4,119 | Spectranetics Corp. (The)(c) | 117,803 | ||||||
1,602 | STAAR Surgical Co.(b)(c) | 16,661 | ||||||
20,834 | Sucampo Pharmaceuticals, Inc., Class A(b)(c) | 211,465 | ||||||
14,070 | Supernus Pharmaceuticals, Inc.(c) | 458,682 | ||||||
4,573 | T2 Biosystems, Inc.(b)(c) | 21,996 | ||||||
5,867 | Tandem Diabetes Care, Inc.(c) | 5,589 | ||||||
7,932 | Teligent, Inc.(c) | 62,583 | ||||||
519 | U.S. Physical Therapy, Inc. | 34,046 | ||||||
9,991 | Vanda Pharmaceuticals, Inc.(c) | 152,363 | ||||||
17,438 | ZIOPHARM Oncology, Inc.(b)(c) | 122,764 | ||||||
|
| |||||||
8,385,614 | ||||||||
|
| |||||||
Industrials—13.9% | ||||||||
4,161 | AAON, Inc. | 152,501 | ||||||
5,185 | Advanced Drainage Systems, Inc. | 119,514 | ||||||
2,571 | Advisory Board Co. (The)(c) | 131,378 | ||||||
2 | Allegiant Travel Co. | 291 | ||||||
5,198 | Allied Motion Technologies, Inc. | 117,683 | ||||||
1,977 | American Woodmark Corp.(c) | 181,686 | ||||||
525 | Apogee Enterprises, Inc. | 28,612 | ||||||
321 | Argan, Inc. | 21,459 | ||||||
461 | Astronics Corp.(c) | 14,987 | ||||||
5,594 | Axon Enterprise, Inc.(b)(c) | 137,501 | ||||||
240 | AZZ, Inc. | 14,172 | ||||||
1,972 | Barrett Business Services, Inc. | 113,706 | ||||||
23,208 | Builders FirstSource, Inc.(c) | 371,560 | ||||||
1,674 | Comfort Systems USA, Inc. | 61,436 | ||||||
3,633 | Continental Building Products, Inc.(c) | 88,464 | ||||||
2,603 | Dycom Industries, Inc.(c) | 275,033 | ||||||
1,003 | Forward Air Corp. | 53,330 | ||||||
197 | GP Strategies Corp.(c) | 5,339 | ||||||
5,336 | Hawaiian Holdings, Inc.(c) | 289,745 | ||||||
5,818 | Healthcare Services Group, Inc. | 267,104 | ||||||
19 | Heartland Express, Inc. | 382 | ||||||
2,190 | Insperity, Inc. | 200,056 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
352 | John Bean Technologies Corp. | $ | 31,205 | |||||
9,566 | Kforce, Inc. | 217,148 | ||||||
2,311 | Masonite International Corp.(c) | 192,275 | ||||||
5,903 | Mistras Group, Inc.(c) | 132,817 | ||||||
1,602 | On Assignment, Inc.(c) | 82,936 | ||||||
3,010 | Patrick Industries, Inc.(c) | 213,860 | ||||||
22,007 | PGT Innovations, Inc.(c) | 239,876 | ||||||
2,191 | Proto Labs, Inc.(c) | 127,078 | ||||||
675 | RBC Bearings, Inc.(c) | 67,702 | ||||||
1,275 | Trex Co., Inc.(c) | 93,317 | ||||||
11,197 | TriNet Group, Inc.(c) | 329,192 | ||||||
6,759 | Univar, Inc.(c) | 201,756 | ||||||
3,859 | US Ecology, Inc. | 181,952 | ||||||
|
| |||||||
4,757,053 | ||||||||
|
| |||||||
Information Technology—34.9% | ||||||||
1,502 | 3D Systems Corp.(b)(c) | 23,777 | ||||||
19,339 | 8x8, Inc.(c) | 281,382 | ||||||
22,105 | A10 Networks, Inc.(c) | 179,050 | ||||||
850 | Acacia Communications, Inc.(b)(c) | 38,964 | ||||||
16,680 | Aerohive Networks, Inc.(c) | 64,552 | ||||||
6,885 | Alarm.com Holdings, Inc.(c) | 224,520 | ||||||
20,709 | Amber Road, Inc.(c) | 169,607 | ||||||
6,416 | Angie’s List, Inc.(c) | 37,726 | ||||||
1,518 | AppFolio, Inc., Class A(c) | 40,303 | ||||||
3,405 | Aspen Technology, Inc.(c) | 209,373 | ||||||
4,287 | Badger Meter, Inc. | 170,408 | ||||||
42 | Benefitfocus, Inc.(c) | 1,323 | ||||||
2,256 | Blackbaud, Inc. | 181,405 | ||||||
1,616 | Box, Inc., Class A(c) | 27,860 | ||||||
27,393 | Brightcove, Inc.(c) | 238,319 | ||||||
3,888 | BroadSoft, Inc.(c) | 149,299 | ||||||
5,508 | CalAmp Corp.(c) | 98,814 | ||||||
2,440 | Callidus Software, Inc.(c) | 51,362 | ||||||
1,479 | Carbonite, Inc.(c) | 31,946 | ||||||
920 | Cardtronics PLC, Class A(c) | 38,254 | ||||||
12,560 | Care.com, Inc.(c) | 148,836 | ||||||
5,461 | Cavium, Inc.(c) | 375,990 | ||||||
883 | CEVA, Inc.(c) | 31,788 | ||||||
1,148 | Cimpress NV (Netherlands)(c) | 94,228 | ||||||
2,491 | Cirrus Logic, Inc.(c) | 160,296 | ||||||
12,916 | Clearfield, Inc.(b)(c) | 182,761 | ||||||
1,948 | CommVault Systems, Inc.(c) | 98,277 | ||||||
1,009 | Cornerstone OnDemand, Inc.(c) | 39,634 | ||||||
2,074 | Ebix, Inc.(b) | 127,966 | ||||||
26 | Electronics for Imaging, Inc.(c) | 1,190 | ||||||
3,003 | Ellie Mae, Inc.(c) | 305,585 | ||||||
11,402 | Endurance International Group Holdings, Inc.(c) | 86,655 | ||||||
5,219 | Envestnet, Inc.(c) | 181,621 | ||||||
2,486 | EPAM Systems, Inc.(c) | 191,422 | ||||||
2,596 | ExlService Holdings, Inc.(c) | 123,855 | ||||||
58,444 | Extreme Networks, Inc.(c) | 456,740 | ||||||
1,511 | Fair Isaac Corp. | 204,710 | ||||||
14,671 | Five9, Inc.(c) | 267,672 | ||||||
2,319 | Forrester Research, Inc. | 94,035 | ||||||
8,075 | Gigamon, Inc.(c) | 255,977 | ||||||
5,938 | Globant SA(b)(c) | 224,991 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 58 |
|
PowerShares Russell 2000 Pure Growth Portfolio (PXSG) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
7,362 | Gogo, Inc.(b)(c) | $ | 92,835 | |||||
4,981 | Hackett Group, Inc. (The) | 98,773 | ||||||
1,450 | Hortonworks, Inc.(c) | 15,094 | ||||||
3,123 | HubSpot, Inc.(c) | 209,397 | ||||||
6,459 | Imperva, Inc.(c) | 287,103 | ||||||
494 | j2 Global, Inc. | 44,579 | ||||||
3,230 | Jive Software, Inc.(c) | 16,311 | ||||||
83 | Littelfuse, Inc. | 12,794 | ||||||
4,370 | LogMeIn, Inc. | 493,810 | ||||||
1,914 | MACOM Technology Solutions Holdings, Inc.(c) | 93,556 | ||||||
2,218 | MAXIMUS, Inc. | 135,276 | ||||||
11,274 | MaxLinear, Inc., Class A(c) | 313,755 | ||||||
1,406 | Mesa Laboratories, Inc. | 196,587 | ||||||
914 | Microsemi Corp.(c) | 42,903 | ||||||
1,317 | MINDBODY, Inc., Class A(c) | 37,337 | ||||||
10,866 | Mitek Systems, Inc.(c) | 95,078 | ||||||
1,894 | Monolithic Power Systems, Inc. | 173,301 | ||||||
612 | New Relic, Inc.(c) | 24,468 | ||||||
766 | NIC, Inc. | 16,354 | ||||||
4,050 | Paycom Software, Inc.(c) | 244,013 | ||||||
906 | Paylocity Holding Corp.(c) | 35,733 | ||||||
7,573 | Pegasystems, Inc. | 344,950 | ||||||
2,628 | Plantronics, Inc. | 143,489 | ||||||
5,809 | PROS Holdings, Inc.(c) | 143,192 | ||||||
838 | Q2 Holdings, Inc.(c) | 31,970 | ||||||
22,069 | Quotient Technology, Inc.(c) | 240,552 | ||||||
1,801 | Rapid7, Inc.(c) | 30,527 | ||||||
8,434 | RealPage, Inc.(c) | 312,480 | ||||||
1,121 | RingCentral, Inc., Class A(c) | 35,816 | ||||||
9,179 | Sapiens International Corp. NV (Israel) | 108,863 | ||||||
2,875 | SPS Commerce, Inc.(c) | 158,873 | ||||||
976 | Stamps.com, Inc.(c) | 103,602 | ||||||
3,790 | Synchronoss Technologies, Inc.(c) | 60,640 | ||||||
3,766 | Ubiquiti Networks, Inc.(b)(c) | 194,024 | ||||||
4,048 | Universal Display Corp. | 361,689 | ||||||
6,077 | Varonis Systems, Inc.(c) | 190,818 | ||||||
30,764 | VirnetX Holding Corp.(b)(c) | 101,521 | ||||||
7,394 | Web.com Group, Inc.(c) | 142,704 | ||||||
3,157 | WebMD Health Corp.(c) | 171,204 | ||||||
1,659 | Workiva, Inc., Class A(c) | 27,871 | ||||||
2,521 | Xactly Corp.(c) | 29,244 | ||||||
6,032 | XO Group, Inc.(c) | 105,862 | ||||||
729 | Zendesk, Inc.(c) | 20,959 | ||||||
51,628 | Zix Corp.(c) | 280,340 | ||||||
|
| |||||||
11,932,720 | ||||||||
|
| |||||||
Materials—2.5% | ||||||||
1,939 | Balchem Corp. | 157,369 | ||||||
1,642 | Chase Corp. | 168,305 | ||||||
87 | Deltic Timber Corp. | 6,731 | ||||||
1,112 | Multi Packaging Solutions International Ltd.(c) | 19,960 | ||||||
632 | PolyOne Corp. | 24,781 | ||||||
13,169 | Real Industry, Inc.(c) | 34,240 | ||||||
12,156 | Summit Materials, Inc., Class A(c) | 311,923 | ||||||
1,184 | US Concrete, Inc.(c) | 73,408 | ||||||
926 | Worthington Industries, Inc. | 40,281 | ||||||
|
| |||||||
836,998 | ||||||||
|
|
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Real Estate—2.4% | ||||||||
868 | Altisource Portfolio Solutions SA(b)(c) | $ | 19,174 | |||||
2,498 | CoreSite Realty Corp. REIT | 244,429 | ||||||
4,557 | DuPont Fabros Technology, Inc. REIT | 234,913 | ||||||
3,059 | HFF, Inc., Class A | 96,053 | ||||||
3,564 | Marcus & Millichap, Inc.(c) | 91,951 | ||||||
530 | Potlatch Corp. REIT | 23,877 | ||||||
502 | PS Business Parks, Inc. REIT | 61,013 | ||||||
180 | Ryman Hospitality Properties, Inc. REIT | 11,480 | ||||||
514 | Universal Health Realty Income Trust REIT | 35,852 | ||||||
|
| |||||||
818,742 | ||||||||
|
| |||||||
Telecommunication Services—0.7% | ||||||||
6,511 | General Communication, Inc., Class A(c) | 243,772 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $30,366,424)—100.0% | 34,194,564 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—9.3% | ||||||||
3,170,573 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $3,170,573) | 3,170,573 | ||||||
|
| |||||||
Total Investments (Cost $33,536,997)—109.3% | 37,365,137 | |||||||
Other assets less liabilities—(9.3)% | (3,169,846 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 34,195,291 | ||||||
|
|
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, 2017. |
(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, 2017. |
(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 2I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 59 |
|
Schedule of Investments(a)
PowerShares Russell 2000 Pure Value Portfolio (PXSV)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.1% | ||||||||
Consumer Discretionary—7.7% | ||||||||
1,134 | Abercrombie & Fitch Co., Class A | $ | 13,597 | |||||
13,070 | Barnes & Noble, Inc. | 111,748 | ||||||
59,188 | Beazer Homes USA, Inc.(b) | 734,523 | ||||||
41,115 | Big 5 Sporting Goods Corp. | 633,171 | ||||||
56,667 | Bridgepoint Education, Inc.(b) | 691,337 | ||||||
52,597 | Career Education Corp.(b) | 533,860 | ||||||
3,660 | Cooper Tire & Rubber Co. | 140,178 | ||||||
17,067 | Del Taco Restaurants, Inc.(b) | 224,431 | ||||||
1,314 | Delta Apparel, Inc.(b) | 23,034 | ||||||
20,502 | DeVry Education Group, Inc. | 776,001 | ||||||
10,135 | Entercom Communications Corp., Class A | 128,208 | ||||||
1,763 | FTD Cos., Inc.(b) | 35,260 | ||||||
32,364 | Green Brick Partners, Inc.(b) | 333,349 | ||||||
18,491 | Guess?, Inc. | 206,360 | ||||||
1,212 | Haverty Furniture Cos., Inc. | 29,876 | ||||||
8,298 | International Speedway Corp., Class A | 307,856 | ||||||
3,696 | Monarch Casino & Resort, Inc.(b) | 108,921 | ||||||
2,654 | National CineMedia, Inc. | 31,503 | ||||||
91,721 | Office Depot, Inc. | 455,853 | ||||||
6,797 | Perry Ellis International, Inc.(b) | 139,474 | ||||||
22,558 | Regis Corp.(b) | 246,108 | ||||||
2,151 | Scholastic Corp. | 92,988 | ||||||
22,126 | Speedway Motorsports, Inc. | 399,374 | ||||||
11,008 | Stage Stores, Inc.(c) | 31,703 | ||||||
3,066 | Tuesday Morning Corp.(b) | 9,965 | ||||||
|
| |||||||
6,438,678 | ||||||||
|
| |||||||
Consumer Staples—0.3% | ||||||||
2,437 | Universal Corp. | 178,998 | ||||||
525 | Weis Markets, Inc. | 30,350 | ||||||
|
| |||||||
209,348 | ||||||||
|
| |||||||
Energy—13.9% | ||||||||
55,824 | Alon USA Energy, Inc. | 674,912 | ||||||
44,538 | Archrock, Inc. | 525,548 | ||||||
5,627 | Ardmore Shipping Corp. (Ireland) | 43,609 | ||||||
56,874 | Bill Barrett Corp.(b) | 218,396 | ||||||
7,152 | Bristow Group, Inc. | 95,622 | ||||||
27,810 | CARBO Ceramics, Inc.(b)(c) | 191,055 | ||||||
62,113 | Clean Energy Fuels Corp.(b) | 151,556 | ||||||
47,835 | Cobalt International Energy, Inc.(b) | 18,708 | ||||||
33,498 | Contango Oil & Gas Co.(b) | 239,846 | ||||||
48,153 | Dawson Geophysical Co.(b) | 242,210 | ||||||
22,622 | Delek US Holdings, Inc. | 544,512 | ||||||
94,698 | Denbury Resources, Inc.(b) | 210,230 | ||||||
88,322 | DHT Holdings, Inc. | 423,062 | ||||||
24,591 | Eclipse Resources Corp.(b) | 49,428 | ||||||
11,481 | Era Group, Inc.(b) | 145,924 | ||||||
74,913 | EXCO Resources, Inc.(b) | 36,707 | ||||||
14,456 | Exterran Corp.(b) | 395,661 | ||||||
8,251 | Fairmount Santrol Holdings, Inc.(b)(c) | 42,575 | ||||||
9,146 | Forum Energy Technologies, Inc.(b) | 154,567 | ||||||
42,096 | Frontline Ltd. (Norway) | 279,938 | ||||||
13,156 | Gener8 Maritime, Inc.(b) | 70,648 | ||||||
8,948 | Geospace Technologies Corp.(b) | 148,000 | ||||||
19,865 | Golar LNG Ltd. (Bermuda)(c) | 506,756 | ||||||
622 | Green Plains, Inc. | 14,306 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Energy (continued) | ||||||||
52,423 | Helix Energy Solutions Group, Inc.(b) | $ | 320,829 | |||||
36,255 | Hornbeck Offshore Services, Inc.(b)(c) | 123,630 | ||||||
44,099 | Independence Contract Drilling, Inc.(b) | 203,296 | ||||||
2,710 | International Seaways Inc.(b) | 52,384 | ||||||
23,908 | Jones Energy, Inc., Class A(b)(c) | 47,816 | ||||||
78,181 | McDermott International, Inc.(b) | 511,304 | ||||||
2,792 | Natural Gas Services Group, Inc.(b) | 76,501 | ||||||
200,614 | Navios Maritime Acquisition Corp. | 339,038 | ||||||
65,819 | Newpark Resources, Inc.(b) | 503,515 | ||||||
9,549 | Oil States International, Inc.(b) | 284,083 | ||||||
8,124 | Overseas Shipholding Group, Inc., Class A(b) | 29,571 | ||||||
61,085 | Pacific Ethanol, Inc.(b) | 415,378 | ||||||
116,933 | Parker Drilling Co.(b) | 192,939 | ||||||
365 | PDC Energy, Inc.(b) | 20,159 | ||||||
70,657 | Pioneer Energy Services Corp.(b) | 215,504 | ||||||
3,083 | Ring Energy, Inc.(b) | 36,996 | ||||||
69,148 | Scorpio Tankers, Inc. (Monaco) | 304,251 | ||||||
6,038 | SEACOR Holdings, Inc.(b) | 396,455 | ||||||
123,224 | Seadrill Ltd. (United Kingdom)(b) | 85,000 | ||||||
3,682 | SemGroup Corp., Class A | 122,611 | ||||||
11,458 | Ship Finance International Ltd. (Norway)(c) | 160,985 | ||||||
29,526 | Teekay Corp. (Bermuda)(c) | 256,286 | ||||||
53,546 | Teekay Tankers Ltd., Class A (Bermuda) | 109,769 | ||||||
46,968 | Tesco Corp.(b) | 307,640 | ||||||
39,968 | Tidewater, Inc.(b)(c) | 35,032 | ||||||
22,151 | Unit Corp.(b) | 476,025 | ||||||
77,687 | W&T Offshore, Inc.(b)(c) | 158,481 | ||||||
2,536 | Western Refining, Inc.(c) | 87,467 | ||||||
98,866 | Willbros Group, Inc.(b) | 271,881 | ||||||
|
| |||||||
11,568,602 | ||||||||
|
| |||||||
Financials—41.1% | ||||||||
8,327 | 1st Source Corp. | 402,277 | ||||||
27,197 | AG Mortgage Investment Trust, Inc. REIT | 515,383 | ||||||
8,649 | American Equity Investment Life Holding Co. | 205,154 | ||||||
24,076 | Apollo Commercial Real Estate Finance, Inc. REIT | 464,426 | ||||||
22,274 | Ares Commercial Real Estate Corp. REIT | 308,050 | ||||||
1,755 | Argo Group International Holdings Ltd. | 115,742 | ||||||
24,007 | Arlington Asset Investment Corp., Class A(c) | 349,542 | ||||||
14,114 | ARMOUR Residential REIT, Inc. REIT | 339,724 | ||||||
4,125 | Arrow Financial Corp. | 141,281 | ||||||
26,465 | Astoria Financial Corp. | 539,621 | ||||||
1,728 | Baldwin & Lyons, Inc., Class B | 42,336 | ||||||
2,378 | BancFirst Corp. | 228,407 | ||||||
29,988 | Bank Mutual Corp. | 275,890 | ||||||
6,300 | Bank of Marin Bancorp | 397,845 | ||||||
19,200 | BankFinancial Corp. | 283,776 | ||||||
6,028 | Banner Corp. | 332,746 | ||||||
9,134 | Berkshire Hills Bancorp, Inc. | 342,525 | ||||||
5,676 | Boston Private Financial Holdings, Inc. | 88,546 | ||||||
7,440 | Camden National Corp. | 318,060 | ||||||
27,410 | Capitol Federal Financial, Inc. | 401,008 | ||||||
48,611 | Capstead Mortgage Corp. REIT | 541,527 | ||||||
4,606 | Cathay General Bancorp | 175,258 | ||||||
5,117 | Central Pacific Financial Corp. | 160,060 | ||||||
5,062 | City Holding Co. | 359,858 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 60 |
|
PowerShares Russell 2000 Pure Value Portfolio (PXSV) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
12,190 | Clifton Bancorp, Inc. | $ | 203,573 | |||||
2,557 | Columbia Banking System, Inc. | 101,027 | ||||||
3,825 | Community Bank System, Inc. | 214,009 | ||||||
7,180 | Community Trust Bancorp, Inc. | 322,741 | ||||||
9,491 | CVB Financial Corp. | 204,436 | ||||||
58,165 | CYS Investments, Inc. REIT | 496,148 | ||||||
23,823 | Dime Community Bancshares, Inc. | 463,357 | ||||||
54,601 | Dynex Capital, Inc. REIT | 377,839 | ||||||
6,974 | EMC Insurance Group, Inc. | 200,014 | ||||||
3,037 | Enterprise Financial Services Corp. | 128,313 | ||||||
16 | Equity Bancshares, Inc., Class A(b) | 505 | ||||||
5,351 | EverBank Financial Corp. | 104,345 | ||||||
31,688 | EZCORP, Inc., Class A(b) | 286,776 | ||||||
26,030 | F.N.B. Corp. | 370,667 | ||||||
5,610 | FBL Financial Group, Inc., Class A | 373,065 | ||||||
8,728 | Federal Agricultural Mortgage Corp., Class C | 497,932 | ||||||
43,490 | Ferroglobe Representation & Warranty Insurance Trust(b) | 0 | ||||||
4,912 | Fidelity & Guaranty Life(c) | 139,746 | ||||||
16,864 | Fidelity Southern Corp. | 379,777 | ||||||
13,131 | Financial Institutions, Inc. | 439,889 | ||||||
13,538 | First Bancorp/Southern Pines NC | 406,682 | ||||||
418 | First Citizens BancShares, Inc., Class A | 145,489 | ||||||
1,977 | First Community Bancshares, Inc. | 52,311 | ||||||
8,307 | First Defiance Financial Corp. | 445,588 | ||||||
11,051 | First Financial Bancorp | 305,560 | ||||||
6,423 | First Financial Corp. | 313,442 | ||||||
14,030 | First Financial Northwest, Inc. | 219,990 | ||||||
2,902 | First Internet Bancorp | 85,754 | ||||||
6,271 | First Interstate BancSystem, Inc., Class A | 236,730 | ||||||
8,046 | First Merchants Corp. | 332,944 | ||||||
1,918 | First Midwest Bancorp, Inc. | 43,558 | ||||||
2,565 | First NBC Bank Holding Co.(b)(c) | 6,797 | ||||||
732 | First of Long Island Corp. (The) | 19,910 | ||||||
19,884 | Flagstar Bancorp, Inc.(b) | 581,408 | ||||||
20,590 | Flushing Financial Corp. | 606,993 | ||||||
27,802 | Fulton Financial Corp. | 512,947 | ||||||
2,748 | German American Bancorp, Inc. | 90,354 | ||||||
1,683 | Glacier Bancorp, Inc. | 56,852 | ||||||
8,822 | Great Southern Bancorp, Inc. | 442,423 | ||||||
15,522 | Greenlight Capital Re Ltd., Class A(b) | 334,499 | ||||||
7,802 | Guaranty Bancorp | 196,220 | ||||||
4,710 | Hancock Holding Co. | 219,957 | ||||||
11,375 | Hanmi Financial Corp. | 330,444 | ||||||
2,589 | Heartland Financial USA, Inc. | 124,272 | ||||||
17,151 | Heritage Financial Corp. | 452,786 | ||||||
6,705 | Heritage Insurance Holdings, Inc. | 81,131 | ||||||
4,395 | Hilltop Holdings, Inc. | 122,225 | ||||||
3,326 | HomeStreet, Inc.(b) | 86,476 | ||||||
1,690 | Hope Bancorp, Inc. | 30,944 | ||||||
888 | IBERIABANK Corp. | 70,463 | ||||||
21,589 | Independent Bank Corp./MI | 481,435 | ||||||
9,164 | International Bancshares Corp. | 342,734 | ||||||
7,233 | INTL FCStone, Inc.(b) | 270,153 | ||||||
27,424 | Invesco Mortgage Capital, Inc. REIT(d) | 447,286 | ||||||
3,640 | James River Group Holdings Ltd. | 158,558 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
13,575 | Lakeland Bancorp, Inc. | $ | 264,034 | |||||
12,187 | MainSource Financial Group, Inc. | 416,795 | ||||||
34,254 | Manning & Napier, Inc., Class A | 198,673 | ||||||
5,112 | Mercantile Bank Corp. | 171,917 | ||||||
116 | Meta Financial Group, Inc. | 9,848 | ||||||
66,680 | MGIC Investment Corp.(b) | 702,807 | ||||||
24,098 | Mtge Investment Corp. REIT | 433,764 | ||||||
835 | National Western Life Group, Inc., Class A | 255,710 | ||||||
788 | Navigators Group, Inc. (The) | 42,591 | ||||||
14,585 | NBT Bancorp, Inc. | 556,855 | ||||||
5,089 | Nelnet, Inc., Class A | 229,056 | ||||||
17,091 | New Residential Investment Corp. REIT | 284,907 | ||||||
16,300 | Old National Bancorp | 273,840 | ||||||
17,984 | On Deck Capital, Inc.(b)(c) | 85,424 | ||||||
14,230 | OneBeacon Insurance Group Ltd., Class A | 226,969 | ||||||
10,253 | Oppenheimer Holdings, Inc., Class A | 177,377 | ||||||
563 | Park National Corp. | 59,357 | ||||||
12,742 | Peapack-Gladstone Financial Corp. | 408,509 | ||||||
20,897 | PennyMac Financial Services, Inc., Class A(b) | 344,801 | ||||||
5,314 | Peoples Bancorp, Inc. | 177,913 | ||||||
27,435 | PHH Corp.(b) | 353,912 | ||||||
5,954 | Prosperity Bancshares, Inc. | 400,109 | ||||||
7,899 | Radian Group, Inc. | 133,335 | ||||||
1,965 | Redwood Trust, Inc. REIT | 33,543 | ||||||
14,041 | Republic Bancorp, Inc., Class A | 505,195 | ||||||
4,506 | Resource Capital Corp. REIT | 42,131 | ||||||
8,692 | S&T Bancorp, Inc. | 312,564 | ||||||
346 | Safety Insurance Group, Inc. | 25,050 | ||||||
7,222 | Sandy Spring Bancorp, Inc. | 312,352 | ||||||
4,393 | Selective Insurance Group, Inc. | 231,950 | ||||||
15,746 | Sierra Bancorp | 394,752 | ||||||
16,436 | Southwest Bancorp, Inc. | 426,514 | ||||||
8,037 | Stewart Information Services Corp. | 381,275 | ||||||
8,931 | Territorial Bancorp, Inc. | 276,415 | ||||||
5,539 | TowneBank | 179,741 | ||||||
10,657 | TriCo Bancshares | 377,897 | ||||||
19,263 | TrustCo Bank Corp. NY | 153,141 | ||||||
9,420 | Trustmark Corp. | 312,932 | ||||||
7,001 | Umpqua Holdings Corp. | 123,708 | ||||||
9,222 | Union Bankshares Corp. | 315,761 | ||||||
6,979 | United Bankshares, Inc. | 278,462 | ||||||
2,109 | United Community Banks, Inc. | 57,681 | ||||||
10,994 | Univest Corp. of Pennsylvania | 333,118 | ||||||
16,768 | Washington Federal, Inc. | 565,082 | ||||||
1,933 | Washington Trust Bancorp, Inc. | 95,104 | ||||||
1,298 | Webster Financial Corp. | 65,951 | ||||||
10,873 | WesBanco, Inc. | 432,854 | ||||||
41,955 | Western Asset Mortgage Capital Corp. REIT | 441,786 | ||||||
2,081 | Wintrust Financial Corp. | 147,460 | ||||||
|
| |||||||
34,319,438 | ||||||||
|
| |||||||
Health Care—3.0% | ||||||||
15,577 | AngioDynamics, Inc.(b) | 241,755 | ||||||
34,033 | Chimerix, Inc.(b) | 203,517 | ||||||
28,540 | Community Health Systems, Inc.(b) | 245,729 | ||||||
8,310 | Enanta Pharmaceuticals, Inc.(b) | 263,842 | ||||||
4,039 | Halyard Health, Inc.(b) | 159,541 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 61 |
|
PowerShares Russell 2000 Pure Value Portfolio (PXSV) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
19,410 | Invacare Corp. | $ | 285,327 | |||||
40,466 | Kindred Healthcare, Inc. | 388,474 | ||||||
1,041 | PharMerica Corp.(b) | 24,568 | ||||||
37,901 | Tetraphase Pharmaceuticals, Inc.(b) | 300,555 | ||||||
38,353 | Zogenix, Inc.(b)(c) | 421,883 | ||||||
|
| |||||||
2,535,191 | ||||||||
|
| |||||||
Industrials—8.6% | ||||||||
12,412 | AAR Corp. | 446,708 | ||||||
4,366 | Acacia Research Corp.(b) | 23,795 | ||||||
6,893 | ACCO Brands Corp.(b) | 98,225 | ||||||
76,129 | ARC Document Solutions, Inc.(b) | 280,155 | ||||||
2,282 | ArcBest Corp. | 60,359 | ||||||
990 | Atlas Air Worldwide Holdings, Inc.(b) | 57,420 | ||||||
107 | Barnes Group, Inc. | 5,882 | ||||||
1,756 | CBIZ, Inc.(b) | 27,657 | ||||||
2,468 | Celadon Group, Inc.(c) | 9,749 | ||||||
25,833 | Columbus McKinnon Corp. | 675,016 | ||||||
25,494 | Costamare, Inc. (Monaco) | 171,830 | ||||||
2,064 | Covenant Transportation Group, Inc., Class A(b) | 38,659 | ||||||
5,871 | DigitalGlobe, Inc.(b) | 189,046 | ||||||
8,725 | DMC Global, Inc. | 133,492 | ||||||
18,999 | Engility Holdings, Inc.(b) | 538,622 | ||||||
4,865 | Ennis, Inc. | 85,624 | ||||||
585 | Esterline Technologies Corp.(b) | 53,498 | ||||||
1,734 | GATX Corp.(c) | 103,867 | ||||||
31,201 | Hardinge, Inc. | 327,610 | ||||||
8,502 | Harsco Corp.(b) | 110,951 | ||||||
6,216 | Kennametal, Inc. | 258,461 | ||||||
62,463 | Kratos Defense & Security Solutions, Inc.(b) | 475,968 | ||||||
78,459 | Manitowoc Co., Inc. (The)(b) | 468,400 | ||||||
17,458 | MRC Global, Inc.(b) | 318,259 | ||||||
9,204 | Powell Industries, Inc. | 317,446 | ||||||
3,399 | Saia, Inc.(b) | 163,662 | ||||||
10,107 | SPX FLOW, Inc.(b) | 365,267 | ||||||
35,180 | Sunrun, Inc.(b)(c) | 186,102 | ||||||
35,770 | Titan International, Inc. | 383,097 | ||||||
20,841 | Titan Machinery, Inc.(b) | 330,330 | ||||||
11,605 | TriMas Corp.(b) | 266,335 | ||||||
5,827 | Triton International Ltd. (Bermuda)(b) | 178,364 | ||||||
|
| |||||||
7,149,856 | ||||||||
|
| |||||||
Information Technology—7.5% | ||||||||
1,182 | Actua Corp.(b) | 16,548 | ||||||
3,028 | Alpha & Omega Semiconductor Ltd.(b) | 50,113 | ||||||
23,348 | AVX Corp. | 394,815 | ||||||
49,917 | Bankrate, Inc.(b) | 529,120 | ||||||
14,975 | Black Box Corp. | 148,252 | ||||||
9,931 | Cohu, Inc. | 186,008 | ||||||
5,740 | Comtech Telecommunications Corp. | 80,417 | ||||||
12,944 | Electro Scientific Industries, Inc.(b) | 90,349 | ||||||
15,609 | Glu Mobile, Inc.(b) | 36,057 | ||||||
18,740 | Kopin Corp.(b) | 76,459 | ||||||
60,354 | Liquidity Services, Inc.(b) | 470,761 | ||||||
8,718 | ManTech International Corp., Class A | 309,489 | ||||||
92,720 | Marchex, Inc., Class B(b) | 251,271 | ||||||
1,570 | Maxwell Technologies, Inc.(b) | 9,577 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
5,423 | MoneyGram International, Inc.(b) | $ | 96,584 | |||||
17,574 | NCI, Inc., Class A(b) | 260,974 | ||||||
29,747 | Photronics, Inc.(b) | 342,091 | ||||||
20,725 | QAD, Inc., Class A | 625,895 | ||||||
66,733 | RetailMeNot, Inc.(b) | 774,103 | ||||||
11,215 | Sanmina Corp.(b) | 417,759 | ||||||
4,969 | TTM Technologies, Inc.(b) | 83,131 | ||||||
26,649 | Veeco Instruments, Inc.(b) | 879,417 | ||||||
13,021 | Viavi Solutions, Inc.(b) | 130,210 | ||||||
|
| |||||||
6,259,400 | ||||||||
|
| |||||||
Materials—5.3% | ||||||||
32,972 | Agrofresh Solutions, Inc.(b)(c) | 184,973 | ||||||
32,956 | AK Steel Holding Corp.(b) | 208,941 | ||||||
15,173 | Allegheny Technologies, Inc.(c) | 278,425 | ||||||
11,354 | Ampco-Pittsburgh Corp. | 165,201 | ||||||
8,570 | Carpenter Technology Corp. | 347,942 | ||||||
20,437 | Commercial Metals Co. | 380,946 | ||||||
51,406 | Ferroglobe PLC | 496,068 | ||||||
1,077 | Greif, Inc., Class A | 63,134 | ||||||
15,438 | Haynes International, Inc. | 652,873 | ||||||
4,241 | Hecla Mining Co. | 23,113 | ||||||
4,010 | LSB Industries, Inc.(b)(c) | 44,190 | ||||||
17,920 | Materion Corp. | 681,856 | ||||||
3,029 | Olympic Steel, Inc. | 68,304 | ||||||
8,517 | Stillwater Mining Co.(b) | 153,136 | ||||||
49,532 | SunCoke Energy, Inc.(b) | 454,208 | ||||||
83,989 | Terravia Holdings, Inc.(b)(c) | 39,609 | ||||||
9,851 | TimkenSteel Corp.(b) | 148,553 | ||||||
|
| |||||||
4,391,472 | ||||||||
|
| |||||||
Real Estate—8.4% | ||||||||
4,867 | Agree Realty Corp. REIT | 235,952 | ||||||
13,634 | Ashford Hospitality Prime, Inc. REIT | 144,384 | ||||||
93,118 | Ashford Hospitality Trust, Inc. REIT | 581,987 | ||||||
18,944 | Bluerock Residential Growth REIT, Inc., Class A REIT | 236,042 | ||||||
24,499 | CatchMark Timber Trust, Inc., Class A REIT | 286,883 | ||||||
11,199 | Cedar Realty Trust, Inc. REIT | 60,251 | ||||||
7,855 | Colony Starwood Homes REIT | 271,547 | ||||||
34,638 | Cousins Properties, Inc. REIT | 294,077 | ||||||
35,141 | First Potomac Realty Trust REIT | 386,551 | ||||||
1,108 | Getty Realty Corp. REIT | 28,365 | ||||||
8,754 | Gladstone Commercial Corp. REIT | 195,214 | ||||||
2,395 | Global NET Lease, Inc. REIT | 56,594 | ||||||
7,815 | Government Properties Income Trust REIT(c) | 166,616 | ||||||
59,077 | Independence Realty Trust, Inc. REIT | 543,508 | ||||||
16,214 | InfraREIT, Inc. REIT | 309,687 | ||||||
23,567 | Investors Real Estate Trust REIT | 139,281 | ||||||
3,421 | Kite Realty Group Trust REIT | 69,652 | ||||||
6,320 | LaSalle Hotel Properties REIT | 180,499 | ||||||
21,437 | Lexington Realty Trust REIT | 218,014 | ||||||
9,640 | Mack-Cali Realty Corp. REIT | 260,762 | ||||||
6,846 | NorthStar Realty Europe Corp. REIT | 79,619 | ||||||
4,197 | Parkway, Inc. REIT | 84,570 | ||||||
124,804 | RAIT Financial Trust REIT | 383,148 | ||||||
15,503 | Ramco-Gershenson Properties Trust REIT | 206,655 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 62 |
|
PowerShares Russell 2000 Pure Value Portfolio (PXSV) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Real Estate (continued) | ||||||||
5,929 | RE/MAX Holdings, Inc., Class A | $ | 350,700 | |||||
2,960 | Select Income REIT | 74,178 | ||||||
7,323 | Silver Bay Realty Trust Corp. REIT | 156,932 | ||||||
9,789 | Summit Hotel Properties, Inc. REIT | 161,812 | ||||||
36,430 | Sunstone Hotel Investors, Inc. REIT | 542,443 | ||||||
1,050 | Tejon Ranch Co.(b) | 24,045 | ||||||
16,057 | Tier REIT, Inc. REIT | 277,947 | ||||||
|
| |||||||
7,007,915 | ||||||||
|
| |||||||
Telecommunication Services—1.2% | ||||||||
54,899 | Iridium Communications, Inc.(b)(c) | 581,929 | ||||||
71,920 | NII Holdings, Inc.(b) | 62,053 | ||||||
20,026 | Spok Holdings, Inc. | 359,467 | ||||||
|
| |||||||
1,003,449 | ||||||||
|
| |||||||
Utilities—3.1% | ||||||||
909 | ALLETE, Inc. | 63,548 | ||||||
89,211 | Atlantic Power Corp.(b) | 223,028 | ||||||
9,273 | Avista Corp. | 374,073 | ||||||
6,556 | Consolidated Water Co. Ltd. (Cayman Islands) | 77,361 | ||||||
25,185 | Dynegy, Inc.(b) | 161,688 | ||||||
1,400 | Northwest Natural Gas Co. | 83,440 | ||||||
1,996 | NorthWestern Corp. | 119,321 | ||||||
649 | NRG Yield, Inc., Class C | 11,487 | ||||||
2,990 | Otter Tail Corp. | 118,105 | ||||||
5,305 | PNM Resources, Inc. | 197,611 | ||||||
698 | Portland General Electric Co. | 31,647 | ||||||
7,262 | South Jersey Industries, Inc. | 272,470 | ||||||
5,202 | Spire, Inc. | 356,597 | ||||||
41,915 | TerraForm Global, Inc., Class A | 199,096 | ||||||
13,564 | TerraForm Power, Inc., Class A(b) | 170,771 | ||||||
31,935 | Vivint Solar, Inc.(b)(c) | 95,805 | ||||||
|
| |||||||
2,556,048 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $76,366,609) | 83,439,397 | |||||||
|
| |||||||
Money Market Fund—0.0% | ||||||||
31,625 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(e) (Cost $31,625) | 31,625 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $76,398,234)—100.1% | 83,471,022 | |||||||
|
| |||||||
Number of Shares | Value | |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—5.6% | ||||||||
4,672,920 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(e)(f) (Cost $4,672,920) | $ | 4,672,920 | |||||
|
| |||||||
Total Investments (Cost $81,071,154)—105.7% | 88,143,942 | |||||||
Other assets less liabilities—(5.7)% | (4,728,821 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 83,415,121 | ||||||
|
|
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, 2017. |
(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, 2017. |
(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 2I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 63 |
|
Schedule of Investments(a)
PowerShares Russell Midcap Equal Weight Portfolio (EQWM)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—99.9% | ||||||||
Consumer Discretionary—10.5% | ||||||||
310 | Adient PLC | $ | 22,804 | |||||
140 | Advance Auto Parts, Inc. | 19,900 | ||||||
370 | AMC Networks, Inc., Class A(b) | 22,082 | ||||||
578 | Aramark | 21,109 | ||||||
504 | AutoNation, Inc.(b) | 21,168 | ||||||
29 | AutoZone, Inc.(b) | 20,073 | ||||||
552 | Bed Bath & Beyond, Inc. | 21,390 | ||||||
475 | Best Buy Co., Inc. | 24,610 | ||||||
514 | BorgWarner, Inc. | 21,732 | ||||||
498 | Brinker International, Inc. | 22,007 | ||||||
347 | Brunswick Corp. | 19,692 | ||||||
223 | Burlington Stores, Inc.(b) | 22,059 | ||||||
454 | Cabela’s, Inc.(b) | 24,788 | ||||||
33 | Cable One, Inc. | 22,501 | ||||||
578 | CalAtlantic Group, Inc. | 20,935 | ||||||
353 | CarMax, Inc.(b) | 20,650 | ||||||
236 | Carter’s, Inc. | 21,721 | ||||||
51 | Chipotle Mexican Grill, Inc.(b) | 24,198 | ||||||
338 | Choice Hotels International, Inc. | 21,193 | ||||||
490 | Cinemark Holdings, Inc. | 21,168 | ||||||
3,558 | Clear Channel Outdoor Holdings, Inc., Class A | 18,324 | ||||||
545 | Coach, Inc. | 21,468 | ||||||
440 | CST Brands, Inc. | 21,248 | ||||||
637 | D.R. Horton, Inc. | 20,951 | ||||||
276 | Darden Restaurants, Inc. | 23,512 | ||||||
269 | Delphi Automotive PLC | 21,628 | ||||||
447 | Dick’s Sporting Goods, Inc. | 22,596 | ||||||
448 | Dillard’s, Inc., Class A | 24,806 | ||||||
765 | Discovery Communications, Inc., Class A(b) | 22,017 | ||||||
307 | Dollar General Corp. | 22,322 | ||||||
285 | Dollar Tree, Inc.(b) | 23,589 | ||||||
115 | Domino’s Pizza, Inc. | 20,860 | ||||||
371 | Dunkin’ Brands Group, Inc. | 20,724 | ||||||
167 | Expedia, Inc. | 22,331 | ||||||
1,303 | Extended Stay America, Inc. | 22,724 | ||||||
291 | Foot Locker, Inc. | 22,506 | ||||||
884 | GameStop Corp., Class A | 20,058 | ||||||
909 | Gap, Inc. (The) | 23,816 | ||||||
411 | Garmin Ltd. | 20,895 | ||||||
1,010 | Gentex Corp. | 20,856 | ||||||
227 | Genuine Parts Co. | 20,889 | ||||||
589 | Goodyear Tire & Rubber Co. (The) | 21,339 | ||||||
37 | Graham Holdings Co., Class B | 22,263 | ||||||
8,653 | Groupon, Inc., Class A(b) | 33,920 | ||||||
930 | H&R Block, Inc. | 23,055 | ||||||
1,042 | Hanesbrands, Inc. | 22,726 | ||||||
350 | Harley-Davidson, Inc. | 19,883 | ||||||
212 | Hasbro, Inc. | 21,011 | ||||||
734 | Hilton Grand Vacations, Inc.(b) | 24,567 | ||||||
363 | Hilton Worldwide Holdings, Inc. | 21,406 | ||||||
400 | Hyatt Hotels Corp., Class A(b) | 22,200 | ||||||
904 | International Game Technology PLC | 20,069 | ||||||
872 | Interpublic Group of Cos., Inc. (The) | 20,553 | ||||||
3,850 | J.C. Penney Co., Inc.(b)(c) | 20,713 | ||||||
401 | John Wiley & Sons, Inc., Class A | 21,133 | ||||||
923 | Kate Spade & Co.(b) | 16,060 | ||||||
564 | Kohl’s Corp. | 22,013 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Discretionary (continued) | ||||||||
440 | L Brands, Inc. | $ | 23,236 | |||||
154 | Lear Corp. | 21,970 | ||||||
420 | Leggett & Platt, Inc. | 22,067 | ||||||
416 | Lennar Corp., Class A | 21,008 | ||||||
249 | Liberty Broadband Corp., Class C(b) | 22,699 | ||||||
465 | Liberty Expedia Holdings, Inc., Class A(b) | 22,464 | ||||||
1,098 | Liberty Interactive Corp. QVC Group, Series A(b) | 23,256 | ||||||
548 | Liberty Media Corp.-Liberty SiriusXM, Class C(b) | 20,819 | ||||||
489 | Liberty Ventures, Series A(b) | 26,333 | ||||||
836 | Lions Gate Entertainment Corp., Class A | 21,878 | ||||||
723 | Live Nation Entertainment, Inc.(b) | 23,252 | ||||||
717 | LKQ Corp.(b) | 22,399 | ||||||
336 | Lululemon Athletica, Inc.(b) | 17,472 | ||||||
749 | Macy’s, Inc. | 21,886 | ||||||
108 | Madison Square Garden Co. (The), Class A(b) | 21,791 | ||||||
227 | Marriott International, Inc., Class A | 21,433 | ||||||
844 | Mattel, Inc. | 18,922 | ||||||
817 | MGM Resorts International(b) | 25,090 | ||||||
569 | Michael Kors Holdings Ltd.(b) | 21,241 | ||||||
972 | Michaels Cos., Inc. (The)(b) | 22,706 | ||||||
92 | Mohawk Industries, Inc.(b) | 21,601 | ||||||
300 | Murphy USA, Inc.(b) | 20,871 | ||||||
442 | Newell Brands, Inc. | 21,101 | ||||||
1,687 | News Corp., Class A | 21,459 | ||||||
509 | Nordstrom, Inc. | 24,569 | ||||||
414 | Norwegian Cruise Line Holdings Ltd.(b) | 22,327 | ||||||
10 | NVR, Inc.(b) | 21,112 | ||||||
251 | Omnicom Group, Inc. | 20,612 | ||||||
78 | O’Reilly Automotive, Inc.(b) | 19,356 | ||||||
86 | Panera Bread Co., Class A(b) | 26,890 | ||||||
458 | Penske Automotive Group, Inc. | 21,851 | ||||||
252 | Polaris Industries, Inc.(c) | 21,486 | ||||||
178 | Pool Corp. | 21,292 | ||||||
904 | PulteGroup, Inc. | 20,494 | ||||||
215 | PVH Corp. | 21,721 | ||||||
267 | Ralph Lauren Corp., Class A | 21,552 | ||||||
966 | Regal Entertainment Group, Class A | 21,320 | ||||||
322 | Ross Stores, Inc. | 20,930 | ||||||
213 | Royal Caribbean Cruises Ltd. | 22,706 | ||||||
1,050 | Sally Beauty Holdings, Inc.(b) | 19,971 | ||||||
271 | Scripps Networks Interactive, Inc., Class A | 20,249 | ||||||
696 | Service Corp. International | 22,425 | ||||||
537 | Servicemaster Global Holdings, Inc.(b) | 20,460 | ||||||
310 | Signet Jewelers Ltd. | 20,410 | ||||||
4,127 | Sirius XM Holdings, Inc.(c) | 20,429 | ||||||
367 | Six Flags Entertainment Corp. | 22,978 | ||||||
772 | Skechers U.S.A., Inc., Class A(b) | 19,493 | ||||||
2,485 | Staples, Inc. | 24,278 | ||||||
826 | TEGNA, Inc. | 21,046 | ||||||
477 | Tempur Sealy International, Inc.(b)(c) | 22,395 | ||||||
217 | Thor Industries, Inc. | 20,871 | ||||||
222 | Tiffany & Co. | 20,346 | ||||||
591 | Toll Brothers, Inc. | 21,270 | ||||||
306 | Tractor Supply Co. | 18,944 | ||||||
564 | Tribune Media Co., Class A | 20,620 | ||||||
498 | TripAdvisor, Inc.(b) | 22,415 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 64 |
|
PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Discretionary (continued) | ||||||||
339 | Tupperware Brands Corp. | $ | 24,344 | |||||
79 | Ulta Beauty, Inc.(b) | 22,234 | ||||||
1,116 | Under Armour, Inc., Class A(b)(c) | 23,983 | ||||||
921 | Urban Outfitters, Inc.(b) | 21,072 | ||||||
112 | Vail Resorts, Inc. | 22,138 | ||||||
493 | Viacom, Inc., Class B | 20,982 | ||||||
1,023 | Vista Outdoor, Inc.(b) | 20,010 | ||||||
222 | Visteon Corp.(b) | 22,855 | ||||||
1,572 | Wendy’s Co. (The) | 23,171 | ||||||
124 | Whirlpool Corp. | 23,024 | ||||||
437 | Williams-Sonoma, Inc. | 23,620 | ||||||
252 | Wyndham Worldwide Corp. | 24,018 | ||||||
189 | Wynn Resorts Ltd. | 23,249 | ||||||
|
| |||||||
2,755,283 | ||||||||
|
| |||||||
Consumer Staples—11.0% | ||||||||
3,564 | Blue Buffalo Pet Products, Inc.(b) | 87,853 | ||||||
1,757 | Brown-Forman Corp., Class B | 83,141 | ||||||
1,039 | Bunge Ltd. | 82,112 | ||||||
1,444 | Campbell Soup Co. | 83,088 | ||||||
744 | Casey’s General Stores, Inc. | 83,380 | ||||||
1,646 | Church & Dwight Co., Inc. | 81,526 | ||||||
604 | Clorox Co. (The) | 80,749 | ||||||
2,061 | Conagra Brands, Inc. | 79,926 | ||||||
1,151 | Coty, Inc., Class A | 20,545 | ||||||
860 | Dr Pepper Snapple Group, Inc. | 78,819 | ||||||
1,129 | Edgewell Personal Care Co.(b) | 80,712 | ||||||
1,480 | Energizer Holdings, Inc. | 87,660 | ||||||
4,282 | Flowers Foods, Inc. | 83,970 | ||||||
2,230 | Hain Celestial Group, Inc. (The)(b) | 82,488 | ||||||
1,461 | Herbalife Ltd.(b)(c) | 92,423 | ||||||
766 | Hershey Co. (The) | 82,881 | ||||||
2,396 | Hormel Foods Corp. | 84,052 | ||||||
689 | Ingredion, Inc. | 85,312 | ||||||
622 | JM Smucker Co. (The) | 78,820 | ||||||
1,138 | Kellogg Co. | 80,798 | ||||||
1,934 | Lamb Weston Holdings, Inc. | 80,744 | ||||||
822 | McCormick & Co., Inc. | 82,118 | ||||||
942 | Mead Johnson Nutrition Co. | 83,574 | ||||||
855 | Molson Coors Brewing Co., Class B | 81,986 | ||||||
1,535 | Nu Skin Enterprises, Inc., Class A | 84,778 | ||||||
3,761 | Pilgrim’s Pride Corp. | 97,636 | ||||||
1,433 | Pinnacle Foods, Inc. | 83,329 | ||||||
984 | Post Holdings, Inc.(b) | 82,843 | ||||||
18,226 | Rite Aid Corp.(b) | 72,904 | ||||||
592 | Spectrum Brands Holdings, Inc. | 85,088 | ||||||
3,652 | Sprouts Farmers Market, Inc.(b) | 81,476 | ||||||
991 | TreeHouse Foods, Inc.(b) | 86,812 | ||||||
1,329 | Tyson Foods, Inc., Class A | 85,401 | ||||||
3,056 | US Foods Holding Corp.(b) | 86,179 | ||||||
2,843 | Whole Foods Market, Inc. | 103,400 | ||||||
|
| |||||||
2,878,523 | ||||||||
|
| |||||||
Energy—10.2% | ||||||||
2,293 | Antero Resources Corp.(b) | 48,589 | ||||||
863 | Baker Hughes, Inc. | 51,236 | ||||||
2,234 | Cabot Oil & Gas Corp. | 51,918 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Energy (continued) | ||||||||
1,146 | Cheniere Energy, Inc.(b) | $ | 51,971 | |||||
10,028 | Chesapeake Energy Corp.(b)(c) | 52,747 | ||||||
436 | Cimarex Energy Co. | 50,873 | ||||||
415 | Concho Resources, Inc.(b) | 52,564 | ||||||
3,251 | CONSOL Energy, Inc.(b) | 49,350 | ||||||
1,211 | Continental Resources, Inc.(b) | 51,359 | ||||||
1,306 | Devon Energy Corp. | 51,574 | ||||||
3,266 | Diamond Offshore Drilling, Inc.(b) | 47,096 | ||||||
524 | Diamondback Energy, Inc.(b) | 52,316 | ||||||
989 | Dril-Quip, Inc.(b) | 50,983 | ||||||
980 | Energen Corp.(b) | 50,950 | ||||||
6,062 | Ensco PLC, Class A | 47,829 | ||||||
895 | EQT Corp. | 52,035 | ||||||
3,035 | Extraction Oil & Gas, Inc.(b) | 47,498 | ||||||
5,187 | Frank’s International NV(c) | 47,202 | ||||||
3,212 | Gulfport Energy Corp.(b) | 51,007 | ||||||
774 | Helmerich & Payne, Inc. | 46,935 | ||||||
1,097 | Hess Corp. | 53,567 | ||||||
1,888 | HollyFrontier Corp. | 53,128 | ||||||
9,018 | Kosmos Energy Ltd.(b) | 54,198 | ||||||
3,960 | Laredo Petroleum, Inc.(b) | 50,926 | ||||||
3,477 | Marathon Oil Corp. | 51,703 | ||||||
1,035 | Marathon Petroleum Corp. | 52,723 | ||||||
1,960 | Murphy Oil Corp. | 51,313 | ||||||
4,032 | Nabors Industries Ltd. | 41,691 | ||||||
1,329 | National Oilwell Varco, Inc. | 46,475 | ||||||
1,524 | Newfield Exploration Co.(b) | 52,761 | ||||||
8,755 | Noble Corp. PLC | 42,024 | ||||||
1,548 | Noble Energy, Inc. | 50,047 | ||||||
2,014 | Oceaneering International, Inc. | 53,149 | ||||||
977 | ONEOK, Inc. | 51,400 | ||||||
1,691 | Parsley Energy, Inc., Class A(b) | 50,375 | ||||||
2,084 | Patterson-UTI Energy, Inc. | 45,108 | ||||||
2,440 | PBF Energy, Inc., Class A | 54,461 | ||||||
4,261 | QEP Resources, Inc.(b) | 50,322 | ||||||
1,874 | Range Resources Corp. | 49,642 | ||||||
2,452 | Rice Energy, Inc.(b) | 52,203 | ||||||
3,520 | Rowan Cos. PLC, Class A(b) | 49,526 | ||||||
2,935 | RPC, Inc.(c) | 53,329 | ||||||
2,420 | SM Energy Co. | 54,668 | ||||||
6,769 | Southwestern Energy Co.(b) | 50,835 | ||||||
3,704 | Superior Energy Services, Inc.(b) | 44,744 | ||||||
900 | Targa Resources Corp. | 49,617 | ||||||
624 | Tesoro Corp. | 49,739 | ||||||
4,160 | Transocean Ltd.(b) | 45,885 | ||||||
8,695 | Weatherford International PLC(b) | 50,170 | ||||||
6,105 | Whiting Petroleum Corp.(b) | 50,672 | ||||||
1,797 | Williams Cos., Inc. (The) | 55,042 | ||||||
1,452 | World Fuel Services Corp. | 53,477 | ||||||
4,232 | WPX Energy, Inc.(b) | 50,488 | ||||||
|
| |||||||
2,671,440 | ||||||||
|
| |||||||
Financials—5.7% | ||||||||
88 | Affiliated Managers Group, Inc. | 14,572 | ||||||
702 | Agnc Investment Corp. REIT | 14,791 | ||||||
24 | Alleghany Corp.(b) | 14,657 | ||||||
262 | Allied World Assurance Co. Holdings AG | 13,910 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 65 |
|
PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
692 | Ally Financial, Inc. | $ | 13,702 | |||||
148 | American Financial Group, Inc. | 14,402 | ||||||
121 | American National Insurance Co. | 14,147 | ||||||
111 | Ameriprise Financial, Inc. | 14,191 | ||||||
784 | AmTrust Financial Services, Inc. | 12,583 | ||||||
1,245 | Annaly Capital Management, Inc. REIT | 14,703 | ||||||
149 | Arch Capital Group Ltd.(b) | 14,449 | ||||||
248 | Arthur J. Gallagher & Co. | 13,841 | ||||||
518 | Artisan Partners Asset Management, Inc., Class A | 15,177 | ||||||
265 | Aspen Insurance Holdings Ltd. (Bermuda) | 13,873 | ||||||
592 | Associated Banc-Corp. | 14,741 | ||||||
146 | Assurant, Inc. | 14,051 | ||||||
378 | Assured Guaranty Ltd. | 14,413 | ||||||
274 | Athene Holding Ltd., Class A(b) | 14,607 | ||||||
209 | Axis Capital Holdings Ltd. | 13,773 | ||||||
176 | Bank of Hawaii Corp. | 14,341 | ||||||
390 | BankUnited, Inc. | 13,763 | ||||||
185 | BOK Financial Corp. | 15,594 | ||||||
328 | Brown & Brown, Inc. | 14,071 | ||||||
175 | CBOE Holdings, Inc. | 14,422 | ||||||
694 | Chimera Investment Corp. REIT | 14,130 | ||||||
192 | Cincinnati Financial Corp. | 13,841 | ||||||
341 | CIT Group, Inc. | 15,792 | ||||||
403 | Citizens Financial Group, Inc. | 14,794 | ||||||
320 | CNA Financial Corp. | 14,483 | ||||||
208 | Comerica, Inc. | 14,706 | ||||||
255 | Commerce Bancshares, Inc. | 14,012 | ||||||
75 | Credit Acceptance Corp.(b)(c) | 15,244 | ||||||
163 | Cullen/Frost Bankers, Inc. | 15,386 | ||||||
724 | Donnelley Financial Solutions, Inc.(b) | 16,087 | ||||||
413 | E*TRADE Financial Corp.(b) | 14,269 | ||||||
276 | East West Bancorp, Inc. | 14,979 | ||||||
311 | Eaton Vance Corp. | 13,351 | ||||||
115 | Erie Indemnity Co., Class A | 14,239 | ||||||
60 | Everest Re Group Ltd. | 15,103 | ||||||
79 | FactSet Research Systems, Inc. | 12,898 | ||||||
545 | Federated Investors, Inc., Class B | 14,617 | ||||||
556 | Fifth Third Bancorp | 13,583 | ||||||
361 | First American Financial Corp. | 15,671 | ||||||
473 | First Hawaiian, Inc. | 14,081 | ||||||
766 | First Horizon National Corp. | 14,056 | ||||||
154 | First Republic Bank | 14,239 | ||||||
362 | FNF Group | 14,824 | ||||||
155 | Hanover Insurance Group, Inc. (The) | 13,682 | ||||||
293 | Hartford Financial Services Group, Inc. (The) | 14,169 | ||||||
1,071 | Huntington Bancshares, Inc. | 13,773 | ||||||
398 | Interactive Brokers Group, Inc., Class A | 13,862 | ||||||
461 | Invesco Ltd.(d) | 15,185 | ||||||
808 | KeyCorp | 14,738 | ||||||
309 | Lazard Ltd., Class A | 13,268 | ||||||
400 | Legg Mason, Inc. | 14,952 | ||||||
541 | Leucadia National Corp. | 13,736 | ||||||
218 | Lincoln National Corp. | 14,373 | ||||||
301 | Loews Corp. | 14,033 | ||||||
354 | LPL Financial Holdings, Inc. | 14,882 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
90 | M&T Bank Corp. | $ | 13,987 | |||||
15 | Markel Corp.(b) | 14,544 | ||||||
75 | MarketAxess Holdings, Inc. | 14,439 | ||||||
236 | Mercury General Corp. | 14,512 | ||||||
1,711 | MFA Financial, Inc. REIT | 14,218 | ||||||
124 | Moody’s Corp. | 14,672 | ||||||
178 | Morningstar, Inc. | 13,017 | ||||||
144 | MSCI, Inc. | 14,446 | ||||||
200 | Nasdaq, Inc. | 13,774 | ||||||
994 | Navient Corp. | 15,109 | ||||||
1,003 | New York Community Bancorp, Inc. | 13,330 | ||||||
161 | Northern Trust Corp. | 14,490 | ||||||
693 | Old Republic International Corp. | 14,331 | ||||||
548 | OneMain Holdings, Inc.(b) | 12,779 | ||||||
273 | PacWest Bancorp | 13,483 | ||||||
780 | People’s United Financial, Inc. | 13,627 | ||||||
360 | Popular, Inc. | 15,088 | ||||||
224 | Principal Financial Group, Inc. | 14,589 | ||||||
236 | ProAssurance Corp. | 14,608 | ||||||
352 | Progressive Corp. (The) | 13,981 | ||||||
186 | Raymond James Financial, Inc. | 13,861 | ||||||
980 | Regions Financial Corp. | 13,475 | ||||||
111 | Reinsurance Group of America, Inc. | 13,879 | ||||||
95 | RenaissanceRe Holdings Ltd. (Bermuda) | 13,506 | ||||||
1,076 | Santander Consumer USA Holdings, Inc.(b) | 13,708 | ||||||
275 | SEI Investments Co. | 13,945 | ||||||
96 | Signature Bank(b) | 13,291 | ||||||
1,188 | SLM Corp.(b) | 14,898 | ||||||
619 | Starwood Property Trust, Inc. REIT | 14,045 | ||||||
254 | SunTrust Banks, Inc. | 14,430 | ||||||
78 | SVB Financial Group(b) | 13,723 | ||||||
417 | Synchrony Financial | 11,593 | ||||||
354 | Synovus Financial Corp. | 14,797 | ||||||
204 | T. Rowe Price Group, Inc. | 14,462 | ||||||
881 | TCF Financial Corp. | 14,545 | ||||||
368 | TD Ameritrade Holding Corp. | 14,083 | ||||||
850 | TFS Financial Corp. | 14,059 | ||||||
182 | Torchmark Corp. | 13,961 | ||||||
1,434 | Two Harbors Investment Corp. REIT | 14,326 | ||||||
303 | Unum Group | 14,038 | ||||||
248 | Validus Holdings Ltd. | 13,709 | ||||||
372 | Voya Financial, Inc. | 13,905 | ||||||
197 | W.R. Berkley Corp. | 13,392 | ||||||
295 | Western Alliance Bancorp(b) | 14,131 | ||||||
16 | White Mountains Insurance Group Ltd. | 13,743 | ||||||
349 | XL Group Ltd. (Bermuda) | 14,606 | ||||||
341 | Zions Bancorporation | 13,650 | ||||||
|
| |||||||
1,506,597 | ||||||||
|
| |||||||
Health Care—12.0% | ||||||||
335 | ABIOMED, Inc.(b) | 43,657 | ||||||
1,047 | Acadia Healthcare Co., Inc.(b) | 45,628 | ||||||
1,202 | ACADIA Pharmaceuticals, Inc.(b) | 41,265 | ||||||
779 | Agilent Technologies, Inc. | 42,884 | ||||||
765 | Agios Pharmaceuticals, Inc.(b) | 38,028 | ||||||
1,858 | Akorn, Inc.(b) | 62,150 | ||||||
1,093 | Alere, Inc.(b) | 53,743 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 66 |
|
PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
368 | Align Technology, Inc.(b) | $ | 49,540 | |||||
706 | Alkermes PLC(b) | 41,124 | ||||||
3,568 | Allscripts Healthcare Solutions, Inc.(b) | 42,709 | ||||||
779 | Alnylam Pharmaceuticals, Inc.(b) | 41,754 | ||||||
482 | AmerisourceBergen Corp. | 39,548 | ||||||
383 | athenahealth, Inc.(b) | 37,538 | ||||||
477 | BioMarin Pharmaceutical, Inc.(b) | 45,716 | ||||||
207 | Bio-Rad Laboratories, Inc., Class A(b) | 45,180 | ||||||
400 | Bio-Techne Corp. | 42,832 | ||||||
3,443 | Brookdale Senior Living, Inc.(b) | 44,725 | ||||||
1,784 | Bruker Corp. | 43,512 | ||||||
167 | C.R. Bard, Inc. | 51,349 | ||||||
634 | Centene Corp.(b) | 47,170 | ||||||
733 | Cerner Corp.(b) | 47,462 | ||||||
472 | Charles River Laboratories International, Inc.(b) | 42,338 | ||||||
213 | Cooper Cos., Inc. (The) | 42,670 | ||||||
627 | DaVita, Inc.(b) | 43,269 | ||||||
665 | DENTSPLY Sirona, Inc. | 42,055 | ||||||
544 | DexCom, Inc.(b) | 42,410 | ||||||
439 | Edwards Lifesciences Corp.(b) | 48,145 | ||||||
4,147 | Endo International PLC(b) | 47,151 | ||||||
665 | Envision Healthcare Corp.(b) | 37,260 | ||||||
242 | Henry Schein, Inc.(b) | 42,060 | ||||||
596 | Hill-Rom Holdings, Inc. | 45,081 | ||||||
981 | Hologic, Inc.(b) | 44,292 | ||||||
271 | IDEXX Laboratories, Inc.(b) | 45,455 | ||||||
247 | Illumina, Inc.(b) | 45,660 | ||||||
298 | Incyte Corp.(b) | 37,035 | ||||||
2,956 | Inovalon Holdings, Inc., Class A(b)(c) | 36,211 | ||||||
358 | Intercept Pharmaceuticals, Inc.(b) | 40,221 | ||||||
2,188 | Intrexon Corp.(b)(c) | 45,598 | ||||||
56 | Intuitive Surgical, Inc.(b) | 46,809 | ||||||
1,092 | Ionis Pharmaceuticals, Inc.(b) | 52,623 | ||||||
2,043 | Juno Therapeutics, Inc.(b)(c) | 50,952 | ||||||
293 | Laboratory Corp. of America Holdings(b) | 41,064 | ||||||
691 | LifePoint Health, Inc.(b) | 42,946 | ||||||
959 | Mallinckrodt PLC(b) | 44,996 | ||||||
611 | MEDNAX, Inc.(b) | 36,880 | ||||||
59 | Mettler-Toledo International, Inc.(b) | 30,292 | ||||||
998 | Neurocrine Biosciences, Inc.(b) | 53,293 | ||||||
5,415 | OPKO Health, Inc.(b)(c) | 42,075 | ||||||
1,569 | Patheon NV(b) | 42,222 | ||||||
937 | Patterson Cos., Inc. | 41,687 | ||||||
719 | PerkinElmer, Inc. | 42,716 | ||||||
608 | Perrigo Co. PLC | 44,955 | ||||||
1,388 | Premier, Inc., Class A(b) | 46,914 | ||||||
1,441 | Qiagen N.V. | 43,360 | ||||||
422 | Quest Diagnostics, Inc. | 44,525 | ||||||
535 | Quintiles IMS Holdings, Inc.(b) | 45,090 | ||||||
581 | ResMed, Inc. | 39,502 | ||||||
655 | Seattle Genetics, Inc.(b) | 44,736 | ||||||
213 | Teleflex, Inc. | 44,068 | ||||||
2,434 | Tenet Healthcare Corp.(b) | 38,141 | ||||||
298 | United Therapeutics Corp.(b) | 37,459 | ||||||
349 | Universal Health Services, Inc., Class B | 42,145 | ||||||
1,332 | Varex Imaging Corp.(b) | 44,702 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
454 | Varian Medical Systems, Inc.(b) | $ | 41,196 | |||||
452 | VCA, Inc.(b) | 41,390 | ||||||
832 | Veeva Systems, Inc., Class A(b) | 44,612 | ||||||
1,501 | VWR Corp.(b) | 42,418 | ||||||
180 | Waters Corp.(b) | 30,580 | ||||||
302 | WellCare Health Plans, Inc.(b) | 46,330 | ||||||
521 | West Pharmaceutical Services, Inc. | 47,948 | ||||||
344 | Zimmer Biomet Holdings, Inc. | 41,160 | ||||||
770 | Zoetis, Inc. | 43,205 | ||||||
|
| |||||||
3,137,416 | ||||||||
|
| |||||||
Industrials—12.5% | ||||||||
547 | A.O. Smith Corp. | 29,472 | ||||||
244 | Acuity Brands, Inc. | 42,968 | ||||||
811 | AECOM(b) | 27,744 | ||||||
469 | AGCO Corp. | 30,011 | ||||||
738 | Air Lease Corp. | 28,147 | ||||||
298 | Alaska Air Group, Inc. | 25,357 | ||||||
374 | Allegion PLC | 29,411 | ||||||
792 | Allison Transmission Holdings, Inc. | 30,635 | ||||||
57 | AMERCO | 21,344 | ||||||
677 | American Airlines Group, Inc. | 28,854 | ||||||
524 | AMETEK, Inc. | 29,973 | ||||||
1,050 | Arconic, Inc. | 28,696 | ||||||
1,098 | Armstrong World Industries, Inc.(b) | 51,331 | ||||||
741 | Avis Budget Group, Inc.(b) | 22,600 | ||||||
585 | BWX Technologies, Inc. | 28,764 | ||||||
361 | C.H. Robinson Worldwide, Inc. | 26,245 | ||||||
261 | Carlisle Cos., Inc. | 26,463 | ||||||
966 | Chicago Bridge & Iron Co. NV | 29,057 | ||||||
222 | Cintas Corp. | 27,188 | ||||||
508 | Clean Harbors, Inc.(b) | 29,520 | ||||||
736 | Colfax Corp.(b) | 29,786 | ||||||
257 | Copa Holdings SA, Class A (Panama) | 29,920 | ||||||
912 | Copart, Inc.(b) | 28,181 | ||||||
1,838 | Covanta Holding Corp. | 26,743 | ||||||
382 | Crane Co. | 30,526 | ||||||
184 | Cummins, Inc. | 27,773 | ||||||
623 | Donaldson Co., Inc. | 28,832 | ||||||
358 | Dover Corp. | 28,239 | ||||||
134 | Dun & Bradstreet Corp. (The) | 14,688 | ||||||
103 | Equifax, Inc. | 13,937 | ||||||
502 | Expeditors International of Washington, Inc. | 28,157 | ||||||
966 | Fastenal Co. | 43,161 | ||||||
608 | Flowserve Corp. | 30,929 | ||||||
531 | Fluor Corp. | 27,251 | ||||||
352 | Fortune Brands Home & Security, Inc. | 22,436 | ||||||
429 | Genesee & Wyoming, Inc., Class A(b) | 29,069 | ||||||
299 | Graco, Inc. | 32,247 | ||||||
693 | HD Supply Holdings, Inc.(b) | 27,928 | ||||||
410 | HEICO Corp. | 29,139 | ||||||
599 | Herc Holdings, Inc.(b) | 27,237 | ||||||
1,189 | Hertz Global Holdings, Inc.(b) | 19,607 | ||||||
927 | Hexcel Corp. | 47,972 | ||||||
237 | Hubbell, Inc. | 26,812 | ||||||
135 | Huntington Ingalls Industries, Inc. | 27,120 | ||||||
306 | IDEX Corp. | 32,057 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 67 |
|
PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
617 | Ingersoll-Rand PLC | $ | 54,759 | |||||
709 | ITT, Inc. | 29,870 | ||||||
309 | J.B. Hunt Transport Services, Inc. | 27,705 | ||||||
512 | Jacobs Engineering Group, Inc. | 28,119 | ||||||
1,407 | JetBlue Airways Corp.(b) | 30,715 | ||||||
675 | Johnson Controls International PLC | 28,060 | ||||||
340 | Kansas City Southern | 30,624 | ||||||
486 | KAR Auction Services, Inc. | 21,199 | ||||||
2,003 | KBR, Inc. | 28,142 | ||||||
412 | Kirby Corp.(b) | 29,087 | ||||||
167 | L3 Technologies, Inc. | 28,686 | ||||||
335 | Landstar System, Inc. | 28,626 | ||||||
289 | Lennox International, Inc. | 47,798 | ||||||
328 | Lincoln Electric Holdings, Inc. | 29,202 | ||||||
1,143 | LSC Communications, Inc. | 29,569 | ||||||
353 | Macquarie Infrastructure Corp. | 28,724 | ||||||
281 | ManpowerGroup, Inc. | 28,375 | ||||||
1,441 | Masco Corp. | 53,346 | ||||||
206 | Middleby Corp. (The)(b) | 28,043 | ||||||
279 | MSC Industrial Direct Co., Inc., Class A | 24,979 | ||||||
513 | Nielsen Holdings PLC | 21,100 | ||||||
228 | Nordson Corp. | 28,546 | ||||||
329 | Old Dominion Freight Line, Inc. | 29,123 | ||||||
283 | Orbital ATK, Inc. | 28,017 | ||||||
410 | Oshkosh Corp. | 28,450 | ||||||
803 | Owens Corning | 48,863 | ||||||
415 | PACCAR, Inc. | 27,693 | ||||||
177 | Parker-Hannifin Corp. | 28,462 | ||||||
460 | Pentair PLC (United Kingdom) | 29,675 | ||||||
2,229 | Pitney Bowes, Inc. | 29,623 | ||||||
769 | Quanta Services, Inc.(b) | 27,253 | ||||||
381 | Regal Beloit Corp. | 30,042 | ||||||
447 | Republic Services, Inc. | 28,157 | ||||||
575 | Robert Half International, Inc. | 26,479 | ||||||
182 | Rockwell Automation, Inc. | 28,638 | ||||||
423 | Rockwell Collins, Inc. | 44,030 | ||||||
778 | Rollins, Inc. | 30,210 | ||||||
135 | Roper Technologies, Inc. | 29,525 | ||||||
2,383 | RR Donnelley & Sons Co. | 29,954 | ||||||
385 | Ryder System, Inc. | 26,145 | ||||||
175 | Snap-on, Inc. | 29,318 | ||||||
490 | Spirit AeroSystems Holdings, Inc., Class A | 28,008 | ||||||
557 | Spirit Airlines, Inc.(b) | 31,899 | ||||||
214 | Stanley Black & Decker, Inc. | 29,136 | ||||||
342 | Stericycle, Inc.(b) | 29,186 | ||||||
936 | Terex Corp. | 32,741 | ||||||
597 | Textron, Inc. | 27,856 | ||||||
1,116 | Timken Co. (The) | 53,847 | ||||||
458 | Toro Co. (The) | 29,733 | ||||||
137 | TransDigm Group, Inc. | 33,802 | ||||||
370 | TransUnion(b) | 14,811 | ||||||
1,070 | Trinity Industries, Inc. | 28,783 | ||||||
415 | United Continental Holdings, Inc.(b) | 29,137 | ||||||
232 | United Rentals, Inc.(b) | 25,441 | ||||||
1,479 | USG Corp.(b) | 44,814 | ||||||
326 | Valmont Industries, Inc. | 49,666 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
350 | Verisk Analytics, Inc.(b) | $ | 28,984 | |||||
121 | W.W. Grainger, Inc. | 23,317 | ||||||
182 | WABCO Holdings, Inc.(b) | 21,634 | ||||||
369 | Wabtec Corp. | 30,955 | ||||||
345 | Watsco, Inc. | 47,886 | ||||||
1,456 | Welbilt, Inc.(b) | 29,848 | ||||||
411 | WESCO International, Inc.(b) | 25,050 | ||||||
573 | Xylem, Inc. | 29,458 | ||||||
|
| |||||||
3,294,450 | ||||||||
|
| |||||||
Information Technology—13.5% | ||||||||
541 | Akamai Technologies, Inc.(b) | 32,969 | ||||||
62 | Alliance Data Systems Corp. | 15,477 | ||||||
553 | Amdocs Ltd. | 33,866 | ||||||
486 | Amphenol Corp., Class A | 35,143 | ||||||
422 | Analog Devices, Inc. | 32,156 | ||||||
323 | ANSYS, Inc.(b) | 35,582 | ||||||
265 | Arista Networks, Inc.(b) | 37,005 | ||||||
1,291 | ARRIS International PLC(b) | 33,553 | ||||||
473 | Arrow Electronics, Inc.(b) | 33,346 | ||||||
1,176 | Atlassian Corp. PLC, Class A (Australia)(b) | 40,548 | ||||||
402 | Autodesk, Inc.(b) | 36,208 | ||||||
776 | Avnet, Inc. | 30,023 | ||||||
904 | Black Knight Financial Services, Inc., Class A(b) | 37,426 | ||||||
766 | Booz Allen Hamilton Holding Corp. | 27,522 | ||||||
205 | Broadridge Financial Solutions, Inc. | 14,338 | ||||||
2,759 | Brocade Communications Systems, Inc. | 34,681 | ||||||
1,079 | CA, Inc. | 35,424 | ||||||
1,085 | Cadence Design Systems, Inc.(b) | 35,338 | ||||||
529 | CDK Global, Inc. | 34,390 | ||||||
593 | CDW Corp. | 35,040 | ||||||
413 | Citrix Systems, Inc.(b) | 33,428 | ||||||
429 | Cognex Corp. | 36,611 | ||||||
2,232 | CommerceHub, Inc., Series C(b) | 35,533 | ||||||
851 | CommScope Holding Co., Inc.(b) | 35,776 | ||||||
1,753 | Conduent, Inc.(b) | 28,591 | ||||||
356 | CoreLogic, Inc.(b) | 15,215 | ||||||
136 | CoStar Group, Inc.(b) | 32,761 | ||||||
1,292 | Cree, Inc.(b) | 28,269 | ||||||
1,175 | CSRA, Inc. | 34,169 | ||||||
2,456 | Cypress Semiconductor Corp. | 34,409 | ||||||
673 | Dolby Laboratories, Inc., Class A | 35,487 | ||||||
301 | DST Systems, Inc. | 37,056 | ||||||
625 | EchoStar Corp., Class A(b) | 35,975 | ||||||
389 | Electronic Arts, Inc.(b) | 36,885 | ||||||
167 | Euronet Worldwide, Inc.(b) | 13,798 | ||||||
235 | F5 Networks, Inc.(b) | 30,346 | ||||||
175 | Fidelity National Information Services, Inc. | 14,733 | ||||||
2,825 | FireEye, Inc.(b) | 35,341 | ||||||
928 | First Data Corp., Class A(b) | 14,495 | ||||||
1,786 | First Solar, Inc.(b) | 52,776 | ||||||
120 | Fiserv, Inc.(b) | 14,297 | ||||||
3,928 | Fitbit, Inc., Class A(b) | 22,468 | ||||||
88 | FleetCor Technologies, Inc.(b) | 12,420 | ||||||
772 | FLIR Systems, Inc. | 28,356 | ||||||
947 | Fortinet, Inc.(b) | 36,933 | ||||||
316 | Gartner, Inc.(b) | 36,052 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
1,153 | Genpact Ltd. | $ | 28,156 | |||||
177 | Global Payments, Inc. | 14,471 | ||||||
940 | GoDaddy, Inc., Class A(b) | 36,585 | ||||||
620 | Guidewire Software, Inc.(b) | 38,124 | ||||||
309 | Harris Corp. | 34,574 | ||||||
476 | IAC/InterActiveCorp.(b) | 39,513 | ||||||
290 | IPG Photonics Corp.(b) | 36,633 | ||||||
1,197 | Jabil Circuit, Inc. | 34,737 | ||||||
149 | Jack Henry & Associates, Inc. | 14,441 | ||||||
1,237 | Juniper Networks, Inc. | 37,197 | ||||||
753 | Keysight Technologies, Inc.(b) | 28,185 | ||||||
362 | KLA-Tencor Corp. | 35,556 | ||||||
275 | Lam Research Corp. | 39,834 | ||||||
654 | Leidos Holdings, Inc. | 34,440 | ||||||
701 | Manhattan Associates, Inc.(b) | 32,730 | ||||||
2,165 | Marvell Technology Group Ltd. (Bermuda) | 32,518 | ||||||
2,155 | Match Group, Inc.(b)(c) | 40,148 | ||||||
763 | Maxim Integrated Products, Inc. | 33,686 | ||||||
473 | Microchip Technology, Inc. | 35,749 | ||||||
1,301 | Micron Technology, Inc.(b) | 35,999 | ||||||
411 | Motorola Solutions, Inc. | 35,334 | ||||||
872 | National Instruments Corp. | 30,442 | ||||||
789 | NCR Corp.(b) | 32,546 | ||||||
842 | NetApp, Inc. | 33,554 | ||||||
2,096 | Nuance Communications, Inc.(b) | 37,497 | ||||||
1,778 | Nutanix, Inc., Class A(b)(c) | 27,008 | ||||||
322 | NVIDIA Corp. | 33,585 | ||||||
2,302 | ON Semiconductor Corp.(b) | 32,642 | ||||||
308 | Palo Alto Networks, Inc.(b) | 33,390 | ||||||
1,838 | Pandora Media, Inc.(b)(c) | 19,942 | ||||||
456 | Paychex, Inc. | 27,032 | ||||||
661 | PTC, Inc.(b) | 35,727 | ||||||
515 | Qorvo, Inc.(b) | 35,035 | ||||||
416 | Red Hat, Inc.(b) | 36,641 | ||||||
1,645 | Sabre Corp. | 38,509 | ||||||
408 | ServiceNow, Inc.(b) | 38,548 | ||||||
357 | Skyworks Solutions, Inc. | 35,607 | ||||||
567 | Splunk, Inc.(b) | 36,464 | ||||||
839 | Square, Inc., Class A(b) | 15,303 | ||||||
965 | SS&C Technologies Holdings, Inc. | 35,454 | ||||||
8,206 | SunPower Corp.(b)(c) | 56,950 | ||||||
1,122 | Symantec Corp. | 35,489 | ||||||
484 | Synopsys, Inc.(b) | 35,671 | ||||||
720 | Tableau Software, Inc., Class A(b) | 38,650 | ||||||
1,131 | Teradata Corp.(b) | 33,003 | ||||||
1,127 | Teradyne, Inc. | 39,749 | ||||||
267 | Total System Services, Inc. | 15,302 | ||||||
897 | Trimble, Inc.(b) | 31,781 | ||||||
1,185 | Twilio, Inc., Class A(b)(c) | 39,164 | ||||||
2,307 | Twitter, Inc.(b) | 38,019 | ||||||
223 | Tyler Technologies, Inc.(b) | 36,481 | ||||||
180 | Ultimate Software Group, Inc. (The)(b) | 36,481 | ||||||
218 | Vantiv, Inc., Class A(b) | 13,525 | ||||||
1,835 | VeriFone Systems, Inc.(b) | 34,021 | ||||||
394 | VeriSign, Inc.(b)(c) | 35,034 | ||||||
452 | Western Digital Corp. | 40,260 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
693 | Western Union Co. (The) | $ | 13,763 | |||||
136 | WEX, Inc.(b) | 13,799 | ||||||
423 | Workday, Inc., Class A(b) | 36,970 | ||||||
3,892 | Xerox Corp. | 27,983 | ||||||
585 | Xilinx, Inc. | 36,919 | ||||||
1,051 | Yelp, Inc., Class A(b) | 37,216 | ||||||
323 | Zebra Technologies Corp., Class A(b) | 30,449 | ||||||
416 | Zillow Group, Inc., Class C(b) | 16,224 | ||||||
12,255 | Zynga, Inc., Class A(b) | 35,417 | ||||||
|
| |||||||
3,544,071 | ||||||||
|
| |||||||
Materials—9.0% | ||||||||
469 | Albemarle Corp. | 51,079 | ||||||
1,479 | Alcoa Corp. | 49,887 | ||||||
639 | AptarGroup, Inc. | 51,312 | ||||||
411 | Ashland Global Holdings, Inc. | 50,758 | ||||||
352 | Avery Dennison Corp. | 29,290 | ||||||
1,574 | Axalta Coating Systems Ltd.(b) | 49,376 | ||||||
663 | Ball Corp. | 50,978 | ||||||
1,003 | Bemis Co., Inc. | 45,065 | ||||||
1,019 | Berry Global Group, Inc.(b) | 50,950 | ||||||
846 | Cabot Corp. | 50,921 | ||||||
546 | Celanese Corp., Series A | 47,524 | ||||||
1,677 | CF Industries Holdings, Inc. | 44,843 | ||||||
735 | Compass Minerals International, Inc.(c) | 48,510 | ||||||
924 | Crown Holdings, Inc.(b) | 51,827 | ||||||
1,301 | Domtar Corp. | 51,585 | ||||||
503 | Eagle Materials, Inc. | 48,273 | ||||||
632 | Eastman Chemical Co. | 50,402 | ||||||
801 | FMC Corp. | 58,657 | ||||||
3,841 | Freeport-McMoRan, Inc.(b) | 48,973 | ||||||
3,759 | Graphic Packaging Holding Co. | 51,047 | ||||||
2,146 | Huntsman Corp. | 53,156 | ||||||
365 | International Flavors & Fragrances, Inc. | 50,585 | ||||||
960 | International Paper Co. | 51,811 | ||||||
231 | Martin Marietta Materials, Inc. | 50,864 | ||||||
1,699 | Mosaic Co. (The) | 45,754 | ||||||
110 | NewMarket Corp. | 51,777 | ||||||
1,466 | Newmont Mining Corp. | 49,565 | ||||||
804 | Nucor Corp. | 49,309 | ||||||
2,435 | Owens-Illinois, Inc.(b) | 53,132 | ||||||
533 | Packaging Corp. of America | 52,650 | ||||||
3,905 | Platform Specialty Products Corp.(b) | 55,334 | ||||||
621 | Reliance Steel & Aluminum Co. | 48,947 | ||||||
734 | Royal Gold, Inc. | 51,879 | ||||||
906 | RPM International, Inc. | 47,619 | ||||||
534 | Scotts Miracle-Gro Co. (The) | 51,584 | ||||||
1,084 | Sealed Air Corp. | 47,718 | ||||||
819 | Silgan Holdings, Inc. | 49,648 | ||||||
918 | Sonoco Products Co. | 48,021 | ||||||
1,354 | Southern Copper Corp. (Peru) | 47,891 | ||||||
1,428 | Steel Dynamics, Inc. | 51,608 | ||||||
6,642 | Tahoe Resources, Inc. | 53,535 | ||||||
1,449 | United States Steel Corp. | 32,342 | ||||||
444 | Valspar Corp. (The) | 49,923 | ||||||
2,148 | Valvoline, Inc.(c) | 47,793 | ||||||
427 | Vulcan Materials Co. | 51,616 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Materials (continued) | ||||||||
704 | W.R. Grace & Co. | $ | 49,083 | |||||
755 | Westlake Chemical Corp. | 46,999 | ||||||
931 | WestRock Co. | 49,864 | ||||||
|
| |||||||
2,371,264 | ||||||||
|
| |||||||
Real Estate—4.3% | ||||||||
124 | Alexandria Real Estate Equities, Inc. REIT | 13,951 | ||||||
291 | American Campus Communities, Inc. REIT | 13,791 | ||||||
593 | American Homes 4 Rent, Class A REIT | 13,669 | ||||||
312 | Apartment Investment & Management Co., Class A REIT | 13,647 | ||||||
748 | Apple Hospitality REIT, Inc. REIT | 14,010 | ||||||
75 | AvalonBay Communities, Inc. REIT | 14,238 | ||||||
104 | Boston Properties, Inc. REIT | 13,166 | ||||||
857 | Brandywine Realty Trust REIT | 14,543 | ||||||
649 | Brixmor Property Group, Inc. REIT | 12,818 | ||||||
171 | Camden Property Trust REIT | 14,078 | ||||||
553 | Care Capital Properties, Inc. REIT | 14,859 | ||||||
399 | CBRE Group, Inc., Class A(b) | 14,288 | ||||||
1,078 | Colony Northstar, Inc., Class A REIT | 14,089 | ||||||
640 | Columbia Property Trust, Inc. REIT | 14,400 | ||||||
428 | CoreCivic, Inc. REIT | 14,745 | ||||||
412 | Corporate Office Properties Trust REIT | 13,489 | ||||||
522 | CubeSmart REIT | 13,227 | ||||||
274 | CyrusOne, Inc. REIT | 14,971 | ||||||
293 | DCT Industrial Trust, Inc. REIT | 14,814 | ||||||
1,096 | DDR Corp. REIT | 11,848 | ||||||
133 | Digital Realty Trust, Inc. REIT | 15,274 | ||||||
362 | Douglas Emmett, Inc. REIT | 13,637 | ||||||
537 | Duke Realty Corp. REIT | 14,891 | ||||||
669 | Empire State Realty Trust, Inc., Class A REIT | 13,915 | ||||||
190 | EPR Properties REIT | 13,815 | ||||||
36 | Equinix, Inc. REIT | 15,037 | ||||||
444 | Equity Commonwealth REIT(b) | 14,204 | ||||||
176 | Equity LifeStyle Properties, Inc. REIT | 14,240 | ||||||
59 | Essex Property Trust, Inc. REIT | 14,424 | ||||||
185 | Extra Space Storage, Inc. REIT | 13,973 | ||||||
103 | Federal Realty Investment Trust REIT | 13,482 | ||||||
643 | Forest City Realty Trust, Inc., Class A REIT | 14,532 | ||||||
436 | Gaming and Leisure Properties, Inc. REIT | 15,173 | ||||||
606 | GGP, Inc. REIT | 13,096 | ||||||
456 | HCP, Inc. REIT | 14,296 | ||||||
451 | Healthcare Trust of America, Inc., Class A REIT | 14,382 | ||||||
281 | Highwoods Properties, Inc. REIT | 14,297 | ||||||
447 | Hospitality Properties Trust REIT | 14,228 | ||||||
774 | Host Hotels & Resorts, Inc. REIT | 13,893 | ||||||
121 | Howard Hughes Corp. (The)(b) | 14,896 | ||||||
649 | Invitation Homes, Inc. REIT(b) | 13,986 | ||||||
398 | Iron Mountain, Inc. REIT | 13,834 | ||||||
129 | Jones Lang LaSalle, Inc. | 14,817 | ||||||
191 | Kilroy Realty Corp. REIT | 13,471 | ||||||
620 | Kimco Realty Corp. REIT | 12,580 | ||||||
182 | Lamar Advertising Co., Class A REIT | 13,117 | ||||||
362 | Liberty Property Trust REIT | 14,686 | ||||||
165 | Life Storage, Inc. REIT | 12,934 | ||||||
220 | Macerich Co. (The) REIT | 13,735 | ||||||
137 | Mid-America Apartment Communities, Inc. REIT | 13,592 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Real Estate (continued) | ||||||||
318 | National Retail Properties, Inc. REIT | $ | 13,426 | |||||
435 | OMEGA Healthcare Investors, Inc. REIT | 14,355 | ||||||
527 | Outfront Media, Inc. REIT | 13,786 | ||||||
860 | Paramount Group, Inc. REIT | 14,104 | ||||||
531 | Park Hotels & Resorts, Inc. REIT | 13,631 | ||||||
649 | Piedmont Office Realty Trust, Inc., Class A REIT | 14,181 | ||||||
274 | Prologis, Inc. REIT | 14,908 | ||||||
763 | Quality Care Properties, Inc. REIT(b) | 13,238 | ||||||
502 | Rayonier, Inc. REIT | 14,166 | ||||||
481 | Realogy Holdings Corp. | 14,695 | ||||||
234 | Realty Income Corp. REIT | 13,654 | ||||||
207 | Regency Centers Corp. REIT | 13,078 | ||||||
968 | Retail Properties of America, Inc., Class A REIT | 12,913 | ||||||
118 | SBA Communications Corp. REIT(b) | 14,926 | ||||||
695 | Senior Housing Properties Trust REIT | 14,956 | ||||||
130 | SL Green Realty Corp. REIT | 13,641 | ||||||
1,375 | Spirit Realty Capital, Inc. REIT | 12,953 | ||||||
594 | STORE Capital Corp. REIT | 14,250 | ||||||
172 | Sun Communities, Inc. REIT | 14,381 | ||||||
432 | Tanger Factory Outlet Centers, Inc. REIT | 13,474 | ||||||
214 | Taubman Centers, Inc. REIT | 13,386 | ||||||
383 | UDR, Inc. REIT | 14,301 | ||||||
544 | Uniti Group, Inc. REIT | 14,938 | ||||||
221 | Ventas, Inc. REIT | 14,146 | ||||||
1,633 | VEREIT, Inc. REIT | 13,668 | ||||||
136 | Vornado Realty Trust REIT | 13,089 | ||||||
414 | Weingarten Realty Investors REIT | 13,567 | ||||||
200 | Welltower, Inc. REIT | 14,288 | ||||||
417 | Weyerhaeuser Co. REIT | 14,124 | ||||||
226 | WP Carey, Inc. REIT | 14,148 | ||||||
|
| |||||||
1,119,449 | ||||||||
|
| |||||||
Telecommunication Services—2.1% | ||||||||
3,216 | CenturyLink, Inc.(c) | 82,555 | ||||||
37,552 | Frontier Communications Corp.(c) | 70,598 | ||||||
1,299 | Level 3 Communications, Inc.(b) | 78,927 | ||||||
8,615 | Sprint Corp.(b) | 77,793 | ||||||
2,886 | Telephone & Data Systems, Inc. | 79,250 | ||||||
1,990 | United States Cellular Corp.(b) | 77,968 | ||||||
2,201 | Zayo Group Holdings, Inc.(b) | 77,189 | ||||||
|
| |||||||
544,280 | ||||||||
|
| |||||||
Utilities—9.1% | ||||||||
6,517 | AES Corp. (The) | 73,707 | ||||||
1,829 | Alliant Energy Corp. | 71,916 | ||||||
1,301 | Ameren Corp. | 71,152 | ||||||
953 | American Water Works Co., Inc. | 76,011 | ||||||
2,300 | Aqua America, Inc. | 76,107 | ||||||
892 | Atmos Energy Corp. | 72,270 | ||||||
1,697 | Avangrid, Inc. | 73,819 | ||||||
6,794 | Calpine Corp.(b) | 69,299 | ||||||
2,625 | CenterPoint Energy, Inc. | 74,891 | ||||||
1,617 | CMS Energy Corp. | 73,412 | ||||||
932 | Consolidated Edison, Inc. | 73,889 | ||||||
715 | DTE Energy Co. | 74,782 | ||||||
908 | Edison International | 72,613 | ||||||
948 | Entergy Corp. | 72,294 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Utilities (continued) | ||||||||
1,208 | Eversource Energy | $ | 71,755 | |||||
2,337 | FirstEnergy Corp. | 69,970 | ||||||
2,527 | Great Plains Energy, Inc. | 74,774 | ||||||
2,178 | Hawaiian Electric Industries, Inc. | 73,007 | ||||||
2,688 | MDU Resources Group, Inc. | 72,307 | ||||||
1,181 | National Fuel Gas Co. | 65,404 | ||||||
3,068 | NiSource, Inc. | 74,399 | ||||||
4,014 | NRG Energy, Inc. | 67,837 | ||||||
2,050 | OGE Energy Corp. | 71,299 | ||||||
871 | Pinnacle West Capital Corp. | 74,113 | ||||||
1,938 | PPL Corp. | 73,857 | ||||||
1,618 | Public Service Enterprise Group, Inc. | 71,273 | ||||||
1,092 | SCANA Corp. | 72,410 | ||||||
651 | Sempra Energy | 73,576 | ||||||
1,458 | UGI Corp. | 73,133 | ||||||
1,256 | Vectren Corp. | 74,632 | ||||||
1,201 | WEC Energy Group, Inc. | 72,685 | ||||||
1,335 | Westar Energy, Inc. | 69,460 | ||||||
1,634 | Xcel Energy, Inc. | 73,612 | ||||||
|
| |||||||
2,395,665 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $24,401,310) | 26,218,438 | |||||||
|
| |||||||
Money Market Fund—0.3% | ||||||||
72,772 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(e) (Cost $72,772) | 72,772 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $24,474,082)—100.2% | 26,291,210 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—3.7% | ||||||||
982,310 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(e)(f) (Cost $982,310) | 982,310 | ||||||
|
| |||||||
Total Investments (Cost $25,456,392)—103.9% | 27,273,520 | |||||||
Other assets less liabilities—(3.9)% | (1,031,101 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 26,242,419 | ||||||
|
|
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, 2017. |
(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, 2017. |
(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 2I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 71 |
|
Schedule of Investments(a)
PowerShares Russell Midcap Pure Growth Portfolio (PXMG)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Consumer Discretionary—21.1% | ||||||||
14,737 | AMC Networks, Inc., Class A(b) | $ | 879,504 | |||||
869 | Cable One, Inc. | 592,536 | ||||||
5,630 | Carter’s, Inc. | 518,185 | ||||||
2,115 | Delphi Automotive PLC | 170,046 | ||||||
5,691 | Dollar General Corp. | 413,793 | ||||||
9,394 | Dollar Tree, Inc.(b) | 777,541 | ||||||
4,724 | Domino’s Pizza, Inc. | 856,886 | ||||||
8,657 | Interpublic Group of Cos., Inc. (The) | 204,046 | ||||||
9,860 | Lululemon Athletica, Inc.(b) | 512,720 | ||||||
1,086 | Newell Brands, Inc. | 51,846 | ||||||
413 | NVR, Inc.(b) | 871,946 | ||||||
3,142 | O’Reilly Automotive, Inc.(b) | 779,687 | ||||||
3,685 | Panera Bread Co., Class A(b) | 1,152,226 | ||||||
8,777 | Pool Corp. | 1,049,905 | ||||||
7,293 | Ross Stores, Inc. | 474,045 | ||||||
3,000 | Servicemaster Global Holdings, Inc.(b) | 114,300 | ||||||
16,642 | Tempur Sealy International, Inc.(b)(c) | 781,342 | ||||||
8,037 | Tractor Supply Co. | 497,571 | ||||||
4,425 | Ulta Beauty, Inc.(b) | 1,245,372 | ||||||
26,352 | Under Armour, Inc., Class A(b)(c) | 566,304 | ||||||
3,923 | Vail Resorts, Inc. | 775,420 | ||||||
11,203 | Wyndham Worldwide Corp. | 1,067,758 | ||||||
|
| |||||||
14,352,979 | ||||||||
|
| |||||||
Consumer Staples—2.2% | ||||||||
41,129 | Blue Buffalo Pet Products, Inc.(b) | 1,013,830 | ||||||
21,152 | Sprouts Farmers Market, Inc.(b) | 471,901 | ||||||
|
| |||||||
1,485,731 | ||||||||
|
| |||||||
Financials—5.6% | ||||||||
4,477 | Eaton Vance Corp. | 192,198 | ||||||
4,588 | FactSet Research Systems, Inc. | 749,037 | ||||||
7,264 | MarketAxess Holdings, Inc. | 1,398,465 | ||||||
823 | Morningstar, Inc. | 60,186 | ||||||
10,438 | MSCI, Inc. | 1,047,140 | ||||||
7,275 | SEI Investments Co. | 368,915 | ||||||
|
| |||||||
3,815,941 | ||||||||
|
| |||||||
Health Care—24.8% | ||||||||
10,810 | ABIOMED, Inc.(b) | 1,408,759 | ||||||
6,499 | Agios Pharmaceuticals, Inc.(b) | 323,065 | ||||||
12,857 | Akorn, Inc.(b) | 430,067 | ||||||
9,810 | Align Technology, Inc.(b) | 1,320,622 | ||||||
5,397 | Alkermes PLC(b) | 314,375 | ||||||
10,368 | AmerisourceBergen Corp. | 850,694 | ||||||
152 | Aquabounty Technologies, Inc.(b) | 1,181 | ||||||
8,392 | athenahealth, Inc.(b) | 822,500 | ||||||
1,991 | BioMarin Pharmaceutical, Inc.(b) | 190,818 | ||||||
428 | C.R. Bard, Inc. | 131,602 | ||||||
18,182 | Cerner Corp.(b) | 1,177,285 | ||||||
5,340 | Charles River Laboratories International, Inc.(b) | 478,998 | ||||||
6,132 | DexCom, Inc.(b) | 478,051 | ||||||
8,017 | Edwards Lifesciences Corp.(b) | 879,224 | ||||||
1,087 | Henry Schein, Inc.(b) | 188,921 | ||||||
3,590 | Hologic, Inc.(b) | 162,089 | ||||||
7,455 | Illumina, Inc.(b) | 1,378,131 | ||||||
13,015 | Incyte Corp.(b) | 1,617,504 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
8,689 | Inovalon Holdings, Inc., Class A(b)(c) | $ | 106,440 | |||||
10,266 | Intrexon Corp.(b)(c) | 213,944 | ||||||
302 | Intuitive Surgical, Inc.(b) | 252,433 | ||||||
14,537 | Ionis Pharmaceuticals, Inc.(b) | 700,538 | ||||||
1,436 | Mettler-Toledo International, Inc.(b) | 737,271 | ||||||
14,340 | Seattle Genetics, Inc.(b) | 979,422 | ||||||
9,131 | Tenet Healthcare Corp.(b) | 143,083 | ||||||
688 | VCA, Inc.(b) | 63,000 | ||||||
24,136 | Veeva Systems, Inc., Class A(b) | 1,294,172 | ||||||
2,114 | West Pharmaceutical Services, Inc. | 194,551 | ||||||
365 | Zoetis, Inc. | 20,480 | ||||||
|
| |||||||
16,859,220 | ||||||||
|
| |||||||
Industrials—9.8% | ||||||||
2,109 | Acuity Brands, Inc. | 371,395 | ||||||
3,155 | C.H. Robinson Worldwide, Inc. | 229,369 | ||||||
4,552 | Cintas Corp. | 557,483 | ||||||
35,726 | Copart, Inc.(b) | 1,103,933 | ||||||
597 | Equifax, Inc. | 80,780 | ||||||
10,963 | HEICO Corp. | 779,140 | ||||||
6,288 | J.B. Hunt Transport Services, Inc. | 563,782 | ||||||
6,933 | Middleby Corp. (The)(b) | 943,789 | ||||||
6,145 | Nordson Corp. | 769,354 | ||||||
4,750 | Robert Half International, Inc. | 218,738 | ||||||
8,784 | Toro Co. (The) | 570,257 | ||||||
390 | Verisk Analytics, Inc.(b) | 32,296 | ||||||
2,987 | Watsco, Inc. | 414,596 | ||||||
|
| |||||||
6,634,912 | ||||||||
|
| |||||||
Information Technology—32.7% | ||||||||
2,960 | Alliance Data Systems Corp. | 738,905 | ||||||
8,028 | Amphenol Corp., Class A | 580,505 | ||||||
9,181 | Arista Networks, Inc.(b) | 1,282,035 | ||||||
16,712 | Atlassian Corp. PLC, Class A (Australia)(b) | 576,230 | ||||||
13,812 | Black Knight Financial Services, Inc., Class A(b) | 571,817 | ||||||
471 | Broadridge Financial Solutions, Inc. | 32,942 | ||||||
14,681 | CDK Global, Inc. | 954,412 | ||||||
3,380 | Citrix Systems, Inc.(b) | 273,577 | ||||||
2,164 | CoStar Group, Inc.(b) | 521,286 | ||||||
15,380 | CSRA, Inc. | 447,250 | ||||||
397 | DST Systems, Inc. | 48,875 | ||||||
6,756 | Euronet Worldwide, Inc.(b) | 558,181 | ||||||
3,122 | F5 Networks, Inc.(b) | 403,144 | ||||||
57,348 | First Data Corp., Class A(b) | 895,776 | ||||||
3,428 | Fiserv, Inc.(b) | 408,412 | ||||||
1,553 | FleetCor Technologies, Inc.(b) | 219,190 | ||||||
27,097 | Fortinet, Inc.(b) | 1,056,783 | ||||||
4,850 | Gartner, Inc.(b) | 553,336 | ||||||
11,383 | Genpact Ltd. | 277,973 | ||||||
11,383 | Global Payments, Inc. | 930,674 | ||||||
10,286 | GoDaddy, Inc., Class A(b) | 400,331 | ||||||
3,099 | Jack Henry & Associates, Inc. | 300,355 | ||||||
13,339 | Manhattan Associates, Inc.(b) | 622,798 | ||||||
15,303 | Match Group, Inc.(b)(c) | 285,095 | ||||||
7,971 | Microchip Technology, Inc. | 602,448 | ||||||
13,390 | NVIDIA Corp. | 1,396,577 | ||||||
5,704 | Palo Alto Networks, Inc.(b) | 618,371 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 72 |
|
PowerShares Russell Midcap Pure Growth Portfolio (PXMG) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
3,852 | Paychex, Inc. | $ | 228,346 | |||||
11,745 | Red Hat, Inc.(b) | 1,034,500 | ||||||
13,678 | ServiceNow, Inc.(b) | 1,292,297 | ||||||
5,066 | Splunk, Inc.(b) | 325,794 | ||||||
24,358 | Square, Inc., Class A(b) | 444,290 | ||||||
8,286 | Tableau Software, Inc., Class A(b) | 444,792 | ||||||
11,154 | Total System Services, Inc. | 639,236 | ||||||
5,870 | Tyler Technologies, Inc.(b) | 960,273 | ||||||
4,764 | Ultimate Software Group, Inc. (The)(b) | 965,520 | ||||||
3,833 | Workday, Inc., Class A(b) | 335,004 | ||||||
|
| |||||||
22,227,330 | ||||||||
|
| |||||||
Real Estate—3.7% | ||||||||
50,530 | Colony Northstar, Inc., Class A REIT | 660,427 | ||||||
2,436 | Equinix, Inc. REIT | 1,017,517 | ||||||
4,554 | Extra Space Storage, Inc. REIT | 343,964 | ||||||
15,082 | Gaming and Leisure Properties, Inc. REIT | 524,854 | ||||||
|
| |||||||
2,546,762 | ||||||||
|
| |||||||
Telecommunication Services—0.1% | ||||||||
1,377 | Zayo Group Holdings, Inc.(b) | 48,291 | ||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $57,403,327) | 67,971,166 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
74,905 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $74,905) | 74,905 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $57,478,232)—100.1% | 68,046,071 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—2.9% | ||||||||
1,988,851 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $1,988,851) | 1,988,851 | ||||||
|
| |||||||
Total Investments (Cost $59,467,083)—103.0% | 70,034,922 | |||||||
Other assets less liabilities—(3.0)% | (2,067,820 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 67,967,102 | ||||||
|
|
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, 2017. |
(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, 2017. |
(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 2I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 73 |
|
Schedule of Investments(a)
PowerShares Russell Midcap Pure Value Portfolio (PXMV)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Consumer Discretionary—5.0% | ||||||||
7,891 | Best Buy Co., Inc. | $ | 408,833 | |||||
1,262 | GameStop Corp., Class A | 28,635 | ||||||
7,708 | Garmin Ltd. | 391,875 | ||||||
227 | Graham Holdings Co., Class B | 136,586 | ||||||
31,037 | J.C. Penney Co., Inc.(b)(c) | 166,979 | ||||||
4,734 | John Wiley & Sons, Inc., Class A | 249,482 | ||||||
1,387 | Liberty Broadband Corp., Class C(c) | 126,439 | ||||||
58,759 | News Corp., Class A | 747,414 | ||||||
3,428 | Penske Automotive Group, Inc. | 163,550 | ||||||
1,946 | PVH Corp. | 196,604 | ||||||
83,219 | Staples, Inc. | 813,049 | ||||||
|
| |||||||
3,429,446 | ||||||||
|
| |||||||
Energy—16.5% | ||||||||
12,160 | Baker Hughes, Inc. | 721,939 | ||||||
10,753 | Cheniere Energy, Inc.(c) | 487,649 | ||||||
30,558 | CONSOL Energy, Inc.(c) | 463,871 | ||||||
21,970 | Diamond Offshore Drilling, Inc.(b)(c) | 316,807 | ||||||
7,108 | Energen Corp.(c) | 369,545 | ||||||
59,761 | Ensco PLC, Class A | 471,514 | ||||||
26,613 | Frank’s International NV(b) | 242,178 | ||||||
7,354 | Helmerich & Payne, Inc. | 445,947 | ||||||
9,569 | Hess Corp. | 467,254 | ||||||
21,978 | HollyFrontier Corp. | 618,461 | ||||||
41,867 | Marathon Oil Corp. | 622,562 | ||||||
13,926 | Murphy Oil Corp. | 364,583 | ||||||
62,910 | Nabors Industries Ltd. | 650,489 | ||||||
9,723 | National Oilwell Varco, Inc. | 340,013 | ||||||
19,219 | Noble Corp. PLC | 92,251 | ||||||
14,940 | Noble Energy, Inc. | 483,010 | ||||||
29,002 | Patterson-UTI Energy, Inc. | 627,748 | ||||||
17,103 | QEP Resources, Inc.(c) | 201,987 | ||||||
33,724 | Superior Energy Services, Inc.(c) | 407,386 | ||||||
13,343 | Targa Resources Corp. | 735,600 | ||||||
78 | Tesoro Corp. | 6,217 | ||||||
60,525 | Transocean Ltd.(c) | 667,591 | ||||||
100,852 | Weatherford International PLC(b)(c) | 581,916 | ||||||
37,430 | Whiting Petroleum Corp.(c) | 310,669 | ||||||
45,320 | WPX Energy, Inc.(c) | 540,668 | ||||||
|
| |||||||
11,237,855 | ||||||||
|
| |||||||
Financials—29.0% | ||||||||
35,811 | Agnc Investment Corp. REIT | 754,538 | ||||||
1,212 | American National Insurance Co. | 141,707 | ||||||
73,383 | Annaly Capital Management, Inc. REIT | 866,653 | ||||||
1,805 | Arch Capital Group Ltd.(c) | 175,031 | ||||||
1,958 | Aspen Insurance Holdings Ltd. (Bermuda) | 102,501 | ||||||
13,823 | Associated Banc-Corp. | 344,193 | ||||||
55 | Assurant, Inc. | 5,293 | ||||||
29,178 | Assured Guaranty Ltd. | 1,112,557 | ||||||
2,484 | Bank of Hawaii Corp. | 202,396 | ||||||
2,317 | BankUnited, Inc. | 81,767 | ||||||
9,959 | BOK Financial Corp. | 839,444 | ||||||
50,044 | Chimera Investment Corp. REIT | 1,018,896 | ||||||
19,315 | CIT Group, Inc.(b) | 894,478 | ||||||
15,529 | Comerica, Inc. | 1,097,900 | ||||||
227 | Commerce Bancshares, Inc. | 12,474 | ||||||
5,039 | Cullen/Frost Bankers, Inc. | 475,631 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
6,668 | E*TRADE Financial Corp.(c) | $ | 230,380 | |||||
5,606 | East West Bancorp, Inc. | 304,238 | ||||||
39,445 | Fifth Third Bancorp | 963,641 | ||||||
1,810 | First American Financial Corp. | 78,572 | ||||||
12,423 | Hartford Financial Services Group, Inc. (The) | 600,776 | ||||||
3,937 | Huntington Bancshares, Inc. | 50,630 | ||||||
2,707 | KeyCorp | 49,376 | ||||||
903 | M&T Bank Corp. | 140,335 | ||||||
106,266 | MFA Financial, Inc. REIT | 883,071 | ||||||
19,014 | Navient Corp. | 289,013 | ||||||
45,973 | New York Community Bancorp, Inc. | 610,981 | ||||||
32,028 | Old Republic International Corp. | 662,339 | ||||||
14,681 | PacWest Bancorp | 725,095 | ||||||
24,886 | Popular, Inc. | 1,042,972 | ||||||
44 | Principal Financial Group, Inc. | 2,866 | ||||||
4,766 | ProAssurance Corp. | 295,015 | ||||||
54,175 | Regions Financial Corp. | 744,906 | ||||||
1,305 | RenaissanceRe Holdings Ltd. (Bermuda) | 185,532 | ||||||
68,092 | SLM Corp.(c) | 853,874 | ||||||
14,279 | SunTrust Banks, Inc. | 811,190 | ||||||
87,181 | Two Harbors Investment Corp. REIT | 870,938 | ||||||
7,236 | Validus Holdings Ltd. | 400,006 | ||||||
961 | White Mountains Insurance Group Ltd. | 825,441 | ||||||
|
| |||||||
19,746,646 | ||||||||
|
| |||||||
Health Care—1.9% | ||||||||
3,104 | Bio-Rad Laboratories, Inc., Class A(c) | 677,479 | ||||||
47,146 | Endo International PLC(c) | 536,050 | ||||||
1,209 | Perrigo Co. PLC | 89,393 | ||||||
|
| |||||||
1,302,922 | ||||||||
|
| |||||||
Industrials—10.2% | ||||||||
4,611 | AGCO Corp. | 295,058 | ||||||
27,597 | Arconic, Inc. | 754,226 | ||||||
6 | Fluor Corp. | 308 | ||||||
12,435 | ITT, Inc. | 523,886 | ||||||
9,829 | Jacobs Engineering Group, Inc. | 539,809 | ||||||
45,473 | KBR, Inc. | 638,896 | ||||||
2,515 | Macquarie Infrastructure Corp. | 204,646 | ||||||
4,308 | Oshkosh Corp. | 298,932 | ||||||
267 | Pentair PLC (United Kingdom) | 17,224 | ||||||
9,052 | Regal Beloit Corp. | 713,750 | ||||||
5,852 | Ryder System, Inc. | 397,409 | ||||||
16,743 | Terex Corp. | 585,670 | ||||||
18,332 | Timken Co. (The) | 884,519 | ||||||
12,466 | United Continental Holdings, Inc.(c) | 875,238 | ||||||
3,248 | WESCO International, Inc.(c) | 197,966 | ||||||
|
| |||||||
6,927,537 | ||||||||
|
| |||||||
Information Technology—4.7% | ||||||||
8,824 | Avnet, Inc. | 341,400 | ||||||
27,005 | Brocade Communications Systems, Inc. | 339,453 | ||||||
10,122 | CA, Inc. | 332,305 | ||||||
10,296 | Conduent, Inc.(c) | 167,928 | ||||||
8,788 | EchoStar Corp., Class A(c) | 505,837 | ||||||
10,309 | First Solar, Inc.(b)(c) | 304,631 | ||||||
16,087 | Marvell Technology Group Ltd. (Bermuda) | 241,627 | ||||||
29,206 | SunPower Corp.(b)(c) | 202,690 | ||||||
2,669 | Western Digital Corp. | 237,728 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 74 |
|
PowerShares Russell Midcap Pure Value Portfolio (PXMV) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
51,481 | Xerox Corp. | $ | 370,148 | |||||
66,417 | Zynga, Inc., Class A(c) | 191,945 | ||||||
|
| |||||||
3,235,692 | ||||||||
|
| |||||||
Materials—3.5% | ||||||||
9,163 | Alcoa Corp. | 309,068 | ||||||
1,540 | Ashland Global Holdings, Inc. | 190,190 | ||||||
10,203 | CF Industries Holdings, Inc. | 272,828 | ||||||
24,387 | Huntsman Corp. | 604,066 | ||||||
6,645 | Mosaic Co. (The) | 178,950 | ||||||
14,748 | United States Steel Corp. | 329,176 | ||||||
3,617 | Westlake Chemical Corp. | 225,158 | ||||||
5,466 | WestRock Co. | 292,759 | ||||||
|
| |||||||
2,402,195 | ||||||||
|
| |||||||
Real Estate—11.6% | ||||||||
33,446 | American Homes 4 Rent, Class A REIT | 770,930 | ||||||
783 | AvalonBay Communities, Inc. REIT | 148,645 | ||||||
20,773 | Brandywine Realty Trust REIT | 352,518 | ||||||
6,254 | CoreCivic, Inc. REIT | 215,450 | ||||||
23,001 | Corporate Office Properties Trust REIT | 753,053 | ||||||
8,506 | DCT Industrial Trust, Inc. REIT | 430,064 | ||||||
30,404 | DDR Corp. REIT | 328,667 | ||||||
20,089 | Duke Realty Corp. REIT | 557,068 | ||||||
1,376 | EPR Properties REIT | 100,049 | ||||||
18,596 | Equity Commonwealth REIT(c) | 594,886 | ||||||
34,799 | Host Hotels & Resorts, Inc. REIT | 624,642 | ||||||
11,224 | Liberty Property Trust REIT | 455,358 | ||||||
1,704 | Macerich Co. (The) REIT | 106,381 | ||||||
2,129 | Mid-America Apartment Communities, Inc. REIT | 211,218 | ||||||
20,748 | Paramount Group, Inc. REIT | 340,267 | ||||||
2,264 | Prologis, Inc. REIT | 123,184 | ||||||
19,508 | Rayonier, Inc. REIT | 550,516 | ||||||
1,897 | SL Green Realty Corp. REIT | 199,052 | ||||||
5,008 | Sun Communities, Inc. REIT | 418,719 | ||||||
12,142 | Uniti Group, Inc. REIT | 333,419 | ||||||
30,382 | VEREIT, Inc. REIT | 254,297 | ||||||
796 | Weingarten Realty Investors REIT | 26,085 | ||||||
|
| |||||||
7,894,468 | ||||||||
|
| |||||||
Telecommunication Services—2.8% | ||||||||
5,073 | CenturyLink, Inc.(b) | 130,224 | ||||||
117,377 | Frontier Communications Corp.(b) | 220,669 | ||||||
56,729 | Sprint Corp.(c) | 512,263 | ||||||
15,895 | Telephone & Data Systems, Inc. | 436,476 | ||||||
15,407 | United States Cellular Corp.(c) | 603,646 | ||||||
|
| |||||||
1,903,278 | ||||||||
|
| |||||||
Utilities—14.8% | ||||||||
28,227 | AES Corp. (The) | 319,247 | ||||||
8,794 | Alliant Energy Corp. | 345,780 | ||||||
13,097 | Ameren Corp. | 716,275 | ||||||
548 | American Water Works Co., Inc. | 43,709 | ||||||
7,590 | Atmos Energy Corp. | 614,942 | ||||||
2,276 | CenterPoint Energy, Inc. | 64,934 | ||||||
10,192 | Consolidated Edison, Inc. | 808,022 | ||||||
1,191 | DTE Energy Co. | 124,567 | ||||||
10,798 | Edison International | 863,516 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Utilities (continued) | ||||||||
6,924 | Entergy Corp. | $ | 528,024 | |||||
11,474 | Eversource Energy | 681,556 | ||||||
22,472 | FirstEnergy Corp. | 672,812 | ||||||
16,787 | Hawaiian Electric Industries, Inc. | 562,700 | ||||||
2,838 | National Fuel Gas Co. | 157,168 | ||||||
9,781 | Pinnacle West Capital Corp. | 832,265 | ||||||
12,270 | PPL Corp. | 467,610 | ||||||
11,647 | Public Service Enterprise Group, Inc. | 513,050 | ||||||
10,339 | SCANA Corp. | 685,579 | ||||||
945 | Sempra Energy | 106,804 | ||||||
2,483 | UGI Corp. | 124,547 | ||||||
1,956 | WEC Energy Group, Inc. | 118,377 | ||||||
16,792 | Xcel Energy, Inc. | 756,480 | ||||||
|
| |||||||
10,107,964 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $66,852,200) | 68,188,003 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
53,914 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $53,914) | 53,914 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $66,906,114)—100.1% | 68,241,917 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—2.6% | ||||||||
1,807,860 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $1,807,860) | 1,807,860 | ||||||
|
| |||||||
Total Investments (Cost $68,713,974)—102.7% | 70,049,777 | |||||||
Other assets less liabilities—(2.7)% | (1,846,467 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 68,203,310 | ||||||
|
|
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, 2017. |
(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, 2017. |
(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 2I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 75 |
|
Schedule of Investments(a)
PowerShares Russell Top 200 Equal Weight Portfolio (EQWL)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Consumer Discretionary—12.9% | ||||||||
227 | Amazon.com, Inc.(b) | $ | 209,973 | |||||
3,302 | Carnival Corp. | 203,964 | ||||||
2,896 | CBS Corp., Class B | 192,758 | ||||||
597 | Charter Communications, Inc., Class A(b) | 206,060 | ||||||
5,194 | Comcast Corp., Class A | 203,553 | ||||||
3,124 | DISH Network Corp., Class A(b) | 201,310 | ||||||
16,562 | Ford Motor Co. | 189,966 | ||||||
5,642 | General Motors Co. | 195,439 | ||||||
1,307 | Home Depot, Inc. (The) | 204,023 | ||||||
3,477 | Las Vegas Sands Corp. | 205,108 | ||||||
2,344 | Lowe’s Cos., Inc. | 198,959 | ||||||
1,498 | McDonald’s Corp. | 209,615 | ||||||
1,363 | Netflix, Inc.(b) | 207,449 | ||||||
3,490 | NIKE, Inc., Class B | 193,381 | ||||||
111 | Priceline Group, Inc. (The)(b) | 204,997 | ||||||
3,461 | Starbucks Corp. | 207,868 | ||||||
3,638 | Target Corp. | 203,182 | ||||||
759 | Tesla, Inc.(b) | 238,379 | ||||||
1,988 | Time Warner, Inc. | 197,349 | ||||||
2,464 | TJX Cos., Inc. (The) | 193,769 | ||||||
6,170 | Twenty-First Century Fox, Inc., Class A | 188,432 | ||||||
3,587 | VF Corp. | 195,958 | ||||||
1,722 | Walt Disney Co. (The) | 199,063 | ||||||
7,343 | Yum China Holdings, Inc.(b) | 250,543 | ||||||
3,059 | Yum! Brands, Inc. | 201,129 | ||||||
|
| |||||||
5,102,227 | ||||||||
|
| |||||||
Consumer Staples—10.3% | ||||||||
2,611 | Altria Group, Inc. | 187,418 | ||||||
4,237 | Archer-Daniels-Midland Co. | 193,843 | ||||||
4,584 | Coca-Cola Co. (The) | 197,800 | ||||||
2,615 | Colgate-Palmolive Co. | 188,385 | ||||||
1,188 | Constellation Brands, Inc., Class A | 204,977 | ||||||
1,157 | Costco Wholesale Corp. | 205,391 | ||||||
2,468 | CVS Health Corp. | 203,462 | ||||||
2,234 | Estee Lauder Cos., Inc. (The), Class A | 194,671 | ||||||
3,256 | General Mills, Inc. | 187,252 | ||||||
1,454 | Kimberly-Clark Corp. | 188,656 | ||||||
2,101 | Kraft Heinz Co. (The) | 189,909 | ||||||
6,606 | Kroger Co. (The) | 195,868 | ||||||
4,391 | Mondelez International, Inc., Class A | 197,727 | ||||||
4,151 | Monster Beverage Corp.(b) | 188,372 | ||||||
1,729 | PepsiCo, Inc. | 195,861 | ||||||
1,711 | Philip Morris International, Inc. | 189,647 | ||||||
2,129 | Procter & Gamble Co. (The) | 185,925 | ||||||
3,104 | Reynolds American, Inc. | 200,208 | ||||||
3,671 | Sysco Corp. | 194,086 | ||||||
2,329 | Walgreens Boots Alliance, Inc. | 201,552 | ||||||
2,766 | Wal-Mart Stores, Inc. | 207,948 | ||||||
|
| |||||||
4,098,958 | ||||||||
|
| |||||||
Energy—6.2% | ||||||||
3,179 | Anadarko Petroleum Corp. | 181,267 | ||||||
3,859 | Apache Corp. | 187,702 | ||||||
1,791 | Chevron Corp. | 191,100 | ||||||
4,345 | ConocoPhillips | 208,169 | ||||||
2,039 | EOG Resources, Inc. | 188,607 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Energy (continued) | ||||||||
2,361 | Exxon Mobil Corp. | $ | 192,776 | |||||
3,889 | Halliburton Co. | 178,427 | ||||||
9,139 | Kinder Morgan, Inc. | 188,537 | ||||||
3,066 | Occidental Petroleum Corp. | 188,682 | ||||||
2,463 | Phillips 66 | 195,956 | ||||||
1,065 | Pioneer Natural Resources Co. | 184,234 | ||||||
2,488 | Schlumberger Ltd. | 180,604 | ||||||
2,880 | Valero Energy Corp. | 186,077 | ||||||
|
| |||||||
2,452,138 | ||||||||
|
| |||||||
Financials—15.1% | ||||||||
2,684 | Aflac, Inc. | 200,978 | ||||||
2,379 | Allstate Corp. (The) | 193,389 | ||||||
2,483 | American Express Co. | 196,778 | ||||||
3,151 | American International Group, Inc. | 191,927 | ||||||
1,645 | Aon PLC | 197,137 | ||||||
8,378 | Bank of America Corp. | 195,542 | ||||||
4,176 | Bank of New York Mellon Corp. (The) | 196,523 | ||||||
4,361 | BB&T Corp. | 188,308 | ||||||
1,137 | Berkshire Hathaway, Inc., Class B(b) | 187,844 | ||||||
515 | BlackRock, Inc. | 198,054 | ||||||
2,307 | Capital One Financial Corp. | 185,437 | ||||||
4,811 | Charles Schwab Corp. (The) | 186,907 | ||||||
1,414 | Chubb Ltd. | 194,071 | ||||||
3,330 | Citigroup, Inc. | 196,870 | ||||||
1,621 | CME Group, Inc. | 188,344 | ||||||
2,868 | Discover Financial Services | 179,508 | ||||||
4,662 | Franklin Resources, Inc. | 200,979 | ||||||
833 | Goldman Sachs Group, Inc. (The) | 186,425 | ||||||
3,228 | Intercontinental Exchange, Inc. | 194,326 | ||||||
2,212 | JPMorgan Chase & Co. | 192,444 | ||||||
2,590 | Marsh & McLennan Cos., Inc. | 191,997 | ||||||
3,713 | MetLife, Inc. | 192,371 | ||||||
4,539 | Morgan Stanley | 196,856 | ||||||
1,620 | PNC Financial Services Group, Inc. (The) | 193,995 | ||||||
1,832 | Prudential Financial, Inc. | 196,079 | ||||||
1,497 | S&P Global, Inc. | 200,882 | ||||||
2,501 | State Street Corp. | 209,834 | ||||||
4,431 | Thomson Reuters Corp. | 201,300 | ||||||
1,594 | Travelers Cos., Inc. (The) | 193,926 | ||||||
3,676 | U.S. Bancorp | 188,505 | ||||||
3,498 | Wells Fargo & Co. | 188,332 | ||||||
|
| |||||||
6,005,868 | ||||||||
|
| |||||||
Health Care—16.5% | ||||||||
4,317 | Abbott Laboratories | 188,394 | ||||||
2,944 | AbbVie, Inc. | 194,127 | ||||||
1,512 | Aetna, Inc. | 204,226 | ||||||
1,608 | Alexion Pharmaceuticals, Inc.(b) | 205,470 | ||||||
821 | Allergan PLC | 200,209 | ||||||
1,165 | Amgen, Inc. | 190,268 | ||||||
1,169 | Anthem, Inc. | 207,953 | ||||||
3,740 | Baxter International, Inc. | 208,243 | ||||||
1,052 | Becton, Dickinson and Co. | 196,692 | ||||||
702 | Biogen, Inc.(b) | 190,389 | ||||||
3,830 | Bioverativ, Inc.(b) | 225,242 | ||||||
7,970 | Boston Scientific Corp.(b) | 210,249 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 76 |
|
PowerShares Russell Top 200 Equal Weight Portfolio (EQWL) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
3,465 | Bristol-Myers Squibb Co. | $ | 194,213 | |||||
2,383 | Cardinal Health, Inc. | 172,982 | ||||||
1,568 | Celgene Corp.(b) | 194,510 | ||||||
1,296 | Cigna Corp. | 202,656 | ||||||
2,240 | Danaher Corp. | 186,659 | ||||||
2,290 | Eli Lilly & Co. | 187,917 | ||||||
3,020 | Express Scripts Holding Co.(b) | 185,247 | ||||||
2,865 | Gilead Sciences, Inc. | 196,396 | ||||||
2,324 | HCA Holdings, Inc.(b) | 195,704 | ||||||
920 | Humana, Inc. | 204,222 | ||||||
1,535 | Johnson & Johnson | 189,527 | ||||||
1,326 | McKesson Corp. | 183,373 | ||||||
2,391 | Medtronic PLC | 198,668 | ||||||
3,055 | Merck & Co., Inc. | 190,418 | ||||||
4,646 | Mylan NV(b) | 173,528 | ||||||
5,637 | Pfizer, Inc. | 191,207 | ||||||
530 | Regeneron Pharmaceuticals, Inc.(b) | 205,900 | ||||||
1,469 | Stryker Corp. | 200,328 | ||||||
1,251 | Thermo Fisher Scientific, Inc. | 206,828 | ||||||
1,170 | UnitedHealth Group, Inc. | 204,610 | ||||||
2,171 | Vertex Pharmaceuticals, Inc.(b) | 256,829 | ||||||
|
| |||||||
6,543,184 | ||||||||
|
| |||||||
Industrials—11.6% | ||||||||
1,006 | 3M Co. | 197,005 | ||||||
1,090 | Boeing Co. (The) | 201,465 | ||||||
2,096 | Caterpillar, Inc. | 214,337 | ||||||
4,192 | CSX Corp. | 213,121 | ||||||
1,765 | Deere & Co. | 196,992 | ||||||
4,209 | Delta Air Lines, Inc. | 191,257 | ||||||
2,655 | Eaton Corp. PLC | 200,824 | ||||||
3,277 | Emerson Electric Co. | 197,537 | ||||||
1,021 | FedEx Corp. | 193,684 | ||||||
3,302 | Fortive Corp. | 208,884 | ||||||
1,019 | General Dynamics Corp. | 197,472 | ||||||
6,525 | General Electric Co. | 189,160 | ||||||
1,540 | Honeywell International, Inc. | 201,955 | ||||||
1,448 | Illinois Tool Works, Inc. | 199,954 | ||||||
717 | Lockheed Martin Corp. | 193,196 | ||||||
1,748 | Norfolk Southern Corp. | 205,372 | ||||||
808 | Northrop Grumman Corp. | 198,736 | ||||||
1,262 | Raytheon Co. | 195,875 | ||||||
3,691 | Southwest Airlines Co. | 207,508 | ||||||
1,860 | Union Pacific Corp. | 208,246 | ||||||
1,830 | United Parcel Service, Inc., Class B | 196,652 | ||||||
1,728 | United Technologies Corp. | 205,615 | ||||||
2,664 | Waste Management, Inc. | 193,886 | ||||||
|
| |||||||
4,608,733 | ||||||||
|
| |||||||
Information Technology—15.1% | ||||||||
1,600 | Accenture PLC, Class A | 194,080 | ||||||
3,962 | Activision Blizzard, Inc. | 207,014 | ||||||
1,524 | Adobe Systems, Inc.(b) | 203,820 | ||||||
236 | Alphabet, Inc., Class C(b) | 213,807 | ||||||
1,372 | Apple, Inc. | 197,088 | ||||||
4,975 | Applied Materials, Inc. | 202,035 | ||||||
1,867 | Automatic Data Processing, Inc. | 195,083 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
891 | Broadcom Ltd. | $ | 196,742 | |||||
5,691 | Cisco Systems, Inc. | 193,892 | ||||||
3,290 | Cognizant Technology Solutions Corp., Class A(b) | 198,157 | ||||||
7,070 | Corning, Inc. | 203,969 | ||||||
3,064 | Dell Technologies, Inc., Class V(b) | 205,625 | ||||||
728 | Dxc Technology Co.(b) | 54,848 | ||||||
5,766 | eBay, Inc.(b) | 192,642 | ||||||
1,386 | Facebook, Inc., Class A(b) | 208,247 | ||||||
8,478 | Hewlett Packard Enterprise Co. | 157,945 | ||||||
11,231 | HP, Inc. | 211,367 | ||||||
5,480 | Intel Corp. | 198,102 | ||||||
1,105 | International Business Machines Corp. | 177,120 | ||||||
1,611 | Intuit, Inc. | 201,713 | ||||||
1,732 | Mastercard, Inc., Class A | 201,466 | ||||||
2,980 | Microsoft Corp. | 204,011 | ||||||
4,300 | Oracle Corp. | 193,328 | ||||||
4,481 | PayPal Holdings, Inc.(b) | 213,833 | ||||||
3,402 | QUALCOMM, Inc. | 182,823 | ||||||
2,372 | salesforce.com, inc.(b) | 204,277 | ||||||
2,396 | Texas Instruments, Inc. | 189,715 | ||||||
6,456 | Versum Materials, Inc. | 206,721 | ||||||
2,175 | Visa, Inc., Class A | 198,404 | ||||||
2,121 | VMware, Inc., Class A(b) | 199,629 | ||||||
4,147 | Yahoo!, Inc.(b) | 199,927 | ||||||
|
| |||||||
6,007,430 | ||||||||
|
| |||||||
Materials—5.0% | ||||||||
7,230 | Advansix, Inc.(b) | 197,090 | ||||||
1,411 | Air Products & Chemicals, Inc. | 198,246 | ||||||
3,028 | Dow Chemical Co. (The) | 190,158 | ||||||
2,399 | E.I. du Pont de Nemours & Co. | 191,320 | ||||||
1,557 | Ecolab, Inc. | 200,993 | ||||||
2,189 | LyondellBasell Industries NV, Class A | 185,540 | ||||||
1,707 | Monsanto Co. | 199,053 | ||||||
1,847 | PPG Industries, Inc. | 202,874 | ||||||
1,643 | Praxair, Inc. | 205,342 | ||||||
623 | Sherwin-Williams Co. (The) | 208,506 | ||||||
|
| |||||||
1,979,122 | ||||||||
|
| |||||||
Real Estate—2.5% | ||||||||
1,625 | American Tower Corp. REIT | 204,653 | ||||||
2,078 | Crown Castle International Corp. REIT | 196,579 | ||||||
3,061 | Equity Residential REIT | 197,679 | ||||||
855 | Public Storage REIT | 179,020 | ||||||
1,153 | Simon Property Group, Inc. REIT | 190,545 | ||||||
|
| |||||||
968,476 | ||||||||
|
| |||||||
Telecommunication Services—1.4% | ||||||||
4,641 | AT&T, Inc. | 183,923 | ||||||
3,062 | T-Mobile US, Inc.(b) | 205,981 | ||||||
3,894 | Verizon Communications, Inc. | 178,773 | ||||||
|
| |||||||
568,677 | ||||||||
|
| |||||||
Utilities—3.4% | ||||||||
2,866 | American Electric Power Co., Inc. | 194,401 | ||||||
2,469 | Dominion Resources, Inc. | 191,175 | ||||||
2,338 | Duke Energy Corp. | 192,885 | ||||||
5,375 | Exelon Corp. | 186,136 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 77 |
|
PowerShares Russell Top 200 Equal Weight Portfolio (EQWL) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Utilities (continued) | ||||||||
1,463 | NextEra Energy, Inc. | $ | 195,398 | |||||
2,862 | PG&E Corp. | 191,897 | ||||||
3,838 | Southern Co. (The) | 191,133 | ||||||
|
| |||||||
1,343,025 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $34,942,852) | 39,677,838 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
46,473 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(c) (Cost $46,473) | 46,473 | ||||||
|
| |||||||
Total Investments (Cost $34,989,325)—100.1% | 39,724,311 | |||||||
Other assets less liabilities—(0.1)% | (20,880 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 39,703,431 | ||||||
|
|
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, 2017. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 78 |
|
Schedule of Investments(a)
PowerShares Russell Top 200 Pure Growth Portfolio (PXLG)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—99.9% | ||||||||
Consumer Discretionary—30.3% | ||||||||
5,015 | Amazon.com, Inc.(b) | $ | 4,638,825 | |||||
20,548 | CBS Corp., Class B | 1,367,675 | ||||||
2,827 | Charter Communications, Inc., Class A(b) | 975,767 | ||||||
17,247 | Home Depot, Inc. (The) | 2,692,257 | ||||||
16,232 | Las Vegas Sands Corp. | 957,526 | ||||||
38,201 | Lowe’s Cos., Inc. | 3,242,501 | ||||||
3,872 | McDonald’s Corp. | 541,809 | ||||||
35,126 | Netflix, Inc.(b) | 5,346,177 | ||||||
55,874 | NIKE, Inc., Class B | 3,095,978 | ||||||
2,867 | Priceline Group, Inc. (The)(b) | 5,294,833 | ||||||
59,681 | Starbucks Corp. | 3,584,441 | ||||||
16,317 | Tesla, Inc.(b)(c) | 5,124,680 | ||||||
35,420 | TJX Cos., Inc. (The) | 2,785,429 | ||||||
22,696 | VF Corp. | 1,239,882 | ||||||
9,496 | Walt Disney Co. (The) | 1,097,738 | ||||||
22,912 | Yum China Holdings, Inc.(b) | 781,757 | ||||||
22,885 | Yum! Brands, Inc. | 1,504,689 | ||||||
|
| |||||||
44,271,964 | ||||||||
|
| |||||||
Consumer Staples—9.3% | ||||||||
1,425 | Altria Group, Inc. | 102,286 | ||||||
16,732 | Constellation Brands, Inc., Class A | 2,886,939 | ||||||
11,358 | Costco Wholesale Corp. | 2,016,272 | ||||||
23,983 | Estee Lauder Cos., Inc. (The), Class A | 2,089,879 | ||||||
2,807 | General Mills, Inc. | 161,431 | ||||||
66,367 | Kroger Co. (The) | 1,967,782 | ||||||
61,983 | Monster Beverage Corp.(b) | 2,812,788 | ||||||
29,247 | Sysco Corp. | 1,546,289 | ||||||
|
| |||||||
13,583,666 | ||||||||
|
| |||||||
Financials—1.8% | ||||||||
6,562 | Aon PLC | 786,390 | ||||||
14,644 | Marsh & McLennan Cos., Inc. | 1,085,560 | ||||||
5,418 | S&P Global, Inc. | 727,041 | ||||||
|
| |||||||
2,598,991 | ||||||||
|
| |||||||
Health Care—17.8% | ||||||||
49,027 | AbbVie, Inc. | 3,232,840 | ||||||
10,949 | Alexion Pharmaceuticals, Inc.(b) | 1,399,063 | ||||||
8,816 | Amgen, Inc. | 1,439,829 | ||||||
13,127 | Becton, Dickinson and Co. | 2,454,355 | ||||||
7,459 | Biogen, Inc.(b) | 2,022,956 | ||||||
3,720 | Bioverativ, Inc.(b) | 218,773 | ||||||
30,171 | Boston Scientific Corp.(b) | 795,911 | ||||||
5,052 | Bristol-Myers Squibb Co. | 283,165 | ||||||
34,178 | Celgene Corp.(b) | 4,239,781 | ||||||
2,940 | Eli Lilly & Co. | 241,257 | ||||||
12,563 | Gilead Sciences, Inc. | 861,194 | ||||||
4,321 | McKesson Corp. | 597,551 | ||||||
9,172 | Regeneron Pharmaceuticals, Inc.(b) | 3,563,230 | ||||||
12,025 | Stryker Corp. | 1,639,849 | ||||||
1,182 | UnitedHealth Group, Inc. | 206,708 | ||||||
24,260 | Vertex Pharmaceuticals, Inc.(b) | 2,869,958 | ||||||
|
| |||||||
26,066,420 | ||||||||
|
| |||||||
Industrials—7.0% | ||||||||
6,247 | 3M Co. | 1,223,350 | ||||||
20,666 | Boeing Co. (The) | 3,819,697 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
1,667 | FedEx Corp. | $ | 316,230 | |||||
2,399 | Honeywell International, Inc. | 314,605 | ||||||
3,532 | Illinois Tool Works, Inc. | 487,734 | ||||||
5,221 | Lockheed Martin Corp. | 1,406,798 | ||||||
1,929 | Northrop Grumman Corp. | 474,457 | ||||||
21,872 | Southwest Airlines Co. | 1,229,644 | ||||||
8,747 | United Parcel Service, Inc., Class B | 939,952 | ||||||
|
| |||||||
10,212,467 | ||||||||
|
| |||||||
Information Technology—26.1% | ||||||||
17,963 | Accenture PLC, Class A | 2,178,912 | ||||||
21,407 | Activision Blizzard, Inc. | 1,118,516 | ||||||
20,041 | Adobe Systems, Inc.(b) | 2,680,283 | ||||||
2,910 | Alphabet, Inc., Class C(b) | 2,636,344 | ||||||
22,198 | Automatic Data Processing, Inc. | 2,319,469 | ||||||
18,281 | Broadcom Ltd. | 4,036,628 | ||||||
18,732 | Cognizant Technology Solutions Corp., Class A(b) | 1,128,228 | ||||||
6,993 | eBay, Inc.(b) | 233,636 | ||||||
23,488 | Facebook, Inc., Class A(b) | 3,529,072 | ||||||
24,342 | Intuit, Inc. | 3,047,862 | ||||||
37,690 | Mastercard, Inc., Class A | 4,384,101 | ||||||
22,698 | Microsoft Corp. | 1,553,905 | ||||||
21,853 | PayPal Holdings, Inc.(b) | 1,042,825 | ||||||
43,730 | salesforce.com, inc.(b) | 3,766,028 | ||||||
11,114 | Texas Instruments, Inc. | 880,006 | ||||||
40,840 | Visa, Inc., Class A | 3,725,425 | ||||||
|
| |||||||
38,261,240 | ||||||||
|
| |||||||
Materials—3.4% | ||||||||
98 | Advansix, Inc.(b) | 2,671 | ||||||
8,494 | E.I. du Pont de Nemours & Co. | 677,397 | ||||||
10,814 | Ecolab, Inc. | 1,395,979 | ||||||
18,252 | PPG Industries, Inc. | 2,004,800 | ||||||
2,590 | Sherwin-Williams Co. (The) | 866,821 | ||||||
|
| |||||||
4,947,668 | ||||||||
|
| |||||||
Real Estate—4.2% | ||||||||
33,807 | American Tower Corp. REIT | 4,257,653 | ||||||
9,376 | Public Storage REIT | 1,963,147 | ||||||
|
| |||||||
6,220,800 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $125,481,110) | 146,163,216 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
86,282 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $86,282) | 86,282 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $125,567,392)—100.0% | 146,249,498 | |||||||
|
| |||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 79 |
|
PowerShares Russell Top 200 Pure Growth Portfolio (PXLG) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—3.5% | ||||||||
5,088,195 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $5,088,195) | $ | 5,088,195 | |||||
|
| |||||||
Total Investments (Cost $130,655,587)—103.5% | 151,337,693 | |||||||
Other assets less liabilities—(3.5)% | (5,082,069 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 146,255,624 | ||||||
|
|
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, 2017. |
(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, 2017. |
(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 2I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 80 |
|
Schedule of Investments(a)
PowerShares Russell Top 200 Pure Value Portfolio (PXLV)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Consumer Discretionary—3.6% | ||||||||
18,444 | Carnival Corp. | $ | 1,139,285 | |||||
84,504 | Ford Motor Co. | 969,261 | ||||||
15,767 | General Motors Co. | 546,169 | ||||||
|
| |||||||
2,654,715 | ||||||||
|
| |||||||
Consumer Staples—4.4% | ||||||||
28,659 | Archer-Daniels-Midland Co. | 1,311,149 | ||||||
17,231 | Mondelez International, Inc., Class A | 775,912 | ||||||
8,405 | Procter & Gamble Co. (The) | 734,009 | ||||||
5,968 | Wal-Mart Stores, Inc. | 448,674 | ||||||
|
| |||||||
3,269,744 | ||||||||
|
| |||||||
Energy—16.3% | ||||||||
25,204 | Anadarko Petroleum Corp. | 1,437,132 | ||||||
7,005 | Chevron Corp. | 747,434 | ||||||
39,092 | ConocoPhillips | 1,872,898 | ||||||
16,476 | Exxon Mobil Corp. | 1,345,265 | ||||||
2,394 | Halliburton Co. | 109,837 | ||||||
100,622 | Kinder Morgan, Inc. | 2,075,832 | ||||||
1,107 | Occidental Petroleum Corp. | 68,125 | ||||||
21,063 | Phillips 66 | 1,675,772 | ||||||
759 | Pioneer Natural Resources Co. | 131,299 | ||||||
12,019 | Schlumberger Ltd. | 872,459 | ||||||
28,134 | Valero Energy Corp. | 1,817,738 | ||||||
|
| |||||||
12,153,791 | ||||||||
|
| |||||||
Financials—38.9% | ||||||||
13,283 | Aflac, Inc. | 994,631 | ||||||
970 | Allstate Corp. (The) | 78,851 | ||||||
1,318 | American Express Co. | 104,452 | ||||||
16,580 | American International Group, Inc. | 1,009,888 | ||||||
89,007 | Bank of America Corp. | 2,077,423 | ||||||
16,151 | Bank of New York Mellon Corp. (The) | 760,066 | ||||||
23,606 | BB&T Corp. | 1,019,307 | ||||||
3,007 | Berkshire Hathaway, Inc., Class B(b) | 496,786 | ||||||
434 | BlackRock, Inc. | 166,903 | ||||||
8,195 | Capital One Financial Corp. | 658,714 | ||||||
8,126 | Chubb Ltd. | 1,115,294 | ||||||
37,515 | Citigroup, Inc. | 2,217,887 | ||||||
8,272 | CME Group, Inc. | 961,124 | ||||||
26,396 | Franklin Resources, Inc. | 1,137,932 | ||||||
8,806 | Goldman Sachs Group, Inc. (The) | 1,970,783 | ||||||
25,057 | JPMorgan Chase & Co. | 2,179,959 | ||||||
17,416 | MetLife, Inc. | 902,323 | ||||||
56,596 | Morgan Stanley | 2,454,569 | ||||||
19,031 | PNC Financial Services Group, Inc. (The) | 2,278,962 | ||||||
8,249 | Prudential Financial, Inc. | 882,890 | ||||||
14,054 | State Street Corp. | 1,179,131 | ||||||
23,336 | Thomson Reuters Corp. | 1,060,154 | ||||||
6,163 | Travelers Cos., Inc. (The) | 749,791 | ||||||
26,315 | U.S. Bancorp | 1,349,433 | ||||||
24,349 | Wells Fargo & Co. | 1,310,950 | ||||||
|
| |||||||
29,118,203 | ||||||||
|
| |||||||
Health Care—2.2% | ||||||||
6,872 | Abbott Laboratories | 299,894 | ||||||
8,099 | Medtronic PLC | 672,946 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
10,674 | Merck & Co., Inc. | $ | 665,310 | |||||
|
| |||||||
1,638,150 | ||||||||
|
| |||||||
Industrials—9.5% | ||||||||
16,221 | Caterpillar, Inc. | 1,658,760 | ||||||
41,788 | CSX Corp. | 2,124,502 | ||||||
27,024 | Eaton Corp. PLC | 2,044,095 | ||||||
5,396 | Norfolk Southern Corp. | 633,976 | ||||||
5,411 | United Technologies Corp. | 643,855 | ||||||
|
| |||||||
7,105,188 | ||||||||
|
| |||||||
Information Technology—9.4% | ||||||||
12,654 | Cisco Systems, Inc. | 431,122 | ||||||
31,016 | Corning, Inc. | 894,812 | ||||||
8,202 | Dxc Technology Co.(b) | 617,939 | ||||||
95,466 | Hewlett Packard Enterprise Co. | 1,778,531 | ||||||
45,549 | HP, Inc. | 857,232 | ||||||
51,223 | Yahoo!, Inc.(b) | 2,469,461 | ||||||
|
| |||||||
7,049,097 | ||||||||
|
| |||||||
Materials—1.6% | ||||||||
19,098 | Dow Chemical Co. (The) | 1,199,354 | ||||||
|
| |||||||
Real Estate—0.3% | ||||||||
2,848 | Equity Residential REIT | 183,924 | ||||||
|
| |||||||
Telecommunication Services—1.1% | ||||||||
21,422 | AT&T, Inc. | 848,954 | ||||||
|
| |||||||
Utilities—12.7% | ||||||||
28,837 | American Electric Power Co., Inc. | 1,956,014 | ||||||
25,399 | Duke Energy Corp. | 2,095,417 | ||||||
40,130 | Exelon Corp. | 1,389,702 | ||||||
9,006 | NextEra Energy, Inc. | 1,202,841 | ||||||
17,357 | PG&E Corp. | 1,163,787 | ||||||
34,544 | Southern Co. (The) | 1,720,291 | ||||||
|
| |||||||
9,528,052 | ||||||||
|
| |||||||
Total Investments (Cost $67,670,142)—100.0% | 74,749,172 | |||||||
Other assets less liabilities—0.0% | 21,258 | |||||||
|
| |||||||
Net Assets—100.0% | $ | 74,770,430 | ||||||
|
|
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.
| 81 |
|
Schedule of Investments(a)
PowerShares Zacks Micro Cap Portfolio (PZI)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Consumer Discretionary—8.1% | ||||||||
1,631 | America’s Car-Mart, Inc.(b)(c) | $ | 60,836 | |||||
3,524 | AV Homes, Inc.(c) | 61,846 | ||||||
6,103 | Barnes & Noble Education, Inc.(c) | 63,532 | ||||||
4,263 | Beasley Broadcast Group, Inc., Class A | 56,058 | ||||||
4,964 | Beazer Homes USA, Inc.(c) | 61,603 | ||||||
4,083 | Big 5 Sporting Goods Corp. | 62,878 | ||||||
10,542 | Black Diamond, Inc.(c) | 55,346 | ||||||
6,702 | Career Education Corp.(c) | 68,025 | ||||||
2,308 | Century Communities, Inc.(c) | 63,008 | ||||||
11,258 | China Automotive Systems, Inc. (China)(c) | 53,701 | ||||||
12,078 | China XD Plastics Co. Ltd. (China)(c) | 58,578 | ||||||
4,453 | Del Taco Restaurants, Inc.(c) | 58,557 | ||||||
4,112 | Entercom Communications Corp., Class A | 52,017 | ||||||
5,419 | Eros International PLC (India)(b)(c) | 53,919 | ||||||
6,008 | Gaia, Inc.(c) | 65,788 | ||||||
5,827 | Green Brick Partners, Inc.(c) | 60,018 | ||||||
1,629 | Johnson Outdoors, Inc., Class A | 59,165 | ||||||
3,119 | K12, Inc.(c) | 58,793 | ||||||
2,406 | M/I Homes, Inc.(c) | 65,347 | ||||||
1,855 | Marcus Corp. (The) | 62,699 | ||||||
1,982 | Monarch Casino & Resort, Inc.(c) | 58,410 | ||||||
2,777 | Perry Ellis International, Inc.(c) | 56,984 | ||||||
3,473 | RCI Hospitality Holdings, Inc. | 57,791 | ||||||
8,224 | Salem Media Group, Inc. | 62,914 | ||||||
4,409 | Shiloh Industries, Inc.(c) | 54,231 | ||||||
1,222 | SodaStream International Ltd. (Israel)(b)(c) | 66,465 | ||||||
6,671 | Tilly’s, Inc., Class A | 63,775 | ||||||
4,909 | Townsquare Media, Inc., Class A(c) | 59,399 | ||||||
9,663 | TravelCenters of America LLC(c) | 58,944 | ||||||
2,155 | Unifi, Inc.(c) | 60,491 | ||||||
11,372 | VOXX International Corp.(c) | 73,918 | ||||||
2,776 | William Lyon Homes, Class A(b)(c) | 61,072 | ||||||
|
| |||||||
1,936,108 | ||||||||
|
| |||||||
Consumer Staples—1.3% | ||||||||
4,443 | Craft Brew Alliance, Inc.(c) | 60,425 | ||||||
2,988 | Omega Protein Corp. | 60,208 | ||||||
13,483 | Pingtan Marine Enterprise Ltd.(b) | 64,314 | ||||||
1,654 | Seneca Foods Corp., Class A(c) | 61,529 | ||||||
8,653 | SunOpta, Inc. (Canada)(c) | 63,167 | ||||||
|
| |||||||
309,643 | ||||||||
|
| |||||||
Energy—10.6% | ||||||||
5,085 | Aegean Marine Petroleum Network, Inc. (Greece)(b) | 56,698 | ||||||
4,057 | ARC Logistics Partners LP(b) | 60,733 | ||||||
4,872 | Archrock, Inc. | 57,490 | ||||||
7,579 | Ardmore Shipping Corp. (Ireland) | 58,737 | ||||||
6,449 | Atwood Oceanics, Inc.(c) | 50,496 | ||||||
17,255 | Capital Product Partners LP (Greece) | 60,220 | ||||||
13,483 | Cloud Peak Energy, Inc.(c) | 45,438 | ||||||
3,904 | CNX Coal Resources LP(b) | 62,659 | ||||||
2,738 | Cone Midstream Partners LP | 61,660 | ||||||
6,407 | CSI Compressco LP(b) | 51,897 | ||||||
10,542 | Dawson Geophysical Co.(c) | 53,026 | ||||||
5,798 | Dorian LPG Ltd.(c) | 52,704 | ||||||
3,415 | Dynagas LNG Partners LP (Monaco)(b) | 55,699 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Energy (continued) | ||||||||
24,991 | Eclipse Resources Corp.(c) | $ | 50,232 | |||||
2,047 | Enviva Partners LP(b) | 59,670 | ||||||
5,029 | Era Group, Inc.(c) | 63,919 | ||||||
1,981 | Exterran Corp.(c) | 54,220 | ||||||
2,411 | GasLog Partners LP (Monaco) | 57,502 | ||||||
3,837 | Geospace Technologies Corp.(c) | 63,464 | ||||||
3,084 | Global Partners LP | 57,517 | ||||||
2,681 | Golar LNG Partners LP (United Kingdom) | 61,207 | ||||||
2,554 | Green Plains, Inc. | 58,742 | ||||||
5,154 | Gulf Island Fabrication, Inc. | 51,282 | ||||||
7,608 | Hallador Energy Co. | 50,898 | ||||||
8,354 | Helix Energy Solutions Group, Inc.(c) | 51,126 | ||||||
2,961 | Hoegh LNG Partners LP (Bermuda)(b) | 59,960 | ||||||
12,336 | Independence Contract Drilling, Inc.(c) | 56,869 | ||||||
25,207 | Jones Energy, Inc., Class A(b)(c) | 50,414 | ||||||
2,630 | KNOT Offshore Partners LP (United Kingdom) | 62,988 | ||||||
1,614 | Natural Resource Partners LP | 51,567 | ||||||
5,294 | Navios Maritime Midstream Partners LP (Monaco)(b) | 63,846 | ||||||
7,731 | Newpark Resources, Inc.(c) | 59,142 | ||||||
12,985 | North American Energy Partners, Inc. (Canada) | 61,679 | ||||||
8,526 | Pacific Ethanol, Inc.(c) | 57,977 | ||||||
15,257 | Pioneer Energy Services Corp.(c) | 46,534 | ||||||
5,766 | Renewable Energy Group, Inc.(c) | 60,255 | ||||||
675 | REX American Resources Corp.(c) | 63,909 | ||||||
5,941 | Ring Energy, Inc.(c) | 71,292 | ||||||
17,622 | Seadrill Partners LLC(b) | 53,923 | ||||||
18,582 | Southcross Energy Partners LP(b)(c) | 78,230 | ||||||
15,138 | StealthGas, Inc. (Greece)(c) | 51,772 | ||||||
6,477 | Teekay Corp. (Bermuda)(b) | 56,220 | ||||||
3,497 | USA Compression Partners LP | 58,575 | ||||||
22,214 | Willbros Group, Inc.(c) | 61,088 | ||||||
|
| |||||||
2,533,476 | ||||||||
|
| |||||||
Financials—45.1% | ||||||||
3,151 | 1st Constitution Bancorp | 56,403 | ||||||
3,296 | AG Mortgage Investment Trust, Inc. REIT | 62,459 | ||||||
1,638 | Allegiance Bancshares, Inc.(c) | 63,964 | ||||||
3,270 | Ambac Financial Group, Inc.(c) | 63,536 | ||||||
1,635 | American National Bankshares, Inc. | 62,784 | ||||||
10,561 | Anworth Mortgage Asset Corp. REIT | 61,887 | ||||||
7,096 | Arbor Realty Trust, Inc. REIT | 61,238 | ||||||
4,376 | Ares Commercial Real Estate Corp. REIT | 60,520 | ||||||
3,985 | Arlington Asset Investment Corp., Class A(b) | 58,022 | ||||||
2,564 | ARMOUR Residential REIT, Inc. REIT | 61,715 | ||||||
1,546 | Associated Capital Group, Inc., Class A | 52,023 | ||||||
3,151 | Atlantic Capital Bancshares, Inc.(c) | 61,760 | ||||||
2,123 | Banco Latinoamericano de Comercio Exterior SA, Class E (Panama) | 60,888 | ||||||
6,201 | Bank Mutual Corp. | 57,049 | ||||||
5,394 | Bank of Commerce Holdings | 60,682 | ||||||
1,893 | Bankwell Financial Group, Inc. | 68,413 | ||||||
3,514 | Bcb Bancorp, Inc. | 55,521 | ||||||
3,411 | Blue Hills Bancorp, Inc. | 61,739 | ||||||
1,498 | Bryn Mawr Bank Corp. | 64,264 | ||||||
3,705 | California First National Bancorp | 61,132 | ||||||
1,374 | Camden National Corp. | 58,738 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 82 |
|
PowerShares Zacks Micro Cap Portfolio (PZI) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
2,806 | Capital City Bank Group, Inc. | $ | 57,832 | |||||
4,082 | Capitala Finance Corp. | 57,842 | ||||||
5,535 | Capstead Mortgage Corp. REIT | 61,660 | ||||||
1,986 | Carolina Financial Corp. | 61,288 | ||||||
2,035 | CB Financial Services, Inc.(b) | 57,590 | ||||||
1,983 | Central Pacific Financial Corp. | 62,028 | ||||||
2,883 | Central Valley Community Bancorp | 65,473 | ||||||
959 | Century Bancorp, Inc., Class A | 60,465 | ||||||
3,030 | Charter Financial Corp. | 55,600 | ||||||
1,526 | Chemung Financial Corp. | 57,973 | ||||||
3,471 | Cherry Hill Mortgage Investment Corp. REIT | 60,361 | ||||||
2,695 | Civista Bancshares, Inc. | 58,562 | ||||||
5,656 | CM Finance, Inc.(b) | 57,126 | ||||||
2,396 | CNB Financial Corp. | 57,240 | ||||||
2,230 | Codorus Valley Bancorp, Inc. | 64,648 | ||||||
1,314 | Community Trust Bancorp, Inc. | 59,064 | ||||||
2,526 | ConnectOne Bancorp, Inc. | 56,077 | ||||||
13,088 | Consumer Portfolio Services, Inc.(c) | 63,739 | ||||||
2,013 | County Bancorp, Inc. | 55,257 | ||||||
4,295 | Cowen Group, Inc., Class A(c) | 68,290 | ||||||
1,480 | CU Bancorp(c) | 55,167 | ||||||
1,901 | Customers Bancorp, Inc.(c) | 58,798 | ||||||
2,936 | Dime Community Bancshares, Inc. | 57,105 | ||||||
3,367 | Donegal Group, Inc., Class A | 56,094 | ||||||
8,489 | Dynex Capital, Inc. REIT | 58,744 | ||||||
3,925 | Ellington Residential Mortgage REIT REIT(b) | 59,267 | ||||||
1,880 | Encore Capital Group, Inc.(c) | 62,698 | ||||||
4,094 | Enova International, Inc.(c) | 58,135 | ||||||
2,521 | Entegra Financial Corp.(c) | 59,622 | ||||||
1,430 | Enterprise Financial Services Corp. | 60,417 | ||||||
1,896 | Equity Bancshares, Inc., Class A(c) | 59,857 | ||||||
7,247 | EZCORP, Inc., Class A(c) | 65,585 | ||||||
1,483 | Farmers Capital Bank Corp. | 61,544 | ||||||
4,392 | Farmers National Banc Corp. | 62,806 | ||||||
1,036 | Federal Agricultural Mortgage Corp., Class C | 59,104 | ||||||
2,736 | Fidelity Southern Corp. | 61,615 | ||||||
3,379 | Fidus Investment Corp. | 60,585 | ||||||
12,284 | Fifth Street Finance Corp. | 56,384 | ||||||
6,742 | Fifth Street Senior Floating Rate Corp.(b) | 54,947 | ||||||
1,982 | First Bancorp/Southern Pines NC | 59,539 | ||||||
2,035 | First Bancshares, Inc. (The) | 58,303 | ||||||
2,398 | First Community Bancshares, Inc. | 63,451 | ||||||
2,431 | First Connecticut Bancorp, Inc. | 64,908 | ||||||
1,214 | First Defiance Financial Corp. | 65,119 | ||||||
1,252 | First Financial Corp. | 61,098 | ||||||
3,257 | First Financial Northwest, Inc. | 51,070 | ||||||
3,697 | First Foundation, Inc.(c) | 58,043 | ||||||
2,416 | First Guaranty Bancshares, Inc.(b) | 61,004 | ||||||
1,949 | First Internet Bancorp | 57,593 | ||||||
3,789 | First Northwest Bancorp(c) | 62,367 | ||||||
2,188 | First of Long Island Corp. (The) | 59,514 | ||||||
2,223 | Flushing Financial Corp. | 65,534 | ||||||
4,657 | FNFV Group(c) | 63,801 | ||||||
1,575 | Franklin Financial Network, Inc.(c) | 63,866 | ||||||
1,589 | FS Bancorp, Inc. | 69,709 | ||||||
6,985 | Gain Capital Holdings, Inc. | 49,524 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
1,962 | German American Bancorp, Inc. | $ | 64,511 | |||||
6,395 | Gladstone Capital Corp.(b) | 62,799 | ||||||
6,627 | Gladstone Investment Corp.(b) | 64,149 | ||||||
1,531 | Global Indemnity Ltd., Class A (Cayman Islands)(c) | 62,082 | ||||||
2,330 | Goldman Sachs BDC, Inc. | 58,250 | ||||||
3,006 | Golub Capital BDC, Inc.(b) | 61,052 | ||||||
4,543 | Great Ajax Corp. REIT | 61,785 | ||||||
1,183 | Great Southern Bancorp, Inc. | 59,327 | ||||||
3,363 | Green Bancorp, Inc.(c) | 60,534 | ||||||
2,678 | Greenlight Capital Re Ltd., Class A(c) | 57,711 | ||||||
2,462 | Guaranty Bancorp | 61,919 | ||||||
1,962 | Hanmi Financial Corp. | 56,996 | ||||||
1,281 | HCI Group, Inc.(b) | 61,091 | ||||||
4,054 | Health Insurance Innovations, Inc., Class A(c) | 67,904 | ||||||
3,912 | Hercules Capital, Inc. | 60,714 | ||||||
2,488 | Heritage Financial Corp. | 65,683 | ||||||
2,188 | HomeStreet, Inc.(c) | 56,888 | ||||||
2,600 | HomeTrust Bancshares, Inc.(c) | 65,000 | ||||||
2,311 | Horizon Bancorp | 62,374 | ||||||
2,890 | Independence Holding Co. | 54,765 | ||||||
2,914 | Independent Bank Corp./MI | 64,982 | ||||||
1,599 | INTL FCStone, Inc.(c) | 59,723 | ||||||
2,630 | Investar Holding Corp. | 58,517 | ||||||
3,777 | Kingstone Cos., Inc. | 56,466 | ||||||
4,024 | Ladder Capital Corp., Class A REIT | 58,871 | ||||||
3,059 | Lakeland Bancorp, Inc. | 59,498 | ||||||
1,828 | MainSource Financial Group, Inc. | 62,518 | ||||||
2,274 | Marlin Business Services Corp. | 57,873 | ||||||
7,680 | Medley Capital Corp. | 59,290 | ||||||
1,693 | Mercantile Bank Corp. | 56,936 | ||||||
3,185 | Meridian Bancorp, Inc. | 55,897 | ||||||
669 | Meta Financial Group, Inc. | 56,798 | ||||||
2,123 | Mid Penn Bancorp, Inc. | 58,701 | ||||||
4,053 | MidSouth Bancorp, Inc. | 61,808 | ||||||
1,713 | MidWestOne Financial Group, Inc. | 59,441 | ||||||
2,489 | MMA Capital Management LLC(c) | 57,994 | ||||||
3,809 | Monroe Capital Corp.(b) | 61,249 | ||||||
3,471 | Mtge Investment Corp. REIT | 62,478 | ||||||
6,552 | MVC Capital, Inc. | 59,230 | ||||||
1,817 | National Bank Holdings Corp., Class A | 57,363 | ||||||
1,582 | National Commerce Corp.(c) | 61,223 | ||||||
3,906 | New Mountain Finance Corp. | 58,199 | ||||||
9,489 | New York Mortgage Trust, Inc. REIT(b) | 60,824 | ||||||
5,394 | NewStar Financial, Inc. | 57,932 | ||||||
5,098 | NMI Holdings, Inc., Class A(c) | 59,137 | ||||||
3,753 | Northeast Bancorp | 62,863 | ||||||
1,992 | Northrim Bancorp, Inc. | 63,744 | ||||||
1,557 | Norwood Financial Corp. | 57,905 | ||||||
2,071 | OceanFirst Financial Corp. | 57,263 | ||||||
11,856 | Ocwen Financial Corp.(b)(c) | 27,150 | ||||||
5,247 | OFG Bancorp | 61,390 | ||||||
1,918 | Old Point Financial Corp. | 59,055 | ||||||
1,573 | Pacific Premier Bancorp, Inc.(c) | 57,493 | ||||||
4,957 | Park Sterling Corp. | 60,971 | ||||||
2,650 | Parke Bancorp, Inc. | 63,070 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 83 |
|
PowerShares Zacks Micro Cap Portfolio (PZI) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
1,943 | Peapack-Gladstone Financial Corp. | $ | 62,293 | |||||
4,235 | Pennantpark Floating Rate Capital Ltd. | 58,612 | ||||||
7,321 | PennantPark Investment Corp. | 58,641 | ||||||
3,524 | PennyMac Financial Services, Inc., Class A(c) | 58,146 | ||||||
2,001 | Peoples Bancorp of North Carolina, Inc. | 56,708 | ||||||
1,883 | Peoples Bancorp, Inc. | 63,043 | ||||||
4,694 | PHH Corp.(c) | 60,553 | ||||||
4,263 | PICO Holdings, Inc.(c) | 68,634 | ||||||
916 | Piper Jaffray Cos. | 57,342 | ||||||
1,148 | Preferred Bank | 60,833 | ||||||
3,032 | Premier Financial Bancorp, Inc. | 64,976 | ||||||
2,815 | Provident Bancorp, Inc.(c) | 59,959 | ||||||
1,392 | QCR Holdings, Inc. | 63,475 | ||||||
2,975 | Regional Management Corp.(c) | 58,994 | ||||||
1,733 | Republic Bancorp, Inc., Class A | 62,353 | ||||||
7,339 | Republic First Bancorp, Inc.(c) | 63,115 | ||||||
7,877 | Riverview Bancorp, Inc. | 57,187 | ||||||
843 | Safety Insurance Group, Inc. | 61,033 | ||||||
1,439 | Sandy Spring Bancorp, Inc. | 62,237 | ||||||
2,536 | Saratoga Investment Corp. | 55,336 | ||||||
2,458 | Seacoast Banking Corp. of Florida(c) | 59,484 | ||||||
3,588 | Shore Bancshares, Inc. | 59,525 | ||||||
2,204 | Sierra Bancorp | 55,254 | ||||||
2,607 | Solar Capital Ltd. | 59,466 | ||||||
3,235 | Solar Senior Capital Ltd. | 59,233 | ||||||
1,792 | Southside Bancshares, Inc. | 62,218 | ||||||
2,338 | State Bank Financial Corp. | 62,799 | ||||||
4,094 | Stellus Capital Investment Corp.(b) | 58,790 | ||||||
2,872 | Sunshine Bancorp, Inc.(c) | 61,719 | ||||||
2,472 | Sussex Bancorp | 63,778 | ||||||
3,356 | TCP Capital Corp. | 57,388 | ||||||
2,713 | Timberland Bancorp, Inc. | 60,147 | ||||||
8,403 | Tiptree, Inc., Class A | 59,241 | ||||||
1,686 | TriCo Bancshares | 59,786 | ||||||
4,076 | TriplePoint Venture Growth BDC Corp.(b) | 58,368 | ||||||
2,533 | TriState Capital Holdings, Inc.(c) | 63,072 | ||||||
2,269 | Triumph Bancorp, Inc.(c) | 50,826 | ||||||
7,529 | TrustCo Bank Corp. NY | 59,856 | ||||||
3,280 | Two River Bancorp | 60,352 | ||||||
7,061 | United Community Financial Corp. | 60,301 | ||||||
3,523 | United Financial Bancorp, Inc. | 60,842 | ||||||
3,411 | Unity Bancorp, Inc. | 55,770 | ||||||
2,209 | Univest Corp. of Pennsylvania | 66,933 | ||||||
2,075 | Veritex Holdings, Inc.(c) | 55,901 | ||||||
3,221 | Waterstone Financial, Inc. | 61,199 | ||||||
4,314 | WhiteHorse Finance, Inc. | 60,655 | ||||||
1,183 | World Acceptance Corp.(c) | 62,581 | ||||||
2,375 | Xenith Bankshares, Inc.(c) | 64,173 | ||||||
|
| |||||||
10,808,282 | ||||||||
|
| |||||||
Health Care—3.1% | ||||||||
11,954 | Abeona Therapeutics, Inc.(c) | 67,540 | ||||||
1,888 | Addus HomeCare Corp.(c) | 64,098 | ||||||
2,584 | Albireo Pharma, Inc.(c) | 53,463 | ||||||
2,617 | AMAG Pharmaceuticals, Inc.(c) | 63,855 | ||||||
3,414 | AngioDynamics, Inc.(c) | 52,985 | ||||||
3,649 | Aquinox Pharmaceuticals, Inc. (Canada)(b)(c) | 53,567 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
27,615 | Chelsea Therapeutics International Ltd.(c) | $ | 2,209 | |||||
9,059 | Chimerix, Inc.(c) | 54,173 | ||||||
2,690 | Evolent Health, Inc., Class A(c) | 62,542 | ||||||
12,003 | Fate Therapeutics, Inc.(b)(c) | 55,094 | ||||||
1,982 | Flexion Therapeutics, Inc.(c) | 40,453 | ||||||
2,849 | REGENXBIO, Inc.(c) | 59,544 | ||||||
5,549 | Syneron Medical Ltd. (Israel)(c) | 60,762 | ||||||
6,935 | Tetraphase Pharmaceuticals, Inc.(c) | 54,994 | ||||||
|
| |||||||
745,279 | ||||||||
|
| |||||||
Industrials—12.9% | ||||||||
10,638 | Acacia Research Corp.(c) | 57,977 | ||||||
9,827 | Ameresco, Inc., Class A(c) | 63,384 | ||||||
2,282 | ArcBest Corp. | 60,359 | ||||||
3,865 | CAI International, Inc.(c) | 79,696 | ||||||
4,265 | CBIZ, Inc.(c) | 67,174 | ||||||
7,247 | CDI Corp.(c) | 59,063 | ||||||
5,564 | CECO Environmental Corp. | 62,817 | ||||||
1,766 | Chart Industries, Inc.(c) | 64,477 | ||||||
3,208 | China Yuchai International Ltd. (Singapore) | 62,235 | ||||||
21,239 | Civeo Corp.(c) | 63,505 | ||||||
2,384 | Columbus McKinnon Corp. | 62,294 | ||||||
1,674 | CRA International, Inc. | 63,512 | ||||||
12,883 | Diana Shipping, Inc. (Greece)(c) | 51,403 | ||||||
4,694 | DMC Global, Inc. | 71,818 | ||||||
2,082 | Ducommun, Inc.(c) | 61,190 | ||||||
1,838 | DXP Enterprises, Inc.(c) | 67,050 | ||||||
7,813 | Golden Ocean Group Ltd. (Norway)(c) | 59,535 | ||||||
10,084 | Goldfield Corp. (The)(c) | 54,958 | ||||||
8,975 | Hudson Technologies, Inc.(c) | 63,722 | ||||||
1,416 | ICF International, Inc.(c) | 62,516 | ||||||
3,266 | IES Holdings, Inc.(c) | 65,320 | ||||||
2,727 | Kelly Services, Inc., Class A | 60,867 | ||||||
2,872 | Kelly Services, Inc., Class B | 66,056 | ||||||
5,990 | KEYW Holding Corp. (The)(b)(c) | 56,845 | ||||||
7,258 | Kratos Defense & Security Solutions, Inc.(c) | 55,306 | ||||||
8,427 | Manitex International, Inc.(c) | 62,360 | ||||||
10,503 | Manitowoc Co., Inc. (The)(c) | 62,703 | ||||||
1,441 | MYR Group, Inc.(c) | 60,897 | ||||||
2,566 | Navigant Consulting, Inc.(c) | 61,507 | ||||||
30,041 | Navios Maritime Partners LP (Greece)(b)(c) | 62,786 | ||||||
9,131 | NL Industries, Inc.(c) | 73,961 | ||||||
2,457 | NN, Inc. | 67,813 | ||||||
3,748 | Northwest Pipe Co.(c) | 52,509 | ||||||
7,761 | Orion Group Holdings, Inc.(c) | 58,595 | ||||||
17,309 | Pangea Logistics Solutions(c) | 56,947 | ||||||
1,827 | Powell Industries, Inc. | 63,013 | ||||||
1,174 | Preformed Line Products Co. | 62,140 | ||||||
11,689 | Radiant Logistics, Inc.(c) | 70,134 | ||||||
7,761 | Revolution Lighting Technologies, Inc.(c) | 68,685 | ||||||
6,234 | Scorpio Bulkers, Inc.(c) | 46,443 | ||||||
7,680 | Spartan Motors, Inc. | 63,360 | ||||||
5,652 | Star Bulk Carriers Corp. (Greece)(c) | 53,468 | ||||||
6,182 | Sterling Construction Co., Inc.(c) | 58,791 | ||||||
2,945 | Supreme Industries, Inc., Class A | 59,018 | ||||||
4,069 | Textainer Group Holdings Ltd. | 60,831 | ||||||
5,922 | Titan International, Inc. | 63,425 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 84 |
|
PowerShares Zacks Micro Cap Portfolio (PZI) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
4,301 | Titan Machinery, Inc.(c) | $ | 68,171 | |||||
3,048 | Twin Disc, Inc.(c) | 59,741 | ||||||
1,126 | Veritiv Corp.(c) | 58,158 | ||||||
2,665 | Willis Lease Finance Corp.(c) | 60,522 | ||||||
|
| |||||||
3,099,057 | ||||||||
|
| |||||||
Information Technology—8.9% | ||||||||
4,156 | Actua Corp.(c) | 58,184 | ||||||
3,391 | Alpha & Omega Semiconductor Ltd.(c) | 56,121 | ||||||
953 | Applied Optoelectronics, Inc.(b)(c) | 47,069 | ||||||
8,463 | AudioCodes Ltd. (Israel)(c) | 54,671 | ||||||
10,355 | AXT, Inc.(c) | 69,896 | ||||||
13,804 | Bazaarvoice, Inc.(c) | 64,879 | ||||||
2,554 | Bel Fuse, Inc., Class B | 61,807 | ||||||
3,234 | Blucora, Inc.(c) | 59,667 | ||||||
15,421 | Camtek Ltd. (Israel)(c) | 57,366 | ||||||
17,521 | Ceragon Networks Ltd. (Israel)(c) | 58,345 | ||||||
3,213 | Cohu, Inc. | 60,179 | ||||||
3,768 | Control4 Corp.(c) | 63,679 | ||||||
2,377 | CyberOptics Corp.(c) | 51,462 | ||||||
4,811 | Digi International, Inc.(c) | 59,656 | ||||||
6,521 | EMCORE Corp. | 58,689 | ||||||
5,472 | Exar Corp.(c) | 71,191 | ||||||
10,450 | EXFO, Inc. (Canada)(c) | 48,593 | ||||||
4,955 | FormFactor, Inc.(c) | 55,001 | ||||||
6,806 | GSI Technology, Inc.(c) | 54,652 | ||||||
9,997 | Harmonic, Inc.(c) | 57,983 | ||||||
4,851 | Intevac, Inc.(c) | 61,850 | ||||||
4,026 | IXYS Corp. | 56,163 | ||||||
3,568 | Kimball Electronics, Inc.(c) | 61,548 | ||||||
14,387 | Kopin Corp.(c) | 58,699 | ||||||
7,386 | Liquidity Services, Inc.(c) | 57,611 | ||||||
7,997 | Magal Security Systems Ltd. (Israel)(c) | 53,420 | ||||||
10,846 | Meet Group, Inc. (The)(c) | 64,642 | ||||||
1,945 | Nanometrics, Inc.(c) | 61,374 | ||||||
4,718 | Net 1 UEPS Technologies, Inc. (South Africa)(c) | 51,096 | ||||||
2,114 | PCM, Inc.(c) | 53,273 | ||||||
5,319 | Photronics, Inc.(c) | 61,169 | ||||||
7,247 | RetailMeNot, Inc.(c) | 84,065 | ||||||
2,600 | Rudolph Technologies, Inc.(c) | 63,700 | ||||||
2,093 | Sierra Wireless, Inc. (Canada)(c) | 52,953 | ||||||
3,651 | Ultra Clean Holdings, Inc.(c) | 70,245 | ||||||
6,368 | Xcerra Corp.(c) | 62,406 | ||||||
|
| |||||||
2,143,304 | ||||||||
|
| |||||||
Materials—4.5% | ||||||||
22,129 | Asanko Gold, Inc. (Canada)(c) | 54,216 | ||||||
2,204 | Boise Cascade Co.(c) | 67,222 | ||||||
4,689 | Century Aluminum Co.(c) | 63,958 | ||||||
3,550 | Core Molding Technologies, Inc.(c) | 70,219 | ||||||
5,085 | Flotek Industries, Inc.(b)(c) | 61,071 | ||||||
12,799 | Gold Resource Corp. | 42,237 | ||||||
14,038 | Klondex Mines Ltd. (Canada)(c) | 50,396 | ||||||
2,034 | Kraton Corp.(c) | 66,532 | ||||||
1,820 | Materion Corp. | 69,251 | ||||||
18,406 | McEwen Mining, Inc.(b)(c) | 55,954 | ||||||
3,084 | Olympic Steel, Inc. | 69,544 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Materials (continued) | ||||||||
11,954 | Resolute Forest Products, Inc.(c) | $ | 74,713 | |||||
13,122 | Sandstorm Gold Ltd. (Canada)(c) | 45,665 | ||||||
2,842 | Schnitzer Steel Industries, Inc., Class A | 53,714 | ||||||
3,878 | SunCoke Energy Partners LP(b) | 63,211 | ||||||
6,514 | SunCoke Energy, Inc.(c) | 59,733 | ||||||
3,241 | TimkenSteel Corp.(c) | 48,874 | ||||||
2,315 | Westlake Chemical Partners LP | 58,570 | ||||||
|
| |||||||
1,075,080 | ||||||||
|
| |||||||
Real Estate—5.0% | ||||||||
3,866 | Altisource Residential Corp. REIT | 55,593 | ||||||
4,310 | Armada Hoffler Properties, Inc. REIT | 61,461 | ||||||
9,997 | Ashford Hospitality Trust, Inc. REIT | 62,481 | ||||||
7,028 | BRT Realty Trust REIT(c) | 56,716 | ||||||
2,483 | Community Healthcare Trust, Inc. REIT | 61,380 | ||||||
1,792 | CorEnergy Infrastructure Trust, Inc. REIT(b) | 65,372 | ||||||
3,012 | Easterly Government Properties, Inc. REIT | 60,601 | ||||||
5,334 | Farmland Partners, Inc. REIT(b) | 58,141 | ||||||
4,392 | Forestar Group, Inc.(c) | 62,147 | ||||||
6,302 | Independence Realty Trust, Inc. REIT | 57,978 | ||||||
3,197 | InfraREIT, Inc. REIT | 61,063 | ||||||
4,964 | iStar, Inc. REIT(c) | 60,710 | ||||||
2,539 | Jernigan Capital, Inc. REIT | 59,133 | ||||||
2,439 | National Storage Affiliates Trust REIT | 59,755 | ||||||
2,459 | NexPoint Residential Trust, Inc. REIT | 59,041 | ||||||
3,094 | Parkway, Inc. REIT | 62,344 | ||||||
4,373 | Preferred Apartment Communities, Inc., Class A REIT | 61,878 | ||||||
19,721 | RAIT Financial Trust REIT | 60,543 | ||||||
1,173 | RMR Group, Inc. (The), Class A | 61,876 | ||||||
3,451 | Tier REIT, Inc. REIT | 59,737 | ||||||
|
| |||||||
1,207,950 | ||||||||
|
| |||||||
Telecommunication Services—0.3% | ||||||||
6,514 | Iridium Communications, Inc.(b)(c) | 69,048 | ||||||
|
| |||||||
Utilities—0.2% | ||||||||
4,346 | 8Point3 Energy Partners LP, Class A | 53,716 | ||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $21,343,580) | 23,980,943 | |||||||
|
| |||||||
Money Market Fund—0.3% | ||||||||
75,020 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $75,020) | 75,020 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $21,418,600)—100.3% | 24,055,963 | |||||||
|
|
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, 2017
Number of Shares | Value | |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—6.8% | ||||||||
1,641,268 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $1,641,268) | $ | 1,641,268 | |||||
|
| |||||||
Total Investments (Cost $23,059,868)—107.1% | 25,697,231 | |||||||
Other assets less liabilities—(7.1)% | (1,709,867 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 23,987,364 | ||||||
|
|
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, 2017. |
(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, 2017. |
(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 2I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 86 |
|
(This Page Intentionally Left Blank)
| 87 |
|
Statements of Assets and Liabilities
April 30, 2017
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) | $ | 441,158,844 | $ | 1,257,172,015 | $ | 21,849,252 | $ | 34,194,564 | ||||||||
Affiliated investments, at value | — | — | 490,917 | 3,170,573 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total investments, at value | 441,158,844 | 1,257,172,015 | 22,340,169 | 37,365,137 | ||||||||||||
Cash | — | — | 153 | — | ||||||||||||
Receivables: | ||||||||||||||||
Dividends | 216,692 | 1,067,090 | 6,396 | 2,987 | ||||||||||||
Investments sold | — | — | 7,172 | 669,220 | ||||||||||||
Expenses absorbed | — | — | 4,680 | — | ||||||||||||
Securities lending | — | — | 3,578 | 8,651 | ||||||||||||
Foreign tax reclaims | — | — | — | — | ||||||||||||
Other assets | 1,401 | 2,093 | 621 | 640 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Assets | 441,376,937 | 1,258,241,198 | 22,362,769 | 38,046,635 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Liabilities: | ||||||||||||||||
Due to custodian | 17,425 | 496,332 | — | 79,763 | ||||||||||||
Payables: | ||||||||||||||||
Collateral upon return of securities loaned | — | — | 426,605 | 3,170,573 | ||||||||||||
Investments purchased | — | — | — | 538,118 | ||||||||||||
Shares repurchased | — | — | — | — | ||||||||||||
Expenses recaptured | — | — | — | — | ||||||||||||
Accrued advisory fees | 177,659 | 511,283 | — | 4,827 | ||||||||||||
Accrued trustees’ and officer’s fees | 35,044 | 47,714 | 15,899 | 17,295 | ||||||||||||
Accrued expenses | 94,224 | 213,192 | 42,836 | 40,768 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Liabilities | 324,352 | 1,268,521 | 485,340 | 3,851,344 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 441,052,585 | $ | 1,256,972,677 | $ | 21,877,429 | $ | 34,195,291 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets Consist of: | ||||||||||||||||
Shares of beneficial interest | $ | 585,082,988 | $ | 1,379,099,947 | $ | 27,621,161 | $ | 56,507,825 | ||||||||
Undistributed net investment income | 330,271 | 2,944,814 | 4,999 | 19,525 | ||||||||||||
Undistributed net realized gain (loss) | (199,650,278 | ) | (233,086,173 | ) | (7,810,681 | ) | (26,160,199 | ) | ||||||||
Net unrealized appreciation | 55,289,604 | 108,014,089 | 2,061,950 | 3,828,140 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 441,052,585 | $ | 1,256,972,677 | $ | 21,877,429 | $ | 34,195,291 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 12,600,000 | 35,650,000 | 550,000 | 1,200,000 | ||||||||||||
Net asset value | $ | 35.00 | $ | 35.26 | $ | 39.78 | $ | 28.50 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Market price | $ | 35.02 | $ | 35.27 | $ | 39.77 | $ | 28.49 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Unaffiliated investments, at cost | $ | 385,869,240 | $ | 1,149,157,926 | $ | 19,787,598 | $ | 30,366,424 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Affiliated investments, at cost | $ | — | $ | — | $ | 490,621 | $ | 3,170,573 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total investments, at cost | $ | 385,869,240 | $ | 1,149,157,926 | $ | 20,278,219 | $ | 33,536,997 | ||||||||
|
|
|
|
|
|
|
| |||||||||
(a) Includes securities on loan with an aggregate value of | $ | — | $ | — | $ | 387,194 | $ | 3,109,478 | ||||||||
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 88 |
|
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) | |||||||||||||||||||||||
$ | 82,992,111 | $ | 26,203,253 | $ | 67,971,166 | $ | 68,188,003 | $ | 39,677,838 | $ | 146,163,216 | $ | 74,749,172 | $ | 23,980,943 | |||||||||||||||
5,151,831 | 1,070,267 | 2,063,756 | 1,861,774 | 46,473 | 5,174,477 | — | 1,716,288 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
88,143,942 | 27,273,520 | 70,034,922 | 70,049,777 | 39,724,311 | 151,337,693 | 74,749,172 | 25,697,231 | |||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||
31,252 | 11,701 | 1,992 | 40,155 | 35,865 | 106,076 | 110,766 | 7,216 | |||||||||||||||||||||||
1,406,582 | — | — | — | — | — | — | 3,037 | |||||||||||||||||||||||
— | 3,313 | — | — | — | — | — | — | |||||||||||||||||||||||
6,250 | 1,565 | 2,547 | 2,524 | — | 2,666 | — | 4,768 | |||||||||||||||||||||||
320 | — | — | — | 872 | — | 592 | — | |||||||||||||||||||||||
687 | 633 | 683 | 671 | 648 | 857 | 734 | 1,151 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
89,589,033 | 27,290,732 | 70,040,144 | 70,093,127 | 39,761,696 | 151,447,292 | 74,861,264 | 25,713,403 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
— | — | — | — | — | — | 9,725 | — | |||||||||||||||||||||||
4,672,920 | 982,310 | 1,988,851 | 1,807,860 | — | 5,088,195 | — | 1,641,268 | |||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||
1,406,582 | — | — | — | — | — | — | — | |||||||||||||||||||||||
— | — | — | — | — | 1,935 | — | — | |||||||||||||||||||||||
22,563 | — | 12,624 | 15,061 | 2,550 | 34,488 | 18,358 | 6,614 | |||||||||||||||||||||||
19,276 | 16,415 | 24,348 | 17,986 | 17,045 | 13,663 | 11,676 | 18,644 | |||||||||||||||||||||||
52,571 | 49,588 | 47,219 | 48,910 | 38,670 | 53,387 | 51,075 | 59,513 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
6,173,912 | 1,048,313 | 2,073,042 | 1,889,817 | 58,265 | 5,191,668 | 90,834 | 1,726,039 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 83,415,121 | $ | 26,242,419 | $ | 67,967,102 | $ | 68,203,310 | $ | 39,703,431 | $ | 146,255,624 | $ | 74,770,430 | $ | 23,987,364 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 106,339,300 | $ | 32,537,793 | $ | 173,039,354 | $ | 94,944,895 | $ | 43,879,372 | $ | 136,615,244 | $ | 70,638,329 | $ | 64,257,597 | |||||||||||||||
98,267 | 21,065 | 45,489 | 291,580 | 69,479 | 142,666 | 134,805 | 56,423 | |||||||||||||||||||||||
(30,095,207 | ) | (8,133,567 | ) | (115,685,580 | ) | (28,368,968 | ) | (8,980,406 | ) | (11,184,392 | ) | (3,081,734 | ) | (42,964,019 | ) | |||||||||||||||
7,072,761 | 1,817,128 | 10,567,839 | 1,335,803 | 4,734,986 | 20,682,106 | 7,079,030 | 2,637,363 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 83,415,121 | $ | 26,242,419 | $ | 67,967,102 | $ | 68,203,310 | $ | 39,703,431 | $ | 146,255,624 | $ | 74,770,430 | $ | 23,987,364 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
2,850,000 | 600,000 | 1,950,000 | 2,200,000 | 850,000 | 3,800,000 | 2,100,000 | 1,300,000 | |||||||||||||||||||||||
$ | 29.27 | $ | 43.74 | $ | 34.85 | $ | 31.00 | $ | 46.71 | $ | 38.49 | $ | 35.60 | $ | 18.45 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 29.26 | $ | 43.74 | $ | 34.85 | $ | 31.00 | $ | 46.75 | $ | 38.50 | $ | 35.63 | $ | 18.44 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 75,951,426 | $ | 24,383,771 | $ | 57,403,327 | $ | 66,852,200 | $ | 34,942,852 | $ | 125,481,110 | $ | 67,670,142 | $ | 21,343,580 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 5,119,728 | $ | 1,072,621 | $ | 2,063,756 | $ | 1,861,774 | $ | 46,473 | $ | 5,174,477 | $ | — | $ | 1,716,288 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 81,071,154 | $ | 25,456,392 | $ | 59,467,083 | $ | 68,713,974 | $ | 34,989,325 | $ | 130,655,587 | $ | 67,670,142 | $ | 23,059,868 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 4,520,801 | $ | 951,673 | $ | 1,928,639 | $ | 1,756,950 | $ | — | $ | 5,073,173 | $ | — | $ | 1,559,620 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 89 |
|
For the year ended April 30, 2017
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 | $ | 5,605,859 | $ | 28,273,824 | $ | 175,159 | $ | 108,943 | ||||||||
Affiliated dividend income | 1,014 | 2,583 | 607 | 274 | ||||||||||||
Securities lending income | — | — | 10,946 | 85,328 | ||||||||||||
Foreign withholding tax | (13,755 | ) | — | (95 | ) | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Income | 5,593,118 | 28,276,407 | 186,617 | 194,545 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Expenses: | ||||||||||||||||
Advisory fees | 2,133,922 | 5,437,483 | 38,005 | 83,381 | ||||||||||||
Sub-licensing fees | 128,034 | 326,246 | 2,836 | 5,699 | ||||||||||||
Accounting & administration fees | 79,382 | 198,087 | 36,060 | 35,953 | ||||||||||||
Professional fees | 32,878 | 37,993 | 25,526 | 26,502 | ||||||||||||
Trustees’ and officer’s fees | 14,120 | 23,729 | 7,501 | 7,727 | ||||||||||||
Custodian & transfer agent fees | 8,908 | 45,090 | 24,483 | 7,807 | ||||||||||||
Recapture (Note 3) | — | — | — | — | ||||||||||||
Other expenses | 51,735 | 74,143 | 17,849 | 19,373 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Expenses | 2,448,979 | 6,142,771 | 152,260 | 186,442 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Less: Waivers | (502 | ) | (1,343 | ) | (114,365 | ) | (74,440 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Expenses | 2,448,477 | 6,141,428 | 37,895 | 112,002 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Investment Income | 3,144,641 | 22,134,979 | 148,722 | 82,543 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Realized and Unrealized Gain (Loss): | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investment securities | (15,360,958 | ) | (26,328,316 | ) | (175,221 | ) | (3,256,004 | ) | ||||||||
In-kind redemptions | 49,815,250 | 138,404,084 | 392,133 | 2,191,030 | ||||||||||||
Foreign currencies | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized gain (loss) | 34,454,292 | 112,075,768 | 216,912 | (1,064,974 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net unrealized appreciation (depreciation) on: | ||||||||||||||||
Investment securities | 19,256,044 | 59,582,637 | 2,570,917 | 6,816,011 | ||||||||||||
Foreign currencies | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in unrealized appreciation | 19,256,044 | 59,582,637 | 2,570,917 | 6,816,011 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized and unrealized gain | 53,710,336 | 171,658,405 | 2,787,829 | 5,751,037 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets resulting from operations | $ | 56,854,977 | $ | 193,793,384 | $ | 2,936,551 | $ | 5,833,580 | ||||||||
|
|
|
|
|
|
|
|
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) | |||||||||||||||||||||||
$ | 1,471,120 | $ | 370,814 | $ | 398,710 | $ | 1,477,366 | $ | 656,311 | $ | 1,727,830 | $ | 1,810,927 | $ | 1,039,878 | |||||||||||||||
38,750 | 731 | 355 | 262 | 230 | 555 | 264 | 366 | |||||||||||||||||||||||
147,259 | 17,461 | 37,946 | 33,329 | — | 23,068 | — | 36,454 | |||||||||||||||||||||||
(86 | ) | (411 | ) | — | (2,133 | ) | (783 | ) | — | (3,425 | ) | (752 | ) | |||||||||||||||||
|
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|
|
| |||||||||||||||
1,657,043 | 388,595 | 437,011 | 1,508,824 | 655,758 | 1,751,453 | 1,807,766 | 1,075,946 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
| |||||||||||||||
209,436 | 61,734 | 184,203 | 163,815 | 82,548 | 411,897 | 200,877 | 117,547 | |||||||||||||||||||||||
15,848 | 4,181 | 12,479 | 13,483 | 5,594 | 28,413 | 21,512 | 23,509 | |||||||||||||||||||||||
36,142 | 36,222 | 36,135 | 36,028 | 36,128 | 36,074 | 36,125 | 35,790 | |||||||||||||||||||||||
25,244 | 25,861 | 25,248 | 25,090 | 24,868 | 26,358 | 25,444 | 34,217 | |||||||||||||||||||||||
8,338 | 7,675 | 8,300 | 8,070 | 7,814 | 9,553 | 8,316 | 7,687 | |||||||||||||||||||||||
11,722 | 13,703 | 4,505 | 5,938 | 3,179 | 4,083 | 4,229 | 7,248 | |||||||||||||||||||||||
— | — | — | — | — | 15,151 | — | — | |||||||||||||||||||||||
23,490 | 18,652 | 21,741 | 22,097 | 19,522 | 22,401 | 18,910 | 17,747 | |||||||||||||||||||||||
|
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| |||||||||||||||
330,220 | 168,028 | 292,611 | 274,521 | 179,653 | 553,930 | 315,413 | 243,745 | |||||||||||||||||||||||
|
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| |||||||||||||||
(48,779 | ) | (106,412 | ) | (45,058 | ) | (54,360 | ) | (97,214 | ) | (263 | ) | (45,396 | ) | (79,349 | ) | |||||||||||||||
|
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| |||||||||||||||
281,441 | 61,616 | 247,553 | 220,161 | 82,439 | 553,667 | 270,017 | 164,396 | |||||||||||||||||||||||
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|
| |||||||||||||||
1,375,602 | 326,979 | 189,458 | 1,288,663 | 573,319 | 1,197,786 | 1,537,749 | 911,550 | |||||||||||||||||||||||
|
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| |||||||||||||||
(7,792,451 | ) | (720,435 | ) | (8,543,761 | ) | (3,515,353 | ) | (224,952 | ) | (9,792,401 | ) | (2,122,492 | ) | (1,215,138 | ) | |||||||||||||||
7,524,978 | — | 1,884,026 | 5,686,190 | 727,972 | 8,581,218 | 8,282,876 | 4,154,018 | |||||||||||||||||||||||
(6 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||
|
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|
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| |||||||||||||||
(267,479 | ) | (720,435 | ) | (6,659,735 | ) | 2,170,837 | 503,020 | (1,211,183 | ) | 6,160,384 | 2,938,880 | |||||||||||||||||||
|
|
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|
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|
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|
|
|
|
|
| |||||||||||||||
12,294,857 | 3,633,321 | 17,543,731 | 2,742,235 | 4,764,560 | 21,973,094 | 5,632,709 | 1,096,744 | |||||||||||||||||||||||
(29 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||
|
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| |||||||||||||||
12,294,828 | 3,633,321 | 17,543,731 | 2,742,235 | 4,764,560 | 21,973,094 | 5,632,709 | 1,096,744 | |||||||||||||||||||||||
|
|
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|
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|
|
|
|
|
| |||||||||||||||
12,027,349 | 2,912,886 | 10,883,996 | 4,913,072 | 5,267,580 | 20,761,911 | 11,793,093 | 4,035,624 | |||||||||||||||||||||||
|
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| |||||||||||||||
$ | 13,402,951 | $ | 3,239,865 | $ | 11,073,454 | $ | 6,201,735 | $ | 5,840,899 | $ | 21,959,697 | $ | 13,330,842 | $ | 4,947,174 | |||||||||||||||
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|
|
| 91 |
|
Statements of Changes in Net Assets
For the years ended April 30, 2017 and 2016
PowerShares Dynamic Large Cap Growth Portfolio (PWB) | PowerShares Dynamic Large Cap Value Portfolio (PWV) | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 3,144,641 | $ | 2,394,933 | $ | 22,134,979 | $ | 24,237,976 | ||||||||
Net realized gain (loss) | 34,454,292 | 6,768,820 | 112,075,768 | (23,521,415 | ) | |||||||||||
Net change in unrealized appreciation (depreciation) | 19,256,044 | 1,296,040 | 59,582,637 | (24,474,487 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 56,854,977 | 10,459,793 | 193,793,384 | (23,757,926 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net investment income | (3,353,714 | ) | (2,182,044 | ) | (22,676,158 | ) | (23,938,985 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shareholder Transactions: | ||||||||||||||||
Proceeds from shares sold | 372,304,835 | 266,442,635 | 1,311,062,395 | 396,601,556 | ||||||||||||
Value of shares repurchased | (428,505,381 | ) | (158,547,925 | ) | (1,200,505,766 | ) | (460,948,721 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from shares transactions | (56,200,546 | ) | 107,894,710 | 110,556,629 | (64,347,165 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Increase (Decrease) in Net Assets | (2,699,283 | ) | 116,172,459 | 281,673,855 | (112,044,076 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 443,751,868 | 327,579,409 | 975,298,822 | 1,087,342,898 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 441,052,585 | $ | 443,751,868 | $ | 1,256,972,677 | $ | 975,298,822 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income at end of year | $ | 330,271 | $ | 539,344 | $ | 2,944,814 | $ | 3,485,993 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Changes in Shares Outstanding: | ||||||||||||||||
Shares sold | 11,450,000 | 8,650,000 | 39,700,000 | 13,300,000 | ||||||||||||
Shares repurchased | (13,250,000 | ) | (5,100,000 | ) | (36,550,000 | ) | (15,400,000 | ) | ||||||||
Shares outstanding, beginning of year | 14,400,000 | 10,850,000 | 32,500,000 | 34,600,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding, end of year | 12,600,000 | 14,400,000 | 35,650,000 | 32,500,000 | ||||||||||||
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 92 |
|
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) | |||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||
$ | 148,722 | $ | 127,115 | $ | 82,543 | $ | 80,568 | $ | 1,375,602 | $ | 1,724,311 | $ | 326,979 | $ | 426,021 | |||||||||||||||
216,912 | 1,476,128 | (1,064,974 | ) | 5,313,096 | (267,479 | ) | 8,397,908 | (720,435 | ) | 5,053,874 | ||||||||||||||||||||
2,570,917 | (2,766,711 | ) | 6,816,011 | (8,134,006 | ) | 12,294,828 | (14,486,084 | ) | 3,633,321 | (6,753,851 | ) | |||||||||||||||||||
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| |||||||||||||||
2,936,551 | (1,163,468 | ) | 5,833,580 | (2,740,342 | ) | 13,402,951 | (4,363,865 | ) | 3,239,865 | (1,273,956 | ) | |||||||||||||||||||
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| |||||||||||||||
(170,196 | ) | (138,899 | ) | (78,015 | ) | (145,600 | ) | (1,722,034 | ) | (1,647,876 | ) | (354,780 | ) | (425,755 | ) | |||||||||||||||
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| |||||||||||||||
7,821,834 | 12,873,920 | 11,461,400 | 35,117,426 | 48,264,771 | 68,582,873 | — | 24,737,975 | |||||||||||||||||||||||
(1,786,067 | ) | (14,648,979 | ) | (9,740,909 | ) | (38,302,893 | ) | (36,198,182 | ) | (74,996,370 | ) | — | (33,973,183 | ) | ||||||||||||||||
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| |||||||||||||||
6,035,767 | (1,775,059 | ) | 1,720,491 | (3,185,467 | ) | 12,066,589 | (6,413,497 | ) | — | (9,235,208 | ) | |||||||||||||||||||
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| |||||||||||||||
8,802,122 | (3,077,426 | ) | 7,476,056 | (6,071,409 | ) | 23,747,506 | (12,425,238 | ) | 2,885,085 | (10,934,919 | ) | |||||||||||||||||||
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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 | |||||||||||||||||||||||
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| |||||||||||||||
$ | 21,877,429 | $ | 13,075,307 | $ | 34,195,291 | $ | 26,719,235 | $ | 83,415,121 | $ | 59,667,615 | $ | 26,242,419 | $ | 23,357,334 | |||||||||||||||
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|
|
|
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| |||||||||||||||
$ | 4,999 | $ | 14,585 | $ | 19,525 | $ | 14,997 | $ | 98,267 | $ | 322,551 | $ | 21,065 | $ | 48,478 | |||||||||||||||
|
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|
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|
|
|
|
|
|
| |||||||||||||||
200,000 | 350,000 | 450,000 | 1,350,000 | 1,800,000 | 2,600,000 | — | 600,000 | |||||||||||||||||||||||
(50,000 | ) | (400,000 | ) | (400,000 | ) | (1,500,000 | ) | (1,450,000 | ) | (2,900,000 | ) | — | (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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|
|
|
|
|
|
| |||||||||||||||
550,000 | 400,000 | 1,200,000 | 1,150,000 | 2,850,000 | 2,500,000 | 600,000 | 600,000 | |||||||||||||||||||||||
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|
|
| 93 |
|
Statements of Changes in Net Assets (continued)
For the years ended April 30, 2017 and 2016
PowerShares Russell Midcap Pure Growth Portfolio (PXMG) | PowerShares Russell Midcap Pure Value Portfolio (PXMV) | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 189,458 | $ | 192,398 | $ | 1,288,663 | $ | 1,160,598 | ||||||||
Net realized gain (loss) | (6,659,735 | ) | 16,044,559 | 2,170,837 | 10,092,452 | |||||||||||
Net change in unrealized appreciation (depreciation) | 17,543,731 | (24,188,266 | ) | 2,742,235 | (11,073,689 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 11,073,454 | (7,951,309 | ) | 6,201,735 | 179,361 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net investment income | (160,836 | ) | (409,368 | ) | (1,190,811 | ) | (1,090,750 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shareholder Transactions: | ||||||||||||||||
Proceeds from shares sold | 12,023,198 | 91,126,421 | 49,978,805 | 43,244,079 | ||||||||||||
Value of shares repurchased | (21,983,708 | ) | (103,621,188 | ) | (37,150,015 | ) | (44,306,740 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from shares transactions | (9,960,510 | ) | (12,494,767 | ) | 12,828,790 | (1,062,661 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Increase (Decrease) in Net Assets | 952,108 | (20,855,444 | ) | 17,839,714 | (1,974,050 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 67,014,994 | 87,870,438 | 50,363,596 | 52,337,646 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 67,967,102 | $ | 67,014,994 | $ | 68,203,310 | $ | 50,363,596 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income at end of year | $ | 45,489 | $ | 16,867 | $ | 291,580 | $ | 193,728 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Changes in Shares Outstanding: | ||||||||||||||||
Shares sold | 400,000 | 2,800,000 | 1,650,000 | 1,550,000 | ||||||||||||
Shares repurchased | (750,000 | ) | (3,250,000 | ) | (1,300,000 | ) | (1,600,000 | ) | ||||||||
Shares outstanding, beginning of year | 2,300,000 | 2,750,000 | 1,850,000 | 1,900,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding, end of year | 1,950,000 | 2,300,000 | 2,200,000 | 1,850,000 | ||||||||||||
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 94 |
|
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) | |||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||
$ | 573,319 | $ | 735,628 | $ | 1,197,786 | $ | 1,176,283 | $ | 1,537,749 | $ | 1,194,351 | $ | 911,550 | $ | 344,756 | |||||||||||||||
503,020 | 7,178,998 | (1,211,183 | ) | 31,202,722 | 6,160,384 | 2,691,966 | 2,938,880 | (1,028,304 | ) | |||||||||||||||||||||
4,764,560 | (8,004,214 | ) | 21,973,094 | (32,667,566 | ) | 5,632,709 | (1,493,930 | ) | 1,096,744 | 22,641 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
5,840,899 | (89,588 | ) | 21,959,697 | (288,561 | ) | 13,330,842 | 2,392,387 | 4,947,174 | (660,907 | ) | ||||||||||||||||||||
|
|
|
|
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|
|
|
|
|
|
|
|
| |||||||||||||||
(585,203 | ) | (736,635 | ) | (1,357,534 | ) | (1,168,868 | ) | (1,576,335 | ) | (1,133,932 | ) | (1,069,483 | ) | (314,529 | ) | |||||||||||||||
|
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|
|
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|
|
|
|
|
| |||||||||||||||
6,718,231 | 30,707,855 | 37,553,154 | 179,576,353 | 46,557,912 | 57,153,056 | 19,783,952 | — | |||||||||||||||||||||||
(6,075,183 | ) | (38,325,557 | ) | (63,314,455 | ) | (172,206,268 | ) | (51,570,518 | ) | (31,730,490 | ) | (20,698,564 | ) | (6,919,902 | ) | |||||||||||||||
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|
|
|
|
| |||||||||||||||
643,048 | (7,617,702 | ) | (25,761,301 | ) | 7,370,085 | (5,012,606 | ) | 25,422,566 | (914,612 | ) | (6,919,902 | ) | ||||||||||||||||||
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|
| |||||||||||||||
5,898,744 | (8,443,925 | ) | (5,159,138 | ) | 5,912,656 | 6,741,901 | 26,681,021 | 2,963,079 | (7,895,338 | ) | ||||||||||||||||||||
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|
|
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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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$ | 39,703,431 | $ | 33,804,687 | $ | 146,255,624 | $ | 151,414,762 | $ | 74,770,430 | $ | 68,028,529 | $ | 23,987,364 | $ | 21,024,285 | |||||||||||||||
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$ | 69,479 | $ | 81,363 | $ | 142,666 | $ | 302,414 | $ | 134,805 | $ | 173,391 | $ | 56,423 | $ | 93,697 | |||||||||||||||
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150,000 | 750,000 | 1,100,000 | 5,350,000 | 1,400,000 | 2,000,000 | 1,100,000 | — | |||||||||||||||||||||||
(150,000 | ) | (950,000 | ) | (1,900,000 | ) | (5,050,000 | ) | (1,600,000 | ) | (1,050,000 | ) | (1,150,000 | ) | (450,000 | ) | |||||||||||||||
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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850,000 | 850,000 | 3,800,000 | 4,600,000 | 2,100,000 | 2,300,000 | 1,300,000 | 1,350,000 | |||||||||||||||||||||||
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| 95 |
|
PowerShares Dynamic Large Cap Growth Portfolio (PWB)
Year Ended April 30, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 30.82 | $ | 30.19 | $ | 25.62 | $ | 21.29 | $ | 18.73 | ||||||||||
Net investment income(a) | 0.24 | 0.19 | 0.18 | 0.10 | 0.21 | |||||||||||||||
Net realized and unrealized gain on investments | 4.19 | 0.62 | 4.56 | 4.34 | 2.55 | |||||||||||||||
Total from investment operations | 4.43 | 0.81 | 4.74 | 4.44 | 2.76 | |||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.25 | ) | (0.18 | ) | (0.17 | ) | (0.11 | ) | (0.20 | ) | ||||||||||
Net asset value at end of year | $ | 35.00 | $ | 30.82 | $ | 30.19 | $ | 25.62 | $ | 21.29 | ||||||||||
Market price at end of year(b) | $ | 35.02 | $ | 30.81 | $ | 30.17 | $ | 25.62 | $ | 21.28 | ||||||||||
Net Asset Value Total Return(c) | 14.46 | % | 2.70 | % | 18.52 | % | 20.91 | % | 14.91 | % | ||||||||||
Market Price Total Return(c) | 14.57 | % | 2.73 | % | 18.44 | % | 20.96 | % | 14.92 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 441,053 | $ | 443,752 | $ | 327,579 | $ | 285,675 | $ | 212,897 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.57 | % | 0.57 | % | 0.58 | % | 0.58 | % | 0.59 | % | ||||||||||
Expenses, prior to Waivers | 0.57 | % | 0.57 | % | 0.58 | % | 0.58 | % | 0.59 | % | ||||||||||
Net investment income, after Waivers | 0.74 | % | 0.64 | % | 0.63 | % | 0.43 | % | 1.08 | % | ||||||||||
Portfolio turnover rate(d) | 116 | % | 97 | % | 143 | % | 123 | % | 47 | % |
(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, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 30.01 | $ | 31.43 | $ | 29.51 | $ | 25.21 | $ | 20.73 | ||||||||||
Net investment income(a) | 0.67 | 0.73 | 0.64 | 0.55 | 0.52 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 5.28 | (1.43 | ) | 1.88 | 4.30 | 4.48 | ||||||||||||||
Total from investment operations | 5.95 | (0.70 | ) | 2.52 | 4.85 | 5.00 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.70 | ) | (0.72 | ) | (0.60 | ) | (0.55 | ) | (0.52 | ) | ||||||||||
Net asset value at end of year | $ | 35.26 | $ | 30.01 | $ | 31.43 | $ | 29.51 | $ | 25.21 | ||||||||||
Market price at end of year(b) | $ | 35.27 | $ | 30.00 | $ | 31.42 | $ | 29.49 | $ | 25.22 | ||||||||||
Net Asset Value Total Return(c) | 20.06 | % | (2.17 | )% | 8.56 | % | 19.48 | % | 24.55 | % | ||||||||||
Market Price Total Return(c) | 20.14 | % | (2.18 | )% | 8.60 | % | 19.35 | % | 24.72 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 1,256,973 | $ | 975,299 | $ | 1,087,343 | $ | 801,088 | $ | 574,825 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.56 | % | 0.57 | % | 0.57 | % | 0.57 | % | 0.59 | % | ||||||||||
Expenses, prior to Waivers | 0.56 | % | 0.57 | % | 0.57 | % | 0.57 | % | 0.59 | % | ||||||||||
Net investment income, after Waivers | 2.04 | % | 2.44 | % | 2.10 | % | 2.04 | % | 2.36 | % | ||||||||||
Portfolio turnover rate(d) | 118 | % | 98 | % | 82 | % | 103 | % | 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.
| 96 |
|
Financial Highlights (continued)
PowerShares Russell 2000 Equal Weight Portfolio (EQWS)
Year Ended April 30, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 32.69 | $ | 35.89 | $ | 32.85 | $ | 27.80 | $ | 24.21 | ||||||||||
Net investment income(a) | 0.36 | 0.31 | 0.41 | 0.33 | 0.46 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 7.19 | (3.17 | ) | 3.03 | 5.12 | 3.60 | ||||||||||||||
Total from investment operations | 7.55 | (2.86 | ) | 3.44 | 5.45 | 4.06 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.46 | ) | (0.34 | ) | (0.40 | ) | (0.40 | ) | (0.47 | ) | ||||||||||
Net asset value at end of year | $ | 39.78 | $ | 32.69 | $ | 35.89 | $ | 32.85 | $ | 27.80 | ||||||||||
Market price at end of year(b) | $ | 39.77 | $ | 32.71 | $ | 35.90 | $ | 32.84 | $ | 27.76 | ||||||||||
Net Asset Value Total Return(c) | 23.21 | % | (8.00 | )% | 10.53 | % | 19.76 | % | 17.05 | % | ||||||||||
Market Price Total Return(c) | 23.11 | % | (7.97 | )% | 10.59 | % | 19.90 | % | 17.03 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 21,877 | $ | 13,075 | $ | 16,153 | $ | 14,784 | $ | 15,290 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.25 | % | 0.26 | %(d) | 0.39 | %(d) | 0.39 | % | 0.39 | % | ||||||||||
Expenses, prior to Waivers | 1.00 | % | 1.17 | %(d) | 0.98 | %(d) | 0.94 | % | 1.22 | % | ||||||||||
Net investment income, after Waivers | 0.98 | % | 0.94 | % | 1.20 | % | 1.06 | % | 1.88 | % | ||||||||||
Portfolio turnover rate(e) | 47 | % | 143 | % | 7 | % | 50 | % | 45 | % |
(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.
| 97 |
|
Financial Highlights (continued)
PowerShares Russell 2000 Pure Growth Portfolio (PXSG)
Year Ended April 30, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 23.23 | $ | 25.22 | $ | 23.90 | $ | 19.74 | $ | 17.66 | ||||||||||
Net investment income(a) | 0.07 | 0.06 | 0.25 | 0.20 | 0.13 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 5.27 | (1.93 | ) | 1.39 | 4.17 | 2.08 | ||||||||||||||
Total from investment operations | 5.34 | (1.87 | ) | 1.64 | 4.37 | 2.21 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.07 | ) | (0.12 | ) | (0.32 | ) | (0.21 | ) | (0.13 | ) | ||||||||||
Net asset value at end of year | $ | 28.50 | $ | 23.23 | $ | 25.22 | $ | 23.90 | $ | 19.74 | ||||||||||
Market price at end of year(b) | $ | 28.49 | $ | 23.26 | $ | 25.21 | $ | 23.89 | $ | 19.72 | ||||||||||
Net Asset Value Total Return(c) | 23.02 | % | (7.47 | )% | 6.92 | % | 22.31 | % | 12.63 | % | ||||||||||
Market Price Total Return(c) | 22.82 | % | (7.31 | )% | 6.92 | % | 22.38 | % | 12.65 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 34,195 | $ | 26,719 | $ | 32,791 | $ | 29,872 | $ | 26,646 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.39 | % | 0.39 | %(d) | 0.39 | %(d) | 0.39 | %(d) | 0.39 | %(d) | ||||||||||
Expenses, prior to Waivers | 0.65 | % | 0.67 | %(d) | 0.69 | %(d) | 0.70 | %(d) | 0.92 | %(d) | ||||||||||
Net investment income, after Waivers | 0.29 | % | 0.27 | % | 1.02 | % | 0.90 | % | 0.72 | % | ||||||||||
Portfolio turnover rate(e) | 55 | % | 144 | % | 6 | % | 39 | % | 39 | % |
(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.
| 98 |
|
Financial Highlights (continued)
PowerShares Russell 2000 Pure Value Portfolio (PXSV)
Year Ended April 30, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 23.87 | $ | 25.75 | $ | 24.67 | $ | 19.63 | $ | 16.35 | ||||||||||
Net investment income(a) | 0.52 | 0.63 | 0.42 | 0.30 | 0.32 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 5.55 | (1.91 | ) | 1.03 | 5.03 | 3.31 | ||||||||||||||
Total from investment operations | 6.07 | (1.28 | ) | 1.45 | 5.33 | 3.63 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.67 | ) | (0.60 | ) | (0.37 | ) | (0.29 | ) | (0.35 | ) | ||||||||||
Net asset value at end of year | $ | 29.27 | $ | 23.87 | $ | 25.75 | $ | 24.67 | $ | 19.63 | ||||||||||
Market price at end of year(b) | $ | 29.26 | $ | 23.88 | $ | 25.75 | $ | 24.68 | $ | 19.61 | ||||||||||
Net Asset Value Total Return(c) | 25.64 | % | (4.93 | )% | 5.91 | % | 27.29 | % | 22.56 | % | ||||||||||
Market Price Total Return(c) | 25.54 | % | (4.90 | )% | 5.87 | % | 27.47 | % | 22.58 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 83,415 | $ | 59,668 | $ | 72,093 | $ | 65,376 | $ | 48,084 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.39 | % | 0.39 | % | 0.39 | % | 0.39 | % | 0.39 | % | ||||||||||
Expenses, prior to Waivers | 0.46 | % | 0.50 | % | 0.55 | % | 0.54 | % | 0.70 | % | ||||||||||
Net investment income, after Waivers | 1.90 | % | 2.67 | % | 1.65 | % | 1.31 | % | 1.87 | % | ||||||||||
Portfolio turnover rate(d) | 50 | % | 137 | % | 5 | % | 43 | % | 31 | % |
(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, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 38.93 | $ | 40.34 | $ | 36.31 | $ | 30.41 | $ | 26.60 | ||||||||||
Net investment income(a) | 0.54 | 0.56 | 0.50 | 0.40 | 0.43 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 4.86 | (1.41 | ) | 4.03 | 5.90 | 3.80 | ||||||||||||||
Total from investment operations | 5.40 | (0.85 | ) | 4.53 | 6.30 | 4.23 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.59 | ) | (0.56 | ) | (0.50 | ) | (0.40 | ) | (0.42 | ) | ||||||||||
Net asset value at end of year | $ | 43.74 | $ | 38.93 | $ | 40.34 | $ | 36.31 | $ | 30.41 | ||||||||||
Market price at end of year(b) | $ | 43.74 | $ | 38.89 | $ | 40.35 | $ | 36.25 | $ | 30.39 | ||||||||||
Net Asset Value Total Return(c) | 14.00 | % | (2.02 | )% | 12.52 | % | 20.85 | % | 16.16 | % | ||||||||||
Market Price Total Return(c) | 14.11 | % | (2.14 | )% | 12.73 | % | 20.73 | % | 16.00 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year(000’s omitted) | $ | 26,242 | $ | 23,357 | $ | 34,292 | $ | 30,867 | $ | 19,768 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.25 | % | 0.26 | % | 0.39 | % | 0.39 | % | 0.39 | % | ||||||||||
Expenses, prior to Waivers | 0.68 | % | 0.69 | % | 0.66 | % | 0.69 | % | 1.00 | % | ||||||||||
Net investment income, after Waivers | 1.32 | % | 1.50 | % | 1.31 | % | 1.19 | % | 1.58 | % | ||||||||||
Portfolio turnover rate(d) | 36 | % | 135 | % | 5 | % | 50 | % | 38 | % |
(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.
| 99 |
|
Financial Highlights (continued)
PowerShares Russell Midcap Pure Growth Portfolio (PXMG)
Year Ended April 30, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 29.14 | $ | 31.95 | $ | 30.02 | $ | 26.06 | $ | 22.65 | ||||||||||
Net investment income(a) | 0.09 | 0.07 | 0.47 | 0.33 | 0.26 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 5.70 | (2.72 | ) | 1.92 | 4.01 | 3.38 | ||||||||||||||
Total from investment operations | 5.79 | (2.65 | ) | 2.39 | 4.34 | 3.64 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.08 | ) | (0.16 | ) | (0.46 | ) | (0.38 | ) | (0.23 | ) | ||||||||||
Net asset value at end of year | $ | 34.85 | $ | 29.14 | $ | 31.95 | $ | 30.02 | $ | 26.06 | ||||||||||
Market price at end of year(b) | $ | 34.85 | $ | 29.12 | $ | 31.95 | $ | 29.99 | $ | 26.04 | ||||||||||
Net Asset Value Total Return(c) | 19.89 | % | (8.34 | )% | 7.98 | % | 16.80 | % | 16.23 | % | ||||||||||
Market Price Total Return(c) | 19.98 | % | (8.40 | )% | 8.09 | % | 16.77 | % | 16.25 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 67,967 | $ | 67,015 | $ | 87,870 | $ | 91,555 | $ | 82,101 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.39 | % | 0.39 | % | 0.39 | % | 0.39 | % | 0.39 | % | ||||||||||
Expenses, prior to Waivers | 0.46 | % | 0.44 | % | 0.46 | % | 0.45 | % | 0.54 | % | ||||||||||
Net investment income, after Waivers | 0.30 | % | 0.25 | % | 1.51 | % | 1.19 | % | 1.14 | % | ||||||||||
Portfolio turnover rate(d) | 49 | % | 147 | % | 3 | % | 33 | % | 33 | % |
(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, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 27.22 | $ | 27.55 | $ | 25.88 | $ | 20.98 | $ | 17.06 | ||||||||||
Net investment income(a) | 0.68 | 0.68 | 0.43 | 0.37 | 0.37 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 3.80 | (0.37 | ) | 1.63 | 4.87 | 3.94 | ||||||||||||||
Total from investment operations | 4.48 | 0.31 | 2.06 | 5.24 | 4.31 | |||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.70 | ) | (0.64 | ) | (0.39 | ) | (0.34 | ) | (0.39 | ) | ||||||||||
Net asset value at end of year | $ | 31.00 | $ | 27.22 | $ | 27.55 | $ | 25.88 | $ | 20.98 | ||||||||||
Market price at end of year(b) | $ | 31.00 | $ | 27.21 | $ | 27.53 | $ | 25.87 | $ | 20.98 | ||||||||||
Net Asset Value Total Return(c) | 16.60 | % | 1.35 | % | 7.98 | % | 25.19 | % | 25.74 | % | ||||||||||
Market Price Total Return(c) | 16.64 | % | 1.39 | % | 7.94 | % | 25.14 | % | 25.89 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 68,203 | $ | 50,364 | $ | 52,338 | $ | 42,709 | $ | 28,321 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.39 | % | 0.39 | %(d) | 0.39 | %(d) | 0.39 | % | 0.39 | % | ||||||||||
Expenses, prior to Waivers | 0.49 | % | 0.54 | %(d) | 0.56 | %(d) | 0.62 | % | 0.82 | % | ||||||||||
Net investment income, after Waivers | 2.28 | % | 2.62 | % | 1.58 | % | 1.56 | % | 2.08 | % | ||||||||||
Portfolio turnover rate(e) | 39 | % | 131 | % | 4 | % | 33 | % | 25 | % |
(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, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 39.77 | $ | 40.24 | $ | 37.06 | $ | 30.97 | $ | 26.66 | ||||||||||
Net investment income(a) | 0.74 | 0.78 | 0.75 | 0.63 | 0.65 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 6.95 | (0.48 | ) | 3.14 | 6.03 | 4.35 | ||||||||||||||
Total from investment operations | 7.69 | 0.30 | 3.89 | 6.66 | 5.00 | |||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.75 | ) | (0.77 | ) | (0.71 | ) | (0.57 | ) | (0.69 | ) | ||||||||||
Net asset value at end of year | $ | 46.71 | $ | 39.77 | $ | 40.24 | $ | 37.06 | $ | 30.97 | ||||||||||
Market price at end of year(b) | $ | 46.75 | $ | 39.73 | $ | 40.21 | $ | 37.08 | $ | 30.98 | ||||||||||
Net Asset Value Total Return(c) | 19.58 | % | 0.81 | % | 10.52 | % | 21.69 | % | 19.10 | % | ||||||||||
Market Price Total Return(c) | 19.80 | % | 0.78 | % | 10.38 | % | 21.72 | % | 19.15 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 39,703 | $ | 33,805 | $ | 42,249 | $ | 40,770 | $ | 27,874 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.25 | % | 0.26 | % | 0.39 | % | 0.39 | % | 0.39 | % | ||||||||||
Expenses, prior to Waivers | 0.54 | % | 0.54 | % | 0.57 | % | 0.60 | % | 0.80 | % | ||||||||||
Net investment income, after Waivers | 1.74 | % | 1.99 | % | 1.92 | % | 1.85 | % | 2.38 | % | ||||||||||
Portfolio turnover rate(d) | 27 | % | 101 | % | 3 | % | 38 | % | 43 | % |
(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, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 32.92 | $ | 33.84 | $ | 29.53 | $ | 25.10 | $ | 22.20 | ||||||||||
Net investment income(a) | 0.29 | 0.28 | 0.55 | 0.50 | 0.39 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 5.61 | (0.91 | ) | 4.29 | 4.57 | 2.87 | ||||||||||||||
Total from investment operations | 5.90 | (0.63 | ) | 4.84 | 5.07 | 3.26 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.33 | ) | (0.29 | ) | (0.53 | ) | (0.62 | ) | (0.36 | ) | ||||||||||
Net realized gains | — | — | — | (0.02 | ) | — | ||||||||||||||
Total distributions | (0.33 | ) | (0.29 | ) | (0.53 | ) | (0.64 | ) | (0.36 | ) | ||||||||||
Net asset value at end of year | $ | 38.49 | $ | 32.92 | $ | 33.84 | $ | 29.53 | $ | 25.10 | ||||||||||
Market price at end of year(b) | $ | 38.50 | $ | 32.92 | $ | 33.82 | $ | 29.52 | $ | 25.08 | ||||||||||
Net Asset Value Total Return(c) | 18.06 | % | (1.89 | )% | 16.49 | % | 20.54 | % | 14.87 | % | ||||||||||
Market Price Total Return(c) | 18.09 | % | (1.83 | )% | 16.46 | % | 20.59 | % | 14.83 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 146,256 | $ | 151,415 | $ | 145,502 | $ | 106,322 | $ | 82,816 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.39 | % | 0.39 | % | 0.39 | % | 0.39 | % | 0.39 | % | ||||||||||
Expenses, prior to Waivers | 0.39 | % | 0.39 | % | 0.43 | % | 0.45 | % | 0.79 | % | ||||||||||
Net investment income, after Waivers | 0.84 | % | 0.85 | % | 1.73 | % | 1.84 | % | 1.63 | % | ||||||||||
Portfolio turnover rate(d) | 30 | % | 105 | % | 2 | % | 22 | % | 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. 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, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 29.58 | $ | 30.63 | $ | 29.40 | $ | 25.16 | $ | 20.37 | ||||||||||
Net investment income(a) | 0.73 | 0.80 | 0.72 | 0.63 | 0.52 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 6.13 | (1.09 | ) | 1.16 | 4.17 | 4.77 | ||||||||||||||
Total from investment operations | 6.86 | (0.29 | ) | 1.88 | 4.80 | 5.29 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.84 | ) | (0.76 | ) | (0.65 | ) | (0.54 | ) | (0.50 | ) | ||||||||||
Net realized gains | — | — | — | (0.02 | ) | — | ||||||||||||||
Total distributions | (0.84 | ) | (0.76 | ) | (0.65 | ) | (0.56 | ) | (0.50 | ) | ||||||||||
Net asset value at end of year | $ | 35.60 | $ | 29.58 | $ | 30.63 | $ | 29.40 | $ | 25.16 | ||||||||||
Market price at end of year(b) | $ | 35.63 | $ | 29.55 | $ | 30.62 | $ | 29.39 | $ | 25.16 | ||||||||||
Net Asset Value Total Return(c) | 23.47 | % | (0.84 | )% | 6.41 | % | 19.27 | % | 26.41 | % | ||||||||||
Market Price Total Return(c) | 23.69 | % | (0.92 | )% | 6.41 | % | 19.23 | % | 26.53 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 74,770 | $ | 68,029 | $ | 41,348 | $ | 14,701 | $ | 7,549 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.39 | % | 0.39 | % | 0.39 | % | 0.39 | % | 0.39 | % | ||||||||||
Expenses, prior to Waivers | 0.46 | % | 0.55 | % | 0.62 | % | 1.05 | % | 2.10 | % | ||||||||||
Net investment income, after Waivers | 2.23 | % | 2.78 | % | 2.37 | % | 2.32 | % | 2.43 | % | ||||||||||
Portfolio turnover rate(d) | 28 | % | 77 | % | 2 | % | 23 | % | 9 | % |
(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 Zacks Micro Cap Portfolio (PZI)
Year Ended April 30, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 15.57 | $ | 16.07 | $ | 16.26 | $ | 13.57 | $ | 11.34 | ||||||||||
Net investment income(a) | 0.67 | (b) | 0.21 | 0.21 | 0.20 | 0.20 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 3.00 | (0.52 | ) | (0.09 | ) | 2.65 | 2.25 | |||||||||||||
Total from investment operations | 3.67 | (0.31 | ) | 0.12 | 2.85 | 2.45 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.79 | ) | (0.19 | ) | (0.31 | ) | (0.16 | ) | (0.22 | ) | ||||||||||
Net asset value at end of year | $ | 18.45 | $ | 15.57 | $ | 16.07 | $ | 16.26 | $ | 13.57 | ||||||||||
Market price at end of year(c) | $ | 18.44 | $ | 15.57 | $ | 16.05 | $ | 16.25 | $ | 13.54 | ||||||||||
Net Asset Value Total Return(d) | 23.87 | % | (1.94 | )% | 0.71 | % | 21.06 | % | 21.95 | % | ||||||||||
Market Price Total Return(d) | 23.81 | % | (1.82 | )% | 0.64 | % | 21.25 | % | 21.90 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 23,987 | $ | 21,024 | $ | 28,920 | $ | 61,782 | $ | 42,055 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers(e) | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | ||||||||||
Expenses, prior to Waivers(e) | 1.04 | % | 1.00 | % | 0.90 | % | 0.79 | % | 0.98 | % | ||||||||||
Net investment income, after Waivers | 3.89 | %(b) | 1.37 | % | 1.28 | % | 1.29 | % | 1.72 | % | ||||||||||
Portfolio turnover rate(f) | 141 | % | 134 | % | 115 | % | 123 | % | 96 | % |
(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 period. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividend are $0.25 and 1.45%, 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. |
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, 2017
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, 2017, 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 following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.
Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services—Investment Companies.
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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 Mid-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 mid-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 mid-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 accounting principles generally accepted in the United States of America (“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”), any Trustee who is not an affiliate of the Adviser or Distributor (or any of their affiliates) and who is otherwise an “interested person” of the Trust under the 1940 Act (an “Unaffiliated Trustee”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees and any Unaffiliated Trustee, 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.
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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. Accounting Estimates
The preparation of the financial statements in accordance with 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.
I. Securities Lending
During the fiscal year ended April 30, 2017, 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, Russell Midcap Pure Value Portfolio, Russell Top 200 Pure Growth 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 generally 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% 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, 2018. 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% of the Fund’s average daily net assets per year, through at least August 31, 2018. 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, 2018, and sub-licensing fees are excluded from the expenses subject to the Expense Cap for these Funds in addition to the excluded expenses above. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2018. 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
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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, 2019, 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, 2017, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:
Dynamic Large Cap Growth Portfolio | $ | 502 | ||
Dynamic Large Cap Value Portfolio | 1,343 | |||
Russell 2000 Equal Weight Portfolio | 114,365 | |||
Russell 2000 Pure Growth Portfolio | 74,440 | |||
Russell 2000 Pure Value Portfolio | 48,779 | |||
Russell Midcap Equal Weight Portfolio | 106,412 | |||
Russell Midcap Pure Growth Portfolio | 45,058 | |||
Russell Midcap Pure Value Portfolio | 54,360 | |||
Russell Top 200 Equal Weight Portfolio | 97,214 | |||
Russell Top 200 Pure Growth Portfolio | 263 | |||
Russell Top 200 Pure Value Portfolio | 45,396 | |||
Zacks Micro Cap Portfolio | 79,349 |
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, 2017 are as follows:
Total Potential Recapture Amounts | Potential Recapture Amounts Expiring | |||||||||||||||
4/30/18 | 4/30/19 | 4/30/20 | ||||||||||||||
Russell 2000 Equal Weight Portfolio | $ | 328,201 | $ | 91,595 | $ | 122,351 | $ | 114,255 | ||||||||
Russell 2000 Pure Growth Portfolio | 253,103 | 93,101 | 85,694 | 74,308 | ||||||||||||
Russell 2000 Pure Value Portfolio | 226,526 | 108,992 | 68,966 | 48,568 | ||||||||||||
Russell Midcap Equal Weight Portfolio | 307,486 | 80,056 | 121,137 | 106,293 | ||||||||||||
Russell Midcap Pure Growth Portfolio | 152,118 | 64,245 | 42,984 | 44,889 | ||||||||||||
Russell Midcap Pure Value Portfolio | 208,383 | 86,833 | 67,330 | 54,220 | ||||||||||||
Russell Top 200 Equal Weight Portfolio | 277,390 | 76,197 | 104,089 | 97,104 | ||||||||||||
Russell Top 200 Pure Growth Portfolio | 45,493 | 45,493 | — | — | ||||||||||||
Russell Top 200 Pure Value Portfolio | 192,745 | 79,809 | 67,669 | 45,267 | ||||||||||||
Zacks Micro Cap Portfolio | 232,325 | 77,042 | 76,103 | 79,180 |
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 |
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Fund | Licensor | |
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 |
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 tables below show certain Funds’ transactions in, and earnings from, investments in affiliates for the fiscal year ended April 30, 2017.
Russell 2000 Equal Weight Portfolio
Value April 30, 2016 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain (Loss) | Value April 30, 2017 | Dividend Income | ||||||||||||||||||||||
Invesco Mortgage Capital, Inc. REIT | $ | 3,238 | $ | 1,997 | $ | (1,113 | ) | $ | 922 | $ | (21 | ) | $ | 5,023 | $ | 372 |
Russell 2000 Pure Value Portfolio
Value April 30, 2016 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain (Loss) | Value April 30, 2017 | Dividend Income | ||||||||||||||||||||||
Invesco Mortgage Capital, Inc. REIT | $ | 257,964 | $ | 253,532 | $ | (145,978 | ) | $ | 90,363 | $ | (8,595 | ) | $ | 447,286 | $ | 38,332 |
Russell Midcap Equal Weight Portfolio
Value April 30, 2016 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain (Loss) | Value April 30, 2017 | Dividend Income | ||||||||||||||||||||||
Invesco Ltd. | $ | 12,559 | $ | 2,591 | $ | (1,158 | ) | $ | 1,538 | $ | (345 | ) | $ | 15,185 | $ | 479 |
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, 2017, 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 | $ | 22,338,602 | $ | — | $ | 1,567 | $ | 22,340,169 | ||||||||
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Russell 2000 Pure Value Portfolio | ||||||||||||||||
Equity Securities | $ | 88,143,942 | $ | — | $ | 0 | $ | 88,143,942 | ||||||||
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Zacks Micro Cap Portfolio | ||||||||||||||||
Equity Securities | $ | 25,695,022 | $ | — | $ | 2,209 | $ | 25,697,231 | ||||||||
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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, 2017 and 2016:
2017 | 2016 | |||||||
Ordinary Income | Ordinary Income | |||||||
Dynamic Large Cap Growth Portfolio | $ | 3,353,714 | $ | 2,182,044 | ||||
Dynamic Large Cap Value Portfolio | 22,676,158 | 23,938,985 | ||||||
Russell 2000 Equal Weight Portfolio | 170,196 | 138,899 | ||||||
Russell 2000 Pure Growth Portfolio | 78,015 | 145,600 | ||||||
Russell 2000 Pure Value Portfolio | 1,722,034 | 1,647,876 | ||||||
Russell Midcap Equal Weight Portfolio | 354,780 | 425,755 | ||||||
Russell Midcap Pure Growth Portfolio | 160,836 | 409,368 | ||||||
Russell Midcap Pure Value Portfolio | 1,190,811 | 1,090,750 | ||||||
Russell Top 200 Equal Weight Portfolio | 585,203 | 736,635 | ||||||
Russell Top 200 Pure Growth Portfolio | 1,357,534 | 1,168,868 | ||||||
Russell Top 200 Pure Value Portfolio | 1,576,335 | 1,133,932 | ||||||
Zacks Micro Cap Portfolio | 1,069,483 | 314,529 |
Tax Components of Net Assets at Fiscal Year-End:
Undistributed Ordinary Income | Temporary Book/Tax Differences | Net Unrealized Appreciation— Investment Securities | Net Unrealized Appreciation (Depreciation)— Other Investments | Capital Loss Carryforwards | Post-October Capital Losses Deferrals* | Shares of Beneficial Interest | Total Net Assets | |||||||||||||||||||||||||
Dynamic Large Cap Growth Portfolio | $ | 364,230 | $ | (33,959 | ) | $ | 53,609,967 | $ | — | $ | (193,281,817 | ) | $ | (4,688,824 | ) | $ | 585,082,988 | $ | 441,052,585 | |||||||||||||
Dynamic Large Cap Value Portfolio | 2,990,368 | (45,554 | ) | 95,362,691 | — | (213,426,146 | ) | (7,008,629 | ) | 1,379,099,947 | 1,256,972,677 | |||||||||||||||||||||
Russell 2000 Equal Weight Portfolio | 25,126 | (15,173 | ) | 1,925,808 | — | (7,656,420 | ) | (23,073 | ) | 27,621,161 | 21,877,429 | |||||||||||||||||||||
Russell 2000 Pure Growth Portfolio | 36,049 | (16,524 | ) | 3,591,739 | — | (25,923,798 | ) | — | 56,507,825 | 34,195,291 | ||||||||||||||||||||||
Russell 2000 Pure Value Portfolio | 116,709 | (18,442 | ) | 6,063,264 | (27 | ) | (28,930,390 | ) | (155,293 | ) | 106,339,300 | 83,415,121 | ||||||||||||||||||||
Russell Midcap Equal Weight Portfolio | 36,714 | (15,649 | ) | 1,646,904 | — | (7,835,286 | ) | (128,057 | ) | 32,537,793 | 26,242,419 | |||||||||||||||||||||
Russell Midcap Pure Growth Portfolio | 68,983 | (23,494 | ) | 10,191,531 | — | (115,309,272 | ) | — | 173,039,354 | 67,967,102 | ||||||||||||||||||||||
Russell Midcap Pure Value Portfolio | 308,744 | (17,164 | ) | 711,738 | — | (27,662,549 | ) | (82,354 | ) | 94,944,895 | 68,203,310 | |||||||||||||||||||||
Russell Top 200 Equal Weight Portfolio | 85,722 | (16,243 | ) | 4,478,672 | — | (8,724,092 | ) | — | 43,879,372 | 39,703,431 |
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Undistributed Ordinary Income | Temporary Book/Tax Differences | Net Unrealized Appreciation— Investment Securities | Net Unrealized Appreciation (Depreciation)— Other Investments | Capital Loss Carryforwards | Post-October Capital Losses Deferrals* | Shares of Beneficial Interest | Total Net Assets | |||||||||||||||||||||||||
Russell Top 200 Pure Growth Portfolio | $ | 155,444 | $ | (12,778 | ) | $ | 19,849,049 | $ | — | $ | (10,329,158 | ) | $ | (22,177 | ) | $ | 136,615,244 | $ | 146,255,624 | |||||||||||||
Russell Top 200 Pure Value Portfolio | 145,692 | (10,887 | ) | 6,039,424 | — | (2,042,128 | ) | — | 70,638,329 | 74,770,430 | ||||||||||||||||||||||
Zacks Micro Cap Portfolio | 77,139 | (18,047 | ) | 2,557,652 | — | (41,481,146 | ) | (1,405,831 | ) | 64,257,597 | 23,987,364 |
* | 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, 2017:
Post-effective/no expiration | ||||||||||||||||||||||||
2018 | 2019 | Short-Term | Long-Term | Total* | Expired | |||||||||||||||||||
Dynamic Large Cap Growth Portfolio | $ | 131,638,879 | $ | 15,986,258 | $ | 44,638,676 | $ | 1,018,004 | $ | 193,281,817 | $ | 68,715,641 | ||||||||||||
Dynamic Large Cap Value Portfolio | 56,819,182 | 17,964,198 | 119,916,863 | 18,725,903 | 213,426,146 | 22,558,581 | ||||||||||||||||||
Russell 2000 Equal Weight Portfolio | 2,009,294 | 2,491,519 | 1,968,785 | 1,186,822 | 7,656,420 | 2,738,120 | ||||||||||||||||||
Russell 2000 Pure Growth Portfolio | 10,392,627 | 4,547,805 | 6,459,754 | 4,523,612 | 25,923,798 | 9,888,431 | ||||||||||||||||||
Russell 2000 Pure Value Portfolio | 9,588,502 | 5,376,983 | 7,538,252 | 6,426,653 | 28,930,390 | 16,547,947 | ||||||||||||||||||
Russell Midcap Equal Weight Portfolio | 3,611,366 | 741,893 | 1,781,930 | 1,700,097 | 7,835,286 | 3,815,763 | ||||||||||||||||||
Russell Midcap Pure Growth Portfolio | 82,364,246 | 12,021,724 | 12,534,125 | 8,389,177 | 115,309,272 | 54,769,394 | ||||||||||||||||||
Russell Midcap Pure Value Portfolio | 18,996,863 | 2,751,107 | 4,741,951 | 1,172,628 | 27,662,549 | 12,697,113 | ||||||||||||||||||
Russell Top 200 Equal Weight Portfolio | 5,621,834 | 1,626,267 | 743,656 | 732,335 | 8,724,092 | 2,328,337 | ||||||||||||||||||
Russell Top 200 Pure Growth Portfolio | — | — | 4,325,577 | 6,003,581 | 10,329,158 | — | ||||||||||||||||||
Russell Top 200 Pure Value Portfolio | — | — | 770,987 | 1,271,141 | 2,042,128 | — | ||||||||||||||||||
Zacks Micro Cap Portfolio | 12,380,833 | 7,234,973 | 20,320,056 | 1,545,284 | 41,481,146 | 28,782,755 |
* | 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. |
Note 7. Investment Transactions
For the fiscal year ended April 30, 2017, 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 | $ | 504,939,053 | $ | 504,603,514 | ||||
Dynamic Large Cap Value Portfolio | 1,310,397,704 | 1,310,488,955 | ||||||
Russell 2000 Equal Weight Portfolio | 7,220,162 | 7,194,970 | ||||||
Russell 2000 Pure Growth Portfolio | 16,139,776 | 15,782,444 | ||||||
Russell 2000 Pure Value Portfolio | 36,588,019 | 35,853,318 | ||||||
Russell Midcap Equal Weight Portfolio | 8,889,956 | 8,899,600 | ||||||
Russell Midcap Pure Growth Portfolio | 31,363,201 | 31,558,266 | ||||||
Russell Midcap Pure Value Portfolio | 22,534,913 | 22,336,891 | ||||||
Russell Top 200 Equal Weight Portfolio | 8,972,590 | 8,968,340 | ||||||
Russell Top 200 Pure Growth Portfolio | 41,866,693 | 42,245,481 | ||||||
Russell Top 200 Pure Value Portfolio | 19,241,275 | 19,743,639 | ||||||
Zacks Micro Cap Portfolio | 32,885,414 | 33,868,643 |
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For the fiscal year ended April 30, 2017, in-kind transactions associated with creations and redemptions were as follows:
Cost of Securities Received | Value of Securities Delivered | |||||||
Dynamic Large Cap Growth Portfolio | $ | 372,180,295 | $ | 428,639,383 | ||||
Dynamic Large Cap Value Portfolio | 1,310,269,241 | 1,199,804,193 | ||||||
Russell 2000 Equal Weight Portfolio | 7,776,970 | 1,776,017 | ||||||
Russell 2000 Pure Growth Portfolio | 11,446,931 | 10,033,759 | ||||||
Russell 2000 Pure Value Portfolio | 47,950,174 | 36,407,526 | ||||||
Russell Midcap Equal Weight Portfolio | — | — | ||||||
Russell Midcap Pure Growth Portfolio | 12,026,348 | 21,812,068 | ||||||
Russell Midcap Pure Value Portfolio | 49,905,946 | 37,022,639 | ||||||
Russell Top 200 Equal Weight Portfolio | 6,720,047 | 6,070,895 | ||||||
Russell Top 200 Pure Growth Portfolio | 37,550,921 | 63,131,874 | ||||||
Russell Top 200 Pure Value Portfolio | 46,536,413 | 51,002,181 | ||||||
Zacks Micro Cap Portfolio | 19,632,608 | 19,546,704 |
Gains (losses) on in-kind transactions are generally not considered taxable gains (losses) for federal income tax purposes.
At April 30, 2017, 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 | Cost | |||||||||||||
Dynamic Large Cap Growth Portfolio | $ | 57,039,622 | $ | (3,429,655 | ) | $ | 53,609,967 | $ | 387,548,877 | |||||||
Dynamic Large Cap Value Portfolio | 120,583,033 | (25,220,342 | ) | 95,362,691 | 1,161,809,324 | |||||||||||
Russell 2000 Equal Weight Portfolio | 3,297,548 | (1,371,740 | ) | 1,925,808 | 20,414,361 | |||||||||||
Russell 2000 Pure Growth Portfolio | 5,804,308 | (2,212,569 | ) | 3,591,739 | 33,773,398 | |||||||||||
Russell 2000 Pure Value Portfolio | 12,790,462 | (6,727,198 | ) | 6,063,264 | 82,080,678 | |||||||||||
Russell Midcap Equal Weight Portfolio | 3,599,205 | (1,952,301 | ) | 1,646,904 | 25,626,616 | |||||||||||
Russell Midcap Pure Growth Portfolio | 13,896,556 | (3,705,025 | ) | 10,191,531 | 59,843,391 | |||||||||||
Russell Midcap Pure Value Portfolio | 5,834,777 | (5,123,039 | ) | 711,738 | 69,338,039 | |||||||||||
Russell Top 200 Equal Weight Portfolio | 5,495,334 | (1,016,662 | ) | 4,478,672 | 35,245,639 | |||||||||||
Russell Top 200 Pure Growth Portfolio | 24,149,547 | (4,300,498 | ) | 19,849,049 | 131,488,644 | |||||||||||
Russell Top 200 Pure Value Portfolio | 7,225,075 | (1,185,651 | ) | 6,039,424 | 68,709,748 | |||||||||||
Zacks Micro Cap Portfolio | 3,277,202 | (719,550 | ) | 2,557,652 | 23,139,579 |
Note 8. Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of in-kind transactions and expired capital loss carryforwards, 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, 2017, the reclassifications were as follows:
Undistributed Net Investment Income | Undistributed Net Realized Gain (Loss) | Shares of Beneficial Interest | ||||||||||
Dynamic Large Cap Growth Portfolio | $ | — | $ | 22,172,538 | $ | (22,172,538 | ) | |||||
Dynamic Large Cap Value Portfolio | — | (105,076,601 | ) | 105,076,601 | ||||||||
Russell 2000 Equal Weight Portfolio | 11,888 | 2,342,201 | (2,354,089 | ) | ||||||||
Russell 2000 Pure Growth Portfolio | — | 7,841,744 | (7,841,744 | ) | ||||||||
Russell 2000 Pure Value Portfolio | 122,148 | 9,411,652 | (9,533,800 | ) | ||||||||
Russell Midcap Equal Weight Portfolio | 388 | 3,815,450 | (3,815,838 | ) | ||||||||
Russell Midcap Pure Growth Portfolio | — | 53,073,804 | (53,073,804 | ) | ||||||||
Russell Midcap Pure Value Portfolio | — | 7,404,080 | (7,404,080 | ) | ||||||||
Russell Top 200 Equal Weight Portfolio | — | 1,659,350 | (1,659,350 | ) | ||||||||
Russell Top 200 Pure Growth Portfolio | — | (7,430,964 | ) | 7,430,964 | ||||||||
Russell Top 200 Pure Value Portfolio | — | (7,938,571 | ) | 7,938,571 | ||||||||
Zacks Micro Cap Portfolio | 120,659 | 24,580,293 | (24,700,952 | ) |
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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, any Unaffiliated Trustee, 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, each Independent Trustee or Unaffiliated 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.
Certain transaction fees may be charged by the Funds for creations and redemptions, which are treated as increases in capital.
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 and Unaffiliated Trustee is also indemnified against certain liabilities arising out of the performance of his duties to the Trust pursuant to an Indemnification Agreement between such 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 of PowerShares Exchange-Traded Fund Trust and Shareholders 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:
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”) as of April 30, 2017, 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 as of April 30, 2017 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Chicago, IL
June 23, 2017
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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, 2017.
In addition to the fees and expenses which the PowerShares Zacks Micro Cap 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 the Fund. If transaction costs and indirect expenses were included, your costs would have been higher.
Beginning Account Value November 1, 2016 | Ending Account Value April 30, 2017 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period(1) | |||||||||||||
PowerShares Dynamic Large Cap Growth Portfolio (PWB) | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,130.80 | 0.58 | % | $ | 3.06 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.92 | 0.58 | 2.91 | ||||||||||||
PowerShares Dynamic Large Cap Value Portfolio (PWV) | ||||||||||||||||
Actual | 1,000.00 | 1,147.60 | 0.57 | 3.04 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.97 | 0.57 | 2.86 | ||||||||||||
PowerShares Russell 2000 Equal Weight Portfolio (EQWS) | ||||||||||||||||
Actual | 1,000.00 | 1,175.60 | 0.25 | 1.35 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,023.55 | 0.25 | 1.25 | ||||||||||||
PowerShares Russell 2000 Pure Growth Portfolio (PXSG) | ||||||||||||||||
Actual | 1,000.00 | 1,177.60 | 0.39 | 2.11 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.86 | 0.39 | 1.96 | ||||||||||||
PowerShares Russell 2000 Pure Value Portfolio (PXSV) | ||||||||||||||||
Actual | 1,000.00 | 1,179.80 | 0.39 | 2.11 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.86 | 0.39 | 1.96 |
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Fees and Expenses (continued)
Beginning Account Value November 1, 2016 | Ending Account Value April 30, 2017 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period(1) | |||||||||||||
PowerShares Russell Midcap Equal Weight Portfolio (EQWM) | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,121.80 | 0.25 | % | $ | 1.32 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,023.55 | 0.25 | 1.25 | ||||||||||||
PowerShares Russell Midcap Pure Growth Portfolio (PXMG) | ||||||||||||||||
Actual | 1,000.00 | 1,164.00 | 0.39 | 2.09 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.86 | 0.39 | 1.96 | ||||||||||||
PowerShares Russell Midcap Pure Value Portfolio (PXMV) | ||||||||||||||||
Actual | 1,000.00 | 1,115.00 | 0.39 | 2.05 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.86 | 0.39 | 1.96 | ||||||||||||
PowerShares Russell Top 200 Equal Weight Portfolio (EQWL) | ||||||||||||||||
Actual | 1,000.00 | 1,148.60 | 0.25 | 1.33 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,023.55 | 0.25 | 1.25 | ||||||||||||
PowerShares Russell Top 200 Pure Growth Portfolio (PXLG) | ||||||||||||||||
Actual | 1,000.00 | 1,164.70 | 0.39 | 2.09 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.86 | 0.39 | 1.96 | ||||||||||||
PowerShares Russell Top 200 Pure Value Portfolio (PXLV) | ||||||||||||||||
Actual | 1,000.00 | 1,141.20 | 0.39 | 2.07 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.86 | 0.39 | 1.96 | ||||||||||||
PowerShares Zacks Micro Cap Portfolio (PZI) | ||||||||||||||||
Actual | 1,000.00 | 1,166.20 | 0.70 | 3.76 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.32 | 0.70 | 3.51 |
(1) | Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six-month period ended April 30, 2017. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 181/365. 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, 2017:
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 | % | 97 | % | ||||||
PowerShares Russell 2000 Pure Growth Portfolio | 100 | % | 100 | % | ||||||
PowerShares Russell 2000 Pure Value Portfolio | 91 | % | 82 | % | ||||||
PowerShares Russell Midcap Equal Weight Portfolio | 100 | % | 100 | % | ||||||
PowerShares Russell Midcap Pure Growth Portfolio | 100 | % | 100 | % | ||||||
PowerShares Russell Midcap Pure Value Portfolio | 92 | % | 86 | % | ||||||
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 | 55 | % | 51 | % |
* | 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 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 (as defined below) overseen by each Independent Trustee and the other directorships, if any, held by an Independent Trustee are shown below.
The information is current as of April 30, 2017.
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, | 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). | 135 | None | |||||
Todd J. Barre—1957 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, | 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. | 135 | None | |||||
Marc M. Kole—1960 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, | Chairman of the Audit Committee and Trustee | Chairman of the Audit Committee since 2008; 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). | 135 | None | |||||
Yung Bong Lim—1964 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, | 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). | 135 | 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- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 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 | |||||
Gary R. Wicker—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, | 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). | 135 | None | |||||
Donald H. Wilson—1959 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, | Chairman of the Board and Trustee | Chairman since 2012; Trustee since 2006 | Chairman and Chief Executive Officer, Stone Pillar Advisors, Ltd. (2010-Present); President and Chief Executive Officer, Stone Pillar Investments, Ltd. (2016-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). | 135 | 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- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser. |
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Trustees and Officers (continued)
The Unaffiliated Trustee, his term of office and length of time served, his principal business occupations during at least the past five years, the number of portfolios in the Fund Complex (as defined below) overseen by the Unaffiliated Trustee and the other directorships, if any, held by the Unaffiliated Trustee, are shown below.
The information is current as of April 30, 2017.
Name, Address and Year of Birth of Unaffiliated Trustee | 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 Unaffiliated Trustee | Other Directorships Held by Unaffiliated Trustee 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). | 135 | None |
* | This is the date the Unaffiliated Trustee began serving the Trust. The Unaffiliated Trustee serves an indefinite term, until his successor is elected. |
** | Effective May 18, 2016, Mr. Nussbaum became an Unaffiliated Trustee. |
*** | Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser. |
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Trustees and Officers (continued)
The Interested Trustee 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 (as defined below) overseen by the Interested Trustees and the other directorships, if any, held by the Interested Trustee are shown below.
The information is current as of April 30, 2017.
Name, Address and Year of Birth of Interested Trustee | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex** Overseen by Interested Trustee | Other Directorships Held by Interested Trustee 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 Holding Company (US), Inc., Invesco Finance, Inc., Invesco Group Services, Inc., Invesco North American Holdings, Inc. and INVESCO Asset Management (Bermuda) Ltd.; Executive Vice President, Invesco Investments (Bermuda) Ltd., Manager, Horizon Flight Works LLC; Director and Secretary, Invesco Services (Bahamas) Private Limited; formerly, Director and Chairman, INVESCO Funds Group, Inc., Senior Vice President, Secretary and General Counsel, Invesco Advisers, Inc. (2003-2006); Director, Invesco Investments (Bermuda) Ltd. (2008-2016); 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. | 135 | None |
* | This is the date the Interested Trustee began serving the Trust. The Interested Trustee serves an indefinite term, until his successor is elected. |
** | Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 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 and Principal 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). | |||
Adam Henkel—1980 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chief Compliance Officer | Since 2017 | Chief Compliance Officer of Invesco PowerShares Capital Management LLC (2017-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 and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2017-Present); formerly, Senior Counsel, Invesco, Ltd. (2013-2017); and Assistant Vice President, U.S. Bancorp Fund Services, LLC (2010-2013). | |||
Steven M. Hill—1964 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Vice President and Treasurer | Since 2012 | 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). |
* | This is the date the Officer 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 and Principal Executive Officer, The Invesco Funds (2016-Present); Treasurer, The Invesco Funds (2008-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 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); Manager and Assistant Secretary, Invesco Indexing LLC (2017-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.) (2011-Present); 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 date the Officer 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 11, 2017, 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 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 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, (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 the Funds.
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. (“Invesco”), 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, 2016, 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 Invesco’s Global Performance Measurement and Risk Group, an independent organization within Invesco, 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
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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)
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 contractual advisory fee, net advisory fee, and gross and net expense ratio. The Trustees also compared each Fund’s contractual advisory fee and net expense ratio to information compiled by the Adviser from Lipper Inc. databases on the net 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 contractual 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 (The net advisory fees, after giving effect to the Expense Caps as defined below, was -0.01% for PowerShares Russell 2000 Pure Growth 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 as defined below, were -0.06%, -0.19% and -0.62%, 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 contractual 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, 2018, 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 Achievers™ 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 contractual advisory fees for certain Funds were equal to or lower than the median net advisory fees of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the contractual advisory fees for all of the Funds were lower than the median net 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 AchieversTM Portfolio | X | |||||
PowerShares CleantechTM Portfolio | X | |||||
PowerShares Dividend AchieversTM Portfolio | 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 | 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 | ||||
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 | X | ||||
PowerShares Global Listed Private Equity Portfolio | N/A | X | ||||
PowerShares Golden Dragon China Portfolio | X | N/A | X | |||
PowerShares High Yield Equity Dividend AchieversTM Portfolio | X | |||||
PowerShares International Dividend AchieversTM Portfolio | X | N/A | 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 contractual 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 AchieversTM Portfolio | X | |||||
PowerShares CleantechTM Portfolio | X | |||||
PowerShares Dividend AchieversTM Portfolio | X | X | ||||
PowerShares DWA Basic Materials Momentum Portfolio | X | |||||
PowerShares DWA Consumer Cyclicals 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 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 | 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 | |||||
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 | X | |||
PowerShares Russell Midcap Pure Growth Portfolio | 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 AchieversTM Portfolio | X | X | ||||
PowerShares International Dividend AchieversTM Portfolio | N/A | X | ||||
PowerShares S&P 500® Quality Portfolio | X | X | X | |||
PowerShares Water Resources Portfolio | X |
| 130 |
|
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 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. |
In response to questions from the Independent Trustees, the Adviser provided supplemental information regarding each of PowerShares Dynamic Energy Exploration & Production Portfolio, PowerShares Dynamic Large Cap Growth Portfolio, PowerShares Global Listed Private Equity Portfolio and PowerShares Russell Top 200 Pure Growth Portfolio’s advisory fees and total expenses and the Lipper peer data. The Adviser explained in detail its view that it believes that the advisory fees and total expenses for these Funds are competitive and generally in line with other comparable funds in the marketplace, noting, in particular, the unique underlying investment strategy and complexity of each Fund, the limited number of peers in the Lipper data, and/or the differing pricing philosophy of certain of the peers.
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 the Funds, 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 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.
| 131 |
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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.powershares.com.
P-PS-AR-5 | ||||||
©2017 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | ||||||
powershares.com 800 983 0903 | @PowerShares |
April 30, 2017 |
2017 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 | |
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 | ||||
29 | ||||
30 | ||||
32 | ||||
34 | ||||
36 | ||||
38 | ||||
44 | ||||
46 | ||||
47 | ||||
48 | ||||
Statements of Assets and Liabilities | 50 | |||
Statements of Operations | 52 | |||
Statements of Changes in Net Assets | 54 | |||
Financial Highlights | 58 | |||
Notes to Financial Statements | 64 | |||
Report of Independent Registered Public Accounting Firm | 77 | |||
Fees and Expenses | 78 | |||
Tax Information | 80 | |||
Trustees and Officers | 81 | |||
Board Considerations Regarding Continuation of Investment Advisory Agreements | 87 |
| 2 |
|
US Equity
During the fiscal year ended April 30, 2017, the US economy continued to expand and strengthen, with unemployment declining and inflation ticking upward somewhat. Signs of an improving economy prompted the US Federal Reserve to raise interest rates in December 2016 and again in March 2017. Major US stock market indexes posted gains for the reporting period, with most hitting record highs following the US presidential election. Investors seemed to believe that the new administration’s plans to reduce tax rates, scale back regulations and increase infrastructure spending had the potential to stimulate economic growth.
While US and overseas stock markets were jolted by the UK’s decision in June 2016 to leave the European Union, markets recovered relatively quickly. During the second half of calendar 2016, small-cap stocks led the US market while large-cap stocks lagged—but that reversed in the first quarter of calendar 2017. Near the close of the fiscal year, headlines out of Washington, DC, suggested that enacting significant regulatory and tax reform might be somewhat more difficult than previously anticipated; this was a slight negative for investor sentiment. For the reporting period as a whole, information technology and financials were the strongest-performing sectors, while telecommunication services and energy were the weakest-performing sectors.
Global Equity
The fiscal year ended April 30, 2017, began on a negative note, with global equity investors concerned about economic weakness in China, falling oil prices and uncertainty over the US Federal Reserve’s (the “Fed”) monetary policy. Central banks, including the Fed, the European Central Bank and the Bank of Japan, soothed investors’ nerves throughout the reporting period with accommodative monetary policies and dovish rhetoric. Other factors contributing to investor sentiment included rebounding oil prices and, in the US, generally positive economic data.
In June 2016, the decision by UK voters to leave the European Union caused global markets to decline sharply, but only briefly. The outcome of the November US presidential election caused US stocks, particularly in the health care and financials sector, to rally. However, non-US equities, particularly emerging market equities, traded lower due to currency weakness and the potential for a less favorable trade environment. Also in November, OPEC agreed to cut production for the first time in eight years; the agreement helped support higher oil prices and energy stocks.
Global equity markets began calendar 2017 with a broad rally that marked the best first quarter for equities since 2013. Volatility was largely absent, and emerging market equities posted double-digit gains in the quarter. Improved consumer confidence and eurozone employment data fueled positive market sentiment, while investors generally shrugged off Fed interest rate hikes in
December 2016 and March 2017. For the reporting period as a whole, US equities outperformed non-US equities, and emerging markets outperformed their developed-market counterparts (excluding the US)—a reversal from previous years.
| 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. These companies are engaged principally in the development, manufacture, operation and support of defense, military, homeland security and space operations. These may include, for example, companies that provide the following products or services: defense electronics, aircraft, naval vessels, missiles, spacecraft and launch vehicles, ground vehicles, communications, sensors, information technology and network centric warfare, unmanned vehicles, satellite-based services and ground-based equipment and electronics, products or services.
Strictly in accordance with its guidelines and mandated procedures, ISBC, LLC (the “Index Provider”) identifies common stocks for inclusion in the Index and weights them according to its 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, 2017, on a market price basis, the Fund returned 25.18%. On a net asset value (“NAV”) basis, the Fund returned 25.06%. During the same time period, the Index returned 25.83%. 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® Aerospace & Defense Index (the “Benchmark Index”) returned 26.90%. 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 because 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 Fund tracks an Index that 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, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to being underweight the aerospace & defense industry, and fees and operating expenses that the Fund incurred.
For the fiscal year ended April 30, 2017, 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 construction & engineering industry.
Positions that contributed most significantly to the Fund’s return included Boeing Co. (The), an aerospace & defense company (portfolio average weight of 6.89%), and General Dynamics Corp., an aerospace & defense company (portfolio average weight of 6.70%). Positions that detracted most significantly from the Fund’s return included FireEye, Inc., a software company (portfolio average weight of 0.78%), and ViaSat, Inc., a communications equipment company (portfolio average weight of 1.18%).
Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Aerospace & Defense | 71.1 | |||
IT Services | 7.2 | |||
Industrial Conglomerates | 7.0 | |||
Communications Equipment | 4.9 | |||
Containers & Packaging | 3.8 | |||
Machinery | 2.6 | |||
Electronic Equipment, Instruments & Components | 1.8 | |||
Software | 0.6 | |||
Construction & Engineering | 0.6 | |||
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, 2017 | ||||
Security | ||||
United Technologies Corp. | 7.0 | |||
Honeywell International, Inc. | 7.0 | |||
Boeing Co. (The) | 7.0 | |||
General Dynamics Corp. | 6.9 | |||
Lockheed Martin Corp. | 6.7 | |||
Raytheon Co. | 5.5 | |||
Northrop Grumman Corp. | 5.2 | |||
Harris Corp. | 3.9 | |||
Rockwell Collins, Inc. | 3.8 | |||
Ball Corp. | 3.8 | |||
Total | 56.8 |
* | 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, 2017
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 | 25.83 | % | 13.86 | % | 47.60 | % | 20.06 | % | 149.46 | % | 10.32 | % | 166.99 | % | 11.94 | % | 266.41 | % | ||||||||||||||||||||||
S&P Composite 1500® Aerospace & Defense Index | 26.90 | 14.35 | 49.52 | 20.22 | 151.16 | 11.26 | 190.78 | 13.41 | 326.00 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 25.06 | 13.15 | 44.87 | 19.29 | 141.58 | 9.59 | 149.95 | 11.22 | 240.18 | |||||||||||||||||||||||||||||||
Market Price Return | 25.18 | 13.19 | 45.00 | 19.32 | 141.88 | 9.61 | 150.26 | 11.24 | 240.65 |
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. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.64%. The Financial Highlights section of the Shareholder 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 powershares.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 (the “Index”). The Fund generally will invest at least 90% of its total assets in stocks of clean technology (or “cleantech”) companies (as described below) that comprise the Index and American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”) based on the stocks in the Index. The Fund anticipates that the majority of its investments will be in the stocks that comprise the Index, rather than in ADRs. The Index is a modified equally weighted index currently comprised of stocks of publicly traded cleantech companies and ADRs on such stocks.
Strictly in accordance with its guidelines and mandated procedures, Cleantech Indices LLC (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/services across a broad range of industries, including, but not limited to, clean energy, energy efficiency and transmission, clean water, advanced materials, eco-friendly agriculture, transportation, manufacturing efficiency, recycling and pollution prevention. 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, 2017, on a market price basis, the Fund returned 24.13%. On a net asset value (“NAV”) basis, the Fund returned 23.21%. During the same time period, the Index returned 24.31%. 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, as well as trading costs associated with the portfolio’s quarterly rebalances.
During this same time period, the S&P 500® Index (the “Benchmark Index”) returned 17.92%. 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 another benchmark similar to the Index. The Benchmark Index was selected for its recognition in the marketplace.
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 most overweight in the electrical equipment industry and most underweight in the banks industry during the fiscal year ended April 30, 2017. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to significant overweight in the electrical equipment and electronic equipment instruments & components industries, compared to the Benchmark Index.
For the fiscal year ended April 30, 2017, the electrical equipment industry contributed most significantly to the Fund’s return, followed by the electronic equipment instruments & components and machinery industries, respectively. The semiconductors & semiconductor equipment industry was the only detracting industry.
Positions that contributed most significantly to the Fund’s return included Advanced Energy Industries, Inc., a semiconductors & semiconductor equipment company (portfolio average weight of 1.72%), and Raven Industries, Inc., an industrials conglomerates company (portfolio average weight of 1.07%). Positions that detracted most significantly from the Fund’s return included SunPower Corp., a semiconductors & semiconductor equipment company (portfolio average weight of 1.05%), and SMA Solar Technology AG (Germany), a semiconductors & semiconductor equipment company (portfolio average weight of 0.83%).
| 6 |
|
PowerShares CleantechTM Portfolio (PZD) (continued)
Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Electrical Equipment | 19.6 | |||
Machinery | 9.9 | |||
Electronic Equipment, Instruments & Components | 9.9 | |||
Semiconductors & Semiconductor Equipment | 8.2 | |||
Professional Services | 7.5 | |||
Industrial Conglomerates | 7.4 | |||
Software | 6.8 | |||
Chemicals | 6.6 | |||
Building Products | 5.8 | |||
Independent Power & Renewable Electricity Producers | 3.8 | |||
Life Sciences Tools & Services | 3.1 | |||
Auto Components | 2.9 | |||
Aerospace & Defense | 2.4 | |||
Commercial Services & Supplies | 2.2 | |||
Communications Equipment | 1.6 | |||
Mortgage REITs | 1.3 | |||
Construction & Engineering | 0.9 | |||
Money Market Fund Plus Other Assets Less Liabilities | 0.1 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
Trimble, Inc. | 3.2 | |||
Eurofins Scientific SE | 3.1 | |||
Schneider Electric SE | 3.1 | |||
Novozymes A/S, Class B | 3.1 | |||
Vestas Wind Systems A/S | 3.1 | |||
Siemens AG | 3.1 | |||
Roper Technologies, Inc. | 3.1 | |||
SGS SA | 3.0 | |||
Autodesk, Inc. | 3.0 | |||
ABB Ltd. | 3.0 | |||
Total | 30.8 |
* | Excluding money market fund holdings. |
| 7 |
|
PowerShares CleantechTM Portfolio (PZD) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
3 Years Average | 3 Years Cumulative | 5 Years Average | 5 Years Cumulative | 10 Years Average | 10 Years Cumulative | Fund Inception† | ||||||||||||||||||||||||||||||||||
Index | 1 Year | Average Annualized | Cumulative | |||||||||||||||||||||||||||||||||||||
The Cleantech Index™ | 24.31 | % | 6.75 | % | 21.64 | % | 11.82 | % | 74.81 | % | 4.57 | % | 56.41 | % | N/A | N/A | ||||||||||||||||||||||||
S&P 500® Index | 17.92 | % | 10.47 | % | 34.83 | % | 13.68 | % | 89.81 | % | 7.15 | % | 99.55 | % | 7.64 | % | 116.84 | % | ||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 23.21 | % | 6.04 | % | 19.24 | % | 10.98 | % | 68.36 | % | 3.79 | % | 45.11 | % | 4.51 | % | 59.09 | % | ||||||||||||||||||||||
Market Price Return | 24.13 | % | 6.14 | % | 19.58 | % | 11.14 | % | 69.55 | % | 3.83 | % | 45.57 | % | 4.55 | % | 59.66 | % |
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, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.73% and the net annual operating expense ratio was indicated as 0.67%. The Financial Highlights section of the Shareholder 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 powershares.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 and Benchmark Index returns are based on the inception date of the Fund. |
| 8 |
|
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 (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index is composed of approximately 100 common stocks from an eligible universe of approximately 1,000 securities of large capitalization companies that trade on any U.S. exchange and that are included within the NASDAQ Composite Index.
Strictly in accordance with its guidelines and mandated procedures, Dorsey, Wright & Associates, LLC (the “Index Provider”) includes common stocks pursuant to a proprietary selection methodology that is designed to identify companies that demonstrate powerful relative strength characteristics. The Index Provider bases these relative strength characteristics on each security’s market performance. The Fund generally invests in all of the securities comprising the Index proportion to their weightings in the Index.
For the fiscal year ended April 30, 2017, on a market price basis, the Fund returned 14.17%. On a net asset value (“NAV”) basis, the Fund returned 14.12%. During the same time period, the Index returned 14.89%. 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, as well as trading costs around the rebalances during the period.
During this same time period, the Russell 3000® Growth Index (the “Benchmark Index”) returned 19.83%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 2,940 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 because of its 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 financials sector and underweight in the information technology sector during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund being underweight the information technology sector.
For the fiscal year ended April 30, 2017, the information technology sector contributed most significantly to the Fund’s return, followed by the industrials and financials sectors, respectively. The real estate sector detracted most significantly from the Fund’s return, followed by the energy and consumer staples sectors, respectively.
Positions that contributed most significantly to the Fund’s return included MarketAxess Holdings, Inc., a financials company (portfolio average weight of 2.43%), and Domino’s Pizza, Inc., a consumer discretionary company (portfolio average weight of 2.64%). Positions that detracted most significantly from the Fund’s return included Tractor Supply Co., a consumer discretionary company (no longer held at fiscal year-end), and GGP, Inc. REIT, a real estate company (no longer held at fiscal year-end).
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Industrials | 24.8 | |||
Information Technology | 18.4 | |||
Consumer Discretionary | 18.1 | |||
Financials | 14.7 | |||
Health Care | 12.3 | |||
Materials | 3.5 | |||
Utilities | 3.0 | |||
Consumer Staples | 2.8 | |||
Energy | 1.4 | |||
Telecommunication Services | 0.5 | |||
Real Estate | 0.5 | |||
Money Market Fund Plus Other Assets Less Liabilities | (0.0) | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
Apple, Inc. | 3.0 | |||
Priceline Group, Inc. (The) | 3.0 | |||
Macquarie Infrastructure Corp. | 2.6 | |||
O’Reilly Automotive, Inc. | 2.5 | |||
Domino’s Pizza, Inc. | 2.4 | |||
MarketAxess Holdings, Inc. | 2.3 | |||
J.B. Hunt Transport Services, Inc. | 2.3 | |||
Rollins, Inc. | 2.3 | |||
Arch Capital Group Ltd. | 2.3 | |||
Exelixis, Inc. | 2.2 | |||
Total | 24.9 |
* | Excluding money market fund holdings. |
| 9 |
|
PowerShares DWA Momentum Portfolio (PDP) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
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-Dorsey Wright® Technical Leaders Index† | 14.89 | % | 8.66 | % | 28.28 | % | 11.36 | % | 71.22 | % | 6.55 | % | 88.60 | % | 7.13 | % | 101.47 | % | ||||||||||||||||||||||
Dorsey Wright® Technical Leaders Index | 14.89 | 8.66 | 28.28 | N/A | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||||
Russell 3000® Growth Index | 19.83 | 11.88 | 40.05 | 13.79 | 90.77 | 8.80 | 132.50 | 9.23 | 145.28 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 14.12 | 7.93 | 25.74 | 11.04 | 68.79 | 6.43 | 86.49 | 7.01 | 99.20 | |||||||||||||||||||||||||||||||
Market Price Return | 14.17 | 7.97 | 25.87 | 11.04 | 68.83 | 6.40 | 86.03 | 7.00 | 98.83 |
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. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.64%. The Financial Highlights section of the Shareholder 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 powershares.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 data known as the Blended-Index is comprised of price only returns from Fund inception through the conversion date, December 31, 2013, and total returns starting at the conversion date through April 30, 2017. |
†† | Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund. |
| 10 |
|
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.
Strictly in accordance with its guidelines and mandated procedures, Red Rocks Capital LLC (the “Index Provider”) includes securities in the Index pursuant to a proprietary selection methodology. The Index is comprised of securities, ADRs and GDRs of 40 to 75 private equity companies, including business development companies, master limited partnerships and other vehicles that are listed on a nationally recognized exchange, all of whose principal businesses are to invest in, lend capital to, or provide services to privately held companies. 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, 2017, on a market price basis, the Fund returned 23.32%. On a net asset value (“NAV”) basis, the Fund returned 22.21%. During the same time period, the Index returned 23.33%. 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 Fund incurred during the period as well as slippage around the reinvestment of dividends received from the underlying portfolio holdings.
During the same time period, the MSCI EAFE® Index (Net) (the “Benchmark Index”) returned 11.29%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 930 securities. The Benchmark Index performance comparison is a useful measure for investors as a broad representation of the developed equity market excluding the U.S. and Canada. The Benchmark Index was selected for its recognition in the marketplace.
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 most overweight in the capital markets industry and most underweight in the banks industry during the fiscal year ended April 30, 2017. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to its allocation to the capital markets industry.
For the fiscal year ended April 30, 2017, the capital markets industry contributed most significantly to the Fund’s return, followed by the diversified financial services and electrical equipment industries, respectively. The construction & engineering industry was the only detracting industry.
Positions that contributed most significantly to the Fund’s return included 3i Group PLC (United Kingdom), a capital markets company (portfolio average weight of 5.61%), and Partners Group Holding AG (Switzerland), a capital markets company (portfolio average weight of 5.69%). Positions that detracted most significantly from the Fund’s return included Brait SE (South Africa), a capital markets company (portfolio average weight of 2.97%), and Allied Minds PLC (United Kingdom), a capital markets company (portfolio average weight of 0.92%).
Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Capital Markets | 51.0 | |||
Diversified Financial Services | 22.0 | |||
Internet Software & Services | 4.3 | |||
Electrical Equipment | 3.6 | |||
Industrial Conglomerates | 3.5 | |||
Food Products | 1.6 | |||
Health Care Providers & Services | 1.4 | |||
Money Market Funds Plus Other Assets Less Liabilities | 12.6 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
Partners Group Holding AG | 5.9 | |||
3i Group PLC | 5.6 | |||
Onex Corp. | 4.6 | |||
Melrose Industries PLC | 3.6 | |||
Leucadia National Corp. | 3.5 | |||
Fosun International Ltd. | �� | 3.5 | ||
Ares Capital Corp. | 3.4 | |||
Wendel SA | 3.0 | |||
IAC/InterActiveCorp. | 3.0 | |||
Eurazeo SA | 3.0 | |||
Total | 39.1 |
* | Excluding money market fund holdings. |
| 11 |
|
PowerShares Global Listed Private Equity Portfolio (PSP) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
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-Red Rocks Global Listed Private Equity Index† | 23.33 | % | 7.05 | % | 22.67 | % | 13.98 | % | 92.36 | % | 0.14 | % | 1.38 | % | 1.22 | % | 13.61 | % | ||||||||||||||||||||||
MSCI EAFE® Index (Net)†† | 11.29 | 0.86 | 2.60 | 6.78 | 38.84 | 0.87 | 9.02 | 2.30 | 27.01 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 22.21 | 6.25 | 19.95 | 12.95 | 83.82 | (2.22 | ) | (20.13 | ) | (1.04 | ) | (10.40 | ) | |||||||||||||||||||||||||||
Market Price Return | 23.32 | 6.19 | 19.75 | 12.95 | 83.84 | (2.20 | ) | (19.95 | ) | (1.02 | ) | (10.20 | ) |
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, 2019. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 2.24%, including acquired fund fees and expenses of 1.58% and the net annual operating expense ratio was indicated as 2.22%. The Financial Highlights section of the Shareholder 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 powershares.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 data included as the Blended-Index is comprised of the Red Rocks Capital Listed Private Equity Index from Fund 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, 2017. |
†† | Reflects reinvested dividends net of withholding taxes. |
††† | Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund. |
| 12 |
|
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 Index is composed of securities of U.S. exchange-listed companies that are headquartered or incorporated in the People’s Republic of China.
Strictly in accordance with its guidelines and mandated procedures, Nasdaq, Inc. (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 in the Index may include common stocks, ordinary shares, American depository receipts (“ADRs”), shares of beneficial interest, limited partnership interests or tracking stocks. 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, 2017, on a market price basis, the Fund returned 19.31%. On a net asset value (“NAV”) basis, the Fund returned 19.23%. During the same time period, the Index returned 19.48%. 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 fees and operating expenses that the Fund incurred during the period partially offset by income received from the security lending program in which the Fund participates.
During this same time period, the FTSE/Xinhua China 50 Index (the “Benchmark Index”) returned 18.21%. 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 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 the Fund tracks an Index that has 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 consumer discretionary sector and most underweight in the financials sector during the fiscal year ended April 30, 2017. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to security selection within the consumer discretionary sector.
For the fiscal year ended April 30, 2017, the consumer discretionary sector contributed most significantly to the Fund’s return followed by the information technology and industrials sectors, respectively. The telecommunication services 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 NetEase, Inc. ADR (China), an information technology company (portfolio average weight of 8.78%), and New Oriental Education & Technology Group, Inc. ADR (China), a consumer discretionary company (portfolio average weight of 6.43%). Positions that detracted most significantly from the Fund’s return included 58.com, Inc., Class A ADR (China), an information technology company (portfolio average weight of 3.67%), and 21Vianet Group, Inc., Class A ADR (China), an information technology company (portfolio average weight of 0.61%).
| 13 |
|
PowerShares Golden Dragon China Portfolio (PGJ) (continued)
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Information Technology | 43.0 | |||
Consumer Discretionary | 39.1 | |||
Health Care | 4.8 | |||
Telecommunication Services | 4.2 | |||
Industrials | 3.1 | |||
Energy | 3.0 | |||
Financials | 1.7 | |||
Real Estate | 0.5 | |||
Consumer Staples | 0.4 | |||
Utilities | 0.2 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
New Oriental Education & Technology Group, Inc. ADR | 9.0 | |||
JD.Com, Inc., Class A ADR | 8.4 | |||
Ctrip.com International Ltd. ADR | 7.8 | |||
Baidu, Inc. ADR | 7.6 | |||
NetEase, Inc. ADR | 6.4 | |||
TAL Education Group ADR | 5.0 | |||
SINA Corp. | 4.0 | |||
58.com, Inc., Class A ADR | 3.9 | |||
Vipshop Holdings Ltd., Class A ADR | 3.9 | |||
China Biologic Products, Inc. | 3.6 | |||
Total | 59.6 |
* | Excluding money market fund holdings. |
| 14 |
|
PowerShares Golden Dragon China Portfolio (PGJ) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
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 | 19.48 | % | 10.36 | % | 34.41 | % | 12.26 | % | 78.31 | % | 6.88 | % | 94.60 | % | 9.24 | % | 199.08 | % | ||||||||||||||||||||||
FTSE/Xinhua China 50 Index | 18.21 | 7.22 | 23.27 | 4.10 | 22.28 | 3.77 | 44.73 | 9.24 | 198.89 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 19.23 | 10.02 | 33.17 | 12.05 | 76.65 | 6.49 | 87.46 | 8.76 | 183.14 | |||||||||||||||||||||||||||||||
Market Price Return | 19.31 | 10.08 | 33.41 | 12.14 | 77.31 | 6.48 | 87.39 | 8.74 | 182.37 |
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. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.70%. The Financial Highlights section of the Shareholder 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 powershares.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 |
|
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 BuyWrite IndexSM (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 Index is a total return benchmark index that is designed to track the performance of a hypothetical “buy-write” strategy on the S&P 500® Index.
Strictly in accordance with its guidelines and mandated procedures, the Chicago Board Options Exchange, Incorporated (the “Index Provider”) calculates the Index. The Index is based on (1) buying an S&P 500 stock index portfolio, and (2) “writing” (or selling) the near-term S&P 500 Index “covered” call option, generally on the third Friday of each month. A “buy-write,” also called a covered call, generally is considered an investment strategy in which an investor buys a stock or basket of stocks, and sells call options that correspond to the stock or basket of stocks. In return for a premium, the Fund gives the right to the purchaser of the option written by the Fund to receive a cash payment equal to the difference between the value of the S&P 500 Index and exercise price, if the value on the expiration date is above the exercise price. In addition, covered call options partially hedge against a decline in the price of the securities on which they are written to the extent of the premium the Fund receives. The Fund will write options that are traded on national securities exchanges. 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, 2017, on a market price basis, the Fund returned 12.18%. On a net asset value (“NAV”) basis, the Fund returned 11.86%. During the same time period, the Index returned 12.73%. 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 17.92%. 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 because 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 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 most overweight in the information technology sector during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the covered call feature of the Fund. The sale of calls, while providing benefit in the form of cash flow to the Fund, during a period of rising markets, resulted in the options being exercised, which resulted in underperformance versus the Benchmark Index.
For the fiscal year ended April 30, 2017, the information technology sector contributed most significantly to the Fund’s return, followed by the financials and industrials sectors, respectively. There were no detracting sectors.
Positions that contributed most significantly to the Fund’s return included Apple, Inc., an information technology company (portfolio average weight of 3.27%), and Microsoft Corp., an information technology company (portfolio average weight of 2.44%). Positions that detracted most significantly from the Fund’s return included Bristol-Myers Squibb Co., a health care company (portfolio average weight of 0.53%), and Gilead Sciences, Inc., a health care company (portfolio average weight of 0.54%).
| 16 |
|
PowerShares S&P 500 BuyWrite Portfolio (PBP) (continued)
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Information Technology | 22.9 | |||
Financials | 14.3 | |||
Health Care | 14.2 | |||
Consumer Discretionary | 12.7 | |||
Industrials | 10.3 | |||
Consumer Staples | 9.4 | |||
Energy | 6.4 | |||
Utilities | 3.2 | |||
Real Estate | 3.0 | |||
Materials | 2.9 | |||
Telecommunication Services | 2.3 | |||
Other Assets Less Liabilities | (1.6) | |||
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
Apple, Inc. | 3.7 | |||
Microsoft Corp. | 2.6 | |||
Amazon.com, Inc. | 1.8 | |||
Facebook, Inc., Class A | 1.8 | |||
Exxon Mobil Corp. | 1.7 | |||
Johnson & Johnson | 1.7 | |||
Berkshire Hathaway, Inc., Class B | 1.6 | |||
JPMorgan Chase & Co. | 1.5 | |||
Alphabet, Inc., Class A | 1.4 | |||
Alphabet, Inc., Class C | 1.3 | |||
Total | 19.1 |
| 17 |
|
PowerShares S&P 500 BuyWrite Portfolio (PBP) (continued)
Growth of a $10,000 Investment Since Inception†
Fund Performance History as of April 30, 2017
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 BuyWrite IndexSM | 12.73 | % | 6.48 | % | 20.74 | % | 7.12 | % | 41.06 | % | 4.45 | % | 50.27 | % | ||||||||||||||||||
S&P 500® Index | 17.92 | 10.47 | 34.83 | 13.68 | 89.81 | 7.68 | 100.02 | |||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||
NAV Return | 11.86 | 5.65 | 17.93 | 6.29 | 35.67 | 3.60 | 39.24 | |||||||||||||||||||||||||
Market Price Return | 12.18 | 5.62 | 17.81 | 6.25 | 35.41 | 3.61 | 39.33 |
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 powershares.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. |
| 18 |
|
SPHQ | Manager’s Analysis | |
PowerShares S&P 500® Quality Portfolio (SPHQ) |
As an index fund, the PowerShares S&P 500® Quality 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 S&P 500® Quality Index (the “Index”). The Fund generally will invest at least 90% of its total assets in securities that comprise the Index.
Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices LLC (the “Index Provider”) compiles, maintains and calculates the Index, which is constructed from the constituents of the S&P 500® Index that are of the highest quality-that is, stocks of companies that seek to generate higher revenue and cash flow than their counterparts through prudent use of assets and finances. In selecting constituent securities for the Index, the Index Provider first calculates the quality score of each security in the S&P 500® Index. The quality score of each component stock is derived by the Index Provider from each component stock’s return-on-equity, accruals ratio and financial leverage ratio. Return on equity is calculated as the company’s trailing 12-month earnings per share divided by the company’s latest book value per share. Accruals ratio is 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. Financial leverage is 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 for inclusion in the Index. The Index Provider weights each component stock of the Index by the total quality score multiplied by its 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, 2017, on a market price basis, the Fund returned 13.88%. On a net asset value (“NAV”) basis, the Fund returned 13.84%. During the same time period, the Index returned 14.19%. 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 17.92%. 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 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 financials
sector during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock selection within the consumer discretionary and information technology sectors.
For the fiscal year ended April 30, 2017, the information technology sector contributed most significantly to the Fund’s return, followed by the industrials and consumer staples sectors, respectively. The telecommunication services sector detracted most significantly from the Fund’s return, followed by the real estate and utilities sectors, respectively.
Positions that contributed most significantly to the Fund’s return included Boeing Co. (The), an industrials company (portfolio average weight of 3.39%), and Home Depot, Inc. (The), a consumer discretionary company (portfolio average weight of 4.99%). Positions that detracted most significantly from the Fund’s return included Verizon Communications, Inc., a telecommunication services company (portfolio average weight of 4.23%), and Gilead Sciences, Inc., a health care company (no longer held at fiscal year-end).
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Industrials | 20.9 | |||
Information Technology | 20.7 | |||
Consumer Staples | 18.2 | |||
Consumer Discretionary | 16.9 | |||
Materials | 9.0 | |||
Financials | 5.7 | |||
Telecommunication Services | 4.3 | |||
Health Care | 3.2 | |||
Real Estate | 0.8 | |||
Utilities | 0.2 | |||
Energy | 0.1 | |||
Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
Home Depot, Inc. (The) | 5.6 | |||
Procter & Gamble Co. (The) | 5.0 | |||
Altria Group, Inc. | 4.5 | |||
General Electric Co. | 4.4 | |||
PepsiCo, Inc. | 4.4 | |||
Verizon Communications, Inc. | 4.3 | |||
Boeing Co. (The) | 4.0 | |||
International Business Machines Corp. | 4.0 | |||
Mastercard, Inc., Class A | 3.1 | |||
United Technologies Corp. | 2.4 | |||
Total | 41.7 |
| 19 |
|
PowerShares S&P 500® Quality Portfolio (SPHQ) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
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† | 14.19 | % | 12.11 | % | 40.90 | % | 14.97 | % | 100.91 | % | 6.16 | % | 81.82 | % | 6.51 | % | 105.33 | % | ||||||||||||||||||||||
S&P 500® Index | 17.92 | 10.47 | 34.83 | 13.68 | 89.81 | 7.15 | 99.55 | 7.99 | 140.18 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 13.84 | 11.77 | 39.63 | 14.61 | 97.74 | 5.94 | 78.02 | 6.35 | 101.77 | |||||||||||||||||||||||||||||||
Market Price Return | 13.88 | 11.80 | 39.75 | 14.62 | 97.81 | 5.94 | 78.07 | 6.31 | 100.91 |
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, 2018. 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 Shareholder 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 powershares.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-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, 2017. |
†† | Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund. |
| 20 |
|
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 (“ADRs”) and global depositary receipts (“GDRs”) of companies in the water industry that comprise the Index.
The Index was created by, and is a trademark of, Nasdaq, Inc. (the “Index Provider”). The Index seeks to track the performance of U.S. exchange-listed companies that create products designed to conserve and purify water for homes, businesses and industries. 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, 2017, on a market price basis, the Fund returned 16.74%. On a net asset value (“NAV”) basis, the Fund returned 16.73%. During the same time period, the Index returned 17.48%. 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, as well as trading costs around the rebalances during the period.
During this same time period, the S&P 500® Index (the “Benchmark Index”) returned 17.92%. 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 benchmark. The Benchmark Index was selected for its recognition in the marketplace.
The performance of the Fund differed from the Benchmark Index 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 most overweight in the machinery industry and most underweight in the banks industry during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to fees and operating expenses that the Fund incurred.
For the fiscal year ended April 30, 2017, the machinery industry contributed most significantly to the Fund’s return, followed by the water utilities and life sciences tools & services industries, respectively. The independent power and renewable electricity producers industry was the only detracting industry.
Positions that contributed most significantly to the Fund’s return included Waters Corp., a life sciences tools & services company (portfolio average weight of 6.06%), and Roper Technologies, Inc., an industrial conglomerates company (portfolio average weight of 7.94%). Positions that detracted most significantly from the Fund’s return included TerraForm Power, Inc., Class A, an independent power and renewable electricity producers company (no longer held at fiscal year-end), and Energy Recovery, Inc., a machinery company (portfolio average weight of 1.18%).
Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Machinery | 30.0 | |||
Water Utilities | 13.3 | |||
Chemicals | 8.8 | |||
Life Sciences Tools & Services | 8.5 | |||
Industrial Conglomerates | 8.1 | |||
Health Care Equipment & Supplies | 7.6 | |||
Trading Companies & Distributors | 7.3 | |||
Building Products | 5.5 | |||
Construction & Engineering | 4.5 | |||
Commercial Services & Supplies | 3.3 | |||
Electronic Equipment, Instruments & Components | 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, 2017 | ||||
Security | ||||
Waters Corp. | 8.5 | |||
Roper Technologies, Inc. | 8.2 | |||
Ecolab, Inc. | 8.1 | |||
Danaher Corp. | 7.6 | |||
HD Supply Holdings, Inc. | 7.3 | |||
IDEX Corp. | 4.4 | |||
Pentair PLC | 4.3 | |||
Rexnord Corp. | 4.3 | |||
Toro Co. (The) | 4.2 | |||
A.O. Smith Corp. | 4.2 | |||
Total | 61.1 |
* | Excluding money market fund holdings. |
| 21 |
|
PowerShares Water Resources Portfolio (PHO) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
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† | 17.48 | % | 2.26 | % | 6.94 | % | 8.70 | % | 51.76 | % | 5.20 | % | 66.02 | % | 6.82 | % | 112.08 | % | ||||||||||||||||||||||
S&P 500® Index | 17.92 | 10.47 | 34.83 | 13.68 | 89.81 | 7.15 | 99.55 | 7.99 | 140.18 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 16.73 | 1.60 | 4.88 | 7.99 | 46.83 | 3.97 | 47.66 | 5.66 | 87.30 | |||||||||||||||||||||||||||||||
Market Price Return | 16.74 | 1.60 | 4.88 | 7.99 | 46.86 | 3.97 | 47.61 | 5.56 | 85.19 |
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. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.61%. The Financial Highlights section of the Shareholder 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 powershares.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 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, 2017. |
†† | Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund. |
| 22 |
|
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 that comprise the Index.
Strictly in accordance with its guidelines and mandated procedures, WilderHill (the “Index Provider”) includes stocks in the Index based on its evaluation that such companies will substantially benefit from a societal transition toward the use of cleaner energy and conservation. At its discretion, the Index Provider reviews the Index’s component stocks quarterly or more often. 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, 2017, on a market price basis, the Fund returned 3.60%. On a net asset value (“NAV”) basis, the Fund returned 3.60%. During the same time period, the Index returned 2.14%. 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 income received from the securities lending program in which the Fund participates partially offset by fees and operating expenses that the Fund incurred during the period.
During this same time period, the NASDAQ Composite Index (Price Only) (the “Benchmark Index”) returned 26.64%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 2,540 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 because 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 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 most overweight in the semiconductors & semiconductor equipment industry and most underweight in the internet software & services industry during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock selection within the semiconductors & semiconductor equipment industry.
For the fiscal year ended April 30, 2017, the independent power and renewable electricity producers industry contributed most significantly to the Fund’s return, followed by the electronic equipment, instruments & components and construction & engineering industries, respectively. The semiconductors & semiconductor equipment industry detracted most significantly from the Fund’s return, followed by the electrical equipment and oil, gas & consumable fuels industries, respectively.
Positions that contributed most significantly to the Fund’s return included Advanced Energy Industries, Inc., a semiconductors & semiconductor equipment company (portfolio average weight of 3.46%), and TerraForm Global, Inc., Class A, an independent power and renewable electricity producers company (portfolio average weight of 3.26%). Positions that detracted most significantly from the Fund’s return included SunPower Corp., a semiconductors & semiconductor equipment company (portfolio average weight of 2.96%), and First Solar, Inc., a semiconductors & semiconductor equipment company (portfolio average weight of 3.00%).
| 23 |
|
PowerShares WilderHill Clean Energy Portfolio (PBW) (continued)
Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Semiconductors & Semiconductor Equipment | 28.3 | |||
Electrical Equipment | 20.5 | |||
Independent Power & Renewable Electricity Producers | 14.4 | |||
Construction & Engineering | 8.4 | |||
Electronic Equipment, Instruments & Components | 6.1 | |||
Chemicals | 5.5 | |||
Software | 3.3 | |||
Automobiles | 3.1 | |||
Aerospace & Defense | 2.7 | |||
Oil, Gas & Consumable Fuels | 2.7 | |||
Auto Components | 2.5 | |||
Commercial Services & Supplies | 2.4 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.1 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
Plug Power, Inc. | 4.0 | |||
Ballard Power Systems, Inc. | 3.7 | |||
TPI Composites, Inc. | 3.4 | |||
JA Solar Holdings Co. Ltd. ADR | 3.3 | |||
Canadian Solar, Inc. | 3.3 | |||
SunPower Corp. | 3.2 | |||
Tesla, Inc. | 3.1 | |||
Pattern Energy Group, Inc. | 2.9 | |||
First Solar, Inc. | 2.9 | |||
Ameresco, Inc., Class A | 2.9 | |||
Total | 32.7 |
* | Excluding money market fund holdings. |
| 24 |
|
PowerShares WilderHill Clean Energy Portfolio (PBW) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
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 | 2.14 | % | (13.79 | )% | (35.93 | )% | (3.01 | )% | (14.15 | )% | (13.83 | )% | (77.43 | )% | (10.04 | )% | (72.38 | )% | ||||||||||||||||||||||
NASDAQ Composite Index (Price Only)† | 26.64 | 13.70 | 46.98 | 14.70 | 98.52 | 9.13 | 139.50 | 9.27 | 193.81 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 3.60 | (12.23 | ) | (32.39 | ) | (1.45 | ) | (7.03 | ) | (12.93 | ) | (74.95 | ) | (9.17 | ) | (68.96 | ) | |||||||||||||||||||||||
Market Price Return | 3.60 | (12.23 | ) | (32.39 | ) | (1.45 | ) | (7.04 | ) | (12.94 | ) | (74.98 | ) | (9.17 | ) | (68.94 | ) |
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, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.76% and the net annual operating expense ratio was indicated as 0.70%. The Financial Highlights section of the Shareholder 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 powershares.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. |
| 25 |
|
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 that comprise the Index.
Strictly in accordance with its guidelines and mandated procedures, Progressive Energy Index LLC (the “Index Provider”) includes the companies in the Index pursuant to a proprietary selection methodology. The Index is composed of common stocks of companies that are publicly traded in the United States and are engaged in a business or businesses that the Index Provider believes may substantially benefit from a societal shift toward the transitional energy technologies significant in improving the use of fossil fuels and nuclear power. At its discretion, the Index Provider reviews the Index component stocks quarterly, or more often. 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, 2017, on a market price basis, the Fund returned 16.85%. On a net asset value (“NAV”) basis, the Fund returned 16.84%. During the same time period, the Index returned 17.71%. 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 NASDAQ Composite Index (Price Only) (the “Benchmark Index”) returned 26.64%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 2,540 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 because 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 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 most overweight in the oil, gas & consumable fuels industry and most underweight in the internet software & services industry during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative
to the Benchmark Index during the period can be attributed to the Fund being underweight the software, internet software & services, and the technology hardware storage & peripherals industries as well as stock selection in the independent power and renewable electricity producers industry.
For the fiscal year ended April 30, 2017, the machinery industry contributed most significantly to the Fund’s return, followed by the building products and electrical equipment industries, respectively. The oil, gas & consumable fuels industry detracted most significantly from the Fund’s return, followed by the independent power and renewable electricity producers and commercial services & supplies industries, respectively.
Positions that contributed most significantly to the Fund’s return included MasTec, Inc., a construction & engineering company (portfolio average weight of 2.62%), and McDermott International, Inc., an energy equipment & services company (portfolio average weight of 2.96%). Positions that detracted most significantly from the Fund’s return included Southwestern Energy Co., an oil, gas & consumable fuels company (portfolio average weight of 2.77%), and Range Resources Corp., an oil, gas & consumable fuels company (portfolio average weight of 2.77%).
| 26 |
|
PowerShares WilderHill Progressive Energy Portfolio (PUW) (continued)
Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Oil, Gas & Consumable Fuels | 19.4 | |||
Machinery | 16.4 | |||
Electrical Equipment | 12.9 | |||
Chemicals | 8.2 | |||
Building Products | 7.7 | |||
Construction & Engineering | 5.4 | |||
Independent Power & Renewable Electricity Producers | 5.0 | |||
Electric Utilities | 4.7 | |||
Commercial Services & Supplies | 3.9 | |||
Auto Components | 3.1 | |||
Mortgage REITs | 2.8 | |||
Electronic Equipment, Instruments & Components | 2.7 | |||
Energy Equipment & Services | 2.7 | |||
Food & Staples Retailing | 2.6 | |||
Automobiles | 2.5 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
REX American Resources Corp. | 3.0 | |||
FMC Corp. | 2.9 | |||
Altra Industrial Motion Corp. | 2.9 | |||
MasTec, Inc. | 2.8 | |||
Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT | 2.8 | |||
Methanex Corp. | 2.8 | |||
Chesapeake Energy Corp. | 2.8 | |||
Regal Beloit Corp. | 2.7 | |||
Green Plains, Inc. | 2.7 | |||
Chart Industries, Inc. | 2.7 | |||
Total | 28.1 |
* | Excluding money market fund holdings. |
| 27 |
|
PowerShares WilderHill Progressive Energy Portfolio (PUW) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
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 Progressive Energy Index | 17.71 | % | (5.96 | )% | (16.83 | )% | 1.82 | % | 9.45 | % | 0.62 | % | 6.33 | % | 1.95 | % | 22.59 | % | ||||||||||||||||||||||
NASDAQ Composite Index (Price Only)† | 26.64 | 13.70 | 46.98 | 14.70 | 98.52 | 9.13 | 139.50 | 9.43 | 157.91 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 16.84 | (6.27 | ) | (17.67 | ) | 1.23 | 6.30 | (0.10 | ) | (0.99 | ) | 1.24 | 13.88 | |||||||||||||||||||||||||||
Market Price Return | 16.85 | (6.27 | ) | (17.65 | ) | 1.23 | 6.30 | (0.11 | ) | (1.06 | ) | 1.24 | 13.88 |
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, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.99% and the net annual operating expense ratio was indicated as 0.70%.The Financial Highlights section of the Shareholder 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 powershares.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. |
| 28 |
|
PowerShares Aerospace & Defense Portfolio (PPA)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks—100.0% | ||||||||
Aerospace & Defense—71.1% | ||||||||
55,622 | AAR Corp. | $ | 2,001,836 | |||||
106,037 | Aerojet Rocketdyne Holdings, Inc.(b) | 2,376,289 | ||||||
37,644 | Aerovironment, Inc.(b) | 1,075,489 | ||||||
84,325 | Axon Enterprise, Inc.(b) | 2,072,709 | ||||||
213,698 | Boeing Co. (The) | 39,497,801 | ||||||
160,013 | BWX Technologies, Inc. | 7,867,839 | ||||||
43,497 | Cubic Corp. | 2,257,494 | ||||||
71,198 | Curtiss-Wright Corp. | 6,654,165 | ||||||
98,952 | DigitalGlobe, Inc.(b) | 3,186,255 | ||||||
18,039 | Ducommun, Inc.(b) | 530,166 | ||||||
68,886 | Elbit Systems Ltd. (Israel) | 8,182,968 | ||||||
59,264 | Engility Holdings, Inc.(b) | 1,680,134 | ||||||
47,427 | Esterline Technologies Corp.(b) | 4,337,199 | ||||||
202,884 | General Dynamics Corp. | 39,316,890 | ||||||
135,549 | HEICO Corp. | 9,633,468 | ||||||
147,297 | Hexcel Corp. | 7,622,620 | ||||||
74,453 | Huntington Ingalls Industries, Inc. | 14,956,863 | ||||||
66,037 | KEYW Holding Corp. (The)(b) | 626,691 | ||||||
119,166 | Kratos Defense & Security Solutions, Inc.(b) | 908,045 | ||||||
124,464 | L3 Technologies, Inc. | 21,379,181 | ||||||
140,865 | Lockheed Martin Corp. | 37,956,074 | ||||||
62,325 | Mercury Systems, Inc.(b) | 2,329,709 | ||||||
57,802 | Moog, Inc., Class A(b) | 3,968,107 | ||||||
120,594 | Northrop Grumman Corp. | 29,661,300 | ||||||
94,649 | Orbital ATK, Inc. | 9,370,251 | ||||||
201,830 | Raytheon Co. | 31,326,034 | ||||||
209,824 | Rockwell Collins, Inc. | 21,840,580 | ||||||
15,863 | Sparton Corp.(b) | 353,269 | ||||||
56,585 | Teledyne Technologies, Inc.(b) | 7,629,356 | ||||||
435,603 | Textron, Inc. | 20,325,236 | ||||||
85,949 | TransDigm Group, Inc. | 21,206,197 | ||||||
79,495 | Triumph Group, Inc. | 2,082,769 | ||||||
336,518 | United Technologies Corp. | 40,042,277 | ||||||
17,557 | Vectrus, Inc.(b) | 446,650 | ||||||
|
| |||||||
404,701,911 | ||||||||
|
| |||||||
Communications Equipment—4.9% | ||||||||
37,605 | Comtech Telecommunications Corp. | 526,846 | ||||||
198,263 | Harris Corp. | 22,183,647 | ||||||
78,845 | ViaSat, Inc.(b) | 5,048,445 | ||||||
|
| |||||||
27,758,938 | ||||||||
|
| |||||||
Construction & Engineering—0.6% | ||||||||
230,136 | KBR, Inc. | 3,233,411 | ||||||
|
| |||||||
Containers & Packaging—3.8% | ||||||||
281,801 | Ball Corp. | 21,667,679 | ||||||
|
| |||||||
Electronic Equipment, Instruments & Components—1.8% | ||||||||
219,710 | FLIR Systems, Inc. | 8,069,948 | ||||||
30,478 | OSI Systems, Inc.(b) | 2,358,997 | ||||||
|
| |||||||
10,428,945 | ||||||||
|
| |||||||
Industrial Conglomerates—7.0% | ||||||||
302,270 | Honeywell International, Inc. | 39,639,688 | ||||||
|
| |||||||
IT Services—7.2% | ||||||||
238,498 | Booz Allen Hamilton Holding Corp. | 8,569,233 | ||||||
39,196 | CACI International, Inc., Class A(b) | 4,625,128 | ||||||
262,566 | CSRA, Inc. | 7,635,419 |
Number of Shares | Value | |||||||
Common Stocks (continued) | ||||||||
IT Services (continued) | ||||||||
241,735 | Leidos Holdings, Inc. | $ | 12,729,765 | |||||
62,437 | ManTech International Corp., Class A | 2,216,514 | ||||||
72,523 | Science Applications International Corp. | 5,293,454 | ||||||
|
| |||||||
41,069,513 | ||||||||
|
| |||||||
Machinery—2.6% | ||||||||
119,135 | Oshkosh Corp. | 8,266,778 | ||||||
99,251 | Woodward, Inc. | 6,716,315 | ||||||
|
| |||||||
14,983,093 | ||||||||
|
| |||||||
Software—0.6% | ||||||||
281,372 | FireEye, Inc.(b) | 3,519,964 | ||||||
|
| |||||||
Trading Companies & Distributors—0.4% | ||||||||
43,686 | Kaman Corp. | 2,097,365 | ||||||
|
| |||||||
Total Common Stocks (Cost $492,657,774) | 569,100,507 | |||||||
|
| |||||||
Money Market Fund—0.0% | ||||||||
128,000 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(c) (Cost $128,000) | 128,000 | ||||||
|
| |||||||
Total Investments (Cost $492,785,774)—100.0% | 569,228,507 | |||||||
Other assets less liabilities—(0.0)% | (79,017 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 569,149,490 | ||||||
|
|
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, 2017. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 29 |
|
PowerShares CleantechTM Portfolio (PZD)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—99.9% | ||||||||
Aerospace & Defense—2.4% | ||||||||
43,141 | Hexcel Corp. | $ | 2,232,547 | |||||
|
| |||||||
Auto Components—2.9% | ||||||||
64,498 | BorgWarner, Inc. | 2,726,975 | ||||||
|
| |||||||
Building Products—5.8% | ||||||||
64,249 | Johnson Controls International PLC | 2,670,831 | ||||||
77,965 | Kingspan Group PLC (Ireland) | 2,711,280 | ||||||
|
| |||||||
5,382,111 | ||||||||
|
| |||||||
Chemicals—6.6% | ||||||||
635 | Gurit Holding AG (Switzerland) | 553,061 | ||||||
66,828 | Novozymes A/S, Class B (Denmark) | 2,886,506 | ||||||
45,059 | Umicore SA (Belgium) | 2,637,351 | ||||||
|
| |||||||
6,076,918 | ||||||||
|
| |||||||
Commercial Services & Supplies—2.2% | ||||||||
54,044 | CECO Environmental Corp. | 610,157 | ||||||
125,152 | Tomra Systems ASA (Norway) | 1,457,294 | ||||||
|
| |||||||
2,067,451 | ||||||||
|
| |||||||
Communications Equipment—1.6% | ||||||||
40,595 | CalAmp Corp.(b) | 728,274 | ||||||
156,256 | Telit Communications PLC (United Kingdom) | 751,516 | ||||||
|
| |||||||
1,479,790 | ||||||||
|
| |||||||
Construction & Engineering—0.9% | ||||||||
35,752 | Aegion Corp.(b) | 815,861 | ||||||
|
| |||||||
Electrical Equipment—19.6% | ||||||||
113,948 | ABB Ltd. (Switzerland) | 2,788,461 | ||||||
28,136 | EnerSys | 2,338,383 | ||||||
125,083 | Gamesa Corp. Tecnologica SA (Spain) | 2,701,708 | ||||||
51,980 | Lumenpulse, Inc. (Canada)(b) | 801,389 | ||||||
36,799 | Schneider Electric SE (France) | 2,905,239 | ||||||
58,620 | Sensata Technologies Holding NV(b) | 2,413,972 | ||||||
68,813 | SGL Carbon SE (Germany)(b)(c) | 695,611 | ||||||
35,065 | TPI Composites, Inc.(b) | 689,027 | ||||||
33,146 | Vestas Wind Systems A/S (Denmark) | 2,853,648 | ||||||
|
| |||||||
18,187,438 | ||||||||
|
| |||||||
Electronic Equipment, Instruments & Components—9.9% | ||||||||
30,147 | Badger Meter, Inc. | 1,198,343 | ||||||
26,907 | Horiba Ltd. (Japan) | 1,585,888 | ||||||
26,835 | Itron, Inc.(b) | 1,740,250 | ||||||
606,333 | Opus Group AB (Sweden) | 482,749 | ||||||
118,027 | Pure Technologies Ltd. (Canada) | 389,309 | ||||||
82,799 | Trimble, Inc.(b) | 2,933,569 | ||||||
16,960 | Vaisala Oyj, Class A (Finland) | 812,433 | ||||||
|
| |||||||
9,142,541 | ||||||||
|
| |||||||
Independent Power & Renewable Electricity Producers—3.8% | ||||||||
12,489,643 | Energy Development Corp. (Philippines) | 1,507,306 | ||||||
34,831 | Ormat Technologies, Inc. | 2,057,119 | ||||||
|
| |||||||
3,564,425 | ||||||||
|
| |||||||
Industrial Conglomerates—7.4% | ||||||||
36,379 | Raven Industries, Inc. | 1,127,749 | ||||||
12,963 | Roper Technologies, Inc. | 2,835,008 | ||||||
19,896 | Siemens AG (Germany) | 2,851,212 | ||||||
|
| |||||||
6,813,969 | ||||||||
|
|
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Life Sciences Tools & Services—3.1% | ||||||||
5,918 | Eurofins Scientific SE (Luxembourg) | $ | 2,913,515 | |||||
|
| |||||||
Machinery—9.9% | ||||||||
51,021 | Donaldson Co., Inc. | 2,361,252 | ||||||
12,418 | Kadant, Inc. | 771,779 | ||||||
11,007 | Lindsay Corp.(c) | 956,068 | ||||||
34,074 | Woodward, Inc. | 2,305,787 | ||||||
54,121 | Xylem, Inc. | 2,782,361 | ||||||
|
| |||||||
9,177,247 | ||||||||
|
| |||||||
Mortgage REITs—1.3% | ||||||||
53,274 | Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT | 1,167,766 | ||||||
|
| |||||||
Professional Services—7.5% | ||||||||
52,610 | Intertek Group PLC (United Kingdom) | 2,767,489 | ||||||
31,562 | Mistras Group, Inc.(b) | 710,145 | ||||||
62,527 | Ricardo PLC (United Kingdom) | 709,847 | ||||||
1,246 | SGS SA (Switzerland) | 2,802,546 | ||||||
|
| |||||||
6,990,027 | ||||||||
|
| |||||||
Semiconductors & Semiconductor Equipment—8.2% | ||||||||
27,335 | Advanced Energy Industries, Inc.(b) | 2,017,323 | ||||||
66,911 | Cree, Inc.(b) | 1,464,013 | ||||||
765,733 | Meyer Burger Technology AG (Switzerland)(b)(c) | 630,771 | ||||||
21,090 | Power Integrations, Inc. | 1,390,886 | ||||||
24,698 | SMA Solar Technology AG (Germany)(c) | 638,888 | ||||||
43,409 | SolarEdge Technologies, Inc.(b)(c) | 701,055 | ||||||
106,048 | SunPower Corp.(b)(c) | 735,973 | ||||||
|
| |||||||
7,578,909 | ||||||||
|
| |||||||
Software—6.8% | ||||||||
25,152 | ANSYS, Inc.(b) | 2,770,744 | ||||||
31,102 | Autodesk, Inc.(b) | 2,801,357 | ||||||
60,179 | Silver Spring Networks, Inc.(b) | 686,643 | ||||||
|
| |||||||
6,258,744 | ||||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $66,005,659)—99.9% | 92,576,234 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—3.7% | ||||||||
3,423,677 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $3,423,677) | 3,423,677 | ||||||
|
| |||||||
Total Investments (Cost $69,429,336)—103.6% | 95,999,911 | |||||||
Other assets less liabilities—(3.6)% | (3,360,840 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 92,639,071 | ||||||
|
|
Investment Abbreviations:
REIT—Real Estate Investment Trust
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 30 |
|
PowerShares CleantechTM Portfolio (PZD) (continued)
April 30, 2017
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, 2017. |
(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, 2017. |
(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 2K. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 31 |
|
PowerShares DWA Momentum Portfolio (PDP)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Consumer Discretionary—18.1% | ||||||||
22,824 | Amazon.com, Inc.(b) | $ | 21,111,972 | |||||
209,782 | CBS Corp., Class B | 13,963,090 | ||||||
28,174 | Charter Communications, Inc., Class A(b) | 9,724,538 | ||||||
59,883 | Cracker Barrel Old Country Store, Inc. | 9,592,658 | ||||||
190,394 | Domino’s Pizza, Inc. | 34,535,568 | ||||||
52,223 | Home Depot, Inc. (The) | 8,152,010 | ||||||
296,806 | Interpublic Group of Cos., Inc. (The) | 6,995,717 | ||||||
167,365 | Liberty Ventures, Series A(b) | 9,012,605 | ||||||
3,553 | NVR, Inc.(b) | 7,501,271 | ||||||
140,505 | O’Reilly Automotive, Inc.(b) | 34,866,316 | ||||||
39,562 | Panera Bread Co., Class A(b) | 12,370,246 | ||||||
65,372 | Pool Corp. | 7,819,799 | ||||||
22,753 | Priceline Group, Inc. (The)(b) | 42,020,696 | ||||||
2,801,077 | Sirius XM Holdings, Inc. | 13,865,331 | ||||||
105,177 | TJX Cos., Inc. (The) | 8,271,119 | ||||||
42,150 | Vail Resorts, Inc. | 8,331,369 | ||||||
77,837 | Visteon Corp.(b) | 8,013,319 | ||||||
|
| |||||||
256,147,624 | ||||||||
|
| |||||||
Consumer Staples—2.8% | ||||||||
333,582 | Altria Group, Inc. | 23,944,516 | ||||||
43,810 | Costco Wholesale Corp. | 7,777,151 | ||||||
52,359 | Spectrum Brands Holdings, Inc. | 7,525,559 | ||||||
|
| |||||||
39,247,226 | ||||||||
|
| |||||||
Energy—1.4% | ||||||||
255,914 | Cheniere Energy, Inc.(b) | 11,605,700 | ||||||
76,152 | Diamondback Energy, Inc.(b) | 7,603,016 | ||||||
|
| |||||||
19,208,716 | ||||||||
|
| |||||||
Financials—14.7% | ||||||||
92,286 | American Financial Group, Inc. | 8,980,351 | ||||||
59,639 | Ameriprise Financial, Inc. | 7,624,846 | ||||||
331,852 | Arch Capital Group Ltd.(b) | 32,179,689 | ||||||
353,168 | Bank of the Ozarks, Inc. | 16,764,885 | ||||||
81,745 | Chubb Ltd. | 11,219,501 | ||||||
120,477 | Discover Financial Services | 7,540,655 | ||||||
10,711 | Markel Corp.(b) | 10,385,386 | ||||||
173,020 | MarketAxess Holdings, Inc. | 33,309,810 | ||||||
118,472 | Pinnacle Financial Partners, Inc. | 7,582,208 | ||||||
136,438 | RenaissanceRe Holdings Ltd. (Bermuda) | 19,397,391 | ||||||
93,623 | Torchmark Corp. | 7,181,820 | ||||||
375,080 | W.R. Berkley Corp. | 25,497,938 | ||||||
219,541 | Western Alliance Bancorp(b) | 10,516,014 | ||||||
11,978 | White Mountains Insurance Group Ltd. | 10,288,383 | ||||||
|
| |||||||
208,468,877 | ||||||||
|
| |||||||
Health Care—12.3% | ||||||||
67,107 | Align Technology, Inc.(b) | 9,033,944 | ||||||
53,882 | Becton, Dickinson and Co. | 10,074,318 | ||||||
161,093 | Cantel Medical Corp. | 11,986,930 | ||||||
66,658 | Cooper Cos., Inc. (The) | 13,353,597 | ||||||
186,080 | Danaher Corp. | 15,506,046 | ||||||
1,361,042 | Exelixis, Inc.(b) | 30,487,341 | ||||||
53,529 | IDEXX Laboratories, Inc.(b) | 8,978,419 | ||||||
84,528 | Masimo Corp.(b) | 8,684,407 | ||||||
31,721 | Mettler-Toledo International, Inc.(b) | 16,286,196 | ||||||
100,163 | NuVasive, Inc.(b) | 7,262,819 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
44,026 | UnitedHealth Group, Inc. | $ | 7,699,267 | |||||
48,950 | Waters Corp.(b) | 8,316,116 | ||||||
288,542 | West Pharmaceutical Services, Inc. | 26,554,520 | ||||||
|
| |||||||
174,223,920 | ||||||||
|
| |||||||
Industrials—24.8% | ||||||||
37,424 | 3M Co. | 7,328,742 | ||||||
247,543 | A.O. Smith Corp. | 13,337,617 | ||||||
235,638 | Alaska Air Group, Inc. | 20,050,437 | ||||||
444,435 | Copart, Inc.(b) | 13,733,042 | ||||||
103,652 | Deluxe Corp. | 7,453,615 | ||||||
106,570 | EnerSys | 8,857,033 | ||||||
43,329 | Huntington Ingalls Industries, Inc. | 8,704,363 | ||||||
119,626 | IDEX Corp. | 12,532,020 | ||||||
54,080 | Illinois Tool Works, Inc. | 7,467,907 | ||||||
371,014 | J.B. Hunt Transport Services, Inc. | 33,265,115 | ||||||
43,087 | Lennox International, Inc. | 7,126,159 | ||||||
88,329 | Lockheed Martin Corp. | 23,800,249 | ||||||
460,712 | Macquarie Infrastructure Corp. | 37,488,135 | ||||||
108,744 | Middleby Corp. (The)(b) | 14,803,321 | ||||||
69,051 | Northrop Grumman Corp. | 16,983,784 | ||||||
152,363 | Old Dominion Freight Line, Inc. | 13,487,173 | ||||||
829,484 | Rollins, Inc. | 32,208,864 | ||||||
123,519 | Roper Technologies, Inc. | 27,013,605 | ||||||
61,058 | Stanley Black & Decker, Inc. | 8,313,047 | ||||||
85,811 | Teledyne Technologies, Inc.(b) | 11,569,897 | ||||||
135,836 | Toro Co. (The) | 8,818,473 | ||||||
150,221 | Union Pacific Corp. | 16,818,743 | ||||||
|
| |||||||
351,161,341 | ||||||||
|
| |||||||
Information Technology—18.4% | ||||||||
1,235,859 | Advanced Micro Devices, Inc.(b) | 16,436,925 | ||||||
301,852 | Amphenol Corp., Class A | 21,826,918 | ||||||
294,557 | Apple, Inc. | 42,313,113 | ||||||
134,204 | Aspen Technology, Inc.(b) | 8,252,204 | ||||||
290,955 | Cadence Design Systems, Inc.(b) | 9,476,404 | ||||||
37,701 | Coherent, Inc.(b) | 8,128,336 | ||||||
106,967 | Electronic Arts, Inc.(b) | 10,142,611 | ||||||
68,884 | Facebook, Inc., Class A(b) | 10,349,821 | ||||||
61,525 | Fair Isaac Corp. | 8,335,407 | ||||||
161,598 | Fiserv, Inc.(b) | 19,252,786 | ||||||
60,510 | Intuit, Inc. | 7,576,457 | ||||||
84,805 | IPG Photonics Corp.(b) | 10,712,568 | ||||||
84,577 | Jack Henry & Associates, Inc. | 8,197,203 | ||||||
74,062 | Littelfuse, Inc. | 11,416,657 | ||||||
257,451 | Mastercard, Inc., Class A | 29,946,700 | ||||||
202,228 | MAXIMUS, Inc. | 12,333,886 | ||||||
97,749 | Monolithic Power Systems, Inc. | 8,944,033 | ||||||
145,342 | Take-Two Interactive Software, Inc.(b) | 9,134,745 | ||||||
86,125 | Visa, Inc., Class A | 7,856,322 | ||||||
|
| |||||||
260,633,096 | ||||||||
|
| |||||||
Materials—3.5% | ||||||||
599,209 | Chemours Co. (The) | 24,142,131 | ||||||
95,611 | Ecolab, Inc. | 12,342,424 | ||||||
155,572 | RPM International, Inc. | 8,176,864 | ||||||
253,620 | United States Steel Corp. | 5,660,798 | ||||||
|
| |||||||
50,322,217 | ||||||||
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 32 |
|
PowerShares DWA Momentum Portfolio (PDP) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Real Estate—0.5% | ||||||||
160,567 | Apartment Investment & Management Co., Class A REIT | $ | 7,023,200 | |||||
|
| |||||||
Telecommunication Services—0.5% | ||||||||
114,554 | T-Mobile US, Inc.(b) | 7,706,048 | ||||||
|
| |||||||
Utilities—3.0% | ||||||||
93,167 | Atmos Energy Corp. | 7,548,390 | ||||||
195,325 | CMS Energy Corp. | 8,867,755 | ||||||
64,685 | NextEra Energy, Inc. | 8,639,329 | ||||||
362,797 | UGI Corp. | 18,197,897 | ||||||
|
| |||||||
43,253,371 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $1,198,209,220) | 1,417,395,636 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
740,212 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(c) (Cost $740,212) | 740,212 | ||||||
|
| |||||||
Total Investments (Cost $1,198,949,432)—100.1% | 1,418,135,848 | |||||||
Other assets less liabilities—(0.1)% | (1,066,016 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 1,417,069,832 | ||||||
|
|
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, 2017. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 33 |
|
PowerShares Global Listed Private Equity Portfolio (PSP)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—87.4% | ||||||||
Capital Markets—51.0% | ||||||||
1,546,030 | 3i Group PLC (United Kingdom) | $ | 15,871,396 | |||||
125,393 | Alaris Royalty Corp. (Canada)(b) | 1,996,494 | ||||||
791,363 | Allied Minds PLC (United Kingdom)(c) | 1,604,335 | ||||||
136,606 | Altamir (France) | 2,292,346 | ||||||
289,988 | Apollo Global Management LLC, Class A | 7,762,979 | ||||||
556,915 | Apollo Investment Corp. | 3,781,453 | ||||||
555,891 | Ares Capital Corp. | 9,783,682 | ||||||
77,393 | AURELIUS Equity Opportunities SE & Co. KGaA (Germany)(b) | 3,817,752 | ||||||
189,273 | BlackRock Capital Investment Corp. | 1,387,371 | ||||||
1,004,011 | Brait SE (South Africa)(c) | 6,400,465 | ||||||
193,728 | Bure Equity AB (Sweden) | 2,395,674 | ||||||
303,979 | Carlyle Group LP (The) | 5,380,428 | ||||||
59,005 | Deutsche Beteiligungs AG (Germany) | 2,245,017 | ||||||
355,662 | Fifth Street Finance Corp. | 1,632,489 | ||||||
502,918 | FS Investment Corp.(b) | 4,878,305 | ||||||
74,541 | Gimv NV (Belgium) | 4,545,599 | ||||||
77,029 | Goldman Sachs BDC, Inc. | 1,925,725 | ||||||
122,330 | Golub Capital BDC, Inc.(b) | 2,484,522 | ||||||
234,492 | Hercules Capital, Inc. | 3,639,316 | ||||||
625,892 | Intermediate Capital Group PLC (United Kingdom) | 6,324,129 | ||||||
1,705,545 | IP Group PLC (United Kingdom)(c) | 3,078,135 | ||||||
135,366 | JAFCO Co. Ltd. (Japan) | 4,821,055 | ||||||
111,626 | Main Street Capital Corp.(b) | 4,469,505 | ||||||
184,692 | Medley Capital Corp. | 1,425,822 | ||||||
141,467 | New Mountain Finance Corp. | 2,107,858 | ||||||
27,848 | Partners Group Holding AG (Switzerland)(b) | 16,827,135 | ||||||
213,028 | PennantPark Investment Corp. | 1,706,354 | ||||||
267,318 | Princess Private Equity Holding Ltd. (Guernsey) | 2,918,236 | ||||||
608,530 | Prospect Capital Corp.(b) | 5,659,329 | ||||||
864,200 | Ratos AB, Class B (Sweden)(b) | 4,054,170 | ||||||
112,944 | Safeguard Scientifics, Inc.(c) | 1,434,389 | ||||||
94,723 | Solar Capital Ltd. | 2,160,632 | ||||||
111,322 | Triangle Capital Corp.(b) | 2,106,212 | ||||||
5,419,959 | Zeder Investments Ltd. (South Africa) | 2,903,604 | ||||||
|
| |||||||
145,821,913 | ||||||||
|
| |||||||
Diversified Financial Services—22.0% | ||||||||
48,320 | Ackermans & van Haaren NV (Belgium) | 7,903,232 | ||||||
1,119,595 | Apax Global Alpha Ltd. (Guernsey)(d) | 2,031,487 | ||||||
531,396 | Better Capital PCC Ltd. (United Kingdom) | 735,618 | ||||||
838,812 | China Merchants China Direct Investments Ltd. (China) | 1,235,966 | ||||||
168,890 | Compass Diversified Holdings(b) | 2,845,796 | ||||||
76,696 | Electra Private Equity PLC (United Kingdom) | 2,640,389 | ||||||
127,104 | Eurazeo SA (France) | 8,614,630 | ||||||
171,531 | FNFV Group(c) | 2,349,975 | ||||||
139,238 | HgCapital Trust PLC (United Kingdom) | 2,666,059 | ||||||
399,376 | Leucadia National Corp. | 10,140,157 | ||||||
181,456 | Onex Corp. (Canada) | 13,070,724 | ||||||
61,919 | Wendel SA (France) | 8,674,443 | ||||||
|
| |||||||
62,908,476 | ||||||||
|
| |||||||
Electrical Equipment—3.6% | ||||||||
3,337,225 | Melrose Industries PLC (United Kingdom) | 10,210,968 | ||||||
|
|
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Food Products—1.6% | ||||||||
46,091 | Schouw & Co. (Denmark) | $ | 4,747,579 | |||||
|
| |||||||
Health Care Providers & Services—1.4% | ||||||||
130,232 | Lifco AB, Class B (Sweden) | 3,963,672 | ||||||
|
| |||||||
Industrial Conglomerates—3.5% | ||||||||
6,552,789 | Fosun International Ltd. (China) | 9,924,958 | ||||||
|
| |||||||
Internet Software & Services—4.3% | ||||||||
104,232 | IAC/InterActiveCorp.(c) | 8,652,298 | ||||||
204,907 | Rocket Internet SE (Germany)(c)(d) | 3,737,485 | ||||||
|
| |||||||
12,389,783 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $231,537,726) | 249,967,349 | |||||||
|
| |||||||
Money Market Fund—8.6% | ||||||||
24,590,156 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(e) (Cost $24,590,156) | 24,590,156 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $256,127,882)—96.0% | 274,557,505 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—11.9% | ||||||||
34,133,098 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(e)(f) (Cost $34,133,098) | 34,133,098 | ||||||
|
| |||||||
Total Investments (Cost $290,260,980)—107.9% | 308,690,603 | |||||||
Other assets less liabilities—(7.9)% | (22,547,277 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 286,143,326 | ||||||
|
|
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, 2017. |
(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 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, 2017 was $5,768,972, which represented 2.02% 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, 2017. |
(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 2K. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 34 |
|
PowerShares Global Listed Private Equity Portfolio (PSP) (continued)
April 30, 2017
This Fund has holdings greater than 10% of net assets in the following country:
United Kingdom | 15.1 | % |
Open Over-The-Counter Total Return Swap Agreements | ||||||||||||||||||||
Counterparty | Pay/Receive | Reference Entity | Rate | Termination Date | Notional Value(a) | Unrealized Appreciation (Depreciation) | ||||||||||||||
Citibank, N.A. | Receive | The Blackstone Group LP | 1-Month LIBOR plus 65 basis points | October-2017 | $ | 11,144,503 | $ | 293,230 | ||||||||||||
Citibank, N.A. | Receive | Brookfield Business Partners LP | 1-Month LIBOR plus 65 basis points | October-2017 | CAD | 3,591,205 | 59,915 | |||||||||||||
Citibank, N.A. | Receive | KKR & Co. LP | 1-Month LIBOR plus 65 basis points | October-2017 | 9,863,672 | 837,860 | ||||||||||||||
Morgan Stanley Capital Services LLC | Receive | Riverstone Energy Ltd. | 1-Month LIBOR plus 85 basis points | August-2018 | GBP | 2,332,892 | (2,554 | ) | ||||||||||||
|
| |||||||||||||||||||
Total Open Over-The-Counter Total Return Swap Agreements—Equity Risk | $ | 1,188,451 | ||||||||||||||||||
|
|
Investment Abbreviations:
CAD—Canadian Dollar
GBP—Pound Sterling
LIBOR—London Interbank Offered Rate
(a) | Notional Value is denominated in U.S. Dollars unless otherwise noted. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 35 |
|
PowerShares Golden Dragon China Portfolio (PGJ)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Consumer Discretionary—39.1% | ||||||||
49,723 | 500.com Ltd., Class A ADR (China)(b) | $ | 646,896 | |||||
76,176 | AirMedia Group, Inc. ADR (China)(b) | 202,628 | ||||||
55,054 | China Automotive Systems, Inc. (China)(b) | 262,608 | ||||||
35,237 | China Distance Education Holdings Ltd. ADR (China) | 358,360 | ||||||
56,247 | China Lodging Group Ltd. ADR (China)(b)(c) | 3,992,412 | ||||||
236,582 | Ctrip.com International Ltd. ADR (China)(b) | 11,949,757 | ||||||
367,147 | JD.Com, Inc., Class A ADR (China)(b) | 12,875,845 | ||||||
158,669 | Jumei International Holding Ltd., Class A ADR (China)(b) | 525,194 | ||||||
82,827 | Kandi Technologies Group, Inc. (China)(b)(c) | 339,591 | ||||||
213,273 | New Oriental Education & Technology Group, Inc. ADR (China)(b) | 13,764,640 | ||||||
64,894 | TAL Education Group ADR (China)(b) | 7,729,524 | ||||||
52,570 | Tarena International, Inc., Class A ADR (China)(b)(c) | 978,328 | ||||||
55,411 | Tuniu Corp., Class A ADR (China)(b)(c) | 453,262 | ||||||
431,365 | Vipshop Holdings Ltd., Class A ADR (China)(b) | 5,983,033 | ||||||
|
| |||||||
60,062,078 | ||||||||
|
| |||||||
Consumer Staples—0.4% | ||||||||
137,511 | Pingtan Marine Enterprise Ltd.(c) | 655,927 | ||||||
|
| |||||||
Energy—3.0% | ||||||||
19,002 | China Petroleum & Chemical Corp., H-Shares ADR (China) | 1,546,193 | ||||||
17,491 | CNOOC Ltd. ADR (China) | 2,031,579 | ||||||
13,671 | PetroChina Co. Ltd., H-Shares ADR (China) | 960,388 | ||||||
26,179 | Sino Clean Energy, Inc. (China)(b) | 0 | ||||||
|
| |||||||
4,538,160 | ||||||||
|
| |||||||
Financials—1.7% | ||||||||
44,481 | China Life Insurance Co. Ltd., H-Shares ADR (China) | 675,666 | ||||||
63,575 | Fanhua, Inc. ADR (China)(b) | 537,844 | ||||||
43,075 | Noah Holdings Ltd. ADR (China)(b)(c) | 1,086,352 | ||||||
15,992 | Yintech Investment Holdings Ltd. ADR (China) | 252,034 | ||||||
|
| |||||||
2,551,896 | ||||||||
|
| |||||||
Health Care—4.8% | ||||||||
47,254 | China Biologic Products, Inc. (China)(b) | 5,575,972 | ||||||
80,435 | iKang Healthcare Group, Inc., Class A ADR (China)(b)(c) | 1,179,981 | ||||||
99,086 | Sinovac Biotech Ltd. (China)(b) | 553,891 | ||||||
|
| |||||||
7,309,844 | ||||||||
|
| |||||||
Industrials—3.1% | ||||||||
46,579 | 51job, Inc. ADR (China)(b) | 1,909,273 | ||||||
51,368 | eHi Car Services Ltd., Class A ADR (China)(b)(c) | 519,844 | ||||||
34,748 | Zhaopin Ltd., Class A ADR (Australia)(b) | 623,727 | ||||||
125,356 | ZTO Express Cayman, Inc. ADR (China)(b)(c) | 1,746,209 | ||||||
|
| |||||||
4,799,053 | ||||||||
|
| |||||||
Information Technology—43.0% | ||||||||
100,833 | 21Vianet Group, Inc., Class A ADR (China)(b)(c) | 545,507 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
153,338 | 58.com, Inc., Class A ADR (China)(b) | $ | 6,069,118 | |||||
87,501 | Autohome, Inc., Class A ADR (China)(b)(c) | 3,027,535 | ||||||
64,456 | Baidu, Inc. ADR (China)(b) | 11,616,905 | ||||||
48,744 | Baozun, Inc. ADR (China)(b) | 744,321 | ||||||
47,542 | Bitauto Holdings Ltd. ADR (China)(b)(c) | 1,393,931 | ||||||
100,425 | Canadian Solar, Inc. (Canada)(b)(c) | 1,335,652 | ||||||
32,387 | Changyou.com Ltd., Class A ADR (China)(b) | 1,057,436 | ||||||
64,762 | Cheetah Mobile, Inc., Class A ADR (China)(b)(c) | 682,591 | ||||||
31,828 | China Customer Relations Center, Inc. (China)(b)(c) | 475,510 | ||||||
12,448 | Daqo New Energy Corp. ADR (China)(b) | 231,657 | ||||||
517,377 | Fang Holdings Ltd. ADR (China)(b) | 1,733,213 | ||||||
104,753 | Hollysys Automation Technologies Ltd. (China) | 1,680,238 | ||||||
69,954 | JA Solar Holdings Co. Ltd. ADR (China)(b)(c) | 490,378 | ||||||
39,637 | JinkoSolar Holding Co. Ltd. ADR (China)(b)(c) | 687,306 | ||||||
136,899 | Momo, Inc., Class A ADR (China)(b) | 5,199,424 | ||||||
36,794 | NetEase, Inc. ADR (China) | 9,764,760 | ||||||
148,150 | NQ Mobile, Inc., Class A ADR (China)(b)(c) | 558,525 | ||||||
53,989 | Phoenix New Media Ltd., Class A ADR (China)(b) | 188,422 | ||||||
27,213 | Renren, Inc., Class A ADR (China)(b)(c) | 200,832 | ||||||
33,125 | Semiconductor Manufacturing International Corp. ADR (China)(b) | 208,356 | ||||||
80,717 | SINA Corp. (China)(b) | 6,199,873 | ||||||
67,469 | Sohu.com, Inc. (China)(b) | 2,617,797 | ||||||
98,994 | Weibo Corp., Class A ADR (China)(b)(c) | 5,529,805 | ||||||
17,421 | Yirendai Ltd. ADR (China)(b)(c) | 434,828 | ||||||
66,623 | YY, Inc., Class A ADR (China)(b) | 3,262,528 | ||||||
|
| |||||||
65,936,448 | ||||||||
|
| |||||||
Real Estate—0.5% | ||||||||
63,726 | Nam Tai Property, Inc. (China) | 500,249 | ||||||
73,359 | Xinyuan Real Estate Co. Ltd. ADR (China) | 341,853 | ||||||
|
| |||||||
842,102 | ||||||||
|
| |||||||
Telecommunication Services—4.2% | ||||||||
101,557 | China Mobile Ltd. ADR (China) | 5,415,019 | ||||||
6,693 | China Telecom Corp. Ltd., H-Shares ADR (China) | 328,091 | ||||||
51,354 | China Unicom (Hong Kong) Ltd. ADR (China) | 666,575 | ||||||
|
| |||||||
6,409,685 | ||||||||
|
| |||||||
Utilities—0.2% | ||||||||
12,921 | Huaneng Power International, Inc., H-Shares ADR (China) | 353,519 | ||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $135,331,134) | 153,458,712 | |||||||
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 36 |
|
PowerShares Golden Dragon China Portfolio (PGJ) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Money Market Fund—0.1% | ||||||||
164,476 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $164,476) | $ | 164,476 | |||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $135,495,610)—100.1% | 153,623,188 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—7.7% | ||||||||
11,762,737 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $11,762,737) | 11,762,737 | ||||||
|
| |||||||
Total Investments (Cost $147,258,347)—107.8% | 165,385,925 | |||||||
Other assets less liabilities—(7.8)% | (11,926,364 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 153,459,561 | ||||||
|
|
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, 2017. |
(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, 2017. |
(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 2K. |
This Fund has holdings greater than 10% of net assets in the following country:
China | 98.3% |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 37 |
|
PowerShares S&P 500 BuyWrite Portfolio (PBP)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—101.6%(b) | ||||||||
Consumer Discretionary—12.7% | ||||||||
1,199 | Advance Auto Parts, Inc. | $ | 170,426 | |||||
6,438 | Amazon.com, Inc.(c) | 5,955,086 | ||||||
1,066 | AutoNation, Inc.(c) | 44,772 | ||||||
463 | AutoZone, Inc.(c) | 320,484 | ||||||
2,444 | Bed Bath & Beyond, Inc. | 94,705 | ||||||
4,402 | Best Buy Co., Inc. | 228,068 | ||||||
3,250 | BorgWarner, Inc. | 137,410 | ||||||
3,042 | CarMax, Inc.(c) | 177,957 | ||||||
6,794 | Carnival Corp. | 419,665 | ||||||
6,046 | CBS Corp., Class B | 402,422 | ||||||
3,497 | Charter Communications, Inc., Class A(c) | 1,207,025 | ||||||
467 | Chipotle Mexican Grill, Inc.(c) | 221,577 | ||||||
4,562 | Coach, Inc. | 179,697 | ||||||
76,935 | Comcast Corp., Class A | 3,015,083 | ||||||
5,524 | D.R. Horton, Inc. | 181,684 | ||||||
2,019 | Darden Restaurants, Inc. | 171,999 | ||||||
4,382 | Delphi Automotive PLC | 352,313 | ||||||
2,481 | Discovery Communications, Inc., Class A(c) | 71,403 | ||||||
3,507 | Discovery Communications, Inc., Class C(c) | 98,126 | ||||||
3,689 | DISH Network Corp., Class A(c) | 237,719 | ||||||
4,131 | Dollar General Corp. | 300,365 | ||||||
3,837 | Dollar Tree, Inc.(c) | 317,588 | ||||||
1,960 | Expedia, Inc. | 262,091 | ||||||
2,152 | Foot Locker, Inc. | 166,436 | ||||||
63,454 | Ford Motor Co. | 727,817 | ||||||
3,567 | Gap, Inc. (The) | 93,455 | ||||||
1,870 | Garmin Ltd. | 95,071 | ||||||
22,159 | General Motors Co. | 767,588 | ||||||
2,412 | Genuine Parts Co. | 221,952 | ||||||
4,090 | Goodyear Tire & Rubber Co. (The) | 148,181 | ||||||
3,367 | H&R Block, Inc. | 83,468 | ||||||
6,156 | Hanesbrands, Inc. | 134,262 | ||||||
2,866 | Harley-Davidson, Inc. | 162,817 | ||||||
1,819 | Hasbro, Inc. | 180,281 | ||||||
19,802 | Home Depot, Inc. (The) | 3,091,092 | ||||||
6,384 | Interpublic Group of Cos., Inc. (The) | 150,471 | ||||||
2,868 | Kohl’s Corp. | 111,938 | ||||||
3,905 | L Brands, Inc. | 206,223 | ||||||
2,174 | Leggett & Platt, Inc. | 114,222 | ||||||
3,303 | Lennar Corp., Class A | 166,801 | ||||||
5,007 | LKQ Corp.(c) | 156,419 | ||||||
14,077 | Lowe’s Cos., Inc. | 1,194,856 | ||||||
4,943 | Macy’s, Inc. | 144,434 | ||||||
5,112 | Marriott International, Inc., Class A | 482,675 | ||||||
5,567 | Mattel, Inc. | 124,812 | ||||||
13,314 | McDonald’s Corp. | 1,863,028 | ||||||
2,641 | Michael Kors Holdings Ltd.(c) | 98,589 | ||||||
1,025 | Mohawk Industries, Inc.(c) | 240,660 | ||||||
6,997 | Netflix, Inc.(c) | 1,064,943 | ||||||
7,841 | Newell Brands, Inc. | 374,329 | ||||||
6,205 | News Corp., Class A | 78,928 | ||||||
1,947 | News Corp., Class B | 25,311 | ||||||
21,543 | NIKE, Inc., Class B | 1,193,698 | ||||||
1,851 | Nordstrom, Inc. | 89,348 | ||||||
3,813 | Omnicom Group, Inc. | 313,124 | ||||||
1,490 | O’Reilly Automotive, Inc.(c) | 369,743 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Discretionary (continued) | ||||||||
800 | Priceline Group, Inc. (The)(c) | $ | 1,477,456 | |||||
4,650 | PulteGroup, Inc. | 105,416 | ||||||
1,289 | PVH Corp. | 130,228 | ||||||
915 | Ralph Lauren Corp., Class A | 73,859 | ||||||
6,407 | Ross Stores, Inc. | 416,455 | ||||||
2,724 | Royal Caribbean Cruises Ltd. | 290,378 | ||||||
1,553 | Scripps Networks Interactive, Inc., Class A | 116,040 | ||||||
1,132 | Signet Jewelers Ltd. | 74,531 | ||||||
10,576 | Staples, Inc. | 103,328 | ||||||
23,691 | Starbucks Corp. | 1,422,881 | ||||||
9,041 | Target Corp. | 504,940 | ||||||
3,491 | TEGNA, Inc. | 88,951 | ||||||
1,740 | Tiffany & Co. | 159,471 | ||||||
12,588 | Time Warner, Inc. | 1,249,611 | ||||||
10,597 | TJX Cos., Inc. (The) | 833,348 | ||||||
2,125 | Tractor Supply Co. | 131,559 | ||||||
1,836 | TripAdvisor, Inc.(c) | 82,638 | ||||||
17,107 | Twenty-First Century Fox, Inc., Class A | 522,448 | ||||||
7,918 | Twenty-First Century Fox, Inc., Class B | 236,431 | ||||||
951 | Ulta Beauty, Inc.(c) | 267,649 | ||||||
2,987 | Under Armour, Inc., Class A(c) | 64,191 | ||||||
2,997 | Under Armour, Inc., Class C(c) | 58,172 | ||||||
5,385 | VF Corp. | 294,183 | ||||||
5,649 | Viacom, Inc., Class B | 240,421 | ||||||
23,648 | Walt Disney Co. (The) | 2,733,709 | ||||||
1,211 | Whirlpool Corp. | 224,858 | ||||||
1,707 | Wyndham Worldwide Corp. | 162,694 | ||||||
1,293 | Wynn Resorts Ltd. | 159,052 | ||||||
5,464 | Yum! Brands, Inc. | 359,258 | ||||||
|
| |||||||
41,588,793 | ||||||||
|
| |||||||
Consumer Staples—9.4% | ||||||||
31,527 | Altria Group, Inc. | 2,263,008 | ||||||
9,284 | Archer-Daniels-Midland Co. | 424,743 | ||||||
2,876 | Brown-Forman Corp., Class B | 136,092 | ||||||
3,144 | Campbell Soup Co. | 180,906 | ||||||
4,140 | Church & Dwight Co., Inc. | 205,054 | ||||||
2,085 | Clorox Co. (The) | 278,744 | ||||||
62,814 | Coca-Cola Co. (The) | 2,710,424 | ||||||
14,351 | Colgate-Palmolive Co. | 1,033,846 | ||||||
6,721 | Conagra Brands, Inc. | 260,640 | ||||||
2,808 | Constellation Brands, Inc., Class A | 484,492 | ||||||
7,135 | Costco Wholesale Corp. | 1,266,605 | ||||||
7,652 | Coty, Inc., Class A | 136,588 | ||||||
16,674 | CVS Health Corp. | 1,374,605 | ||||||
2,976 | Dr Pepper Snapple Group, Inc. | 272,750 | ||||||
3,614 | Estee Lauder Cos., Inc. (The), Class A | 314,924 | ||||||
9,428 | General Mills, Inc. | 542,204 | ||||||
2,270 | Hershey Co. (The) | 245,614 | ||||||
4,384 | Hormel Foods Corp. | 153,791 | ||||||
1,892 | JM Smucker Co. (The) | 239,754 | ||||||
4,110 | Kellogg Co. | 291,810 | ||||||
5,783 | Kimberly-Clark Corp. | 750,344 | ||||||
9,695 | Kraft Heinz Co. (The) | 876,331 | ||||||
15,021 | Kroger Co. (The) | 445,373 | ||||||
1,847 | McCormick & Co., Inc. | 184,515 | ||||||
2,982 | Mead Johnson Nutrition Co. | 264,563 |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Staples (continued) | ||||||||
2,998 | Molson Coors Brewing Co., Class B | $ | 287,478 | |||||
24,817 | Mondelez International, Inc., Class A | 1,117,510 | ||||||
6,539 | Monster Beverage Corp.(c) | 296,740 | ||||||
23,200 | PepsiCo, Inc. | 2,628,096 | ||||||
25,219 | Philip Morris International, Inc. | 2,795,274 | ||||||
41,558 | Procter & Gamble Co. (The) | 3,629,260 | ||||||
13,444 | Reynolds American, Inc. | 867,138 | ||||||
8,079 | Sysco Corp. | 427,137 | ||||||
4,664 | Tyson Foods, Inc., Class A | 299,709 | ||||||
13,862 | Walgreens Boots Alliance, Inc. | 1,199,618 | ||||||
24,480 | Wal-Mart Stores, Inc. | 1,840,406 | ||||||
5,178 | Whole Foods Market, Inc. | 188,324 | ||||||
|
| |||||||
30,914,410 | ||||||||
|
| |||||||
Energy—6.4% | ||||||||
9,087 | Anadarko Petroleum Corp. | 518,141 | ||||||
6,172 | Apache Corp. | 300,206 | ||||||
6,914 | Baker Hughes, Inc. | 410,484 | ||||||
7,724 | Cabot Oil & Gas Corp. | 179,506 | ||||||
12,383 | Chesapeake Energy Corp.(c) | 65,135 | ||||||
30,774 | Chevron Corp. | 3,283,586 | ||||||
1,546 | Cimarex Energy Co. | 180,387 | ||||||
2,408 | Concho Resources, Inc.(c) | 304,997 | ||||||
20,090 | ConocoPhillips | 962,512 | ||||||
8,528 | Devon Energy Corp. | 336,771 | ||||||
9,377 | EOG Resources, Inc. | 867,373 | ||||||
2,818 | EQT Corp. | 163,839 | ||||||
67,405 | Exxon Mobil Corp. | 5,503,618 | ||||||
14,093 | Halliburton Co. | 646,587 | ||||||
1,764 | Helmerich & Payne, Inc. | 106,969 | ||||||
4,373 | Hess Corp. | 213,534 | ||||||
31,210 | Kinder Morgan, Inc. | 643,862 | ||||||
13,772 | Marathon Oil Corp. | 204,790 | ||||||
8,580 | Marathon Petroleum Corp. | 437,065 | ||||||
2,635 | Murphy Oil Corp. | 68,984 | ||||||
6,156 | National Oilwell Varco, Inc. | 215,275 | ||||||
3,233 | Newfield Exploration Co.(c) | 111,926 | ||||||
7,400 | Noble Energy, Inc. | 239,242 | ||||||
12,424 | Occidental Petroleum Corp. | 764,573 | ||||||
3,426 | ONEOK, Inc. | 180,242 | ||||||
7,171 | Phillips 66 | 570,525 | ||||||
2,760 | Pioneer Natural Resources Co. | 477,452 | ||||||
3,058 | Range Resources Corp. | 81,006 | ||||||
22,663 | Schlumberger Ltd. | 1,645,107 | ||||||
7,585 | TechnipFMC PLC (United Kingdom)(c) | 228,536 | ||||||
1,902 | Tesoro Corp. | 151,608 | ||||||
6,328 | Transocean Ltd.(c) | 69,798 | ||||||
7,332 | Valero Energy Corp. | 473,721 | ||||||
13,424 | Williams Cos., Inc. (The) | 411,177 | ||||||
|
| |||||||
21,018,534 | ||||||||
|
| |||||||
Financials—14.3% | ||||||||
922 | Affiliated Managers Group, Inc. | 152,674 | ||||||
6,525 | Aflac, Inc. | 488,592 | ||||||
5,936 | Allstate Corp. (The) | 482,537 | ||||||
12,307 | American Express Co. | 975,330 | ||||||
15,127 | American International Group, Inc. | 921,386 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
2,504 | Ameriprise Financial, Inc. | $ | 320,136 | |||||
4,269 | Aon PLC | 511,597 | ||||||
2,903 | Arthur J. Gallagher & Co. | 162,016 | ||||||
904 | Assurant, Inc. | 87,001 | ||||||
162,968 | Bank of America Corp. | 3,803,673 | ||||||
16,865 | Bank of New York Mellon Corp. (The) | 793,667 | ||||||
13,141 | BB&T Corp. | 567,428 | ||||||
30,875 | Berkshire Hathaway, Inc., Class B(c) | 5,100,859 | ||||||
1,979 | BlackRock, Inc. | 761,064 | ||||||
7,814 | Capital One Financial Corp. | 628,089 | ||||||
1,492 | CBOE Holdings, Inc. | 122,956 | ||||||
19,748 | Charles Schwab Corp. (The) | 767,210 | ||||||
7,572 | Chubb Ltd. | 1,039,257 | ||||||
2,437 | Cincinnati Financial Corp. | 175,683 | ||||||
45,040 | Citigroup, Inc. | 2,662,765 | ||||||
8,276 | Citizens Financial Group, Inc. | 303,812 | ||||||
5,521 | CME Group, Inc. | 641,485 | ||||||
2,859 | Comerica, Inc. | 202,131 | ||||||
6,267 | Discover Financial Services | 392,252 | ||||||
4,466 | E*TRADE Financial Corp.(c) | 154,300 | ||||||
12,199 | Fifth Third Bancorp | 298,022 | ||||||
5,606 | Franklin Resources, Inc. | 241,675 | ||||||
6,023 | Goldman Sachs Group, Inc. (The) | 1,347,947 | ||||||
6,078 | Hartford Financial Services Group, Inc. (The) | 293,932 | ||||||
17,652 | Huntington Bancshares, Inc. | 227,005 | ||||||
9,684 | Intercontinental Exchange, Inc. | 582,977 | ||||||
6,564 | Invesco Ltd.(d) | 216,218 | ||||||
58,066 | JPMorgan Chase & Co. | 5,051,742 | ||||||
17,434 | KeyCorp | 317,996 | ||||||
5,264 | Leucadia National Corp. | 133,653 | ||||||
3,661 | Lincoln National Corp. | 241,370 | ||||||
4,487 | Loews Corp. | 209,184 | ||||||
2,507 | M&T Bank Corp. | 389,613 | ||||||
8,371 | Marsh & McLennan Cos., Inc. | 620,542 | ||||||
17,675 | MetLife, Inc. | 915,742 | ||||||
2,698 | Moody’s Corp. | 319,227 | ||||||
23,359 | Morgan Stanley | 1,013,080 | ||||||
1,870 | Nasdaq, Inc. | 128,787 | ||||||
4,731 | Navient Corp. | 71,911 | ||||||
3,496 | Northern Trust Corp. | 314,640 | ||||||
5,584 | People’s United Financial, Inc. | 97,552 | ||||||
7,903 | PNC Financial Services Group, Inc. (The) | 946,384 | ||||||
4,346 | Principal Financial Group, Inc. | 283,055 | ||||||
9,442 | Progressive Corp. (The) | 375,036 | ||||||
6,991 | Prudential Financial, Inc. | 748,247 | ||||||
2,079 | Raymond James Financial, Inc. | 154,927 | ||||||
19,593 | Regions Financial Corp. | 269,404 | ||||||
4,200 | S&P Global, Inc. | 563,598 | ||||||
5,836 | State Street Corp. | 489,640 | ||||||
7,988 | SunTrust Banks, Inc. | 453,798 | ||||||
12,521 | Synchrony Financial | 348,084 | ||||||
3,957 | T. Rowe Price Group, Inc. | 280,512 | ||||||
1,781 | Torchmark Corp. | 136,620 | ||||||
4,547 | Travelers Cos., Inc. (The) | 553,188 | ||||||
25,886 | U.S. Bancorp | 1,327,434 | ||||||
3,726 | Unum Group | 172,626 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 39 |
|
PowerShares S&P 500 BuyWrite Portfolio (PBP) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
73,201 | Wells Fargo & Co. | $ | 3,941,142 | |||||
2,071 | Willis Towers Watson PLC | 274,656 | ||||||
4,308 | XL Group Ltd. (Bermuda) | 180,290 | ||||||
3,291 | Zions Bancorporation | 131,739 | ||||||
|
| |||||||
46,881,095 | ||||||||
|
| |||||||
Health Care—14.2% | ||||||||
28,090 | Abbott Laboratories | 1,225,848 | ||||||
25,911 | AbbVie, Inc. | 1,708,571 | ||||||
5,392 | Aetna, Inc. | 728,297 | ||||||
5,235 | Agilent Technologies, Inc. | 288,187 | ||||||
3,652 | Alexion Pharmaceuticals, Inc.(c) | 466,653 | ||||||
5,450 | Allergan PLC | 1,329,037 | ||||||
2,685 | AmerisourceBergen Corp. | 220,304 | ||||||
11,972 | Amgen, Inc. | 1,955,267 | ||||||
4,297 | Anthem, Inc. | 764,393 | ||||||
7,902 | Baxter International, Inc. | 439,983 | ||||||
3,460 | Becton, Dickinson and Co. | 646,916 | ||||||
3,510 | Biogen, Inc.(c) | 951,947 | ||||||
22,165 | Boston Scientific Corp.(c) | 584,713 | ||||||
27,191 | Bristol-Myers Squibb Co. | 1,524,056 | ||||||
1,171 | C.R. Bard, Inc. | 360,059 | ||||||
5,128 | Cardinal Health, Inc. | 372,242 | ||||||
12,646 | Celgene Corp.(c) | 1,568,736 | ||||||
2,797 | Centene Corp.(c) | 208,097 | ||||||
4,770 | Cerner Corp.(c) | 308,857 | ||||||
4,179 | Cigna Corp. | 653,470 | ||||||
796 | Cooper Cos., Inc. (The) | 159,463 | ||||||
9,917 | Danaher Corp. | 826,384 | ||||||
2,531 | DaVita, Inc.(c) | 174,664 | ||||||
3,734 | DENTSPLY Sirona, Inc. | 236,138 | ||||||
3,455 | Edwards Lifesciences Corp.(c) | 378,910 | ||||||
15,783 | Eli Lilly & Co. | 1,295,153 | ||||||
1,910 | Envision Healthcare Corp.(c) | 107,017 | ||||||
9,847 | Express Scripts Holding Co.(c) | 604,015 | ||||||
21,247 | Gilead Sciences, Inc. | 1,456,482 | ||||||
4,693 | HCA Holdings, Inc.(c) | 395,198 | ||||||
1,288 | Henry Schein, Inc.(c) | 223,854 | ||||||
4,540 | Hologic, Inc.(c) | 204,981 | ||||||
2,428 | Humana, Inc. | 538,967 | ||||||
1,430 | IDEXX Laboratories, Inc.(c) | 239,854 | ||||||
2,378 | Illumina, Inc.(c) | 439,597 | ||||||
2,750 | Incyte Corp.(c) | 341,770 | ||||||
597 | Intuitive Surgical, Inc.(c) | 499,014 | ||||||
44,108 | Johnson & Johnson | 5,446,015 | ||||||
1,663 | Laboratory Corp. of America Holdings(c) | 233,069 | ||||||
1,703 | Mallinckrodt PLC(c) | 79,905 | ||||||
3,448 | McKesson Corp. | 476,824 | ||||||
22,252 | Medtronic PLC | 1,848,919 | ||||||
44,632 | Merck & Co., Inc. | 2,781,913 | ||||||
421 | Mettler-Toledo International, Inc.(c) | 216,150 | ||||||
7,487 | Mylan NV(c) | 279,639 | ||||||
1,337 | Patterson Cos., Inc. | 59,483 | ||||||
1,785 | PerkinElmer, Inc. | 106,047 | ||||||
2,330 | Perrigo Co. PLC | 172,280 | ||||||
96,753 | Pfizer, Inc. | 3,281,862 | ||||||
2,235 | Quest Diagnostics, Inc. | 235,815 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
1,236 | Regeneron Pharmaceuticals, Inc.(c) | $ | 480,174 | |||||
5,031 | Stryker Corp. | 686,077 | ||||||
6,346 | Thermo Fisher Scientific, Inc. | 1,049,184 | ||||||
15,640 | UnitedHealth Group, Inc. | 2,735,123 | ||||||
1,452 | Universal Health Services, Inc., Class B | 175,344 | ||||||
1,519 | Varian Medical Systems, Inc.(c) | 137,834 | ||||||
4,038 | Vertex Pharmaceuticals, Inc.(c) | 477,695 | ||||||
1,302 | Waters Corp.(c) | 221,197 | ||||||
3,269 | Zimmer Biomet Holdings, Inc. | 391,136 | ||||||
7,997 | Zoetis, Inc. | 448,712 | ||||||
|
| |||||||
46,447,491 | ||||||||
|
| |||||||
Industrials—10.3% | ||||||||
9,692 | 3M Co. | 1,897,984 | ||||||
717 | Acuity Brands, Inc. | 126,264 | ||||||
2,007 | Alaska Air Group, Inc. | 170,776 | ||||||
1,552 | Allegion PLC | 122,049 | ||||||
8,195 | American Airlines Group, Inc. | 349,271 | ||||||
3,731 | AMETEK, Inc. | 213,413 | ||||||
7,162 | Arconic, Inc. | 195,738 | ||||||
9,259 | Boeing Co. (The) | 1,711,341 | ||||||
2,298 | C.H. Robinson Worldwide, Inc. | 167,065 | ||||||
9,534 | Caterpillar, Inc. | 974,947 | ||||||
1,400 | Cintas Corp. | 171,458 | ||||||
15,061 | CSX Corp. | 765,701 | ||||||
2,515 | Cummins, Inc. | 379,614 | ||||||
4,764 | Deere & Co. | 531,710 | ||||||
11,880 | Delta Air Lines, Inc. | 539,827 | ||||||
2,528 | Dover Corp. | 199,409 | ||||||
7,310 | Eaton Corp. PLC | 552,928 | ||||||
10,486 | Emerson Electric Co. | 632,096 | ||||||
1,949 | Equifax, Inc. | 263,719 | ||||||
2,928 | Expeditors International of Washington, Inc. | 164,232 | ||||||
4,702 | Fastenal Co. | 210,085 | ||||||
3,986 | FedEx Corp. | 756,144 | ||||||
2,122 | Flowserve Corp. | 107,946 | ||||||
2,266 | Fluor Corp. | 116,291 | ||||||
4,893 | Fortive Corp. | 309,531 | ||||||
2,488 | Fortune Brands Home & Security, Inc. | 158,585 | ||||||
4,627 | General Dynamics Corp. | 896,666 | ||||||
141,830 | General Electric Co. | 4,111,652 | ||||||
12,374 | Honeywell International, Inc. | 1,622,726 | ||||||
5,070 | Illinois Tool Works, Inc. | 700,116 | ||||||
4,219 | Ingersoll-Rand PLC | 374,436 | ||||||
1,412 | J.B. Hunt Transport Services, Inc. | 126,600 | ||||||
1,968 | Jacobs Engineering Group, Inc. | 108,083 | ||||||
15,259 | Johnson Controls International PLC | 634,317 | ||||||
1,733 | Kansas City Southern | 156,091 | ||||||
1,265 | L3 Technologies, Inc. | 217,289 | ||||||
4,059 | Lockheed Martin Corp. | 1,093,698 | ||||||
5,207 | Masco Corp. | 192,763 | ||||||
5,463 | Nielsen Holdings PLC | 224,693 | ||||||
4,723 | Norfolk Southern Corp. | 554,905 | ||||||
2,839 | Northrop Grumman Corp. | 698,281 | ||||||
5,704 | PACCAR, Inc. | 380,628 | ||||||
2,167 | Parker-Hannifin Corp. | 348,454 | ||||||
2,718 | Pentair PLC (United Kingdom) | 175,338 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 40 |
|
PowerShares S&P 500 BuyWrite Portfolio (PBP) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
2,458 | Quanta Services, Inc.(c) | $ | 87,112 | |||||
4,761 | Raytheon Co. | 738,955 | ||||||
3,749 | Republic Services, Inc. | 236,150 | ||||||
2,077 | Robert Half International, Inc. | 95,646 | ||||||
2,090 | Rockwell Automation, Inc. | 328,862 | ||||||
2,639 | Rockwell Collins, Inc. | 274,694 | ||||||
1,656 | Roper Technologies, Inc. | 362,167 | ||||||
869 | Ryder System, Inc. | 59,014 | ||||||
942 | Snap-on, Inc. | 157,813 | ||||||
10,001 | Southwest Airlines Co. | 562,256 | ||||||
2,481 | Stanley Black & Decker, Inc. | 337,788 | ||||||
1,383 | Stericycle, Inc.(c) | 118,025 | ||||||
4,391 | Textron, Inc. | 204,884 | ||||||
808 | TransDigm Group, Inc. | 199,358 | ||||||
13,229 | Union Pacific Corp. | 1,481,119 | ||||||
4,654 | United Continental Holdings, Inc.(c) | 326,757 | ||||||
11,204 | United Parcel Service, Inc., Class B | 1,203,982 | ||||||
1,370 | United Rentals, Inc.(c) | 150,234 | ||||||
12,183 | United Technologies Corp. | 1,449,655 | ||||||
2,515 | Verisk Analytics, Inc.(c) | 208,267 | ||||||
880 | W.W. Grainger, Inc. | 169,576 | ||||||
6,576 | Waste Management, Inc. | 478,601 | ||||||
2,918 | Xylem, Inc. | 150,014 | ||||||
|
| |||||||
33,785,789 | ||||||||
|
| |||||||
Information Technology—22.9% | ||||||||
10,121 | Accenture PLC, Class A | 1,227,677 | ||||||
11,244 | Activision Blizzard, Inc. | 587,499 | ||||||
8,058 | Adobe Systems, Inc.(c) | 1,077,677 | ||||||
12,540 | Advanced Micro Devices, Inc.(c) | 166,782 | ||||||
2,815 | Akamai Technologies, Inc.(c) | 171,546 | ||||||
909 | Alliance Data Systems Corp. | 226,914 | ||||||
4,830 | Alphabet, Inc., Class A(c) | 4,465,432 | ||||||
4,804 | Alphabet, Inc., Class C(c) | 4,352,232 | ||||||
5,002 | Amphenol Corp., Class A | 361,695 | ||||||
5,916 | Analog Devices, Inc. | 450,799 | ||||||
85,287 | Apple, Inc. | 12,251,478 | ||||||
17,554 | Applied Materials, Inc. | 712,868 | ||||||
3,184 | Autodesk, Inc.(c) | 286,783 | ||||||
7,297 | Automatic Data Processing, Inc. | 762,464 | ||||||
6,519 | Broadcom Ltd. | 1,439,460 | ||||||
5,096 | CA, Inc. | 167,302 | ||||||
81,408 | Cisco Systems, Inc. | 2,773,571 | ||||||
2,541 | Citrix Systems, Inc.(c) | 205,669 | ||||||
9,894 | Cognizant Technology Solutions Corp., Class A(c) | 595,916 | ||||||
15,087 | Corning, Inc. | 435,260 | ||||||
2,360 | CSRA, Inc. | 68,629 | ||||||
4,615 | Dxc Technology Co.(c) | 347,694 | ||||||
16,434 | eBay, Inc.(c) | 549,060 | ||||||
5,011 | Electronic Arts, Inc.(c) | 475,143 | ||||||
1,053 | F5 Networks, Inc.(c) | 135,974 | ||||||
38,286 | Facebook, Inc., Class A(c) | 5,752,471 | ||||||
5,344 | Fidelity National Information Services, Inc. | 449,911 | ||||||
3,488 | Fiserv, Inc.(c) | 415,560 | ||||||
2,216 | FLIR Systems, Inc. | 81,394 | ||||||
1,464 | Gartner, Inc.(c) | 167,028 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
2,475 | Global Payments, Inc. | $ | 202,356 | |||||
2,024 | Harris Corp. | 226,465 | ||||||
27,063 | Hewlett Packard Enterprise Co. | 504,184 | ||||||
27,528 | HP, Inc. | 518,077 | ||||||
76,858 | Intel Corp. | 2,778,417 | ||||||
13,952 | International Business Machines Corp. | 2,236,366 | ||||||
3,950 | Intuit, Inc. | 494,579 | ||||||
6,209 | Juniper Networks, Inc. | 186,705 | ||||||
2,548 | KLA-Tencor Corp. | 250,265 | ||||||
2,647 | Lam Research Corp. | 383,418 | ||||||
15,316 | Mastercard, Inc., Class A | 1,781,557 | ||||||
3,518 | Microchip Technology, Inc. | 265,890 | ||||||
16,851 | Micron Technology, Inc.(c) | 466,267 | ||||||
125,618 | Microsoft Corp. | 8,599,808 | ||||||
2,678 | Motorola Solutions, Inc. | 230,228 | ||||||
4,404 | NetApp, Inc. | 175,499 | ||||||
9,575 | NVIDIA Corp. | 998,672 | ||||||
48,721 | Oracle Corp. | 2,190,496 | ||||||
5,191 | Paychex, Inc. | 307,722 | ||||||
18,256 | PayPal Holdings, Inc.(c) | 871,176 | ||||||
2,055 | Qorvo, Inc.(c) | 139,802 | ||||||
24,010 | QUALCOMM, Inc. | 1,290,297 | ||||||
2,898 | Red Hat, Inc.(c) | 255,256 | ||||||
10,646 | salesforce.com, inc.(c) | 916,833 | ||||||
4,799 | Seagate Technology PLC | 202,182 | ||||||
3,006 | Skyworks Solutions, Inc. | 299,818 | ||||||
10,060 | Symantec Corp. | 318,198 | ||||||
2,446 | Synopsys, Inc.(c) | 180,270 | ||||||
5,776 | TE Connectivity Ltd. | 446,889 | ||||||
2,127 | Teradata Corp.(c) | 62,066 | ||||||
16,250 | Texas Instruments, Inc. | 1,286,675 | ||||||
2,683 | Total System Services, Inc. | 153,763 | ||||||
1,447 | VeriSign, Inc.(c) | 128,667 | ||||||
30,204 | Visa, Inc., Class A | 2,755,209 | ||||||
4,683 | Western Digital Corp. | 417,115 | ||||||
7,818 | Western Union Co. (The) | 155,265 | ||||||
13,882 | Xerox Corp. | 99,812 | ||||||
4,046 | Xilinx, Inc. | 255,343 | ||||||
14,269 | Yahoo!, Inc.(c) | 687,908 | ||||||
|
| |||||||
74,881,403 | ||||||||
|
| |||||||
Materials—2.9% | ||||||||
3,537 | Air Products & Chemicals, Inc. | 496,949 | ||||||
1,830 | Albemarle Corp. | 199,305 | ||||||
1,454 | Avery Dennison Corp. | 120,987 | ||||||
2,846 | Ball Corp. | 218,829 | ||||||
3,790 | CF Industries Holdings, Inc. | 101,345 | ||||||
18,145 | Dow Chemical Co. (The) | 1,139,506 | ||||||
14,055 | E.I. du Pont de Nemours & Co. | 1,120,886 | ||||||
2,381 | Eastman Chemical Co. | 189,885 | ||||||
4,268 | Ecolab, Inc. | 550,956 | ||||||
2,173 | FMC Corp. | 159,129 | ||||||
21,616 | Freeport-McMoRan, Inc.(c) | 275,604 | ||||||
1,285 | International Flavors & Fragrances, Inc. | 178,088 | ||||||
6,685 | International Paper Co. | 360,789 | ||||||
5,366 | LyondellBasell Industries NV, Class A | 454,822 | ||||||
1,025 | Martin Marietta Materials, Inc. | 225,695 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 41 |
|
PowerShares S&P 500 BuyWrite Portfolio (PBP) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Materials (continued) | ||||||||
7,128 | Monsanto Co. | $ | 831,196 | |||||
5,693 | Mosaic Co. (The) | 153,313 | ||||||
8,640 | Newmont Mining Corp. | 292,118 | ||||||
5,183 | Nucor Corp. | 317,873 | ||||||
4,180 | PPG Industries, Inc. | 459,131 | ||||||
4,634 | Praxair, Inc. | 579,157 | ||||||
3,145 | Sealed Air Corp. | 138,443 | ||||||
1,319 | Sherwin-Williams Co. (The) | 441,443 | ||||||
2,152 | Vulcan Materials Co. | 260,134 | ||||||
4,071 | WestRock Co. | 218,043 | ||||||
|
| |||||||
9,483,626 | ||||||||
|
| |||||||
Real Estate—3.0% | ||||||||
1,444 | Alexandria Real Estate Equities, Inc. REIT | 162,464 | ||||||
6,944 | American Tower Corp. REIT | 874,527 | ||||||
2,553 | Apartment Investment & Management Co., Class A REIT | 111,668 | ||||||
2,233 | AvalonBay Communities, Inc. REIT | 423,913 | ||||||
2,500 | Boston Properties, Inc. REIT | 316,500 | ||||||
4,888 | CBRE Group, Inc., Class A(c) | 175,039 | ||||||
5,861 | Crown Castle International Corp. REIT | 554,451 | ||||||
2,590 | Digital Realty Trust, Inc. REIT | 297,436 | ||||||
1,263 | Equinix, Inc. REIT | 527,555 | ||||||
5,967 | Equity Residential REIT | 385,349 | ||||||
1,065 | Essex Property Trust, Inc. REIT | 260,361 | ||||||
2,047 | Extra Space Storage, Inc. REIT | 154,610 | ||||||
1,172 | Federal Realty Investment Trust REIT | 153,403 | ||||||
9,495 | GGP, Inc. REIT | 205,187 | ||||||
7,611 | HCP, Inc. REIT | 238,605 | ||||||
12,017 | Host Hotels & Resorts, Inc. REIT | 215,705 | ||||||
3,987 | Iron Mountain, Inc. REIT | 138,588 | ||||||
6,919 | Kimco Realty Corp. REIT | 140,387 | ||||||
1,965 | Macerich Co. (The) REIT | 122,675 | ||||||
1,845 | Mid-America Apartment Communities, Inc. REIT | 183,042 | ||||||
8,605 | Prologis, Inc. REIT | 468,198 | ||||||
2,428 | Public Storage REIT | 508,375 | ||||||
4,407 | Realty Income Corp. REIT | 257,148 | ||||||
2,374 | Regency Centers Corp. REIT | 149,989 | ||||||
5,199 | Simon Property Group, Inc. REIT | 859,187 | ||||||
1,635 | SL Green Realty Corp. REIT | 171,561 | ||||||
4,345 | UDR, Inc. REIT | 162,242 | ||||||
5,764 | Ventas, Inc. REIT | 368,954 | ||||||
2,799 | Vornado Realty Trust REIT | 269,376 | ||||||
5,894 | Welltower, Inc. REIT | 421,067 | ||||||
12,176 | Weyerhaeuser Co. REIT | 412,401 | ||||||
|
| |||||||
9,689,963 | ||||||||
|
| |||||||
Telecommunication Services—2.3% | ||||||||
99,837 | AT&T, Inc. | 3,956,541 | ||||||
8,885 | CenturyLink, Inc. | 228,078 | ||||||
4,750 | Level 3 Communications, Inc.(c) | 288,610 | ||||||
66,264 | Verizon Communications, Inc. | 3,042,180 | ||||||
|
| |||||||
7,515,409 | ||||||||
|
|
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Utilities—3.2% | ||||||||
10,716 | AES Corp. (The) | $ | 121,198 | |||||
3,701 | Alliant Energy Corp. | 145,523 | ||||||
3,944 | Ameren Corp. | 215,697 | ||||||
7,993 | American Electric Power Co., Inc. | 542,165 | ||||||
2,897 | American Water Works Co., Inc. | 231,065 | ||||||
7,001 | CenterPoint Energy, Inc. | 199,739 | ||||||
4,551 | CMS Energy Corp. | 206,615 | ||||||
4,959 | Consolidated Edison, Inc. | 393,150 | ||||||
10,211 | Dominion Resources, Inc. | 790,638 | ||||||
2,917 | DTE Energy Co. | 305,089 | ||||||
11,373 | Duke Energy Corp. | 938,273 | ||||||
5,296 | Edison International | 423,521 | ||||||
2,917 | Entergy Corp. | 222,450 | ||||||
5,151 | Eversource Energy | 305,969 | ||||||
15,063 | Exelon Corp. | 521,632 | ||||||
7,193 | FirstEnergy Corp. | 215,358 | ||||||
7,601 | NextEra Energy, Inc. | 1,015,190 | ||||||
5,258 | NiSource, Inc. | 127,507 | ||||||
5,136 | NRG Energy, Inc. | 86,798 | ||||||
8,240 | PG&E Corp. | 552,492 | ||||||
1,810 | Pinnacle West Capital Corp. | 154,013 | ||||||
11,050 | PPL Corp. | 421,116 | ||||||
8,229 | Public Service Enterprise Group, Inc. | 362,487 | ||||||
2,323 | SCANA Corp. | 154,038 | ||||||
4,073 | Sempra Energy | 460,330 | ||||||
16,110 | Southern Co. (The) | 802,278 | ||||||
5,130 | WEC Energy Group, Inc. | 310,468 | ||||||
8,245 | Xcel Energy, Inc. | 371,437 | ||||||
|
| |||||||
10,596,236 | ||||||||
|
| |||||||
Total Investments (Cost $287,983,588)—101.6% | 332,802,749 | |||||||
Other assets less liabilities—(1.6)% | (5,206,528 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 327,596,221 | ||||||
|
|
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) | A portion of the securities in the Fund are subject to covered call options written. See Note 2I 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. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 42 |
|
PowerShares S&P 500 BuyWrite Portfolio (PBP) (continued)
April 30, 2017
Open Exchange-Traded Index Options Written—Equity Risk | ||||||||||||||||||||||||||||
Contract Month | Strike Price | Number of Contracts | Premiums Received | Unrealized Appreciation (Depreciation) | Notional Value* | Value | ||||||||||||||||||||||
Call Option S&P 500 Index | May - 2017 | $ | 2,355 | 1,395 | $ | (3,586,203 | ) | $ | (1,582,272 | ) | $ | 328,522,500 | $ | (5,168,475 | ) |
* | 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 | 1,452 | $ | 3,729,398 | |||||
Written | 16,013 | 39,167,881 | ||||||
Closed | (10,683 | ) | (26,210,914 | ) | ||||
Expired | (5,387 | ) | (13,100,162 | ) | ||||
|
|
|
| |||||
End of year | 1,395 | $ | 3,586,203 | |||||
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 43 |
|
PowerShares S&P 500® Quality Portfolio (SPHQ)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Consumer Discretionary—16.9% | ||||||||
83,331 | Best Buy Co., Inc. | $ | 4,317,379 | |||||
105,949 | CBS Corp., Class B | 7,051,965 | ||||||
46,088 | Darden Restaurants, Inc. | 3,926,237 | ||||||
42,588 | Genuine Parts Co. | 3,918,948 | ||||||
34,323 | Hasbro, Inc. | 3,401,753 | ||||||
440,093 | Home Depot, Inc. (The) | 68,698,517 | ||||||
36,933 | Leggett & Platt, Inc. | 1,940,460 | ||||||
237,595 | Lowe’s Cos., Inc. | 20,167,064 | ||||||
140,180 | Marriott International, Inc., Class A | 13,235,796 | ||||||
48,446 | Michael Kors Holdings Ltd.(b) | 1,808,489 | ||||||
64,266 | Nordstrom, Inc. | 3,102,120 | ||||||
81,071 | Omnicom Group, Inc. | 6,657,550 | ||||||
28,583 | O’Reilly Automotive, Inc.(b) | 7,092,871 | ||||||
112,956 | Ross Stores, Inc. | 7,342,140 | ||||||
409,459 | Starbucks Corp. | 24,592,108 | ||||||
179,644 | Target Corp. | 10,033,117 | ||||||
63,571 | TEGNA, Inc. | 1,619,789 | ||||||
190,168 | TJX Cos., Inc. (The) | 14,954,811 | ||||||
32,422 | Wyndham Worldwide Corp. | 3,090,141 | ||||||
|
| |||||||
206,951,255 | ||||||||
|
| |||||||
Consumer Staples—18.2% | ||||||||
773,763 | Altria Group, Inc. | 55,540,708 | ||||||
75,119 | Brown-Forman Corp., Class B | 3,554,631 | ||||||
93,750 | Campbell Soup Co. | 5,394,375 | ||||||
40,922 | Clorox Co. (The) | 5,470,862 | ||||||
153,367 | Conagra Brands, Inc. | 5,947,572 | ||||||
53,239 | Dr Pepper Snapple Group, Inc. | 4,879,355 | ||||||
175,326 | General Mills, Inc. | 10,082,998 | ||||||
57,814 | Hershey Co. (The) | 6,255,475 | ||||||
31,669 | McCormick & Co., Inc. | 3,163,733 | ||||||
470,622 | PepsiCo, Inc. | 53,312,060 | ||||||
692,501 | Procter & Gamble Co. (The) | 60,476,113 | ||||||
156,624 | Sysco Corp. | 8,280,711 | ||||||
|
| |||||||
222,358,593 | ||||||||
|
| |||||||
Energy—0.1% | ||||||||
58,477 | TechnipFMC PLC (United Kingdom)(b) | 1,761,912 | ||||||
|
| |||||||
Financials—5.7% | ||||||||
117,429 | Aflac, Inc. | 8,793,084 | ||||||
275,636 | American Express Co. | 21,844,153 | ||||||
73,530 | Aon PLC | 8,811,835 | ||||||
16,127 | Assurant, Inc. | 1,552,062 | ||||||
99,382 | E*TRADE Financial Corp.(b) | 3,433,648 | ||||||
115,108 | State Street Corp. | 9,657,561 | ||||||
137,979 | SunTrust Banks, Inc. | 7,838,587 | ||||||
70,613 | T. Rowe Price Group, Inc. | 5,005,756 | ||||||
32,277 | Torchmark Corp. | 2,475,969 | ||||||
|
| |||||||
69,412,655 | ||||||||
|
| |||||||
Health Care—3.2% | ||||||||
194,972 | Baxter International, Inc. | 10,856,041 | ||||||
24,384 | C.R. Bard, Inc. | 7,497,592 | ||||||
9,222 | Mettler-Toledo International, Inc.(b) | 4,734,759 | ||||||
114,273 | Stryker Corp. | 15,583,409 | ||||||
|
| |||||||
38,671,801 | ||||||||
|
|
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials—20.9% | ||||||||
146,710 | American Airlines Group, Inc. | $ | 6,252,780 | |||||
266,789 | Boeing Co. (The) | 49,310,611 | ||||||
43,523 | C.H. Robinson Worldwide, Inc. | 3,164,122 | ||||||
26,993 | Cintas Corp. | 3,305,833 | ||||||
202,813 | Delta Air Lines, Inc. | 9,215,823 | ||||||
178,021 | Emerson Electric Co. | 10,731,106 | ||||||
50,585 | Expeditors International of Washington, Inc. | 2,837,313 | ||||||
100,540 | Fortive Corp. | 6,360,161 | ||||||
82,671 | General Dynamics Corp. | 16,020,813 | ||||||
1,844,770 | General Electric Co. | 53,479,882 | ||||||
109,043 | Illinois Tool Works, Inc. | 15,057,748 | ||||||
49,996 | Northrop Grumman Corp. | 12,297,016 | ||||||
35,844 | Parker-Hannifin Corp. | 5,763,715 | ||||||
45,298 | Quanta Services, Inc.(b) | 1,605,361 | ||||||
34,769 | Rockwell Automation, Inc. | 5,470,902 | ||||||
35,404 | Rockwell Collins, Inc. | 3,685,202 | ||||||
202,055 | United Parcel Service, Inc., Class B | 21,712,830 | ||||||
248,940 | United Technologies Corp. | 29,621,371 | ||||||
|
| |||||||
255,892,589 | ||||||||
|
| |||||||
Information Technology—20.7% | ||||||||
87,126 | Amphenol Corp., Class A | 6,300,081 | ||||||
299,029 | Applied Materials, Inc. | 12,143,568 | ||||||
127,513 | Automatic Data Processing, Inc. | 13,323,833 | ||||||
43,987 | Citrix Systems, Inc.(b) | 3,560,308 | ||||||
431,042 | eBay, Inc.(b) | 14,401,113 | ||||||
25,007 | F5 Networks, Inc.(b) | 3,229,154 | ||||||
62,597 | Fiserv, Inc.(b) | 7,457,807 | ||||||
33,611 | Harris Corp. | 3,760,735 | ||||||
458,514 | Hewlett Packard Enterprise Co. | 8,542,116 | ||||||
305,723 | International Business Machines Corp. | 49,004,340 | ||||||
124,431 | Intuit, Inc. | 15,580,005 | ||||||
62,918 | KLA-Tencor Corp. | 6,179,806 | ||||||
46,347 | Lam Research Corp. | 6,713,363 | ||||||
327,958 | Mastercard, Inc., Class A | 38,148,074 | ||||||
65,908 | Microchip Technology, Inc. | 4,981,327 | ||||||
88,100 | NetApp, Inc. | 3,510,785 | ||||||
97,238 | Paychex, Inc. | 5,764,269 | ||||||
275,954 | Symantec Corp. | 8,728,425 | ||||||
45,017 | Teradata Corp.(b) | 1,313,596 | ||||||
309,946 | Texas Instruments, Inc. | 24,541,524 | ||||||
145,704 | Western Union Co. (The) | 2,893,681 | ||||||
270,238 | Yahoo!, Inc.(b) | 13,028,174 | ||||||
|
| |||||||
253,106,084 | ||||||||
|
| |||||||
Materials—9.0% | ||||||||
25,739 | Avery Dennison Corp. | 2,141,742 | ||||||
331,886 | Dow Chemical Co. (The) | 20,842,441 | ||||||
282,729 | E.I. du Pont de Nemours & Co. | 22,547,638 | ||||||
104,064 | International Paper Co. | 5,616,334 | ||||||
145,410 | LyondellBasell Industries NV, Class A | 12,324,952 | ||||||
118,838 | Monsanto Co. | 13,857,699 | ||||||
71,092 | PPG Industries, Inc. | 7,808,745 | ||||||
82,986 | Praxair, Inc. | 10,371,590 | ||||||
64,038 | Sealed Air Corp. | 2,818,953 | ||||||
33,474 | Sherwin-Williams Co. (The) | 11,203,078 | ||||||
|
| |||||||
109,533,172 | ||||||||
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 44 |
|
PowerShares S&P 500® Quality Portfolio (SPHQ) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Real Estate—0.8% | ||||||||
105,338 | Equity Residential REIT | $ | 6,802,728 | |||||
42,916 | Macerich Co. (The) REIT | 2,679,246 | ||||||
|
| |||||||
9,481,974 | ||||||||
|
| |||||||
Telecommunication Services—4.3% | ||||||||
1,134,580 | Verizon Communications, Inc. | 52,088,568 | ||||||
|
| |||||||
Utilities—0.2% | ||||||||
112,924 | NiSource, Inc. | 2,738,407 | ||||||
|
| |||||||
Total Investments (Cost $1,102,356,867)—100.0% | 1,221,997,010 | |||||||
Other assets less liabilities—0.0% | 226,281 | |||||||
|
| |||||||
Net Assets—100.0% | $ | 1,222,223,291 | ||||||
|
|
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.
| 45 |
|
PowerShares Water Resources Portfolio (PHO)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—99.9% | ||||||||
Building Products—5.5% | ||||||||
616,172 | A.O. Smith Corp. | $ | 33,199,347 | |||||
451,292 | Advanced Drainage Systems, Inc. | 10,402,281 | ||||||
|
| |||||||
43,601,628 | ||||||||
|
| |||||||
Chemicals—8.8% | ||||||||
362,085 | Calgon Carbon Corp. | 5,268,337 | ||||||
500,610 | Ecolab, Inc. | 64,623,745 | ||||||
|
| |||||||
69,892,082 | ||||||||
|
| |||||||
Commercial Services & Supplies—3.3% | ||||||||
604,115 | Tetra Tech, Inc. | 26,550,854 | ||||||
|
| |||||||
Construction & Engineering—4.5% | ||||||||
275,218 | Aegion Corp.(b) | 6,280,475 | ||||||
167,022 | Layne Christensen Co.(b) | 1,331,165 | ||||||
183,803 | Valmont Industries, Inc. | 28,002,387 | ||||||
|
| |||||||
35,614,027 | ||||||||
|
| |||||||
Electronic Equipment, Instruments & Components—3.0% | ||||||||
200,516 | Badger Meter, Inc. | 7,970,511 | ||||||
249,673 | Itron, Inc.(b) | 16,191,294 | ||||||
|
| |||||||
24,161,805 | ||||||||
|
| |||||||
Health Care Equipment & Supplies—7.6% | ||||||||
725,433 | Danaher Corp. | 60,450,332 | ||||||
|
| |||||||
Industrial Conglomerates—8.1% | ||||||||
296,657 | Roper Technologies, Inc. | 64,878,886 | ||||||
|
| |||||||
Life Sciences Tools & Services—8.5% | ||||||||
400,417 | Waters Corp.(b) | 68,026,844 | ||||||
|
| |||||||
Machinery—30.0% | ||||||||
631,658 | Energy Recovery, Inc.(b) | 5,331,194 | ||||||
211,041 | Franklin Electric Co., Inc. | 8,673,785 | ||||||
56,162 | Gorman-Rupp Co. (The) | 1,607,356 | ||||||
336,591 | IDEX Corp. | 35,261,273 | ||||||
145,085 | Lindsay Corp. | 12,602,083 | ||||||
232,238 | Mueller Industries, Inc. | 7,440,906 | ||||||
1,748,217 | Mueller Water Products, Inc., Class A | 19,667,441 | ||||||
534,455 | Pentair PLC (United Kingdom) | 34,477,692 | ||||||
1,399,658 | Rexnord Corp.(b) | 34,151,655 | ||||||
515,370 | Toro Co. (The) | 33,457,820 | ||||||
213,578 | Watts Water Technologies, Inc., Class A | 13,284,552 | ||||||
644,855 | Xylem, Inc. | 33,151,996 | ||||||
|
| |||||||
239,107,753 | ||||||||
|
| |||||||
Trading Companies & Distributors—7.3% | ||||||||
1,443,272 | HD Supply Holdings, Inc.(b) | 58,163,861 | ||||||
|
| |||||||
Water Utilities—13.3% | ||||||||
170,279 | American States Water Co. | 7,580,821 | ||||||
397,827 | American Water Works Co., Inc. | 31,730,682 | ||||||
780,693 | Aqua America, Inc. | 25,833,131 | ||||||
25,376 | Artesian Resources Corp., Class A | 974,692 | ||||||
282,166 | California Water Service Group | 10,073,326 | ||||||
1,993,051 | Cia de Saneamento Basico do Estado de Sao Paulo ADR (Brazil) | 18,336,069 | ||||||
35,087 | Connecticut Water Service, Inc. | 1,883,119 | ||||||
108,087 | Consolidated Water Co. Ltd. (Cayman Islands) | 1,275,427 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Water Utilities (continued) | ||||||||
29,834 | Global Water Resources, Inc. | $ | 272,683 | |||||
67,145 | Middlesex Water Co. | 2,559,567 | ||||||
112,384 | SJW Corp. | 5,488,835 | ||||||
|
| |||||||
106,008,352 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $609,178,906) | 796,456,424 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
488,990 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(c) (Cost $488,990) | 488,990 | ||||||
|
| |||||||
Total Investments (Cost $609,667,896)—100.0% | 796,945,414 | |||||||
Other assets less liabilities—0.0% | 201,357 | |||||||
|
| |||||||
Net Assets—100.0% | $ | 797,146,771 | ||||||
|
|
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) | 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, 2017. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 46 |
|
PowerShares WilderHill Clean Energy Portfolio (PBW)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—99.9% | ||||||||
Aerospace & Defense—2.7% | ||||||||
54,404 | Hexcel Corp. | $ | 2,815,407 | |||||
|
| |||||||
Auto Components—2.5% | ||||||||
70,137 | Gentherm, Inc.(b) | 2,605,590 | ||||||
|
| |||||||
Automobiles—3.1% | ||||||||
10,084 | Tesla, Inc.(b)(c) | 3,167,082 | ||||||
|
| |||||||
Chemicals—5.5% | ||||||||
19,458 | Air Products & Chemicals, Inc. | 2,733,849 | ||||||
82,670 | Sociedad Quimica y Minera de Chile SA ADR (Chile) | 2,938,918 | ||||||
|
| |||||||
5,672,767 | ||||||||
|
| |||||||
Commercial Services & Supplies—2.4% | ||||||||
153,424 | Aqua Metals, Inc.(b)(c) | 2,531,496 | ||||||
|
| |||||||
Construction & Engineering—8.4% | ||||||||
465,713 | Ameresco, Inc., Class A(b) | 3,003,849 | ||||||
69,282 | MYR Group, Inc.(b) | 2,927,857 | ||||||
76,368 | Quanta Services, Inc.(b) | 2,706,482 | ||||||
|
| |||||||
8,638,188 | ||||||||
|
| |||||||
Electrical Equipment—20.5% | ||||||||
76,567 | American Superconductor Corp.(b)(c) | 398,914 | ||||||
1,164,216 | Ballard Power Systems, Inc. (Canada)(b)(c) | 3,806,986 | ||||||
343,463 | FuelCell Energy, Inc.(b)(c) | 394,982 | ||||||
164,534 | General Cable Corp. | 2,961,612 | ||||||
70,713 | Hydrogenics Corp. (Canada)(b)(c) | 530,348 | ||||||
263,730 | LSI Industries, Inc. | 2,392,031 | ||||||
1,846,113 | Plug Power, Inc.(b)(c) | 4,135,293 | ||||||
564,558 | Sunrun, Inc.(b)(c) | 2,986,512 | ||||||
179,644 | TPI Composites, Inc.(b) | 3,530,005 | ||||||
|
| |||||||
21,136,683 | ||||||||
|
| |||||||
Electronic Equipment, Instruments & Components—6.1% | ||||||||
44,104 | Itron, Inc.(b) | 2,860,144 | ||||||
85,408 | Maxwell Technologies, Inc.(b)(c) | 520,989 | ||||||
32,809 | Universal Display Corp. | 2,931,484 | ||||||
|
| |||||||
6,312,617 | ||||||||
|
| |||||||
Independent Power & Renewable Electricity Producers—14.4% | ||||||||
131,553 | Atlantica Yield PLC (Spain) | 2,741,565 | ||||||
50,590 | Ormat Technologies, Inc. | 2,987,845 | ||||||
137,384 | Pattern Energy Group, Inc. | 3,025,196 | ||||||
254,417 | Sky Solar Holdings Ltd. ADR (Hong Kong)(b)(c) | 516,467 | ||||||
575,035 | TerraForm Global, Inc., Class A | 2,731,416 | ||||||
228,414 | TerraForm Power, Inc., Class A(b) | 2,875,732 | ||||||
|
| |||||||
14,878,221 | ||||||||
|
| |||||||
Oil, Gas & Consumable Fuels—2.7% | ||||||||
267,137 | Renewable Energy Group, Inc.(b) | 2,791,582 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment—28.3% | ||||||||
38,977 | Advanced Energy Industries, Inc.(b) | 2,876,503 | ||||||
254,642 | Canadian Solar, Inc. (Canada)(b)(c) | 3,386,739 | ||||||
95,406 | Cree, Inc.(b) | 2,087,483 | ||||||
139,715 | Daqo New Energy Corp. ADR (China)(b) | 2,600,096 | ||||||
102,201 | First Solar, Inc.(b)(c) | 3,020,039 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Semiconductors & Semiconductor Equipment (continued) | ||||||||
411,568 | Hanwha Q CELLS Co. Ltd. ADR (South Korea)(b)(c) | $ | 2,854,224 | |||||
486,524 | JA Solar Holdings Co. Ltd. ADR (China)(b) | 3,410,533 | ||||||
172,304 | SolarEdge Technologies, Inc.(b)(c) | 2,782,710 | ||||||
469,885 | SunPower Corp.(b)(c) | 3,261,002 | ||||||
87,464 | Veeco Instruments, Inc.(b) | 2,886,312 | ||||||
|
| |||||||
29,165,641 | ||||||||
|
| |||||||
Software—3.3% | ||||||||
87,426 | EnerNOC, Inc.(b) | 493,957 | ||||||
253,947 | Silver Spring Networks, Inc.(b) | 2,897,535 | ||||||
|
| |||||||
3,391,492 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $98,436,773) | 103,106,766 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
58,817 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $58,817) | 58,817 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $98,495,590)-100.0% | 103,165,583 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—25.7% | ||||||||
26,512,018 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $26,512,018) | 26,512,018 | ||||||
|
| |||||||
Total Investments (Cost $125,007,608)—125.7% | 129,677,601 | |||||||
Other assets less liabilities—(25.7)% | (26,500,723 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 103,176,878 | ||||||
|
|
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, 2017. |
(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, 2017. |
(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 2K. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 47 |
|
PowerShares WilderHill Progressive Energy Portfolio (PUW)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Auto Components—3.1% | ||||||||
32,138 | Kandi Technologies Group, Inc. (China)(b)(c) | $ | 131,766 | |||||
10,104 | Tenneco, Inc. | 636,855 | ||||||
|
| |||||||
768,621 | ||||||||
|
| |||||||
Automobiles—2.5% | ||||||||
17,551 | Tata Motors Ltd. ADR (India) | 626,044 | ||||||
|
| |||||||
Building Products—7.7% | ||||||||
12,061 | A.O. Smith Corp. | 649,847 | ||||||
10,914 | Apogee Enterprises, Inc. | 594,813 | ||||||
10,563 | Owens Corning | 642,758 | ||||||
|
| |||||||
1,887,418 | ||||||||
|
| |||||||
Chemicals—8.2% | ||||||||
5,761 | Albemarle Corp. | 627,431 | ||||||
9,806 | FMC Corp. | 718,093 | ||||||
14,812 | Methanex Corp. (Canada) | 679,871 | ||||||
|
| |||||||
2,025,395 | ||||||||
|
| |||||||
Commercial Services & Supplies—3.9% | ||||||||
11,566 | CECO Environmental Corp. | 130,580 | ||||||
39,514 | Covanta Holding Corp. | 574,929 | ||||||
9,062 | Heritage-Crystal Clean, Inc.(c) | 136,383 | ||||||
18,656 | Hudson Technologies, Inc.(c) | 132,458 | ||||||
|
| |||||||
974,350 | ||||||||
|
| |||||||
Construction & Engineering—5.4% | ||||||||
20,880 | Chicago Bridge & Iron Co. NV | 628,071 | ||||||
15,775 | MasTec, Inc.(c) | 696,466 | ||||||
|
| |||||||
1,324,537 | ||||||||
|
| |||||||
Electric Utilities—4.7% | ||||||||
14,585 | Avangrid, Inc. | 634,448 | ||||||
188,765 | Cia Energetica de Minas Gerais ADR (Brazil)(b) | 515,328 | ||||||
|
| |||||||
1,149,776 | ||||||||
|
| |||||||
Electrical Equipment—12.9% | ||||||||
3,121 | Acuity Brands, Inc. | 549,608 | ||||||
8,844 | Eaton Corp. PLC | 668,960 | ||||||
10,608 | Emerson Electric Co. | 639,450 | ||||||
7,865 | EnerSys | 653,660 | ||||||
8,555 | Regal Beloit Corp. | 674,562 | ||||||
|
| |||||||
3,186,240 | ||||||||
|
| |||||||
Electronic Equipment, Instruments & Components—2.7% | ||||||||
23,084 | Corning, Inc. | 665,973 | ||||||
|
| |||||||
Energy Equipment & Services—2.7% | ||||||||
100,592 | McDermott International, Inc.(c) | 657,872 | ||||||
|
| |||||||
Food & Staples Retailing—2.6% | ||||||||
17,330 | Andersons, Inc. (The) | 647,275 | ||||||
|
| |||||||
Independent Power & Renewable Electricity Producers—5.0% | ||||||||
58,189 | Calpine Corp.(c) | 593,528 | ||||||
36,542 | NRG Yield, Inc., Class C | 646,793 | ||||||
|
| |||||||
1,240,321 | ||||||||
|
| |||||||
Machinery—16.4% | ||||||||
16,155 | Altra Industrial Motion Corp. | 713,243 | ||||||
18,361 | Chart Industries, Inc.(c) | 670,360 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Machinery (continued) | ||||||||
10,903 | ESCO Technologies, Inc. | $ | 641,642 | |||||
10,026 | Luxfer Holdings PLC ADR (United Kingdom) | 117,204 | ||||||
12,566 | Lydall, Inc.(c) | 658,458 | ||||||
5,183 | WABCO Holdings, Inc.(c) | 616,103 | ||||||
9,232 | Woodward, Inc. | 624,730 | ||||||
|
| |||||||
4,041,740 | ||||||||
|
| |||||||
Mortgage REITs—2.8% | ||||||||
31,620 | Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT | 693,110 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels—19.4% | ||||||||
128,460 | Chesapeake Energy Corp.(b)(c) | 675,700 | ||||||
48,208 | Clean Energy Fuels Corp.(c) | 117,628 | ||||||
79,958 | Cosan Ltd., Class A (Brazil) | 614,877 | ||||||
22,460 | Golar LNG Ltd. (Bermuda)(b) | 572,955 | ||||||
29,201 | Green Plains, Inc. | 671,623 | ||||||
17,723 | Pacific Ethanol, Inc.(c) | 120,516 | ||||||
23,827 | Range Resources Corp. | 631,177 | ||||||
7,721 | REX American Resources Corp.(c) | 731,024 | ||||||
86,085 | Southwestern Energy Co.(c) | 646,498 | ||||||
|
| |||||||
4,781,998 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $19,568,387) | 24,670,670 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
31,358 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $31,358) | 31,358 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $19,599,745)—100.1% | 24,702,028 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—6.7% | ||||||||
1,655,718 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $1,655,718) | 1,655,718 | ||||||
|
| |||||||
Total Investments (Cost $21,255,463)—106.8% | 26,357,746 | |||||||
Other assets less liabilities—(6.8)% | (1,685,238 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 24,672,508 | ||||||
|
|
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, 2017. |
(c) | Non-income producing security. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 48 |
|
PowerShares WilderHill Progressive Energy Portfolio (PUW) (continued)
April 30, 2017
(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, 2017. |
(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 2K. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 49 |
|
Statements of Assets and Liabilities
April 30, 2017
PowerShares Aerospace & Defense Portfolio (PPA) | PowerShares CleantechTM Portfolio (PZD) | PowerShares DWA Momentum Portfolio (PDP) | PowerShares Global Listed Private Equity Portfolio (PSP) | |||||||||||||
Assets: | ||||||||||||||||
Unaffiliated investments, at value(a) | $ | 569,100,507 | $ | 92,576,234 | $ | 1,417,395,636 | $ | 249,967,349 | ||||||||
Affiliated investments, at value | 128,000 | 3,423,677 | 740,212 | 58,723,254 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total investments, at value | 569,228,507 | 95,999,911 | 1,418,135,848 | 308,690,603 | ||||||||||||
Cash segregated as collateral | — | — | — | 205,540 | ||||||||||||
Foreign currencies, at value | — | — | — | 5,669 | ||||||||||||
Receivables: | ||||||||||||||||
Dividends | 343,806 | 83,887 | 198,932 | 2,905,506 | ||||||||||||
Foreign tax reclaims | — | 158,545 | — | 935,464 | ||||||||||||
Securities lending | — | 11,859 | — | 32,662 | ||||||||||||
Investments sold | — | — | — | 6,314,533 | ||||||||||||
Shares sold | — | — | — | 3,257,637 | ||||||||||||
Receivable for swaps | — | — | — | 178,154 | ||||||||||||
Unrealized appreciation on swap agreements | — | — | — | 1,191,005 | ||||||||||||
Other assets | 1,036 | 704 | 2,671 | 1,068 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Assets | 569,573,349 | 96,254,906 | 1,418,337,451 | 323,717,841 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Liabilities: | ||||||||||||||||
Due to custodian | 50 | 76,720 | 483 | — | ||||||||||||
Payables: | ||||||||||||||||
Collateral upon return of securities loaned | — | 3,423,677 | — | 34,133,098 | ||||||||||||
Investments purchased | — | — | — | 2,857,309 | ||||||||||||
Collateral upon receipt of securities in-kind | — | — | — | 205,540 | ||||||||||||
Payable for swaps | — | — | — | 5,223 | ||||||||||||
Unrealized depreciation on swap agreements | — | — | — | 2,554 | ||||||||||||
Open written options, at value | — | — | — | — | ||||||||||||
Accrued advisory fees | 223,208 | 29,155 | 576,634 | 107,661 | ||||||||||||
Accrued trustees’ and officer’s fees | 24,756 | 21,261 | 58,380 | 34,104 | ||||||||||||
Accrued expenses | 175,845 | 65,022 | 632,122 | 229,026 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Liabilities | 423,859 | 3,615,835 | 1,267,619 | 37,574,515 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 569,149,490 | $ | 92,639,071 | $ | 1,417,069,832 | $ | 286,143,326 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets Consist of: | ||||||||||||||||
Shares of beneficial interest | $ | 518,747,260 | $ | 133,501,195 | $ | 1,541,299,030 | $ | 377,734,271 | ||||||||
Undistributed net investment income | 168,740 | 770,616 | (57,012 | ) | (270,688 | ) | ||||||||||
Undistributed net realized gain (loss) | (26,209,243 | ) | (68,200,284 | ) | (343,358,602 | ) | (110,952,241 | ) | ||||||||
Net unrealized appreciation | 76,442,733 | 26,567,544 | 219,186,416 | 19,631,984 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 569,149,490 | $ | 92,639,071 | $ | 1,417,069,832 | $ | 286,143,326 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 12,700,000 | 2,500,000 | 30,900,000 | 23,350,000 | ||||||||||||
Net asset value | $ | 44.81 | $ | 37.06 | $ | 45.86 | $ | 12.25 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Market price | $ | 44.84 | $ | 37.19 | $ | 45.87 | $ | 12.29 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Unaffiliated investments, at cost | $ | 492,657,774 | $ | 66,005,659 | $ | 1,198,209,220 | $ | 231,537,726 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Affiliated investments, at cost | $ | 128,000 | $ | 3,423,677 | $ | 740,212 | $ | 58,723,254 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total investments, at cost | $ | 492,785,774 | $ | 69,429,336 | $ | 1,198,949,432 | $ | 290,260,980 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Foreign currencies, at cost | $ | — | $ | — | $ | — | $ | 5,680 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Premium received on written options | $ | — | $ | — | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
(a) Includes securities on loan with an aggregate value of | $ | — | $ | 3,261,447 | $ | — | $ | 32,909,942 | ||||||||
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 50 |
|
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) | |||||||||||||||||
$ | 153,458,712 | $ | 332,586,531 | $ | 1,221,997,010 | $ | 796,456,424 | $ | 103,106,766 | $ | 24,670,670 | |||||||||||
11,927,213 | 216,218 | — | 488,990 | 26,570,835 | 1,687,076 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
165,385,925 | 332,802,749 | 1,221,997,010 | 796,945,414 | 129,677,601 | 26,357,746 | |||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
1,477 | 313,086 | 1,881,869 | 890,516 | 24,909 | 26,007 | |||||||||||||||||
— | — | — | — | 2,161 | 13,049 | |||||||||||||||||
60,968 | — | — | — | 209,643 | 2,769 | |||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
873 | — | 1,896 | 1,563 | 743 | 636 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
165,449,243 | 333,115,835 | 1,223,880,775 | 797,837,493 | 129,915,057 | 26,400,207 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
— | 151,487 | 1,009,902 | — | — | — | |||||||||||||||||
11,762,737 | — | — | — | 26,512,018 | 1,655,718 | |||||||||||||||||
— | 3,077 | — | — | — | — | |||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
— | 5,168,475 | — | — | — | — | |||||||||||||||||
60,524 | 196,575 | 175,469 | 321,068 | 79,478 | 4,802 | |||||||||||||||||
36,179 | — | 30,617 | 92,470 | 47,846 | 17,914 | |||||||||||||||||
130,242 | — | 441,496 | 277,184 | 98,837 | 49,265 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
11,989,682 | 5,519,614 | 1,657,484 | 690,722 | 26,738,179 | 1,727,699 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 153,459,561 | $ | 327,596,221 | $ | 1,222,223,291 | $ | 797,146,771 | $ | 103,176,878 | $ | 24,672,508 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 428,924,521 | $ | 309,059,641 | $ | 1,181,990,226 | $ | 1,201,110,314 | $ | 1,237,172,282 | $ | 55,786,866 | |||||||||||
(1,760,763 | ) | 352,899 | 3,336,890 | 1,241,766 | (126,771 | ) | 48,676 | |||||||||||||||
(291,831,775 | ) | (25,053,208 | ) | (82,743,968 | ) | (592,482,827 | ) | (1,138,538,626 | ) | (36,265,317 | ) | |||||||||||
18,127,578 | 43,236,889 | 119,640,143 | 187,277,518 | 4,669,993 | 5,102,283 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 153,459,561 | $ | 327,596,221 | $ | 1,222,223,291 | $ | 797,146,771 | $ | 103,176,878 | $ | 24,672,508 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
4,300,000 | 14,750,000 | 44,250,000 | 29,850,000 | 24,750,000 | 950,000 | |||||||||||||||||
$ | 35.69 | $ | 22.21 | $ | 27.62 | $ | 26.71 | $ | 4.17 | $ | 25.97 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 35.69 | $ | 22.23 | $ | 27.63 | $ | 26.70 | $ | 4.17 | $ | 25.96 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 135,331,134 | $ | 287,749,195 | $ | 1,102,356,867 | $ | 609,178,906 | $ | 98,436,773 | $ | 19,568,387 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 11,927,213 | $ | 234,393 | $ | — | $ | 488,990 | $ | 26,570,835 | $ | 1,687,076 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 147,258,347 | $ | 287,983,588 | $ | 1,102,356,867 | $ | 609,667,896 | $ | 125,007,608 | $ | 21,255,463 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | — | $ | 3,586,203 | $ | — | $ | — | $ | — | $ | — | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 11,416,985 | $ | — | $ | — | $ | — | $ | 24,767,863 | $ | 1,615,003 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| 51 |
|
For the year ended April 30, 2017
PowerShares Aerospace & Defense Portfolio (PPA) | PowerShares CleantechTM Portfolio (PZD) | PowerShares DWA Momentum Portfolio (PDP) | PowerShares Global Listed Private Equity Portfolio (PSP) | |||||||||||||
Investment Income: | ||||||||||||||||
Unaffiliated dividend income | $ | 8,120,583 | $ | 1,939,769 | $ | 18,171,243 | $ | 11,875,957 | ||||||||
Affiliated dividend income | 1,189 | 271 | 4,569 | 110,047 | ||||||||||||
Securities lending income | — | 146,459 | — | 578,460 | ||||||||||||
Foreign withholding tax | — | (146,080 | ) | (10,433 | ) | (427,186 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Total Income | 8,121,772 | 1,940,419 | 18,165,379 | 12,137,278 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Expenses: | ||||||||||||||||
Advisory fees | 1,949,134 | 390,028 | 7,061,302 | 1,371,701 | ||||||||||||
Sub-licensing fees | 233,894 | 58,505 | 1,412,262 | 274,341 | ||||||||||||
Accounting & administration fees | 72,098 | 36,827 | 258,270 | 50,557 | ||||||||||||
Professional fees | 29,472 | 31,197 | 46,045 | 59,220 | ||||||||||||
Custodian & transfer agent fees | 15,582 | 11,655 | 17,732 | 18,230 | ||||||||||||
Trustees’ and officer’s fees | 12,750 | 8,191 | 30,255 | 11,970 | ||||||||||||
Other expenses | 60,330 | 30,952 | 116,132 | 65,208 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Expenses | 2,373,260 | 567,355 | 8,941,998 | 1,851,227 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Less: Waivers | (568 | ) | (40,189 | ) | (2,158 | ) | (49,771 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Expenses | 2,372,692 | 527,166 | 8,939,840 | 1,801,456 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Investment Income | 5,749,080 | 1,413,253 | 9,225,539 | 10,335,822 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Realized and Unrealized Gain (Loss): | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investment securities | (2,787,310 | ) | (86,938 | ) | (52,779,892 | ) | (16,035,964 | ) | ||||||||
In-kind redemptions | 21,196,017 | 2,849,865 | 127,156,029 | 9,098,736 | ||||||||||||
Swap agreements | — | — | — | 4,824,587 | ||||||||||||
Written options | — | — | — | — | ||||||||||||
Foreign currencies | — | (4,003 | ) | — | (151,316 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized gain (loss) | 18,408,707 | 2,758,924 | 74,376,137 | (2,263,957 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net unrealized appreciation (depreciation) on: | ||||||||||||||||
Investment securities | 57,669,292 | 12,798,619 | 101,474,027 | 43,515,015 | ||||||||||||
Swap agreements | — | — | — | 2,414,847 | ||||||||||||
Written options | — | — | — | — | ||||||||||||
Foreign currencies | — | (2,976 | ) | — | 37,159 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in unrealized appreciation | 57,669,292 | 12,795,643 | 101,474,027 | 45,967,021 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized and unrealized gain | 76,077,999 | 15,554,567 | 175,850,164 | 43,703,064 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase in net assets resulting from operations | $ | 81,827,079 | $ | 16,967,820 | $ | 185,075,703 | $ | 54,038,886 | ||||||||
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 52 |
|
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) | |||||||||||||||||
$ | 1,348,345 | $ | 6,118,241 | $ | 25,716,886 | $ | 9,147,891 | $ | 172,703 | $ | 315,717 | |||||||||||
952 | 7,399 | 1,844 | 2,280 | 598 | 83 | |||||||||||||||||
649,955 | — | — | — | 1,931,633 | 20,531 | |||||||||||||||||
(46,644 | ) | — | — | — | (38,975 | ) | (16,511 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
1,952,608 | 6,125,640 | 25,718,730 | 9,150,171 | 2,065,959 | 319,820 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
747,103 | 2,164,525 | 3,123,268 | 3,636,591 | 451,191 | 119,586 | |||||||||||||||||
149,421 | — | 500,741 | 545,495 | 90,238 | 23,939 | |||||||||||||||||
36,827 | — | 204,176 | 135,807 | 36,827 | 36,827 | |||||||||||||||||
31,879 | — | 56,838 | 32,847 | 26,380 | 25,558 | |||||||||||||||||
81,279 | — | 34,929 | 61,665 | 27,462 | 5,589 | |||||||||||||||||
9,707 | — | 23,200 | 18,472 | 8,770 | 7,665 | |||||||||||||||||
30,402 | — | 99,467 | 89,380 | 47,460 | 18,118 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
1,086,618 | 2,164,525 | 4,042,619 | 4,520,257 | 688,328 | 237,282 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(41,123 | ) | (145 | ) | (920,354 | ) | (1,072 | ) | (56,926 | ) | (69,875 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
1,045,495 | 2,164,380 | 3,122,265 | 4,519,185 | 631,402 | 167,407 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
907,113 | 3,961,260 | 22,596,465 | 4,630,986 | 1,434,557 | 152,413 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(8,964,818 | ) | (1,735,671 | ) | (24,227,489 | ) | (13,015,932 | ) | (15,554,997 | ) | (3,007,030 | ) | |||||||||||
16,381,464 | 6,634,486 | 47,511,742 | 63,633,039 | 6,292,845 | 2,770,110 | |||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
— | (11,157,158 | ) | — | — | — | — | ||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
7,416,646 | (6,258,343 | ) | 23,284,253 | 50,617,107 | (9,262,152 | ) | (236,920 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
15,838,871 | 38,078,379 | 92,945,130 | 58,560,808 | 10,171,102 | 3,812,896 | |||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
— | (3,213,530 | ) | — | — | — | — | ||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
15,838,871 | 34,864,849 | 92,945,130 | 58,560,808 | 10,171,102 | 3,812,896 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
23,255,517 | 28,606,506 | 116,229,383 | 109,177,915 | 908,950 | 3,575,976 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 24,162,630 | $ | 32,567,766 | $ | 138,825,848 | $ | 113,808,901 | $ | 2,343,507 | $ | 3,728,389 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| 53 |
|
Statements of Changes in Net Assets
For the years ended April 30, 2017 and 2016
PowerShares Aerospace & Defense Portfolio (PPA) | PowerShares CleantechTM Portfolio (PZD) | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 5,749,080 | $ | 4,037,803 | $ | 1,413,253 | $ | 544,679 | ||||||||
Net realized gain (loss) | 18,408,707 | 14,051,317 | 2,758,924 | 1,899,628 | ||||||||||||
Net change in unrealized appreciation (depreciation) | 57,669,292 | (10,888,996 | ) | 12,795,643 | (2,560,492 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 81,827,079 | 7,200,124 | 16,967,820 | (116,185 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net investment income | (5,934,618 | ) | (3,934,869 | ) | (820,687 | ) | (576,797 | ) | ||||||||
Return of capital | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (5,934,618 | ) | (3,934,869 | ) | (820,687 | ) | (576,797 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shareholder Transactions: | ||||||||||||||||
Proceeds from shares sold | 277,012,088 | 110,857,357 | 10,079,801 | — | ||||||||||||
Value of shares repurchased | (82,489,845 | ) | (78,000,522 | ) | (5,053,738 | ) | (4,353,113 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from shares transactions | 194,522,243 | 32,856,835 | 5,026,063 | (4,353,113 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Increase (Decrease) in Net Assets | 270,414,704 | 36,122,090 | 21,173,196 | (5,046,095 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 298,734,786 | 262,612,696 | 71,465,875 | 76,511,970 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 569,149,490 | $ | 298,734,786 | $ | 92,639,071 | $ | 71,465,875 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income at end of year | $ | 168,740 | $ | 354,278 | $ | 770,616 | $ | 182,053 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Changes in Shares Outstanding: | ||||||||||||||||
Shares sold | 6,600,000 | 3,150,000 | 300,000 | — | ||||||||||||
Shares repurchased | (2,100,000 | ) | (2,300,000 | ) | (150,000 | ) | (150,000 | ) | ||||||||
Shares outstanding, beginning of year | 8,200,000 | 7,350,000 | 2,350,000 | 2,500,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding, end of year | 12,700,000 | 8,200,000 | 2,500,000 | 2,350,000 | ||||||||||||
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 54 |
|
PowerShares DWA Momentum Portfolio (PDP) | PowerShares Global Listed Private Equity Portfolio (PSP) | PowerShares Golden Dragon China Portfolio (PGJ) | ||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
$ | 9,225,539 | $ | 5,251,402 | $ | 10,335,822 | $ | 22,814,219 | $ | 907,113 | $ | 326,329 | |||||||||||
74,376,137 | 11,667,965 | (2,263,957 | ) | (5,143,054 | ) | 7,416,646 | 5,207,596 | |||||||||||||||
101,474,027 | (151,181,845 | ) | 45,967,021 | (60,132,281 | ) | 15,838,871 | (28,892,998 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
185,075,703 | (134,262,478 | ) | 54,038,886 | (42,461,116 | ) | 24,162,630 | (23,359,073 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(11,481,353 | ) | (5,095,535 | ) | (11,056,794 | ) | (22,461,093 | ) | (2,659,581 | ) | (604,271 | ) | |||||||||||
— | — | — | — | — | (172,929 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(11,481,353 | ) | (5,095,535 | ) | (11,056,794 | ) | (22,461,093 | ) | (2,659,581 | ) | (777,200 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
671,193,039 | 825,218,576 | 28,301,549 | 27,886,163 | 16,535,584 | 31,179,637 | |||||||||||||||||
(865,740,010 | ) | (1,119,618,364 | ) | (111,064,844 | ) | (113,645,852 | ) | (47,827,306 | ) | (74,425,765 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(194,546,971 | ) | (294,399,788 | ) | (82,763,295 | ) | (85,759,689 | ) | (31,291,722 | ) | (43,246,128 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(20,952,621 | ) | (433,757,801 | ) | (39,781,203 | ) | (150,681,898 | ) | (9,788,673 | ) | (67,382,401 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
1,438,022,453 | 1,871,780,254 | 325,924,529 | 476,606,427 | 163,248,234 | 230,630,635 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 1,417,069,832 | $ | 1,438,022,453 | $ | 286,143,326 | $ | 325,924,529 | $ | 153,459,561 | $ | 163,248,234 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | (57,012 | ) | $ | 1,885,622 | $ | (270,688 | ) | $ | (11,297,899 | ) | $ | (1,760,763 | ) | $ | (204,010 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
15,600,000 | 19,600,000 | 2,500,000 | 2,400,000 | 500,000 | 950,000 | |||||||||||||||||
(20,200,000 | ) | (28,200,000 | ) | (10,350,000 | ) | (11,100,000 | ) | (1,550,000 | ) | (2,450,000 | ) | |||||||||||
35,500,000 | 44,100,000 | 31,200,000 | 39,900,000 | 5,350,000 | 6,850,000 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
30,900,000 | 35,500,000 | 23,350,000 | 31,200,000 | 4,300,000 | 5,350,000 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| 55 |
|
Statements of Changes in Net Assets (continued)
For the years ended April 30, 2017 and 2016
PowerShares S&P 500 BuyWrite Portfolio (PBP) | PowerShares S&P 500® Quality Portfolio (SPHQ) | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 3,961,260 | $ | 4,832,789 | $ | 22,596,465 | $ | 11,619,554 | ||||||||
Net realized gain (loss) | (6,258,343 | ) | 48,746,477 | 23,284,253 | 95,897,301 | |||||||||||
Net change in unrealized appreciation (depreciation) | 34,864,849 | (52,833,355 | ) | 92,945,130 | (44,054,301 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 32,567,766 | 745,911 | 138,825,848 | 63,462,554 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net investment income | (4,415,671 | ) | (5,351,930 | ) | (21,152,308 | ) | (10,888,763 | ) | ||||||||
Net realized gains | (2,349,199 | ) | (12,062,642 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (6,764,870 | ) | (17,414,572 | ) | (21,152,308 | ) | (10,888,763 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shareholder Transactions: | ||||||||||||||||
Proceeds from shares sold | 44,370,524 | 113,491,101 | 761,004,994 | 927,220,372 | ||||||||||||
Value of shares repurchased | (40,472,367 | ) | (203,197,290 | ) | (555,533,133 | ) | (614,252,831 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from shares transactions | 3,898,157 | (89,706,189 | ) | 205,471,861 | 312,967,541 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Increase (Decrease) in Net Assets | 29,701,053 | (106,374,850 | ) | 323,145,401 | 365,541,332 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 297,895,168 | 404,270,018 | 899,077,890 | 533,536,558 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 327,596,221 | $ | 297,895,168 | $ | 1,222,223,291 | $ | 899,077,890 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income at end of year | $ | 352,899 | $ | 807,310 | $ | 3,336,890 | $ | 1,892,733 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Changes in Shares Outstanding: | ||||||||||||||||
Shares sold | 2,050,000 | 5,400,000 | 30,000,000 | 39,250,000 | ||||||||||||
Shares repurchased | (1,950,000 | ) | (9,800,000 | ) | (22,150,000 | ) | (25,800,000 | ) | ||||||||
Shares outstanding, beginning of year | 14,650,000 | 19,050,000 | 36,400,000 | 22,950,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding, end of year | 14,750,000 | 14,650,000 | 44,250,000 | 36,400,000 | ||||||||||||
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 56 |
|
PowerShares Water Resources Portfolio (PHO) | PowerShares WilderHill Clean Energy Portfolio (PBW) | PowerShares WilderHill Progressive Energy Portfolio (PUW) | ||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
$ | 4,630,986 | $ | 4,118,173 | $ | 1,434,557 | $ | 2,660,810 | $ | 152,413 | $ | 330,986 | |||||||||||
50,617,107 | (42,964,308 | ) | (9,262,152 | ) | (38,371,622 | ) | (236,920 | ) | (5,276,031 | ) | ||||||||||||
58,560,808 | (35,442,735 | ) | 10,171,102 | (2,472,953 | ) | 3,812,896 | (1,905,394 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
113,808,901 | (74,288,870 | ) | 2,343,507 | (38,183,765 | ) | 3,728,389 | (6,850,439 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(3,714,832 | ) | (5,414,109 | ) | (1,849,749 | ) | (2,346,665 | ) | (151,173 | ) | (367,721 | ) | |||||||||||
— | — | — | — | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(3,714,832 | ) | (5,414,109 | ) | (1,849,749 | ) | (2,346,665 | ) | (151,173 | ) | (367,721 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
168,314,105 | 149,177,885 | 20,828,567 | 5,301,285 | 4,954,622 | — | |||||||||||||||||
(161,724,111 | ) | (244,171,049 | ) | (19,400,534 | ) | (7,305,808 | ) | (7,346,386 | ) | (3,464,537 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
6,589,994 | (94,993,164 | ) | 1,428,033 | (2,004,523 | ) | (2,391,764 | ) | (3,464,537 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
116,684,063 | (174,696,143 | ) | 1,921,791 | (42,534,953 | ) | 1,185,452 | (10,682,697 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
680,462,708 | 855,158,851 | 101,255,087 | 143,790,040 | 23,487,056 | 34,169,753 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 797,146,771 | $ | 680,462,708 | $ | 103,176,878 | $ | 101,255,087 | $ | 24,672,508 | $ | 23,487,056 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 1,241,766 | $ | 325,612 | $ | (126,771 | ) | $ | 246,275 | $ | 48,676 | $ | 47,436 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
6,750,000 | 6,650,000 | 5,200,000 | 1,250,000 | 200,000 | — | |||||||||||||||||
(6,500,000 | ) | (11,000,000 | ) | (5,100,000 | ) | (1,550,000 | ) | (300,000 | ) | (150,000 | ) | |||||||||||
29,600,000 | 33,950,000 | 24,650,000 | 24,950,000 | 1,050,000 | 1,200,000 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
29,850,000 | 29,600,000 | 24,750,000 | 24,650,000 | 950,000 | 1,050,000 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| 57 |
|
PowerShares Aerospace & Defense Portfolio (PPA)
Year Ended April 30, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 36.43 | $ | 35.73 | $ | 32.16 | $ | 23.22 | $ | 19.99 | ||||||||||
Net investment income(a) | 0.60 | 0.53 | (b) | 0.32 | 0.33 | 0.44 | ||||||||||||||
Net realized and unrealized gain on investments | 8.43 | 0.67 | 3.52 | 9.00 | 3.22 | |||||||||||||||
Total from investment operations | 9.03 | 1.20 | 3.84 | 9.33 | 3.66 | |||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.65 | ) | (0.50 | ) | (0.27 | ) | (0.39 | ) | (0.43 | ) | ||||||||||
Net asset value at end of year | $ | 44.81 | $ | 36.43 | $ | 35.73 | $ | 32.16 | $ | 23.22 | ||||||||||
Market price at end of year(c) | $ | 44.84 | $ | 36.42 | $ | 35.71 | $ | 32.15 | $ | 23.20 | ||||||||||
Net Asset Value Total Return(d) | 25.06 | % | 3.43 | % | 11.99 | % | 40.52 | % | 18.69 | % | ||||||||||
Market Price Total Return(d) | 25.18 | % | 3.46 | % | 11.96 | % | 40.59 | % | 18.65 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 569,149 | $ | 298,735 | $ | 262,613 | $ | 98,086 | $ | 47,607 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.61 | % | 0.64 | % | 0.66 | % | 0.66 | % | 0.66 | % | ||||||||||
Expenses, prior to Waivers | 0.61 | % | 0.64 | % | 0.66 | % | 0.69 | % | 0.74 | % | ||||||||||
Net investment income, after Waivers | 1.47 | % | 1.50 | %(b) | 0.94 | % | 1.13 | % | 2.18 | % | ||||||||||
Portfolio turnover rate(e) | 10 | % | 16 | % | 13 | % | 8 | % | 17 | % |
(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, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 30.41 | $ | 30.60 | $ | 31.90 | $ | 25.47 | $ | 23.06 | ||||||||||
Net investment income(a) | 0.59 | (b) | 0.22 | 0.27 | 0.17 | 0.26 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 6.41 | (0.18 | ) | (1.33 | ) | 6.53 | 2.37 | |||||||||||||
Total from investment operations | 7.00 | 0.04 | (1.06 | ) | 6.70 | 2.63 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.35 | ) | (0.23 | ) | (0.24 | ) | (0.27 | ) | (0.22 | ) | ||||||||||
Net asset value at end of year | $ | 37.06 | $ | 30.41 | $ | 30.60 | $ | 31.90 | $ | 25.47 | ||||||||||
Market price at end of year(c) | $ | 37.19 | $ | 30.29 | $ | 30.54 | $ | 31.92 | $ | 25.36 | ||||||||||
Net Asset Value Total Return(d) | 23.21 | % | 0.15 | % | (3.36 | )% | 26.52 | % | 11.59 | % | ||||||||||
Market Price Total Return(d) | 24.13 | % | (0.05 | )% | (3.61 | )% | 27.15 | % | 11.50 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 92,639 | $ | 71,466 | $ | 76,512 | $ | 84,535 | $ | 71,314 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.68 | % | 0.67 | % | 0.67 | % | 0.67 | % | 0.67 | % | ||||||||||
Expenses, prior to Waivers | 0.73 | % | 0.73 | % | 0.72 | % | 0.72 | % | 0.76 | % | ||||||||||
Net investment income, after Waivers | 1.81 | %(b) | 0.76 | % | 0.89 | % | 0.58 | % | 1.16 | % | ||||||||||
Portfolio turnover rate(e) | 24 | % | 25 | % | 22 | % | 24 | % | 22 | % |
(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 $0.39 and 1.20%, 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 DWA Momentum Portfolio (PDP)
Year Ended April 30, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 40.51 | $ | 42.44 | $ | 36.96 | $ | 31.77 | $ | 27.86 | ||||||||||
Net investment income(a) | 0.28 | 0.12 | 0.16 | 0.06 | 0.23 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 5.41 | (1.94 | ) | 5.43 | 5.23 | 3.92 | ||||||||||||||
Total from investment operations | 5.69 | (1.82 | ) | 5.59 | 5.29 | 4.15 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.34 | ) | (0.11 | ) | (0.11 | ) | (0.10 | ) | (0.24 | ) | ||||||||||
Net asset value at end of year | $ | 45.86 | $ | 40.51 | $ | 42.44 | $ | 36.96 | $ | 31.77 | ||||||||||
Market price at end of year(b) | $ | 45.87 | $ | 40.50 | $ | 42.43 | $ | 36.93 | $ | 31.76 | ||||||||||
Net Asset Value Total Return(c) | 14.12 | % | (4.29 | )% | 15.13 | % | 16.71 | % | 15.02 | % | ||||||||||
Market Price Total Return(c) | 14.17 | % | (4.29 | )% | 15.19 | % | 16.65 | % | 14.98 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 1,417,070 | $ | 1,438,022 | $ | 1,871,780 | $ | 1,260,444 | $ | 876,929 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.63 | % | 0.64 | % | 0.63 | %(d) | 0.64 | %(d) | 0.67 | %(d) | ||||||||||
Expenses, prior to Waivers | 0.63 | % | 0.64 | % | 0.63 | %(d) | 0.64 | %(d) | 0.67 | %(d) | ||||||||||
Net investment income, after Waivers | 0.65 | % | 0.29 | % | 0.39 | % | 0.17 | % | 0.82 | % | ||||||||||
Portfolio turnover rate(e) | 68 | % | 100 | % | 73 | % | 75 | % | 66 | % |
(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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Financial Highlights (continued)
PowerShares Global Listed Private Equity Portfolio (PSP)
Year Ended April 30, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 10.45 | $ | 11.95 | $ | 11.79 | $ | 11.70 | $ | 9.22 | ||||||||||
Net investment income(a) | 0.41 | 0.60 | (b) | 0.35 | 0.38 | (c) | 0.24 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 1.85 | (1.53 | ) | 0.41 | 1.38 | 2.64 | ||||||||||||||
Total from investment operations | 2.26 | (0.93 | ) | 0.76 | 1.76 | 2.88 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.46 | ) | (0.57 | ) | (0.60 | ) | (1.67 | ) | (0.40 | ) | ||||||||||
Net asset value at end of year | $ | 12.25 | $ | 10.45 | $ | 11.95 | $ | 11.79 | $ | 11.70 | ||||||||||
Market price at end of year(d) | $ | 12.29 | $ | 10.39 | $ | 11.93 | $ | 11.85 | $ | 11.75 | ||||||||||
Net Asset Value Total Return(e) | 22.21 | % | (8.09 | )% | 6.79 | % | 16.20 | % | 31.87 | % | ||||||||||
Market Price Total Return(e) | 23.32 | % | (8.47 | )% | 6.09 | % | 16.31 | % | 32.00 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 286,143 | $ | 325,925 | $ | 476,606 | $ | 583,601 | $ | 408,492 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers(f) | 0.66 | % | 0.64 | % | 0.64 | % | 0.69 | % | 0.70 | % | ||||||||||
Expenses, prior to Waivers(f) | 0.67 | % | 0.66 | % | 0.66 | % | 0.70 | % | 0.70 | % | ||||||||||
Net investment income, after Waivers | 3.77 | % | 5.51 | %(b) | 3.04 | % | 3.20 | %(c) | 2.47 | % | ||||||||||
Portfolio turnover rate(g) | 39 | % | 35 | % | 30 | % | 53 | % | 53 | % |
(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.
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Financial Highlights (continued)
PowerShares Golden Dragon China Portfolio (PGJ)
Year Ended April 30, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 30.51 | $ | 33.67 | $ | 27.65 | $ | 19.65 | $ | 21.56 | ||||||||||
Net investment income(a) | 0.19 | 0.06 | 0.21 | 0.21 | 0.34 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 5.54 | (3.10 | ) | 6.06 | 8.08 | (1.81 | ) | |||||||||||||
Total from investment operations | 5.73 | (3.04 | ) | 6.27 | 8.29 | (1.47 | ) | |||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.55 | ) | (0.09 | ) | (0.25 | ) | (0.29 | ) | (0.44 | ) | ||||||||||
Return of capital | — | (0.03 | ) | — | — | — | ||||||||||||||
Total distributions | (0.55 | ) | (0.12 | ) | (0.25 | ) | (0.29 | ) | (0.44 | ) | ||||||||||
Net asset value at end of year | $ | 35.69 | $ | 30.51 | $ | 33.67 | $ | 27.65 | $ | 19.65 | ||||||||||
Market price at end of year(b) | $ | 35.69 | $ | 30.49 | $ | 33.62 | $ | 27.60 | $ | 19.59 | ||||||||||
Net Asset Value Total Return(c) | 19.23 | % | (9.04 | )% | 22.79 | % | 42.28 | % | (6.73 | )%(d) | ||||||||||
Market Price Total Return(c) | 19.31 | % | (8.97 | )% | 22.83 | % | 42.46 | % | (6.70 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 153,460 | $ | 163,248 | $ | 230,631 | $ | 258,569 | $ | 181,744 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | ||||||||||
Expenses, prior to Waivers | 0.73 | % | 0.70 | % | 0.70 | % | 0.70 | % | 0.75 | % | ||||||||||
Net investment income, after Waivers | 0.61 | % | 0.18 | % | 0.68 | % | 0.75 | % | 1.78 | % | ||||||||||
Portfolio turnover rate(e) | 30 | % | 47 | % | 25 | % | 37 | % | 63 | % |
(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, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 20.33 | $ | 21.22 | $ | 21.32 | $ | 20.83 | $ | 20.60 | ||||||||||
Net investment income(a) | 0.29 | 0.30 | 0.28 | 0.28 | 0.33 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.10 | (0.11 | ) | 0.65 | 1.57 | 0.70 | ||||||||||||||
Total from investment operations | 2.39 | 0.19 | 0.93 | 1.85 | 1.03 | |||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.33 | ) | (0.34 | ) | (0.86 | ) | (1.35 | ) | (0.65 | ) | ||||||||||
Net realized gains | (0.18 | ) | (0.74 | ) | (0.17 | ) | (0.01 | ) | (0.15 | ) | ||||||||||
Total distributions | (0.51 | ) | (1.08 | ) | (1.03 | ) | (1.36 | ) | (0.80 | ) | ||||||||||
Net asset value at end of year | $ | 22.21 | $ | 20.33 | $ | 21.22 | $ | 21.32 | $ | 20.83 | ||||||||||
Market price at end of year(b) | $ | 22.23 | $ | 20.29 | $ | 21.22 | $ | 21.35 | $ | 20.83 | ||||||||||
Net Asset Value Total Return(c) | 11.86 | % | 0.90 | % | 4.48 | % | 9.34 | % | 5.22 | % | ||||||||||
Market Price Total Return(c) | 12.18 | % | 0.67 | % | 4.32 | % | 9.50 | % | 4.97 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 327,596 | $ | 297,895 | $ | 404,270 | $ | 249,458 | $ | 205,222 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses | 0.75 | % | 0.75 | % | 0.75 | % | 0.75 | % | 0.75 | % | ||||||||||
Net investment income | 1.37 | % | 1.47 | % | 1.33 | % | 1.37 | % | 1.61 | % | ||||||||||
Portfolio turnover rate(d) | 24 | % | 43 | % | 50 | % | 32 | % | 22 | % |
(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 S&P 500® Quality Portfolio (SPHQ)
Year Ended April 30, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 24.70 | $ | 23.25 | $ | 20.90 | $ | 17.87 | $ | 15.33 | ||||||||||
Net investment income(a) | 0.54 | 0.45 | 0.41 | 0.36 | 0.33 | |||||||||||||||
Net realized and unrealized gain on investments | 2.84 | 1.46 | 2.33 | 3.03 | 2.52 | |||||||||||||||
Total from investment operations | 3.38 | 1.91 | 2.74 | 3.39 | 2.85 | |||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.46 | ) | (0.46 | ) | (0.39 | ) | (0.36 | ) | (0.31 | ) | ||||||||||
Net asset value at end of year | $ | 27.62 | $ | 24.70 | $ | 23.25 | $ | 20.90 | $ | 17.87 | ||||||||||
Market price at end of year(b) | $ | 27.63 | $ | 24.70 | $ | 23.24 | $ | 20.89 | $ | 17.87 | ||||||||||
Net Asset Value Total Return(c) | 13.84 | % | 8.39 | % | 13.17 | % | 19.15 | % | 18.86 | % | ||||||||||
Market Price Total Return(c) | 13.88 | % | 8.43 | % | 13.18 | % | 19.09 | % | 18.86 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 1,222,223 | $ | 899,078 | $ | 533,537 | $ | 365,686 | $ | 228,736 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.29 | % | 0.29 | % | 0.29 | % | 0.29 | % | 0.39 | % | ||||||||||
Expenses, prior to Waivers | 0.38 | % | 0.38 | % | 0.38 | % | 0.39 | % | 0.55 | % | ||||||||||
Net investment income, after Waivers | 2.10 | % | 1.92 | % | 1.83 | % | 1.87 | % | 2.06 | % | ||||||||||
Portfolio turnover rate(d) | 49 | % | 102 | % | 18 | % | 13 | % | 17 | % |
(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, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 22.99 | $ | 25.19 | $ | 25.92 | $ | 22.06 | $ | 18.78 | ||||||||||
Net investment income(a) | 0.16 | 0.13 | 0.14 | 0.16 | 0.16 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 3.68 | (2.17 | ) | (0.72 | ) | 3.83 | 3.28 | |||||||||||||
Total from investment operations | 3.84 | (2.04 | ) | (0.58 | ) | 3.99 | 3.44 | |||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.12 | ) | (0.16 | ) | (0.15 | ) | (0.13 | ) | (0.16 | ) | ||||||||||
Net asset value at end of year | $ | 26.71 | $ | 22.99 | $ | 25.19 | $ | 25.92 | $ | 22.06 | ||||||||||
Market price at end of year(b) | $ | 26.70 | $ | 22.98 | $ | 25.17 | $ | 25.91 | $ | 22.05 | ||||||||||
Net Asset Value Total Return(c) | 16.73 | % | (8.09 | )% | (2.25 | )% | 18.16 | % | 18.48 | % | ||||||||||
Market Price Total Return(c) | 16.74 | % | (8.06 | )% | (2.29 | )% | 18.17 | % | 18.49 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 797,147 | $ | 680,463 | $ | 855,159 | $ | 990,247 | $ | 877,064 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.62 | % | 0.61 | % | 0.61 | % | 0.61 | % | 0.62 | % | ||||||||||
Expenses, prior to Waivers | 0.62 | % | 0.61 | % | 0.61 | % | 0.61 | % | 0.62 | % | ||||||||||
Net investment income, after Waivers | 0.64 | % | 0.58 | % | 0.56 | % | 0.66 | % | 0.81 | % | ||||||||||
Portfolio turnover rate(d) | 44 | % | 89 | % | 25 | % | 34 | % | 31 | % |
(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, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 4.11 | $ | 5.76 | $ | 6.59 | $ | 4.79 | $ | 5.08 | ||||||||||
Net investment income(a) | 0.06 | 0.11 | 0.14 | 0.10 | 0.11 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.08 | (1.66 | ) | (0.82 | ) | 1.85 | (0.26 | ) | ||||||||||||
Total from investment operations | 0.14 | (1.55 | ) | (0.68 | ) | 1.95 | (0.15 | ) | ||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.08 | ) | (0.10 | ) | (0.15 | ) | (0.15 | ) | (0.14 | ) | ||||||||||
Net asset value at end of year | $ | 4.17 | $ | 4.11 | $ | 5.76 | $ | 6.59 | $ | 4.79 | ||||||||||
Market price at end of year(b) | $ | 4.17 | $ | 4.11 | $ | 5.76 | $ | 6.59 | $ | 4.79 | ||||||||||
Net Asset Value Total Return(c) | 3.60 | % | (27.19 | )% | (10.36 | )% | 41.23 | % | (2.64 | )% | ||||||||||
Market Price Total Return(c) | 3.60 | % | (27.19 | )% | (10.36 | )% | 41.23 | % | (2.65 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 103,177 | $ | 101,255 | $ | 143,790 | $ | 218,101 | $ | 142,494 | ||||||||||
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 | % | 0.76 | % | 0.72 | % | 0.70 | % | 0.70 | % | ||||||||||
Net investment income, after Waivers | 1.59 | % | 2.37 | % | 2.39 | % | 1.55 | % | 2.48 | % | ||||||||||
Portfolio turnover rate(d) | 59 | % | 60 | % | 48 | % | 57 | % | 52 | % |
(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, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 22.37 | $ | 28.47 | $ | 32.73 | $ | 27.56 | $ | 25.87 | ||||||||||
Net investment income(a) | 0.15 | 0.30 | 0.50 | 0.24 | 0.35 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 3.60 | (6.07 | ) | (4.27 | ) | 5.27 | 1.54 | |||||||||||||
Total from investment operations | 3.75 | (5.77 | ) | (3.77 | ) | 5.51 | 1.89 | |||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.15 | ) | (0.33 | ) | (0.49 | ) | (0.34 | ) | (0.20 | ) | ||||||||||
Net asset value at end of year | $ | 25.97 | $ | 22.37 | $ | 28.47 | $ | 32.73 | $ | 27.56 | ||||||||||
Market price at end of year(b) | $ | 25.96 | $ | 22.36 | $ | 28.47 | $ | 32.71 | $ | 27.55 | ||||||||||
Net Asset Value Total Return(c) | 16.84 | % | (20.29 | )% | (11.59 | )% | 20.24 | % | 7.38 | % | ||||||||||
Market Price Total Return(c) | 16.85 | % | (20.32 | )% | (11.54 | )% | 20.21 | % | 7.38 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 24,673 | $ | 23,487 | $ | 34,170 | $ | 45,819 | $ | 38,584 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | ||||||||||
Expenses, prior to Waivers | 0.99 | % | 0.99 | % | 0.86 | % | 0.84 | % | 0.87 | % | ||||||||||
Net investment income, after Waivers | 0.64 | % | 1.34 | % | 1.69 | % | 0.78 | % | 1.40 | % | ||||||||||
Portfolio turnover rate(d) | 39 | % | 40 | % | 41 | % | 37 | % | 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) | 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, 2017
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, 2017, 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) | “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., except for Shares of DWA Momentum Portfolio, Golden Dragon China Portfolio and Water Resources Portfolio, which are listed and traded on The NASDAQ Stock Market LLC. Prior to December 7, 2016, Shares of DWA Momentum Portfolio, Golden Dragon China Portfolio and Water Resources Portfolio were 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 |
Note 2. Significant Accounting Policies
The following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.
Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services—Investment Companies.
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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 (“OTC”) 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. Centrally cleared swap agreements are valued at the daily settlement price determined by the relevant exchange or clearinghouse.
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. DWA 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.
Non-Diversified Fund Risk. Aerospace & Defense Portfolio, Golden Dragon China Portfolio and Water Resources Portfolio are 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 Mid-Capitalization Company Risk. For each Fund (except S&P 500 BuyWrite Portfolio, S&P 500® Quality Portfolio and WilderHill Progressive Energy Portfolio), investing in securities of small- and mid-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 mid-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 Securities Risk. For CleantechTM Portfolio, Global Listed Private Equity 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.
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
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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 accounting principles generally accepted in the United States of America (“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”), any Trustee who is not an affiliate of the Adviser or Distributor (or any of their affiliates) and who is otherwise an “interested person” of the Trust under the 1940 Act (an “Unaffiliated Trustee”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees and any Unaffiliated Trustee, 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. Accounting Estimates
The preparation of the financial statements in accordance with 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.
I. 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.
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J. 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.
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.
K. Securities Lending
During the fiscal year ended April 30, 2017, 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 generally 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.
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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, 2018. The Expense Cap (including sub-licensing fees) for S&P 500® Quality Portfolio is 0.29% of the Fund’s average daily net assets per year through at least August 31, 2018. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2018. 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, 2019, 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, 2017, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:
Aerospace & Defense Portfolio | $ | 568 | ||
CleantechTM Portfolio | 40,189 | |||
DWA Momentum Portfolio | 2,158 | |||
Global Listed Private Equity Portfolio | 49,771 | |||
Golden Dragon China Portfolio | 41,123 | |||
S&P 500 BuyWrite Portfolio | 145 | |||
S&P 500® Quality Portfolio | 920,354 | |||
Water Resources Portfolio | 1,072 | |||
WilderHill Clean Energy Portfolio | 56,926 | |||
WilderHill Progressive Energy Portfolio | 69,875 |
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, 2017 are as follows:
Total Potential Recapture Amounts | Potential Recapture Amounts Expiring | |||||||||||||||
04/30/18 | 04/30/19 | 04/30/20 | ||||||||||||||
CleantechTM Portfolio | $ | 117,852 | $ | 35,420 | $ | 42,340 | $ | 40,092 | ||||||||
Golden Dragon China Portfolio | 49,476 | — | 8,803 | 40,673 | ||||||||||||
S&P 500® Quality Portfolio | 1,835,067 | 392,147 | 523,569 | 919,351 | ||||||||||||
WilderHill Clean Energy Portfolio | 153,896 | 34,402 | 62,834 | 56,660 | ||||||||||||
WilderHill Progressive Energy Portfolio | 202,213 | 60,563 | 71,809 | 69,841 |
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.
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The Adviser has entered into a licensing agreement for each Fund with the following entities (each, a “Licensor”):
Fund | Licensor | |
Aerospace & Defense Portfolio | SPADE Indexes | |
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 | Nasdaq, 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 | Nasdaq, Inc. | |
WilderHill Clean Energy Portfolio | WilderHill | |
WilderHill Progressive Energy Portfolio | Progressive Energy Index LLC |
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 investments in affiliates for the fiscal year ended April 30, 2017.
S&P 500 BuyWrite Portfolio
Value April 30, 2016 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain (Loss) | Value April 30, 2017 | Dividend Income | ||||||||||||||||||||||
Invesco Ltd. | $ | 214,744 | $ | 40,571 | $ | (49,477 | ) | $ | 20,725 | $ | (10,345 | ) | $ | 216,218 | $ | 7,134 |
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, 2017, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedules of Investments for security categories). The value 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 | $ | 308,690,603 | $ | — | $ | — | $ | 308,690,603 | ||||||||
Swap Agreements* | — | 1,188,451 | — | 1,188,451 | ||||||||||||
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Total Investments | $ | 308,690,603 | $ | 1,188,451 | $ | — | $ | 309,879,054 | ||||||||
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Golden Dragon China Portfolio | ||||||||||||||||
Equity Securities | $ | 165,385,925 | $ | — | $ | 0 | $ | 165,385,925 | ||||||||
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* | Unrealized appreciation. |
Note 6. Derivative Investments
The Funds may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a Fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.
For financial reporting purposes, the Funds do not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statements of Assets and Liabilities.
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, 2017:
Value | ||||||||
Global Listed Private Equity Portfolio | S&P 500 BuyWrite Portfolio | |||||||
Derivative Assets | Equity Risk | |||||||
Unrealized appreciation on swap agreements—OTC | $ | 1,191,005 | $ | — | ||||
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| |||||
Derivatives not subject to master netting agreements | — | — | ||||||
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| |||||
Total Derivative Assets subject to master netting agreements | $ | 1,191,005 | $ | — | ||||
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| |||||
Derivative Liabilities | Equity Risk | |||||||
Options written, at value—Exchange-Traded | $ | — | $ | (5,168,475 | ) | |||
Unrealized depreciation on swap agreements—OTC | (2,554 | ) | — | |||||
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| |||||
Total Derivative Liabilities | (2,554 | ) | (5,168,475 | ) | ||||
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Derivatives not subject to master netting agreements | — | 5,168,475 | ||||||
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| |||||
Total Derivative Liabilities subject to master netting agreements | $ | (2,554 | ) | $ | — | |||
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Offsetting Assets and Liabilities
The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of April 30, 2017:
Global Listed Private Equity Portfolio
Financial Derivative Assets | Financial Derivative Liabilities | Net value of derivatives | Collateral (Received)/Pledged | Net amount | ||||||||||||||||||||
Counterparty | Swap agreements | Swap agreements | Non-Cash | Cash | ||||||||||||||||||||
Citibank, N.A. | $ | 1,335,465 | $ | (2,601 | ) | $ | 1,332,864 | $ | — | $ | (1,080,000 | ) | $ | 252,864 | ||||||||||
Morgan Stanley Capital Services LLC | 33,694 | (5,176 | ) | 28,518 | — | — | 28,518 | |||||||||||||||||
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Total | $ | 1,369,159 | $ | (7,777 | ) | $ | 1,361,382 | $ | — | $ | (1,080,000 | ) | $ | 281,382 | ||||||||||
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Effect of Derivative Investments for the Fiscal Year Ended April 30, 2017
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 | |||||||
Equity Risk | ||||||||
Realized Gain (Loss): | ||||||||
Options written | $ | — | $ | (11,157,158 | ) | |||
Swap agreements | 4,824,587 | — | ||||||
Change in Net Unrealized Appreciation (Depreciation): | ||||||||
Options written | — | (3,213,530 | ) | |||||
Swap agreements | 2,414,847 | — | ||||||
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| |||||
Total | $ | 7,239,434 | $ | (14,370,688 | ) | |||
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The table below summarizes the average notional value of options written outstanding and swap agreements during the year.
Average Notional Value | ||||||||
Global Listed Private Equity Portfolio | S&P 500 BuyWrite Portfolio | |||||||
Options written | $ | — | $ | 292,151,250 | ||||
Swap agreements | 27,176,811 | — |
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, 2017 and 2016:
2017 | 2016 | |||||||||||||||||||||||
Ordinary Income | Long-Term Capital Gains | Return of Capital | Ordinary Income | Long-Term Capital Gains | Return of Capital | |||||||||||||||||||
Aerospace & Defense Portfolio | $ | 5,934,618 | $ | — | $ | — | $ | 3,934,869 | $ | — | $ | — | ||||||||||||
CleantechTM Portfolio | 820,687 | — | — | 576,797 | — | — | ||||||||||||||||||
DWA Momentum Portfolio | 11,481,353 | — | — | 5,095,535 | — | — | ||||||||||||||||||
Global Listed Private Equity Portfolio | 11,056,794 | — | — | 22,461,093 | — | — | ||||||||||||||||||
Golden Dragon China Portfolio | 2,659,581 | — | — | 604,271 | — | 172,929 | ||||||||||||||||||
S&P 500 BuyWrite Portfolio | 6,764,870 | — | — | 16,484,756 | 929,816 | — | ||||||||||||||||||
S&P 500® Quality Portfolio | 21,152,308 | — | — | 10,888,763 | — | — | ||||||||||||||||||
Water Resources Portfolio | 3,714,832 | — | — | 5,414,109 | — | — | ||||||||||||||||||
WilderHill Clean Energy Portfolio | 1,849,749 | — | — | 2,346,665 | — | — | ||||||||||||||||||
WilderHill Progressive Energy Portfolio | 151,173 | — | — | 367,721 | — | — |
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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 | 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 | $ | 192,476 | $ | (23,736 | ) | $ | 72,949,316 | $ | — | $ | (22,708,088 | ) | $ | (7,738 | ) | $ | 518,747,260 | $ | 569,149,490 | |||||||||||||
CleantechTM Portfolio | 791,024 | (20,408 | ) | 24,926,270 | (3,031 | ) | (66,008,424 | ) | (547,555 | ) | 133,501,195 | 92,639,071 | ||||||||||||||||||||
DWA Momentum Portfolio | — | (57,012 | ) | 215,564,662 | — | (305,862,382 | ) | (33,874,466 | ) | 1,541,299,030 | 1,417,069,832 | |||||||||||||||||||||
Global Listed Private Equity Portfolio | 12,138,710 | (32,265 | ) | (3,185,693 | ) | 13,910 | (100,107,819 | ) | (417,788 | ) | 377,734,271 | 286,143,326 | ||||||||||||||||||||
Golden Dragon China Portfolio | 51,961 | (35,023 | ) | 12,983,615 | — | (284,080,835 | ) | (4,384,678 | ) | 428,924,521 | 153,459,561 | |||||||||||||||||||||
S&P 500 BuyWrite Portfolio | 18,536,580 | — | — | — | — | — | 309,059,641 | 327,596,221 | ||||||||||||||||||||||||
S&P 500® Quality Portfolio | 3,365,784 | (28,894 | ) | 114,225,803 | — | (67,201,871 | ) | (10,127,757 | ) | 1,181,990,226 | 1,222,223,291 | |||||||||||||||||||||
Water Resources Portfolio | 1,331,846 | (90,080 | ) | 180,108,929 | — | (582,463,437 | ) | (2,850,801 | ) | 1,201,110,314 | 797,146,771 | |||||||||||||||||||||
WilderHill Clean Energy Portfolio | 444,139 | (46,988 | ) | (3,707,456 | ) | — | (1,127,624,136 | ) | (3,060,963 | ) | 1,237,172,282 | 103,176,878 | ||||||||||||||||||||
WilderHill Progressive Energy Portfolio | 65,799 | (17,123 | ) | 4,364,198 | — | (34,924,460 | ) | (602,772 | ) | 55,786,866 | 24,672,508 |
* | 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. |
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, 2017.
Post-effective/no expiration | ||||||||||||||||||||||||
2018 | 2019 | Short-Term | Long-Term | Total* | Expired | |||||||||||||||||||
Aerospace & Defense Portfolio | $ | 6,428,813 | $ | 9,464,875 | $ | 710,644 | $ | 6,103,756 | $ | 22,708,088 | $ | 7,470,897 | ||||||||||||
CleantechTM Portfolio | 25,186,026 | 12,098,616 | 1,605,720 | 27,118,062 | 66,008,424 | 14,341,075 | ||||||||||||||||||
DWA Momentum Portfolio | 60,219,842 | 10,496,532 | 235,146,008 | — | 305,862,382 | 92,771,702 | ||||||||||||||||||
Global Listed Private Equity Portfolio | 47,149,399 | — | 17,689,457 | 35,268,963 | 100,107,819 | 7,687,052 | ||||||||||||||||||
Golden Dragon China Portfolio | 74,072,167 | 35,483,714 | 19,677,953 | 154,847,001 | 284,080,835 | 22,836,421 | ||||||||||||||||||
S&P 500 BuyWrite Portfolio | — | — | — | — | — | — | ||||||||||||||||||
S&P 500® Quality Portfolio | 42,466,537 | 9,869,908 | 7,893,621 | 6,971,805 | 67,201,871 | 37,241,965 | ||||||||||||||||||
Water Resources Portfolio | 265,948,030 | 33,978,301 | 159,822,794 | 122,714,312 | 582,463,437 | 93,208,162 | ||||||||||||||||||
WilderHill Clean Energy Portfolio | 460,657,845 | 241,008,862 | 82,963,825 | 342,993,604 | 1,127,624,136 | 261,712,498 | ||||||||||||||||||
WilderHill Progressive Energy Portfolio | 12,433,887 | 2,282,887 | 6,043,369 | 14,164,317 | 34,924,460 | 8,319,827 |
* | 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, 2017, 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 | $ | 40,765,171 | $ | 41,166,282 | ||||
CleantechTM Portfolio | 19,422,859 | 18,604,788 | ||||||
DWA Momentum Portfolio | 988,430,779 | 990,321,874 | ||||||
Global Listed Private Equity Portfolio | 96,278,823 | 100,525,915 | ||||||
Golden Dragon China Portfolio | 45,129,761 | 45,958,856 | ||||||
S&P 500 BuyWrite Portfolio | 70,355,800 | 83,599,547 | ||||||
S&P 500® Quality Portfolio | 532,489,792 | 526,529,110 | ||||||
Water Resources Portfolio | 323,949,295 | 321,076,743 | ||||||
WilderHill Clean Energy Portfolio | 54,676,240 | 54,018,514 | ||||||
WilderHill Progressive Energy Portfolio | 10,428,975 | 9,344,675 |
For the fiscal year ended April 30, 2017, in-kind transactions associated with creations and redemptions were as follows:
Cost of Securities Received | Value of Securities Delivered | |||||||
Aerospace & Defense Portfolio | $ | 276,950,935 | $ | 82,041,648 | ||||
CleantechTM Portfolio | 10,079,558 | 5,080,103 | ||||||
DWA Momentum Portfolio | 670,959,703 | 864,526,897 | ||||||
Global Listed Private Equity Portfolio | 24,488,291 | 95,895,451 | ||||||
Golden Dragon China Portfolio | 16,537,334 | 48,657,673 | ||||||
S&P 500 BuyWrite Portfolio | 44,588,153 | 41,378,674 | ||||||
S&P 500® Quality Portfolio | 760,507,924 | 558,926,611 | ||||||
Water Resources Portfolio | 168,295,074 | 163,200,200 | ||||||
WilderHill Clean Energy Portfolio | 20,411,893 | 19,374,469 | ||||||
WilderHill Progressive Energy Portfolio | 4,952,100 | 8,330,807 |
Gains (losses) on in-kind transactions are generally not considered taxable gains (losses) for federal income tax purposes.
At April 30, 2017, 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 | $ | 79,770,546 | $ | (6,821,230 | ) | $ | 72,949,316 | $ | 496,279,191 | |||||||
CleantechTM Portfolio | 28,989,889 | (4,063,619 | ) | 24,926,270 | 71,073,641 | |||||||||||
DWA Momentum Portfolio | 228,259,643 | (12,694,981 | ) | 215,564,662 | 1,202,571,186 | |||||||||||
Global Listed Private Equity Portfolio | 27,419,345 | (30,605,038 | ) | (3,185,693 | ) | 311,876,296 | ||||||||||
Golden Dragon China Portfolio | 33,281,054 | (20,297,439 | ) | 12,983,615 | 152,402,310 | |||||||||||
S&P 500 BuyWrite Portfolio | — | — | — | 332,802,749 | ||||||||||||
S&P 500® Quality Portfolio | 135,873,198 | (21,647,395 | ) | 114,225,803 | 1,107,771,207 | |||||||||||
Water Resources Portfolio | 182,390,544 | (2,281,615 | ) | 180,108,929 | 616,836,485 | |||||||||||
WilderHill Clean Energy Portfolio | 12,602,129 | (16,309,585 | ) | (3,707,456 | ) | 133,385,057 | ||||||||||
WilderHill Progressive Energy Portfolio | 5,674,211 | (1,310,013 | ) | 4,364,198 | 21,993,548 |
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Note 9. Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of in-kind transactions and expired capital loss carryforwards, 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, 2017, the reclassifications were as follows:
Undistributed Net Investment Income | Undistributed Net Realized Gain (Loss) | Shares of Beneficial Interest | ||||||||||
Aerospace & Defense Portfolio | $ | — | $ | (12,808,530 | ) | $ | 12,808,530 | |||||
CleantechTM Portfolio | (4,003 | ) | 11,524,578 | (11,520,575 | ) | |||||||
DWA Momentum Portfolio | 313,180 | (25,108,126 | ) | 24,794,946 | ||||||||
Global Listed Private Equity Portfolio | 11,748,183 | (1,356,907 | ) | (10,391,276 | ) | |||||||
Golden Dragon China Portfolio | 195,715 | 8,253,942 | (8,449,657 | ) | ||||||||
S&P 500 BuyWrite Portfolio | — | — | — | |||||||||
S&P 500® Quality Portfolio | — | (4,989,642 | ) | 4,989,642 | ||||||||
Water Resources Portfolio | — | 32,447,748 | (32,447,748 | ) | ||||||||
WilderHill Clean Energy Portfolio | 42,146 | 257,824,129 | (257,866,275 | ) | ||||||||
WilderHill Progressive Energy Portfolio | — | 5,770,372 | (5,770,372 | ) |
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, any Unaffiliated Trustee, 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, each Independent Trustee or Unaffiliated 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.
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.
Certain transaction fees may be charged by the Funds for creations and redemptions, which are treated as increases in capital.
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 and Unaffiliated Trustee is also indemnified against certain liabilities arising out of the performance of his duties to the Trust pursuant to an Indemnification Agreement between such 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 of PowerShares Exchange-Traded Fund Trust and Shareholders of PowerShares Aerospace & Defense Portfolio, PowerShares Cleantech™ 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, PowerShares Water Resources Portfolio, PowerShares WilderHill Clean Energy Portfolio and PowerShares WilderHill Progressive Energy Portfolio:
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 Cleantech™ 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, 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”) as of April 30, 2017, 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 as of April 30, 2017 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Chicago, IL
June 23, 2017
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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, 2017.
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, 2016 | Ending Account Value April 30, 2017 | 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 | $ | 1,174.40 | 0.61 | % | $ | 3.29 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.77 | 0.61 | 3.06 | ||||||||||||
PowerShares CleantechTM Portfolio (PZD) | ||||||||||||||||
Actual | 1,000.00 | 1,180.20 | 0.68 | 3.68 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.42 | 0.68 | 3.41 | ||||||||||||
PowerShares DWA Momentum Portfolio (PDP) | ||||||||||||||||
Actual | 1,000.00 | 1,119.00 | 0.63 | 3.31 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.67 | 0.63 | 3.16 | ||||||||||||
PowerShares Global Listed Private Equity Portfolio (PSP) | ||||||||||||||||
Actual | 1,000.00 | 1,175.90 | 0.65 | 3.51 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.57 | 0.65 | 3.26 |
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Fees and Expenses (continued)
Beginning Account Value November 1, 2016 | Ending Account Value April 30, 2017 | 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 | $ | 1,123.70 | 0.70 | % | $ | 3.69 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.32 | 0.70 | 3.51 | ||||||||||||
PowerShares S&P 500 BuyWrite Portfolio (PBP) | ||||||||||||||||
Actual | 1,000.00 | 1,070.90 | 0.75 | 3.85 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.08 | 0.75 | 3.76 | ||||||||||||
PowerShares S&P 500® High Quality Portfolio (SPHQ) | ||||||||||||||||
Actual | 1,000.00 | 1,125.40 | 0.29 | 1.53 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,023.36 | 0.29 | 1.45 | ||||||||||||
PowerShares Water Resources Portfolio (PHO) | ||||||||||||||||
Actual | 1,000.00 | 1,133.80 | 0.63 | 3.33 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.67 | 0.63 | 3.16 | ||||||||||||
PowerShares WilderHill Clean Energy Portfolio (PBW) | ||||||||||||||||
Actual | 1,000.00 | 1,145.60 | 0.70 | 3.72 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.32 | 0.70 | 3.51 | ||||||||||||
PowerShares WilderHill Progressive Energy Portfolio (PUW) | ||||||||||||||||
Actual | 1,000.00 | 1,115.10 | 0.70 | 3.67 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.32 | 0.70 | 3.51 |
(1) | Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six-month period ended April 30, 2017. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 181/365. 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, 2017:
Qualified Dividend Income* | Corporate Dividends Received Deduction* | |||||||||
PowerShares Aerospace & Defense Portfolio | 100 | % | 100 | % | ||||||
PowerShares CleantechTM Portfolio | 100 | % | 29 | % | ||||||
PowerShares DWA Momentum Portfolio | 100 | % | 100 | % | ||||||
PowerShares Global Listed Private Equity Portfolio | 54 | % | 18 | % | ||||||
PowerShares Golden Dragon China Portfolio | 50 | % | 0 | % | ||||||
PowerShares S&P 500 BuyWrite Portfolio | 0 | % | 0 | % | ||||||
PowerShares S&P 500® Quality Portfolio | 100 | % | 100 | % | ||||||
PowerShares Water Resources Portfolio | 100 | % | 100 | % | ||||||
PowerShares WilderHill Clean Energy Portfolio | 14 | % | 8 | % | ||||||
PowerShares WilderHill Progressive Energy Portfolio | 91 | % | 72 | % |
* | 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 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 (as defined below) overseen by each Independent Trustee and the other directorships, if any, held by an Independent Trustee are shown below.
The information is current as of April 30, 2017.
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). | 135 | 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. | 135 | 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; 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). | 135 | 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). | 135 | 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- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 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 | |||||
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). | 135 | 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); President and Chief Executive Officer, Stone Pillar Investments, Ltd. (2016-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). | 135 | 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- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser. |
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Trustees and Officers (continued)
The Unaffiliated Trustee, his term of office and length of time served, his principal business occupations during at least the past five years, the number of portfolios in the Fund Complex (as defined below) overseen by the Unaffiliated Trustee and the other directorships, if any, held by the Unaffiliated Trustee, are shown below.
The information is current as of April 30, 2017.
Name, Address and Year of Birth of Unaffiliated Trustee | 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 Unaffiliated Trustee | Other Directorships Held by Unaffiliated Trustee 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). | 135 | None |
* | This is the date the Unaffiliated Trustee began serving the Trust. The Unaffiliated Trustee serves an indefinite term, until his successor is elected. |
** | Effective May 18, 2016, Mr. Nussbaum became an Unaffiliated Trustee. |
*** | Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser. |
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Trustees and Officers (continued)
The Interested Trustee 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 (as defined below) overseen by the Interested Trustees and the other directorships, if any, held by the Interested Trustee are shown below.
The information is current as of April 30, 2017.
Name, Address and Year of Birth of Interested Trustee | Position(s) Held with Trust | Term of and Length of | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex** Overseen by Interested Trustee | Other Directorships Held by Interested Trustee 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 Holding Company (US), Inc., Invesco Finance, Inc., Invesco Group Services, Inc., Invesco North American Holdings, Inc. and INVESCO Asset Management (Bermuda) Ltd.; Executive Vice President, Invesco Investments (Bermuda) Ltd., Manager, Horizon Flight Works LLC; Director and Secretary, Invesco Services (Bahamas) Private Limited; formerly, Director and Chairman, INVESCO Funds Group, Inc., Senior Vice President, Secretary and General Counsel, Invesco Advisers, Inc. (2003-2006); Director, Invesco Investments (Bermuda) Ltd. (2008-2016); 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. | 135 | None |
* | This is the date the Interested Trustee began serving the Trust. The Interested Trustee serves an indefinite term, until his successor is elected. |
** | Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 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 and Principal 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). | |||
Adam Henkel—1980 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chief Officer | Since 2017 | Chief Compliance Officer of Invesco PowerShares Capital Management LLC (2017-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 and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2017-Present); formerly, Senior Counsel, Invesco, Ltd. (2013-2017); and Assistant Vice President, U.S. Bancorp Fund Services, LLC (2010-2013). | |||
Steven M. Hill—1964 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Vice President and Treasurer | Since 2012 | 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). |
* This is the date the Officer 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 11 Greenway Plaza, Suite 1000 Houston, TX 77046 | Vice President | Since 2012 | President and Principal Executive Officer, The Invesco Funds (2016-Present); Treasurer, The Invesco Funds (2008-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 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); Manager and Assistant Secretary, Invesco Indexing LLC (2017-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.) (2011-Present); 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 date the Officer 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 11, 2017, 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 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 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, (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 the Funds.
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. (“Invesco”), 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, 2016, 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 Invesco’s Global Performance Measurement and Risk Group, an independent organization within Invesco, with respect to general expected tracking error ranges and various explanations for any tracking error. The Trustees noted that for each applicable
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Board Considerations Regarding Continuation of Investment Advisory
Agreement (continued)
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.
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 contractual advisory fee, net advisory fee, and gross and net expense ratio. The Trustees also compared each Fund’s contractual advisory fee and net expense ratio to information compiled by the Adviser from Lipper Inc. databases on the net 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 contractual 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 (The net advisory fees, after giving effect to the Expense Caps as defined below, was -0.01% for PowerShares Russell 2000 Pure Growth 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 as defined below, were -0.06%, -0.19% and -0.62%, 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 contractual 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, 2018, 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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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 contractual advisory fees for certain Funds were equal to or lower than the median net advisory fees of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the contractual advisory fees for all of the Funds were lower than the median net 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 AchieversTM Portfolio | X | |||||
PowerShares CleantechTM Portfolio | X | |||||
PowerShares Dividend AchieversTM Portfolio | 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 | 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 | ||||
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 | X | ||||
PowerShares Global Listed Private Equity Portfolio | N/A | X | ||||
PowerShares Golden Dragon China Portfolio | X | N/A | X | |||
PowerShares High Yield Equity Dividend AchieversTM Portfolio | X | |||||
PowerShares International Dividend AchieversTM Portfolio | X | N/A | 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 contractual 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 AchieversTM Portfolio | X | |||||
PowerShares CleantechTM Portfolio | X | |||||
PowerShares Dividend AchieversTM Portfolio | X | X | ||||
PowerShares DWA Basic Materials 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 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 | 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 | |||||
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 | X | |||
PowerShares Russell Midcap Pure Growth Portfolio | 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 AchieversTM Portfolio | X | X | ||||
PowerShares International Dividend AchieversTM Portfolio | N/A | 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 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. |
In response to questions from the Independent Trustees, the Adviser provided supplemental information regarding each of PowerShares Dynamic Energy Exploration & Production Portfolio, PowerShares Dynamic Large Cap Growth Portfolio, PowerShares Global Listed Private Equity Portfolio and PowerShares Russell Top 200 Pure Growth Portfolio’s advisory fees and total expenses and the Lipper peer data. The Adviser explained in detail its view that it believes that the advisory fees and total expenses for these Funds are competitive and generally in line with other comparable funds in the marketplace, noting, in particular, the unique underlying investment strategy and complexity of each Fund, the limited number of peers in the Lipper data, and/or the differing pricing philosophy of certain of the peers.
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 the Funds, 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 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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Board Considerations Regarding Continuation of Investment
Advisory Agreement
At a meeting held on April 11, 2017, 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, (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 the Funds.
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. (“Invesco”), 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 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, 2016, 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 the Funds and their underlying indexes. In reviewing the tracking error reports, the Trustees considered information provided by Invesco’s Global Performance Measurement and Risk Group, an independent organization within Invesco, 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.
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, open-end index peer funds and open-end actively-managed peer funds. The Trustees noted that each Fund’s advisory fee was reasonable because of the 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 fees, the Trustees also considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement 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.
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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.powershares.com.
P-PS-AR-4 | ||||||
©2017 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | ||||||
powershares.com 800 983 0903 | @PowerShares |
April 30, 2017 |
2017 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 |
| 2 |
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The Market Environment
US Equity
During the fiscal year ended April 30, 2017, the US economy continued to expand and strengthen, with unemployment declining and inflation ticking upward somewhat. Signs of an improving economy prompted the US Federal Reserve to raise interest rates in December 2016 and again in March 2017. Major US stock market indexes posted gains for the reporting period, with most hitting record highs following the US presidential election. Investors seemed to believe that the new administration’s plans to reduce tax rates, scale back regulations and increase infrastructure spending had the potential to stimulate economic growth.
While US and overseas stock markets were jolted by the UK’s decision in June 2016 to leave the European Union, markets recovered relatively quickly. During the second half of calendar 2016, small-cap stocks led the US market while large-cap stocks lagged—but that reversed in the first quarter of calendar 2017. Near the close of the fiscal year, headlines out of Washington, DC, suggested that enacting significant regulatory and tax reform might be somewhat more difficult than previously anticipated; this was a slight negative for investor sentiment. For the reporting period as a whole, information technology and financials were the strongest-performing sectors, while telecommunication services and energy were the weakest-performing sectors.
Global Equity
The fiscal year ended April 30, 2017, began on a negative note, with global equity investors concerned about economic weakness in China, falling oil prices and uncertainty over the US Federal Reserve’s (the “Fed”) monetary policy. Central banks, including the Fed, the European Central Bank and the Bank of Japan, soothed investors’ nerves throughout the reporting period with accommodative monetary policies and dovish rhetoric. Other factors contributing to investor sentiment included rebounding oil prices and, in the US, generally positive economic data.
In June 2016, the decision by UK voters to leave the European Union caused global markets to decline sharply, but only briefly. The outcome of the November US presidential election caused US stocks, particularly in the health care and financials sector, to rally. However, non-US equities, particularly emerging market equities, traded lower due to currency weakness and the potential for a less favorable trade environment. Also in November, OPEC agreed to cut production for the first time in eight years; the agreement helped support higher oil prices and energy stocks.
Global equity markets began calendar 2017 with a broad rally that marked the best first quarter for equities since 2013. Volatility was largely absent, and emerging market equities posted double-digit gains in the quarter. Improved consumer confidence and eurozone employment data fueled positive market sentiment, while investors generally shrugged off Fed interest rate hikes in
December 2016 and March 2017. For the reporting period as a whole, US equities outperformed non-US equites, and emerging markets outperformed their developed-market counterparts (excluding the US)—a reversal from previous years.
| 3 |
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PKW | Manager’s Analysis | |
PowerShares BuyBack AchieversTM Portfolio (PKW) |
As an index fund, the PowerShares BuyBack 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 BuyBack AchieversTM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index.
Strictly in accordance with its guidelines and mandated procedures, Nasdaq, Inc. (the “Index Provider”) includes common stocks in the Index pursuant to a proprietary selection methodology that identifies a universe of “BuyBack AchieversTM”. To qualify for the universe of “BuyBack AchieversTM,” an issuer must have effected a net reduction in shares outstanding of 5% or more in the past 12 months. 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, 2017, on a market price basis, the Fund returned 15.96%. On a net asset value (“NAV”) basis, the Fund returned 15.92%. During the same time period, the Index returned 16.68%. 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 17.92%. 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 U.S. equity market benchmark. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the U.S. stock 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 selects and 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 information technology sector during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock selection within the consumer discretionary sector.
For the fiscal year ended April 30, 2017, the industrials 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 utilities and real estate sectors, respectively.
Positions that contributed most significantly to the Fund’s return included Boeing Co. (The), an industrials company (portfolio average weight of 4.63%), and Applied Materials, Inc., an information technology company (portfolio average weight of 1.64%). Positions that detracted most significantly from the Fund’s return included Express Scripts Holding Co., a health care company (portfolio average weight of 2.25%), and Target Corp., a consumer discretionary company (portfolio average weight of 0.37%).
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Industrials | 25.3 | |||
Financials | 24.5 | |||
Consumer Discretionary | 24.2 | |||
Information Technology | 12.7 | |||
Health Care | 8.5 | |||
Consumer Staples | 2.6 | |||
Energy | 1.4 | |||
Real Estate | 0.5 | |||
Materials | 0.2 | |||
Telecommunication Services | 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, 2017 | ||||
Security | ||||
McDonald’s Corp. | 5.3 | |||
Boeing Co. (The) | 5.2 | |||
General Electric Co. | 4.8 | |||
United Technologies Corp. | 4.4 | |||
Gilead Sciences, Inc. | 4.1 | |||
Goldman Sachs Group, Inc. (The) | 4.1 | |||
American Express Co. | 3.3 | |||
American International Group, Inc. | 2.7 | |||
Applied Materials, Inc. | 2.0 | |||
Capital One Financial Corp. | 1.8 | |||
Total | 37.7 |
* | Excluding money market fund holdings. |
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PowerShares BuyBack AchieversTM Portfolio (PKW) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception† | ||||||||||||||||||||||||||||||||||
Index | 1 Year | Average Annualized | Cumulative | |||||||||||||||||||||||||||||||||||||
NASDAQ US BuyBack Achievers™ Index | 16.68 | % | 8.38 | % | 27.30 | % | 14.22 | % | 94.40 | % | 9.06 | % | 138.14 | % | 9.19 | % | 148.74 | % | ||||||||||||||||||||||
S&P 500® Index | 17.92 | 10.47 | 34.83 | 13.68 | 89.81 | 7.15 | 99.55 | 7.38 | 109.09 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 15.92 | 7.69 | 24.90 | 13.45 | 87.95 | 8.30 | 121.91 | 8.42 | 131.08 | |||||||||||||||||||||||||||||||
Market Price Return | 15.96 | 7.69 | 24.88 | 13.45 | 87.92 | 8.26 | 121.12 | 8.40 | 130.68 |
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. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.63%. The Financial Highlights section of the Shareholder 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 powershares.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 |
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PFM | Manager’s Analysis | |
PowerShares Dividend AchieversTM Portfolio (PFM) |
As an index fund, the PowerShares 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 Broad Dividend AchieversTM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index.
Strictly in accordance with its guidelines and mandated procedures, Nasdaq, Inc. (the “Index Provider”) includes common stock in the Index pursuant to a proprietary selection methodology that identifies a universe of “Dividend AchieversTM.” To qualify for the universe of “Dividend Achievers,TM” an issuer must have increased its annual regular cash dividend payments for at least each of its last ten or more calendar or fiscal years. 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, 2017, on a market price basis, the Fund returned 12.94%. On a net asset value (“NAV”) basis, the Fund returned 12.80%. During the same time period, the Index returned 13.45%. 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
During this same time period, the Russell 3000® Value Index (the “Benchmark Index”) returned 17.33%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 2,050 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 because its performance comparison is a useful measure for investors as a broad representation of the value segment of the U.S. 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 selects and weights stocks based on market capitalization and focuses on stocks of companies with 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, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund being underweight the financials sector.
For the fiscal year ended April 30, 2017, the industrials sector contributed most significantly to the Fund’s return, followed by the information technology and consumer staples sectors, respectively. There were no detracting sectors.
Positions that contributed most significantly to the Fund’s return included Microsoft Corp., an information technology company (portfolio average weight of 4.05%), and Johnson & Johnson, a health care company (portfolio average weight of 4.06%). Positions that detracted most significantly from the Fund’s return included CVS Health Corp., a consumer staples company (portfolio average weight of 1.35%), and Target Corp., a consumer discretionary company (portfolio average weight of 0.57%).
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Consumer Staples | 22.5 | |||
Industrials | 15.5 | |||
Information Technology | 11.9 | |||
Energy | 9.7 | |||
Health Care | 9.3 | |||
Consumer Discretionary | 7.4 | |||
Utilities | 6.8 | |||
Telecommunication Services | 6.2 | |||
Financials | 5.6 | |||
Materials | 3.2 | |||
Real Estate | 1.9 | |||
Money Market Fund Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
Microsoft Corp. | 4.3 | |||
Johnson & Johnson | 4.0 | |||
Exxon Mobil Corp. | 4.0 | |||
AT&T, Inc. | 3.5 | |||
Wal-Mart Stores, Inc. | 3.3 | |||
Procter & Gamble Co. (The) | 3.2 | |||
Chevron Corp. | 2.9 | |||
Verizon Communications, Inc. | 2.7 | |||
Coca-Cola Co. (The) | 2.7 | |||
PepsiCo, Inc. | 2.3 | |||
Total | 32.9 |
* | Excluding money market fund holdings. |
| 6 |
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PowerShares Dividend AchieversTM Portfolio (PFM) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception† | ||||||||||||||||||||||||||||||||||
Index | 1 Year | Average Annualized | Cumulative | |||||||||||||||||||||||||||||||||||||
NASDAQ US Broad Dividend Achievers™ Index | 13.45 | % | 8.31 | % | 27.05 | % | 11.71 | % | 73.94 | % | 6.12 | % | 81.16 | % | 7.15 | % | 123.08 | % | ||||||||||||||||||||||
Russell 3000® Value Index | 17.33 | 8.29 | 26.98 | 13.28 | 86.56 | 5.57 | 71.88 | 7.16 | 123.53 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 12.80 | 7.71 | 24.96 | 11.09 | 69.21 | 5.51 | 71.04 | 6.51 | 108.02 | |||||||||||||||||||||||||||||||
Market Price Return | 12.94 | 7.75 | 25.12 | 11.13 | 69.53 | 5.51 | 71.05 | 6.52 | 108.26 |
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. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.55%. The Financial Highlights section of the Shareholder 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 powershares.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. |
| 7 |
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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 and 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. The Index is a market capitalization weighted index designed to track the performance of preferred securities and securities that Wells Fargo Securities, LLC (the “Index Provider”) believes are functionally equivalent to preferred securities, including, but not limited to, depositary preferred securities, perpetual subordinated debt and certain capital securities. All securities in the Index are traded in the U.S. market and issued by financial institutions. The Index is composed of preferred and equivalent securities with either fixed or floating rate dividends or coupons, issued by financial institutions that have received an industrial sector classification of “financial” from the Bloomberg Professional Service. Strictly in accordance with its guidelines and mandated procedures, the Index Provider includes securities in the Index pursuant to a proprietary selection methodology.
In general, preferred stock is a class of equity security that pays distributions to preferred stockholders. Preferred stockholders have priority over common stockholders in the payment of specified dividends, such that preferred stockholders receive dividends before any dividends are paid to common stockholders. In addition, preferred stock takes precedence over common stock in receiving proceeds from an issuer in the event of the issuer’s liquidation, but is generally junior to debt, including senior and subordinated debt.
The Index may include fixed or variable rate securities, meaning that dividends and coupons (as applicable) may be paid either on a fixed rate or a variable rate percentage of the fixed par value at which the preferred stock or other securities are issued. Variable rate preferred securities are securities that pay interest at rates that adjust whenever a specified benchmark interest rate (e.g., the LIBOR or a T-Bill rate) changes, float at a fixed margin above a generally recognized base lending rate, or are reset or re-determined on specified dates (such as the last day of a month or calendar quarter). Preferred stocks often have a liquidation value that equals the original purchase price of the stock at the time of issuance. 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, 2017, on a market price basis, the Fund returned 5.89%. On a net asset value (“NAV”) basis, the Fund returned 6.06%. During the same time period, the Index returned 5.99%. The Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the Fund’s
sampling methodology, partially offset by 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 6.26%. The Benchmark Index is an unmanaged index weighted by modified market capitalization based on the average performance of approximately 300 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 because its performance comparison is a useful measure for investors as a broad representation of the U.S. preferred stock market.
The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a methodology that focuses on financial sector preferred securities, whereas the Benchmark Index includes preferred stocks from across the U.S. preferred stock market, including convertible preferred stocks.
Relative to the Benchmark Index, the majority of the Fund’s underperformance during that period can be primarily attributed to non-financial sector convertible preferred securities that were included in the Benchmark Index but not held by the Fund, as well as fees and operating expenses that the Fund incurred.
For the fiscal year ended April 30, 2017, the banks industry contributed most significantly to the Fund’s return, followed by the capital markets and insurance industries, respectively. There were no detracting industries.
Positions that contributed most significantly to the Fund’s return included HSBC Holdings PLC, 8.00%, Series 2, a banks company (portfolio average weight of 6.95%), and Citigroup, Inc., 6.88%, Series K, a banks company (portfolio average weight of 2.01%). Positions that detracted most significantly from the Fund’s return included Arch Capital Group Ltd., 5.25%, Series E, an insurance company (portfolio average weight of 0.29%), and Barclays Bank PLC, 7.75%, a preferred shares company (no longer held at fiscal year-end).
| 8 |
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PowerShares Financial Preferred Portfolio (PGF) (continued)
Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Banks | 69.2 | |||
Capital Markets | 16.5 | |||
Insurance | 8.2 | |||
Consumer Finance | 5.2 | |||
Thrifts & Mortgage Finance | 0.7 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.2 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
HSBC Holdings PLC, 8.00%, Series 2 | 7.1 | |||
Barclays Bank PLC, 8.13%, Series 5 | 3.2 | |||
Wells Fargo & Co., 8.00%, Series J | 3.0 | |||
PNC Financial Services Group, Inc. (The), 6.13%, Series P | 2.8 | |||
BB&T Corp., 5.63%, Series E | 2.8 | |||
Wells Fargo & Co., 5.85% | 2.4 | |||
HSBC Holdings PLC, 8.13% | 2.3 | |||
ING Groep NV, 6.38% | 2.2 | |||
Citigroup, Inc., 6.88%, Series K | 2.1 | |||
JPMorgan Chase & Co., 6.15%, Series BB | 2.1 | |||
Total | 30.0 |
* | Excluding money market fund holdings. |
| 9 |
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PowerShares Financial Preferred Portfolio (PGF) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception† | ||||||||||||||||||||||||||||||||||
Index | 1 Year | Average Annualized | Cumulative | |||||||||||||||||||||||||||||||||||||
Wells Fargo® Hybrid and Preferred Securities Financial Index | 5.99 | % | 7.87 | % | 25.51 | % | 7.70 | % | 44.89 | % | 5.31 | % | 67.82 | % | 5.24 | % | 70.29 | % | ||||||||||||||||||||||
S&P U.S. Preferred Stock Index | 6.26 | 6.24 | 19.92 | 6.96 | 39.97 | 4.91 | 61.43 | 5.07 | 67.38 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 6.06 | 7.59 | 24.55 | 7.40 | 42.88 | 4.44 | 54.40 | 4.38 | 56.22 | |||||||||||||||||||||||||||||||
Market Price Return | 5.89 | 7.61 | 24.62 | 7.35 | 42.57 | 4.40 | 53.78 | 4.30 | 55.04 |
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. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.63%. The Financial Highlights section of the Shareholder 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 powershares.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. |
| 10 |
|
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.
Strictly in accordance with its guidelines and mandated procedures, Nasdaq, Inc. (the “Index Provider”) includes common stocks in the Index that have a consistent record of dividend increases, principally on the basis of dividend yield and consistent growth in dividends. To qualify for inclusion in the Index, an issuer must have increased its annual regular cash dividend payments for each of its last ten or more calendar or fiscal years, and must have a minimum market capitalization of $1 billion. 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, 2017, on a market price basis, the Fund returned 17.94%. On a net asset value (“NAV”) basis, the Fund returned 17.95%. During the same time period, the Index returned 18.52%. 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 15.60%. The Benchmark Index is an unmanaged index weighted by indicated dividend yield 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 dividend-weighted index. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the U.S. dividend-paying equity securities market.
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 semiconductors & semiconductor equipment industry and most underweight in the electric utilities industry during the fiscal year ended April 30, 2017. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to stock selection within the multi-utilities industry and allocation to the banks industry.
For the fiscal year ended April 30, 2017, the banks industry contributed most significantly to the Fund’s return, followed by the multi-utilities and tobacco industries, respectively. The diversified telecommunication services industry detracted most significantly from the Fund’s return, followed by the health care providers & services industry.
Positions that contributed most significantly to the Fund’s return included ONEOK, Inc., an oil, gas & consumable fuels company (portfolio average weight of 3.26%), and Nu Skin Enterprises, Inc., Class A, a personal products company (portfolio average weight of 1.87%). Positions that detracted most significantly from the Fund’s return included Murphy Oil Corp., an oil, gas & consumable fuels company (no longer held at fiscal year-end), and Occidental Petroleum Corp., an oil, gas & consumable fuels company (portfolio average weight of 2.13%).
| 11 |
|
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY) (continued)
Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Multi-Utilities | 15.6 | |||
Oil, Gas & Consumable Fuels | 9.3 | |||
Electric Utilities | 8.9 | |||
Tobacco | 7.5 | |||
Insurance | 5.8 | |||
Diversified Telecommunication Services | 5.0 | |||
Specialty Retail | 4.2 | |||
Capital Markets | 3.8 | |||
Semiconductors & Semiconductor Equipment | 3.7 | |||
Food Products | 3.6 | |||
Hotels, Restaurants & Leisure | 3.4 | |||
Banks | 3.4 | |||
Multi-line Retail | 2.2 | |||
Energy Equipment & Services | 2.1 | |||
Beverages | 2.0 | |||
Machinery | 2.0 | |||
Metals & Mining | 1.9 | |||
Personal Products | 1.9 | |||
Electrical Equipment | 1.8 | |||
Textiles, Apparel & Luxury Goods | 1.8 | |||
Gas Utilities | 1.8 | |||
Food & Staples Retailing | 1.7 | |||
Media | 1.7 | |||
Household Products | 1.6 | |||
IT Services | 1.6 | |||
Health Care Providers & Services | 1.6 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.1 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
Vector Group Ltd. | 3.7 | |||
Mercury General Corp. | 2.6 | |||
AT&T, Inc. | 2.5 | |||
ONEOK, Inc. | 2.5 | |||
Occidental Petroleum Corp. | 2.5 | |||
Verizon Communications, Inc. | 2.5 | |||
Southern Co. (The) | 2.5 | |||
PPL Corp. | 2.4 | |||
Duke Energy Corp. | 2.3 | |||
Gap, Inc. (The) | 2.3 | |||
Total | 25.8 |
* | Excluding money market fund holdings. |
| 12 |
|
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception† | ||||||||||||||||||||||||||||||||||
Index | 1 Year | Average Annualized | Cumulative | |||||||||||||||||||||||||||||||||||||
NASDAQ US Dividend Achievers™ 50 Index | 18.52 | % | 15.83 | % | 55.40 | % | 17.49 | % | 123.84 | % | 5.44 | % | 69.80 | % | 5.76 | % | 100.27 | % | ||||||||||||||||||||||
Dow Jones U.S. Select Dividend Index | 15.60 | 10.91 | 36.42 | 14.19 | 94.17 | 6.63 | 89.96 | 7.89 | 156.26 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 17.95 | 15.24 | 53.02 | 16.88 | 118.09 | 5.01 | 63.04 | 5.29 | 89.49 | |||||||||||||||||||||||||||||||
Market Price Return | 17.94 | 15.26 | 53.11 | 16.89 | 118.21 | 5.04 | 63.54 | 5.30 | 89.72 |
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. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.54%. The Financial Highlights section of the Shareholder 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 powershares.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 |
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PID | Manager’s Analysis | |
PowerShares International Dividend AchieversTM 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 (Net) (the “Index”). The Fund generally will invest at least 90% of its total assets in dividend-paying common stocks and other securities that comprise the Index. The Index is composed of Global Depositary Receipts (“GDRs”) and American Depository Receipts (“ADRs”) that are listed on the London Stock Exchange or the London International Exchange, in addition to ADRs and non-U.S. common or ordinary stocks traded on the New York Stock Exchange, the NASDAQ Stock Market LLC or NYSE Arca, Inc.
Strictly in accordance with its guidelines and mandated procedures, Nasdaq, Inc. (the “Index Provider”) includes stock in the Index pursuant to a proprietary selection methodology that identifies companies that have increased their aggregate annual regular cash dividend payments consistently for at least each of the last five consecutive years. 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, 2017, on a market price basis, the Fund returned 7.19%. On a net asset value (“NAV”) basis, the Fund returned 7.12%. During the same time period, the Index returned 7.27%. 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 income received from the securities lending program in which the Fund participates.
During this same time period, the MSCI EAFE® Index (Net) (the “Benchmark Index”) returned 11.29%. 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 international equity market benchmark. The Benchmark Index also was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the overall international developed equity market.
The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that 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 consumer staples sector during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock
selection in the consumer discretionary, industrials and information technology sectors.
For the fiscal year ended April 30, 2017, the financials sector contributed most significantly to the Fund’s return, followed by the energy and materials sectors, respectively. The industrials sector detracted most significantly from the Fund’s return, followed by the telecommunication services and health care sectors, respectively.
Positions that contributed most significantly to the Fund’s return included HSBC Holdings PLC ADR, a financials company (portfolio average weight of 2.75%), and Brookfield Infrastructure Partners LP, a utilities company (portfolio average weight of 1.94%). Positions that detracted most significantly from the Fund’s return included Seaspan Corp., an industrials company (portfolio average weight of 3.21%), and Teekay Offshore Partners LP, an energy company (no longer held at fiscal year-end).
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Financials | 22.2 | |||
Energy | 21.0 | |||
Telecommunication Services | 13.2 | |||
Industrials | 12.0 | |||
Health Care | 9.0 | |||
Utilities | 5.9 | |||
Information Technology | 5.7 | |||
Consumer Discretionary | 5.4 | |||
Consumer Staples | 4.1 | |||
Materials | 1.5 | |||
Money Market Fund Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
Golar LNG Partners LP | 4.0 | |||
HSBC Holdings PLC ADR | 3.9 | |||
Seaspan Corp. | 3.6 | |||
Mobile TeleSystems PJSC ADR | 3.4 | |||
BP PLC ADR | 3.1 | |||
Telefonaktiebolaget LM Ericsson, Class B ADR | 3.0 | |||
Vodafone Group PLC ADR | 2.7 | |||
Westpac Banking Corp. ADR | 2.3 | |||
National Grid PLC ADR | 2.2 | |||
LUKOIL PJSC ADR | 2.2 | |||
Total | 30.4 |
* | Excluding money market fund holdings. |
| 14 |
|
PowerShares International Dividend AchieversTM Portfolio (PID) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception††† | ||||||||||||||||||||||||||||||||||
Index | 1 Year | Average Annualized | Cumulative | |||||||||||||||||||||||||||||||||||||
Blended-NASDAQ International Dividend Achievers™ Index (Net)†,†† | 7.27 | % | (3.21 | )% | (9.33 | )% | 3.37 | % | 18.05 | % | 1.01 | % | 10.60 | % | 3.93 | % | 56.59 | % | ||||||||||||||||||||||
NASDAQ International Dividend AchieversTM Index (Net)†† | 7.27 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||||
MSCI EAFE® Index (Net)†† | 11.29 | 0.86 | 2.60 | 6.78 | 38.84 | 0.87 | 9.02 | 4.03 | 58.30 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 7.12 | (3.47 | ) | (10.05 | ) | 3.01 | 15.97 | 0.42 | 4.27 | 3.33 | 46.34 | |||||||||||||||||||||||||||||
Market Price Return | 7.19 | (3.50 | ) | (10.15 | ) | 2.98 | 15.81 | 0.42 | 4.27 | 3.33 | 46.32 |
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. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.58%. The Financial Highlights section of the Shareholder 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 powershares.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 data known as the Blended-Index is comprised of gross total returns of the Index from Fund inception through the conversion date, March 9, 2015, and net returns of the Index starting at the conversion date through April 30, 2017. |
†† | Reflects reinvested dividends net of withholding taxes. |
††† | Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund. |
| 15 |
|
Schedule of Investments(a)
PowerShares BuyBack AchieversTM Portfolio (PKW)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Consumer Discretionary—24.2% | ||||||||
114,171 | American Eagle Outfitters, Inc. | $ | 1,608,669 | |||||
4,904 | America’s Car-Mart, Inc.(b)(c) | 182,919 | ||||||
13,251 | Asbury Automotive Group, Inc.(c) | 810,961 | ||||||
63,231 | AutoNation, Inc.(c) | 2,655,702 | ||||||
17,798 | AutoZone, Inc.(c) | 12,319,598 | ||||||
94,180 | Bed Bath & Beyond, Inc. | 3,649,475 | ||||||
193,671 | Best Buy Co., Inc. | 10,034,095 | ||||||
28,062 | Big Lots, Inc.(b) | 1,416,850 | ||||||
13,696 | BJ’s Restaurants, Inc.(c) | 617,690 | ||||||
64,551 | Bloomin’ Brands, Inc. | 1,400,111 | ||||||
12,394 | Bob Evans Farms, Inc. | 827,176 | ||||||
30,625 | Brinker International, Inc.(b) | 1,353,319 | ||||||
43,996 | Burlington Stores, Inc.(c) | 4,352,084 | ||||||
117,238 | CarMax, Inc.(c) | 6,858,423 | ||||||
30,420 | Carter’s, Inc. | 2,799,857 | ||||||
233,036 | CBS Corp., Class B | 15,510,876 | ||||||
80,219 | Chico’s FAS, Inc. | 1,108,627 | ||||||
11,023 | Children’s Place, Inc. (The) | 1,265,440 | ||||||
17,973 | Chipotle Mexican Grill, Inc.(c) | 8,527,649 | ||||||
10,297 | Churchill Downs, Inc. | 1,717,540 | ||||||
90,285 | Dana, Inc. | 1,753,335 | ||||||
44,164 | Denny’s Corp.(c) | 560,883 | ||||||
17,219 | Dillard’s, Inc., Class A(b) | 953,416 | ||||||
95,632 | Discovery Communications, Inc., Class A(c) | 2,752,289 | ||||||
172,359 | Dollar General Corp. | 12,532,223 | ||||||
30,098 | Domino’s Pizza, Inc. | 5,459,476 | ||||||
45,402 | DSW, Inc., Class A | 936,189 | ||||||
49,135 | Express, Inc.(c) | 424,035 | ||||||
25,414 | Finish Line, Inc. (The), Class A | 401,795 | ||||||
23,521 | Francesca’s Holdings Corp.(c) | 371,161 | ||||||
17,190 | FTD Cos., Inc.(c) | 343,800 | ||||||
6,112 | Gaia, Inc.(c) | 66,926 | ||||||
12,289 | Genesco, Inc.(c) | 655,004 | ||||||
42,858 | GNC Holdings, Inc., Class A(b) | 333,435 | ||||||
13,399 | Group 1 Automotive, Inc. | 923,861 | ||||||
352,165 | Groupon, Inc., Class A(c) | 1,380,487 | ||||||
129,800 | H&R Block, Inc. | 3,217,742 | ||||||
110,040 | Harley-Davidson, Inc. | 6,251,372 | ||||||
77,169 | Houghton Mifflin Harcourt Co.(c) | 887,444 | ||||||
24,880 | Hyatt Hotels Corp., Class A(c) | 1,380,840 | ||||||
24,923 | Intrawest Resorts Holdings, Inc.(c) | 587,684 | ||||||
17,072 | iRobot Corp.(c) | 1,361,321 | ||||||
19,827 | Jack in the Box, Inc. | 2,021,759 | ||||||
14,543 | JAKKS Pacific, Inc.(b)(c) | 71,261 | ||||||
9,973 | Kirkland’s, Inc.(c) | 117,282 | ||||||
107,990 | Kohl’s Corp. | 4,214,850 | ||||||
73,331 | La Quinta Holdings, Inc.(c) | 1,034,700 | ||||||
43,503 | Lear Corp. | 6,206,138 | ||||||
17,002 | Marriott Vacations Worldwide Corp. | 1,873,280 | ||||||
513,137 | McDonald’s Corp. | 71,803,260 | ||||||
101,781 | Michael Kors Holdings Ltd.(c) | 3,799,485 | ||||||
23,091 | Murphy USA, Inc.(c) | 1,606,441 | ||||||
104,542 | Nordstrom, Inc.(b) | 5,046,242 | ||||||
13,374 | Panera Bread Co., Class A(c) | 4,181,782 | ||||||
23,080 | Papa John’s International, Inc. | 1,824,705 | ||||||
53,554 | Penske Automotive Group, Inc. | 2,555,061 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Discretionary (continued) | ||||||||
15,704 | Potbelly Corp.(c) | $ | 219,071 | |||||
198,637 | PulteGroup, Inc. | 4,503,101 | ||||||
8,061 | Red Robin Gourmet Burgers, Inc.(c) | 473,584 | ||||||
19,925 | Ruth’s Hospitality Group, Inc. | 396,508 | ||||||
26,912 | Select Comfort Corp.(c) | 831,581 | ||||||
11,088 | Shoe Carnival, Inc. | 281,303 | ||||||
42,795 | Signet Jewelers Ltd.(b) | 2,817,623 | ||||||
2,954,250 | Sirius XM Holdings, Inc.(b) | 14,623,538 | ||||||
20,586 | Sonic Automotive, Inc., Class A | 403,486 | ||||||
27,528 | Sonic Corp.(b) | 739,953 | ||||||
33,465 | Sotheby’s(b)(c) | 1,584,902 | ||||||
17,021 | Stage Stores, Inc.(b) | 49,020 | ||||||
346,275 | Target Corp. | 19,339,459 | ||||||
33,765 | Tempur Sealy International, Inc.(b)(c) | 1,585,267 | ||||||
62,150 | Time, Inc. | 944,680 | ||||||
101,878 | Toll Brothers, Inc. | 3,666,589 | ||||||
54,427 | Tribune Media Co., Class A | 1,989,851 | ||||||
659,319 | Twenty-First Century Fox, Inc., Class A | 20,135,602 | ||||||
35,748 | Vista Outdoor, Inc.(c) | 699,231 | ||||||
20,559 | Visteon Corp.(c) | 2,116,549 | ||||||
14,677 | Vitamin Shoppe, Inc.(c) | 283,266 | ||||||
154,711 | Wendy’s Co. (The) | 2,280,440 | ||||||
65,627 | Wyndham Worldwide Corp. | 6,254,909 | ||||||
221,701 | Yum! Brands, Inc. | 14,576,841 | ||||||
15,630 | Zumiez, Inc.(c) | 280,559 | ||||||
|
| |||||||
329,984,938 | ||||||||
|
| |||||||
Consumer Staples—2.6% | ||||||||
115,012 | Mead Johnson Nutrition Co. | 10,203,865 | ||||||
355,011 | Monster Beverage Corp.(c) | 16,110,399 | ||||||
7,107 | Natural Health Trends Corp. | 203,829 | ||||||
85,550 | Sprouts Farmers Market, Inc.(c) | 1,908,620 | ||||||
199,595 | Whole Foods Market, Inc. | 7,259,270 | ||||||
|
| |||||||
35,685,983 | ||||||||
|
| |||||||
Energy—1.4% | ||||||||
26 | Harvest Natural Resources, Inc.(c) | 180 | ||||||
24,163 | Renewable Energy Group, Inc.(c) | 252,503 | ||||||
281,150 | Valero Energy Corp. | 18,165,101 | ||||||
|
| |||||||
18,417,784 | ||||||||
|
| |||||||
Financials—24.5% | ||||||||
563,839 | American Express Co. | 44,684,241 | ||||||
613,737 | American International Group, Inc. | 37,382,721 | ||||||
96,405 | Ameriprise Financial, Inc. | 12,325,379 | ||||||
137,649 | Apollo Investment Corp. | 934,637 | ||||||
23,009 | ARMOUR Residential REIT, Inc. REIT | 553,827 | ||||||
34,695 | Assurant, Inc. | 3,339,047 | ||||||
77,775 | Assured Guaranty Ltd. | 2,965,561 | ||||||
53,941 | Axis Capital Holdings Ltd. | 3,554,712 | ||||||
47,741 | Beneficial Bancorp, Inc. | 763,856 | ||||||
302,437 | Capital One Financial Corp. | 24,309,886 | ||||||
14,427 | Clifton Bancorp, Inc. | 240,931 | ||||||
108,803 | CNO Financial Group, Inc. | 2,292,479 | ||||||
240,531 | Discover Financial Services | 15,054,835 | ||||||
172,113 | E*TRADE Financial Corp.(c) | 5,946,504 | ||||||
25,630 | Everest Re Group Ltd. | 6,451,327 | ||||||
10,649 | First Community Bancshares, Inc. | 281,772 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 16 |
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PowerShares BuyBack AchieversTM Portfolio (PKW) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
6,915 | First Financial Northwest, Inc. | $ | 108,427 | |||||
137,115 | Fortress Investment Group LLC, Class A | 1,102,405 | ||||||
354,199 | Franklin Resources, Inc. | 15,269,519 | ||||||
249,234 | Goldman Sachs Group, Inc. (The) | 55,778,569 | ||||||
231,940 | Hartford Financial Services Group, Inc. (The) | 11,216,618 | ||||||
6,443 | HCI Group, Inc.(b) | 307,267 | ||||||
69,927 | Invesco Mortgage Capital, Inc. REIT(d) | 1,140,509 | ||||||
194,154 | Investors Bancorp, Inc. | 2,689,033 | ||||||
55,288 | Kearny Financial Corp. | 807,205 | ||||||
61,058 | Legg Mason, Inc. | 2,282,348 | ||||||
141,299 | Lincoln National Corp. | 9,315,843 | ||||||
56,433 | LPL Financial Holdings, Inc. | 2,372,443 | ||||||
84,473 | MBIA, Inc.(c) | 709,573 | ||||||
56,674 | MSCI, Inc. | 5,685,536 | ||||||
28,696 | Mtge Investment Corp. REIT | 516,528 | ||||||
16,739 | National Bank Holdings Corp., Class A | 528,450 | ||||||
61,279 | Nationstar Mortgage Holdings, Inc.(c) | 987,205 | ||||||
182,332 | Navient Corp. | 2,771,446 | ||||||
19,190 | Nelnet, Inc., Class A | 863,742 | ||||||
41,791 | PennyMac Mortgage Investment Trust REIT | 747,223 | ||||||
33,583 | PHH Corp.(c) | 433,221 | ||||||
28,635 | Primerica, Inc. | 2,399,613 | ||||||
48,265 | Redwood Trust, Inc. REIT | 823,884 | ||||||
7,285 | Regional Management Corp.(c) | 144,462 | ||||||
755,147 | Regions Financial Corp. | 10,383,271 | ||||||
25,602 | RenaissanceRe Holdings Ltd. (Bermuda) | 3,639,836 | ||||||
26,268 | State National Cos., Inc. | 385,352 | ||||||
76,659 | Synovus Financial Corp. | 3,204,346 | ||||||
32,256 | TICC Capital Corp. | 236,436 | ||||||
175,109 | Travelers Cos., Inc. (The) | 21,303,761 | ||||||
4,273 | Virtus Investment Partners, Inc. | 454,647 | ||||||
118,694 | Voya Financial, Inc. | 4,436,782 | ||||||
2,859 | White Mountains Insurance Group Ltd. | 2,455,709 | ||||||
166,016 | XL Group Ltd. (Bermuda) | 6,947,770 | ||||||
|
| |||||||
333,530,694 | ||||||||
|
| |||||||
Health Care—8.5% | ||||||||
121,928 | DaVita, Inc.(c) | 8,414,251 | ||||||
376,123 | Express Scripts Holding Co.(c) | 23,071,385 | ||||||
819,041 | Gilead Sciences, Inc. | 56,145,260 | ||||||
232,098 | HCA Holdings, Inc.(c) | 19,544,973 | ||||||
33,836 | INC Research Holdings, Inc., Class A(c) | 1,522,620 | ||||||
68,419 | Innoviva, Inc.(c) | 806,318 | ||||||
25,028 | LifePoint Health, Inc.(c) | 1,555,490 | ||||||
14,787 | Magellan Health, Inc.(c) | 1,017,346 | ||||||
11,245 | Orthofix International NV(c) | 444,740 | ||||||
8,459 | Providence Service Corp. (The)(c) | 372,196 | ||||||
28,172 | United Therapeutics Corp.(c) | 3,541,220 | ||||||
|
| |||||||
116,435,799 | ||||||||
|
| |||||||
Industrials—25.3% | ||||||||
21,167 | Aegion Corp.(c) | 483,031 | ||||||
49,794 | AGCO Corp. | 3,186,318 | ||||||
37,335 | Air Transport Services Group, Inc.(c) | 686,591 | ||||||
315,874 | American Airlines Group, Inc. | 13,462,550 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
53,540 | Avis Budget Group, Inc.(c) | $ | 1,632,970 | |||||
30,596 | Babcock & Wilcox Enterprises, Inc.(c) | 286,684 | ||||||
383,605 | Boeing Co. (The) | 70,901,712 | ||||||
62,509 | BWX Technologies, Inc. | 3,073,568 | ||||||
24,974 | Continental Building Products, Inc.(c) | 608,117 | ||||||
5,353 | CRA International, Inc. | 203,093 | ||||||
105,242 | Cummins, Inc. | 15,885,227 | ||||||
457,859 | Delta Air Lines, Inc. | 20,805,113 | ||||||
38,691 | DigitalGlobe, Inc.(c) | 1,245,850 | ||||||
18,219 | Echo Global Logistics, Inc.(c) | 341,606 | ||||||
8,648 | Franklin Covey Co.(c) | 183,770 | ||||||
24,644 | GATX Corp.(b) | 1,476,176 | ||||||
2,276,650 | General Electric Co. | 66,000,083 | ||||||
29,616 | Griffon Corp. | 710,784 | ||||||
52,026 | Hertz Global Holdings, Inc.(c) | 857,909 | ||||||
20,978 | Hub Group, Inc., Class A(c) | 821,289 | ||||||
13,841 | Huron Consulting Group, Inc.(c) | 615,924 | ||||||
13,159 | Insperity, Inc. | 1,202,075 | ||||||
16,798 | Kforce, Inc. | 381,315 | ||||||
41,205 | Lincoln Electric Holdings, Inc. | 3,668,481 | ||||||
42,381 | ManpowerGroup, Inc. | 4,279,633 | ||||||
59,759 | MRC Global, Inc.(c) | 1,089,407 | ||||||
28,101 | MSC Industrial Direct Co., Inc., Class A | 2,515,883 | ||||||
10,242 | MYR Group, Inc.(c) | 432,827 | ||||||
116,714 | Pitney Bowes, Inc. | 1,551,129 | ||||||
91,439 | Quanta Services, Inc.(c) | 3,240,598 | ||||||
30,406 | RPX Corp.(c) | 390,413 | ||||||
385,484 | Southwest Airlines Co. | 21,671,910 | ||||||
74,640 | Spirit AeroSystems Holdings, Inc., Class A | 4,266,422 | ||||||
52,205 | Swift Transportation Co., Class A(c) | 1,283,199 | ||||||
48,920 | Timken Co. (The) | 2,360,390 | ||||||
197,126 | United Continental Holdings, Inc.(c) | 13,840,216 | ||||||
52,916 | United Rentals, Inc.(c) | 5,802,769 | ||||||
502,293 | United Technologies Corp. | 59,767,844 | ||||||
36,791 | W.W. Grainger, Inc. | 7,089,626 | ||||||
37,570 | Wabash National Corp. | 855,845 | ||||||
60,016 | Wabtec Corp.(b) | 5,034,742 | ||||||
4,011 | Willis Lease Finance Corp.(c) | 91,090 | ||||||
|
| |||||||
344,284,179 | ||||||||
|
| |||||||
Information Technology—12.7% | ||||||||
35,042 | Alliance Data Systems Corp. | 8,747,534 | ||||||
676,560 | Applied Materials, Inc. | 27,475,102 | ||||||
47,665 | Aspen Technology, Inc.(c) | 2,930,921 | ||||||
56,338 | Bankrate, Inc.(c) | 597,183 | ||||||
18,269 | Care.com, Inc.(c) | 216,488 | ||||||
90,853 | CDK Global, Inc. | 5,906,353 | ||||||
99,851 | CDW Corp. | 5,900,196 | ||||||
580,835 | Corning, Inc. | 16,757,090 | ||||||
31,581 | DHI Group, Inc.(c) | 121,587 | ||||||
19,639 | DST Systems, Inc. | 2,417,757 | ||||||
676,220 | eBay, Inc.(c) | 22,592,510 | ||||||
8,874 | ePlus, Inc.(c) | 632,272 | ||||||
40,594 | F5 Networks, Inc.(c) | 5,241,903 | ||||||
134,435 | Fiserv, Inc.(c) | 16,016,586 | ||||||
124,665 | Genpact Ltd. | 3,044,319 | ||||||
12,772 | GSI Technology, Inc.(c) | 102,559 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 17 |
|
PowerShares BuyBack AchieversTM Portfolio (PKW) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
49,983 | Harmonic, Inc.(c) | $ | 289,901 | |||||
83,593 | Integrated Device Technology, Inc.(c) | 2,005,396 | ||||||
17,125 | Kimball Electronics, Inc.(c) | 295,406 | ||||||
102,688 | Motorola Solutions, Inc. | 8,828,087 | ||||||
77,107 | NCR Corp.(c) | 3,180,664 | ||||||
169,763 | NetApp, Inc. | 6,765,056 | ||||||
57,509 | NetScout Systems, Inc.(c) | 2,165,214 | ||||||
182,679 | Nuance Communications, Inc.(c) | 3,268,127 | ||||||
31,051 | Planet Payment, Inc.(c) | 129,483 | ||||||
79,230 | Qorvo, Inc.(c) | 5,390,017 | ||||||
69,936 | Rambus, Inc.(c) | 875,599 | ||||||
30,234 | RetailMeNot, Inc.(c) | 350,714 | ||||||
46,548 | Sanmina Corp.(c) | 1,733,913 | ||||||
15,822 | ScanSource, Inc.(c) | 624,969 | ||||||
387,728 | Symantec Corp. | 12,263,837 | ||||||
64,117 | VeriSign, Inc.(b)(c) | 5,701,284 | ||||||
|
| |||||||
172,568,027 | ||||||||
|
| |||||||
Materials—0.2% | ||||||||
29,273 | Carpenter Technology Corp. | 1,188,484 | ||||||
10,313 | Clearwater Paper Corp.(c) | 501,212 | ||||||
66,648 | Summit Materials, Inc., Class A(c) | 1,710,187 | ||||||
|
| |||||||
3,399,883 | ||||||||
|
| |||||||
Real Estate—0.5% | ||||||||
19,910 | Ashford Hospitality Prime, Inc. REIT | 210,847 | ||||||
26,172 | Hersha Hospitality Trust REIT | 482,612 | ||||||
45,139 | iStar, Inc. REIT(c) | 552,050 | ||||||
90,164 | Macerich Co. (The) REIT | 5,628,938 | ||||||
51,466 | New Senior Investment Group, Inc. REIT | 536,276 | ||||||
|
| |||||||
7,410,723 | ||||||||
|
| |||||||
Telecommunication Services—0.1% | ||||||||
20,483 | General Communication, Inc., Class A(c) | 766,884 | ||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $1,243,917,989) | 1,362,484,894 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
953,002 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(e) (Cost $953,002) | 953,002 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $1,244,870,991)—100.1% | 1,363,437,896 | |||||||
|
|
Number of Shares | Value | |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—2.5% | ||||||||
33,704,628 | Invesco Government & Agency (Cost $33,704,628) | $ | 33,704,628 | |||||
|
| |||||||
Total Investments (Cost $1,278,575,619)—102.6% | 1,397,142,524 | |||||||
Other assets less liabilities—(2.6)% | (34,761,870 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 1,362,380,654 | ||||||
|
|
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, 2017. |
(c) | Non-income producing security. |
(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, 2017. |
(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 2I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 18 |
|
Schedule of Investments(a)
PowerShares Dividend AchieversTM Portfolio (PFM)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Consumer Discretionary—7.4% | ||||||||
3,213 | Aaron’s, Inc. | $ | 115,475 | |||||
14,097 | Best Buy Co., Inc. | 730,366 | ||||||
889 | Bob Evans Farms, Inc. | 59,332 | ||||||
3,121 | Columbia Sportswear Co. | 176,711 | ||||||
1,080 | Cracker Barrel Old Country Store, Inc. | 173,005 | ||||||
17,919 | Gap, Inc. (The) | 469,478 | ||||||
6,666 | Genuine Parts Co. | 613,406 | ||||||
5,584 | Hasbro, Inc. | 553,430 | ||||||
1,138 | International Speedway Corp., Class A | 42,220 | ||||||
2,172 | John Wiley & Sons, Inc., Class A | 114,465 | ||||||
6,008 | Leggett & Platt, Inc. | 315,660 | ||||||
39,075 | Lowe’s Cos., Inc. | 3,316,686 | ||||||
37,339 | McDonald’s Corp. | 5,224,846 | ||||||
1,766 | Meredith Corp. | 103,399 | ||||||
1,462 | Monro Muffler Brake, Inc. | 75,805 | ||||||
234 | NACCO Industries, Inc., Class A | 19,808 | ||||||
59,532 | NIKE, Inc., Class B | 3,298,668 | ||||||
2,827 | Polaris Industries, Inc.(b) | 241,030 | ||||||
17,704 | Ross Stores, Inc. | 1,150,760 | ||||||
25,233 | Target Corp. | 1,409,263 | ||||||
5,591 | Tiffany & Co. | 512,415 | ||||||
29,284 | TJX Cos., Inc. (The) | 2,302,894 | ||||||
18,584 | VF Corp. | 1,015,244 | ||||||
3,946 | Williams-Sonoma, Inc. | 213,281 | ||||||
15,895 | Yum! Brands, Inc. | 1,045,096 | ||||||
|
| |||||||
23,292,743 | ||||||||
|
| |||||||
Consumer Staples—22.5% | ||||||||
87,396 | Altria Group, Inc. | 6,273,285 | ||||||
1,266 | Andersons, Inc. (The) | 47,285 | ||||||
25,654 | Archer-Daniels-Midland Co. | 1,173,671 | ||||||
9,690 | Brown-Forman Corp., Class B | 458,531 | ||||||
6,267 | Bunge Ltd. | 495,281 | ||||||
1,760 | Casey’s General Stores, Inc. | 197,243 | ||||||
11,438 | Church & Dwight Co., Inc. | 566,524 | ||||||
5,762 | Clorox Co. (The) | 770,322 | ||||||
193,370 | Coca-Cola Co. (The) | 8,343,916 | ||||||
39,660 | Colgate-Palmolive Co. | 2,857,106 | ||||||
19,732 | Costco Wholesale Corp. | 3,502,825 | ||||||
46,076 | CVS Health Corp. | 3,798,506 | ||||||
9,384 | Flowers Foods, Inc. | 184,020 | ||||||
26,056 | General Mills, Inc. | 1,498,481 | ||||||
23,754 | Hormel Foods Corp. | 833,290 | ||||||
841 | J & J Snack Foods Corp. | 113,182 | ||||||
5,231 | JM Smucker Co. (The) | 662,872 | ||||||
15,774 | Kellogg Co. | 1,119,954 | ||||||
15,981 | Kimberly-Clark Corp. | 2,073,535 | ||||||
42,142 | Kroger Co. (The) | 1,249,510 | ||||||
1,232 | Lancaster Colony Corp. | 155,109 | ||||||
5,107 | McCormick & Co., Inc. | 510,189 | ||||||
2,362 | Nu Skin Enterprises, Inc., Class A | 130,453 | ||||||
64,287 | PepsiCo, Inc. | 7,282,431 | ||||||
115,102 | Procter & Gamble Co. (The) | 10,051,858 | ||||||
24,266 | Sysco Corp. | 1,282,943 | ||||||
1,695 | Tootsie Roll Industries, Inc. | 63,308 | ||||||
1,136 | Universal Corp. | 83,439 | ||||||
5,743 | Vector Group Ltd. | 124,738 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Staples (continued) | ||||||||
48,489 | Walgreens Boots Alliance, Inc. | $ | 4,196,238 | |||||
138,374 | Wal-Mart Stores, Inc. | 10,402,957 | ||||||
|
| |||||||
70,503,002 | ||||||||
|
| |||||||
Energy—9.7% | ||||||||
6,310 | Buckeye Partners LP | 436,526 | ||||||
85,258 | Chevron Corp. | 9,097,029 | ||||||
11,779 | Enbridge Energy Partners LP | 227,806 | ||||||
48,479 | Energy Transfer Equity LP | 904,618 | ||||||
14,483 | Energy Transfer Partners LP | 346,723 | ||||||
95,216 | Enterprise Products Partners LP | 2,601,301 | ||||||
154,210 | Exxon Mobil Corp. | 12,591,246 | ||||||
5,298 | Genesis Energy LP | 166,039 | ||||||
4,876 | Helmerich & Payne, Inc. | 295,681 | ||||||
2,820 | Holly Energy Partners LP | 104,819 | ||||||
10,243 | Magellan Midstream Partners LP | 761,055 | ||||||
34,333 | Occidental Petroleum Corp. | 2,112,853 | ||||||
9,468 | ONEOK, Inc. | 498,111 | ||||||
3,073 | TC PipeLines LP | 186,009 | ||||||
724 | TransMontaigne Partners LP | 31,856 | ||||||
|
| |||||||
30,361,672 | ||||||||
|
| |||||||
Financials—5.6% | ||||||||
1,165 | 1st Source Corp. | 56,281 | ||||||
18,032 | Aflac, Inc. | 1,350,236 | ||||||
3,966 | American Equity Investment Life Holding Co. | 94,073 | ||||||
3,909 | American Financial Group, Inc. | 380,385 | ||||||
6,921 | Ameriprise Financial, Inc. | 884,850 | ||||||
7,657 | AmTrust Financial Services, Inc.(b) | 122,895 | ||||||
2,498 | Assurant, Inc. | 240,408 | ||||||
3,868 | Axis Capital Holdings Ltd. | 254,901 | ||||||
710 | BancFirst Corp. | 68,195 | ||||||
5,442 | Bank of the Ozarks, Inc. | 258,332 | ||||||
2,942 | BOK Financial Corp. | 247,981 | ||||||
6,288 | Brown & Brown, Inc. | 269,755 | ||||||
20,923 | Chubb Ltd. | 2,871,682 | ||||||
7,400 | Cincinnati Financial Corp. | 533,466 | ||||||
4,566 | Commerce Bancshares, Inc. | 250,902 | ||||||
2,000 | Community Bank System, Inc. | 111,900 | ||||||
792 | Community Trust Bancorp, Inc. | 35,600 | ||||||
2,864 | Cullen/Frost Bankers, Inc. | 270,333 | ||||||
5,102 | Eaton Vance Corp. | 219,029 | ||||||
2,075 | Erie Indemnity Co., Class A | 256,926 | ||||||
1,777 | FactSet Research Systems, Inc. | 290,113 | ||||||
25,395 | Franklin Resources, Inc. | 1,094,778 | ||||||
1,910 | Hanover Insurance Group, Inc. (The) | 168,596 | ||||||
496 | Infinity Property & Casualty Corp. | 49,228 | ||||||
18,141 | Invesco Ltd.(c) | 597,565 | ||||||
2,485 | Mercury General Corp. | 152,803 | ||||||
11,806 | Old Republic International Corp. | 244,148 | ||||||
14,203 | People’s United Financial, Inc. | 248,126 | ||||||
3,121 | Prosperity Bancshares, Inc. | 209,731 | ||||||
1,839 | RenaissanceRe Holdings Ltd. (Bermuda) | 261,451 | ||||||
1,974 | RLI Corp. | 112,952 | ||||||
11,608 | S&P Global, Inc. | 1,557,678 | ||||||
7,151 | SEI Investments Co. | 362,627 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 19 |
|
PowerShares Dividend AchieversTM Portfolio (PFM) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
1,283 | Southside Bancshares, Inc. | $ | 44,546 | |||||
10,934 | T. Rowe Price Group, Inc. | 775,111 | ||||||
680 | Tompkins Financial Corp. | 56,216 | ||||||
5,290 | Torchmark Corp. | 405,796 | ||||||
12,564 | Travelers Cos., Inc. (The) | 1,528,536 | ||||||
2,237 | UMB Financial Corp. | 162,160 | ||||||
3,640 | United Bankshares, Inc. | 145,236 | ||||||
5,445 | W.R. Berkley Corp. | 370,151 | ||||||
1,179 | Westamerica Bancorporation(b) | 64,869 | ||||||
394 | Westwood Holdings Group, Inc. | 21,985 | ||||||
|
| |||||||
17,702,532 | ||||||||
|
| |||||||
Health Care—9.3% | ||||||||
77,625 | Abbott Laboratories | 3,387,555 | ||||||
9,761 | AmerisourceBergen Corp. | 800,890 | ||||||
83 | Atrion Corp. | 42,919 | ||||||
9,561 | Becton, Dickinson and Co. | 1,787,620 | ||||||
3,236 | C.R. Bard, Inc. | 995,005 | ||||||
14,171 | Cardinal Health, Inc. | 1,028,673 | ||||||
102,622 | Johnson & Johnson | 12,670,738 | ||||||
61,901 | Medtronic PLC | 5,143,354 | ||||||
681 | National Healthcare Corp. | 50,680 | ||||||
2,743 | Owens & Minor, Inc. | 95,045 | ||||||
6,440 | Perrigo Co. PLC | 476,174 | ||||||
16,750 | Stryker Corp. | 2,284,198 | ||||||
3,290 | West Pharmaceutical Services, Inc. | 302,779 | ||||||
|
| |||||||
29,065,630 | ||||||||
|
| |||||||
Industrials—15.5% | ||||||||
26,875 | 3M Co. | 5,262,931 | ||||||
6,607 | A.O. Smith Corp. | 355,985 | ||||||
2,496 | ABM Industries, Inc. | 107,802 | ||||||
2,139 | Brady Corp., Class A | 83,314 | ||||||
6,362 | C.H. Robinson Worldwide, Inc. | 462,517 | ||||||
2,901 | Carlisle Cos., Inc. | 294,132 | ||||||
26,345 | Caterpillar, Inc. | 2,694,040 | ||||||
4,719 | Cintas Corp. | 577,936 | ||||||
41,617 | CSX Corp. | 2,115,808 | ||||||
7,553 | Cummins, Inc. | 1,140,050 | ||||||
5,931 | Donaldson Co., Inc. | 274,487 | ||||||
6,985 | Dover Corp. | 550,977 | ||||||
28,976 | Emerson Electric Co. | 1,746,673 | ||||||
8,091 | Expeditors International of Washington, Inc. | 453,824 | ||||||
12,993 | Fastenal Co. | 580,527 | ||||||
11,971 | FedEx Corp. | 2,270,899 | ||||||
2,080 | Franklin Electric Co., Inc. | 85,488 | ||||||
13,599 | General Dynamics Corp. | 2,635,350 | ||||||
1,173 | Gorman-Rupp Co. (The) | 33,571 | ||||||
2,515 | Graco, Inc. | 271,243 | ||||||
3,272 | Healthcare Services Group, Inc. | 150,218 | ||||||
15,568 | Illinois Tool Works, Inc. | 2,149,785 | ||||||
3,971 | ITT, Inc. | 167,298 | ||||||
5,000 | J.B. Hunt Transport Services, Inc. | 448,300 | ||||||
3,496 | L3 Technologies, Inc. | 600,508 | ||||||
2,952 | Lincoln Electric Holdings, Inc. | 262,817 | ||||||
478 | Lindsay Corp. | 41,519 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
13,041 | Lockheed Martin Corp. | $ | 3,513,898 | |||||
1,448 | Matthews International Corp., Class A | 99,260 | ||||||
1,076 | McGrath RentCorp | 37,456 | ||||||
1,697 | MSA Safety, Inc. | 132,112 | ||||||
2,014 | MSC Industrial Direct Co., Inc., Class A | 180,313 | ||||||
2,580 | Nordson Corp. | 323,016 | ||||||
7,843 | Northrop Grumman Corp. | 1,929,064 | ||||||
13,157 | Raytheon Co. | 2,042,098 | ||||||
2,010 | Regal Beloit Corp. | 158,489 | ||||||
15,234 | Republic Services, Inc. | 959,590 | ||||||
5,741 | Robert Half International, Inc. | 264,373 | ||||||
9,795 | Rollins, Inc. | 380,340 | ||||||
4,577 | Roper Technologies, Inc. | 1,000,990 | ||||||
2,402 | Ryder System, Inc. | 163,120 | ||||||
6,855 | Stanley Black & Decker, Inc. | 933,308 | ||||||
792 | Tennant Co. | 58,014 | ||||||
4,860 | Toro Co. (The) | 315,511 | ||||||
36,556 | Union Pacific Corp. | 4,092,810 | ||||||
36,201 | United Technologies Corp. | 4,307,557 | ||||||
2,643 | W.W. Grainger, Inc. | 509,306 | ||||||
19,753 | Waste Management, Inc. | 1,437,623 | ||||||
|
| |||||||
48,656,247 | ||||||||
|
| |||||||
Information Technology—11.9% | ||||||||
29,608 | Accenture PLC, Class A | 3,591,451 | ||||||
16,551 | Analog Devices, Inc. | 1,261,186 | ||||||
20,165 | Automatic Data Processing, Inc. | 2,107,041 | ||||||
1,308 | Badger Meter, Inc. | 51,993 | ||||||
502 | Cass Information Systems, Inc. | 33,368 | ||||||
5,592 | Harris Corp. | 625,689 | ||||||
42,494 | International Business Machines Corp. | 6,811,363 | ||||||
3,488 | Jack Henry & Associates, Inc. | 338,057 | ||||||
12,700 | Maxim Integrated Products, Inc. | 560,705 | ||||||
9,723 | Microchip Technology, Inc. | 734,864 | ||||||
196,026 | Microsoft Corp. | 13,419,940 | ||||||
66,351 | QUALCOMM, Inc. | 3,565,703 | ||||||
44,906 | Texas Instruments, Inc. | 3,555,657 | ||||||
11,182 | Xilinx, Inc. | 705,696 | ||||||
|
| |||||||
37,362,713 | ||||||||
|
| |||||||
Materials—3.2% | ||||||||
9,775 | Air Products & Chemicals, Inc. | 1,373,387 | ||||||
5,057 | Albemarle Corp. | 550,758 | ||||||
2,799 | AptarGroup, Inc. | 224,760 | ||||||
4,153 | Bemis Co., Inc. | 186,594 | ||||||
1,517 | Compass Minerals International, Inc.(b) | 100,122 | ||||||
13,104 | Ecolab, Inc. | 1,691,595 | ||||||
2,261 | H.B. Fuller Co. | 119,449 | ||||||
477 | Hawkins, Inc. | 24,375 | ||||||
3,550 | International Flavors & Fragrances, Inc. | 491,994 | ||||||
533 | NewMarket Corp. | 250,883 | ||||||
14,322 | Nucor Corp. | 878,368 | ||||||
11,549 | PPG Industries, Inc. | 1,268,542 | ||||||
2,935 | Royal Gold, Inc. | 207,446 | ||||||
6,000 | RPM International, Inc. | 315,360 | ||||||
1,992 | Sensient Technologies Corp. | 162,945 | ||||||
4,191 | Sherwin-Williams Co. (The) | 1,402,644 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 20 |
|
PowerShares Dividend AchieversTM Portfolio (PFM) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Materials (continued) | ||||||||
2,711 | Silgan Holdings, Inc. | $ | 164,341 | |||||
4,464 | Sonoco Products Co. | 233,512 | ||||||
1,007 | Stepan Co. | 85,394 | ||||||
5,792 | Westlake Chemical Corp. | 360,552 | ||||||
|
| |||||||
10,093,021 | ||||||||
|
| |||||||
Real Estate—1.9% | ||||||||
7,140 | Digital Realty Trust, Inc. REIT | 819,958 | ||||||
3,897 | Equity LifeStyle Properties, Inc. REIT | 315,306 | ||||||
2,945 | Essex Property Trust, Inc. REIT | 719,964 | ||||||
3,240 | Federal Realty Investment Trust REIT | 424,084 | ||||||
21,032 | HCP, Inc. REIT | 659,353 | ||||||
1,804 | National Health Investors, Inc. REIT | 131,999 | ||||||
6,615 | National Retail Properties, Inc. REIT | 279,285 | ||||||
8,837 | OMEGA Healthcare Investors, Inc. REIT | 291,621 | ||||||
11,690 | Realty Income Corp. REIT | 682,112 | ||||||
4,323 | Tanger Factory Outlet Centers, Inc. REIT | 134,834 | ||||||
612 | Universal Health Realty Income Trust REIT | 42,687 | ||||||
1,336 | Urstadt Biddle Properties, Inc., Class A REIT | 26,266 | ||||||
16,287 | Welltower, Inc. REIT | 1,163,543 | ||||||
4,777 | WP Carey, Inc. REIT | 299,040 | ||||||
|
| |||||||
5,990,052 | ||||||||
|
| |||||||
Telecommunication Services—6.2% | ||||||||
276,481 | AT&T, Inc. | 10,956,942 | ||||||
725 | ATN International, Inc. | 50,163 | ||||||
4,623 | Telephone & Data Systems, Inc. | 126,948 | ||||||
183,597 | Verizon Communications, Inc. | 8,428,938 | ||||||
|
| |||||||
19,562,991 | ||||||||
|
| |||||||
Utilities—6.8% | ||||||||
10,228 | Alliant Energy Corp. | 402,165 | ||||||
1,644 | American States Water Co. | 73,191 | ||||||
4,176 | AmeriGas Partners LP | 188,004 | ||||||
7,972 | Aqua America, Inc. | 263,793 | ||||||
4,725 | Atmos Energy Corp. | 382,819 | ||||||
2,889 | Avista Corp. | 116,542 | ||||||
2,398 | Black Hills Corp. | 163,112 | ||||||
2,155 | California Water Service Group | 76,933 | ||||||
19,347 | CenterPoint Energy, Inc. | 551,970 | ||||||
732 | Chesapeake Utilities Corp. | 53,656 | ||||||
495 | Connecticut Water Service, Inc. | 26,567 | ||||||
13,704 | Consolidated Edison, Inc. | 1,086,453 | ||||||
28,215 | Dominion Resources, Inc. | 2,184,687 | ||||||
31,427 | Duke Energy Corp. | 2,592,727 | ||||||
14,636 | Edison International | 1,170,441 | ||||||
14,236 | Eversource Energy | 845,618 | ||||||
8,774 | MDU Resources Group, Inc. | 236,021 | ||||||
1,557 | MGE Energy, Inc. | 100,115 | ||||||
731 | Middlesex Water Co. | 27,866 | ||||||
3,832 | National Fuel Gas Co. | 212,216 | ||||||
3,877 | New Jersey Resources Corp. | 156,437 | ||||||
21,005 | NextEra Energy, Inc. | 2,805,428 | ||||||
1,286 | Northwest Natural Gas Co. | 76,646 | ||||||
2,173 | NorthWestern Corp. | 129,902 | ||||||
8,971 | OGE Energy Corp. | 312,011 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Utilities (continued) | ||||||||
3,996 | Portland General Electric Co. | $ | 181,179 | |||||
30,573 | PPL Corp. | 1,165,137 | ||||||
6,419 | SCANA Corp. | 425,644 | ||||||
919 | SJW Corp. | 44,884 | ||||||
3,571 | South Jersey Industries, Inc. | 133,984 | ||||||
44,519 | Southern Co. (The) | 2,217,046 | ||||||
2,133 | Southwest Gas Holdings, Inc. | 178,660 | ||||||
2,054 | Spire, Inc. | 140,802 | ||||||
7,768 | UGI Corp. | 389,643 | ||||||
3,725 | Vectren Corp. | 221,339 | ||||||
14,177 | WEC Energy Group, Inc. | 857,992 | ||||||
22,785 | Xcel Energy, Inc. | 1,026,464 | ||||||
577 | York Water Co. (The) | 21,638 | ||||||
|
| |||||||
21,239,732 | ||||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $241,169,429)—100.0% | 313,830,335 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—0.1% | ||||||||
457,845 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $457,845) | 457,845 | ||||||
|
| |||||||
Total Investments (Cost $241,627,274)—100.1% | 314,288,180 | |||||||
Other assets less liabilities—(0.1)% | (393,095 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 313,895,085 | ||||||
|
|
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, 2017. |
(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, 2017. |
(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 2I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 21 |
|
Schedule of Investments(a)
PowerShares Financial Preferred Portfolio (PGF)
April 30, 2017
Number of Shares | Value | |||||||
Preferred Stocks and Other Equity Interests—99.8% | ||||||||
Banks—69.2% | ||||||||
648,879 | Bank of America Corp., 6.00%, Series EE | $ | 16,786,500 | |||||
1,033,073 | Bank of America Corp., 6.20%, Series CC | 26,859,898 | ||||||
560,928 | Bank of America Corp., 6.20%, Series D | 14,410,240 | ||||||
75,639 | Bank of America Corp., 6.38%, Series 3 | 1,955,268 | ||||||
1,058,980 | Bank of America Corp., 6.50%, Series Y(b) | 28,486,562 | ||||||
1,161,679 | Bank of America Corp., 6.63%, Series W(b) | 31,342,099 | ||||||
2,038,606 | Barclays Bank PLC, 8.13%, Series 5 (United Kingdom)(b) | 53,268,775 | ||||||
61,882 | BB&T Corp., 5.20%, Series G | 1,552,000 | ||||||
368,223 | BB&T Corp., 5.63% | 9,507,518 | ||||||
1,849,463 | BB&T Corp., 5.63%, Series E(b) | 47,346,253 | ||||||
448,006 | BB&T Corp., 5.85%(b) | 11,451,033 | ||||||
335,449 | Citigroup, Inc., 5.80%, Series C | 8,624,394 | ||||||
808,972 | Citigroup, Inc., 6.30%, Series S(b) | 21,631,911 | ||||||
1,187,898 | Citigroup, Inc., 6.88%, Series K | 34,983,596 | ||||||
925,610 | Citigroup, Inc., 7.13%, Series J | 27,129,629 | ||||||
411,415 | Fifth Third Bancorp, 6.63%, Series I | 11,758,241 | ||||||
4,409,601 | HSBC Holdings PLC, 8.00%, Series 2 (United Kingdom)(b) | 118,485,979 | ||||||
1,394,724 | HSBC Holdings PLC, 8.13% (United Kingdom)(b) | 37,894,651 | ||||||
416,272 | Huntington Bancshares, Inc., 6.25%, Series D | 11,280,971 | ||||||
808,082 | ING Groep NV, 6.13% (Netherlands) | 20,775,788 | ||||||
175,658 | ING Groep NV, 6.20% (Netherlands) | 4,498,601 | ||||||
1,438,183 | ING Groep NV, 6.38% (Netherlands) | 37,320,849 | ||||||
761,237 | JPMorgan Chase & Co., 5.45%, Series P(b) | 19,289,746 | ||||||
1,080,532 | JPMorgan Chase & Co., 5.50%, Series O | 27,423,902 | ||||||
1,177,012 | JPMorgan Chase & Co., 6.10%, Series AA(b) | 31,602,772 | ||||||
1,268,880 | JPMorgan Chase & Co., 6.13%, Series Y(b) | 34,031,362 | ||||||
1,279,911 | JPMorgan Chase & Co., 6.15%, Series BB(b) | 34,429,606 | ||||||
125,837 | JPMorgan Chase & Co., 6.30%, Series W | 3,411,441 | ||||||
620,709 | JPMorgan Chase & Co., 6.70%, Series T | 16,926,734 | ||||||
405,534 | KeyCorp, 6.13%, Series E | 11,403,616 | ||||||
315,302 | KKR Financial Holdings LLC, 7.38%, Series A | 8,150,557 | ||||||
207,075 | People’s United Financial, Inc., 5.63%, Series A | 5,706,987 | ||||||
1,619,306 | PNC Financial Services Group, Inc. (The), 6.13%, Series P(b) | 47,397,087 | ||||||
417,040 | Regions Financial Corp., 6.38%, Series A | 10,813,847 | ||||||
464,960 | Regions Financial Corp., 6.38%, Series B(b) | 13,088,624 |
Number of Shares | Value | |||||||
Preferred Stocks and Other Equity Interests (continued) | ||||||||
Banks (continued) | ||||||||
513,830 | Royal Bank of Scotland Group PLC, 5.75%, Series L (United Kingdom) | $ | 12,907,410 | |||||
467,808 | Royal Bank of Scotland Group PLC, 6.60%, Series S (United Kingdom) | 11,905,714 | ||||||
415,784 | SunTrust Banks, Inc., 5.88%, Series E | 10,731,385 | ||||||
735,567 | U.S. Bancorp, 5.15%, Series H(b) | 19,176,232 | ||||||
1,040,861 | U.S. Bancorp, 6.50%, Series F | 30,538,862 | ||||||
943,398 | Wells Fargo & Co., 5.20% | 23,358,534 | ||||||
447,999 | Wells Fargo & Co., 5.25%, Series P(b) | 11,253,735 | ||||||
1,123,806 | Wells Fargo & Co., 5.50%, Series X | 28,038,960 | ||||||
532,500 | Wells Fargo & Co., 5.63%, Series Y | 13,307,175 | ||||||
921,671 | Wells Fargo & Co., 5.70%, Series W | 23,447,310 | ||||||
1,483,110 | Wells Fargo & Co., 5.85% | 40,192,281 | ||||||
534,082 | Wells Fargo & Co., 6.00%, Series T | 14,153,173 | ||||||
699,755 | Wells Fargo & Co., 6.00%, Series V | 18,501,522 | ||||||
274,311 | Wells Fargo & Co., 6.63%(b) | 8,199,156 | ||||||
1,919,928 | Wells Fargo & Co., 8.00%, Series J | 50,417,309 | ||||||
|
| |||||||
1,157,155,795 | ||||||||
|
| |||||||
Capital Markets—16.5% | ||||||||
536,109 | Bank of New York Mellon Corp. (The), 5.20% | 13,515,308 | ||||||
548,809 | Charles Schwab Corp. (The), 5.95%, Series D(b) | 14,795,891 | ||||||
439,565 | Charles Schwab Corp. (The), 6.00%, Series B | 11,353,964 | ||||||
543,390 | Charles Schwab Corp. (The), 6.00%, Series C(b) | 14,888,886 | ||||||
918,026 | Goldman Sachs Group, Inc. (The), 5.50%, Series J(b) | 24,749,981 | ||||||
860,997 | Goldman Sachs Group, Inc. (The), 5.95%(b) | 22,136,233 | ||||||
355,846 | Goldman Sachs Group, Inc. (The), 6.20%, Series B(b) | 9,529,556 | ||||||
266,219 | Goldman Sachs Group, Inc. (The), 6.30%, Series N | 7,179,926 | ||||||
404,243 | Goldman Sachs Group, Inc. (The), 6.38%, Series K(b) | 11,553,265 | ||||||
634,456 | Morgan Stanley, 5.85%, Series K | 16,736,949 | ||||||
542,570 | Morgan Stanley, 6.38%, Series I | 15,067,169 | ||||||
327,489 | Morgan Stanley, 6.63%, Series G | 8,812,729 | ||||||
669,219 | Morgan Stanley, 6.88%, Series F | 19,407,351 | ||||||
651,683 | Morgan Stanley, 7.13%, Series E | 19,126,896 | ||||||
340,344 | Northern Trust Corp., 5.85%, Series C(b) | 9,165,464 | ||||||
593,080 | State Street Corp., 5.25%, Series C | 14,886,308 | ||||||
314,638 | State Street Corp., 5.35%, Series G | 8,407,127 | ||||||
768,433 | State Street Corp., 5.90%, Series D(b) | 21,623,704 | ||||||
519,856 | State Street Corp., 6.00%, Series E | 13,932,141 | ||||||
|
| |||||||
276,868,848 | ||||||||
|
| |||||||
Consumer Finance—5.2% | ||||||||
456,397 | Capital One Financial Corp., 5.20%, Series G | 10,720,765 | ||||||
863,419 | Capital One Financial Corp., 6.00%, Series B | 22,068,990 | ||||||
434,247 | Capital One Financial Corp., 6.00%, Series H | 11,203,573 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 22 |
|
PowerShares Financial Preferred Portfolio (PGF) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Preferred Stocks and Other Equity Interests (continued) | ||||||||
Consumer Finance (continued) | ||||||||
478,533 | Capital One Financial Corp., 6.20%, Series F(b) | $ | 12,805,543 | |||||
397,377 | Capital One Financial Corp., 6.25%, Series C | 10,514,595 | ||||||
281,958 | Capital One Financial Corp., 6.70%, Series D | 7,753,845 | ||||||
488,449 | Discover Financial Services, 6.50%, Series B | 12,636,176 | ||||||
|
| |||||||
87,703,487 | ||||||||
|
| |||||||
Insurance—8.2% | ||||||||
794,832 | Aegon NV, 6.38% (Netherlands) | 20,490,769 | ||||||
274,114 | Aegon NV, 6.50% (Netherlands) | 7,135,187 | ||||||
323,034 | Allstate Corp. (The), 5.63%(b) | 8,389,193 | ||||||
129,975 | Allstate Corp. (The), 6.25%, Series F(b) | 3,569,114 | ||||||
708,976 | Allstate Corp. (The), 6.63%, Series E | 19,525,199 | ||||||
315,330 | Allstate Corp. (The), 6.75%, Series C | 8,608,509 | ||||||
372,367 | Arch Capital Group Ltd., 5.25%, Series E | 8,601,678 | ||||||
301,396 | Arch Capital Group Ltd., 6.75%, Series C | 7,634,361 | ||||||
227,920 | Aspen Insurance Holdings Ltd., 5.63% (Bermuda) | 5,561,248 | ||||||
241,850 | Aspen Insurance Holdings Ltd., 5.95% (Bermuda) | 6,675,060 | ||||||
444,119 | Axis Capital Holdings Ltd., 5.50%, Series E(b) | 10,756,562 | ||||||
293,548 | PartnerRe Ltd., 7.25%, Series H (Bermuda) | 8,492,344 | ||||||
339,733 | Prudential PLC, 6.50% (United Kingdom) | 8,948,567 | ||||||
205,609 | Prudential PLC, 6.75% (United Kingdom)(b) | 5,417,797 | ||||||
277,637 | RenaissanceRe Holdings Ltd., 5.38%, Series E (Bermuda)(b) | 7,063,085 | ||||||
|
| |||||||
136,868,673 | ||||||||
|
| |||||||
Thrifts & Mortgage Finance—0.7% | ||||||||
414,327 | New York Community Bancorp, Inc., 6.38%, Series A.(b) | 11,352,560 | ||||||
|
| |||||||
Total Preferred Stocks and Other Equity Interests (Cost $1,601,242,026) | 1,669,949,363 | |||||||
|
| |||||||
Money Market Fund—0.4% | ||||||||
6,798,245 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(c) (Cost $6,798,245) | 6,798,245 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $1,608,040,271)—100.2% | 1,676,747,608 | |||||||
|
|
Number of Shares | Value | |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—1.6% | ||||||||
26,528,490 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(c)(d) (Cost $26,528,490) | $ | 26,528,490 | |||||
|
| |||||||
Total Investments (Cost $1,634,568,761)—101.8% | 1,703,276,098 | |||||||
Other assets less liabilities—(1.8)% | (30,364,707 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 1,672,911,391 | ||||||
|
|
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, 2017. |
(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, 2017. |
(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 2I. |
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.
| 23 |
|
Schedule of Investments(a)
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks—99.9% | ||||||||
Banks—3.4% | ||||||||
1,051,891 | People’s United Financial, Inc. | $ | 18,376,536 | |||||
375,850 | United Bankshares, Inc.(b) | 14,996,415 | ||||||
|
| |||||||
33,372,951 | ||||||||
|
| |||||||
Beverages—2.0% | ||||||||
453,403 | Coca-Cola Co. (The) | 19,564,340 | ||||||
|
| |||||||
Capital Markets—3.8% | ||||||||
616,371 | Invesco Ltd.(c) | 20,303,261 | ||||||
242,886 | T. Rowe Price Group, Inc. | 17,218,188 | ||||||
|
| |||||||
37,521,449 | ||||||||
|
| |||||||
Diversified Telecommunication Services—5.0% | ||||||||
630,196 | AT&T, Inc. | 24,974,668 | ||||||
528,985 | Verizon Communications, Inc. | 24,285,701 | ||||||
|
| |||||||
49,260,369 | ||||||||
|
| |||||||
Electric Utilities—8.9% | ||||||||
278,128 | Duke Energy Corp. | 22,945,560 | ||||||
485,571 | OGE Energy Corp. | 16,888,159 | ||||||
624,746 | PPL Corp. | 23,809,070 | ||||||
484,870 | Southern Co. (The) | 24,146,526 | ||||||
|
| |||||||
87,789,315 | ||||||||
|
| |||||||
Electrical Equipment—1.8% | ||||||||
301,562 | Emerson Electric Co. | 18,178,157 | ||||||
|
| |||||||
Energy Equipment & Services—2.1% | ||||||||
340,026 | Helmerich & Payne, Inc. | 20,619,177 | ||||||
|
| |||||||
Food & Staples Retailing—1.7% | ||||||||
226,672 | Wal-Mart Stores, Inc. | 17,041,201 | ||||||
|
| |||||||
Food Products—3.6% | ||||||||
960,757 | Flowers Foods, Inc. | 18,840,445 | ||||||
297,264 | General Mills, Inc. | 17,095,652 | ||||||
|
| |||||||
35,936,097 | ||||||||
|
| |||||||
Gas Utilities—1.8% | ||||||||
290,188 | Northwest Natural Gas Co. | 17,295,205 | ||||||
|
| |||||||
Health Care Providers & Services—1.6% | ||||||||
446,799 | Owens & Minor, Inc. | 15,481,585 | ||||||
|
| |||||||
Hotels, Restaurants & Leisure—3.4% | ||||||||
100,135 | Cracker Barrel Old Country Store, Inc.(b) | 16,040,626 | ||||||
128,058 | McDonald’s Corp. | 17,919,156 | ||||||
|
| |||||||
33,959,782 | ||||||||
|
| |||||||
Household Products—1.6% | ||||||||
184,128 | Procter & Gamble Co. (The) | 16,079,898 | ||||||
|
| |||||||
Insurance—5.8% | ||||||||
689,876 | AmTrust Financial Services, Inc.(b) | 11,072,510 | ||||||
411,792 | Mercury General Corp. | 25,321,090 | ||||||
997,148 | Old Republic International Corp. | 20,621,021 | ||||||
|
| |||||||
57,014,621 | ||||||||
|
| |||||||
IT Services—1.6% | ||||||||
98,773 | International Business Machines Corp. | 15,832,324 | ||||||
|
|
Number of Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Machinery—2.0% | ||||||||
188,001 | Caterpillar, Inc. | $ | 19,224,982 | |||||
|
| |||||||
Media—1.7% | ||||||||
290,836 | Meredith Corp. | 17,028,448 | ||||||
|
| |||||||
Metals & Mining—1.9% | ||||||||
278,414 | Compass Minerals International, Inc.(b) | 18,375,324 | ||||||
|
| |||||||
Multi-line Retail—2.2% | ||||||||
389,665 | Target Corp. | 21,762,790 | ||||||
|
| |||||||
Multi-Utilities—15.6% | ||||||||
487,078 | Avista Corp. | 19,648,726 | ||||||
778,978 | CenterPoint Energy, Inc. | 22,224,242 | ||||||
254,305 | Consolidated Edison, Inc. | 20,161,300 | ||||||
259,702 | Dominion Resources, Inc. | 20,108,726 | ||||||
585,784 | MDU Resources Group, Inc. | 15,757,590 | ||||||
326,733 | NorthWestern Corp. | 19,532,099 | ||||||
267,355 | SCANA Corp. | 17,728,310 | ||||||
308,607 | WEC Energy Group, Inc. | 18,676,896 | ||||||
|
| |||||||
153,837,889 | ||||||||
|
| |||||||
Oil, Gas & Consumable Fuels—9.3% | ||||||||
193,758 | Chevron Corp. | 20,673,979 | ||||||
258,717 | Exxon Mobil Corp. | 21,124,243 | ||||||
400,797 | Occidental Petroleum Corp. | 24,665,047 | ||||||
470,736 | ONEOK, Inc.(b) | 24,765,421 | ||||||
|
| |||||||
91,228,690 | ||||||||
|
| |||||||
Personal Products—1.9% | ||||||||
331,093 | Nu Skin Enterprises, Inc., Class A | 18,286,266 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment—3.7% | ||||||||
374,811 | Maxim Integrated Products, Inc. | 16,547,906 | ||||||
378,985 | QUALCOMM, Inc. | 20,366,654 | ||||||
|
| |||||||
36,914,560 | ||||||||
|
| |||||||
Specialty Retail—4.2% | ||||||||
851,636 | Gap, Inc. (The) | 22,312,863 | ||||||
357,438 | Williams-Sonoma, Inc. | 19,319,524 | ||||||
|
| |||||||
41,632,387 | ||||||||
|
| |||||||
Textiles, Apparel & Luxury Goods—1.8% | ||||||||
317,134 | VF Corp. | 17,325,030 | ||||||
|
| |||||||
Tobacco—7.5% | ||||||||
238,751 | Altria Group, Inc. | 17,137,547 | ||||||
264,999 | Universal Corp. | 19,464,177 | ||||||
1,695,409 | Vector Group Ltd.(b) | 36,824,283 | ||||||
|
| |||||||
73,426,007 | ||||||||
|
| |||||||
Total Common Stocks (Cost $937,432,489) | 983,988,844 | |||||||
|
| |||||||
Money Market Fund—0.2% | ||||||||
2,391,801 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $2,391,801) | 2,391,801 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $939,824,290)—100.1% | 986,380,645 | |||||||
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 24 |
|
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—3.0% | ||||||||
28,944,378 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $28,944,378) | $ | 28,944,378 | |||||
|
| |||||||
Total Investments (Cost $968,768,668)—103.1% | 1,015,325,023 | |||||||
Other assets less liabilities—(3.1)% | (30,599,819 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 984,725,204 | ||||||
|
|
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, 2017. |
(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, 2017. |
(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 2I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 25 |
|
Schedule of Investments
PowerShares International Dividend AchieversTM Portfolio (PID)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Australia—2.3% | ||||||||
710,861 | Westpac Banking Corp. ADR(a) | $ | 18,731,187 | |||||
|
| |||||||
Brazil—0.6% | ||||||||
200,238 | Ultrapar Participacoes SA ADR(a) | 4,441,279 | ||||||
|
| |||||||
Canada—30.8% | ||||||||
159,568 | Bank of Montreal(a) | 11,305,393 | ||||||
226,515 | Bank of Nova Scotia (The)(a) | 12,601,029 | ||||||
379,644 | BCE, Inc. | 17,300,377 | ||||||
140,830 | Brookfield Asset Management, Inc., Class A | 5,203,669 | ||||||
424,937 | Brookfield Infrastructure Partners LP(a) | 16,729,770 | ||||||
359,532 | Cae, Inc. | 5,490,054 | ||||||
163,896 | Canadian Imperial Bank of Commerce(a) | 13,247,714 | ||||||
81,510 | Canadian National Railway Co. | 5,892,358 | ||||||
299,575 | Canadian Natural Resources Ltd. | 9,547,455 | ||||||
327,794 | Enbridge, Inc. | 13,587,061 | ||||||
406,276 | Fortis, Inc. | 13,212,096 | ||||||
72,129 | Franco-Nevada Corp. | 4,913,427 | ||||||
167,635 | Gildan Activewear, Inc., Class A | 4,700,485 | ||||||
157,247 | Imperial Oil Ltd. | 4,571,170 | ||||||
188,402 | Magna International, Inc. | 7,869,552 | ||||||
146,367 | Methanex Corp. | 6,718,245 | ||||||
482,735 | Pembina Pipeline Corp.(a) | 15,389,592 | ||||||
204,298 | Ritchie Bros. Auctioneers, Inc. | 6,692,802 | ||||||
164,151 | Royal Bank of Canada | 11,241,060 | ||||||
722,511 | Shaw Communications, Inc., Class B | 15,324,458 | ||||||
308,295 | Suncor Energy, Inc. | 9,668,131 | ||||||
461,893 | TELUS Corp. | 15,371,799 | ||||||
217,550 | Toronto-Dominion Bank (The) | 10,244,430 | ||||||
278,747 | TransCanada Corp. | 12,945,011 | ||||||
|
| |||||||
249,767,138 | ||||||||
|
| |||||||
Chile—1.7% | ||||||||
192,698 | Banco de Chile ADR(a) | 14,118,982 | ||||||
|
| |||||||
Colombia—1.4% | ||||||||
291,797 | Bancolombia SA (Preference Shares) ADR | 11,523,064 | ||||||
|
| |||||||
Denmark—1.9% | ||||||||
391,395 | Novo Nordisk A/S, Class B ADR | 15,139,159 | ||||||
|
| |||||||
France—1.8% | ||||||||
309,456 | Sanofi ADR | 14,637,269 | ||||||
|
| |||||||
Germany—1.1% | ||||||||
90,206 | Fresenius Medical Care AG & Co. KGaA ADR(a) | 4,008,755 | ||||||
52,024 | SAP SE ADR(a) | 5,211,764 | ||||||
|
| |||||||
9,220,519 | ||||||||
|
| |||||||
Hong Kong—3.6% | ||||||||
4,122,550 | Seaspan Corp.(a) | 29,022,752 | ||||||
|
| |||||||
India—2.2% | ||||||||
88,845 | Axis Bank Ltd. GDR(b) | 3,487,166 | ||||||
28,498 | HDFC Bank Ltd. ADR | 2,268,726 | ||||||
567,061 | Infosys Ltd. ADR | 8,256,408 | ||||||
79,844 | Reliance Industries Ltd. GDR(b)(c) | 3,453,253 | ||||||
|
| |||||||
17,465,553 | ||||||||
|
|
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Israel—1.5% | ||||||||
383,794 | Teva Pharmaceutical Industries Ltd. ADR | $ | 12,120,214 | |||||
|
| |||||||
Mexico—2.4% | ||||||||
611,267 | America Movil SAB de CV, Series L ADR | 9,407,399 | ||||||
97,292 | Grupo Aeroportuario del Pacifico SAB de CV ADR(a) | 10,010,374 | ||||||
|
| |||||||
19,417,773 | ||||||||
|
| |||||||
Netherlands—0.5% | ||||||||
28,247 | ASML Holding NV | 3,724,367 | ||||||
|
| |||||||
Norway—2.0% | ||||||||
983,663 | Statoil ASA ADR(a) | 16,161,583 | ||||||
|
| |||||||
Russia—6.2% | ||||||||
363,109 | LUKOIL PJSC ADR | 18,033,809 | ||||||
2,638,898 | Mobile TeleSystems PJSC ADR | 27,233,427 | ||||||
43,814 | Novatek PJSC GDR(b) | 5,310,257 | ||||||
|
| |||||||
50,577,493 | ||||||||
|
| |||||||
South Korea—0.0% | ||||||||
218 | Samsung Electronics Co. Ltd. GDR(b) | 213,858 | ||||||
|
| |||||||
Sweden—3.0% | ||||||||
3,800,977 | Telefonaktiebolaget LM Ericsson, Class B ADR | 24,668,341 | ||||||
|
| |||||||
Switzerland—3.0% | ||||||||
510,854 | ABB Ltd. ADR(a) | 12,567,008 | ||||||
155,555 | Novartis AG ADR | 11,982,402 | ||||||
|
| |||||||
24,549,410 | ||||||||
|
| |||||||
United Kingdom—29.9% | ||||||||
721,925 | BP PLC ADR | 24,776,466 | ||||||
185,194 | British American Tobacco PLC ADR(a) | 12,600,600 | ||||||
794,945 | BT Group PLC ADR(a) | 15,827,355 | ||||||
80,462 | Diageo PLC ADR | 9,448,652 | ||||||
1,433,929 | Golar LNG Partners LP(a) | 32,736,599 | ||||||
767,158 | HSBC Holdings PLC ADR(a) | 31,583,895 | ||||||
136,855 | Intercontinental Hotels Group PLC ADR(a) | 7,224,575 | ||||||
279,214 | National Grid PLC ADR(a) | 18,112,612 | ||||||
139,114 | Pentair PLC | 8,974,244 | ||||||
300,250 | Prudential PLC ADR(a) | 13,328,097 | ||||||
510,437 | Relx NV ADR(a) | 9,836,121 | ||||||
438,628 | Relx PLC ADR | 8,987,488 | ||||||
232,137 | Smith & Nephew PLC ADR | 7,716,234 | ||||||
218,828 | Unilever NV(a) | 11,431,575 | ||||||
821,305 | Vodafone Group PLC ADR | 21,509,978 | ||||||
83,097 | WPP PLC ADR(a) | 8,899,689 | ||||||
|
| |||||||
242,994,180 | ||||||||
|
| |||||||
United States—4.1% | ||||||||
34,158 | Aon PLC | 4,093,495 | ||||||
19,602 | Broadcom Ltd. | 4,328,318 | ||||||
8,519 | Shire PLC ADR | 1,507,522 | ||||||
76,701 | STERIS PLC | 5,660,534 | ||||||
264,026 | Thomson Reuters Corp. | 11,994,701 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 26 |
|
PowerShares International Dividend AchieversTM Portfolio (PID) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
United States (continued) | ||||||||
40,284 | Willis Towers Watson PLC | $ | 5,342,464 | |||||
|
| |||||||
32,927,034 | ||||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $786,147,181)—100.0% | 811,421,155 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—14.6% | ||||||||
118,684,850 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $118,684,850) | 118,684,850 | ||||||
|
| |||||||
Total Investments (Cost $904,832,031)—114.6% | 930,106,005 | |||||||
Other assets less liabilities—(14.6)% | (118,326,025 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 811,779,980 | ||||||
|
|
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, 2017. |
(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, 2017 was $12,464,534, which represented 1.54% of the Fund’s Net Assets. |
(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, 2017. |
(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 2I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 27 |
|
Statements of Assets and Liabilities
April 30, 2017
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) | $ | 1,361,344,385 | $ | 313,232,770 | $ | 1,669,949,363 | $ | 963,685,583 | $ | 811,421,155 | ||||||||||
Affiliated investments, at value | 35,798,139 | 1,055,410 | 33,326,735 | 51,639,440 | 118,684,850 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total investments, at value | 1,397,142,524 | 314,288,180 | 1,703,276,098 | 1,015,325,023 | 930,106,005 | |||||||||||||||
Cash segregated as collateral | — | — | — | — | 682,907 | |||||||||||||||
Receivables: | ||||||||||||||||||||
Investments sold | 23,188,952 | 52,791 | — | 4,256,494 | — | |||||||||||||||
Shares sold | 7,876,876 | — | — | — | 3,017,800 | |||||||||||||||
Dividends | 337,194 | 591,532 | 4,744,810 | 2,133,915 | 2,066,939 | |||||||||||||||
Securities lending | 38,848 | 329 | 59,563 | 25,740 | 133,332 | |||||||||||||||
Foreign tax reclaims | — | — | — | — | 1,028,835 | |||||||||||||||
Other assets | 3,825 | 1,014 | 2,929 | 1,661 | 1,614 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Assets | 1,428,588,219 | 314,933,846 | 1,708,083,400 | 1,021,742,833 | 937,037,432 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Liabilities: | ||||||||||||||||||||
Due to custodian | 1,758 | 289,776 | 7,140,833 | 2,692,670 | 1,914,128 | |||||||||||||||
Payables: | ||||||||||||||||||||
Collateral upon return of securities loaned. | 33,704,628 | 457,845 | 26,528,490 | 28,944,378 | 118,684,850 | |||||||||||||||
Shares repurchased | 15,675,288 | — | — | 4,259,982 | — | |||||||||||||||
Investments purchased | 15,227,407 | — | — | — | 3,017,913 | |||||||||||||||
Collateral upon receipt of securities in-kind | — | — | — | — | 682,907 | |||||||||||||||
Accrued advisory fees | 560,160 | 103,097 | 684,467 | 343,306 | 263,301 | |||||||||||||||
Accrued trustees’ and officer’s fees | 64,501 | 28,096 | 96,912 | 32,980 | 60,824 | |||||||||||||||
Accrued expenses | 973,823 | 159,947 | 721,307 | 744,313 | 633,529 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Liabilities | 66,207,565 | 1,038,761 | 35,172,009 | 37,017,629 | 125,257,452 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets | $ | 1,362,380,654 | $ | 313,895,085 | $ | 1,672,911,391 | $ | 984,725,204 | $ | 811,779,980 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets Consist of: | ||||||||||||||||||||
Shares of beneficial interest | $ | 1,506,274,906 | $ | 262,378,179 | $ | 1,619,932,696 | $ | 1,003,463,165 | $ | 1,245,412,417 | ||||||||||
Undistributed net investment income | (60,301 | ) | 632,531 | (93,986 | ) | (32,008 | ) | 3,658,780 | ||||||||||||
Undistributed net realized gain (loss) | (262,400,856 | ) | (21,776,531 | ) | (15,634,656 | ) | (65,262,308 | ) | (462,564,598 | ) | ||||||||||
Net unrealized appreciation | 118,566,905 | 72,660,906 | 68,707,337 | 46,556,355 | 25,273,381 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets | $ | 1,362,380,654 | $ | 313,895,085 | $ | 1,672,911,391 | $ | 984,725,204 | $ | 811,779,980 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 26,100,000 | 13,100,000 | 88,650,000 | 57,900,000 | 53,800,000 | |||||||||||||||
Net asset value | $ | 52.20 | $ | 23.96 | $ | 18.87 | $ | 17.01 | $ | 15.09 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Market price | $ | 52.19 | $ | 23.99 | $ | 18.87 | $ | 17.02 | $ | 15.09 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Unaffiliated investments, at cost | $ | 1,242,896,882 | $ | 240,426,214 | $ | 1,601,242,026 | $ | 918,336,514 | $ | 786,147,181 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Affiliated investments, at cost | $ | 35,678,737 | $ | 1,201,060 | $ | 33,326,735 | $ | 50,432,154 | $ | 118,684,850 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total investments, at cost | $ | 1,278,575,619 | $ | 241,627,274 | $ | 1,634,568,761 | $ | 968,768,668 | $ | 904,832,031 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
(a) Includes securities on loan with an aggregate value of | $ | 32,368,453 | $ | 440,496 | $ | 25,868,963 | $ | 27,829,795 | $ | 115,655,114 | ||||||||||
|
|
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 28 |
|
For the year ended April 30, 2017
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 | $ | 23,663,783 | $ | 8,098,547 | $ | 104,001,676 | $ | 37,040,627 | $ | 25,585,226 | ||||||||||
Affiliated dividend income | 32,485 | 20,680 | 27,386 | 674,228 | 2,149 | |||||||||||||||
Securities lending income | 228,597 | 564 | 811,818 | 377,726 | 2,115,917 | |||||||||||||||
Foreign withholding tax | — | — | — | — | (2,165,001 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Income | 23,924,865 | 8,119,791 | 104,840,880 | 38,092,581 | 25,538,291 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Expenses: | ||||||||||||||||||||
Advisory fees | 7,115,156 | 1,191,038 | 8,580,653 | 4,043,807 | 2,861,414 | |||||||||||||||
Sub-licensing fees | 1,423,033 | 297,760 | 1,621,739 | 1,010,952 | 715,354 | |||||||||||||||
Accounting & administration fees | 257,095 | 55,406 | 318,476 | 192,056 | 130,538 | |||||||||||||||
Custodian & transfer agent fees | 59,489 | 20,007 | 50,177 | 27,517 | 151,147 | |||||||||||||||
Trustees’ and officer’s fees | 31,560 | 11,546 | 34,549 | 20,887 | 18,463 | |||||||||||||||
Other expenses | 136,666 | 68,674 | 178,913 | 121,313 | 140,881 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Expenses | 9,022,999 | 1,644,431 | 10,784,507 | 5,416,532 | 4,017,797 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Less: Waivers | (2,244 | ) | (430 | ) | �� | (10,870 | ) | (1,256 | ) | (1,089 | ) | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Expenses | 9,020,755 | 1,644,001 | 10,773,637 | 5,415,276 | 4,016,708 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Investment Income | 14,904,110 | 6,475,790 | 94,067,243 | 32,677,305 | 21,521,583 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Realized and Unrealized Gain (Loss): | ||||||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||||||
Investment securities | (42,037,115 | ) | (338,474 | ) | (2,171,626 | ) | (952,070 | ) | (108,859,704 | ) | ||||||||||
In-kind redemptions | 178,034,517 | 9,315,233 | 32,361,833 | 143,428,330 | 19,762,304 | |||||||||||||||
Foreign currencies | — | — | — | — | (7,390 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized gain (loss) | 135,997,402 | 8,976,759 | 30,190,207 | 142,476,260 | (89,104,790 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Change in net unrealized appreciation (depreciation) on: | ||||||||||||||||||||
Investment securities | 50,609,710 | 20,314,745 | (28,372,096 | ) | (12,049,124 | ) | 117,088,063 | |||||||||||||
Foreign currencies | — | — | — | — | (1,236 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net change in unrealized appreciation (depreciation) | 50,609,710 | 20,314,745 | (28,372,096 | ) | (12,049,124 | ) | 117,086,827 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized and unrealized gain | 186,607,112 | 29,291,504 | 1,818,111 | 130,427,136 | 27,982,037 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net increase in net assets resulting from operations | $ | 201,511,222 | $ | 35,767,294 | $ | 95,885,354 | $ | 163,104,441 | $ | 49,503,620 | ||||||||||
|
|
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 29 |
|
Statements of Changes in Net Assets
For the years ended April 30, 2017 and 2016
PowerShares BuyBack AchieversTM Portfolio (PKW) | PowerShares Dividend AchieversTM Portfolio (PFM) | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 14,904,110 | $ | 28,501,250 | $ | 6,475,790 | $ | 7,046,193 | ||||||||
Net realized gain (loss) | 135,997,402 | (5,228,193 | ) | 8,976,759 | 14,356,466 | |||||||||||
Net change in unrealized appreciation (depreciation) | 50,609,710 | (194,908,268 | ) | 20,314,745 | (13,429,976 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 201,511,222 | (171,635,211 | ) | 35,767,294 | 7,972,683 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net investment income | (20,170,488 | ) | (29,971,633 | ) | (6,990,329 | ) | (7,191,272 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shareholder Transactions: | ||||||||||||||||
Proceeds from shares sold | 688,393,424 | 552,688,479 | 29,541,769 | 13,765,872 | ||||||||||||
Value of shares repurchased | (1,146,787,729 | ) | (1,682,571,530 | ) | (31,476,117 | ) | (71,313,646 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from shares transactions | (458,394,305 | ) | (1,129,883,051 | ) | (1,934,348 | ) | (57,547,774 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Increase (Decrease) in Net Assets | (277,053,571 | ) | (1,331,489,895 | ) | 26,842,617 | (56,766,363 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 1,639,434,225 | 2,970,924,120 | 287,052,468 | 343,818,831 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 1,362,380,654 | $ | 1,639,434,225 | $ | 313,895,085 | $ | 287,052,468 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income at end of year | $ | (60,301 | ) | $ | 3,331,080 | $ | 632,531 | $ | 1,149,675 | |||||||
|
|
|
|
|
|
|
| |||||||||
Changes in Shares Outstanding: | ||||||||||||||||
Shares sold | 13,550,000 | 12,800,000 | 1,250,000 | 650,000 | ||||||||||||
Shares repurchased | (23,350,000 | ) | (37,800,000 | ) | (1,350,000 | ) | (3,500,000 | ) | ||||||||
Shares outstanding, beginning of year | 35,900,000 | 60,900,000 | 13,200,000 | 16,050,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding, end of year | 26,100,000 | 35,900,000 | 13,100,000 | 13,200,000 | ||||||||||||
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 30 |
|
PowerShares Financial Preferred Portfolio (PGF) | PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY) | PowerShares International Dividend AchieversTM Portfolio (PID) | ||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
$ | 94,067,243 | $ | 87,221,748 | $ | 32,677,305 | $ | 20,186,708 | $ | 21,521,583 | $ | 38,185,806 | |||||||||||
30,190,207 | 30,926,030 | 142,476,260 | 37,918,749 | (89,104,790 | ) | (123,252,756 | ) | |||||||||||||||
(28,372,096 | ) | (9,113,684 | ) | (12,049,124 | ) | 25,751,399 | 117,086,827 | (202,703,610 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
95,885,354 | 109,034,094 | 163,104,441 | 83,856,856 | 49,503,620 | (287,770,560 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(94,148,860 | ) | (87,907,150 | ) | (32,938,791 | ) | (20,340,136 | ) | (28,035,512 | ) | (39,292,920 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
333,269,773 | 404,047,155 | 799,352,925 | 505,920,545 | 199,878,965 | 12,037,214 | |||||||||||||||||
(298,473,329 | ) | (260,512,094 | ) | (682,576,819 | ) | (368,978,245 | ) | (111,250,849 | ) | (555,136,253 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
34,796,444 | 143,535,061 | 116,776,106 | 136,942,300 | 88,628,116 | (543,099,039 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
36,532,938 | 164,662,005 | 246,941,756 | 200,459,020 | 110,096,224 | (870,162,519 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
�� | ||||||||||||||||||||||
1,636,378,453 | 1,471,716,448 | 737,783,448 | 537,324,428 | 701,683,756 | 1,571,846,275 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 1,672,911,391 | $ | 1,636,378,453 | $ | 984,725,204 | $ | 737,783,448 | $ | 811,779,980 | $ | 701,683,756 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | (93,986 | ) | $ | (88,742 | ) | $ | (32,008 | ) | $ | 60,731 | $ | 3,658,780 | $ | 8,062,597 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
17,650,000 | 21,700,000 | 49,500,000 | 36,700,000 | 13,650,000 | 700,000 | |||||||||||||||||
(16,050,000 | ) | (14,400,000 | ) | (41,100,000 | ) | (27,150,000 | ) | (7,700,000 | ) | (38,200,000 | ) | |||||||||||
87,050,000 | 79,750,000 | 49,500,000 | 39,950,000 | 47,850,000 | 85,350,000 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
88,650,000 | 87,050,000 | 57,900,000 | 49,500,000 | 53,800,000 | 47,850,000 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| 31 |
|
PowerShares BuyBack AchieversTM Portfolio (PKW)
Year Ended April 30, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 45.67 | $ | 48.78 | $ | 43.42 | $ | 34.60 | $ | 29.40 | ||||||||||
Net investment income(a) | 0.51 | 0.56 | 0.51 | 0.39 | 0.37 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 6.70 | (3.08 | ) | 5.38 | 8.70 | 5.18 | ||||||||||||||
Total from investment operations | 7.21 | (2.52 | ) | 5.89 | 9.09 | 5.55 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.68 | ) | (0.59 | ) | (0.53 | ) | (0.27 | ) | (0.35 | ) | ||||||||||
Net asset value at end of year | $ | 52.20 | $ | 45.67 | $ | 48.78 | $ | 43.42 | $ | 34.60 | ||||||||||
Market price at end of year(b) | $ | 52.19 | $ | 45.65 | $ | 48.77 | $ | 43.42 | $ | 34.61 | ||||||||||
Net Asset Value Total Return(c) | 15.92 | % | (5.18 | )% | 13.63 | % | 26.36 | % | 19.08 | % | ||||||||||
Market Price Total Return(c) | 15.96 | % | (5.20 | )% | 13.61 | % | 26.32 | % | 19.11 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 1,362,381 | $ | 1,639,434 | $ | 2,970,924 | $ | 2,905,121 | $ | 418,621 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.63 | % | 0.63 | %(d) | 0.63 | %(d) | 0.66 | %(d) | 0.70 | % | ||||||||||
Expenses, prior to Waivers | 0.63 | % | 0.63 | %(d) | 0.63 | %(d) | 0.66 | %(d) | 0.70 | % | ||||||||||
Net investment income, after Waivers | 1.05 | % | 1.21 | % | 1.09 | % | 0.95 | % | 1.21 | % | ||||||||||
Portfolio turnover rate(e) | 57 | % | 53 | % | 68 | % | 92 | % | 80 | % |
(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, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 21.75 | $ | 21.42 | $ | 20.50 | $ | 18.33 | $ | 15.81 | ||||||||||
Net investment income(a) | 0.50 | 0.49 | 0.44 | 0.39 | 0.38 | |||||||||||||||
Net realized and unrealized gain on investments | 2.25 | 0.33 | 0.90 | 2.16 | 2.52 | |||||||||||||||
Total from investment operations | 2.75 | 0.82 | 1.34 | 2.55 | 2.90 | |||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.54 | ) | (0.49 | ) | (0.42 | ) | (0.38 | ) | (0.38 | ) | ||||||||||
Net asset value at end of year | $ | 23.96 | $ | 21.75 | $ | 21.42 | $ | 20.50 | $ | 18.33 | ||||||||||
Market price at end of year(b) | $ | 23.99 | $ | 21.75 | $ | 21.40 | $ | 20.50 | $ | 18.32 | ||||||||||
Net Asset Value Total Return(c) | 12.80 | % | 3.98 | % | 6.54 | % | 14.11 | % | 18.67 | % | ||||||||||
Market Price Total Return(c) | 12.94 | % | 4.08 | % | 6.44 | % | 14.17 | % | 18.68 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 313,895 | $ | 287,052 | $ | 343,819 | $ | 351,557 | $ | 296,928 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.55 | % | 0.55 | % | 0.55 | % | 0.55 | % | 0.58 | % | ||||||||||
Expenses, prior to Waivers | 0.55 | % | 0.55 | % | 0.55 | % | 0.55 | % | 0.58 | % | ||||||||||
Net investment income, after Waivers | 2.17 | % | 2.35 | % | 2.07 | % | 2.05 | % | 2.28 | % | ||||||||||
Portfolio turnover rate(d) | 6 | % | 7 | % | 20 | % | 21 | % | 18 | % |
(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.
| 32 |
|
Financial Highlights (continued)
PowerShares Financial Preferred Portfolio (PGF)
Year Ended April 30, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 18.80 | $ | 18.45 | $ | 17.99 | $ | 18.67 | $ | 17.79 | ||||||||||
Net investment income(a) | 1.03 | 1.06 | 1.07 | 1.10 | 1.18 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.07 | 0.36 | 0.45 | (0.68 | ) | 0.85 | ||||||||||||||
Total from investment operations | 1.10 | 1.42 | 1.52 | 0.42 | 2.03 | |||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (1.03 | ) | (1.07 | ) | (1.06 | ) | (1.10 | ) | (1.15 | ) | ||||||||||
Net asset value at end of year | $ | 18.87 | $ | 18.80 | $ | 18.45 | $ | 17.99 | $ | 18.67 | ||||||||||
Market price at end of year(b) | $ | 18.87 | $ | 18.83 | $ | 18.46 | $ | 17.98 | $ | 18.70 | ||||||||||
Net Asset Value Total Return(c) | 6.06 | % | 8.01 | % | 8.73 | % | 2.63 | % | 11.78 | % | ||||||||||
Market Price Total Return(c) | 5.89 | % | 8.12 | % | 8.85 | % | 2.41 | % | 11.71 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 1,672,911 | $ | 1,636,378 | $ | 1,471,716 | $ | 1,435,558 | $ | 1,891,452 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.64 | % | ||||||||||
Expenses, prior to Waivers | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.64 | % | ||||||||||
Net investment income, after Waivers | 5.48 | % | 5.76 | % | 5.87 | % | 6.28 | % | 6.47 | % | ||||||||||
Portfolio turnover rate(d) | 8 | % | 13 | % | 9 | % | 30 | % | 18 | % |
(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, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 14.90 | $ | 13.45 | $ | 12.32 | $ | 10.77 | $ | 9.36 | ||||||||||
Net investment income(a) | 0.52 | 0.48 | 0.43 | 0.42 | 0.42 | |||||||||||||||
Net realized and unrealized gain on investments | 2.12 | 1.46 | 1.13 | 1.54 | 1.41 | |||||||||||||||
Total from investment operations | 2.64 | 1.94 | 1.56 | 1.96 | 1.83 | |||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.53 | ) | (0.49 | ) | (0.43 | ) | (0.41 | ) | (0.42 | ) | ||||||||||
Net asset value at end of year | $ | 17.01 | $ | 14.90 | $ | 13.45 | $ | 12.32 | $ | 10.77 | ||||||||||
Market price at end of year(b) | $ | 17.02 | $ | 14.91 | $ | 13.45 | $ | 12.32 | $ | 10.76 | ||||||||||
Net Asset Value Total Return(c) | 17.95 | % | 14.92 | % | 12.89 | % | 18.61 | % | 20.16 | % | ||||||||||
Market Price Total Return(c) | 17.94 | % | 14.99 | % | 12.89 | % | 18.72 | % | 20.05 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 984,725 | $ | 737,783 | $ | 537,324 | $ | 393,103 | $ | 322,476 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.54 | % | 0.54 | % | 0.54 | % | 0.55 | % | 0.57 | % | ||||||||||
Expenses, prior to Waivers | 0.54 | % | 0.54 | % | 0.54 | % | 0.55 | % | 0.57 | % | ||||||||||
Net investment income, after Waivers | 3.23 | % | 3.62 | % | 3.29 | % | 3.70 | % | 4.31 | % | ||||||||||
Portfolio turnover rate(d) | 49 | % | 59 | % | 45 | % | 51 | % | 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) | 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.
| 33 |
|
Financial Highlights (continued)
PowerShares International Dividend AchieversTM Portfolio (PID)
Year Ended April 30, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 14.66 | $ | 18.42 | $ | 18.56 | $ | 17.27 | $ | 15.35 | ||||||||||
Net investment income(a) | 0.44 | 0.56 | 0.51 | 0.67 | (b) | 0.40 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.56 | (3.78 | ) | (0.17 | ) | 1.26 | 1.93 | |||||||||||||
Total from investment operations | 1.00 | (3.22 | ) | 0.34 | 1.93 | 2.33 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.57 | ) | (0.54 | ) | (0.48 | ) | (0.64 | ) | (0.41 | ) | ||||||||||
Net asset value at end of year | $ | 15.09 | $ | 14.66 | $ | 18.42 | $ | 18.56 | $ | 17.27 | ||||||||||
Market price at end of year(c) | $ | 15.09 | $ | 14.65 | $ | 18.43 | $ | 18.58 | $ | 17.31 | ||||||||||
Net Asset Value Total Return(d) | 7.12 | % | (17.53 | )% | 1.83 | % | 11.50 | % | 15.63 | % | ||||||||||
Market Price Total Return(d) | 7.19 | % | (17.63 | )% | 1.77 | % | 11.35 | % | 15.75 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 811,780 | $ | 701,684 | $ | 1,571,846 | $ | 1,160,654 | $ | 877,341 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.56 | % | 0.58 | % | 0.55 | % | 0.54 | % | 0.56 | % | ||||||||||
Expenses, prior to Waivers | 0.56 | % | 0.58 | % | 0.55 | % | 0.54 | % | 0.56 | % | ||||||||||
Net investment income, after Waivers | 3.01 | % | 3.62 | % | 2.77 | % | 3.82 | %(b) | 2.57 | % | ||||||||||
Portfolio turnover rate(e) | 61 | % | 61 | % | 66 | % | 49 | % | 46 | % |
(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.
| 34 |
|
PowerShares Exchange-Traded Fund Trust
April 30, 2017
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, 2017, 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 The NASDAQ Stock Market LLC, except for Shares of Financial Preferred Portfolio, which is listed and traded on NYSE Arca, Inc. Prior to December 7, 2016, Shares of BuyBack AchieversTM Portfolio, Dividend AchieversTM Portfolio, High Yield Equity Dividend AchieversTM Portfolio and International Dividend AchieversTM Portfolio were 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 and 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 following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.
Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services—Investment Companies.
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 Mid-Capitalization Company Risk. Investing in securities of small- and mid-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 mid-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.
Consumer Discretionary Sector Risk. At times, BuyBack AchieversTM Portfolio has concentrated its investments in the consumer discretionary sector. Companies engaged in the consumer discretionary sector are affected by fluctuations in supply and demand and changes in consumer preferences. Changes in consumer spending as a result of world events, political and economic conditions, commodity price volatility, changes in exchange rates, imposition of import controls, increased competition, depletion of resources and labor relations also may adversely affect these companies.
Financial Sector Risk. For Financial Preferred Portfolio and International Dividend AchieversTM Portfolio, the market value of securities of issuers in the financial sector can be affected by factors such as adverse regulatory or economic occurrences affecting the financial sector, availability of credit, fluctuations in asset values, unstable interest rates, increased competition, continuing consolidations and development of new products and structures. Furthermore, increased government involvement in financial institutions, including measures such as taking ownership positions in such institutions, could result in a dilution in the value of the shares held by shareholders in such institutions.
Variable- and Floating-Rate Securities Risk. Financial Preferred Portfolio’s investments in variable- and floating-rate instruments are subject to credit risk and default risk, which could impair their value. Variable- and floating-rate securities also may be subject to liquidity risk, meaning that there may be limitations on the Fund’s ability to sell the securities at any given time. Securities with floating or variable interest rates may decline in value if their coupon rates do not reset as high, or as quickly, as comparable market interest rates, and generally carry lower yields than fixed notes of the same maturity. Due to these securities’ variable- or floating-rate features, there can be no guarantee that they will pay a certain level of a dividend, and such securities generally will pay lower levels of income in a falling interest rate environment.
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.
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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.
ADR and GDR Risk. International Dividend AchieversTM Portfolio may invest in American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”). ADRs are certificates that evidence ownership of shares of a foreign issuer and are alternatives to purchasing directly underlying foreign securities in their national markets and currencies. GDRs are certificates issued by an international bank that generally are traded and denominated in the currencies of countries other than the home country of the issuer of the underlying shares. ADRs and GDRs may be subject to certain of the risks associated with direct investments in the securities of foreign companies, such as currency, political, economic and market risks. Moreover, ADRs and GDRs may not track the price of the underlying foreign securities on which they are based, and their value may change materially at times when U.S. markets are not open for trading.
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 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 accounting principles generally accepted in the United States of America (“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.
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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”), any Trustee who is not an affiliate of the Adviser or Distributor (or any of their affiliates) and who is otherwise an “interested person” of the Trust under the 1940 Act (an “Unaffiliated Trustee”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees and any Unaffiliated Trustee, 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. Accounting Estimates
The preparation of the financial statements in accordance with 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.
I. Securities Lending
During the fiscal year ended April 30, 2017, each Fund 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 generally 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
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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, 2018. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2018. 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, 2019, 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, 2017, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:
BuyBack AchieversTM Portfolio | $ | 2,244 | ||
Dividend AchieversTM Portfolio | 430 | |||
Financial Preferred Portfolio | 10,870 | |||
High Yield Equity Dividend AchieversTM Portfolio | 1,256 | |||
International Dividend AchieversTM Portfolio | 1,089 |
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, 2017, 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.
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The Adviser has entered into a licensing agreement for each Fund with the following entities (each, a “Licensor”):
Fund | Licensor | |
BuyBack AchieversTM Portfolio | Nasdaq, Inc. | |
Dividend AchieversTM Portfolio | Nasdaq, Inc. | |
Financial Preferred Portfolio | Wells Fargo & Company | |
High Yield Equity Dividend AchieversTM Portfolio | Nasdaq, Inc. | |
International Dividend AchieversTM Portfolio | Nasdaq, 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 tables below show certain Funds’ transactions in, and earnings from, investments in affiliates for the fiscal year ended April 30, 2017.
BuyBack AchieversTM Portfolio
Value April 30, 2016 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain | Value April 30, 2017 | Dividend Income | ||||||||||||||||||||||
Invesco Mortgage Capital, Inc. REIT | $ | — | $ | 1,060,094 | $ | (41,099 | ) | $ | 119,402 | $ | 2,112 | $ | 1,140,509 | $ | 28,083 |
Dividend AchieversTM Portfolio
Value April 30, 2016 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain (Loss) | Value April 30, 2017 | Dividend Income | ||||||||||||||||||||||
Invesco Ltd. | $ | 558,707 | $ | 65,269 | $ | (58,971 | ) | $ | 46,340 | $ | (13,780 | ) | $ | 597,565 | $ | 19,853 |
High Yield Equity Dividend AchieversTM Portfolio
Value April 30, 2016 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain | Value April 30, 2017 | Dividend Income | ||||||||||||||||||||||
Invesco Ltd. | $ | 14,243,668 | $ | 17,106,196 | $ | (12,311,055 | ) | $ | 1,221,583 | $ | 42,869 | $ | 20,303,261 | $ | 671,513 |
The 1940 Act defines “affiliated person” to include an issuer 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, 2017.
International Dividend AchieversTM Portfolio
Value April 30, 2016 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain (Loss) | Value April 30, 2017 | Dividend Income | ||||||||||||||||||||||
Teekay Offshore Partners LP* | $ | 47,785,546 | $ | 11,240,245 | $ | (52,664,729 | ) | $ | 40,956,179 | $ | (47,317,241 | ) | $— | $ | 417,034 |
* | At April 30, 2017, 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
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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, 2017, 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.
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, 2017 and 2016:
2017 | 2016 | |||||||
Ordinary Income | Ordinary Income | |||||||
BuyBack AchieversTM Portfolio | $ | 20,170,488 | $ | 29,971,633 | ||||
Dividend AchieversTM Portfolio | 6,990,329 | 7,191,272 | ||||||
Financial Preferred Portfolio | 94,148,860 | 87,907,150 | ||||||
High Yield Equity Dividend AchieversTM Portfolio | 32,938,791 | 20,340,136 | ||||||
International Dividend AchieversTM Portfolio | 28,035,512 | 39,292,920 |
Tax Components of Net Assets at Fiscal Year-End:
Undistributed Ordinary Income | Temporary Book/Tax Differences | Net Unrealized Appreciation— Investment Securities | Net Unrealized Appreciation (Depreciation)— Other Investments | Capital Loss Carryforwards | Post-October Capital Loss Deferrals* | Shares of Beneficial Interest | Total Net Assets | |||||||||||||||||||||||||
BuyBack AchieversTM Portfolio | $ | — | $ | (60,301 | ) | $ | 108,182,605 | $ | — | $ | (221,349,322 | ) | $ | (30,667,234 | ) | $ | 1,506,274,906 | $ | 1,362,380,654 | |||||||||||||
Dividend AchieversTM Portfolio | 659,615 | (27,084 | ) | 69,355,047 | — | (18,406,925 | ) | (63,747 | ) | 262,378,179 | 313,895,085 | |||||||||||||||||||||
Financial Preferred Portfolio | — | (93,986 | ) | 65,560,675 | — | (11,280,982 | ) | (1,207,012 | ) | 1,619,932,696 | 1,672,911,391 | |||||||||||||||||||||
High Yield Equity Dividend AchieversTM Portfolio | — | (32,008 | ) | 37,339,844 | — | (56,045,797 | ) | — | 1,003,463,165 | 984,725,204 | ||||||||||||||||||||||
International Dividend AchieversTM Portfolio | 4,879,705 | (58,090 | ) | 8,508,476 | (593 | ) | (424,511,766 | ) | (22,450,169 | ) | 1,245,412,417 | 811,779,980 |
* | 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.
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The following table presents available capital loss carryforwards and expiration dates for each Fund as of April 30, 2017:
Post-effective/no expiration | ||||||||||||||||||||||||
2018 | 2019 | Short-Term | Long-Term | Total* | Expired | |||||||||||||||||||
BuyBack AchieversTM Portfolio | $ | 12,142,749 | $ | 2,107,645 | $ | 171,205,751 | $ | 35,893,177 | $ | 221,349,322 | $ | 800,254 | ||||||||||||
Dividend AchieversTM Portfolio | 14,632,363 | 2,339,194 | 59,254 | 1,376,114 | 18,406,925 | 1,008,304 | ||||||||||||||||||
Financial Preferred Portfolio | 7,354,935 | — | 1,178,343 | 2,747,704 | 11,280,982 | 9,034,558 | ||||||||||||||||||
High Yield Equity Dividend AchieversTM Portfolio | 44,815,128 | 2,187,574 | 334,066 | 8,709,029 | 56,045,797 | 81,487,358 | ||||||||||||||||||
International Dividend AchieversTM Portfolio | 145,514,837 | 11,745,409 | 148,412,554 | 118,838,966 | 424,511,766 | 59,472,841 |
* | 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, 2017, 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 | $ | 815,229,079 | $ | 821,890,698 | ||||
Dividend AchieversTM Portfolio | 18,361,972 | 18,592,660 | ||||||
Financial Preferred Portfolio | 160,984,285 | 137,002,771 | ||||||
High Yield Equity Dividend AchieversTM Portfolio | 491,308,827 | 488,191,427 | ||||||
International Dividend AchieversTM Portfolio | 440,251,574 | 443,581,070 |
For the fiscal year ended April 30, 2017, in-kind transactions associated with creations and redemptions were as follows:
Cost of Securities Received | Value of Securities Delivered | |||||||
BuyBack AchieversTM Portfolio | $ | 688,604,297 | $ | 1,142,814,683 | ||||
Dividend AchieversTM Portfolio | 29,474,597 | 31,225,485 | ||||||
Financial Preferred Portfolio | 305,770,453 | 295,328,256 | ||||||
High Yield Equity Dividend AchieversTM Portfolio | 794,712,560 | 681,864,581 | ||||||
International Dividend AchieversTM Portfolio | 199,808,377 | 111,623,323 |
Gains (losses) on in-kind transactions are generally not considered taxable gains (losses) for federal income tax purposes.
At April 30, 2017, 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 | Cost | |||||||||||||
BuyBack AchieversTM Portfolio | $ | 147,783,798 | $ | (39,601,193 | ) | $ | 108,182,605 | $ | 1,288,959,919 | |||||||
Dividend AchieversTM Portfolio | 74,839,992 | (5,484,945 | ) | 69,355,047 | 244,933,133 | |||||||||||
Financial Preferred Portfolio | 72,959,781 | (7,399,106 | ) | 65,560,675 | 1,637,715,423 | |||||||||||
High Yield Equity Dividend AchieversTM Portfolio | 55,939,943 | (18,600,099 | ) | 37,339,844 | 977,985,179 | |||||||||||
International Dividend AchieversTM Portfolio | 51,764,466 | (43,255,990 | ) | 8,508,476 | 921,597,529 |
Note 8. Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of in-kind transactions and expired capital loss carryforwards, 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, 2017, the reclassifications were as follows:
Undistributed Net Investment Income | Undistributed Net Realized Gain (Loss) | Shares of Beneficial Interest | ||||||||||
BuyBack AchieversTM Portfolio | $ | 1,874,997 | $ | (133,998,971 | ) | $ | 132,123,974 | |||||
Dividend AchieversTM Portfolio | (2,605 | ) | (7,792,860 | ) | 7,795,465 | |||||||
Financial Preferred Portfolio | 76,373 | (19,907,823 | ) | 19,831,450 | ||||||||
High Yield Equity Dividend AchieversTM Portfolio | 168,747 | (50,207,085 | ) | 50,038,338 | ||||||||
International Dividend AchieversTM Portfolio | 2,110,112 | 41,476,784 | (43,586,896 | ) |
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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, any Unaffiliated Trustee, 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, each Independent Trustee or Unaffiliated 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.
Certain transaction fees may be charged by the Funds for creations and redemptions, which are treated as increases in capital.
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 and Unaffiliated Trustee is also indemnified against certain liabilities arising out of the performance of his duties to the Trust pursuant to an Indemnification Agreement between such 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 of PowerShares Exchange-Traded Fund Trust and Shareholders of PowerShares BuyBack Achievers™ Portfolio, PowerShares Dividend Achievers™ Portfolio, PowerShares Financial Preferred Portfolio, PowerShares High Yield Equity Dividend Achievers™ Portfolio and PowerShares International Dividend Achievers™ Portfolio:
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 Achievers™ Portfolio, PowerShares Dividend Achievers™ Portfolio, PowerShares Financial Preferred Portfolio, PowerShares High Yield Equity Dividend Achievers™ Portfolio and PowerShares International Dividend Achievers™ Portfolio (each an individual portfolio of PowerShares Exchange-Traded Fund Trust, hereafter referred to as the “Funds”) as of April 30, 2017, 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 as of April 30, 2017 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Chicago, IL
June 23, 2017
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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, 2017.
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, 2016 | Ending Account Value April 30, 2017 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period(1) | |||||||||||||
PowerShares BuyBack AchieversTM Portfolio (PKW) | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,121.10 | 0.63 | % | $ | 3.31 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.67 | 0.63 | 3.16 | ||||||||||||
PowerShares Dividend AchieversTM Portfolio (PFM) | ||||||||||||||||
Actual | 1,000.00 | 1,094.30 | 0.55 | 2.86 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.07 | 0.55 | 2.76 | ||||||||||||
PowerShares Financial Preferred Portfolio (PGF) | ||||||||||||||||
Actual | 1,000.00 | 1,030.40 | 0.63 | 3.17 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.67 | 0.63 | 3.16 | ||||||||||||
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY) | ||||||||||||||||
Actual | 1,000.00 | 1,113.80 | 0.54 | 2.83 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.12 | 0.54 | 2.71 | ||||||||||||
PowerShares International Dividend AchieversTM Portfolio (PID) | ||||||||||||||||
Actual | 1,000.00 | 1,071.00 | 0.54 | 2.77 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.12 | 0.54 | 2.71 |
(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, 2017. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 181/365. 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, 2017:
Qualified Dividend Income* | Dividends-Received Deduction* | |||||||||
PowerShares BuyBack AchieversTM Portfolio | 100 | % | 100 | % | ||||||
PowerShares Dividend AchieversTM Portfolio | 100 | % | 100 | % | ||||||
PowerShares Financial Preferred Portfolio | 100 | % | 76 | % | ||||||
PowerShares High Yield Equity Dividend AchieversTM Portfolio | 100 | % | 100 | % | ||||||
PowerShares International Dividend AchieversTM Portfolio | 82 | % | 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 | $ | 21,364,957 | $ | 1,712,193 |
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The Independent Trustees 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 (as defined below) overseen by each Independent Trustee and the other directorships, if any, held by an Independent Trustee are shown below.
The information is current as of April 30, 2017.
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). | 135 | 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. | 135 | 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; 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). | 135 | 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- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 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). | 135 | 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). | 135 | 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); President and Chief Executive Officer, Stone Pillar Investments, Ltd. (2016-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). | 135 | 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- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser. |
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Trustees and Officers (continued)
The Unaffiliated Trustee, his term of office and length of time served, his principal business occupations during at least the past five years, the number of portfolios in the Fund Complex (as defined below) overseen by the Unaffiliated Trustee and the other directorships, if any, held by the Unaffiliated Trustee, are shown below.
The information is current as of April 30, 2017.
Name, Address and Year of Birth of Unaffiliated Trustee | 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 Unaffiliated Trustee | Other Directorships Held by Unaffiliated Trustee 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). | 135 | None |
* | This is the date the Unaffiliated Trustee began serving the Trust. The Unaffiliated Trustee serves an indefinite term, until his successor is elected. |
** | Effective May 18, 2016, Mr. Nussbaum became an Unaffiliated Trustee. |
*** | Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser. |
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Trustees and Officers (continued)
The Interested Trustee 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 (as defined below) overseen by the Interested Trustees and the other directorships, if any, held by the Interested Trustee are shown below.
The information is current as of April 30, 2017.
Name, Address and Year of Birth of Interested Trustee | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex** Overseen by Interested Trustee | Other Directorships Held by Interested Trustee 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 Holding Company (US), Inc., Invesco Finance, Inc., Invesco Group Services, Inc., Invesco North American Holdings, Inc. and INVESCO Asset Management (Bermuda) Ltd.; Executive Vice President, Invesco Investments (Bermuda) Ltd., Manager, Horizon Flight Works LLC; Director and Secretary, Invesco Services (Bahamas) Private Limited; formerly, Director and Chairman, INVESCO Funds Group, Inc., Senior Vice President, Secretary and General Counsel, Invesco Advisers, Inc. (2003-2006); Director, Invesco Investments (Bermuda) Ltd. (2008-2016); 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. | 135 | None |
* | This is the date the Interested Trustee began serving the Trust. The Interested Trustee serves an indefinite term, until his successor is elected. |
** | Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 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 and Principal 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). | |||
Adam Henkel—1980 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chief Compliance Officer | Since 2017 | Chief Compliance Officer of Invesco PowerShares Capital Management LLC (2017-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 and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2017-Present); formerly, Senior Counsel, Invesco, Ltd. (2013-2017); and Assistant Vice President, U.S. Bancorp Fund Services, LLC (2010-2013). | |||
Steven M. Hill—1964 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Vice President and Treasurer | Since 2012 | 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). |
* | This is the date the Officer 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 and Principal Executive Officer, The Invesco Funds (2016-Present); Treasurer, The Invesco Funds (2008-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 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); Manager and Assistant Secretary, Invesco Indexing LLC (2017-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.) (2011-Present); 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 date the Officer 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 11, 2017, 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 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 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, (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 the Funds.
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. (“Invesco”), 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, 2016, 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 Invesco’s Global Performance Measurement and Risk Group, an independent organization within Invesco, with respect to general expected tracking error ranges and various explanations for any tracking error. The Trustees noted that for each applicable
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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)
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.
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 contractual advisory fee, net advisory fee, and gross and net expense ratio. The Trustees also compared each Fund’s contractual advisory fee and net expense ratio to information compiled by the Adviser from Lipper Inc. databases on the net 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 contractual 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 (The net advisory fees, after giving effect to the Expense Caps as defined below, was -0.01% for PowerShares Russell 2000 Pure Growth 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 as defined below, were -0.06%, -0.19% and -0.62%, 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 contractual 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, 2018, 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 contractual advisory fees for certain Funds were equal to or lower than the median net advisory fees of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the contractual advisory fees for all of the Funds were lower than the median net 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 AchieversTM Portfolio | X | |||||||||||
PowerShares CleantechTM Portfolio | X | |||||||||||
PowerShares Dividend AchieversTM Portfolio | 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 |
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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 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 | 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 | ||||||||||
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 | X | ||||||||||
PowerShares Global Listed Private Equity Portfolio | N/A | X | ||||||||||
PowerShares Golden Dragon China Portfolio | X | N/A | X | |||||||||
PowerShares High Yield Equity Dividend AchieversTM Portfolio | X | |||||||||||
PowerShares International Dividend AchieversTM Portfolio | X | N/A | 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 contractual 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 AchieversTM Portfolio | X | |||||||||||
PowerShares CleantechTM Portfolio | X | |||||||||||
PowerShares Dividend AchieversTM 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 |
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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 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 | 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 | |||||||||||
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 | X | |||||||||
PowerShares Russell Midcap Pure Growth Portfolio | 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 AchieversTM Portfolio | X | X | ||||||||||
PowerShares International Dividend AchieversTM Portfolio | N/A | 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 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. |
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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)
In response to questions from the Independent Trustees, the Adviser provided supplemental information regarding each of PowerShares Dynamic Energy Exploration & Production Portfolio, PowerShares Dynamic Large Cap Growth Portfolio, PowerShares Global Listed Private Equity Portfolio and PowerShares Russell Top 200 Pure Growth Portfolio’s advisory fees and total expenses and the Lipper peer data. The Adviser explained in detail its view that it believes that the advisory fees and total expenses for these Funds are competitive and generally in line with other comparable funds in the marketplace, noting, in particular, the unique underlying investment strategy and complexity of each Fund, the limited number of peers in the Lipper data, and/or the differing pricing philosophy of certain of the peers.
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 the Funds, 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 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.powershares.com.
P-PS-AR-1 | ||||||
©2017 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | ||||||
powershares.com 800 983 0903 | @PowerShares |
April 30, 2017 |
2017 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 |
The Market Environment | 3 | |||
Manager’s Analysis | 4 | |||
Industry Portfolios | ||||
Schedules of Investments | ||||
33 | ||||
34 | ||||
PowerShares Dynamic Energy Exploration & Production Portfolio (PXE) | 35 | |||
36 | ||||
PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ) | 37 | |||
38 | ||||
39 | ||||
40 | ||||
41 | ||||
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 | 61 | |||
Report of Independent Registered Public Accounting Firm | 72 | |||
Fees and Expenses | 73 | |||
Tax Information | 75 | |||
Trustees and Officers | 76 | |||
Board Considerations Regarding Continuation of Investment Advisory Agreement | 82 |
| 2 |
|
US Equity
During the fiscal year ended April 30, 2017, the US economy continued to expand and strengthen, with unemployment declining and inflation ticking upward somewhat. Signs of an improving economy prompted the US Federal Reserve to raise interest rates in December 2016 and again in March 2017. Major US stock market indexes posted gains for the reporting period, with most hitting record highs following the US presidential election. Investors seemed to believe that the new administration’s plans to reduce tax rates, scale back regulations and increase infrastructure spending had the potential to stimulate economic growth.
While US and overseas stock markets were jolted by the UK’s decision in June 2016 to leave the European Union, markets recovered relatively quickly. During the second half of calendar 2016, small-cap stocks led the US market while large-cap stocks lagged—but that reversed in the first quarter of calendar 2017. Near the close of the fiscal year, headlines out of Washington, DC, suggested that enacting significant regulatory and tax reform might be somewhat more difficult than previously anticipated; this was a slight negative for investor sentiment. For the reporting period as a whole, information technology and financials were the strongest-performing sectors, while telecommunication services and energy were the weakest-performing sectors.
| 3 |
|
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 and 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. These companies may include, for example, companies involved in the research, development or production of pharmaceuticals, including veterinary drugs.
Strictly in accordance with its existing guidelines and mandated procedures, NYSE Group, Inc. (the “Index Provider”) includes common stocks of biotechnology and genome companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection 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, 2017, on a market price basis, the Fund returned 10.15%. On a net asset value (“NAV”) basis, the Fund returned 10.09%. During the same time period, the Index returned 9.64%. 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 revenue generated through the Fund’s securities lending program partially 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 4.47%. 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 another biotechnology and genome industry benchmark.
The Benchmark Index was also selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a representation of the biotech industry. It is important to note, however, that the Index includes stocks from its proprietary “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. This Benchmark Index is relevant as a comparison, but the disparity compared to pure biotechnology exposure 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, 2017. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to stock selection in the biotechnology sub-industry.
For the fiscal year ended April 30, 2017, the biotechnology sub-industry contributed most significantly to the Fund’s return, followed by the health care equipment sub-industry. The pharmaceuticals sub-industry was the only detracting sub-industry.
Positions that contributed most significantly to the Fund’s return included Exelixis, Inc., a biotechnology company (portfolio average weight of 3.29%), and Incyte Corp., a biotechnology company (portfolio average weight of 5.33%). Positions that detracted most significantly from the Fund’s return included Acorda Therapeutics, Inc., a biotechnology company (portfolio average weight of 1.83%), and Achillion Pharmaceuticals, Inc., a biotechnology company (no longer held at fiscal year-end).
Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Biotechnology | 88.9 | |||
Pharmaceuticals | 8.2 | |||
Health Care Equipment | 2.9 | |||
Money Market Fund Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* as of April 30, 2017 | ||||
Security | ||||
Vertex Pharmaceuticals, Inc. | 6.7 | |||
Regeneron Pharmaceuticals, Inc. | 5.3 | |||
BioMarin Pharmaceutical, Inc. | 5.2 | |||
Incyte Corp. | 5.0 | |||
Gilead Sciences, Inc. | 4.8 | |||
Alexion Pharmaceuticals, Inc. | 4.8 | |||
Biogen, Inc. | 4.6 | |||
Amgen, Inc. | 4.6 | |||
Insmed, Inc. | 3.5 | |||
Neurocrine Biosciences, Inc. | 3.3 | |||
Total | 47.8 |
* | Excluding money market fund holdings. |
| 4 |
|
PowerShares Dynamic Biotechnology & Genome Portfolio (PBE) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception† | ||||||||||||||||||||||||||||||||||
Index | 1 Year | Average Annualized | Cumulative | |||||||||||||||||||||||||||||||||||||
Dynamic Biotech & Genome IntellidexSM Index | 9.64 | % | 3.27 | % | 10.14 | % | 14.73 | % | 98.82 | % | 9.09 | % | 138.66 | % | 10.08 | % | 212.20 | % | ||||||||||||||||||||||
S&P Composite 1500® Biotech Index | 4.47 | 9.54 | 31.45 | 22.33 | 173.95 | 14.55 | 288.87 | 14.73 | 409.70 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 10.09 | 3.53 | 10.96 | 14.63 | 97.95 | 8.66 | 129.37 | 9.74 | 200.94 | |||||||||||||||||||||||||||||||
Market Price Return | 10.15 | 3.57 | 11.09 | 14.69 | 98.48 | 8.66 | 129.47 | 9.74 | 200.87 |
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. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.58%. The Financial Highlights section of the Shareholder 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 powershares.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 |
|
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. These companies also may include manufacturers of building materials from home improvement and general construction projects and specialized machinery used for building and construction; companies that provide installation, maintenance or repair work; and land developers.
Strictly in accordance with its guidelines and mandated procedures, NYSE Group, Inc. (the “Index Provider”) includes common stocks of building and construction companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection 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, 2017, on a market price basis, the Fund returned 18.41%. On a net asset value (“NAV”) basis, the Fund returned 18.33%. During the same time period, the Index returned 19.15%. 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.
During this same time period, the S&P Composite 1500® Construction & Engineering Index (the “Benchmark Index”) returned 17.35%. 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 because 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, 2017. 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 building products and construction materials sub-industries.
For the fiscal year ended April 30, 2017, the building products sub-industry contributed most significantly to the Fund’s return, followed by the construction & engineering and construction materials sub-industries, respectively. The specialty stores sub-industry detracted most significantly from the Fund’s return, followed by the heavy electrical equipment and industrial conglomerates sub-industries, respectively.
Positions that contributed most significantly to the Fund’s return included MasTec, Inc., a construction & engineering company (portfolio average weight of 2.89%), and Martin Marietta Materials, Inc., a construction materials company (portfolio average weight of 5.05%). Positions that detracted most significantly from the Fund’s return included Fortune Brands Home & Security, Inc., a building products company (no longer held at fiscal year-end), and Tractor Supply Co., a specialty stores company (no longer held at fiscal year-end).
| 6 |
|
PowerShares Dynamic Building & Construction Portfolio (PKB) (continued)
Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Construction Materials | 20.9 | |||
Building Products | 20.7 | |||
Homebuilding | 18.5 | |||
Construction & Engineering | 13.4 | |||
Forest Products | 5.7 | |||
Home Improvement Retail | 5.1 | |||
Home Furnishings | 5.0 | |||
Construction Machinery & Heavy Trucks | 2.8 | |||
Distributors | 2.7 | |||
Multi-Utilities | 2.6 | |||
Industrial Machinery | 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, 2017 | ||||
Security | ||||
NVR, Inc. | 5.3 | |||
Home Depot, Inc. (The) | 5.1 | |||
A.O. Smith Corp. | 5.1 | |||
Martin Marietta Materials, Inc. | 5.0 | |||
PulteGroup, Inc. | 5.0 | |||
Mohawk Industries, Inc. | 5.0 | |||
Vulcan Materials Co. | 4.9 | |||
Lennox International, Inc. | 4.8 | |||
MasTec, Inc. | 3.1 | |||
Boise Cascade Co. | 2.9 | |||
Total | 46.2 |
* | Excluding money market fund holdings. |
| 7 |
|
PowerShares Dynamic Building & Construction Portfolio (PKB) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception† | ||||||||||||||||||||||||||||||||||
Index | 1 Year | Average Annualized | Cumulative | |||||||||||||||||||||||||||||||||||||
Dynamic Building & Construction IntellidexSM Index | 19.15 | % | 11.18 | % | 37.44 | % | 16.92 | % | 118.54 | % | 6.24 | % | 83.13 | % | 7.49 | % | 129.82 | % | ||||||||||||||||||||||
S&P Composite 1500® Construction & Engineering Index | 17.35 | 0.81 | 2.46 | 6.39 | 36.33 | 3.25 | 37.75 | 7.00 | 117.87 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 18.33 | 10.42 | 34.62 | 16.01 | 110.14 | 5.48 | 70.43 | 6.61 | 109.00 | |||||||||||||||||||||||||||||||
Market Price Return | 18.41 | 10.43 | 34.66 | 16.08 | 110.73 | 5.48 | 70.54 | 6.61 | 109.00 |
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, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.68% and the net annual operating expense ratio was indicated as 0.63%. The Financial Highlights section of the Shareholder 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 powershares.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. |
| 8 |
|
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. These companies include petroleum refineries that process the crude oil into finished products, such as gasoline and automotive lubricants, and companies involved in gathering and processing natural gas, and manufacturing natural gas liquid.
Strictly in accordance with its guidelines and mandated procedures, NYSE Group, Inc. (the “Index Provider”) includes common stocks of energy exploration and production companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection 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, 2017, on a market price basis, the Fund returned (3.96)%. On a net asset value (“NAV”) basis, the Fund returned (3.96)%. During the same time period, the Index returned (3.36)%. 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® Oil & Gas Exploration & Production Index (the “Benchmark Index”) returned (1.60)%. 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 another energy exploration & production industry benchmark. The Benchmark Index was also selected for its recognition in the marketplace and because its exposure to the oil & gas exploration & production sub-industry, and its performance comparison is a useful measure for investors as a representation of that 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, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s relative underweight allocation to the oil & gas exploration & production sub-industry, as well as fees and operating expenses that the Fund incurred.
For the fiscal year ended April 30, 2017, there were no contributing sub-industries. The oil & gas exploration & production sub-industry detracted most significantly from the Fund’s return, followed by the oil & gas refining & marketing and integrated oil & gas sub-industries, respectively.
Positions that contributed most significantly to the Fund’s return included Marathon Petroleum Corp., an oil & gas refining & marketing company (portfolio average weight of 5.11%), and Delek US Holdings, Inc., an oil & gas refining & marketing company (portfolio average weight of 2.65%). Positions that detracted most significantly from the Fund’s return included CVR Refining LP, an oil & gas refining & marketing company (portfolio average weight of 1.96%), and Tellurian, Inc., an oil & gas refining & marketing company (portfolio average weight of 0.32%).
Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Oil & Gas Exploration & Production | 60.3 | |||
Oil & Gas Refining & Marketing | 37.0 | |||
Gas Utilities | 2.7 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
ConocoPhillips | 5.4 | |||
Phillips 66 | 5.4 | |||
Marathon Petroleum Corp. | 5.4 | |||
Valero Energy Corp. | 5.1 | |||
EOG Resources, Inc. | 5.1 | |||
Pioneer Natural Resources Co. | 5.0 | |||
Continental Resources, Inc. | 4.9 | |||
Anadarko Petroleum Corp. | 4.6 | |||
Rice Energy, Inc. | 3.2 | |||
Cabot Oil & Gas Corp. | 3.0 | |||
Total | 47.1 |
* | Excluding money market fund holdings. |
| 9 |
|
PowerShares Dynamic Energy Exploration & Production Portfolio (PXE) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception† | ||||||||||||||||||||||||||||||||||
Index | 1 Year | Average Annualized | Cumulative | |||||||||||||||||||||||||||||||||||||
Dynamic Energy Exploration & Production IntellidexSM Index | (3.36 | )% | (15.32 | )% |
| (39.28 | )% | (0.24 | )% | (1.21 | )% | 2.00 | % | 21.88 | % | 4.37 | % | 63.57 | % | |||||||||||||||||||||
S&P Composite 1500® Oil & Gas Exploration & Production Index | (1.60 | ) | (15.66 | ) | (40.01 | ) | (3.52 | ) | (16.40 | ) | 0.54 | 5.58 | 2.37 | 30.90 | ||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | (3.96 | ) | (15.66 | ) | (40.01 | ) | (0.80 | ) | (3.95 | ) | 1.37 | 14.62 | 3.76 | 52.91 | ||||||||||||||||||||||||||
Market Price Return | (3.96 | ) | (15.66 | ) | (40.00 | ) | (0.79 | ) | (3.90 | ) | 1.38 | 14.74 | 3.75 | 52.73 |
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, 2018. 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 0.75%. The Financial Highlights section of the Shareholder 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 powershares.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. |
| 10 |
|
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. These companies may include consumer manufacturing of agricultural inputs like livestock and crops, as well as processed food and beverage products; food and beverage stores such as grocery stores, supermarkets, wholesale distributors of grocery items; and food and beverage services like restaurants, bars, snack bars, coffeehouses and other establishments providing food and refreshment. Companies with focused operations as tobacco growers and manufactures, or pet supplies stores are specifically excluded from this universe.
Strictly in accordance with its guidelines and mandated procedures, NYSE Group, Inc. (the “Index Provider”) includes common stocks of food and beverage companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection 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, 2017, on a market price basis, the Fund returned 6.03%. On a net asset value (“NAV”) basis, the Fund returned 6.03%. During the same time period, the Index returned 6.76%. 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 fees and operating expenses that the Fund incurred during the period, as well as slippage associated with the portfolio’s quarterly rebalances.
During this same time period, the S&P Composite 1500® Food Beverage & Tobacco Index (the “Benchmark Index”) returned 10.43%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 45 securities. The Fund provided this comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of another food & beverage industry benchmark. The Benchmark Index was also selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad 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 packaged foods & meats sub-industry and most underweight in the tobacco sub-industry during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s underweight allocation to the tobacco sub-industry.
For the fiscal year ended April 30, 2017, the packaged foods & meats sub-industry contributed most significantly to the Fund’s return, followed by the agricultural products and food distributors sub-industries, respectively. There were no detracting sub-industries.
Positions that contributed most significantly to the Fund’s return included Fresh Del Monte Produce, Inc., an agricultural products company (portfolio average weight of 2.80%), and Sysco Corp., a food distributors company (portfolio average weight of 5.04%). Positions that detracted most significantly from the Fund’s return included Monster Beverage Corp., a soft drinks company (no longer held at fiscal year-end), and Tyson Foods, Inc., Class A, a packaged foods & meats company (portfolio average weight of 3.51%).
Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Packaged Foods & Meats | 46.5 | |||
Agricultural Products | 13.7 | |||
Food Distributors | 13.1 | |||
Restaurants | 8.5 | |||
Food Retail | 7.1 | |||
Distillers & Vintners | 5.7 | |||
Soft Drinks | 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, 2017 | ||||
Security | ||||
Constellation Brands, Inc., Class A | 5.7 | |||
PepsiCo, Inc. | 5.3 | |||
Archer-Daniels-Midland Co. | 5.2 | |||
Sysco Corp. | 5.1 | |||
Hershey Co. (The) | 5.1 | |||
Kellogg Co. | 4.8 | |||
General Mills, Inc. | 4.8 | |||
Kroger Co. (The) | 4.6 | |||
Pilgrim’s Pride Corp. | 3.5 | |||
John B. Sanfilippo & Son, Inc. | 3.3 | |||
Total | 47.4 |
* | Excluding money market fund holdings. |
| 11 |
|
PowerShares Dynamic Food & Beverage Portfolio (PBJ) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception† | ||||||||||||||||||||||||||||||||||
Index | 1 Year | Average Annualized | Cumulative | |||||||||||||||||||||||||||||||||||||
Dynamic Food & Beverage IntellidexSM Index | 6.76 | % | 9.98 | % | 33.03 | % | 13.53 | % | 88.61 | % | 9.14 | % | 139.89 | % | 9.44 | % | 191.15 | % | ||||||||||||||||||||||
S&P Composite 1500® Food Beverage & Tobacco Index | 10.43 | 14.08 | 48.47 | 14.24 | 94.54 | 12.59 | 227.23 | 13.06 | 328.21 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 6.03 | 9.27 | 30.48 | 12.78 | 82.48 | 8.40 | 124.10 | 8.71 | 169.02 | |||||||||||||||||||||||||||||||
Market Price Return | 6.03 | 9.25 | 30.39 | 12.78 | 82.43 | 8.39 | 123.91 | 8.71 | 168.93 |
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. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.58%. The Financial Highlights section of the Shareholder 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 powershares.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. |
| 12 |
|
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. These companies may include, hospitality industry companies such as hotels, restaurants and bars, cruise lines, casinos, and all other recreation and amusement businesses; as well as entertainment programming companies engaged in the production of motion pictures, music by recording artists, programming for radio and television, related post-production and movie theaters.
Strictly in accordance with its guidelines and mandated procedures, NYSE Group, Inc. (the “Index Provider”) includes common stocks of leisure companies and entertainment companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection 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, 2017, on a market price basis, the Fund returned 18.55%. On a net asset value (“NAV”) basis, the Fund returned 18.52%. During the same time period, the Index returned 19.44%. 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 slippage associated with the portfolio’s quarterly rebalances.
During this same time period, the S&P Composite 1500® Hotels, Restaurants & Leisure Index (the “Benchmark Index”) returned 21.20%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 45 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 in the leisure & entertainment industry benchmark. The Benchmark Index was also selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad representation of the leisure & 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, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s relative underweight allocation to the restaurants sub-industry, as well as fees and operating expenses that the Fund incurred.
For the fiscal year ended April 30, 2017, the airlines sub-industry contributed most significantly to the Fund’s return, followed by the restaurants and leisure facilities sub-industries, respectively. The food distributors sub-industry was the only detracting sub-industry.
Positions that contributed most significantly to the Fund’s return included United Continental Holdings, Inc., an airlines company (portfolio average weight of 5.16%), and American Airlines Group, Inc., an airlines company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Las Vegas Sands Corp., a casinos & gaming company (no longer held at fiscal year-end), and Sonic Corp., a restaurants company (no longer held at fiscal year-end).
| 13 |
|
PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ) (continued)
Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Restaurants | 20.7 | |||
Airlines | 20.0 | |||
Hotels, Resorts & Cruise Lines | 16.8 | |||
Movies & Entertainment | 12.6 | |||
Leisure Facilities | 10.6 | |||
Broadcasting | 7.5 | |||
Internet & Direct Marketing Retail | 5.7 | |||
Casinos & Gaming | 3.2 | |||
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, 2017 | ||||
Security | ||||
Priceline Group, Inc. (The) | 5.6 | |||
Royal Caribbean Cruises Ltd. | 5.6 | |||
Time Warner, Inc. | 5.1 | |||
CBS Corp., Class B | 5.0 | |||
Southwest Airlines Co. | 4.9 | |||
Viacom, Inc., Class B | 4.9 | |||
United Continental Holdings, Inc. | 4.7 | |||
Delta Air Lines, Inc. | 4.5 | |||
Bob Evans Farms, Inc. | 3.3 | |||
Scientific Games Corp., Class A | 3.2 | |||
Total | 46.8 |
* | Excluding money market fund holdings. |
| 14 |
|
PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception† | ||||||||||||||||||||||||||||||||||
Index | 1 Year | Average Annualized | Cumulative | |||||||||||||||||||||||||||||||||||||
Dynamic Leisure & Entertainment IntellidexSM Index | 19.44 | % | 10.56 | % | 35.14 | % | 15.16 | % | 102.54 | % | 10.34 | % | 167.50 | % | 10.82 | % | 237.87 | % | ||||||||||||||||||||||
S&P Composite 1500® Hotels, Restaurants & Leisure Index | 21.20 | 15.08 | 52.41 | 13.57 | 88.91 | 11.96 | 209.43 | 12.32 | 296.18 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 18.52 | 9.74 | 32.15 | 14.29 | 94.97 | 9.66 | 151.45 | 10.13 | 213.77 | |||||||||||||||||||||||||||||||
Market Price Return | 18.55 | 9.75 | 32.19 | 14.26 | 94.79 | 9.66 | 151.37 | 10.13 | 213.86 |
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. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.61%. The Financial Highlights section of the Shareholder 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 powershares.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 |
|
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. These companies produce and distribute information and entertainment content and may include television and radio stations, broadcast and cable networks, motion picture companies, music producers, print publishers, and providers of content delivered via the internet; as well as direct to home satellite services; traditional cable services; and advertising and related services.
Strictly in accordance with its guidelines and mandated procedures, NYSE Group, Inc. (the “Index Provider”) includes common stocks of media companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection 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, 2017, on a market price basis, the Fund returned 11.57%. On a net asset value (“NAV”) basis, the Fund returned 11.49%. During the same time period, the Index returned 12.29%. 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, as well as slippage associated with the portfolio’s quarterly rebalances.
During this same time period, the S&P Composite 1500® Media Index (the “Benchmark Index”) returned 19.93%. 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 media industry benchmark. The Benchmark Index was also selected for its recognition in the marketplace, and because 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, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s relative underweight allocation to the movies & entertainment sub-industry.
For the fiscal year ended April 30, 2017, the cable & satellite sub-industry contributed most significantly to the Fund’s return, followed by the internet software & services and diversified support services sub-industries, respectively. The publishing sub-industry detracted most significantly from the Fund’s return, followed by the advertising and internet & direct marketing retail sub-industries, respectively.
Positions that contributed most significantly to the Fund’s return included Time Warner, Inc., a movies and entertainment company (portfolio average weight of 5.07%), and Charter Communications, Inc., Class A, a cable & satellite company (portfolio average weight of 3.46%). Positions that detracted most significantly from the Fund’s return included Gannett Co., Inc., a publishing company (no longer held at fiscal year-end), and Twenty-First Century Fox, Inc., Class A, a movies & entertainment company (no longer held at fiscal year-end).
| 16 |
|
PowerShares Dynamic Media Portfolio (PBS) (continued)
Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Internet Software & Services | 21.8 | |||
Broadcasting | 21.0 | |||
Cable & Satellite | 18.2 | |||
Movies & Entertainment | 15.7 | |||
Publishing | 12.9 | |||
Advertising | 5.2 | |||
IT Consulting & Other Services | 2.6 | |||
Diversified Support 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, 2017 | ||||
Security | ||||
Facebook, Inc., Class A | 5.5 | |||
Charter Communications, Inc., Class A | 5.3 | |||
Yahoo!, Inc. | 5.2 | |||
Walt Disney Co. (The) | 5.2 | |||
DISH Network Corp., Class A | 5.1 | |||
Time Warner, Inc. | 5.1 | |||
CBS Corp., Class B | 5.0 | |||
Sirius XM Holdings, Inc. | 4.8 | |||
IAC/InterActiveCorp. | 3.0 | |||
Match Group, Inc. | 3.0 | |||
Total | 47.2 |
* | Excluding money market fund holdings. |
| 17 |
|
PowerShares Dynamic Media Portfolio (PBS) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception† | ||||||||||||||||||||||||||||||||||
Index | 1 Year | Average Annualized | Cumulative | |||||||||||||||||||||||||||||||||||||
Dynamic Media IntellidexSM Index | 12.29 | % | 6.85 | % | 21.99 | % | 15.01 | % | 101.24 | % | 6.79 | % | 92.84 | % | 6.73 | % | 116.49 | % | ||||||||||||||||||||||
S&P Composite 1500® Media Index | 19.93 | 11.76 | 39.57 | 19.67 | 145.45 | 10.71 | 176.70 | 10.73 | 234.65 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 11.49 | 6.12 | 19.49 | 14.18 | 94.05 | 6.16 | 81.82 | 6.09 | 101.48 | |||||||||||||||||||||||||||||||
Market Price Return | 11.57 | 6.16 | 19.64 | 14.19 | 94.12 | 6.17 | 81.98 | 6.09 | 101.55 |
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. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.61%. The Financial Highlights section of the Shareholder 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 powershares.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. |
| 18 |
|
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. These companies may include communications equipment companies that offer a broad range of access, transport, and connectivity equipment and devices which span across a diverse set of markets including enterprise networking, home networking, satellite, wireless (terrestrial), wireline wide area networking, and cable (CATV). Such companies also may provide integrated circuits specialized to facilitate communications within a network; software that enables, manages, supports, and secures enterprise networks; and equipment used to build storage networks, which are specialized, high speed networks dedicated to accessing storage data.
Strictly in accordance with its guidelines and mandated procedures, NYSE Group, Inc. (the “Index Provider”) includes common stocks of networking companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection 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, 2017, on a market price basis, the Fund returned 30.22%. On a net asset value (“NAV”) basis, the Fund returned 30.19%. During the same time period, the Index returned 30.76%. 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 income received from the securities lending program in which the Fund participates.
During this same time period, the S&P Composite 1500® Communications Equipment Index (the “Benchmark Index”) returned 28.40%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 20 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 networking industry benchmark. The Benchmark Index was also selected for its recognition in the marketplace and because its exposure to the communications equipment industry, and its performance comparison is a useful measure for investors as a representation of that 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 systems software sub-industry and most underweight in the communications equipment sub-industry during the fiscal year ended April 30, 2017. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund being overweight the systems software and internet software & services sub-industries.
For the fiscal year ended April 30, 2017, the communications equipment sub-industry contributed most significantly to the Fund’s return, followed by the systems software and technology hardware, storage & peripherals sub-industries, respectively. The electronic equipment & instruments sub-industry was the only detracting sub-industry.
Positions that contributed most significantly to the Fund’s return included VMware, Inc., Class A, a systems software company (portfolio average weight of 4.66%), and Arista Networks, Inc., a communications equipment company (portfolio average weight of 2.77%). Positions that detracted most significantly from the Fund’s return included Acacia Communications, Inc., a communications equipment company (portfolio average weight of 1.54%), and Fitbit, Inc., Class A, an electronic equipment & instruments company (no longer held at fiscal year-end).
| 19 |
|
PowerShares Dynamic Networking Portfolio (PXQ) (continued)
Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Communications Equipment | 54.4 | |||
Systems Software | 21.0 | |||
Internet Software & Services | 6.6 | |||
Technology Hardware, Storage & Peripherals | 5.2 | |||
Electronic Components | 5.1 | |||
Application Software | 5.0 | |||
Consumer Electronics | 2.6 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.1 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
Symantec Corp. | 5.5 | |||
Motorola Solutions, Inc. | 5.4 | |||
Apple, Inc. | 5.2 | |||
Check Point Software Technologies Ltd. | 5.1 | |||
VMware, Inc., Class A | 5.1 | |||
Amphenol Corp., Class A | 5.1 | |||
Citrix Systems, Inc. | 5.0 | |||
Cisco Systems, Inc. | 4.9 | |||
Extreme Networks, Inc. | 3.4 | |||
LogMeIn, Inc. | 3.3 | |||
Total | 48.0 |
* | Excluding money market fund holdings. |
| 20 |
|
PowerShares Dynamic Networking Portfolio (PXQ) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception† | ||||||||||||||||||||||||||||||||||
Index | 1 Year | Average Annualized | Cumulative | |||||||||||||||||||||||||||||||||||||
Dynamic Networking IntellidexSM Index | 30.76 | % | 12.53 | % | 42.48 | % | 10.45 | % | 64.39 | % | 9.77 | % | 153.90 | % | 10.29 | % | 219.31 | % | ||||||||||||||||||||||
S&P Composite 1500® Communications Equipment Index | 28.40 | 8.13 | 26.42 | 9.23 | 55.46 | 4.13 | 49.90 | 5.49 | 88.33 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 30.19 | 11.98 | 40.41 | 9.80 | 59.59 | 9.04 | 137.71 | 9.61 | 196.82 | |||||||||||||||||||||||||||||||
Market Price Return | 30.22 | 12.00 | 40.49 | 9.83 | 59.81 | 9.05 | 137.77 | 9.62 | 196.89 |
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, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.88% and the net annual operating expense ratio was indicated as 0.63%. The Financial Highlights section of the Shareholder 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 powershares.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. |
| 21 |
|
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. The Index may include companies 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.
Strictly in accordance with its guidelines and mandated procedures, NYSE Group, Inc. (the “Index Provider”) includes common stocks of oil and gas services companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection 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, 2017, on a market price basis, the Fund returned (17.92)%. On a net asset value (“NAV”) basis, the Fund returned (17.99)%. During the same time period, the Index returned (17.42)%. 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 income received from the securities lending program in which the Fund participates.
During this same time period, the S&P Composite 1500® Energy Equipment & Services Index (the “Benchmark Index”) returned (2.20)%. 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 another oil & gas services industry benchmark. The Benchmark Index was also selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad 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, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s relative overweight allocation to the oil & gas drilling sub-industry, as well as stock selection in the oil & gas storage transportation sub-industry.
For the fiscal year ended April 30, 2017, there were no contributing sub-industries. The oil & gas drilling 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 Exterran Corp., an oil & gas equipment & services company (portfolio average weight of 1.37%), and McDermott International, Inc., an oil & gas equipment & services company (portfolio average weight of 2.85%). Positions that detracted most significantly from the Fund’s return included Seadrill Ltd., an oil & gas drilling company (portfolio average weight of 2.56%), and Diamond Offshore Drilling, Inc., an oil & gas drilling company (portfolio average weight of 3.09%).
Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Oil & Gas Equipment & Services | 65.3 | |||
Oil & Gas Drilling | 25.6 | |||
Oil & Gas Storage & Transportation | 9.1 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
Baker Hughes, Inc. | 5.8 | |||
Core Laboratories NV | 5.8 | |||
Schlumberger Ltd. | 5.4 | |||
Helmerich & Payne, Inc. | 5.3 | |||
National Oilwell Varco, Inc. | 5.2 | |||
Halliburton Co. | 5.1 | |||
Transocean Ltd. | 4.6 | |||
Key Energy Services, Inc. | 4.4 | |||
Scorpio Tankers, Inc. | 3.3 | |||
USA Compression Partners LP | 3.1 | |||
Total | 48.0 |
* | Excluding money market fund holdings. |
| 22 |
|
PowerShares Dynamic Oil & Gas Services Portfolio (PXJ) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception† | ||||||||||||||||||||||||||||||||||
Index | 1 Year | Average Annualized | Cumulative | |||||||||||||||||||||||||||||||||||||
Dynamic Oil Services IntellidexSM Index | (17.42 | )% | (25.97 | )% | (59.43 | )% | (10.79 | )% | (43.50 | )% | (6.09 | )% | (46.65 | )% | (2.58 | )% | (25.99 | )% | ||||||||||||||||||||||
S&P Composite 1500® Energy Equipment & Services Index | (2.20 | ) | (13.51 | ) | (35.31 | ) | (2.38 | ) | (11.37 | ) | (0.55 | ) | (5.40 | ) | 2.57 | 34.00 | ||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | (17.99 | ) | (26.47 | ) | (60.25 | ) | (11.39 | ) | (45.37 | ) | (6.71 | ) | (50.09 | ) | (3.18 | ) | (31.04 | ) | ||||||||||||||||||||||
Market Price Return | (17.92 | ) | (26.46 | ) | (60.24 | ) | (11.39 | ) | (45.37 | ) | (6.71 | ) | (50.09 | ) | (3.18 | ) | (31.04 | ) |
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, 2018. 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 0.63%. The Financial Highlights section of the Shareholder 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 powershares.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 |
|
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. These companies may include, for example, pharmaceutical companies and other companies involved in the research, development, manufacture, sale or distribution of drugs, including companies that facilitate the testing or regulatory approval of drugs.
Strictly in accordance with its guidelines and mandated procedures, NYSE Group, Inc. (the “Index Provider”) includes common stocks of pharmaceutical companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection 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, 2017, on a market price basis, the Fund returned (1.44)%. On a net asset value (“NAV”) basis, the Fund returned (1.47)%. During the same time period, the Index returned (1.04)%. 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 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 6.98%. 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 another pharmaceuticals industry benchmark. The Benchmark Index was also selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad-based representation of the pharmaceuticals 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 biotechnology sub-industry and most underweight in the pharmaceuticals sub-industry during the fiscal year ended
April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s relative overweight allocation to the biotechnology sub-industry.
For the fiscal year ended April 30, 2017, the health care equipment sub-industry was the only contributing sub-industry. The biotechnology sub-industry detracted most significantly from the Fund’s return, followed by the pharmaceuticals sub-industry.
Positions that contributed most significantly to the Fund’s return included Medicines Co. (The), a pharmaceuticals company (portfolio average weight of 4.20%), and Akorn, Inc., a pharmaceuticals company (portfolio average weight of 4.24%). Positions that detracted most significantly from the Fund’s return included Impax Laboratories, Inc., a pharmaceuticals company (portfolio average weight of 3.72%), and Novavax, Inc., a biotechnology company (no longer held at fiscal year-end).
Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Pharmaceuticals | 63.9 | |||
Biotechnology | 27.7 | |||
Health Care Equipment | 8.4 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
Akorn, Inc. | 6.3 | |||
Celgene Corp. | 5.3 | |||
Johnson & Johnson | 5.1 | |||
Bristol-Myers Squibb Co. | 5.1 | |||
Pfizer, Inc. | 5.0 | |||
Gilead Sciences, Inc. | 5.0 | |||
Allergan PLC | 5.0 | |||
Merck & Co., Inc. | 4.8 | |||
Amgen, Inc. | 4.7 | |||
Heron Therapeutics, Inc. | 4.5 | |||
Total | 50.8 |
* | Excluding money market fund holdings. |
| 24 |
|
PowerShares Dynamic Pharmaceuticals Portfolio (PJP) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception† | ||||||||||||||||||||||||||||||||||
Index | 1 Year | Average Annualized | Cumulative | |||||||||||||||||||||||||||||||||||||
Dynamic Pharmaceutical IntellidexSM Index | (1.04 | )% | 5.45 | % | 17.27 | % | 16.91 | % | 118.44 | % | 14.41 | % | 284.27 | % | 14.84 | % | 415.40 | % | ||||||||||||||||||||||
S&P Composite 1500® Pharmaceuticals Index | 6.98 | 7.26 | 23.39 | 15.06 | 101.70 | 9.11 | 139.18 | 9.06 | 179.61 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | (1.47 | ) | 4.91 | 15.48 | 16.26 | 112.36 | 13.68 | 260.48 | 14.15 | 380.15 | ||||||||||||||||||||||||||||||
Market Price Return | (1.44 | ) | 4.94 | 15.57 | 16.26 | 112.41 | 13.69 | 260.63 | 14.16 | 380.42 |
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. According to the Fund’s current prospectus, the total annual operating expense ratio was indicated as 0.57%. The Financial Highlights section of the Shareholder 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 powershares.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. |
| 25 |
|
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. Dealers of motor vehicles and parts, auction houses or rental companies also may be included.
Strictly in accordance with its guidelines and mandated procedures, NYSE Group, Inc. (the “Index Provider”) includes common stocks of retail companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection 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, 2017, on a market price basis, the Fund returned 1.92%. On a net asset value (“NAV”) basis, the Fund returned 1.98%. During the same time period, the Index returned 2.66%. 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 fees and operating expenses that the Fund incurred during the period, as well as slippage associated with the portfolio’s quarterly rebalances.
During this same time period, the S&P Composite 1500® Retailing Index (the “Benchmark Index”) returned 16.71%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 95 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 retail industry benchmark. The Benchmark Index was also selected for its recognition in the marketplace, and because 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 apparel retail sub-industry and most underweight in the internet & direct marketing retail sub-industry during the fiscal
year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s relative underweight allocation to the internet & direct marketing retail sub-industry.
For the fiscal year ended April 30, 2017, the computer & electronics retail sub-industry contributed most significantly to the Fund’s return, followed by the homefurnishing retail and trucking sub-industries, respectively. The specialty stores sub-industry detracted most significantly from the Fund’s return, followed by the automotive retail and drug retail sub-industries, respectively.
Positions that contributed most significantly to the Fund’s return included Best Buy Co., Inc., a computer & electronics retail company (portfolio average weight of 3.48%), and Burlington Stores, Inc., an apparel retail company (portfolio average weight of 2.63%). Positions that detracted most significantly from the Fund’s return included Target Corp., a general merchandise stores company (no longer held at fiscal year-end), and Francesca’s Holdings Corp., an apparel retail company (portfolio average weight of 1.34%).
| 26 |
|
PowerShares Dynamic Retail Portfolio (PMR) (continued)
Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Apparel Retail | 16.0 | |||
Food Retail | 14.7 | |||
Hypermarkets & Super Centers | 12.7 | |||
Automotive Retail | 12.0 | |||
Specialty Stores | 7.7 | |||
General Merchandise Stores | 5.9 | |||
Computer & Electronics Retail | 5.7 | |||
Home Improvement Retail | 5.3 | |||
Drug Retail | 4.9 | |||
Homefurnishing Retail | 3.6 | |||
Forest Products | 3.0 | |||
Trading Companies & Distributors | 2.9 | |||
Distributors | 2.8 | |||
Diversified Support Services | 2.8 | |||
Money Market Fund Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
Best Buy Co., Inc. | 5.7 | |||
Home Depot, Inc. (The) | 5.3 | |||
Wal-Mart Stores, Inc. | 5.2 | |||
Ulta Beauty, Inc. | 5.0 | |||
Costco Wholesale Corp. | 4.9 | |||
Walgreens Boots Alliance, Inc. | 4.9 | |||
Ross Stores, Inc. | 4.7 | |||
Kroger Co. (The) | 4.4 | |||
Aaron’s, Inc. | 3.6 | |||
Ollie’s Bargain Outlet Holdings, Inc. | 3.3 | |||
Total | 47.0 |
* | Excluding money market fund holdings. |
| 27 |
|
PowerShares Dynamic Retail Portfolio (PMR) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception† | ||||||||||||||||||||||||||||||||||
Index | 1 Year | Average Annualized | Cumulative | |||||||||||||||||||||||||||||||||||||
Dynamic Retail IntellidexSM Index | 2.66 | % | 4.42 | % | 13.86 | % | 8.85 | % | 52.81 | % | 7.86 | % | 113.11 | % | 9.52 | % | 185.05 | % | ||||||||||||||||||||||
S&P Composite 1500® Retailing Index | 16.71 | 19.47 | 70.53 | 18.22 | 130.95 | 12.36 | 220.65 | 12.61 | 292.41 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 1.98 | 3.74 | 11.64 | 8.04 | 47.23 | 7.13 | 99.04 | 8.81 | 164.22 | |||||||||||||||||||||||||||||||
Market Price Return | 1.92 | 3.73 | 11.61 | 8.03 | 47.16 | 7.11 | 98.83 | 8.80 | 163.90 |
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, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.88% and the net annual operating expense ratio was indicated as 0.63%. The Financial Highlights section of the Shareholder 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 powershares.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 |
|
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 principally engaged in the manufacture of semiconductors. These companies manufacture semiconductors that serve as the core electronic components of virtually all electronic equipment; make or test chips for third parties; and provide equipment or services used in the production of semiconductors and other thin film products like flat panel displays and thin film heads.
Strictly in accordance with its guidelines and mandated procedures, NSYE Group, Inc. (the “Index Provider”) includes common stocks of semiconductor companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection 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, 2017, on a market price basis, the Fund returned 74.96%. On a net asset value (“NAV”) basis, the Fund returned 74.65%. During the same time period, the Index returned 75.86%. 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 slippage associated with the portfolio’s quarterly rebalances.
During this same time period, the S&P Composite 1500® Semiconductor Index (the “Benchmark Index”) returned 42.80%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 45 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 semiconductors industry benchmark. The Benchmark Index was also selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a broad-based representation of the semiconductors 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, 2017. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s allocations to the semiconductors and semiconductor equipment sub-industries.
For the fiscal year ended April 30, 2017, the semiconductors sub-industry contributed most significantly to the Fund’s return, followed by the semiconductor equipment and electronic components sub-industries, respectively. There were no detracting sub-industries.
Positions that contributed most significantly to the Fund’s return included NVIDIA Corp., a semiconductors company (portfolio average weight of 5.39%), and Applied Materials, Inc., a semiconductor equipment company (portfolio average weight of 5.00%). Positions that detracted most significantly from the Fund’s return included Photronics, Inc., a semiconductor equipment company (no longer held at fiscal year-end), and M/A.Com Technology Solutions Holdings, Inc., a semiconductors company (no longer held at fiscal year-end).
Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Semiconductors | 57.2 | |||
Semiconductor Equipment | 40.4 | |||
Electronic Components | 2.4 | |||
Money Market Fund Plus Other Assets Less Liabilities | (0.0) | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
Lam Research Corp. | 5.8 | |||
Micron Technology, Inc. | 5.5 | |||
Applied Materials, Inc. | 5.2 | |||
Broadcom Ltd. | 4.9 | |||
NVIDIA Corp. | 4.9 | |||
Texas Instruments, Inc. | 4.8 | |||
Intel Corp. | 4.7 | |||
Analog Devices, Inc. | 4.4 | |||
Teradyne, Inc. | 3.1 | |||
Advanced Energy Industries, Inc. | 3.0 | |||
Total | 46.3 |
* | Excluding money market fund holdings. |
| 29 |
|
PowerShares Dynamic Semiconductors Portfolio (PSI) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception† | ||||||||||||||||||||||||||||||||||
Index | 1 Year | Average Annualized | Cumulative | |||||||||||||||||||||||||||||||||||||
Dynamic Semiconductor IntellidexSM Index | 75.86 | % | 29.41 | % | 116.70 | % | 23.96 | % | 192.64 | % | 9.80 | % | 154.66 | % | 10.55 | % | 228.36 | % | ||||||||||||||||||||||
S&P Composite 1500® Semiconductor Index | 42.80 | 20.87 | 76.61 | 16.59 | 115.41 | 9.63 | 150.73 | 8.13 | 152.42 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 74.65 | 28.40 | 111.70 | 22.98 | 181.35 | 8.96 | 135.95 | 9.74 | 201.04 | |||||||||||||||||||||||||||||||
Market Price Return | 74.96 | 28.44 | 111.90 | 23.07 | 182.33 | 8.97 | 136.04 | 9.75 | 201.14 |
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, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.68% and the net annual operating expense ratio was indicated as 0.63%. The Financial Highlights section of the Shareholder 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 powershares.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. |
| 30 |
|
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 are companies that are principally engaged in the research, design, production or distribution of products or processes that relate to software applications and systems and information-based services. These companies may include companies that design and market computer applications targeted toward various end user markets, including home/office, design/engineering, and IT infrastructure; as well as distributors of third-part software applications, primarily to resellers, retailers, and corporations.
Strictly in accordance with its existing guidelines and mandated procedures, NYSE Group, Inc. (the “Index Provider”) includes common stocks of software companies in the Index principally on the basis of their capital appreciation potential, which the Index Provider identifies pursuant to a proprietary selection 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, 2017, on a market price basis, the Fund returned 26.52%. On a net asset value (“NAV”) basis, the Fund returned 26.67%. During the same time period, the Index returned 27.61%. 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 slippage associated with the portfolio’s quarterly rebalances.
During this same time period, the S&P Composite 1500® Software & Services Index (the “Benchmark Index”) returned 27.25%. 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 another software industry benchmark. The Benchmark Index was also selected for its recognition in the marketplace, and because 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 most underweight in the internet software & services sub-industry during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance
relative to the Benchmark Index during that period can be attributed to fees and operating expenses that the Fund incurred during the period.
For the fiscal year ended April 30, 2017, the application software sub-industry contributed most significantly to the Fund’s return, followed by the home entertainment software and systems software sub-industries, respectively. The semiconductor equipment sub-industry was the only detracting sub-industry.
Positions that contributed most significantly to the Fund’s return included Activision Blizzard, Inc., a home entertainment software company (no longer held at fiscal year-end), and Electronic Arts, Inc., a home entertainment software company (portfolio average weight of 2.54%). Positions that detracted most significantly from the Fund’s return included Inovalon Holdings, Inc., Class A, a health care technology company (portfolio average weight of 0.96%), and Allscripts Healthcare Solutions, Inc., a health care technology company (no longer held at fiscal year-end).
Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Application Software | 38.2 | |||
Health Care Technology | 19.8 | |||
Systems Software | 14.7 | |||
Home Entertainment Software | 8.0 | |||
Internet Software & Services | 6.0 | |||
Data Processing & Outsourced Services | 5.5 | |||
Communications Equipment | 5.2 | |||
Education Services | 2.7 | |||
Money Market Fund Plus Other Assets Less Liabilities | (0.1) | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
Cerner Corp. | 5.5 | |||
Adobe Systems, Inc. | 5.3 | |||
Electronic Arts, Inc. | 5.2 | |||
Intuit, Inc. | 4.9 | |||
VMware, Inc., Class A | 4.9 | |||
Synopsys, Inc. | 4.9 | |||
Autodesk, Inc. | 4.9 | |||
CDK Global, Inc. | 4.6 | |||
Veeva Systems, Inc., Class A | 3.2 | |||
LogMeIn, Inc. | 3.2 | |||
Total | 46.6 |
* | Excluding money market fund holdings. |
| 31 |
|
PowerShares Dynamic Software Portfolio (PSJ) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception† | ||||||||||||||||||||||||||||||||||
Index | 1 Year | Average Annualized | Cumulative | |||||||||||||||||||||||||||||||||||||
Dynamic Software IntellidexSM Index | 27.61 | % | 17.25 | % | 61.21 | % | 15.61 | % | 106.51 | % | 10.88 | % | 180.97 | % | 12.06 | % | 285.73 | % | ||||||||||||||||||||||
S&P Composite 1500® Software & Services Index | 27.25 | 18.16 | 64.98 | 17.54 | 124.30 | 11.40 | 194.34 | 11.36 | 257.90 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 26.67 | 16.42 | 57.78 | 14.80 | 99.42 | 10.14 | 162.80 | 11.35 | 257.71 | |||||||||||||||||||||||||||||||
Market Price Return | 26.52 | 16.42 | 57.77 | 14.78 | 99.24 | 10.13 | 162.42 | 11.34 | 257.13 |
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, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.66% and the net annual operating expense ratio was 0.63%. The Financial Highlights section of the Shareholder 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 powershares.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. |
| 32 |
|
Schedule of Investments(a)
PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks—100.0% | ||||||||
Biotechnology—88.9% | ||||||||
245,132 | Acorda Therapeutics, Inc.(b) | $ | 3,958,882 | |||||
86,133 | Alexion Pharmaceuticals, Inc.(b) | 11,006,075 | ||||||
132,504 | Alnylam Pharmaceuticals, Inc.(b) | 7,102,214 | ||||||
64,566 | Amgen, Inc. | 10,544,919 | ||||||
591,536 | Array BioPharma, Inc.(b)(c) | 5,128,617 | ||||||
39,456 | Biogen, Inc.(b) | 10,700,862 | ||||||
125,829 | BioMarin Pharmaceutical, Inc.(b) | 12,059,451 | ||||||
205,786 | Emergent Biosolutions, Inc.(b) | 6,155,059 | ||||||
281,891 | Exelixis, Inc.(b) | 6,314,358 | ||||||
161,961 | Gilead Sciences, Inc. | 11,102,427 | ||||||
92,130 | Incyte Corp.(b) | 11,449,916 | ||||||
442,158 | Insmed, Inc.(b) | 8,157,815 | ||||||
478,774 | Insys Therapeutics, Inc.(b)(c) | 5,386,207 | ||||||
138,181 | Ionis Pharmaceuticals, Inc.(b) | 6,658,942 | ||||||
398,719 | Lexicon Pharmaceuticals, Inc.(b)(c) | 6,224,004 | ||||||
405,848 | Momenta Pharmaceuticals, Inc.(b) | 5,823,919 | ||||||
321,696 | Myriad Genetics, Inc.(b)(c) | 5,915,989 | ||||||
142,254 | Neurocrine Biosciences, Inc.(b) | 7,596,364 | ||||||
719,285 | OPKO Health, Inc.(b)(c) | 5,588,844 | ||||||
598,468 | Progenics Pharmaceuticals, Inc.(b) | 4,739,867 | ||||||
31,126 | Regeneron Pharmaceuticals, Inc.(b) | 12,092,140 | ||||||
189,145 | Repligen Corp.(b) | 6,958,645 | ||||||
97,167 | Seattle Genetics, Inc.(b) | 6,636,506 | ||||||
41,565 | United Therapeutics Corp.(b) | 5,224,721 | ||||||
131,054 | Vertex Pharmaceuticals, Inc.(b) | 15,503,688 | ||||||
986,845 | ZIOPHARM Oncology, Inc.(b)(c) | 6,947,389 | ||||||
|
| |||||||
204,977,820 | ||||||||
|
| |||||||
Health Care Equipment—2.9% | ||||||||
221,719 | Cardiovascular Systems, Inc.(b) | 6,622,746 | ||||||
|
| |||||||
Pharmaceuticals—8.2% | ||||||||
102,945 | ANI Pharmaceuticals, Inc.(b) | 5,571,383 | ||||||
708,475 | Corcept Therapeutics, Inc.(b) | 6,758,852 | ||||||
304,514 | Dyax Corp.(b) | 338,011 | ||||||
531,971 | Innoviva, Inc.(b) | 6,269,278 | ||||||
|
| |||||||
18,937,524 | ||||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $219,566,083)—100.0% | 230,538,090 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—13.5% | ||||||||
31,201,422 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $31,201,422) | 31,201,422 | ||||||
|
| |||||||
Total Investments (Cost $250,767,505)—113.5% | 261,739,512 | |||||||
Other assets less liabilities—(13.5)% | (31,108,684 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 230,630,828 | ||||||
|
|
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, 2017. |
(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, 2017. |
(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 2I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 33 |
|
Schedule of Investments(a)
PowerShares Dynamic Building & Construction Portfolio (PKB)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks—100.0% | ||||||||
Building Products—20.7% | ||||||||
299,805 | A.O. Smith Corp. | $ | 16,153,493 | |||||
202,741 | Gibraltar Industries, Inc.(b) | 7,957,584 | ||||||
268,323 | Jeld-Wen Holding, Inc.(b) | 8,862,709 | ||||||
92,057 | Lennox International, Inc. | 15,225,307 | ||||||
142,414 | Owens Corning | 8,665,892 | ||||||
124,220 | Trex Co., Inc.(b) | 9,091,662 | ||||||
|
| |||||||
65,956,647 | ||||||||
|
| |||||||
Construction & Engineering—13.4% | ||||||||
120,525 | Argan, Inc. | 8,057,096 | ||||||
134,058 | EMCOR Group, Inc. | 8,812,973 | ||||||
147,267 | Jacobs Engineering Group, Inc. | 8,087,904 | ||||||
222,985 | MasTec, Inc.(b) | 9,844,788 | ||||||
222,451 | Quanta Services, Inc.(b) | 7,883,663 | ||||||
|
| |||||||
42,686,424 | ||||||||
|
| |||||||
Construction Machinery & Heavy Trucks—2.8% | ||||||||
126,349 | Oshkosh Corp. | 8,767,357 | ||||||
|
| |||||||
Construction Materials—20.9% | ||||||||
440,618 | Forterra, Inc.(b) | 8,477,490 | ||||||
357,496 | Headwaters, Inc.(b) | 8,494,105 | ||||||
72,587 | Martin Marietta Materials, Inc. | 15,982,932 | ||||||
354,735 | Summit Materials, Inc., Class A(b) | 9,102,500 | ||||||
141,101 | US Concrete, Inc.(b)(c) | 8,748,262 | ||||||
130,174 | Vulcan Materials Co. | 15,735,433 | ||||||
|
| |||||||
66,540,722 | ||||||||
|
| |||||||
Distributors—2.7% | ||||||||
71,869 | Pool Corp. | 8,596,970 | ||||||
|
| |||||||
Forest Products—5.7% | ||||||||
305,427 | Boise Cascade Co.(b) | 9,315,523 | ||||||
344,382 | Louisiana-Pacific Corp.(b) | 8,864,393 | ||||||
|
| |||||||
18,179,916 | ||||||||
|
| |||||||
Home Furnishings—5.0% | ||||||||
67,228 | Mohawk Industries, Inc.(b) | 15,784,462 | ||||||
|
| |||||||
Home Improvement Retail—5.1% | ||||||||
104,669 | Home Depot, Inc. (The) | 16,338,831 | ||||||
|
| |||||||
Homebuilding—18.5% | ||||||||
72,380 | Cavco Industries, Inc.(b) | 8,595,125 | ||||||
281,009 | MDC Holdings, Inc. | 8,714,089 | ||||||
7,911 | NVR, Inc.(b) | 16,702,099 | ||||||
701,228 | PulteGroup, Inc. | 15,896,839 | ||||||
243,282 | Toll Brothers, Inc. | 8,755,719 | ||||||
|
| |||||||
58,663,871 | ||||||||
|
| |||||||
Industrial Machinery—2.6% | ||||||||
339,983 | SPX Corp.(b) | 8,179,991 | ||||||
|
| |||||||
Multi-Utilities—2.6% | ||||||||
305,427 | MDU Resources Group, Inc. | 8,215,987 | ||||||
|
| |||||||
Total Common Stocks (Cost $299,657,162) | 317,911,178 | |||||||
|
|
Number of Shares | Value | |||||||
Money Market Fund—0.1% | ||||||||
253,639 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $253,639) | $ | 253,639 | |||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $299,910,801)—100.1% | 318,164,817 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—1.4% | ||||||||
4,653,236 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $4,653,236) | 4,653,236 | ||||||
|
| |||||||
Total Investments (Cost $304,564,037)—101.5% | 322,818,053 | |||||||
Other assets less liabilities—(1.5)% | (4,822,990 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 317,995,063 | ||||||
|
|
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, 2017. |
(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, 2017. |
(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 2I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 34 |
|
Schedule of Investments(a)
PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Gas Utilities—2.7% | ||||||||
27,189 | National Fuel Gas Co. | $ | 1,505,727 | |||||
|
| |||||||
Oil & Gas Exploration & Production—60.3% | ||||||||
45,154 | Anadarko Petroleum Corp. | 2,574,681 | ||||||
72,129 | Cabot Oil & Gas Corp. | 1,676,278 | ||||||
62,987 | ConocoPhillips | 3,017,707 | ||||||
64,458 | Continental Resources, Inc.(b) | 2,733,664 | ||||||
16,095 | Diamondback Energy, Inc.(b) | 1,606,925 | ||||||
30,807 | Energen Corp.(b) | 1,601,656 | ||||||
30,535 | EOG Resources, Inc. | 2,824,487 | ||||||
26,732 | EQT Corp. | 1,554,198 | ||||||
101,693 | Marathon Oil Corp. | 1,512,175 | ||||||
42,945 | Newfield Exploration Co.(b) | 1,486,756 | ||||||
43,427 | Noble Energy, Inc. | 1,403,995 | ||||||
22,624 | PDC Energy, Inc.(b) | 1,249,523 | ||||||
16,109 | Pioneer Natural Resources Co. | 2,786,696 | ||||||
82,826 | Rice Energy, Inc.(b) | 1,763,366 | ||||||
40,264 | RSP Permian, Inc.(b) | 1,532,045 | ||||||
194,617 | Southwestern Energy Co.(b) | 1,461,574 | ||||||
122,554 | Wildhorse Resource Development Corp.(b) | 1,337,064 | ||||||
121,635 | WPX Energy, Inc.(b) | 1,451,106 | ||||||
|
| |||||||
33,573,896 | ||||||||
|
| |||||||
Oil & Gas Refining & Marketing—37.0% | ||||||||
138,538 | Alon USA Energy, Inc. | 1,674,924 | ||||||
71,431 | CVR Energy, Inc.(c) | 1,563,625 | ||||||
144,450 | CVR Refining LP(b)(c) | 1,451,722 | ||||||
69,446 | Delek US Holdings, Inc. | 1,671,565 | ||||||
55,274 | HollyFrontier Corp. | 1,555,410 | ||||||
59,171 | Marathon Petroleum Corp. | 3,014,171 | ||||||
66,221 | PBF Energy, Inc., Class A | 1,478,053 | ||||||
37,899 | Phillips 66 | 3,015,244 | ||||||
90,887 | Tellurian, Inc.(b)(c) | 911,597 | ||||||
18,287 | Tesoro Corp. | 1,457,657 | ||||||
44,447 | Valero Energy Corp. | 2,871,721 | ||||||
|
| |||||||
20,665,689 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $55,648,867) | 55,745,312 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
84,512 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $84,512) | 84,512 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $55,733,379)—100.1% | 55,829,824 | |||||||
|
| |||||||
Number of Shares | Value | |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—2.2% | ||||||||
1,222,175 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $1,222,175) | $ | 1,222,175 | |||||
|
| |||||||
Total Investments (Cost $56,955,554)—102.3% | 57,051,999 | |||||||
Other assets less liabilities—(2.3)% | (1,291,504 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 55,760,495 | ||||||
|
|
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, 2017. |
(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, 2017. |
(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 2I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 35 |
|
Schedule of Investments(a)
PowerShares Dynamic Food & Beverage Portfolio (PBJ)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks—99.9% | ||||||||
Agricultural Products—13.7% | ||||||||
166,073 | Archer-Daniels-Midland Co. | $ | 7,597,840 | |||||
51,025 | Bunge Ltd. | 4,032,506 | ||||||
72,075 | Fresh Del Monte Produce, Inc. | 4,418,197 | ||||||
33,403 | Ingredion, Inc. | 4,135,959 | ||||||
|
| |||||||
20,184,502 | ||||||||
|
| |||||||
Distillers & Vintners—5.7% | ||||||||
48,752 | Constellation Brands, Inc., Class A | 8,411,670 | ||||||
|
| |||||||
Food Distributors—13.1% | ||||||||
101,478 | Andersons, Inc. (The) | 3,790,203 | ||||||
108,659 | SpartanNash Co. | 3,998,651 | ||||||
141,581 | Sysco Corp. | 7,485,388 | ||||||
93,702 | United Natural Foods, Inc.(b) | 3,891,444 | ||||||
|
| |||||||
19,165,686 | ||||||||
|
| |||||||
Food Retail—7.1% | ||||||||
226,985 | Kroger Co. (The) | 6,730,105 | ||||||
63,622 | Weis Markets, Inc. | 3,677,988 | ||||||
|
| |||||||
10,408,093 | ||||||||
|
| |||||||
Packaged Foods & Meats—46.5% | ||||||||
162,083 | Blue Buffalo Pet Products, Inc.(b) | 3,995,346 | ||||||
69,158 | Campbell Soup Co. | 3,979,351 | ||||||
100,852 | Conagra Brands, Inc. | 3,911,041 | ||||||
221,622 | Dean Foods Co. | 4,374,818 | ||||||
212,734 | Flowers Foods, Inc. | 4,171,714 | ||||||
123,202 | General Mills, Inc. | 7,085,347 | ||||||
68,921 | Hershey Co. (The) | 7,457,252 | ||||||
30,673 | J & J Snack Foods Corp. | 4,127,972 | ||||||
65,331 | John B. Sanfilippo & Son, Inc. | 4,801,829 | ||||||
100,109 | Kellogg Co. | 7,107,739 | ||||||
30,395 | Lancaster Colony Corp. | 3,826,730 | ||||||
197,796 | Pilgrim’s Pride Corp. | 5,134,784 | ||||||
49,187 | Post Holdings, Inc.(b) | 4,141,054 | ||||||
65,019 | Tyson Foods, Inc., Class A | 4,178,121 | ||||||
|
| |||||||
68,293,098 | ||||||||
|
| |||||||
Restaurants—8.5% | ||||||||
21,924 | Domino’s Pizza, Inc. | 3,976,794 | ||||||
51,853 | Papa John’s International, Inc. | 4,099,498 | ||||||
303,906 | Wendy’s Co. (The) | 4,479,575 | ||||||
|
| |||||||
12,555,867 | ||||||||
|
| |||||||
Soft Drinks—5.3% | ||||||||
68,360 | PepsiCo, Inc. | 7,743,821 | ||||||
|
| |||||||
Total Common Stocks (Cost $136,072,020) | 146,762,737 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
81,688 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(c) (Cost $81,688) | 81,688 | ||||||
|
| |||||||
Total Investments (Cost $136,153,708)—100.0% | 146,844,425 | |||||||
Other assets less liabilities—(0.0)% | (23,483 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 146,820,942 | ||||||
|
|
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, 2017. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 36 |
|
Schedule of Investments(a)
PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.1% | ||||||||
Airlines—20.0% | ||||||||
143,725 | Delta Air Lines, Inc. | $ | 6,530,864 | |||||
79,872 | Hawaiian Holdings, Inc.(b) | 4,337,049 | ||||||
112,109 | SkyWest, Inc. | 4,170,455 | ||||||
126,704 | Southwest Airlines Co. | 7,123,299 | ||||||
97,305 | United Continental Holdings, Inc.(b) | 6,831,784 | ||||||
|
| |||||||
28,993,451 | ||||||||
|
| |||||||
Broadcasting—7.5% | ||||||||
109,416 | CBS Corp., Class B | 7,282,729 | ||||||
48,438 | Scripps Networks Interactive, Inc., Class A | 3,619,287 | ||||||
|
| |||||||
10,902,016 | ||||||||
|
| |||||||
Cable & Satellite—3.0% | ||||||||
175,491 | MSG Networks, Inc., Class A(b) | 4,378,500 | ||||||
|
| |||||||
Casinos & Gaming—3.2% | ||||||||
193,519 | Scientific Games Corp., Class A(b) | 4,596,076 | ||||||
|
| |||||||
Hotels, Resorts & Cruise Lines—16.8% | ||||||||
281,664 | Belmond Ltd., Class A (United Kingdom)(b) | 3,492,634 | ||||||
281,463 | La Quinta Holdings, Inc.(b) | 3,971,443 | ||||||
126,035 | Marcus Corp. (The) | 4,259,983 | ||||||
40,680 | Marriott Vacations Worldwide Corp. | 4,482,122 | ||||||
75,950 | Royal Caribbean Cruises Ltd. | 8,096,270 | ||||||
|
| |||||||
24,302,452 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail—5.7% | ||||||||
4,430 | Priceline Group, Inc. (The)(b) | 8,181,413 | ||||||
|
| |||||||
Leisure Facilities—10.6% | ||||||||
57,951 | Cedar Fair LP | 4,153,348 | ||||||
234,168 | ClubCorp Holdings, Inc. | 3,149,560 | ||||||
172,816 | Intrawest Resorts Holdings, Inc.(b) | 4,075,001 | ||||||
188,988 | Planet Fitness, Inc., Class A | 3,930,951 | ||||||
|
| |||||||
15,308,860 | ||||||||
|
| |||||||
Movies & Entertainment—12.6% | ||||||||
126,229 | AMC Entertainment Holdings, Inc., Class A | 3,824,739 | ||||||
74,747 | Time Warner, Inc. | 7,420,135 | ||||||
165,415 | Viacom, Inc., Class B | 7,040,062 | ||||||
|
| |||||||
18,284,936 | ||||||||
|
| |||||||
Restaurants—20.7% | ||||||||
70,506 | Bob Evans Farms, Inc. | 4,705,571 | ||||||
187,113 | Bojangles’, Inc.(b) | 4,107,130 | ||||||
52,443 | Darden Restaurants, Inc. | 4,467,619 | ||||||
71,096 | Dave & Buster’s Entertainment, Inc.(b) | 4,550,855 | ||||||
21,243 | Domino’s Pizza, Inc. | 3,853,268 | ||||||
50,239 | Papa John’s International, Inc. | 3,971,895 | ||||||
294,446 | Wendy’s Co. (The) | 4,340,134 | ||||||
|
| |||||||
29,996,472 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $136,240,155) | 144,944,176 | |||||||
|
| |||||||
Number of Shares | Value | |||||||
Money Market Fund—0.0% | ||||||||
50,978 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(c) (Cost $50,978) | $ | 50,978 | |||||
|
| |||||||
Total Investments (Cost $136,291,133)—100.1% | 144,995,154 | |||||||
Other assets less liabilities—(0.1)% | (93,611 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 144,901,543 | ||||||
|
|
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, 2017. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 37 |
|
Schedule of Investments(a)
PowerShares Dynamic Media Portfolio (PBS)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks—100.0% | ||||||||
Advertising—5.2% | ||||||||
163,114 | Interpublic Group of Cos., Inc. (The) | $ | 3,844,597 | |||||
46,887 | Omnicom Group, Inc. | 3,850,360 | ||||||
|
| |||||||
7,694,957 | ||||||||
|
| |||||||
Broadcasting—21.0% | ||||||||
66,864 | AMC Networks, Inc., Class A(b) | 3,990,443 | ||||||
110,624 | CBS Corp., Class B | 7,363,133 | ||||||
135,633 | Discovery Communications, Inc., Class A(b) | 3,903,518 | ||||||
189,363 | E.W. Scripps Co. (The), Class A(b) | 4,219,008 | ||||||
57,572 | Nexstar Media Group, Inc., Class A | 3,972,468 | ||||||
48,975 | Scripps Networks Interactive, Inc., Class A | 3,659,412 | ||||||
100,535 | Sinclair Broadcast Group, Inc., Class A | 3,966,106 | ||||||
|
| |||||||
31,074,088 | ||||||||
|
| |||||||
Cable & Satellite—18.2% | ||||||||
22,612 | Charter Communications, Inc., Class A(b) | 7,804,758 | ||||||
118,487 | DISH Network Corp., Class A(b) | 7,635,303 | ||||||
177,438 | MSG Networks, Inc., Class A(b) | 4,427,078 | ||||||
1,446,856 | Sirius XM Holdings, Inc. | 7,161,937 | ||||||
|
| |||||||
27,029,076 | ||||||||
|
| |||||||
Diversified Support Services—2.6% | ||||||||
83,533 | Viad Corp. | 3,775,692 | ||||||
|
| |||||||
Internet Software & Services—21.8% | ||||||||
54,194 | Facebook, Inc., Class A(b) | 8,142,648 | ||||||
53,808 | IAC/InterActiveCorp.(b) | 4,466,602 | ||||||
238,310 | Match Group, Inc.(b) | 4,439,715 | ||||||
76,652 | Shutterstock, Inc.(b) | 3,313,666 | ||||||
161,541 | Yahoo!, Inc.(b) | 7,787,892 | ||||||
119,546 | Yelp, Inc., Class A(b) | 4,233,124 | ||||||
|
| |||||||
32,383,647 | ||||||||
|
| |||||||
IT Consulting & Other Services—2.6% | ||||||||
135,086 | Acxiom Corp.(b) | 3,903,985 | ||||||
|
| |||||||
Movies & Entertainment—15.7% | ||||||||
121,654 | Liberty Media Corp.-Liberty Formula One, Class A(b) | 4,125,287 | ||||||
75,578 | Time Warner, Inc. | 7,502,628 | ||||||
91,226 | Viacom, Inc., Class B | 3,882,579 | ||||||
66,850 | Walt Disney Co. (The) | 7,727,860 | ||||||
|
| |||||||
23,238,354 | ||||||||
|
| |||||||
Publishing—12.9% | ||||||||
75,422 | John Wiley & Sons, Inc., Class A | 3,974,739 | ||||||
63,060 | Meredith Corp. | 3,692,163 | ||||||
271,270 | New York Times Co. (The), Class A | 3,919,852 | ||||||
302,207 | News Corp., Class A | 3,844,073 | ||||||
85,699 | Scholastic Corp. | 3,704,768 | ||||||
|
| |||||||
19,135,595 | ||||||||
|
| |||||||
Total Common Stocks (Cost $137,371,023) | 148,235,394 | |||||||
|
| |||||||
Number of Shares | Value | |||||||
Money Market Fund—0.1% | ||||||||
113,996 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(c) (Cost $113,996) | $ | 113,996 | |||||
|
| |||||||
Total Investments (Cost $137,485,019)—100.1% | 148,349,390 | |||||||
Other assets less liabilities—(0.1)% | (119,034 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 148,230,356 | ||||||
|
|
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, 2017. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 38 |
|
Schedule of Investments(a)
PowerShares Dynamic Networking Portfolio (PXQ)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks—99.9% | ||||||||
Application Software—5.0% | ||||||||
16,142 | Citrix Systems, Inc.(b) | $ | 1,306,533 | |||||
|
| |||||||
Communications Equipment—54.4% | ||||||||
11,095 | Acacia Communications, Inc.(b)(c) | 508,595 | ||||||
32,810 | ADTRAN, Inc. | 656,200 | ||||||
5,971 | Arista Networks, Inc.(b) | 833,791 | ||||||
26,800 | ARRIS International PLC(b) | 696,532 | ||||||
27,395 | Ciena Corp.(b) | 627,620 | ||||||
37,903 | Cisco Systems, Inc. | 1,291,355 | ||||||
18,658 | CommScope Holding Co., Inc.(b) | 784,382 | ||||||
113,146 | Extreme Networks, Inc.(b) | 884,236 | ||||||
4,880 | F5 Networks, Inc.(b) | 630,154 | ||||||
20,609 | Finisar Corp.(b) | 470,710 | ||||||
8,016 | InterDigital, Inc. | 720,638 | ||||||
24,754 | Juniper Networks, Inc. | 744,353 | ||||||
14,451 | Lumentum Holdings, Inc.(b) | 617,780 | ||||||
16,258 | Motorola Solutions, Inc. | 1,397,700 | ||||||
12,785 | NETGEAR, Inc.(b) | 602,813 | ||||||
18,742 | NetScout Systems, Inc.(b) | 705,636 | ||||||
73,848 | Oclaro, Inc.(b)(c) | 591,523 | ||||||
13,064 | Plantronics, Inc. | 713,294 | ||||||
14,386 | Ubiquiti Networks, Inc.(b) | 741,167 | ||||||
|
| |||||||
14,218,479 | ||||||||
|
| |||||||
Consumer Electronics—2.6% | ||||||||
13,454 | Garmin Ltd. | 684,001 | ||||||
|
| |||||||
Electronic Components—5.1% | ||||||||
18,440 | Amphenol Corp., Class A | 1,333,396 | ||||||
|
| |||||||
Internet Software & Services—6.6% | ||||||||
7,625 | LogMeIn, Inc. | 861,625 | ||||||
35,634 | Mimecast Ltd.(b) | 861,274 | ||||||
|
| |||||||
1,722,899 | ||||||||
|
| |||||||
Systems Software—21.0% | ||||||||
12,927 | Check Point Software Technologies Ltd. (Israel)(b) | 1,344,537 | ||||||
18,904 | Fortinet, Inc.(b) | 737,256 | ||||||
8,655 | Proofpoint, Inc.(b) | 652,328 | ||||||
45,145 | Symantec Corp. | 1,427,936 | ||||||
14,219 | VMware, Inc., Class A(b)(c) | 1,338,292 | ||||||
|
| |||||||
5,500,349 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals—5.2% | ||||||||
9,450 | Apple, Inc. | 1,357,493 | ||||||
|
| |||||||
Total Common Stocks (Cost $22,930,088) | 26,123,150 | |||||||
|
| |||||||
Money Market Fund—0.3% | ||||||||
69,451 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $69,451) | 69,451 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $22,999,539)—100.2% | 26,192,601 | |||||||
|
| |||||||
Number of Shares | Value | |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—7.0% | ||||||||
1,830,776 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $1,830,776) | $ | 1,830,776 | |||||
|
| |||||||
Total Investments (Cost $24,830,315)—107.2% | 28,023,377 | |||||||
Other assets less liabilities—(7.2)% | (1,878,293 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 26,145,084 | ||||||
|
|
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, 2017. |
(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, 2017. |
(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 2I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 39 |
|
Schedule of Investments(a)
PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Oil & Gas Drilling—25.6% | ||||||||
98,926 | Atwood Oceanics, Inc.(b) | $ | 774,591 | |||||
61,480 | Diamond Offshore Drilling, Inc.(b) | 886,542 | ||||||
102,023 | Ensco PLC, Class A | 804,962 | ||||||
28,675 | Helmerich & Payne, Inc. | 1,738,852 | ||||||
71,212 | Nabors Industries Ltd. | 736,332 | ||||||
39,008 | Patterson-UTI Energy, Inc. | 844,328 | ||||||
57,748 | Rowan Cos. PLC, Class A(b) | 812,514 | ||||||
522,034 | Seadrill Ltd. (United Kingdom)(b) | 360,099 | ||||||
137,778 | Transocean Ltd.(b) | 1,519,691 | ||||||
|
| |||||||
8,477,911 | ||||||||
|
| |||||||
Oil & Gas Equipment & Services—65.3% | ||||||||
61,381 | Archrock Partners LP | 1,003,579 | ||||||
77,363 | Archrock, Inc. | 912,883 | ||||||
32,881 | Baker Hughes, Inc. | 1,952,145 | ||||||
26,913 | Basic Energy Services, Inc.(b) | 731,226 | ||||||
17,407 | Core Laboratories NV | 1,929,044 | ||||||
16,720 | Dril-Quip, Inc.(b) | 861,916 | ||||||
34,375 | Exterran Corp.(b) | 940,844 | ||||||
50,611 | Forum Energy Technologies, Inc.(b) | 855,326 | ||||||
37,063 | Halliburton Co. | 1,700,451 | ||||||
61,606 | Key Energy Services, Inc.(b)(c) | 1,458,830 | ||||||
49,941 | Mammoth Energy Services, Inc.(b) | 963,861 | ||||||
140,022 | McDermott International, Inc.(b) | 915,744 | ||||||
49,645 | National Oilwell Varco, Inc. | 1,736,086 | ||||||
37,998 | Oceaneering International, Inc. | 1,002,767 | ||||||
30,472 | Oil States International, Inc.(b) | 906,542 | ||||||
54,224 | RPC, Inc.(c) | 985,250 | ||||||
24,504 | Schlumberger Ltd. | 1,778,745 | ||||||
61,210 | USA Compression Partners LP(c) | 1,025,268 | ||||||
|
| |||||||
21,660,507 | ||||||||
|
| |||||||
Oil & Gas Storage & Transportation—9.1% | ||||||||
249,518 | Scorpio Tankers, Inc. (Monaco) | 1,097,879 | ||||||
103,013 | Teekay Corp. (Bermuda)(c) | 894,153 | ||||||
192,729 | Teekay Offshore Partners LP(c) | 1,023,391 | ||||||
|
| |||||||
3,015,423 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $38,221,551) | 33,153,841 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
49,691 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $49,691) | 49,691 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $38,271,242)—100.1% | 33,203,532 | |||||||
|
| |||||||
Number of Shares | Value | |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—12.0% | ||||||||
3,984,750 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $3,984,750) | $ | 3,984,750 | |||||
|
| |||||||
Total Investments (Cost $42,255,992)—112.1% | 37,188,282 | |||||||
Other assets less liabilities—(12.1)% | (4,014,708 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 33,173,574 | ||||||
|
|
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, 2017. |
(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, 2017. |
(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 2I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 40 |
|
Schedule of Investments(a)
PowerShares Dynamic Pharmaceuticals Portfolio (PJP)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks—100.0% | ||||||||
Biotechnology—27.7% | ||||||||
222,259 | Amgen, Inc. | $ | 36,299,340 | |||||
108,661 | Biogen, Inc.(b) | 29,469,950 | ||||||
323,746 | Celgene Corp.(b) | 40,160,691 | ||||||
557,528 | Gilead Sciences, Inc. | 38,218,544 | ||||||
2,250,200 | Heron Therapeutics, Inc.(b)(c) | 34,540,570 | ||||||
300,856 | Ligand Pharmaceuticals, Inc.(b) | 33,446,162 | ||||||
|
| |||||||
212,135,257 | ||||||||
|
| |||||||
Health Care Equipment—8.4% | ||||||||
681,509 | Abbott Laboratories | 29,741,053 | ||||||
614,005 | Baxter International, Inc. | 34,187,798 | ||||||
|
| |||||||
63,928,851 | ||||||||
|
| |||||||
Pharmaceuticals—63.9% | ||||||||
1,433,751 | Akorn, Inc.(b) | 47,958,971 | ||||||
156,565 | Allergan PLC | 38,179,941 | ||||||
693,476 | Bristol-Myers Squibb Co. | 38,869,330 | ||||||
1,838,396 | Depomed, Inc.(b) | 22,042,368 | ||||||
374,810 | Eli Lilly & Co. | 30,756,909 | ||||||
2,148,626 | Impax Laboratories, Inc.(b) | 30,188,195 | ||||||
317,792 | Johnson & Johnson | 39,237,778 | ||||||
1,313,802 | Lannett Co., Inc.(b)(c) | 34,158,852 | ||||||
596,847 | Medicines Co. (The)(b)(c) | 29,436,494 | ||||||
587,317 | Merck & Co., Inc. | 36,607,469 | ||||||
730,926 | Mylan NV(b) | 27,300,086 | ||||||
368,036 | Perrigo Co. PLC | 27,212,582 | ||||||
1,135,500 | Pfizer, Inc. | 38,516,160 | ||||||
538,461 | Prestige Brands Holdings, Inc.(b) | 30,913,046 | ||||||
1,866,116 | Valeant Pharmaceuticals International, Inc.(b) | 17,261,573 | ||||||
|
| |||||||
488,639,754 | ||||||||
|
| |||||||
Total Common Stocks (Cost $820,510,384) | 764,703,862 | |||||||
|
| |||||||
Money Market Fund—0.0% | ||||||||
48,140 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $48,140) | 48,140 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $820,558,524)—100.0% | 764,752,002 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—8.6% | ||||||||
65,681,100 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $65,681,100) | 65,681,100 | ||||||
|
| |||||||
Total Investments (Cost $886,239,624)—108.6% | 830,433,102 | |||||||
Other assets less liabilities—(8.6)% | (65,524,631 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 764,908,471 | ||||||
|
|
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, 2017. |
(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, 2017. |
(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 2I. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 41 |
|
Schedule of Investments(a)
PowerShares Dynamic Retail Portfolio (PMR)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks—100.0% | ||||||||
Apparel Retail—16.0% | ||||||||
4,512 | Burlington Stores, Inc.(b) | $ | 446,327 | |||||
26,661 | Chico’s FAS, Inc. | 368,455 | ||||||
3,924 | Children’s Place, Inc. (The) | 450,475 | ||||||
23,002 | Francesca’s Holdings Corp.(b) | 362,972 | ||||||
10,444 | Ross Stores, Inc. | 678,860 | ||||||
|
| |||||||
2,307,089 | ||||||||
|
| |||||||
Automotive Retail—12.0% | ||||||||
5,852 | Asbury Automotive Group, Inc.(b) | 358,143 | ||||||
11,415 | Camping World Holdings, Inc., Class A | 352,952 | ||||||
4,857 | Group 1 Automotive, Inc. | 334,890 | ||||||
7,537 | Penske Automotive Group, Inc. | 359,590 | ||||||
17,047 | Sonic Automotive, Inc., Class A | 334,121 | ||||||
|
| |||||||
1,739,696 | ||||||||
|
| |||||||
Computer & Electronics Retail—5.7% | ||||||||
15,939 | Best Buy Co., Inc. | 825,800 | ||||||
|
| |||||||
Distributors—2.8% | ||||||||
3,351 | Pool Corp. | 400,847 | ||||||
|
| |||||||
Diversified Support Services—2.8% | ||||||||
12,970 | Copart, Inc.(b) | 400,773 | ||||||
|
| |||||||
Drug Retail—4.9% | ||||||||
8,119 | Walgreens Boots Alliance, Inc. | 702,618 | ||||||
|
| |||||||
Food Retail—14.7% | ||||||||
8,084 | Ingles Markets, Inc., Class A | 377,523 | ||||||
21,412 | Kroger Co. (The) | 634,866 | ||||||
26,209 | Smart & Final Stores, Inc.(b) | 309,266 | ||||||
6,002 | Weis Markets, Inc. | 346,975 | ||||||
12,368 | Whole Foods Market, Inc. | 449,824 | ||||||
|
| |||||||
2,118,454 | ||||||||
|
| |||||||
Forest Products—3.0% | ||||||||
14,244 | Boise Cascade Co.(b) | 434,442 | ||||||
|
| |||||||
General Merchandise Stores—5.9% | ||||||||
7,502 | Big Lots, Inc. | 378,776 | ||||||
12,448 | Ollie’s Bargain Outlet Holdings, Inc.(b) | 476,758 | ||||||
|
| |||||||
855,534 | ||||||||
|
| |||||||
Home Improvement Retail—5.3% | ||||||||
4,881 | Home Depot, Inc. (The) | 761,924 | ||||||
|
| |||||||
Homefurnishing Retail—3.6% | ||||||||
14,311 | Aaron’s, Inc. | 514,337 | ||||||
|
| |||||||
Hypermarkets & Super Centers—12.7% | ||||||||
4,017 | Costco Wholesale Corp. | 713,098 | ||||||
4,305 | PriceSmart, Inc. | 374,320 | ||||||
9,906 | Wal-Mart Stores, Inc. | 744,733 | ||||||
|
| |||||||
1,832,151 | ||||||||
|
| |||||||
Specialty Stores—7.7% | ||||||||
4,269 | Tiffany & Co. | 391,254 | ||||||
2,573 | Ulta Beauty, Inc.(b) | 724,145 | ||||||
|
| |||||||
1,115,399 | ||||||||
|
|
Number of Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Trading Companies & Distributors—2.9% | ||||||||
10,921 | Rush Enterprises, Inc., Class A(b) | $ | 412,268 | |||||
|
| |||||||
Total Common Stocks (Cost $13,543,180) | 14,421,332 | |||||||
|
| |||||||
Money Market Fund—0.4% | ||||||||
58,040 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(c) (Cost $58,040) | 58,040 | ||||||
|
| |||||||
Total Investments (Cost $13,601,220)—100.4% | 14,479,372 | |||||||
Other assets less liabilities—(0.4)% | (50,736 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 14,428,636 | ||||||
|
|
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, 2017. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 42 |
|
Schedule of Investments(a)
PowerShares Dynamic Semiconductors Portfolio (PSI)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks—100.0% | ||||||||
Electronic Components—2.4% | ||||||||
316,872 | Knowles Corp.(b) | $ | 5,618,140 | |||||
|
| |||||||
Semiconductor Equipment—40.4% | ||||||||
97,646 | Advanced Energy Industries, Inc.(b) | 7,206,275 | ||||||
593,153 | Amkor Technology, Inc.(b) | 6,987,342 | ||||||
305,242 | Applied Materials, Inc. | 12,395,878 | ||||||
280,025 | Brooks Automation, Inc. | 7,073,431 | ||||||
276,807 | Entegris, Inc.(b) | 6,864,814 | ||||||
66,963 | KLA-Tencor Corp. | 6,577,106 | ||||||
292,393 | Kulicke & Soffa Industries, Inc. (Singapore)(b) | 6,526,212 | ||||||
93,759 | Lam Research Corp. | 13,580,991 | ||||||
89,458 | MKS Instruments, Inc. | 7,000,088 | ||||||
217,745 | Nanometrics, Inc.(b) | 6,870,943 | ||||||
275,530 | Rudolph Technologies, Inc.(b) | 6,750,485 | ||||||
207,106 | Teradyne, Inc. | 7,304,629 | ||||||
|
| |||||||
95,138,194 | ||||||||
|
| |||||||
Semiconductors—57.2% | ||||||||
420,429 | Advanced Micro Devices, Inc.(b) | 5,591,706 | ||||||
135,239 | Analog Devices, Inc. | 10,305,212 | ||||||
52,411 | Broadcom Ltd. | 11,572,873 | ||||||
108,472 | Cirrus Logic, Inc.(b) | 6,980,173 | ||||||
305,065 | Intel Corp. | 11,028,100 | ||||||
376,047 | Marvell Technology Group Ltd. (Bermuda) | 5,648,226 | ||||||
134,204 | Maxim Integrated Products, Inc. | 5,925,107 | ||||||
82,801 | Microchip Technology, Inc. | 6,258,100 | ||||||
470,081 | Micron Technology, Inc.(b) | 13,007,141 | ||||||
68,273 | Monolithic Power Systems, Inc. | 6,246,979 | ||||||
109,845 | NVIDIA Corp. | 11,456,833 | ||||||
385,426 | ON Semiconductor Corp.(b) | 5,465,341 | ||||||
91,281 | Power Integrations, Inc. | 6,019,982 | ||||||
173,254 | Semtech Corp.(b) | 5,916,624 | ||||||
82,877 | Silicon Laboratories, Inc.(b) | 5,896,698 | ||||||
63,166 | Skyworks Solutions, Inc. | 6,300,177 | ||||||
143,083 | Texas Instruments, Inc. | 11,329,312 | ||||||
|
| |||||||
134,948,584 | ||||||||
|
| |||||||
Total Common Stocks (Cost $191,229,166) | 235,704,918 | |||||||
|
| |||||||
Money Market Fund—0.0% | ||||||||
95,816 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(c) (Cost $95,816) | 95,816 | ||||||
|
| |||||||
Total Investments (Cost $191,324,982)—100.0% | 235,800,734 | |||||||
Other assets less liabilities—(0.0)% | (101,946 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 235,698,788 | ||||||
|
|
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, 2017. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 43 |
|
Schedule of Investments(a)
PowerShares Dynamic Software Portfolio (PSJ)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks—100.1% | ||||||||
Application Software—38.2% | ||||||||
40,439 | Adobe Systems, Inc.(b) | $ | 5,408,312 | |||||
45,114 | Aspen Technology, Inc.(b) | 2,774,060 | ||||||
55,171 | Autodesk, Inc.(b) | 4,969,252 | ||||||
85,157 | Cadence Design Systems, Inc.(b) | 2,773,563 | ||||||
72,414 | CDK Global, Inc. | 4,707,634 | ||||||
20,016 | Fair Isaac Corp. | 2,711,768 | ||||||
39,813 | Intuit, Inc. | 4,984,986 | ||||||
47,945 | PTC, Inc.(b) | 2,591,427 | ||||||
77,778 | RealPage, Inc.(b) | 2,881,675 | ||||||
67,473 | Synopsys, Inc.(b) | 4,972,760 | ||||||
|
| |||||||
38,775,437 | ||||||||
|
| |||||||
Communications Equipment—5.2% | ||||||||
29,853 | InterDigital, Inc. | 2,683,785 | ||||||
69,804 | NetScout Systems, Inc.(b) | 2,628,120 | ||||||
|
| |||||||
5,311,905 | ||||||||
|
| |||||||
Data Processing & Outsourced Services—5.5% | ||||||||
68,347 | Black Knight Financial Services, Inc., Class A(b) | 2,829,566 | ||||||
27,929 | Jack Henry & Associates, Inc. | 2,706,879 | ||||||
|
| |||||||
5,536,445 | ||||||||
|
| |||||||
Education Services—2.7% | ||||||||
146,105 | K12, Inc.(b) | 2,754,079 | ||||||
|
| |||||||
Health Care Technology—19.8% | ||||||||
86,756 | Cerner Corp.(b) | 5,617,451 | ||||||
107,999 | HealthStream, Inc.(b) | 3,001,292 | ||||||
225,959 | Inovalon Holdings, Inc., Class A(b) | 2,767,998 | ||||||
46,507 | Medidata Solutions, Inc.(b) | 3,042,953 | ||||||
169,214 | Quality Systems, Inc.(b) | 2,412,992 | ||||||
60,145 | Veeva Systems, Inc., Class A(b) | 3,224,975 | ||||||
|
| |||||||
20,067,661 | ||||||||
|
| |||||||
Home Entertainment Software—8.0% | ||||||||
55,457 | Electronic Arts, Inc.(b) | 5,258,433 | ||||||
45,309 | Take-Two Interactive Software, Inc.(b) | 2,847,670 | ||||||
|
| |||||||
8,106,103 | ||||||||
|
| |||||||
Internet Software & Services—6.0% | ||||||||
28,398 | LogMeIn, Inc. | 3,208,974 | ||||||
102,588 | MINDBODY, Inc., Class A(b) | 2,908,370 | ||||||
|
| |||||||
6,117,344 | ||||||||
|
| |||||||
Systems Software—14.7% | ||||||||
111,632 | Barracuda Networks, Inc.(b) | 2,269,478 | ||||||
51,244 | CommVault Systems, Inc.(b) | 2,585,260 | ||||||
90,446 | Progress Software Corp. | 2,688,055 | ||||||
32,232 | Proofpoint, Inc.(b) | 2,429,326 | ||||||
52,958 | VMware, Inc., Class A(b) | 4,984,407 | ||||||
|
| |||||||
14,956,526 | ||||||||
|
| |||||||
Total Common Stocks (Cost $89,402,442) | 101,625,500 | |||||||
|
| |||||||
Number of Shares | Value | |||||||
Money Market Fund—0.0% | ||||||||
24,343 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(c) (Cost $24,343) | $ | 24,343 | |||||
|
| |||||||
Total Investments (Cost $89,426,785)—100.1% | 101,649,843 | |||||||
Other assets less liabilities—(0.1)% | (104,473 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 101,545,370 | ||||||
|
|
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, 2017. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 44 |
|
(This Page Intentionally Left Blank)
| 45 |
|
Statements of Assets and Liabilities
April 30, 2017
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) | $ | 230,538,090 | $ | 317,911,178 | $ | 55,745,312 | $ | 146,762,737 | $ | 144,944,176 | ||||||||||
Affiliated investments, at value | 31,201,422 | 4,906,875 | 1,306,687 | 81,688 | 50,978 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total investments, at value | 261,739,512 | 322,818,053 | 57,051,999 | 146,844,425 | 144,995,154 | |||||||||||||||
Receivables: | ||||||||||||||||||||
Securities lending | 361,716 | 2,849 | 7,848 | — | — | |||||||||||||||
Dividends | 25 | 42,123 | 42 | 104,475 | 28,945 | |||||||||||||||
Investments sold | — | — | — | — | — | |||||||||||||||
Expenses absorbed | — | — | — | — | — | |||||||||||||||
Shares sold | — | — | — | — | 243 | |||||||||||||||
Other assets | 988 | 690 | 710 | 1,029 | 808 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Assets | 262,102,241 | 322,863,715 | 57,060,599 | 146,949,929 | 145,025,150 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Liabilities: | ||||||||||||||||||||
Due to custodian | 91,804 | 744 | — | — | — | |||||||||||||||
Payables: | ||||||||||||||||||||
Collateral upon return of securities loaned | 31,201,422 | 4,653,236 | 1,222,175 | — | — | |||||||||||||||
Shares repurchased | — | — | — | — | — | |||||||||||||||
Expenses recaptured | — | 1,712 | — | — | — | |||||||||||||||
Accrued advisory fees | 94,362 | 125,411 | 17,283 | 60,280 | 56,802 | |||||||||||||||
Accrued trustees’ and officer’s fees | 29,644 | 18,913 | 21,046 | 25,324 | 19,745 | |||||||||||||||
Accrued expenses | 54,181 | 68,636 | 39,600 | 43,383 | 47,060 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Liabilities | 31,471,413 | 4,868,652 | 1,300,104 | 128,987 | 123,607 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets | $ | 230,630,828 | $ | 317,995,063 | $ | 55,760,495 | $ | 146,820,942 | $ | 144,901,543 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets Consist of: | ||||||||||||||||||||
Shares of beneficial interest | $ | 425,491,366 | $ | 328,224,359 | $ | 167,480,483 | $ | 210,444,679 | $ | 181,331,374 | ||||||||||
Undistributed net investment income (loss) | 839,252 | (17,802 | ) | 308,344 | (24,151 | ) | 85,767 | |||||||||||||
Undistributed net realized gain (loss) | (206,671,797 | ) | (28,465,510 | ) | (112,124,777 | ) | (74,290,303 | ) | (45,219,619 | ) | ||||||||||
Net unrealized appreciation (depreciation) | 10,972,007 | 18,254,016 | 96,445 | 10,690,717 | 8,704,021 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets | $ | 230,630,828 | $ | 317,995,063 | $ | 55,760,495 | $ | 146,820,942 | $ | 144,901,543 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 5,350,000 | 10,750,000 | 2,750,000 | 4,350,000 | 3,450,000 | |||||||||||||||
Net asset value | $ | 43.11 | $ | 29.58 | $ | 20.28 | $ | 33.75 | $ | 42.00 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Market price | $ | 43.13 | $ | 29.60 | $ | 20.28 | $ | 33.74 | $ | 42.00 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Unaffiliated investments, at cost | $ | 219,566,083 | $ | 299,657,162 | $ | 55,648,867 | $ | 136,072,020 | $ | 136,240,155 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Affiliated investments, at cost | $ | 31,201,422 | $ | 4,906,875 | $ | 1,306,687 | $ | 81,688 | $ | 50,978 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total investments, at cost | $ | 250,767,505 | $ | 304,564,037 | $ | 56,955,554 | $ | 136,153,708 | $ | 136,291,133 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
(a) Includes securities on loan with an aggregate value of | $ | 29,847,925 | $ | 4,451,290 | $ | 1,186,669 | $ | — | $ | — | ||||||||||
|
|
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 46 |
|
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) | ||||||||||||||||||||
$ | 148,235,394 | $ | 26,123,150 | $ | 33,153,841 | $ | 764,703,862 | $ | 14,421,332 | $ | 235,704,918 | $ | 101,625,500 | |||||||||||||
113,996 | 1,900,227 | 4,034,441 | 65,729,240 | 58,040 | 95,816 | 24,343 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
148,349,390 | 28,023,377 | 37,188,282 | 830,433,102 | 14,479,372 | 235,800,734 | 101,649,843 | ||||||||||||||||||||
— | 11,942 | 6,070 | 199,182 | — | — | — | ||||||||||||||||||||
12,915 | 29 | 8,165 | 458,672 | 1,599 | 72,191 | 22 | ||||||||||||||||||||
— | — | 32,135 | 3,031,804 | — | — | — | ||||||||||||||||||||
— | — | — | — | 525 | — | — | ||||||||||||||||||||
— | — | — | — | — | — | — | ||||||||||||||||||||
730 | 633 | 668 | 2,290 | 634 | 674 | 709 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
148,363,035 | 28,035,981 | 37,235,320 | 834,125,050 | 14,482,130 | 235,873,599 | 101,650,574 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
— | — | — | — | — | — | — | ||||||||||||||||||||
— | 1,830,776 | 3,984,750 | 65,681,100 | — | — | — | ||||||||||||||||||||
— | — | — | 3,032,745 | — | — | — | ||||||||||||||||||||
— | — | — | — | — | 7,634 | — | ||||||||||||||||||||
65,734 | 4,488 | 11,671 | 312,311 | — | 92,165 | 40,477 | ||||||||||||||||||||
21,435 | 17,546 | 26,345 | 45,246 | 16,750 | 17,625 | 18,313 | ||||||||||||||||||||
45,510 | 38,087 | 38,980 | 145,177 | 36,744 | 57,387 | 46,414 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
132,679 | 1,890,897 | 4,061,746 | 69,216,579 | 53,494 | 174,811 | 105,204 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 148,230,356 | $ | 26,145,084 | $ | 33,173,574 | $ | 764,908,471 | $ | 14,428,636 | $ | 235,698,788 | $ | 101,545,370 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 214,735,022 | $ | 57,418,605 | $ | 240,896,057 | $ | 1,038,456,782 | $ | 36,551,185 | $ | 223,089,006 | $ | 113,591,531 | |||||||||||||
60,240 | 121,195 | (25,435 | ) | 747,015 | (9,481 | ) | 31,204 | (103,946 | ) | |||||||||||||||||
(77,429,277 | ) | (34,587,778 | ) | (202,629,338 | ) | (218,488,804 | ) | (22,991,220 | ) | (31,897,174 | ) | (24,165,273 | ) | |||||||||||||
10,864,371 | 3,193,062 | (5,067,710 | ) | (55,806,522 | ) | 878,152 | 44,475,752 | 12,223,058 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 148,230,356 | $ | 26,145,084 | $ | 33,173,574 | $ | 764,908,471 | $ | 14,428,636 | $ | 235,698,788 | $ | 101,545,370 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
5,300,000 | 600,000 | 3,100,000 | 12,600,000 | 400,000 | 5,550,000 | 1,900,000 | ||||||||||||||||||||
$ | 27.97 | $ | 43.58 | $ | 10.70 | $ | 60.71 | $ | 36.07 | $ | 42.47 | $ | 53.44 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 27.98 | $ | 43.59 | $ | 10.70 | $ | 60.71 | $ | 36.05 | $ | 42.51 | $ | 53.39 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 137,371,023 | $ | 22,930,088 | $ | 38,221,551 | $ | 820,510,384 | $ | 13,543,180 | $ | 191,229,166 | $ | 89,402,442 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 113,996 | $ | 1,900,227 | $ | 4,034,441 | $ | 65,729,240 | $ | 58,040 | $ | 95,816 | $ | 24,343 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 137,485,019 | $ | 24,830,315 | $ | 42,255,992 | $ | 886,239,624 | $ | 13,601,220 | $ | 191,324,982 | $ | 89,426,785 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | — | $ | 1,776,697 | $ | 3,810,878 | $ | 64,196,201 | $ | — | $ | — | $ | — | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 47 |
|
For the year ended April 30, 2017
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 | $ | 647,546 | $ | 1,354,079 | $ | 1,079,854 | $ | 2,885,742 | $ | 1,818,452 | ||||||||||
Affiliated dividend income | 422 | 423 | 682 | 539 | 401 | |||||||||||||||
Securities lending income | 2,797,911 | 7,208 | 166,703 | — | — | |||||||||||||||
Foreign withholding tax | — | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Income | 3,445,879 | 1,361,710 | 1,247,239 | 2,886,281 | 1,818,853 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Expenses: | ||||||||||||||||||||
Advisory fees | 1,237,849 | 791,410 | 322,598 | 913,291 | 633,102 | |||||||||||||||
Sub-licensing fees | 74,270 | 47,484 | 19,372 | 54,797 | 37,986 | |||||||||||||||
Accounting & administration fees | 44,620 | 42,054 | 36,827 | 41,084 | 36,631 | |||||||||||||||
Professional fees | 27,922 | 26,250 | 39,740 | 28,269 | 28,214 | |||||||||||||||
Trustees’ and officer’s fees | 11,225 | 9,163 | 8,337 | 10,900 | 9,582 | |||||||||||||||
Custodian & transfer agent fees | 7,286 | 4,543 | 5,565 | 3,367 | 3,835 | |||||||||||||||
Recapture (Note 3) | — | 44,936 | — | — | — | |||||||||||||||
Taxes | — | — | 109,764 | — | — | |||||||||||||||
Other expenses | 39,787 | 23,983 | 22,778 | 33,011 | 24,732 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Expenses | 1,442,959 | 989,823 | 564,981 | 1,084,719 | 774,082 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Less: Waivers | (206 | ) | (170 | ) | (49,045 | ) | (268 | ) | (200 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Expenses | 1,442,753 | 989,653 | 515,936 | 1,084,451 | 773,882 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Investment Income (Loss) | 2,003,126 | 372,057 | 731,303 | 1,801,830 | 1,044,971 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Realized and Unrealized Gain (Loss): | ||||||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||||||
Investment securities | (39,672,361 | ) | (8,211,696 | ) | (13,533,257 | ) | (11,797,763 | ) | (11,169,266 | ) | ||||||||||
In-kind redemptions | 27,922,361 | 21,627,657 | 16,358,892 | 27,666,452 | 21,705,393 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized gain (loss) | (11,750,000 | ) | 13,415,961 | 2,825,635 | 15,868,689 | 10,536,127 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net change in unrealized appreciation (depreciation) on investment securities | 31,645,703 | 10,573,563 | (6,397,391 | ) | (2,278,113 | ) | 7,527,722 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized and unrealized gain (loss) | 19,895,703 | 23,989,524 | (3,571,756 | ) | 13,590,576 | 18,063,849 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 21,898,829 | $ | 24,361,581 | $ | (2,840,453 | ) | $ | 15,392,406 | $ | 19,108,820 | |||||||||
|
|
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 48 |
|
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) | ||||||||||||||||||||
$ | 838,441 | $ | 233,121 | $ | 444,713 | $ | 11,818,736 | $ | 259,231 | $ | 1,346,050 | $ | 442,930 | |||||||||||||
304 | 224 | 225 | 1,850 | 192 | 330 | 221 | ||||||||||||||||||||
— | 60,786 | 50,513 | 1,356,769 | 10,544 | — | — | ||||||||||||||||||||
— | — | (11,020 | ) | — | — | — | — | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
838,745 | 294,131 | 484,431 | 13,177,355 | 269,967 | 1,346,380 | 443,151 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
497,658 | 124,912 | 220,364 | 4,861,245 | 96,830 | 568,318 | 428,966 | ||||||||||||||||||||
29,859 | 7,502 | 13,235 | 291,673 | 5,815 | 34,099 | 25,738 | ||||||||||||||||||||
36,827 | 36,827 | 36,827 | 174,697 | 36,827 | 36,853 | 36,827 | ||||||||||||||||||||
26,272 | 25,588 | 27,925 | 37,186 | 25,541 | 26,116 | 26,533 | ||||||||||||||||||||
8,700 | 7,674 | 7,993 | 23,894 | 7,625 | 8,629 | 8,568 | ||||||||||||||||||||
3,658 | 3,803 | 4,448 | 9,787 | 3,525 | 3,994 | 3,327 | ||||||||||||||||||||
— | — | — | — | — | 15,074 | — | ||||||||||||||||||||
— | — | — | — | — | — | — | ||||||||||||||||||||
24,219 | 17,021 | 21,074 | 91,952 | 16,460 | 22,999 | 21,680 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
627,193 | 223,327 | 331,866 | 5,490,434 | 192,623 | 716,082 | 551,639 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(278 | ) | (66,031 | ) | (54,300 | ) | (860 | ) | (70,700 | ) | (148 | ) | (11,243 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
626,915 | 157,296 | 277,566 | 5,489,574 | 121,923 | 715,934 | 540,396 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
211,830 | 136,835 | 206,865 | 7,687,781 | 148,044 | 630,446 | (97,245 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(8,813,551 | ) | (723,228 | ) | (12,986,255 | ) | (133,394,162 | ) | (3,995,603 | ) | (2,086,530 | ) | (4,253,281 | ) | |||||||||||||
10,349,071 | 4,737,381 | 2,778,246 | 76,415,974 | 2,380,008 | 12,594,121 | 13,562,971 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
1,535,520 | 4,014,153 | (10,208,009 | ) | (56,978,188 | ) | (1,615,595 | ) | 10,507,591 | 9,309,690 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
8,137,501 | 1,941,605 | 1,097,948 | 27,322,624 | 1,210,879 | 45,382,539 | 10,743,771 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
9,673,021 | 5,955,758 | (9,110,061 | ) | (29,655,564 | ) | (404,716 | ) | 55,890,130 | 20,053,461 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 9,884,851 | $ | 6,092,593 | $ | (8,903,196 | ) | $ | (21,967,783 | ) | $ | (256,672 | ) | $ | 56,520,576 | $ | 19,956,216 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 49 |
|
Statements of Changes in Net Assets
For the years ended April 30, 2017 and 2016
PowerShares Dynamic Biotechnology & Genome Portfolio (PBE) | PowerShares Dynamic Building & Construction Portfolio (PKB) | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 2,003,126 | $ | 4,270,915 | $ | 372,057 | $ | 103,450 | ||||||||
Net realized gain (loss) | (11,750,000 | ) | (38,017,218 | ) | 13,415,961 | 554,277 | ||||||||||
Net change in unrealized appreciation (depreciation) | 31,645,703 | (78,486,936 | ) | 10,573,563 | 3,421,640 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 21,898,829 | (112,233,239 | ) | 24,361,581 | 4,079,367 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net investment income | (1,200,757 | ) | (4,955,367 | ) | (485,721 | ) | (67,537 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shareholder Transactions: | ||||||||||||||||
Proceeds from shares sold | 73,446,820 | 93,026,648 | 417,784,463 | 34,203,109 | ||||||||||||
Value of shares repurchased | (131,098,196 | ) | (219,516,036 | ) | (183,866,342 | ) | (33,191,270 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from shares transactions | (57,651,376 | ) | (126,489,388 | ) | 233,918,121 | 1,011,839 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Increase (Decrease) in Net Assets | (36,953,304 | ) | (243,677,994 | ) | 257,793,981 | 5,023,669 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 267,584,132 | 511,262,126 | 60,201,082 | 55,177,413 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 230,630,828 | $ | 267,584,132 | $ | 317,995,063 | $ | 60,201,082 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income at end of year | $ | 839,252 | $ | 36,883 | $ | (17,802 | ) | $ | 49,810 | |||||||
|
|
|
|
|
|
|
| |||||||||
Changes in Shares Outstanding: | ||||||||||||||||
Shares sold | 1,750,000 | 1,750,000 | 15,000,000 | 1,400,000 | ||||||||||||
Shares repurchased | (3,200,000 | ) | (4,600,000 | ) | (6,650,000 | ) | (1,400,000 | ) | ||||||||
Shares outstanding, beginning of year | 6,800,000 | 9,650,000 | 2,400,000 | 2,400,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding, end of year | 5,350,000 | 6,800,000 | 10,750,000 | 2,400,000 | ||||||||||||
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 50 |
|
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) | |||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||
$ | 731,303 | $ | 1,896,595 | $ | 1,801,830 | $ | 3,062,976 | $ | 1,044,971 | $ | 557,579 | $ | 211,830 | $ | 315,578 | |||||||||||||||
2,825,635 | (39,225,841 | ) | 15,868,689 | 13,614,760 | 10,536,127 | (3,610,897 | ) | 1,535,520 | (6,158,013 | ) | ||||||||||||||||||||
(6,397,391 | ) | 776,822 | (2,278,113 | ) | (1,735,070 | ) | 7,527,722 | (5,120,787 | ) | 8,137,501 | (6,304,545 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(2,840,453 | ) | (36,552,424 | ) | 15,392,406 | 14,942,666 | 19,108,820 | (8,174,105 | ) | 9,884,851 | (12,146,980 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(4,659,938 | ) | (2,429,800 | ) | (2,825,653 | ) | (2,995,165 | ) | (921,794 | ) | (444,265 | ) | (132,206 | ) | (1,074,222 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
50,986,365 | 49,529,499 | 95,111,390 | 342,040,166 | 236,681,567 | 158,374,155 | 140,220,058 | 125,469,044 | |||||||||||||||||||||||
(62,407,209 | ) | (53,458,266 | ) | (261,312,296 | ) | (319,253,170 | ) | (252,721,340 | ) | (199,941,946 | ) | (92,203,321 | ) | (167,455,100 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(11,420,844 | ) | (3,928,767 | ) | (166,200,906 | ) | 22,786,996 | (16,039,773 | ) | (41,567,791 | ) | 48,016,737 | (41,986,056 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(18,921,235 | ) | (42,910,991 | ) | (153,634,153 | ) | 34,734,497 | 2,147,253 | (50,186,161 | ) | 57,769,382 | (55,207,258 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
74,681,730 | 117,592,721 | 300,455,095 | 265,720,598 | 142,754,290 | 192,940,451 | 90,460,974 | 145,668,232 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 55,760,495 | $ | 74,681,730 | $ | 146,820,942 | $ | 300,455,095 | $ | 144,901,543 | $ | 142,754,290 | $ | 148,230,356 | $ | 90,460,974 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 308,344 | $ | 3,806,375 | $ | (24,151 | ) | $ | 711,699 | $ | 85,767 | $ | (17,566 | ) | $ | 60,240 | $ | (19,384 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
2,350,000 | 1,800,000 | 2,850,000 | 10,700,000 | 6,050,000 | 4,250,000 | 5,200,000 | 4,800,000 | |||||||||||||||||||||||
(2,900,000 | ) | (2,200,000 | ) | (7,800,000 | ) | (9,850,000 | ) | (6,600,000 | ) | (5,550,000 | ) | (3,500,000 | ) | (6,650,000 | ) | |||||||||||||||
3,300,000 | 3,700,000 | 9,300,000 | 8,450,000 | 4,000,000 | 5,300,000 | 3,600,000 | 5,450,000 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
2,750,000 | 3,300,000 | 4,350,000 | 9,300,000 | 3,450,000 | 4,000,000 | 5,300,000 | 3,600,000 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 51 |
|
Statements of Changes in Net Assets (continued)
For the years ended April 30, 2017 and 2016
PowerShares Dynamic Networking Portfolio (PXQ) | PowerShares Dynamic Oil & Gas Services Portfolio (PXJ) | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Operations: | ||||||||||||||||
Net investment income (loss) | $ | 136,835 | $ | 103,581 | $ | 206,865 | $ | 733,288 | ||||||||
Net realized gain (loss) | 4,014,153 | 1,107,416 | (10,208,009 | ) | (21,165,065 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) | 1,941,605 | (3,430,513 | ) | 1,097,948 | (975,438 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 6,092,593 | (2,219,516 | ) | (8,903,196 | ) | (21,407,215 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net investment income | (105,774 | ) | — | (311,011 | ) | (831,786 | ) | |||||||||
Net realized gains | — | — | — | — | ||||||||||||
Return of capital | — | — | (270,928 | ) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (105,774 | ) | — | (581,939 | ) | (831,786 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Shareholder Transactions: | ||||||||||||||||
Proceeds from shares sold | 24,087,502 | 9,058,713 | 18,842,331 | 15,134,853 | ||||||||||||
Value of shares repurchased | (24,118,556 | ) | (14,134,635 | ) | (21,717,430 | ) | (20,147,734 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from shares transactions | (31,054 | ) | (5,075,922 | ) | (2,875,099 | ) | (5,012,881 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Increase (Decrease) in Net Assets | 5,955,765 | (7,295,438 | ) | (12,360,234 | ) | (27,251,882 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 20,189,319 | 27,484,757 | 45,533,808 | 72,785,690 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 26,145,084 | $ | 20,189,319 | $ | 33,173,574 | $ | 45,533,808 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income (loss) at end of year | $ | 121,195 | $ | 90,135 | $ | (25,435 | ) | $ | 84,581 | |||||||
|
|
|
|
|
|
|
| |||||||||
Changes in Shares Outstanding: | ||||||||||||||||
Shares sold | 600,000 | 250,000 | 1,500,000 | 1,050,000 | ||||||||||||
Shares repurchased | (600,000 | ) | (400,000 | ) | (1,850,000 | ) | (1,450,000 | ) | ||||||||
Shares outstanding, beginning of year | 600,000 | 750,000 | 3,450,000 | 3,850,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding, end of year | 600,000 | 600,000 | 3,100,000 | 3,450,000 | ||||||||||||
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 52 |
|
PowerShares Dynamic Pharmaceuticals Portfolio (PJP) | PowerShares Dynamic Retail Portfolio (PMR) | PowerShares Dynamic Semiconductors Portfolio (PSI) | PowerShares Dynamic Software Portfolio (PSJ) | |||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||
$ | 7,687,781 | $ | 9,639,772 | $ | 148,044 | $ | 168,368 | $ | 630,446 | $ | 252,292 | $ | (97,245 | ) | $ | (146,626 | ) | |||||||||||||
(56,978,188 | ) | 135,708,693 | (1,615,595 | ) | 59,120 | 10,507,591 | (4,881,907 | ) | 9,309,690 | (516,409 | ) | |||||||||||||||||||
27,322,624 | (370,625,568 | ) | 1,210,879 | (1,126,743 | ) | 45,382,539 | (3,462,052 | ) | 10,743,771 | (4,707,107 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(21,967,783 | ) | (225,277,103 | ) | (256,672 | ) | (899,255 | ) | 56,520,576 | (8,091,667 | ) | 19,956,216 | (5,370,142 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(8,704,516 | ) | (9,438,012 | ) | (176,636 | ) | (182,321 | ) | (737,311 | ) | (100,980 | ) | (27,911 | ) | (83,133 | ) | |||||||||||||||
— | (78,190,579 | ) | — | — | — | — | — | — | ||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(8,704,516 | ) | (87,628,591 | ) | (176,636 | ) | (182,321 | ) | (737,311 | ) | (100,980 | ) | (27,911 | ) | (83,133 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
127,298,859 | 402,286,845 | 28,684,191 | 18,333,024 | 205,868,787 | 43,249,104 | 115,699,119 | 98,889,794 | |||||||||||||||||||||||
(500,243,797 | ) | (847,789,130 | ) | (35,238,705 | ) | (34,245,374 | ) | (74,952,115 | ) | (64,968,217 | ) | (107,928,638 | ) | (76,919,326 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(372,944,938 | ) | (445,502,285 | ) | (6,554,514 | ) | (15,912,350 | ) | 130,916,672 | (21,719,113 | ) | 7,770,481 | 21,970,468 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(403,617,237 | ) | (758,407,979 | ) | (6,987,822 | ) | (16,993,926 | ) | 186,699,937 | (29,911,760 | ) | 27,698,786 | 16,517,193 | ||||||||||||||||||
|
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|
|
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|
|
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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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$ | 764,908,471 | $ | 1,168,525,708 | $ | 14,428,636 | $ | 21,416,458 | $ | 235,698,788 | $ | 48,998,851 | $ | 101,545,370 | $ | 73,846,584 | |||||||||||||||
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$ | 747,015 | $ | 1,763,750 | $ | (9,481 | ) | $ | 19,111 | $ | 31,204 | $ | 138,069 | $ | (103,946 | ) | $ | (58,979 | ) | ||||||||||||
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2,050,000 | 5,400,000 | 800,000 | 500,000 | 5,800,000 | 1,600,000 | 2,400,000 | 2,300,000 | |||||||||||||||||||||||
(8,250,000 | ) | (12,500,000 | ) | (1,000,000 | ) | (900,000 | ) | (2,250,000 | ) | (2,600,000 | ) | (2,250,000 | ) | (1,900,000 | ) | |||||||||||||||
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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12,600,000 | 18,800,000 | 400,000 | 600,000 | 5,550,000 | 2,000,000 | 1,900,000 | 1,750,000 | |||||||||||||||||||||||
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| 53 |
|
PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)
Year Ended April 30, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 39.35 | $ | 52.98 | $ | 39.71 | $ | 28.26 | $ | 22.26 | ||||||||||
Net investment income (loss)(a) | 0.33 | 0.50 | 0.34 | 0.03 | (0.05 | ) | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 3.63 | (13.56 | ) | 13.21 | 11.42 | 6.05 | ||||||||||||||
Total from investment operations | 3.96 | (13.06 | ) | 13.55 | 11.45 | 6.00 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.20 | ) | (0.57 | ) | (0.28 | ) | — | — | ||||||||||||
Net asset value at end of year | $ | 43.11 | $ | 39.35 | $ | 52.98 | $ | 39.71 | $ | 28.26 | ||||||||||
Market price at end of year(b) | $ | 43.13 | $ | 39.35 | $ | 52.95 | $ | 39.68 | $ | 28.27 | ||||||||||
Net Asset Value Total Return:(c) | 10.09 | % | (24.92 | )% | 34.25 | % | 40.52 | % | 26.96 | % | ||||||||||
Market Price Total Return(c) | 10.15 | % | (24.88 | )% | 34.28 | % | 40.36 | % | 27.29 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 230,631 | $ | 267,584 | $ | 511,262 | $ | 361,320 | $ | 155,453 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.58 | % | 0.58 | % | 0.57 | % | 0.59 | % | 0.63 | % | ||||||||||
Expenses, prior to Waivers | 0.58 | % | 0.58 | % | 0.57 | % | 0.59 | % | 0.63 | % | ||||||||||
Net investment income (loss), after Waivers | 0.81 | % | 1.00 | % | 0.69 | % | 0.09 | % | (0.20 | )% | ||||||||||
Portfolio turnover rate(d) | 69 | % | 74 | % | 95 | % | 64 | % | 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.
| 54 |
|
Financial Highlights (continued)
PowerShares Dynamic Building & Construction Portfolio (PKB)
Year Ended April 30, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 25.08 | $ | 22.99 | $ | 22.09 | $ | 19.65 | $ | 14.23 | ||||||||||
Net investment income(a) | 0.07 | 0.04 | 0.03 | 0.00 | (b) | 0.07 | ||||||||||||||
Net realized and unrealized gain on investments | 4.52 | 2.08 | 0.89 | 2.44 | 5.44 | |||||||||||||||
Total from investment operations | 4.59 | 2.12 | 0.92 | 2.44 | 5.51 | |||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.09 | ) | (0.03 | ) | (0.02 | ) | — | (0.09 | ) | |||||||||||
Net asset value at end of year | $ | 29.58 | $ | 25.08 | $ | 22.99 | $ | 22.09 | $ | 19.65 | ||||||||||
Market price at end of year(c) | $ | 29.60 | $ | 25.08 | $ | 22.98 | $ | 22.10 | $ | 19.63 | ||||||||||
Net Asset Value Total Return:(d) | 18.33 | % | 9.21 | % | 4.17 | % | 12.42 | % | 38.85 | % | ||||||||||
Market Price Total Return(d) | 18.41 | % | 9.26 | % | 4.08 | % | 12.58 | % | 39.01 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 317,995 | $ | 60,201 | $ | 55,177 | $ | 123,688 | $ | 104,121 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | ||||||||||
Expenses, prior to Waivers | 0.63 | % | 0.68 | % | 0.65 | % | 0.63 | % | 0.69 | % | ||||||||||
Net investment income, after Waivers | 0.24 | % | 0.18 | % | 0.15 | % | 0.01 | % | 0.44 | % | ||||||||||
Portfolio turnover rate(e) | 129 | % | 90 | % | 96 | % | 117 | % | 95 | % |
(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, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 22.63 | $ | 31.78 | $ | 37.76 | $ | 30.27 | $ | 24.58 | ||||||||||
Net investment income(a) | 0.24 | 0.51 | 0.39 | 0.48 | 0.53 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.15 | ) | (9.04 | ) | (5.84 | ) | 7.55 | 5.81 | ||||||||||||
Total from investment operations | (0.91 | ) | (8.53 | ) | (5.45 | ) | 8.03 | 6.34 | ||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (1.44 | ) | (0.62 | ) | (0.53 | ) | (0.54 | ) | (0.65 | ) | ||||||||||
Net asset value at end of year | $ | 20.28 | $ | 22.63 | $ | 31.78 | $ | 37.76 | $ | 30.27 | ||||||||||
Market price at end of year(b) | $ | 20.28 | $ | 22.63 | $ | 31.77 | $ | 37.76 | $ | 30.23 | ||||||||||
Net Asset Value Total Return:(c) | (3.96 | )% | (26.93 | )% | (14.51 | )% | 26.93 | % | 26.14 | % | ||||||||||
Market Price Total Return(c) | (3.96 | )% | (26.91 | )% | (14.54 | )% | 27.10 | % | 26.03 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 55,760 | $ | 74,682 | $ | 117,593 | $ | 130,273 | $ | 104,427 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.80 | %(d) | 0.65 | % | 0.64 | % | 0.64 | % | 0.65 | % | ||||||||||
Expenses, prior to Waivers | 0.88 | %(d) | 0.67 | % | 0.64 | % | 0.64 | % | 0.69 | % | ||||||||||
Net investment income, after Waivers | 1.13 | % | 2.09 | % | 1.20 | % | 1.46 | % | 1.97 | % | ||||||||||
Portfolio turnover rate(e) | 91 | % | 134 | % | 140 | % | 96 | % | 80 | % |
(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) | Expenses, after Waivers and Expenses, prior to Waivers include state income taxes paid during the fiscal year ended April 30, 2017. Expenses, after Waivers and Expenses, prior to Waivers excluding the taxes paid are 0.63% and 0.71%, respectively. |
(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 Dynamic Food & Beverage Portfolio (PBJ)
Year Ended April 30, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 32.31 | $ | 31.45 | $ | 26.98 | $ | 23.62 | $ | 19.77 | ||||||||||
Net investment income(a) | 0.33 | 0.39 | 0.31 | 0.38 | 0.26 | |||||||||||||||
Net realized and unrealized gain on investments | 1.61 | 0.88 | 4.58 | 3.19 | 3.92 | |||||||||||||||
Total from investment operations | 1.94 | 1.27 | 4.89 | 3.57 | 4.18 | |||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.50 | ) | (0.41 | ) | (0.42 | ) | (0.21 | ) | (0.33 | ) | ||||||||||
Net asset value at end of year | $ | 33.75 | $ | 32.31 | $ | 31.45 | $ | 26.98 | $ | 23.62 | ||||||||||
Market price at end of year(b) | $ | 33.74 | $ | 32.30 | $ | 31.43 | $ | 26.99 | $ | 23.61 | ||||||||||
Net Asset Value Total Return:(c) | 6.03 | % | 4.06 | % | 18.25 | % | 15.16 | % | 21.45 | % | ||||||||||
Market Price Total Return(c) | 6.03 | % | 4.10 | % | 18.13 | % | 15.25 | % | 21.40 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 146,821 | $ | 300,455 | $ | 265,721 | $ | 434,371 | $ | 236,226 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.59 | % | 0.58 | % | 0.58 | % | 0.61 | % | 0.63 | % | ||||||||||
Expenses, prior to Waivers | 0.59 | % | 0.58 | % | 0.58 | % | 0.61 | % | 0.63 | % | ||||||||||
Net investment income, after Waivers | 0.99 | % | 1.21 | % | 1.05 | % | 1.47 | % | 1.28 | % | ||||||||||
Portfolio turnover rate(d) | 145 | % | 109 | % | 124 | % | 145 | % | 92 | % |
(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, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 35.69 | $ | 36.40 | $ | 32.35 | $ | 27.23 | $ | 22.18 | ||||||||||
Net investment income(a) | 0.31 | 0.11 | 0.31 | 0.15 | 0.12 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 6.26 | (0.74 | ) | 4.04 | 5.10 | 5.09 | ||||||||||||||
Total from investment operations | 6.57 | (0.63 | ) | 4.35 | 5.25 | 5.21 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.26 | ) | (0.08 | ) | (0.30 | ) | (0.13 | ) | (0.16 | ) | ||||||||||
Net asset value at end of year | $ | 42.00 | $ | 35.69 | $ | 36.40 | $ | 32.35 | $ | 27.23 | ||||||||||
Market price at end of year(b) | $ | 42.00 | $ | 35.68 | $ | 36.39 | $ | 32.34 | $ | 27.21 | ||||||||||
Net Asset Value Total Return:(c) | 18.52 | % | (1.73 | )% | 13.47 | % | 19.29 | % | 23.67 | % | ||||||||||
Market Price Total Return(c) | 18.55 | % | (1.73 | )% | 13.47 | % | 19.34 | % | 23.47 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 144,902 | $ | 142,754 | $ | 192,940 | $ | 177,930 | $ | 85,765 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.61 | % | 0.61 | % | 0.63 | % | 0.63 | % | 0.63 | % | ||||||||||
Expenses, prior to Waivers | 0.61 | % | 0.61 | % | 0.63 | % | 0.63 | % | 0.69 | % | ||||||||||
Net investment income, after Waivers | 0.83 | % | 0.29 | % | 0.88 | % | 0.48 | % | 0.52 | % | ||||||||||
Portfolio turnover rate(d) | 183 | % | 136 | % | 187 | % | 171 | % | 93 | % |
(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.
| 56 |
|
Financial Highlights (continued)
PowerShares Dynamic Media Portfolio (PBS)
Year Ended April 30, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 25.13 | $ | 26.73 | $ | 23.81 | $ | 20.11 | $ | 14.84 | ||||||||||
Net investment income(a) | 0.06 | 0.07 | 0.21 | 0.09 | 0.12 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.82 | (1.45 | ) | 2.89 | 3.70 | 5.28 | ||||||||||||||
Total from investment operations | 2.88 | (1.38 | ) | 3.10 | 3.79 | 5.40 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.04 | ) | (0.22 | ) | (0.18 | ) | (0.09 | ) | (0.13 | ) | ||||||||||
Net asset value at end of year | $ | 27.97 | $ | 25.13 | $ | 26.73 | $ | 23.81 | $ | 20.11 | ||||||||||
Market price at end of year(b) | $ | 27.98 | $ | 25.12 | $ | 26.72 | $ | 23.79 | $ | 20.10 | ||||||||||
Net Asset Value Total Return:(c) | 11.49 | % | (5.18 | )% | 13.04 | % | 18.87 | % | 36.62 | % | ||||||||||
Market Price Total Return(c) | 11.57 | % | (5.18 | )% | 13.09 | % | 18.83 | % | 36.55 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 148,230 | $ | 90,461 | $ | 145,668 | $ | 171,430 | $ | 150,788 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.63 | % | 0.61 | % | 0.59 | % | 0.62 | % | 0.63 | % | ||||||||||
Expenses, prior to Waivers | 0.63 | % | 0.61 | % | 0.59 | % | 0.62 | % | 0.63 | % | ||||||||||
Net investment income, after Waivers | 0.21 | % | 0.26 | % | 0.84 | % | 0.38 | % | 0.71 | % | ||||||||||
Portfolio turnover rate(d) | 103 | % | 124 | % | 131 | % | 120 | % | 70 | % |
(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, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 33.65 | $ | 36.65 | $ | 31.20 | $ | 25.00 | $ | 27.71 | ||||||||||
Net investment income (loss)(a) | 0.21 | 0.15 | (0.01 | ) | (0.04 | ) | 0.20 | (b) | ||||||||||||
Net realized and unrealized gain (loss) on investments | 9.90 | (3.15 | ) | 5.46 | 6.44 | (2.85 | ) | |||||||||||||
Total from investment operations | 10.11 | (3.00 | ) | 5.45 | 6.40 | (2.65 | ) | |||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.18 | ) | — | — | (0.20 | ) | (0.06 | ) | ||||||||||||
Net asset value at end of year | $ | 43.58 | $ | 33.65 | $ | 36.65 | $ | 31.20 | $ | 25.00 | ||||||||||
Market price at end of year(c) | $ | 43.59 | $ | 33.65 | $ | 36.64 | $ | 31.19 | $ | 24.97 | ||||||||||
Net Asset Value Total Return:(d) | 30.19 | % | (8.19 | )% | 17.47 | % | 25.69 | % | (9.57 | )% | ||||||||||
Market Price Total Return(d) | 30.22 | % | (8.16 | )% | 17.48 | % | 25.80 | % | (9.58 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 26,145 | $ | 20,189 | $ | 27,485 | $ | 29,643 | $ | 30,000 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.64 | % | ||||||||||
Expenses, prior to Waivers | 0.89 | % | 0.88 | % | 0.85 | % | 0.82 | % | 0.75 | % | ||||||||||
Net investment income (loss), after Waivers | 0.55 | % | 0.42 | % | (0.02 | )% | (0.12 | )% | 0.81 | %(b) | ||||||||||
Portfolio turnover rate(e) | 97 | % | 87 | % | 74 | % | 69 | % | 68 | % |
(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.
| 57 |
|
Financial Highlights (continued)
PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)
Year Ended April 30, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 13.20 | $ | 18.91 | $ | 28.01 | $ | 22.49 | $ | 20.48 | ||||||||||
Net investment income(a) | 0.06 | 0.20 | 0.22 | 0.08 | 0.04 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (2.41 | ) | (5.69 | ) | (9.07 | ) | 5.53 | (b) | 2.00 | |||||||||||
Total from investment operations | (2.35 | ) | (5.49 | ) | (8.85 | ) | 5.61 | 2.04 | ||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.08 | ) | (0.22 | ) | (0.25 | ) | (0.09 | ) | (0.03 | ) | ||||||||||
Return of capital | (0.07 | ) | — | — | — | — | ||||||||||||||
Total distributions | (0.15 | ) | (0.22 | ) | (0.25 | ) | (0.09 | ) | (0.03 | ) | ||||||||||
Net asset value at end of year | $ | 10.70 | $ | 13.20 | $ | 18.91 | $ | 28.01 | $ | 22.49 | ||||||||||
Market price at end of year(c) | $ | 10.70 | $ | 13.19 | $ | 18.92 | $ | 28.00 | $ | 22.49 | ||||||||||
Net Asset Value Total Return:(d) | (17.99 | )% | (29.06 | )% | (31.67 | )% | 24.98 | %(b) | 9.95 | % | ||||||||||
Market Price Total Return(d) | (17.92 | )% | (29.15 | )% | (31.61 | )% | 24.94 | % | 9.95 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 33,174 | $ | 45,534 | $ | 72,786 | $ | 135,849 | $ | 116,973 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.63 | % | 0.63 | % | 0.63 | % | 0.61 | % | 0.62 | % | ||||||||||
Expenses, prior to Waivers | 0.75 | % | 0.72 | % | 0.64 | % | 0.61 | % | 0.62 | % | ||||||||||
Net investment income (loss), after Waivers | 0.47 | % | 1.46 | % | 0.96 | % | 0.31 | % | 0.18 | % | ||||||||||
Portfolio turnover rate(e) | 90 | % | 89 | % | 79 | % | 259 | %(b) | 68 | % |
(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) | 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 Pharmaceuticals Portfolio (PJP)
Year Ended April 30, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 62.16 | $ | 74.40 | $ | 57.65 | $ | 40.72 | $ | 32.00 | ||||||||||
Net investment income(a) | 0.48 | 0.41 | 0.32 | 0.26 | 0.54 | (b) | ||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.40 | ) | (8.81 | ) | 18.42 | 16.90 | 8.72 | |||||||||||||
Total from investment operations | (0.92 | ) | (8.40 | ) | 18.74 | 17.16 | 9.26 | |||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.53 | ) | (0.39 | ) | (0.34 | ) | (0.23 | ) | (0.54 | ) | ||||||||||
Net realized gains | — | (3.45 | ) | (1.65 | ) | — | — | |||||||||||||
Total distributions | (0.53 | ) | (3.84 | ) | (1.99 | ) | (0.23 | ) | (0.54 | ) | ||||||||||
Net asset value at end of year | $ | 60.71 | $ | 62.16 | $ | 74.40 | $ | 57.65 | $ | 40.72 | ||||||||||
Market price at end of year(c) | $ | 60.71 | $ | 62.14 | $ | 74.35 | $ | 57.60 | $ | 40.72 | ||||||||||
Net Asset Value Total Return:(d) | (1.47 | )% | (11.86 | )% | 32.95 | % | 42.27 | % | 29.25 | % | ||||||||||
Market Price Total Return(d) | (1.44 | )% | (11.83 | )% | 32.97 | % | 42.15 | % | 29.29 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 764,908 | $ | 1,168,526 | $ | 1,926,934 | $ | 1,104,007 | $ | 468,305 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.56 | % | 0.57 | % | 0.56 | % | 0.58 | % | 0.63 | % | ||||||||||
Expenses, prior to Waivers | 0.56 | % | 0.57 | % | 0.56 | % | 0.58 | % | 0.63 | % | ||||||||||
Net investment income, after Waivers | 0.79 | % | 0.58 | % | 0.48 | % | 0.52 | % | 1.52 | %(b) | ||||||||||
Portfolio turnover rate(e) | 26 | % | 26 | % | 47 | % | 39 | % | 24 | % |
(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, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 35.69 | $ | 38.41 | $ | 33.15 | $ | 29.12 | $ | 25.98 | ||||||||||
Net investment income(a) | 0.27 | 0.25 | 0.22 | 0.32 | 0.66 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.43 | (2.70 | ) | 5.38 | 3.99 | 3.11 | ||||||||||||||
Total from investment operations | 0.70 | (2.45 | ) | 5.60 | 4.31 | 3.77 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.32 | ) | (0.27 | ) | (0.34 | ) | (0.28 | ) | (0.63 | ) | ||||||||||
Net asset value at end of year | $ | 36.07 | $ | 35.69 | $ | 38.41 | $ | 33.15 | $ | 29.12 | ||||||||||
Market price at end of year(b) | $ | 36.05 | $ | 35.69 | $ | 38.42 | $ | 33.14 | $ | 29.11 | ||||||||||
Net Asset Value Total Return:(c) | 1.98 | % | (6.40 | )% | 16.97 | % | 14.81 | % | 14.87 | % | ||||||||||
Market Price Total Return(c) | 1.92 | % | (6.42 | )% | 17.04 | % | 14.81 | % | 14.83 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 14,429 | $ | 21,416 | $ | 38,410 | $ | 24,864 | $ | 24,750 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | ||||||||||
Expenses, prior to Waivers | 0.99 | % | 0.88 | % | 0.91 | % | 0.79 | % | 0.74 | % | ||||||||||
Net investment income, after Waivers | 0.76 | % | 0.67 | % | 0.61 | % | 0.96 | % | 2.59 | % | ||||||||||
Portfolio turnover rate(d) | 152 | % | 129 | % | 111 | % | 184 | % | 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. |
PowerShares Dynamic Semiconductors Portfolio (PSI)
Year Ended April 30, 2017 | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 24.50 | $ | 26.30 | $ | 20.62 | $ | 15.22 | $ | 15.75 | ||||||||||
Net investment income(a) | 0.19 | 0.10 | 0.25 | (b) | 0.10 | 0.11 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 18.02 | (1.86 | ) | 5.88 | 5.41 | (0.52 | ) | |||||||||||||
Total from investment operations | 18.21 | (1.76 | ) | 6.13 | 5.51 | (0.41 | ) | |||||||||||||
Distribution to shareholder from: | ||||||||||||||||||||
Net investment income | (0.24 | ) | (0.04 | ) | (0.33 | ) | (0.11 | ) | (0.12 | ) | ||||||||||
Return of capital | — | — | (0.12 | ) | — | — | ||||||||||||||
Total distributions | (0.24 | ) | (0.04 | ) | (0.45 | ) | (0.11 | ) | (0.12 | ) | ||||||||||
Net asset value at end of year | $ | 42.47 | $ | 24.50 | $ | 26.30 | $ | 20.62 | $ | 15.22 | ||||||||||
Market price at end of year(c) | $ | 42.51 | $ | 24.48 | $ | 26.31 | $ | 20.62 | $ | 15.19 | ||||||||||
Net Asset Value Total Return:(d) | 74.65 | % | (6.69 | )% | 29.90 | % | 36.38 | % | (2.56 | )% | ||||||||||
Market Price Total Return(d) | 74.96 | % | (6.80 | )% | 29.95 | % | 36.66 | % | (2.50 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 235,699 | $ | 48,999 | $ | 78,911 | $ | 20,621 | $ | 16,744 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | ||||||||||
Expenses, prior to Waivers | 0.63 | % | 0.68 | % | 0.78 | % | 1.05 | % | 1.05 | % | ||||||||||
Net investment income, after Waivers | 0.55 | % | 0.38 | % | 1.03 | %(b) | 0.55 | % | 0.77 | % | ||||||||||
Portfolio turnover rate(e) | 62 | % | 104 | % | 103 | % | 126 | % | 91 | % |
(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, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 42.20 | $ | 42.47 | $ | 33.96 | $ | 30.16 | $ | 26.87 | ||||||||||
Net investment income (loss)(a) | (0.05 | ) | (0.08 | ) | 0.11 | (0.00 | )(b) | (0.01 | ) | |||||||||||
Net realized and unrealized gain (loss) on investments | 11.30 | (0.13 | ) | 8.44 | 3.80 | 3.30 | ||||||||||||||
Total from investment operations | 11.25 | (0.21 | ) | 8.55 | 3.80 | 3.29 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.01 | ) | (0.06 | ) | (0.04 | ) | — | — | ||||||||||||
Net asset value at end of year | $ | 53.44 | $ | 42.20 | $ | 42.47 | $ | 33.96 | $ | 30.16 | ||||||||||
Market price at end of year(c) | $ | 53.39 | $ | 42.21 | $ | 42.48 | $ | 33.93 | $ | 30.12 | ||||||||||
Net Asset Value Total Return:(d) | 26.67 | % | (0.50 | )% | 25.18 | % | 12.60 | % | 12.24 | % | ||||||||||
Market Price Total Return(d) | 26.52 | % | (0.50 | )% | 25.32 | % | 12.65 | % | 12.09 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 101,545 | $ | 73,847 | $ | 57,329 | $ | 54,335 | $ | 48,257 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | ||||||||||
Expenses, prior to Waivers | 0.64 | % | 0.66 | % | 0.71 | % | 0.69 | % | 0.74 | % | ||||||||||
Net investment income (loss), after Waivers | (0.11 | )% | (0.19 | )% | 0.29 | % | (0.01 | )% | (0.03 | )% | ||||||||||
Portfolio turnover rate(e) | 154 | % | 154 | % | 132 | % | 150 | % | 95 | % |
(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, 2017
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, 2017, 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 following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.
Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services—Investment Companies.
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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. 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 Mid-Capitalization Company Risk. Investing in securities of small- and mid-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 mid-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 accounting principles generally accepted in the United States of America (“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.
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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”), any Trustee who is not an affiliate of the Adviser or Distributor (or any of their affiliates) and who is otherwise an “interested person” of the Trust under the 1940 Act (an “Unaffiliated Trustee”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees and any Unaffiliated Trustee, 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. Accounting Estimates
The preparation of the financial statements in accordance with 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.
I. Securities Lending
During the fiscal year ended April 30, 2017, Dynamic Biotechnology & Genome Portfolio, Dynamic Building & Construction Portfolio, Dynamic Energy Exploration & Production Portfolio, Dynamic Networking Portfolio, Dynamic Oil & Gas Services Portfolio, Dynamic Pharmaceuticals Portfolio and Dynamic Retail 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 generally 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, 2018. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2018. 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 Building & Construction Portfolio, Dynamic Food & Beverage Portfolio, Dynamic Leisure and Entertainment Portfolio, Dynamic Pharmaceuticals Portfolio, and Dynamic Semiconductors Portfolio.
Further, through August 31, 2019, 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, 2017, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:
Dynamic Biotechnology & Genome Portfolio | $ | 206 | ||
Dynamic Building & Construction Portfolio | 170 | |||
Dynamic Energy Exploration & Production Portfolio | 49,045 | |||
Dynamic Food & Beverage Portfolio | 268 | |||
Dynamic Leisure and Entertainment Portfolio | 200 | |||
Dynamic Media Portfolio | 278 |
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Dynamic Networking Portfolio | $ | 66,031 | ||
Dynamic Oil & Gas Services Portfolio | 54,300 | |||
Dynamic Pharmaceuticals Portfolio | 860 | |||
Dynamic Retail Portfolio | 70,700 | |||
Dynamic Semiconductors Portfolio | 148 | |||
Dynamic Software Portfolio | 11,243 |
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, 2017 are as follows:
Total Potential Recapture Amounts | Potential Recapture Amounts Expiring | |||||||||||||||
04/30/18 | 04/30/19 | 04/30/20 | ||||||||||||||
Dynamic Energy Exploration & Production Portfolio | $ | 64,291 | $ | — | $ | 15,566 | $ | 48,725 | ||||||||
Dynamic Media Portfolio | 144 | — | — | 144 | ||||||||||||
Dynamic Networking Portfolio | 189,651 | 61,547 | 62,173 | 65,931 | ||||||||||||
Dynamic Oil & Gas Services Portfolio | 110,749 | 11,082 | 45,472 | 54,195 | ||||||||||||
Dynamic Retail Portfolio | 197,638 | 65,416 | 61,610 | 70,612 | ||||||||||||
Dynamic Semiconductors Portfolio | 87,406 | 54,742 | 32,664 | — | ||||||||||||
Dynamic Software Portfolio | 71,510 | 41,026 | 19,345 | 11,139 |
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 an issuer 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 investments in affiliates for the fiscal year ended April 30, 2017.
Dynamic Pharmaceuticals Portfolio
Value April 30, 2016 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain (Loss) | Value April 30, 2017 | Dividend Income | ||||||||||||||||||||||
Heron Therapeutics, Inc.* | $ | 52,388,275 | $ | 37,897,276 | $ | (42,386,345 | ) | $ | 27,440,477 | $ | (40,799,113 | ) | $ | 34,540,570 | $ | — |
* | At April 30, 2017, this security was no longer considered an affiliate. |
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, 2017, 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 | $ | 261,401,501 | $ | — | $ | 338,011 | $ | 261,739,512 | ||||||||
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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, 2017 and 2016:
2017 | 2016 | |||||||||||||||||||||||
Ordinary Income | Long-Term Capital Gains | Return of Capital | Ordinary Income | Long-Term Capital Gains | Return of Capital | |||||||||||||||||||
Dynamic Biotechnology & Genome Portfolio | $ | 1,200,757 | $ | — | $ | — | $ | 4,955,367 | $ | — | $ | — | ||||||||||||
Dynamic Building & Construction Portfolio | 485,721 | — | — | 67,537 | — | — | ||||||||||||||||||
Dynamic Energy Exploration & Production Portfolio | 4,659,938 | — | — | 2,429,800 | — | — | ||||||||||||||||||
Dynamic Food & Beverage Portfolio | 2,825,653 | — | — | 2,995,165 | — | — | ||||||||||||||||||
Dynamic Leisure and Entertainment Portfolio | 921,794 | — | — | 444,265 | — | — | ||||||||||||||||||
Dynamic Media Portfolio | 132,206 | — | — | 1,074,222 | — | — | ||||||||||||||||||
Dynamic Networking Portfolio | 105,774 | — | — | — | — | — | ||||||||||||||||||
Dynamic Oil & Gas Services Portfolio | 311,011 | — | 270,928 | 831,786 | — | — | ||||||||||||||||||
Dynamic Pharmaceuticals Portfolio | 8,704,516 | — | — | 49,953,074 | 37,675,517 | — | ||||||||||||||||||
Dynamic Retail Portfolio | 176,636 | — | — | 182,321 | — | — | ||||||||||||||||||
Dynamic Semiconductors Portfolio | 737,311 | — | — | 100,980 | — | — | ||||||||||||||||||
Dynamic Software Portfolio | 27,911 | — | — | 83,133 | — | — |
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 | $ | 867,985 | $ | (28,733 | ) | $ | 6,510,757 | $ | (186,530,974 | ) | $ | (15,679,573 | ) | $ | 425,491,366 | $ | 230,630,828 | |||||||||||
Dynamic Building & Construction Portfolio | — | (17,802 | ) | 15,886,696 | (22,431,521 | ) | (3,666,669 | ) | 328,224,359 | 317,995,063 | ||||||||||||||||||
Dynamic Energy Exploration & Production Portfolio | 328,433 | (20,089 | ) | (986,946 | ) | (105,588,315 | ) | (5,453,071 | ) | 167,480,483 | 55,760,495 | |||||||||||||||||
Dynamic Food & Beverage Portfolio | — | (24,151 | ) | 10,132,812 | (70,541,574 | ) | (3,190,824 | ) | 210,444,679 | 146,820,942 | ||||||||||||||||||
Dynamic Leisure and Entertainment Portfolio | 104,784 | (19,017 | ) | 8,357,205 | (41,588,510 | ) | (3,284,293 | ) | 181,331,374 | 144,901,543 | ||||||||||||||||||
Dynamic Media Portfolio | 80,900 | (20,660 | ) | 10,077,111 | (73,309,025 | ) | (3,332,992 | ) | 214,735,022 | 148,230,356 |
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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 Networking Portfolio | $ | 137,960 | $ | (16,765 | ) | $ | 3,098,094 | $ | (34,091,974 | ) | $ | (400,836 | ) | $ | 57,418,605 | $ | 26,145,084 | |||||||||||
Dynamic Oil & Gas Services Portfolio | — | (25,435 | ) | (7,349,146 | ) | (196,034,495 | ) | (4,313,407 | ) | 240,896,057 | 33,173,574 | |||||||||||||||||
Dynamic Pharmaceuticals Portfolio | 791,197 | (44,182 | ) | (76,582,044 | ) | (105,058,389 | ) | (92,654,893 | ) | 1,038,456,782 | 764,908,471 | |||||||||||||||||
Dynamic Retail Portfolio | 6,533 | (16,014 | ) | 828,452 | (20,571,177 | ) | (2,370,343 | ) | 36,551,185 | 14,428,636 | ||||||||||||||||||
Dynamic Semiconductors Portfolio | 48,089 | (16,885 | ) | 43,651,548 | (30,438,787 | ) | (634,183 | ) | 223,089,006 | 235,698,788 | ||||||||||||||||||
Dynamic Software Portfolio** | — | (17,539 | ) | 12,139,575 | (21,106,599 | ) | (3,061,598 | ) | 113,591,531 | 101,545,370 |
* | 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 $86,407,and Post-October Capital Losses of $2,975,191. |
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, 2017.
Post-effective/ no expiration | ||||||||||||||||||||||||
2018 | 2019 | Short-Term | Long-Term | Total* | Expired | |||||||||||||||||||
Dynamic Biotechnology & Genome Portfolio | $ | 50,397,332 | $ | 12,898,182 | $ | 116,533,637 | $ | 6,701,823 | $ | 186,530,974 | $ | 34,286,844 | ||||||||||||
Dynamic Building & Construction Portfolio | 3,001,058 | 6,653,613 | 11,225,767 | 1,551,083 | 22,431,521 | 2,843,349 | ||||||||||||||||||
Dynamic Energy Exploration & Production Portfolio | 21,471,013 | 1,361,799 | 65,178,685 | 17,576,818 | 105,588,315 | 7,646,917 | ||||||||||||||||||
Dynamic Food & Beverage Portfolio | 10,245,302 | — | 56,437,590 | 3,858,682 | 70,541,574 | 7,585,250 | ||||||||||||||||||
Dynamic Leisure and Entertainment Portfolio | 2,889,449 | 2,356,106 | 35,588,640 | 754,315 | 41,588,510 | 2,895,936 | ||||||||||||||||||
Dynamic Media Portfolio | 5,161,647 | 6,294,489 | 59,702,252 | 2,150,637 | 73,309,025 | 4,930,761 | ||||||||||||||||||
Dynamic Networking Portfolio | 512,618 | 730,670 | 22,792,087 | 10,056,599 | 34,091,974 | 1,975,581 | ||||||||||||||||||
Dynamic Oil & Gas Services Portfolio | 85,028,926 | 35,877,910 | 46,286,369 | 28,841,290 | 196,034,495 | 24,680,663 | ||||||||||||||||||
Dynamic Pharmaceuticals Portfolio | — | — | 87,936,521 | 17,121,868 | 105,058,389 | — | ||||||||||||||||||
Dynamic Retail Portfolio | 1,816,180 | 2,176,015 | 15,694,128 | 884,854 | 20,571,177 | 2,427,604 | ||||||||||||||||||
Dynamic Semiconductors Portfolio | 10,902,954 | 2,120,823 | 15,300,302 | 2,114,708 | 30,438,787 | 14,001,359 | ||||||||||||||||||
Dynamic Software Portfolio | 2,938,722 | 3,242,208 | 14,925,669 | — | 21,106,599 | 7,095,351 |
* | 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, 2017, 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 | $ | 170,908,622 | $ | 170,379,519 | ||||
Dynamic Building & Construction Portfolio | 216,637,786 | 217,277,222 | ||||||
Dynamic Energy Exploration & Production Portfolio | 59,079,654 | 62,782,157 | ||||||
Dynamic Food & Beverage Portfolio | 273,892,337 | 275,083,575 | ||||||
Dynamic Leisure and Entertainment Portfolio | 239,856,783 | 238,668,485 | ||||||
Dynamic Media Portfolio | 106,572,543 | 107,224,022 | ||||||
Dynamic Networking Portfolio | 24,697,768 | 25,729,989 |
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Purchases | Sales | |||||||
Dynamic Oil & Gas Services Portfolio | $ | 39,264,581 | $ | 39,196,755 | ||||
Dynamic Pharmaceuticals Portfolio | 251,641,074 | 252,313,049 | ||||||
Dynamic Retail Portfolio | 31,126,050 | 29,388,098 | ||||||
Dynamic Semiconductors Portfolio | 73,380,715 | 73,224,324 | ||||||
Dynamic Software Portfolio | 136,808,612 | 135,615,087 |
For the fiscal year ended April 30, 2017, in-kind transactions associated with creations and redemptions were as follows:
Cost of Securities Received | Value of Securities Delivered | |||||||
Dynamic Biotechnology & Genome Portfolio | $ | 72,066,247 | $ | 129,453,362 | ||||
Dynamic Building & Construction Portfolio | 417,786,084 | 183,404,857 | ||||||
Dynamic Energy Exploration & Production Portfolio | 50,961,074 | 62,509,267 | ||||||
Dynamic Food & Beverage Portfolio | 95,096,453 | 261,001,360 | ||||||
Dynamic Leisure and Entertainment Portfolio | 236,513,676 | 253,527,066 | ||||||
Dynamic Media Portfolio | 139,796,235 | 90,939,048 | ||||||
Dynamic Networking Portfolio | 24,076,004 | 23,056,656 | ||||||
Dynamic Oil & Gas Services Portfolio | 18,835,228 | 21,765,661 | ||||||
Dynamic Pharmaceuticals Portfolio | 127,260,376 | 500,536,619 | ||||||
Dynamic Retail Portfolio | 28,681,371 | 36,999,362 | ||||||
Dynamic Semiconductors Portfolio | 205,787,141 | 75,071,829 | ||||||
Dynamic Software Portfolio | 114,687,455 | 108,158,112 |
Gains (losses) on in-kind transactions are generally not considered taxable gains (losses) for federal income tax purposes.
At April 30, 2017, 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 | $ | 28,211,517 | $ | (21,700,760 | ) | $ | 6,510,757 | $ | 255,228,755 | |||||||
Dynamic Building & Construction Portfolio | 18,766,217 | (2,879,521 | ) | 15,886,696 | 306,931,357 | |||||||||||
Dynamic Energy Exploration & Production Portfolio | 2,983,859 | (3,970,805 | ) | (986,946 | ) | 58,038,945 | ||||||||||
Dynamic Food & Beverage Portfolio | 12,284,544 | (2,151,732 | ) | 10,132,812 | 136,711,613 | |||||||||||
Dynamic Leisure and Entertainment Portfolio | 10,491,194 | (2,133,989 | ) | 8,357,205 | 136,637,949 | |||||||||||
Dynamic Media Portfolio | 11,720,718 | (1,643,607 | ) | 10,077,111 | 138,272,279 | |||||||||||
Dynamic Networking Portfolio | 3,933,919 | (835,825 | ) | 3,098,094 | 24,925,283 | |||||||||||
Dynamic Oil & Gas Services Portfolio | 942,991 | (8,292,137 | ) | (7,349,146 | ) | 44,537,428 | ||||||||||
Dynamic Pharmaceuticals Portfolio | 63,684,035 | (140,266,079 | ) | (76,582,044 | ) | 907,015,146 | ||||||||||
Dynamic Retail Portfolio | 1,137,341 | (308,889 | ) | 828,452 | 13,650,920 | |||||||||||
Dynamic Semiconductors Portfolio | 44,010,719 | (359,171 | ) | 43,651,548 | 192,149,186 | |||||||||||
Dynamic Software Portfolio | 13,032,710 | (893,135 | ) | 12,139,575 | 89,510,268 |
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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, 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, 2017, the reclassifications were as follows:
Undistributed Net Investment Income (Loss) | Undistributed Net Realized Gain (Loss) | Shares of Beneficial Interest | ||||||||||
Dynamic Biotechnology & Genome Portfolio | $ | — | $ | 9,838,400 | $ | (9,838,400 | ) | |||||
Dynamic Building & Construction Portfolio | 46,052 | (17,683,705 | ) | 17,637,653 | ||||||||
Dynamic Energy Exploration & Production Portfolio | 430,604 | (3,162,027 | ) | 2,731,423 | ||||||||
Dynamic Food & Beverage Portfolio | 287,973 | (18,151,136 | ) | 17,863,163 | ||||||||
Dynamic Leisure and Entertainment Portfolio | (19,844 | ) | (15,047,545 | ) | 15,067,389 | |||||||
Dynamic Media Portfolio | — | (3,540,580 | ) | 3,540,580 | ||||||||
Dynamic Networking Portfolio | (1 | ) | (2,645,548 | ) | 2,645,549 | |||||||
Dynamic Oil & Gas Services Portfolio | (5,870 | ) | 24,946,451 | (24,940,581 | ) | |||||||
Dynamic Pharmaceuticals Portfolio | — | (54,350,016 | ) | 54,350,016 | ||||||||
Dynamic Retail Portfolio | — | 321,715 | (321,715 | ) | ||||||||
Dynamic Semiconductors Portfolio | — | 1,977,452 | (1,977,452 | ) | ||||||||
Dynamic Software Portfolio | 80,189 | (6,010,011 | ) | 5,929,822 |
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, any Unaffiliated Trustee, 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, each Independent Trustee or Unaffiliated 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.
Certain transaction fees may be charged by the Funds for creations and redemptions, which are treated as increases in capital.
Transactions in each Fund’s Shares are disclosed in detail in the Statements of Changes in Net Assets.
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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 and Unaffiliated Trustee is also indemnified against certain liabilities arising out of the performance of his duties to the Trust pursuant to an Indemnification Agreement between such 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 of PowerShares Exchange-Traded Fund Trust and Shareholders 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:
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”) as of April 30, 2017, 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 as of April 30, 2017 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Chicago, IL
June 23, 2017
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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, 2017.
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, 2016 | Ending Account Value April 30, 2017 | 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 | $ | 1,158.20 | 0.57 | % | $ | 3.05 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.97 | 0.57 | 2.86 | ||||||||||||
PowerShares Dynamic Building & Construction Portfolio (PKB) | ||||||||||||||||
Actual | 1,000.00 | 1,203.30 | 0.62 | 3.39 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.72 | 0.62 | 3.11 | ||||||||||||
PowerShares Dynamic Energy Exploration & Production Portfolio (PXE) | ||||||||||||||||
Actual | 1,000.00 | 993.20 | 0.63 | 3.11 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.67 | 0.63 | 3.16 | ||||||||||||
PowerShares Dynamic Food & Beverage Portfolio (PBJ) | ||||||||||||||||
Actual | 1,000.00 | 1,042.30 | 0.59 | 2.99 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.87 | 0.59 | 2.96 | ||||||||||||
PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ) | ||||||||||||||||
Actual | 1,000.00 | 1,154.00 | 0.60 | 3.20 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.82 | 0.60 | 3.01 | ||||||||||||
PowerShares Dynamic Media Portfolio (PBS) | ||||||||||||||||
Actual | 1,000.00 | 1,136.50 | 0.63 | 3.34 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.67 | 0.63 | 3.16 | ||||||||||||
PowerShares Dynamic Networking Portfolio (PXQ) | ||||||||||||||||
Actual | 1,000.00 | 1,130.80 | 0.63 | 3.33 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.67 | 0.63 | 3.16 | ||||||||||||
PowerShares Dynamic Oil & Gas Services Portfolio (PXJ) | ||||||||||||||||
Actual | 1,000.00 | 1,003.60 | 0.63 | 3.13 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.67 | 0.63 | 3.16 |
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Fees and Expenses (continued)
Beginning Account Value November 1, 2016 | Ending Account Value April 30, 2017 | 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 | $ | 1,080.50 | 0.56 | % | $ | 2.89 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.02 | 0.56 | 2.81 | ||||||||||||
PowerShares Dynamic Retail Portfolio (PMR) | ||||||||||||||||
Actual | 1,000.00 | 1,051.80 | 0.63 | 3.21 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.67 | 0.63 | 3.16 | ||||||||||||
PowerShares Dynamic Semiconductors Portfolio (PSI) | ||||||||||||||||
Actual | 1,000.00 | 1,327.20 | 0.63 | 3.64 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.67 | 0.63 | 3.16 | ||||||||||||
PowerShares Dynamic Software Portfolio (PSJ) | ||||||||||||||||
Actual | 1,000.00 | 1,138.40 | 0.63 | 3.34 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.67 | 0.63 | 3.16 |
(1) | Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six-month period ended April 30, 2017. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the results by 181/365. 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, 2017:
Qualified Dividend Income* | Dividends-Received Deduction* | |||||||||
PowerShares Dynamic Biotechnology & Genome Portfolio | 31 | % | 31 | % | ||||||
PowerShares Dynamic Building & Construction Portfolio | 100 | % | 100 | % | ||||||
PowerShares Dynamic Energy Exploration & Production Portfolio | 41 | % | 41 | % | ||||||
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 | 100 | % | 100 | % | ||||||
PowerShares Dynamic Oil & Gas Services Portfolio | 100 | % | 76 | % | ||||||
PowerShares Dynamic Pharmaceuticals Portfolio | 100 | % | 100 | % | ||||||
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. |
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The Independent Trustees 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 (as defined below) overseen by each Independent Trustee and the other directorships, if any, held by an Independent Trustee are shown below.
The information is current as of April 30, 2017.
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). | 135 | 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. | 135 | 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; 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). | 135 | 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- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 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). | 135 | 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). | 135 | 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); President and Chief Executive Officer, Stone Pillar Investments, Ltd. (2016-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). | 135 | 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- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser. |
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Trustees and Officers (continued)
The Unaffiliated Trustee, his term of office and length of time served, his principal business occupations during at least the past five years, the number of portfolios in the Fund Complex (as defined below) overseen by the Unaffiliated Trustee and the other directorships, if any, held by the Unaffiliated Trustee, are shown below.
The information is current as of April 30, 2017.
Name, Address and Year of Birth of Unaffiliated Trustee | 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 Unaffiliated Trustee | Other Directorships Held by Unaffiliated Trustee During the Past 5 Years | |||||
Philip M. Nussbaum—1961 c/o Invesco PowerShares 3500 Lacey Road, Downers Grove, IL 60515 | Trustee** | Since 2003 | Chairman, Performance Trust Capital Partners (2004-Present). | 135 | None |
* | This is the date the Unaffiliated Trustee began serving the Trust. The Unaffiliated Trustee serves an indefinite term, until his successor is elected. |
** | Effective May 18, 2016, Mr. Nussbaum became an Unaffiliated Trustee. |
*** | Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser. |
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Trustees and Officers (continued)
The Interested Trustee 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 (as defined below) overseen by the Interested Trustees and the other directorships, if any, held by the Interested Trustee are shown below.
The information is current as of April 30, 2017.
Name, Address and Year of Birth of Interested Trustee | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex** Overseen by Interested Trustee | Other Directorships Held by Interested Trustee 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 Holding Company (US), Inc., Invesco Finance, Inc., Invesco Group Services, Inc., Invesco North American Holdings, Inc. and INVESCO Asset Management (Bermuda) Ltd.; Executive Vice President, Invesco Investments (Bermuda) Ltd., Manager, Horizon Flight Works LLC; Director and Secretary, Invesco Services (Bahamas) Private Limited; formerly, Director and Chairman, INVESCO Funds Group, Inc., Senior Vice President, Secretary and General Counsel, Invesco Advisers, Inc. (2003-2006); Director, Invesco Investments (Bermuda) Ltd. (2008-2016); 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. | 135 | None |
* | This is the date the Interested Trustee began serving the Trust. The Interested Trustee serves an indefinite term, until his successor is elected. |
** | Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 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 and Principal 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). | |||
Adam Henkel—1980 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chief Compliance Officer | Since 2017 | Chief Compliance Officer of Invesco PowerShares Capital Management LLC (2017-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 and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2017-Present); formerly, Senior Counsel, Invesco, Ltd. (2013-2017); and Assistant Vice President, U.S. Bancorp Fund Services, LLC (2010-2013). | |||
Steven M. Hill—1964 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Vice President and Treasurer | Since 2012 | 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). |
* | This is the date the Officer 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 and Principal Executive Officer, The Invesco Funds (2016-Present); Treasurer, The Invesco Funds (2008-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 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); Manager and Assistant Secretary, Invesco Indexing LLC (2017-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.) (2011-Present); 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 date the Officer 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 11, 2017, 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 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 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, (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 the Funds.
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. (“Invesco”), 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, 2016, 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 Invesco’s Global Performance Measurement and Risk Group, an independent organization within Invesco, 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
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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)
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 contractual advisory fee, net advisory fee, and gross and net expense ratio. The Trustees also compared each Fund’s contractual advisory fee and net expense ratio to information compiled by the Adviser from Lipper Inc. databases on the net 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 contractual 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 (The net advisory fees, after giving effect to the Expense Caps as defined below, was -0.01% for PowerShares Russell 2000 Pure Growth 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 as defined below, were -0.06%, -0.19% and -0.62%, 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 contractual 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, 2018, 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; |
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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 contractual advisory fees for certain Funds were equal to or lower than the median net advisory fees of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the contractual advisory fees for all of the Funds were lower than the median net 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 AchieversTM Portfolio | X | |||||
PowerShares CleantechTM Portfolio | X | |||||
PowerShares Dividend AchieversTM Portfolio | 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 | 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 | ||||
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 | X | ||||
PowerShares Global Listed Private Equity Portfolio | N/A | X | ||||
PowerShares Golden Dragon China Portfolio | X | N/A | X | |||
PowerShares High Yield Equity Dividend AchieversTM Portfolio | X | |||||
PowerShares International Dividend AchieversTM Portfolio | X | N/A | 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 contractual 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 AchieversTM Portfolio | X | |||||
PowerShares CleantechTM Portfolio | X | |||||
PowerShares Dividend AchieversTM Portfolio | X | X | ||||
PowerShares DWA Basic Materials Momentum Portfolio | X | |||||
PowerShares DWA Consumer Cyclicals 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 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 | 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 | |||||
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 | X | |||
PowerShares Russell Midcap Pure Growth Portfolio | 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 AchieversTM Portfolio | X | X | ||||
PowerShares International Dividend AchieversTM Portfolio | N/A | X | ||||
PowerShares S&P 500® Quality Portfolio | X | X | X | |||
PowerShares Water Resources Portfolio | X | |||||
PowerShares WilderHill Clean Energy 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 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. |
In response to questions from the Independent Trustees, the Adviser provided supplemental information regarding each of PowerShares Dynamic Energy Exploration & Production Portfolio, PowerShares Dynamic Large Cap Growth Portfolio, PowerShares Global Listed Private Equity Portfolio and PowerShares Russell Top 200 Pure Growth Portfolio’s advisory fees and total expenses and the Lipper peer data. The Adviser explained in detail its view that it believes that the advisory fees and total expenses for these Funds are competitive and generally in line with other comparable funds in the marketplace, noting, in particular, the unique underlying investment strategy and complexity of each Fund, the limited number of peers in the Lipper data, and/or the differing pricing philosophy of certain of the peers.
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 the Funds, 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 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.powershares.com.
P-PS-AR-7 | ||||||
©2017 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | ||||||
powershares.com 800 983 0903 | @PowerShares |
April 30, 2017 |
2017 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 | ||||
33 | ||||
34 | ||||
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 Agreements | 80 |
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US Equity
During the fiscal year ended April 30, 2017, the US economy continued to expand and strengthen, with unemployment declining and inflation ticking upward somewhat. Signs of an improving economy prompted the US Federal Reserve to raise interest rates in December 2016 and again in March 2017. Major US stock market indexes posted gains for the reporting period, with most hitting record highs following the US presidential election. Investors seemed to believe that the new administration’s plans to reduce tax rates, scale back regulations and increase infrastructure spending had the potential to stimulate economic growth.
While US and overseas stock markets were jolted by the UK’s decision in June 2016 to leave the European Union, markets recovered relatively quickly. During the second half of calendar 2016, small-cap stocks led the US market while large-cap stocks lagged—but that reversed in the first quarter of calendar 2017. Near the close of the fiscal year, headlines out of Washington, DC, suggested that enacting significant regulatory and tax reform might be somewhat more difficult than previously anticipated; this was a slight negative for investor sentiment. For the reporting period as a whole, information technology and financials were the strongest-performing sectors, while telecommunication services and energy were the weakest-performing sectors.
Global Equity
The fiscal year ended April 30, 2017, began on a negative note, with global equity investors concerned about economic weakness in China, falling oil prices and uncertainty over the US Federal Reserve’s (the “Fed”) monetary policy. Central banks, including the Fed, the European Central Bank and the Bank of Japan, soothed investors’ nerves throughout the reporting period with accommodative monetary policies and dovish rhetoric. Other factors contributing to investor sentiment included rebounding oil prices and, in the US, generally positive economic data.
In June 2016, the decision by UK voters to leave the European Union caused global markets to decline sharply, but only briefly. The outcome of the November US presidential election caused US stocks, particularly in the health care and financials sector, to rally. However, non-US equities, particularly emerging market equities, traded lower due to currency weakness and the potential for a less favorable trade environment. Also in November, OPEC agreed to cut production for the first time in eight years; the agreement helped support higher oil prices and energy stocks.
Global equity markets began calendar 2017 with a broad rally that marked the best first quarter for equities since 2013. Volatility was largely absent, and emerging market equities posted double-digit gains in the quarter. Improved consumer confidence and eurozone employment data fueled positive market sentiment, while investors generally shrugged off Fed interest rate hikes in
December 2016 and March 2017. For the reporting period as a whole, US equities outperformed non-US equities, and emerging markets outperformed their developed-market counterparts (excluding the US)—a reversal from previous years.
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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 Index is composed of at least 30 common stocks of companies in the basic materials sector that have powerful relative strength or “momentum” characteristics. Dorsey, Wright & Associates, LLC (the “Index Provider”) selects these common stocks from approximately 2,000 of the largest constituents by dollar volume within the NASDAQ US Benchmark Index. “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.
Strictly in accordance with its guidelines and mandated procedures, the Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “momentum” score. 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. After giving each eligible security a momentum score, the Index Provider selects at least 30 common stocks with the highest momentum scores from the basic materials sector for inclusion in the Index. Companies in the basic materials sector are principally engaged in the business of producing raw materials, including paper or wood products, chemicals, construction materials, and mining and metals. The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities 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, 2017, on a market price basis, the Fund returned 13.98%. On a net asset value (“NAV”) basis, the Fund returned 14.04%. During the same time period, the Index returned 14.84%. 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, as well as trading costs around the rebalances during the period.
During this same time period, the S&P 500® Materials Index (the “Benchmark Index”) returned 15.18%. 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 benchmark similar to the Index. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a representation of the materials sector.
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 most overweight in the specialty chemicals sub-industry and most underweight in the diversified chemicals sub-industry during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund being overweight the steel sub-industry and underweight the construction materials sub-industry, as well as stock selection in the commodity chemicals sub-industry, and fees and operating expenses that the Fund incurred during the period.
For the fiscal year ended April 30, 2017, the specialty chemicals sub-industry contributed most significantly to the Fund’s return, followed by the diversified chemicals and silver sub-industries, respectively. The steel sub-industry detracted most significantly from the Fund’s return, followed by the gold and commodity chemicals sub-industries, respectively.
Positions that contributed most significantly to the Fund’s return included Chemours Co. (The), a diversified chemicals company (portfolio average weight of 3.03%), and Albemarle Corp., a specialty chemicals company (portfolio average weight of 3.18%). Positions that detracted most significantly from the Fund’s return included Gold Resource Corp., a metals & mining company (no longer held at fiscal year-end), and United States Steel Corp., a metals & mining company (portfolio average weight of 2.51%).
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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, 2017 | ||||
Specialty Chemicals | 38.0 | |||
Steel | 16.7 | |||
Diversified Chemicals | 9.9 | |||
Paper Packaging | 8.0 | |||
Commodity Chemicals | 5.8 | |||
Fertilizers & Agricultural Chemicals | 5.0 | |||
Industrial Gases | 3.7 | |||
Paper Products | 3.2 | |||
Forest Products | 2.2 | |||
Copper | 2.1 | |||
Aerospace & Defense | 2.1 | |||
Oil & Gas Equipment & Services | 2.0 | |||
Gold | 1.3 | |||
Money Market Fund Plus Other Assets Less Liabilities | (0.0) | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
Chemours Co. (The) | 5.4 | |||
FMC Corp. | 5.0 | |||
International Paper Co. | 4.6 | |||
Ashland Global Holdings, Inc. | 4.1 | |||
Air Products & Chemicals, Inc. | 3.8 | |||
Steel Dynamics, Inc. | 3.5 | |||
Avery Dennison Corp. | 3.3 | |||
Albemarle Corp. | 3.2 | |||
Ecolab, Inc. | 3.0 | |||
LyondellBasell Industries NV, Class A | 3.0 | |||
Total | 38.9 |
* | Excluding money market fund holdings. |
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PowerShares DWA Basic Materials Momentum Portfolio (PYZ) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
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-Dorsey Wright® Basic Materials Technical Leaders Index† | 14.84 | % | 7.32 | % | 23.61 | % | 12.01 | % | 76.33 | % | 9.16 | % | 140.26 | % | 11.02 | % | 201.19 | % | ||||||||||||||||||||||
S&P 500® Materials Index | 15.18 | 5.75 | 18.28 | 9.96 | 60.77 | 5.69 | 73.96 | 7.29 | 110.04 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 14.04 | 6.61 | 21.16 | 11.26 | 70.49 | 8.28 | 121.51 | 10.11 | 176.20 | |||||||||||||||||||||||||||||||
Market Price Return | 13.98 | 6.62 | 21.21 | 11.28 | 70.67 | 8.27 | 121.30 | 10.11 | 176.31 |
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, 2018. 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 Shareholder 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
powershares.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® 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, 2017. |
†† | Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund. |
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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 Index is composed of at least 30 common stocks of companies in the consumer discretionary (or cyclicals) sector that have powerful relative strength or “momentum” characteristics. Dorsey, Wright & Associates, LLC (the “Index Provider”) selects these common stocks from approximately 2,000 of the largest constituents by dollar volume within the NASDAQ US Benchmark Index. “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.
Strictly in accordance with its guidelines and mandated procedures, the Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “momentum” score. 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. After giving each eligible security a momentum score, the Index Provider selects at least 30 common stocks with the highest momentum scores from the consumer discretionary sector for inclusion in the Index. Companies in the consumer discretionary sector 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. The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities 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, 2017, on a market price basis, the Fund returned 5.90%. On a net asset value (“NAV”) basis, the Fund returned 5.85%. During the same time period, the Index returned 6.55%. 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, as well as trading costs around the rebalances during the period.
During this same time period, the S&P 500® Consumer Discretionary Index (the “Benchmark Index”) returned 15.78%. 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 benchmark similar to the Index. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a representation of the consumer discretionary sector.
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. More broadly, for the fiscal year, the Index weighting included small, mid and large capitalized components while the Benchmark Index was predominantly weighted to large capitalized components.
Relative to the Benchmark Index, the Fund was most overweight in the home entertainment software sub-industry and most underweight in the internet & direct marketing retail sub-industry during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund being overweight the airlines sub-industry, and underweight internet & direct marketing retail, movies & entertainment and the home improvement retail sub-industries.
For the fiscal year ended April 30, 2017, the internet & direct marketing retail sub-industry contributed most significantly to the Fund’s return followed by the home entertainment software and restaurants sub-industries, respectively. The footwear sub-industry detracted most significantly from the Fund’s return, followed by the airlines and specialty stores sub-industries, respectively.
Positions that contributed most significantly to the Fund’s return included Domino’s Pizza, Inc., a restaurants company (portfolio average weight of 5.41%), and Take-Two Interactive Software, Inc., a home entertainment software company (portfolio average weight of 3.10%). Positions that detracted most significantly from the Fund’s return included Skechers U.S.A., Inc., Class A, a footwear company (no longer held at fiscal year-end), and L Brands, Inc., an apparel retail 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, 2017 | ||||
Apparel Retail | 12.3 | |||
Internet & Direct Marketing Retail | 12.0 | |||
Home Entertainment Software | 9.5 | |||
Cable & Satellite | 8.6 | |||
Restaurants | �� | 8.3 | ||
Auto Parts & Equipment | 6.5 | |||
Casinos & Gaming | 5.3 | |||
Broadcasting | 5.1 | |||
Airlines | 4.9 | |||
Automotive Retail | 4.1 | |||
Home Improvement Retail | 2.6 | |||
Leisure Facilities | 2.6 | |||
Specialty Stores | 2.5 | |||
Automobile Manufacturers | 2.4 | |||
Hypermarkets & Super Centers | 2.3 | |||
Tires & Rubber | 2.2 | |||
Industrial Machinery | 2.2 | |||
General Merchandise Stores | 1.9 | |||
Home Furnishings | 1.6 | |||
Specialized REITs | 1.6 | |||
Office Services & Supplies | 1.5 | |||
Money Market Funds Plus Other Assets Less Liabilities | (0.0) | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
Priceline Group, Inc. (The) | 5.1 | |||
Amazon.com, Inc. | 4.7 | |||
Ross Stores, Inc. | 4.6 | |||
O’Reilly Automotive, Inc. | 4.1 | |||
Domino’s Pizza, Inc. | 4.1 | |||
Electronic Arts, Inc. | 3.4 | |||
Take-Two Interactive Software, Inc. | 3.4 | |||
Charter Communications, Inc., Class A | 3.2 | |||
Sirius XM Holdings, Inc. | 3.2 | |||
Southwest Airlines Co. | 3.1 | |||
Total | 38.9 |
* | Excluding money market fund holdings. |
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PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
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-Dorsey Wright® Consumer Cyclicals Technical Leaders Index† | 6.55 | % | 4.91 | % | 15.47 | % | 9.64 | % | 58.40 | % | 5.81 | % | 75.93 | % | 6.78 | % | 99.76 | % | ||||||||||||||||||||||
S&P 500® Consumer Discretionary Index | 15.78 | 14.06 | 48.37 | 16.51 | 114.67 | 10.60 | 173.91 | 10.71 | 192.46 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 5.85 | 4.22 | 13.20 | 8.90 | 53.17 | 5.17 | 65.47 | 6.12 | 87.19 | |||||||||||||||||||||||||||||||
Market Price Return | 5.90 | 4.27 | 13.38 | 8.91 | 53.25 | 5.16 | 65.46 | 6.13 | 87.30 |
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, 2018. 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 Shareholder 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
powershares.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® 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, 2017. |
†† | Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund. |
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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 Index is composed of at least 30 common stocks of companies in the consumer staples sector that have powerful relative strength or “momentum” characteristics. Dorsey, Wright & Associates, LLC (the “Index Provider”) selects these common stocks from approximately 2,000 of the largest constituents by dollar volume within the NASDAQ US Benchmark Index. “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.
Strictly in accordance with its guidelines and mandated procedures, the Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “momentum” score. 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. After giving each eligible security a momentum score, the Index Provider selects at least 30 common stocks with the highest momentum scores from the consumer staples sector for inclusion in the Index. Companies in the consumer staples sector are principally engaged in the businesses of providing consumer goods and services that have non-cyclical characteristics, including tobacco, textiles, food and beverages, and non-discretionary retail goods and services. The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities 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, 2017, on a market price basis, the Fund returned 8.12%. On a net asset value (“NAV”) basis, the Fund returned 8.12%. During the same time period, the Index returned 8.84%. 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, as well as trading costs around the rebalances during the period
During this same time period, the S&P 500® Consumer Staples Index (the “Benchmark Index”) returned 8.64%. 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 benchmark similar to the Index. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a representation of the consumer staples sector.
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 most overweight in the packaged foods & meats sub-industry and most underweight in the soft drinks sub-industry during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to fees and operating expenses that the Fund incurred.
For the fiscal year ended April 30, 2017, the education services sub-industry contributed most significantly to the Fund’s return, followed by the tobacco and internet & direct marketing retail sub-industries, respectively. The personal products sub-industry detracted most significantly from the Fund’s return, followed by the packaged foods & meats and household appliances sub-industries, respectively.
Positions that contributed most significantly to the Fund’s return included Nutrisystem, Inc., an internet & direct marketing retail company (portfolio average weight of 2.11%), and DeVry Education Group, Inc., an education services company (portfolio average weight of 1.37%). Positions that detracted most significantly from the Fund’s return included Amplify Snack Brands, Inc., a packaged foods & meats company (no longer held at fiscal year-end), and Estee Lauder Cos., Inc. (The), Class A, a personal products 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, 2017 | ||||
Packaged Foods & Meats | 21.9 | |||
Household Products | 15.6 | |||
Tobacco | 8.5 | |||
Soft Drinks | 8.2 | |||
Education Services | 6.7 | |||
Distillers & Vintners | 6.4 | |||
Specialized Consumer Services | 4.7 | |||
Trading Companies & Distributors | 4.4 | |||
Agricultural Products | 3.5 | |||
Housewares & Specialties | 3.4 | |||
Environmental & Facilities Services | 2.9 | |||
Personal Products | 2.8 | |||
Internet & Direct Marketing Retail | 2.5 | |||
Industrial Machinery | 2.4 | |||
Brewers | 2.4 | |||
Health Care Services | 2.2 | |||
Food Distributors | 1.5 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
Church & Dwight Co., Inc. | 4.6 | |||
Constellation Brands, Inc., Class A | 4.6 | |||
Altria Group, Inc. | 4.3 | |||
Dr Pepper Snapple Group, Inc. | 3.6 | |||
McCormick & Co., Inc. | 3.5 | |||
Ingredion, Inc. | 3.5 | |||
Newell Brands, Inc. | 3.4 | |||
Spectrum Brands Holdings, Inc. | 3.4 | |||
United Rentals, Inc. | 3.1 | |||
Post Holdings, Inc. | 3.0 | |||
Total | 37.0 |
* | Excluding money market fund holdings. |
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PowerShares DWA Consumer Staples Momentum Portfolio (PSL) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
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-Dorsey Wright® Consumer Staples Technical Leaders Index† | 8.84 | % | 13.59 | % | 46.55 | % | 15.19 | % | 102.84 | % | 10.16 | % | 163.08 | % | 10.89 | % | 197.54 | % | ||||||||||||||||||||||
S&P 500® Consumer Staples Index | 8.64 | 10.61 | 35.33 | 13.06 | 84.76 | 10.33 | 167.29 | 10.71 | 192.48 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 8.12 | 12.87 | 43.80 | 14.46 | 96.49 | 9.42 | 145.96 | 10.15 | 177.18 | |||||||||||||||||||||||||||||||
Market Price Return | 8.12 | 12.88 | 43.84 | 14.47 | 96.57 | 9.41 | 145.75 | 10.15 | 177.13 |
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, 2018. 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 Shareholder 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
powershares.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® 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, 2017. |
†† | Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund. |
| 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 Index is composed of at least 30 common stocks of companies in the energy sector that have powerful relative strength or “momentum” characteristics. Dorsey, Wright & Associates, LLC (the “Index Provider”) selects these common stocks from approximately 2,000 of the largest constituents by dollar volume within the NASDAQ US Benchmark Index. “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.
Strictly in accordance with its guidelines and mandated procedures, the Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “momentum” score. 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. After giving each eligible security a momentum score, the Index Provider selects at least 30 common stocks with the highest momentum scores from the energy sector for inclusion in the Index. Companies in the energy sector 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. The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities 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, 2017, on a market price basis, the Fund returned (3.60)%. On a net asset value (“NAV”) basis, the Fund returned (3.60)%. During the same time period, the Index returned (3.21)%. 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 S&P 500® Energy Index (the “Benchmark Index”) returned 2.08%. 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 benchmark similar to the Index. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a representation of the energy sector.
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 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, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund being overweight the oil & gas drilling sub-industry as well as stock selection in the oil & gas equipment & services and the oil & gas exploration & production sub-industries.
For the fiscal year ended April 30, 2017, the coal & consumable fuels sub-industry contributed most significantly to the Fund’s return, followed by the oil & gas refining & marketing and oil & gas storage & transportation sub-industries, respectively. The oil & gas drilling sub-industry detracted most significantly from the Fund’s return, followed by the oil & gas equipment & services and oil & gas exploration & production sub-industries, respectively.
Positions that contributed most significantly to the Fund’s return included Clayton Williams Energy, Inc., an oil & gas exploration & production company (no longer held at fiscal year-end), and Targa Resources Corp., an oil & gas storage & transportation company (portfolio average weight of 3.36%). Positions that detracted most significantly from the Fund’s return included Whiting Petroleum Corp., an oil & gas exploration & production company (portfolio average weight of 1.47%), and Bill Barrett Corp., an oil & gas exploration & production company (no longer held at fiscal year-end).
| 13 |
|
PowerShares DWA Energy Momentum Portfolio (PXI) (continued)
Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Oil & Gas Exploration & Production | 45.1 | |||
Oil & Gas Refining & Marketing | 13.6 | |||
Oil & Gas Equipment & Services | 12.6 | |||
Oil & Gas Storage & Transportation | 10.4 | |||
Oil & Gas Drilling | 9.1 | |||
Integrated Oil & Gas | 5.5 | |||
Coal & Consumable Fuels | 2.2 | |||
Specialty Chemicals | 1.5 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
Cheniere Energy, Inc. | 4.5 | |||
Concho Resources, Inc. | 4.3 | |||
Targa Resources Corp. | 3.9 | |||
Diamondback Energy, Inc. | 3.9 | |||
Pioneer Natural Resources Co. | 3.9 | |||
Parsley Energy, Inc., Class A | 3.8 | |||
Marathon Petroleum Corp. | 3.6 | |||
WPX Energy, Inc. | 3.6 | |||
Valero Energy Corp. | 3.5 | |||
RSP Permian, Inc. | 3.3 | |||
Total | 38.3 |
* | Excluding money market fund holdings. |
| 14 |
|
PowerShares DWA Energy Momentum Portfolio (PXI) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
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-Dorsey Wright® Energy Technical Leaders Index† | (3.21 | )% | (14.07 | )% | (36.56 | )% | (0.35 | )% | (1.76 | )% | 2.81 | % | 31.87 | % | 4.79 | % | 63.76 | % | ||||||||||||||||||||||
S&P 500® Energy Index | 2.08 | (7.47 | ) | (20.78 | ) | 1.32 | 6.77 | 2.54 | 28.47 | 4.20 | 54.43 | |||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | (3.60 | ) | (14.58 | ) | (37.68 | ) | (0.99 | ) | (4.85 | ) | 2.18 | 24.05 | 4.15 | 53.56 | ||||||||||||||||||||||||||
Market Price Return | (3.60 | ) | (14.57 | ) | (37.65 | ) | (1.00 | ) | (4.92 | ) | 2.17 | 23.98 | 4.15 | 53.63 |
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, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.76% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder 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
powershares.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® 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, 2017. |
†† | Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund. |
| 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. The Index is composed of at least 30 common stocks of companies in the financials sector that have powerful relative strength or “momentum” characteristics. Dorsey, Wright & Associates, LLC (the “Index Provider”) selects these common stocks from approximately 2,000 of the largest constituents by dollar volume within the NASDAQ US Benchmark Index. “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.
Strictly in accordance with its guidelines and mandated procedures, the Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “momentum” score. 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 Underlying 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. After giving each eligible security a momentum score, the Index Provider selects at least 30 common stocks with the highest momentum scores from the financial sector for inclusion in the Index. Companies in the financial services sector are principally engaged in the business of providing services and products, including banking, investment services, insurance and real estate finance services. The Index Provider weights each security by its momentum score, with higher scoring securities 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, 2017, on a market price basis, the Fund returned 6.41%. On a net asset value (“NAV”) basis, the Fund returned 6.51%. During the same time period, the Index returned 7.27%. 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, as well as trading costs around the rebalances during the period.
During this same time period, the S&P 500® Financials Index (the “Benchmark Index”) returned 27.16%. 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 a benchmark similar to the Index. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a representation of the financials sector.
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. More broadly, for the fiscal year, the Index weighting included small, mid and large capitalized components while the Benchmark Index was predominantly weighted to large capitalized components.
Relative to the Benchmark Index, the Fund was most overweight in the regional banks sub-industry and most underweight in the diversified banks sub-industry during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund being overweight the retail real estate investment trust (“REIT”) and specialized REITs sub-industries, and underweight the diversified bank sub-industry.
For the fiscal year ended April 30, 2017, the regional banks sub-industry contributed most significantly to the Fund’s return, followed by the life & health insurance and property & casualty insurance sub-industries, respectively. The specialized REITs sub-industry detracted most significantly from the Fund’s return, followed by the investment banking & brokerage and retail REITs sub-industries, respectively.
Positions that contributed most significantly to the Fund’s return included Principal Financial Group, Inc., a life & health insurance company (portfolio average weight of 1.62%), and Western Alliance Bancorp, a regional banks company (portfolio average weight of 2.39%). Positions that detracted most significantly from the Fund’s return included Bank of the Ozarks, Inc., a regional banks company (portfolio average weight of 1.46%), and Genworth Financial, Inc., Class A, a life & health insurance 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, 2017 | ||||
Regional Banks | 47.1 | |||
Life & Health Insurance | 17.2 | |||
Investment Banking & Brokerage | 8.2 | |||
Diversified Banks | 6.5 | |||
Multi-line Insurance | 4.5 | |||
Property & Casualty Insurance | 4.2 | |||
Specialized REITs | 3.0 | |||
Financial Exchanges & Data | 2.6 | |||
Reinsurance | 2.0 | |||
Mortgage REITs | 1.9 | |||
Consumer Finance | 1.9 | |||
Thrifts & Mortgage Finance | 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, 2017 | ||||
Security | ||||
Fifth Third Bancorp | 4.7 | |||
Unum Group | 4.6 | |||
Bank of the Ozarks, Inc. | 4.2 | |||
JPMorgan Chase & Co. | 4.2 | |||
Huntington Bancshares, Inc. | 3.7 | |||
Principal Financial Group, Inc. | 3.3 | |||
Prudential Financial, Inc. | 3.1 | |||
E*TRADE Financial Corp. | 2.6 | |||
MarketAxess Holdings, Inc. | 2.6 | |||
Western Alliance Bancorp | 2.5 | |||
Total | 35.5 |
* | Excluding money market fund holdings. |
| 17 |
|
PowerShares DWA Financial Momentum Portfolio (PFI) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
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-Dorsey Wright® Financials Technical Leaders Index† | 7.27 | % | 5.60 | % | 17.76 | % | 11.28 | % | 70.66 | % | 3.68 | % | 43.47 | % | 4.06 | % | 52.17 | % | ||||||||||||||||||||||
S&P 500® Financials Index | 27.16 | 11.91 | 40.17 | 15.74 | 107.66 | (0.31 | ) | (3.06 | ) | 0.26 | 2.81 | |||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 6.51 | 4.89 | 15.41 | 10.50 | 64.73 | 2.88 | 32.84 | 3.27 | 40.44 | |||||||||||||||||||||||||||||||
Market Price Return | 6.41 | 4.91 | 15.46 | 10.49 | 64.70 | 2.87 | 32.66 | 3.27 | 40.40 |
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, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.84% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder 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
powershares.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® 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, 2017. |
†† | Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund. |
| 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 Index is composed of at least 30 common stocks of companies in the healthcare sector that have powerful relative strength or “momentum” characteristics. Dorsey, Wright & Associates, LLC (the “Index Provider”) selects these common stocks from approximately 2,000 of the largest constituents by dollar volume within the NASDAQ US Benchmark Index. “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.
Strictly in accordance with its guidelines and mandated procedures, the Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “momentum” score. 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. After giving each eligible security a momentum score, the Index Provider selects at least 30 common stocks with the highest momentum scores from the healthcare sector for inclusion in the Index. Companies in the healthcare sector are principally engaged in the business of providing healthcare-related products and services, including biotechnology, pharmaceuticals, medical technology and supplies, and facilities. The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities 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, 2017, on a market price basis, the Fund returned 24.26%. On a net asset value (“NAV”) basis, the Fund returned 24.19%. During the same time period, the Index returned 25.04%. 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, as well as trading costs around the rebalances during the period.
During this same time period, the S&P 500® Health Care Index (the “Benchmark Index”) returned 10.09%. 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 a benchmark similar to the Index. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a representation of the health care sector.
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 most overweight in the health care equipment sub-industry and most underweight in the pharmaceuticals sub-industry during the fiscal year ended April 30, 2017. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to the Fund being overweight the biotechnology, health care equipment and health care supplies sub-industries.
For the fiscal year ended April 30, 2017, the health care equipment sub-industry contributed most significantly to the Fund’s return, followed by the biotechnology and health care supplies sub-industries, respectively. The health care services sub-industry detracted most significantly from the Fund’s return, followed by the health care facilities and life sciences tools & services sub-industries, respectively.
Positions that contributed most significantly to the Fund’s return included Exelixis, Inc., a biotechnology company (portfolio average weight of 3.98%), and Sarepta Therapeutics, Inc., a biotechnology company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Puma Biotechnology, Inc., a biotechnology company (no longer held at fiscal year-end), and DexCom, Inc., a health care equipment 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, 2017 | ||||
Biotechnology | 42.4 | |||
Health Care Equipment | 24.5 | |||
Managed Health Care | 10.8 | |||
Pharmaceuticals | 9.1 | |||
Health Care Supplies | 7.8 | |||
Health Care Services | 3.6 | |||
Life Sciences Tools & Services | 1.8 | |||
Money Market Funds Plus Other Assets Less Liabilities | (0.0) | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
Exact Sciences Corp. | 5.9 | |||
Exelixis, Inc. | 5.4 | |||
Masimo Corp. | 4.4 | |||
Clovis Oncology, Inc. | 4.0 | |||
Align Technology, Inc. | 3.8 | |||
Esperion Therapeutics, Inc. | 3.7 | |||
UnitedHealth Group, Inc. | 3.6 | |||
Becton, Dickinson and Co. | 3.4 | |||
IDEXX Laboratories, Inc. | 2.9 | |||
Boston Scientific Corp. | 2.9 | |||
Total | 40.0 |
* | Excluding money market fund holdings. |
| 20 |
|
PowerShares DWA Healthcare Momentum Portfolio (PTH) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
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-Dorsey Wright® Healthcare Technical Leaders Index† | 25.04 | % | 7.44 | % | 24.03 | % | 12.37 | % | 79.13 | % | 7.75 | % | 110.86 | % | 8.74 | % | 142.02 | % | ||||||||||||||||||||||
S&P 500® Health Care Index | 10.09 | 10.86 | 36.26 | 17.06 | 119.84 | 9.76 | 153.73 | 10.18 | 178.05 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 24.19 | 6.67 | 21.37 | 11.57 | 72.87 | 6.96 | 95.99 | 7.95 | 124.04 | |||||||||||||||||||||||||||||||
Market Price Return | 24.26 | 6.66 | 21.35 | 11.56 | 72.79 | 6.95 | 95.89 | 7.95 | 124.00 |
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, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.70% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder 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
powershares.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® 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, 2017. |
†† | Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund. |
| 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 Index is composed of at least 30 common stocks of companies in the industrials sector that have powerful relative strength or “momentum” characteristics. Dorsey, Wright & Associates, LLC (the “Index Provider”) selects these common stocks from approximately 2,000 of the largest constituents by dollar volume within the NASDAQ US Benchmark Index. “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 as compared to that of a benchmark index.
Strictly in accordance with its guidelines and mandated procedures, the Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “momentum” score. 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. After giving each eligible security a momentum score, the Index Provider selects at least 30 common stocks with the highest momentum scores from the industrials sector for inclusion in the Index. Companies in the industrials sector 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. The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities 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, 2017, on a market price basis, the Fund returned 16.48%. On a net asset value (“NAV”) basis, the Fund returned 16.50%. During the same time period, the Index returned 17.28%. 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, as well as trading costs around the rebalances during the period.
During this same time period, the S&P 500® Industrials Index (the “Benchmark Index”) returned 19.40%. 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 a benchmark similar to the Index. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a representation of the industrial sector.
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 most overweight in the building products sub-industry and most underweight in the industrial conglomerates sub-industry during the fiscal year ended April 30, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock selection in the aerospace & defense sub-industry as well as being underweight in the industrial conglomerate sub-industry.
For the fiscal year ended April 30, 2017, the aerospace & defense sub-industry contributed most significantly to the Fund’s return, followed by the building products and industrial machinery sub-industries, respectively. The construction materials sub-industry detracted most significantly from the Fund’s return, followed by the electrical components & equipment and specialty chemicals sub-industries, respectively.
Positions that contributed most significantly to the Fund’s return included A. O. Smith Corp., a building products company (portfolio average weight of 3.73%), and Packaging Corp. of America, a paper packaging company (portfolio average weight of 2.06%). Positions that detracted most significantly from the Fund’s return included Energy Recovery, Inc., an industrial machinery company (no longer held at fiscal year-end), and U.S. Concrete, Inc., a construction materials company (no longer held at fiscal year-end).
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PowerShares DWA Industrials Momentum Portfolio (PRN) (continued)
Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Aerospace & Defense | 19.0 | |||
Industrial Machinery | 10.2 | |||
Building Products | 7.1 | |||
Construction & Engineering | 6.8 | |||
Airport Services | 6.1 | |||
Electronic Components | 5.8 | |||
IT Consulting & Other Services | 4.5 | |||
Life Sciences Tools & Services | 4.2 | |||
Health Care Equipment | 3.1 | |||
Electronic Equipment & Instruments | 2.9 | |||
Paper Packaging | 2.8 | |||
Human Resource & Employment Services | 2.8 | |||
Electronic Manufacturing Services | 2.5 | |||
Data Processing & Outsourced Services | 2.4 | |||
Electrical Components & Equipment | 2.3 | |||
Diversified Support Services | 2.3 | |||
Health Care Services | 2.3 | |||
Trucking | 2.2 | |||
Commodity Chemicals | 2.0 | |||
Agricultural & Farm Machinery | 2.0 | |||
Semiconductor Equipment | 1.8 | |||
Commercial Printing | 1.8 | |||
Trading Companies & Distributors | 1.5 | |||
Distributors | 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, 2017 | ||||
Security | ||||
Macquarie Infrastructure Corp. | 6.1 | |||
Lockheed Martin Corp. | 5.7 | |||
Mettler-Toledo International, Inc. | 4.2 | |||
Dycom Industries, Inc. | 3.6 | |||
Huntington Ingalls Industries, Inc. | 3.3 | |||
Accenture PLC, Class A | 3.2 | |||
Danaher Corp. | 3.1 | |||
Parker-Hannifin Corp. | 2.9 | |||
Coherent, Inc. | 2.9 | |||
Packaging Corp. of America | 2.8 | |||
Total | 37.8 |
* | Excluding money market fund holdings. |
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PowerShares DWA Industrials Momentum Portfolio (PRN) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
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-Dorsey Wright® Industrials Technical Leaders Index† | 17.28 | % | 5.16 | % | 16.28 | % | 13.49 | % | 88.27 | % | 7.71 | % | 110.09 | % | 8.69 | % | 140.97 | % | ||||||||||||||||||||||
S&P 500® Industrials Index | 19.40 | 10.01 | 33.12 | 14.81 | 99.51 | 7.84 | 112.70 | 8.22 | 130.16 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 16.50 | 4.46 | 14.00 | 12.63 | 81.26 | 6.82 | 93.35 | 7.81 | 120.97 | |||||||||||||||||||||||||||||||
Market Price Return | 16.48 | 4.49 | 14.07 | 12.64 | 81.34 | 6.81 | 93.25 | 7.81 | 121.02 |
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, 2018. 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 0.60%. The Financial Highlights section of the Shareholder 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
powershares.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® 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, 2017. |
†† | Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund. |
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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 Index is composed of at least 30 common stocks of companies in the technology sector that have powerful relative strength or “momentum” characteristics. Dorsey, Wright & Associates, LLC (the “Index Provider”) selects these common stocks from approximately 2,000 of the largest constituents by dollar volume within the NASDAQ US Benchmark Index. “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.
Strictly in accordance with its guidelines and mandated procedures, the Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “momentum” score. 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. After giving each security a momentum score, the Index Provider selects at least 30 common stocks with the highest momentum scores from the technology sector for inclusion in the Index. Companies in the technology sector are principally engaged in the business of providing technology-related products and services, including computer hardware and software, Internet, electronics and semiconductors, and wireless communication technologies. The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities 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, 2017, on a market price basis, the Fund returned 25.38%. On a net asset value (“NAV”) basis, the Fund returned 25.46%. During the same time period, the Index returned 25.95%. 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 income received from the securities lending program in which the Fund participates.
During this same time period, the S&P 500® Information Technology Index (the “Benchmark Index”) returned 35.36%. 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 a benchmark similar to the Index. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a representation of the technology sector.
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 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, 2017. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to being underweight the data processing & outsourced services, the systems software and technology hardware storage & peripherals sub-industries.
For the fiscal year ended April 30, 2017, the semiconductors sub-industry contributed most significantly to the Fund’s return, followed by the IT consulting & other services and internet software & services sub-industries, respectively. The internet & direct marketing retail sub-industry detracted most significantly from the Fund’s return, followed by the systems software and electrical components & equipment sub-industries, respectively.
Positions that contributed most significantly to the Fund’s return included NVIDIA Corp., a semiconductors company (no longer held at fiscal year-end), and DXC Technology Co., an IT consulting & other services company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Acacia Communications Inc., a communications equipment company (no longer held at fiscal year-end), and NeoPhotonics Corporation, a semiconductors 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, 2017 | ||||
Semiconductors | 18.0 | |||
Application Software | 15.8 | |||
Internet Software & Services | 13.3 | |||
Technology Hardware, Storage & Peripherals | 11.5 | |||
Semiconductor Equipment | 9.8 | |||
Communications Equipment | 9.5 | |||
Electronic Components | 4.7 | |||
Wireless Telecommunication Services | 4.0 | |||
Health Care Technology | 3.1 | |||
IT Consulting & Other Services | 2.8 | |||
Systems Software | 2.1 | |||
Data Processing & Outsourced Services | 1.9 | |||
Aerospace & Defense | 1.9 | |||
Technology Distributors | 1.6 | |||
Money Market Funds Plus Other Assets Less Liabilities | (0.0) | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
Apple, Inc. | 4.9 | |||
Amphenol Corp., Class A | 4.7 | |||
Advanced Micro Devices, Inc. | 4.2 | |||
T-Mobile US, Inc. | 3.9 | |||
Facebook, Inc., Class A | 3.5 | |||
Applied Optoelectronics, Inc. | 3.4 | |||
Cadence Design Systems, Inc. | 3.1 | |||
Lam Research Corp. | 2.8 | |||
Adobe Systems, Inc. | 2.6 | |||
Micron Technology, Inc. | 2.5 | |||
Total | 35.6 |
* | Excluding money market fund holdings. |
| 26 |
|
PowerShares DWA Technology Momentum Portfolio (PTF) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
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-Dorsey Wright® Technology Technical Leaders Index† | 25.95 | % | 12.74 | % | 43.28 | % | 11.79 | % | 74.63 | % | 5.93 | % | 77.86 | % | 6.49 | % | 94.06 | % | ||||||||||||||||||||||
S&P 500® Information Technology Index | 35.36 | 17.68 | 62.99 | 15.65 | 106.84 | 11.04 | 184.93 | 11.16 | 205.40 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 25.46 | 12.08 | 40.80 | 11.05 | 68.92 | 5.21 | 66.15 | 5.76 | 80.60 | |||||||||||||||||||||||||||||||
Market Price Return | 25.38 | 12.04 | 40.66 | 11.05 | 68.88 | 5.19 | 65.93 | 5.76 | 80.48 |
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, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.70% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder 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
powershares.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® 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, 2017. |
†† | Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund. |
| 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 Index is composed of at least 30 common stocks of companies in the utilities sector that have powerful relative strength or “momentum” characteristics. Dorsey, Wright & Associates, LLC (the “Index Provider”) selects these common stocks from approximately 2,000 of the largest constituents by dollar volume within the NASDAQ US Benchmark Index. “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.
Strictly in accordance with its guidelines and mandated procedures, the Index Provider uses a proprietary methodology to analyze the relative strength of each security within the universe of eligible securities and determine a “momentum” score. 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. After giving each eligible security a momentum score, the Index Provider selects at least 30 common stocks with the highest momentum scores from the utilities sector for inclusion in the Index. Companies in the utilities sector are principally engaged in providing energy, water, natural gas or telecommunications services. These companies 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 telephone services. The total number of securities in the Index may vary depending on the capitalization characteristics of the securities that qualify for inclusion in the Index. The Index Provider weights each security by its momentum score, with higher scoring securities 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, 2017, on a market price basis, the Fund returned 13.78%. On a net asset value (“NAV”) basis, the Fund returned 13.65%. During the same time period, the Index returned 14.28%. 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 income received from the securities lending program in which the Fund participates.
During this same time period, the S&P 500® Utilities Index (the “Benchmark Index”) returned 10.57%. 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 benchmark indices similar to the Index. The Benchmark Index was selected for its recognition in the marketplace, and because its performance comparison is a useful measure for investors as a representation of the utilities sector.
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 most overweight in the gas utilities sub-industry and most underweight in the electric utilities sub-industry during the fiscal year ended April 30, 2017. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to the Fund being overweight the gas utilities sub-industry as well as stock selection in the oil & gas storage & transportation sub-industry.
For the fiscal year ended April 30, 2017, the electric utilities sub-industry contributed most significantly to the Fund’s return, followed by the multi-utilities and gas utilities sub-industries, respectively. The wireless telecommunication services sub-industry was the only detracting sub-industry.
Positions that contributed most significantly to the Fund’s return included ONEOK, Inc., an oil & gas storage & transportation company (portfolio average weight of 3.64%), and NRG Energy, Inc., an independent power producers & energy traders company (portfolio average weight of 1.39%). Positions that detracted most significantly from the Fund’s return included Shenandoah Telecommunications Co., a wireless telecommunication services company (no longer held at fiscal year-end), and TerraForm Power, Inc., Class A, a renewable electricity 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, 2017 | ||||
Electric Utilities | 35.6 | |||
Multi-Utilities | 32.7 | |||
Gas Utilities | 15.3 | |||
Water Utilities | 6.7 | |||
Oil & Gas Storage & Transportation | 3.3 | |||
Independent Power Producers & Energy Traders | 2.5 | |||
Integrated Telecommunication Services | 2.1 | |||
Renewable Electricity | 1.7 | |||
Other Assets Less Liabilities | 0.1 | |||
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Security | ||||
PG&E Corp. | 3.8 | |||
Edison International | 3.7 | |||
CMS Energy Corp. | 3.6 | |||
Duke Energy Corp. | 3.5 | |||
WEC Energy Group, Inc. | 3.4 | |||
ONEOK, Inc. | 3.4 | |||
NiSource, Inc. | 3.4 | |||
NextEra Energy, Inc. | 3.3 | |||
Xcel Energy, Inc. | 3.3 | |||
DTE Energy Co. | 3.2 | |||
Total | 34.6 |
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|
PowerShares DWA Utilities Momentum Portfolio (PUI) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2017
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-Dorsey Wright® Utilities Technical Leaders Index† | 14.28 | % | 10.85 | % | 36.20 | % | 14.37 | % | 95.67 | % | 6.90 | % | 94.83 | % | 9.10 | % | 172.69 | % | ||||||||||||||||||||||
S&P 500® Utilities Index | 10.57 | 10.07 | 33.34 | 11.87 | 75.19 | 6.34 | 84.88 | 8.75 | 162.80 | |||||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||||
NAV Return | 13.65 | 10.18 | 33.77 | 13.65 | 89.61 | 6.12 | 81.16 | 8.32 | 150.96 | |||||||||||||||||||||||||||||||
Market Price Return | 13.78 | 10.23 | 33.95 | 13.70 | 90.03 | 6.13 | 81.22 | 8.34 | 151.37 |
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, 2018. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.74% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholder 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
powershares.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, 2017. |
†† | 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 companies that comprise the Index.
Nasdaq, Inc. (the “Index Provider”) compiles the Index strictly in accordance with its guidelines and mandated procedures. The Index is designed to track the performance of the largest and most liquid U.S.-listed companies engaged in Internet-related businesses that are listed on one of the three major U.S. stock exchanges. Companies in the Index include Internet software and services companies involved in Internet-related services, including Internet access providers, Internet search engines, web hosting, website design, and e-commerce. 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, 2017, on a market price basis, the Fund returned 29.73%. On a net asset value (“NAV”) basis, the Fund returned 29.63%. During the same time period, the Index returned 30.31%. 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 30.23%. 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 tracks an Index that includes 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, 2017. The Fund’s underperformance relative to the Benchmark Index during that period can be attributed to fees and operating expenses that the Fund incurred during the period.
For the fiscal year ended April 30, 2017, the internet software & services sub-industry contributed most significantly to the Fund’s return, followed by the internet & direct marketing retail and
specialized real estate investment trust (“REIT”) sub-industries, respectively. The casinos & gaming sub-industry detracted most significantly from the Fund’s return, followed by the application software sub-industry.
Positions that contributed most significantly to the Fund’s return included Netflix, Inc., an internet & direct marketing retail company (portfolio average weight of 5.64%), and Amazon.com, Inc., an internet & direct marketing retail company (portfolio average weight of 8.32%). Positions that detracted most significantly from the Fund’s return included Baidu, Inc. ADR (China), an internet software & services company (portfolio average weight of 6.23%), and TripAdvisor, Inc., an internet & direct marketing retail company (portfolio average weight of 1.51%).
Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2017 | ||||
Internet Software & Services | 55.0 | |||
Internet & Direct Marketing Retail | 38.7 | |||
Specialized REITs | 4.1 | |||
Communications Equipment | 1.6 | |||
Alternative Carriers | 0.3 | |||
Wireless Telecommunication Services | 0.1 | |||
Casinos & Gaming | 0.1 | |||
Application Software | 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, 2017 | ||||
Security | ||||
Facebook, Inc., Class A | 8.2 | |||
Alphabet, Inc., Class C | 8.2 | |||
Amazon.com, Inc. | 8.1 | |||
Priceline Group, Inc. (The) | 8.0 | |||
Netflix, Inc. | 8.0 | |||
JD.Com, Inc., Class A ADR | 4.3 | |||
Equinix, Inc. REIT | 4.1 | |||
Yahoo!, Inc. | 3.9 | |||
Baidu, Inc. ADR | 3.8 | |||
eBay, Inc. | 3.7 | |||
Total | 60.3 |
* | Excluding money market fund holdings. |
| 31 |
|
PowerShares NASDAQ Internet Portfolio (PNQI) (continued)
Growth of a $10,000 Investment Since Inception†
Fund Performance History as of April 30, 2017
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 | 30.31 | % | 17.81 | % | 63.52 | % | 19.87 | % | 147.46 | % | 17.96 | % | 333.76 | % | ||||||||||||||||||
NASDAQ-100® Index | 30.23 | 17.40 | 61.80 | 16.95 | 118.81 | 13.95 | 219.11 | |||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||
NAV Return | 29.63 | 17.18 | 60.88 | 19.28 | 141.47 | 17.35 | 314.02 | |||||||||||||||||||||||||
Market Price Return | 29.73 | 17.26 | 61.23 | 19.29 | 141.54 | 17.14 | 307.69 |
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 powershares.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. |
| 32 |
|
Schedule of Investments(a)
PowerShares DWA Basic Materials Momentum Portfolio (PYZ)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks—100.0% | ||||||||
Aerospace & Defense—2.1% | ||||||||
76,958 | Arconic, Inc. | $ | 2,103,262 | |||||
|
| |||||||
Commodity Chemicals—5.8% | ||||||||
35,987 | LyondellBasell Industries NV, Class A | 3,050,258 | ||||||
88,947 | Olin Corp. | 2,857,867 | ||||||
|
| |||||||
5,908,125 | ||||||||
|
| |||||||
Copper—2.1% | ||||||||
165,904 | Freeport-McMoRan, Inc.(b) | 2,115,276 | ||||||
|
| |||||||
Diversified Chemicals—9.9% | ||||||||
134,752 | Chemours Co. (The) | 5,429,158 | ||||||
30,684 | Eastman Chemical Co. | 2,447,049 | ||||||
86,072 | Huntsman Corp. | 2,132,004 | ||||||
|
| |||||||
10,008,211 | ||||||||
|
| |||||||
Fertilizers & Agricultural Chemicals—5.0% | ||||||||
69,124 | FMC Corp. | 5,061,951 | ||||||
|
| |||||||
Forest Products—2.2% | ||||||||
88,398 | Louisiana-Pacific Corp.(b) | 2,275,365 | ||||||
|
| |||||||
Gold—1.3% | ||||||||
18,622 | Royal Gold, Inc. | 1,316,203 | ||||||
|
| |||||||
Industrial Gases—3.7% | ||||||||
26,965 | Air Products & Chemicals, Inc. | 3,788,582 | ||||||
|
| |||||||
Oil & Gas Equipment & Services—2.0% | ||||||||
49,193 | US Silica Holdings, Inc. | 2,041,510 | ||||||
|
| |||||||
Paper Packaging—8.0% | ||||||||
40,636 | Avery Dennison Corp. | 3,381,321 | ||||||
86,676 | International Paper Co. | 4,677,904 | ||||||
|
| |||||||
8,059,225 | ||||||||
|
| |||||||
Paper Products—3.2% | ||||||||
78,768 | KapStone Paper and Packaging Corp. | 1,661,217 | ||||||
20,740 | Neenah Paper, Inc. | 1,624,979 | ||||||
|
| |||||||
3,286,196 | ||||||||
|
| |||||||
Specialty Chemicals—38.0% | ||||||||
29,894 | Albemarle Corp. | 3,255,756 | ||||||
33,886 | Ashland Global Holdings, Inc. | 4,184,921 | ||||||
13,739 | Balchem Corp. | 1,115,057 | ||||||
30,952 | Celanese Corp., Series A | 2,694,062 | ||||||
23,685 | Ecolab, Inc. | 3,057,497 | ||||||
32,486 | H.B. Fuller Co. | 1,716,235 | ||||||
33,488 | Ingevity Corp.(b) | 2,117,446 | ||||||
26,129 | Innospec, Inc. | 1,724,514 | ||||||
16,736 | International Flavors & Fragrances, Inc. | 2,319,442 | ||||||
16,759 | Minerals Technologies, Inc. | 1,318,933 | ||||||
5,216 | NewMarket Corp. | 2,455,171 | ||||||
131,146 | Platform Specialty Products Corp.(b) | 1,858,339 | ||||||
67,619 | PolyOne Corp. | 2,651,341 | ||||||
22,534 | PPG Industries, Inc. | 2,475,135 | ||||||
12,917 | Quaker Chemical Corp. | 1,867,798 | ||||||
40,034 | RPM International, Inc. | 2,104,187 | ||||||
18,751 | Sensient Technologies Corp. | 1,533,832 | ||||||
|
| |||||||
38,449,666 | ||||||||
|
|
Number of Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Steel—16.7% | ||||||||
316,477 | AK Steel Holding Corp.(b) | $ | 2,006,464 | |||||
432,631 | Cliffs Natural Resources, Inc.(b) | 2,907,280 | ||||||
37,650 | Nucor Corp. | 2,309,074 | ||||||
97,221 | Steel Dynamics, Inc. | 3,513,567 | ||||||
121,425 | SunCoke Energy, Inc.(b) | 1,113,467 | ||||||
69,663 | TimkenSteel Corp.(b) | 1,050,518 | ||||||
119,677 | United States Steel Corp. | 2,671,191 | ||||||
29,579 | Worthington Industries, Inc. | 1,286,687 | ||||||
|
| |||||||
16,858,248 | ||||||||
|
| |||||||
Total Common Stocks (Cost $93,428,885) | 101,271,820 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
75,370 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(c) (Cost $75,370) | 75,370 | ||||||
|
| |||||||
Total Investments (Cost $93,504,255)—100.1% | 101,347,190 | |||||||
Other assets less liabilities—(0.1)% | (78,343 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 101,268,847 | ||||||
|
|
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, 2017. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 33 |
|
Schedule of Investments(a)
PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)
April 30, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Airlines—4.9% | ||||||||
13,300 | SkyWest, Inc. | $ | 494,760 | |||||
16,145 | Southwest Airlines Co. | 907,672 | ||||||
|
| |||||||
1,402,432 | ||||||||
|
| |||||||
Apparel Retail—12.3% | ||||||||
8,087 | Burlington Stores, Inc.(b) | 799,966 | ||||||
5,731 | Children’s Place, Inc. (The) | 657,919 | ||||||
20,334 | Ross Stores, Inc. | 1,321,710 | ||||||
9,780 | TJX Cos., Inc. (The) | 769,099 | ||||||
|
| |||||||
3,548,694 | ||||||||
|
| |||||||
Auto Parts & Equipment—6.5% | ||||||||
6,069 | LCI Industries | 613,879 | ||||||
4,695 | Lear Corp. | 669,789 | ||||||
5,735 | Visteon Corp.(b) | 590,418 | ||||||
|
| |||||||
1,874,086 | ||||||||
|
| |||||||
Automobile Manufacturers—2.4% | ||||||||
7,195 | Thor Industries, Inc. | 692,015 | ||||||
|
| |||||||
Automotive Retail—4.1% | ||||||||
4,733 | O’Reilly Automotive, Inc.(b) | 1,174,494 | ||||||
|
| |||||||
Broadcasting—5.1% | ||||||||
28,420 | Gray Television, Inc.(b) | 416,353 | ||||||
6,578 | Nexstar Media Group, Inc., Class A | 453,882 | ||||||
23,231 | TEGNA, Inc. | 591,926 | ||||||
|
| |||||||
1,462,161 | ||||||||
|
| |||||||
Cable & Satellite—8.6% | ||||||||
2,709 | Charter Communications, Inc., Class A(b) | 935,038 | ||||||
15,966 | Comcast Corp., Class A | 625,708 | ||||||
186,821 | Sirius XM Holdings, Inc.(c) | 924,764 | ||||||
|
| |||||||
2,485,510 | ||||||||
|
| |||||||
Casinos & Gaming—5.3% | ||||||||
26,571 | Eldorado Resorts, Inc.(b) | 508,170 | ||||||
20,933 | Pinnacle Entertainment, Inc.(b) | 430,592 | ||||||
24,365 | Scientific Games Corp., Class A(b) | 578,669 | ||||||
|
| |||||||
1,517,431 | ||||||||
|
| |||||||
General Merchandise Stores—1.9% | ||||||||
14,602 | Ollie’s Bargain Outlet Holdings, Inc.(b) | 559,257 | ||||||
|
| |||||||
Home Entertainment Software—9.5% | ||||||||
14,883 | Activision Blizzard, Inc. | 777,637 | ||||||
10,482 | Electronic Arts, Inc.(b) | 993,903 | ||||||
15,572 | Take-Two Interactive Software, Inc.(b) | 978,700 | ||||||
|
| |||||||
2,750,240 | ||||||||
|
| |||||||
Home Furnishings—1.6% | ||||||||
9,078 | Leggett & Platt, Inc. | 476,958 | ||||||
|
| |||||||
Home Improvement Retail—2.6% | ||||||||
4,842 | Home Depot, Inc. (The) | 755,836 | ||||||
|
| |||||||
Hypermarkets & Super Centers—2.3% | ||||||||
3,758 | Costco Wholesale Corp. | 667,120 | ||||||
|
| |||||||
Industrial Machinery—2.2% | ||||||||
4,581 | Middleby Corp. (The)(b) | 623,612 | ||||||
|
|
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Internet & Direct Marketing Retail—12.0% | ||||||||
1,457 | Amazon.com, Inc.(b) | $ | 1,347,710 | |||||
12,152 | Liberty Ventures, Series A(b) | 654,385 | ||||||
797 | Priceline Group, Inc. (The)(b) | 1,471,916 | ||||||
|
| |||||||
3,474,011 | ||||||||
|
| |||||||
Leisure Facilities—2.6% | ||||||||
3,778 | Vail Resorts, Inc. | 746,759 | ||||||
|
| |||||||
Office Services & Supplies—1.5% | ||||||||
30,708 | ACCO Brands Corp.(b) | 437,589 | ||||||
|
| |||||||
Restaurants—8.3% | ||||||||
4,010 | Cracker Barrel Old Country Store, Inc.(c) | 642,362 | ||||||
9,030 | Dave & Buster’s Entertainment, Inc.(b) | 578,010 | ||||||
6,442 | Domino’s Pizza, Inc. | 1,168,515 | ||||||
|
| |||||||
2,388,887 | ||||||||
|
| |||||||
Specialized REITs—1.6% | ||||||||
6,282 | Lamar Advertising Co., Class A REIT | 452,744 | ||||||
|
| |||||||
Specialty Stores—2.5% | ||||||||
2,565 | Ulta Beauty, Inc.(b) | 721,894 | ||||||
|
| |||||||
Tires & Rubber—2.2% | ||||||||
17,247 | Goodyear Tire & Rubber Co. (The) | 624,859 | ||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $25,310,236) | 28,836,589 | |||||||
|
| |||||||
Money Market Fund—0.2% | ||||||||
58,516 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $58,516) | 58,516 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $25,368,752)—100.2% | 28,895,105 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—4.3% | ||||||||
1,227,268 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $1,227,268) | 1,227,268 | ||||||
|
| |||||||
Total Investments (Cost $26,596,020)—104.5% | 30,122,373 | |||||||
Other assets less liabilities—(4.5)% | (1,285,873 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 28,836,500 | ||||||
|
|
Investment Abbreviations:
REIT—Real Estate Investment Trust
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 34 |
|
PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ) (continued)
April 30, 2017
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, 2017. |
(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, 2017. |
(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 2I. |
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, 2017
Number of Shares | Value | |||||||
Common Stocks—100.0% | ||||||||
Agricultural Products—3.5% | ||||||||
21,621 | Ingredion, Inc. | $ | 2,677,112 | |||||
|
| |||||||
Brewers—2.4% | ||||||||
19,540 | Molson Coors Brewing Co., Class B | 1,873,691 | ||||||
|
| |||||||
Distillers & Vintners—6.4% | ||||||||
20,392 | Constellation Brands, Inc., Class A | 3,518,436 | ||||||
26,682 | MGP Ingredients, Inc. | 1,397,069 | ||||||
|
| |||||||
4,915,505 | ||||||||
|
| |||||||
Education Services—6.7% | ||||||||
19,680 | Bright Horizons Family Solutions, Inc.(b) | 1,498,042 | ||||||
44,563 | DeVry Education Group, Inc. | 1,686,709 | ||||||
26,017 | Grand Canyon Education, Inc.(b) | 1,955,438 | ||||||
|
| |||||||
5,140,189 | ||||||||
|
| |||||||
Environmental & Facilities Services—2.9% | ||||||||
58,761 | Rollins, Inc. | 2,281,690 | ||||||
|
| |||||||
Food Distributors—1.5% | ||||||||
41,975 | US Foods Holding Corp.(b) | 1,183,695 | ||||||
|
| |||||||
Health Care Services—2.2% | ||||||||
8,292 | Chemed Corp. | 1,669,843 | ||||||
|
| |||||||
Household Products—15.6% | ||||||||
71,613 | Church & Dwight Co., Inc. | 3,546,992 | ||||||
24,188 | Energizer Holdings, Inc. | 1,432,655 | ||||||
73,349 | HRG Group, Inc.(b) | 1,467,713 | ||||||
14,850 | Kimberly-Clark Corp. | 1,926,787 | ||||||
18,123 | Spectrum Brands Holdings, Inc. | 2,604,819 | ||||||
9,950 | WD-40 Co. | 1,043,258 | ||||||
|
| |||||||
12,022,224 | ||||||||
|
| |||||||
Housewares & Specialties—3.4% | ||||||||
55,434 | Newell Brands, Inc. | 2,646,419 | ||||||
|
| |||||||
Industrial Machinery—2.4% | ||||||||
13,802 | Stanley Black & Decker, Inc. | 1,879,142 | ||||||
|
| |||||||
Internet & Direct Marketing Retail—2.5% | ||||||||
36,091 | Nutrisystem, Inc. | 1,929,064 | ||||||
|
| |||||||
Packaged Foods & Meats—21.9% | ||||||||
28,078 | Campbell Soup Co. | 1,615,608 | ||||||
49,069 | Conagra Brands, Inc. | 1,902,896 | ||||||
8,455 | J & J Snack Foods Corp. | 1,137,874 | ||||||
15,462 | JM Smucker Co. (The) | 1,959,345 | ||||||
27,567 | Kellogg Co. | 1,957,257 | ||||||
8,758 | Lancaster Colony Corp. | 1,102,632 | ||||||
27,354 | McCormick & Co., Inc. | 2,732,664 | ||||||
38,291 | Pinnacle Foods, Inc. | 2,226,622 | ||||||
27,420 | Post Holdings, Inc.(b) | 2,308,490 | ||||||
|
| |||||||
16,943,388 | ||||||||
|
| |||||||
Personal Products—2.8% | ||||||||
34,044 | Herbalife Ltd.(b)(c) | 2,153,623 | ||||||
|
| |||||||
Soft Drinks—8.2% | ||||||||
5,960 | Coca-Cola Bottling Co. Consolidated | 1,262,686 | ||||||
30,302 | Dr Pepper Snapple Group, Inc. | 2,777,178 | ||||||
25,606 | National Beverage Corp. | 2,268,435 | ||||||
|
| |||||||
6,308,299 | ||||||||
|
|
Number of Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Specialized Consumer Services—4.7% | ||||||||
63,013 | Service Corp. International | $ | 2,030,279 | |||||
33,133 | Sotheby’s(b)(c) | 1,569,179 | ||||||
|
| |||||||
3,599,458 | ||||||||
|
| |||||||
Tobacco—8.5% | ||||||||
46,716 | Altria Group, Inc. | 3,353,275 | ||||||
15,801 | Philip Morris International, Inc. | 1,751,383 | ||||||
19,627 | Universal Corp. | 1,441,603 | ||||||
|
| |||||||
6,546,261 | ||||||||
|
| |||||||
Trading Companies & Distributors—4.4% | ||||||||
23,077 | Herc Holdings, Inc.(b) | 1,049,311 | ||||||
21,613 | United Rentals, Inc.(b) | 2,370,082 | ||||||
|
| |||||||
3,419,393 | ||||||||
|
| |||||||
Total Common Stocks (Cost $70,539,467) | 77,188,996 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
82,698 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $82,698) | 82,698 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $70,622,165)—100.1% | 77,271,694 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—3.6% | ||||||||
2,751,133 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $2,751,133) | 2,751,133 | ||||||
|
| |||||||
Total Investments (Cost $73,373,298)—103.7% | 80,022,827 | |||||||
Other assets less liabilities—(3.7)% | (2,831,414 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 77,191,413 | ||||||
|
|
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, 2017. |
(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, 2017. |
(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 2I. |
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, 2017
Number of Shares | Value | |||||||
Common Stocks—100.0% | ||||||||
Coal & Consumable Fuels—2.2% | ||||||||
162,345 | CONSOL Energy, Inc.(b) | $ | 2,464,397 | |||||
|
| |||||||
Integrated Oil & Gas—5.5% | ||||||||
30,117 | Chevron Corp. | 3,213,484 | ||||||
48,525 | Occidental Petroleum Corp. | 2,986,229 | ||||||
|
| |||||||
6,199,713 | ||||||||
|
| |||||||
Oil & Gas Drilling—9.1% | ||||||||
45,912 | Helmerich & Payne, Inc. | 2,784,104 | ||||||
129,847 | Patterson-UTI Energy, Inc. | 2,810,538 | ||||||
215,603 | Transocean Ltd.(b) | 2,378,101 | ||||||
106,235 | Unit Corp.(b) | 2,282,990 | ||||||
|
| |||||||
10,255,733 | ||||||||
|
| |||||||
Oil & Gas Equipment & Services—12.6% | ||||||||
129,296 | Archrock, Inc. | 1,525,693 | ||||||
67,521 | Exterran Corp.(b) | 1,848,050 | ||||||
116,328 | Forum Energy Technologies, Inc.(b) | 1,965,943 | ||||||
70,027 | Halliburton Co. | 3,212,839 | ||||||
248,376 | Helix Energy Solutions Group, Inc.(b) | 1,520,061 | ||||||
281,600 | McDermott International, Inc.(b) | 1,841,664 | ||||||
124,173 | RPC, Inc.(c) | �� | 2,256,223 | |||||
|
| |||||||
14,170,473 | ||||||||
|
| |||||||
Oil & Gas Exploration & Production—45.1% | ||||||||
30,479 | Cimarex Energy Co. | 3,556,290 | ||||||
37,874 | Concho Resources, Inc.(b) | 4,797,121 | ||||||
54,403 | Continental Resources, Inc.(b) | 2,307,231 | ||||||
44,113 | Diamondback Energy, Inc.(b) | 4,404,242 | ||||||
37,107 | EOG Resources, Inc. | 3,432,398 | ||||||
203,653 | Laredo Petroleum, Inc.(b) | 2,618,978 | ||||||
293,787 | Oasis Petroleum, Inc.(b) | 3,507,817 | ||||||
143,900 | Parsley Energy, Inc., Class A(b) | 4,286,781 | ||||||
62,341 | PDC Energy, Inc.(b) | 3,443,093 | ||||||
25,170 | Pioneer Natural Resources Co. | 4,354,158 | ||||||
116,484 | Rice Energy, Inc.(b) | 2,479,944 | ||||||
98,087 | RSP Permian, Inc.(b) | 3,732,210 | ||||||
219,021 | Sanchez Energy Corp.(b)(c) | 1,695,223 | ||||||
268,721 | Whiting Petroleum Corp.(b) | 2,230,384 | ||||||
335,571 | WPX Energy, Inc.(b) | 4,003,362 | ||||||
|
| |||||||
50,849,232 | ||||||||
|
| |||||||
Oil & Gas Refining & Marketing—13.6% | ||||||||
107,350 | CVR Energy, Inc.(c) | 2,349,891 | ||||||
93,255 | Delek US Holdings, Inc. | 2,244,648 | ||||||
80,677 | Marathon Petroleum Corp. | 4,109,686 | ||||||
33,085 | Phillips 66 | 2,632,243 | ||||||
61,783 | Valero Energy Corp. | 3,991,800 | ||||||
|
| |||||||
15,328,268 | ||||||||
|
| |||||||
Oil & Gas Storage & Transportation—10.4% | ||||||||
111,248 | Cheniere Energy, Inc.(b) | 5,045,097 | ||||||
67,043 | SemGroup Corp., Class A | 2,232,532 | ||||||
80,243 | Targa Resources Corp. | 4,423,796 | ||||||
|
| |||||||
11,701,425 | ||||||||
|
| |||||||
Specialty Chemicals—1.5% | ||||||||
144,394 | Flotek Industries, Inc.(b)(c) | 1,734,172 | ||||||
|
| |||||||
Total Common Stocks (Cost $120,329,576) | 112,703,413 | |||||||
|
| |||||||
Number of Shares | Value | |||||||
Money Market Fund—0.1% | ||||||||
141,457 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $141,457) | $ | 141,457 | |||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $120,471,033)—100.1% | 112,844,870 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—7.0% | ||||||||
7,905,625 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $7,905,625) | 7,905,625 | ||||||
|
| |||||||
Total Investments (Cost $128,376,658)—107.1% | 120,750,495 | |||||||
Other assets less liabilities—(7.1)% | (8,019,455 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 112,731,040 | ||||||
|
|
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, 2017. |
(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, 2017. |
(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 2I. |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Consumer Finance—1.9% | ||||||||
128,479 | SLM Corp.(b) | $ | 1,611,127 | |||||
|
| |||||||
Diversified Banks—6.5% | ||||||||
86,447 | Bank of America Corp. | 2,017,673 | ||||||
41,072 | JPMorgan Chase & Co. | 3,573,264 | ||||||
|
| |||||||
5,590,937 | ||||||||
|
| |||||||
Financial Exchanges & Data—2.6% | ||||||||
11,715 | MarketAxess Holdings, Inc. | 2,255,372 | ||||||
|
| |||||||
Investment Banking & Brokerage—8.2% | ||||||||
44,353 | Charles Schwab Corp. (The) | 1,723,114 | ||||||
65,797 | E*TRADE Financial Corp.(b) | 2,273,286 | ||||||
13,907 | Evercore Partners, Inc., Class A | 1,025,641 | ||||||
27,623 | Raymond James Financial, Inc. | 2,058,466 | ||||||
|
| |||||||
7,080,507 | ||||||||
|
| |||||||
Life & Health Insurance—17.2% | ||||||||
28,420 | Lincoln National Corp. | 1,873,731 | ||||||
16,555 | Primerica, Inc. | 1,387,309 | ||||||
43,632 | Principal Financial Group, Inc. | 2,841,752 | ||||||
24,878 | Prudential Financial, Inc. | 2,662,692 | ||||||
26,262 | Torchmark Corp. | 2,014,558 | ||||||
85,511 | Unum Group | 3,961,725 | ||||||
|
| |||||||
14,741,767 | ||||||||
|
| |||||||
Mortgage REITs—1.9% | ||||||||
52,912 | Blackstone Mortgage Trust, Inc., Class A REIT | 1,633,922 | ||||||
|
| |||||||
Multi-line Insurance—4.5% | ||||||||
13,186 | American Financial Group, Inc. | 1,283,130 | ||||||
18,598 | Assurant, Inc. | 1,789,871 | ||||||
19,609 | Horace Mann Educators Corp. | 757,888 | ||||||
|
| |||||||
3,830,889 | ||||||||
|
| |||||||
Property & Casualty Insurance—4.2% | ||||||||
12,629 | Arch Capital Group Ltd.(b) | 1,224,634 | ||||||
11,615 | Argo Group International Holdings Ltd. | 766,009 | ||||||
26,401 | Assured Guaranty Ltd. | 1,006,670 | ||||||
12,093 | Selective Insurance Group, Inc. | 638,511 | ||||||
|
| |||||||
3,635,824 | ||||||||
|
| |||||||
Regional Banks—47.1% | ||||||||
19,708 | Ameris Bancorp | 928,247 | ||||||
49,326 | BancorpSouth, Inc. | 1,501,977 | ||||||
75,560 | Bank of the Ozarks, Inc. | 3,586,833 | ||||||
12,905 | Banner Corp. | 712,356 | ||||||
18,703 | Cathay General Bancorp | 711,649 | ||||||
26,755 | Centerstate Banks, Inc. | 675,029 | ||||||
27,993 | CVB Financial Corp. | 602,969 | ||||||
14,041 | Eagle Bancorp, Inc.(b) | 841,056 | ||||||
38,196 | East West Bancorp, Inc. | 2,072,897 | ||||||
12,332 | FCB Financial Holdings, Inc., Class A(b) | 582,687 | ||||||
164,751 | Fifth Third Bancorp | 4,024,867 | ||||||
21,894 | First Merchants Corp. | 905,974 | ||||||
20,599 | First Republic Bank | 1,904,584 | ||||||
15,169 | Great Western Bancorp, Inc. | 624,963 | ||||||
27,993 | Home BancShares, Inc. | 712,422 | ||||||
248,571 | Huntington Bancshares, Inc. | 3,196,623 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Regional Banks (continued) | ||||||||
84,004 | Investors Bancorp, Inc. | $ | 1,163,455 | |||||
24,496 | Pacific Premier Bancorp, Inc.(b) | 895,329 | ||||||
21,864 | PacWest Bancorp | 1,079,863 | ||||||
24,718 | Pinnacle Financial Partners, Inc. | 1,581,952 | ||||||
135,347 | Regions Financial Corp. | 1,861,021 | ||||||
16,766 | Renasant Corp. | 710,878 | ||||||
26,832 | Seacoast Banking Corp. of Florida(b) | 649,334 | ||||||
25,428 | ServisFirst Bancshares, Inc. | 961,178 | ||||||
40,277 | Sterling Bancorp | 936,440 | ||||||
32,776 | Synovus Financial Corp. | 1,370,037 | ||||||
12,594 | Texas Capital Bancshares, Inc.(b) | 958,403 | ||||||
24,015 | United Community Banks, Inc. | 656,810 | ||||||
36,687 | Webster Financial Corp. | 1,864,067 | ||||||
44,341 | Western Alliance Bancorp(b) | 2,123,934 | ||||||
|
| |||||||
40,397,834 | ||||||||
|
| |||||||
Reinsurance—2.0% | ||||||||
13,528 | Reinsurance Group of America, Inc. | 1,691,541 | ||||||
|
| |||||||
Specialized REITs—3.0% | ||||||||
15,376 | CoreSite Realty Corp. REIT | 1,504,542 | ||||||
21,137 | DuPont Fabros Technology, Inc. REIT | 1,089,612 | ||||||
|
| |||||||
2,594,154 | ||||||||
|
| |||||||
Thrifts & Mortgage Finance—0.9% | ||||||||
16,809 | Walker & Dunlop, Inc.(b) | 753,884 | ||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $85,261,571) | 85,817,758 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
96,496 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(c) (Cost $96,496) | 96,496 | ||||||
|
| |||||||
Total Investments (Cost $85,358,067)—100.1% | 85,914,254 | |||||||
Other assets less liabilities—(0.1)% | (57,645 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 85,856,609 | ||||||
|
|
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, 2017. |
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, 2017
Number of Shares | Value | |||||||
Common Stocks—100.0% | ||||||||
Biotechnology—42.4% | ||||||||
20,348 | Aimmune Therapeutics, Inc.(b) | $ | 395,565 | |||||
17,686 | Avexis, Inc.(b) | 1,423,723 | ||||||
17,453 | Bluebird Bio, Inc.(b) | 1,552,444 | ||||||
24,306 | Blueprint Medicines Corp.(b) | 1,132,174 | ||||||
70,759 | Cara Therapeutics, Inc.(b)(c) | 1,124,361 | ||||||
43,159 | Clovis Oncology, Inc.(b) | 2,498,475 | ||||||
26,736 | Concert Pharmaceuticals, Inc.(b) | 424,300 | ||||||
31,048 | Epizyme, Inc.(b) | 560,416 | ||||||
65,763 | Esperion Therapeutics, Inc.(b) | 2,351,027 | ||||||
123,887 | Exact Sciences Corp.(b)(c) | 3,717,849 | ||||||
152,802 | Exelixis, Inc.(b) | 3,422,765 | ||||||
14,012 | Foundation Medicine, Inc.(b) | 497,426 | ||||||
46,758 | Global Blood Therapeutics, Inc.(b) | 1,353,644 | ||||||
186,007 | Immunomedics, Inc.(b)(c) | 1,065,820 | ||||||
16,005 | Kite Pharma, Inc.(b) | 1,313,690 | ||||||
11,063 | Loxo Oncology, Inc.(b) | 509,562 | ||||||
20,899 | NewLink Genetics Corp.(b) | 390,602 | ||||||
39,590 | Portola Pharmaceuticals, Inc.(b) | 1,583,204 | ||||||
86,238 | Progenics Pharmaceuticals, Inc.(b) | 683,005 | ||||||
12,023 | Sage Therapeutics, Inc.(b) | 853,633 | ||||||
|
| |||||||
26,853,685 | ||||||||
|
| |||||||
Health Care Equipment—24.5% | ||||||||
11,503 | Becton, Dickinson and Co. | 2,150,716 | ||||||
68,864 | Boston Scientific Corp.(b) | 1,816,632 | ||||||
8,606 | Cantel Medical Corp. | 640,373 | ||||||
21,255 | Glaukos Corp.(b) | 1,010,250 | ||||||
12,178 | Hill-Rom Holdings, Inc. | 921,144 | ||||||
11,070 | IDEXX Laboratories, Inc.(b) | 1,856,771 | ||||||
8,319 | Inogen, Inc.(b) | 689,562 | ||||||
16,322 | Integra LifeSciences Holdings Corp.(b) | 750,322 | ||||||
21,388 | K2M Group Holdings, Inc.(b) | 473,744 | ||||||
27,328 | Masimo Corp.(b) | 2,807,679 | ||||||
15,185 | NuVasive, Inc.(b) | 1,101,065 | ||||||
15,743 | NxStage Medical, Inc.(b) | 470,558 | ||||||
9,633 | Penumbra, Inc.(b) | 823,140 | ||||||
|
| |||||||
15,511,956 | ||||||||
|
| |||||||
Health Care Services—3.6% | ||||||||
12,034 | Amedisys, Inc.(b) | 652,243 | ||||||
36,805 | Teladoc, Inc.(b) | 912,764 | ||||||
20,099 | Tivity Health, Inc.(b) | 675,326 | ||||||
|
| |||||||
2,240,333 | ||||||||
|
| |||||||
Health Care Supplies—7.8% | ||||||||
17,955 | Align Technology, Inc.(b) | 2,417,102 | ||||||
15,458 | Merit Medical Systems, Inc.(b) | 520,935 | ||||||
45,131 | OraSure Technologies, Inc.(b) | 591,667 | ||||||
18,726 | Spectranetics Corp. (The)(b) | 535,564 | ||||||
9,106 | West Pharmaceutical Services, Inc. | 838,025 | ||||||
|
| |||||||
4,903,293 | ||||||||
|
| |||||||
Life Sciences Tools & Services—1.8% | ||||||||
18,121 | PRA Health Sciences, Inc.(b) | 1,159,019 | ||||||
|
| |||||||
Managed Health Care—10.8% | ||||||||
11,950 | Aetna, Inc. | 1,614,087 | ||||||
7,469 | Anthem, Inc. | 1,328,660 |
Number of Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Managed Health Care (continued) | ||||||||
13,023 | UnitedHealth Group, Inc. | $ | 2,277,462 | |||||
10,608 | WellCare Health Plans, Inc.(b) | 1,627,373 | ||||||
|
| |||||||
6,847,582 | ||||||||
|
| |||||||
Pharmaceuticals—9.1% | ||||||||
29,419 | Aerie Pharmaceuticals, Inc.(b) | 1,295,907 | ||||||
186,853 | Chelsea Therapeutics International Ltd.(b) | 14,948 | ||||||
58,309 | Corcept Therapeutics, Inc.(b) | 556,268 | ||||||
6,844 | Heska Corp.(b) | 740,863 | ||||||
29,067 | Medicines Co. (The)(b) | 1,433,585 | ||||||
36,124 | Nektar Therapeutics(b) | 685,272 | ||||||
32,323 | Supernus Pharmaceuticals, Inc.(b) | 1,053,730 | ||||||
|
| |||||||
5,780,573 | ||||||||
|
| |||||||
Total Common Stocks (Cost $54,188,609) | 63,296,441 | |||||||
|
| |||||||
Money Market Fund—0.2% | ||||||||
88,540 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $88,540) | 88,540 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $54,277,149)—100.2% | 63,384,981 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—9.4% | ||||||||
5,970,939 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $5,970,939) | 5,970,939 | ||||||
|
| |||||||
Total Investments (Cost $60,248,088)—109.6% | 69,355,920 | |||||||
Other assets less liabilities—(9.6)% | (6,076,982 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 63,278,938 | ||||||
|
|
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, 2017. |
(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, 2017. |
(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 2I. |
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, 2017
Number of Shares | Value | |||||||
Common Stocks—99.9% | ||||||||
Aerospace & Defense—19.0% | ||||||||
16,975 | Boeing Co. (The) | $ | 3,137,489 | |||||
23,321 | HEICO Corp. | 1,657,424 | ||||||
21,619 | Huntington Ingalls Industries, Inc. | 4,343,041 | ||||||
27,636 | Lockheed Martin Corp. | 7,446,520 | ||||||
12,422 | Northrop Grumman Corp. | 3,055,315 | ||||||
16,656 | Orbital ATK, Inc. | 1,648,944 | ||||||
22,582 | Raytheon Co. | 3,504,952 | ||||||
|
| |||||||
24,793,685 | ||||||||
|
| |||||||
Agricultural & Farm Machinery—2.0% | ||||||||
40,462 | Toro Co. (The) | 2,626,793 | ||||||
|
| |||||||
Airport Services—6.1% | ||||||||
98,372 | Macquarie Infrastructure Corp. | 8,004,530 | ||||||
|
| |||||||
Building Products—7.1% | ||||||||
59,580 | A.O. Smith Corp. | 3,210,170 | ||||||
23,602 | Apogee Enterprises, Inc. | 1,286,309 | ||||||
19,970 | Lennox International, Inc. | 3,302,838 | ||||||
21,492 | Patrick Industries, Inc.(b) | 1,527,007 | ||||||
|
| |||||||
9,326,324 | ||||||||
|
| |||||||
Commercial Printing—1.8% | ||||||||
32,130 | Deluxe Corp. | 2,310,468 | ||||||
|
| |||||||
Commodity Chemicals—2.0% | ||||||||
39,697 | Trinseo SA | 2,635,881 | ||||||
|
| |||||||
Construction & Engineering—6.8% | ||||||||
20,067 | Argan, Inc. | 1,341,479 | ||||||
44,078 | Dycom Industries, Inc.(b) | 4,657,281 | ||||||
44,673 | EMCOR Group, Inc. | 2,936,803 | ||||||
|
| |||||||
8,935,563 | ||||||||
|
| |||||||
Data Processing & Outsourced Services—2.4% | ||||||||
26,302 | Fiserv, Inc.(b) | 3,133,620 | ||||||
|
| |||||||
Distributors—1.5% | ||||||||
16,147 | Pool Corp. | 1,931,504 | ||||||
|
| |||||||
Diversified Support Services—2.3% | ||||||||
24,604 | Cintas Corp. | 3,013,252 | ||||||
|
| |||||||
Electrical Components & Equipment—2.3% | ||||||||
19,304 | Rockwell Automation, Inc. | 3,037,484 | ||||||
|
| |||||||
Electronic Components—5.8% | ||||||||
46,075 | II-VI, Inc.(b) | 1,527,386 | ||||||
15,743 | Littelfuse, Inc. | 2,426,783 | ||||||
40,099 | Universal Display Corp. | 3,582,846 | ||||||
|
| |||||||
7,537,015 | ||||||||
|
| |||||||
Electronic Equipment & Instruments—2.9% | ||||||||
17,568 | Coherent, Inc.(b) | 3,787,661 | ||||||
|
| |||||||
Electronic Manufacturing Services—2.5% | ||||||||
132,788 | KEMET Corp.(b) | 1,488,554 | ||||||
47,428 | Sanmina Corp.(b) | 1,766,693 | ||||||
|
| |||||||
3,255,247 | ||||||||
|
| |||||||
Health Care Equipment—3.1% | ||||||||
49,402 | Danaher Corp. | 4,116,669 | ||||||
|
|
Number of Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Health Care Services—2.3% | ||||||||
73,286 | AMN Healthcare Services, Inc.(b) | $ | 2,993,733 | |||||
|
| |||||||
Human Resource & Employment Services—2.8% | ||||||||
14,295 | Insperity, Inc. | 1,305,848 | ||||||
31,722 | WageWorks, Inc.(b) | 2,341,084 | ||||||
|
| |||||||
3,646,932 | ||||||||
|
| |||||||
Industrial Machinery—10.2% | ||||||||
25,035 | IDEX Corp. | 2,622,666 | ||||||
21,970 | Illinois Tool Works, Inc. | 3,033,837 | ||||||
24,975 | John Bean Technologies Corp. | 2,214,034 | ||||||
153,388 | Mueller Water Products, Inc., Class A | 1,725,615 | ||||||
23,701 | Parker-Hannifin Corp. | 3,811,121 | ||||||
|
| |||||||
13,407,273 | ||||||||
|
| |||||||
IT Consulting & Other Services—4.5% | ||||||||
34,047 | Accenture PLC, Class A | 4,129,901 | ||||||
48,237 | Booz Allen Hamilton Holding Corp. | 1,733,156 | ||||||
|
| |||||||
5,863,057 | ||||||||
|
| |||||||
Life Sciences Tools & Services—4.2% | ||||||||
10,637 | Mettler-Toledo International, Inc.(b) | 5,461,249 | ||||||
|
| |||||||
Paper Packaging—2.8% | ||||||||
37,381 | Packaging Corp. of America | 3,692,495 | ||||||
|
| |||||||
Semiconductor Equipment—1.8% | ||||||||
31,357 | Advanced Energy Industries, Inc.(b) | 2,314,147 | ||||||
|
| |||||||
Trading Companies & Distributors—1.5% | ||||||||
13,917 | Watsco, Inc. | 1,931,680 | ||||||
|
| |||||||
Trucking—2.2% | ||||||||
32,489 | Old Dominion Freight Line, Inc. | 2,875,926 | ||||||
|
| |||||||
Total Common Stocks (Cost $120,378,712) | 130,632,188 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
100,659 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(c) (Cost $100,659) | 100,659 | ||||||
|
| |||||||
Total Investments (Cost $120,479,371)—100.0% | 130,732,847 | |||||||
Other assets less liabilities—(0.0)% | (63,526 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 130,669,321 | ||||||
|
|
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, 2017. |
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, 2017
Number of Shares | Value | |||||||
Common Stocks—100.0% | ||||||||
Aerospace & Defense—1.9% | ||||||||
66,406 | Mercury Systems, Inc.(b) | $ | 2,482,256 | |||||
|
| |||||||
Application Software—15.8% | ||||||||
112,963 | 8x8, Inc.(b) | 1,643,612 | ||||||
25,025 | Adobe Systems, Inc.(b) | 3,346,844 | ||||||
122,712 | Cadence Design Systems, Inc.(b) | 3,996,730 | ||||||
33,742 | Ebix, Inc.(c) | 2,081,881 | ||||||
26,577 | Intuit, Inc. | 3,327,706 | ||||||
40,626 | Pegasystems, Inc. | 1,850,514 | ||||||
56,223 | RealPage, Inc.(b) | 2,083,062 | ||||||
76,255 | RingCentral, Inc., Class A(b) | 2,436,347 | ||||||
|
| |||||||
20,766,696 | ||||||||
|
| |||||||
Communications Equipment—9.5% | ||||||||
90,897 | Applied Optoelectronics, Inc.(b)(c) | 4,489,403 | ||||||
22,145 | Arista Networks, Inc.(b) | 3,092,328 | ||||||
67,391 | CommScope Holding Co., Inc.(b) | 2,833,117 | ||||||
268,762 | Extreme Networks, Inc.(b) | 2,100,375 | ||||||
|
| |||||||
12,515,223 | ||||||||
|
| |||||||
Data Processing & Outsourced Services—1.9% | ||||||||
25,840 | Jack Henry & Associates, Inc. | 2,504,413 | ||||||
|
| |||||||
Electronic Components—4.7% | ||||||||
85,444 | Amphenol Corp., Class A | 6,178,456 | ||||||
|
| |||||||
Health Care Technology—3.1% | ||||||||
41,008 | Veeva Systems, Inc., Class A(b) | 2,198,849 | ||||||
74,297 | Vocera Communications, Inc.(b) | 1,884,172 | ||||||
|
| |||||||
4,083,021 | ||||||||
|
| |||||||
Internet Software & Services—13.3% | ||||||||
3,157 | Alphabet, Inc., Class A(b) | 2,918,709 | ||||||
30,250 | Facebook, Inc., Class A(b) | 4,545,062 | ||||||
112,607 | Five9, Inc.(b) | 2,054,515 | ||||||
24,603 | j2 Global, Inc. | 2,220,175 | ||||||
64,119 | MINDBODY, Inc., Class A(b) | 1,817,774 | ||||||
49,406 | Q2 Holdings, Inc.(b) | 1,884,839 | ||||||
115,985 | TrueCar, Inc.(b)(c) | 2,032,057 | ||||||
|
| |||||||
17,473,131 | ||||||||
|
| |||||||
IT Consulting & Other Services—2.8% | ||||||||
37,727 | Leidos Holdings, Inc. | 1,986,704 | ||||||
22,812 | Science Applications International Corp. | 1,665,048 | ||||||
|
| |||||||
3,651,752 | ||||||||
|
| |||||||
Semiconductor Equipment—9.8% | ||||||||
79,282 | Applied Materials, Inc. | 3,219,642 | ||||||
78,271 | Brooks Automation, Inc. | 1,977,125 | ||||||
25,143 | Lam Research Corp. | 3,641,964 | ||||||
55,634 | Nanometrics, Inc.(b) | 1,755,531 | ||||||
116,923 | Ultra Clean Holdings, Inc.(b) | 2,249,599 | ||||||
|
| |||||||
12,843,861 | ||||||||
|
| |||||||
Semiconductors—18.0% | ||||||||
415,901 | Advanced Micro Devices, Inc.(b) | 5,531,483 | ||||||
32,468 | Analog Devices, Inc. | 2,474,062 | ||||||
52,295 | Inphi Corp.(b) | 2,166,059 | ||||||
94,503 | MaxLinear, Inc., Class A(b) | 2,630,018 | ||||||
120,473 | Micron Technology, Inc.(b) | 3,333,488 | ||||||
38,416 | Microsemi Corp.(b) | 1,803,247 |
Number of Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Semiconductors (continued) | ||||||||
32,006 | Monolithic Power Systems, Inc. | $ | 2,928,549 | |||||
34,966 | Texas Instruments, Inc. | 2,768,608 | ||||||
|
| |||||||
23,635,514 | ||||||||
|
| |||||||
Systems Software—2.1% | ||||||||
87,681 | Symantec Corp. | 2,773,350 | ||||||
|
| |||||||
Technology Distributors—1.6% | ||||||||
35,554 | CDW Corp. | 2,100,886 | ||||||
|
| |||||||
Technology Hardware, Storage & Peripherals—11.5% | ||||||||
44,848 | Apple, Inc. | 6,442,415 | ||||||
60,799 | NCR Corp.(b) | 2,507,959 | ||||||
66,677 | Seagate Technology PLC | 2,809,102 | ||||||
37,145 | Western Digital Corp. | 3,308,505 | ||||||
|
| |||||||
15,067,981 | ||||||||
|
| |||||||
Wireless Telecommunication Services—4.0% | ||||||||
77,024 | T-Mobile US, Inc.(b) | 5,181,405 | ||||||
|
| |||||||
Total Common Stocks (Cost $113,613,223) | 131,257,945 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
105,657 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $105,657) | 105,657 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $113,718,880)—100.1% | 131,363,602 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—5.3% | ||||||||
6,947,671 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $6,947,671) | 6,947,671 | ||||||
|
| |||||||
Total Investments (Cost $120,666,551)—105.4% | 138,311,273 | |||||||
Other assets less liabilities—(5.4)% | (7,094,616 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 131,216,657 | ||||||
|
|
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, 2017. |
(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, 2017. |
(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 2I. |
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, 2017
Number of Shares | Value | |||||||
Common Stocks—99.9% | ||||||||
Electric Utilities—35.6% | ||||||||
69,272 | Alliant Energy Corp. | $ | 2,723,775 | |||||
51,726 | American Electric Power Co., Inc. | 3,508,575 | ||||||
58,916 | Duke Energy Corp. | 4,860,570 | ||||||
63,916 | Edison International | 5,111,363 | ||||||
68,092 | Eversource Energy | 4,044,665 | ||||||
34,912 | IDACORP, Inc. | 2,950,762 | ||||||
38,814 | MGE Energy, Inc. | 2,495,740 | ||||||
34,199 | NextEra Energy, Inc. | 4,567,618 | ||||||
88,119 | OGE Energy Corp. | 3,064,779 | ||||||
78,774 | PG&E Corp. | 5,281,797 | ||||||
89,082 | PNM Resources, Inc. | 3,318,304 | ||||||
56,682 | Portland General Electric Co. | 2,569,962 | ||||||
100,281 | Xcel Energy, Inc. | 4,517,659 | ||||||
|
| |||||||
49,015,569 | ||||||||
|
| |||||||
Gas Utilities—15.3% | ||||||||
46,326 | Atmos Energy Corp. | 3,753,333 | ||||||
87,127 | New Jersey Resources Corp. | 3,515,575 | ||||||
37,075 | ONE Gas, Inc. | 2,551,872 | ||||||
71,112 | South Jersey Industries, Inc. | 2,668,122 | ||||||
32,874 | Southwest Gas Holdings, Inc. | 2,753,526 | ||||||
40,188 | Spire, Inc. | 2,754,887 | ||||||
59,607 | UGI Corp. | 2,989,887 | ||||||
|
| |||||||
20,987,202 | ||||||||
|
| |||||||
Independent Power Producers & Energy Traders—2.5% | ||||||||
200,513 | NRG Energy, Inc. | 3,388,670 | ||||||
|
| |||||||
Integrated Telecommunication Services—2.1% | ||||||||
63,770 | Verizon Communications, Inc. | 2,927,681 | ||||||
|
| |||||||
Multi-Utilities—32.7% | ||||||||
58,216 | Ameren Corp. | 3,183,833 | ||||||
65,891 | Avista Corp. | 2,658,043 | ||||||
41,774 | Black Hills Corp. | 2,841,467 | ||||||
129,894 | CenterPoint Energy, Inc. | 3,705,876 | ||||||
108,804 | CMS Energy Corp. | 4,939,702 | ||||||
50,611 | Consolidated Edison, Inc. | 4,012,440 | ||||||
42,389 | DTE Energy Co. | 4,433,465 | ||||||
189,687 | NiSource, Inc. | 4,599,910 | ||||||
47,296 | NorthWestern Corp. | 2,827,355 | ||||||
60,373 | SCANA Corp. | 4,003,334 | ||||||
51,926 | Vectren Corp. | 3,085,443 | ||||||
76,525 | WEC Energy Group, Inc. | 4,631,293 | ||||||
|
| |||||||
44,922,161 | ||||||||
|
| |||||||
Oil & Gas Storage & Transportation—3.3% | ||||||||
87,483 | ONEOK, Inc. | 4,602,480 | ||||||
|
| |||||||
Renewable Electricity—1.7% | ||||||||
39,188 | Ormat Technologies, Inc. | 2,314,443 | ||||||
|
|
Number of Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Water Utilities—6.7% | ||||||||
55,077 | American Water Works Co., Inc. | $ | 4,392,941 | |||||
85,588 | Aqua America, Inc. | 2,832,107 | ||||||
56,581 | California Water Service Group | 2,019,942 | ||||||
|
| |||||||
9,244,990 | ||||||||
|
| |||||||
Total Investments (Cost $134,759,093)—99.9% | 137,403,196 | |||||||
Other assets less liabilities—0.1% | 72,386 | |||||||
|
| |||||||
Net Assets—100.0% | $ | 137,475,582 | ||||||
|
|
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. |
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, 2017
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Alternative Carriers—0.3% | ||||||||
26,625 | Cogent Communications Holdings, Inc. | $ | 1,198,125 | |||||
|
| |||||||
Application Software—0.1% | ||||||||
49,934 | NQ Mobile, Inc., Class A ADR (China)(b)(c) | 188,251 | ||||||
|
| |||||||
Casinos & Gaming—0.1% | ||||||||
16,734 | 500.com Ltd., Class A ADR (China)(b)(c) | 217,710 | ||||||
|
| |||||||
Communications Equipment—1.6% | ||||||||
41,464 | Arista Networks, Inc.(c) | 5,790,033 | ||||||
|
| |||||||
Internet & Direct Marketing Retail—38.7% | ||||||||
20,826 | 1-800-Flowers.com, Inc., Class A(c) | 223,879 | ||||||
30,940 | Amazon.com, Inc.(c) | 28,619,190 | ||||||
244,990 | Ctrip.com International Ltd. ADR (China)(c) | 12,374,445 | ||||||
67,967 | Etsy, Inc.(c) | 731,325 | ||||||
80,010 | Expedia, Inc. | 10,698,937 | ||||||
15,930 | FTD Cos., Inc.(c) | 318,600 | ||||||
328,967 | Groupon, Inc., Class A(c) | 1,289,551 | ||||||
30,650 | HSN, Inc. | 1,130,985 | ||||||
427,799 | JD.Com, Inc., Class A ADR (China)(c) | 15,002,911 | ||||||
18,745 | Lands’ End, Inc.(b)(c) | 442,382 | ||||||
31,657 | Liberty Expedia Holdings, Inc., Class A(c) | 1,529,350 | ||||||
42,181 | Liberty TripAdvisor Holdings, Inc., Series A(c) | 620,061 | ||||||
30,559 | MakeMyTrip Ltd. (India)(b)(c) | 1,173,466 | ||||||
183,949 | Netflix, Inc.(c) | 27,997,038 | ||||||
17,486 | Nutrisystem, Inc. | 934,627 | ||||||
14,855 | Overstock.com, Inc.(c) | 257,734 | ||||||
12,012 | PetMed Express, Inc.(b) | 277,477 | ||||||
15,165 | Priceline Group, Inc. (The)(c) | 28,007,025 | ||||||
19,693 | Shutterfly, Inc.(c) | 1,022,067 | ||||||
76,657 | TripAdvisor, Inc.(c) | 3,450,331 | ||||||
|
| |||||||
136,101,381 | ||||||||
|
| |||||||
Internet Software & Services—55.0% | ||||||||
33,925 | 21Vianet Group, Inc., Class A ADR (China)(b)(c) | 183,534 | ||||||
27,641 | 2U, Inc.(c) | 1,254,901 | ||||||
19,712 | Actua Corp.(c) | 275,968 | ||||||
101,150 | Akamai Technologies, Inc.(c) | 6,164,081 | ||||||
26,908 | Alarm.com Holdings, Inc.(c) | 877,470 | ||||||
31,759 | Alphabet, Inc., Class C(c) | 28,772,384 | ||||||
34,782 | Angie’s List, Inc.(c) | 204,518 | ||||||
29,461 | Autohome, Inc., Class A ADR (China)(c) | 1,019,351 | ||||||
75,101 | Baidu, Inc. ADR (China)(c) | 13,535,453 | ||||||
52,752 | Bankrate, Inc.(c) | 559,171 | ||||||
16,405 | Baozun, Inc. ADR (China)(b)(c) | 250,504 | ||||||
48,850 | Bazaarvoice, Inc.(c) | 229,595 | ||||||
17,976 | Benefitfocus, Inc.(b)(c) | 566,244 | ||||||
24,631 | Blucora, Inc.(c) | 454,442 | ||||||
19,935 | Brightcove, Inc.(c) | 173,434 | ||||||
15,955 | Carbonite, Inc.(c) | 344,628 | ||||||
18,199 | Cimpress NV (Netherlands)(b)(c) | 1,493,774 | ||||||
33,159 | Cornerstone OnDemand, Inc.(c) | 1,302,486 | ||||||
19,032 | CoStar Group, Inc.(c) | 4,584,618 | ||||||
29,252 | Coupa Software, Inc.(c) | 811,743 | ||||||
35,415 | Criteo SA ADR (France)(c) | 1,926,222 | ||||||
29,042 | DHI Group, Inc.(c) | 111,812 | ||||||
385,750 | eBay, Inc.(c) | 12,887,908 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Internet Software & Services (continued) | ||||||||
83,192 | Endurance International Group Holdings, Inc.(c) | $ | 632,259 | |||||
25,198 | Envestnet, Inc.(c) | 876,890 | ||||||
192,891 | Facebook, Inc., Class A(c) | 28,981,873 | ||||||
31,251 | Five9, Inc.(c) | 570,175 | ||||||
52,168 | GoDaddy, Inc., Class A(c) | 2,030,379 | ||||||
50,505 | Gogo, Inc.(b)(c) | 636,868 | ||||||
35,562 | Hortonworks, Inc.(b)(c) | 370,200 | ||||||
41,982 | IAC/InterActiveCorp.(c) | 3,484,926 | ||||||
27,975 | j2 Global, Inc. | 2,524,464 | ||||||
18,372 | Liquidity Services, Inc.(c) | 143,302 | ||||||
33,929 | LivePerson, Inc.(c) | 239,199 | ||||||
30,642 | LogMeIn, Inc. | 3,462,546 | ||||||
26,953 | Match Group, Inc.(b)(c) | 502,134 | ||||||
34,450 | Meet Group, Inc. (The)(c) | 205,322 | ||||||
25,785 | MercadoLibre, Inc. (Argentina) | 5,902,444 | ||||||
32,259 | Mimecast Ltd.(c) | 779,700 | ||||||
19,235 | MINDBODY, Inc., Class A(c) | 545,312 | ||||||
45,774 | Momo, Inc., Class A ADR (China)(c) | 1,738,497 | ||||||
42,867 | NetEase, Inc. ADR (China) | 11,376,473 | ||||||
30,893 | New Relic, Inc.(c) | 1,235,102 | ||||||
38,626 | NIC, Inc. | 824,665 | ||||||
28,623 | Nutanix, Inc., Class A(b)(c) | 434,783 | ||||||
137,710 | Pandora Media, Inc.(b)(c) | 1,494,154 | ||||||
28,006 | RetailMeNot, Inc.(c) | 324,870 | ||||||
20,196 | Shutterstock, Inc.(c) | 873,073 | ||||||
41,351 | SINA Corp. (China)(c) | 3,176,170 | ||||||
22,716 | Sohu.com, Inc. (China)(c) | 881,381 | ||||||
10,056 | SPS Commerce, Inc.(c) | 555,695 | ||||||
9,983 | Stamps.com, Inc.(b)(c) | 1,059,695 | ||||||
10,385 | Trade Desk, Inc. (The), Class A(b)(c) | 387,880 | ||||||
50,016 | TrueCar, Inc.(b)(c) | 876,280 | ||||||
424,423 | Twitter, Inc.(c) | 6,994,491 | ||||||
59,743 | VeriSign, Inc.(b)(c) | 5,312,348 | ||||||
29,472 | Web.com Group, Inc.(c) | 568,810 | ||||||
22,015 | WebMD Health Corp.(c) | 1,193,873 | ||||||
33,292 | Weibo Corp., Class A ADR (China)(b)(c) | 1,859,691 | ||||||
24,696 | Wix.com Ltd. (Israel)(c) | 2,036,185 | ||||||
286,409 | Yahoo!, Inc.(c) | 13,807,778 | ||||||
162,025 | Yandex NV, Class A (Russia)(c) | 4,416,802 | ||||||
22,434 | YY, Inc., Class A ADR (China)(c) | 1,098,593 | ||||||
31,878 | Zillow Group, Inc., Class A(c) | 1,226,984 | ||||||
|
| |||||||
193,626,507 | ||||||||
|
| |||||||
Specialized REITs—4.1% | ||||||||
34,776 | Equinix, Inc. REIT | 14,525,935 | ||||||
|
| |||||||
Wireless Telecommunication Services—0.1% | ||||||||
22,406 | Boingo Wireless, Inc.(c) | 320,182 | ||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $290,195,041) | 351,968,124 | |||||||
|
| |||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 43 |
|
PowerShares NASDAQ Internet Portfolio (PNQI) (continued)
April 30, 2017
Number of Shares | Value | |||||||
Money Market Fund—0.0% | ||||||||
106,392 | Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.65%(d) (Cost $106,392) | $ | 106,392 | |||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $290,301,433)—100.0% | 352,074,516 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—4.1% | ||||||||
14,476,799 | Invesco Government & Agency Portfolio—Institutional Class, 0.67%(d)(e) (Cost $14,476,799) | 14,476,799 | ||||||
|
| |||||||
Total Investments (Cost $304,778,232)—104.1% | 366,551,315 | |||||||
Other assets less liabilities—(4.1)% | (14,612,179 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 351,939,136 | ||||||
|
|
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, 2017. |
(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, 2017. |
(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 2I. |
This Fund has holdings greater than 10% of net assets in the following country:
China | 17.9 | % |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 44 |
|
(This Page Intentionally Left Blank)
| 45 |
|
Statements of Assets and Liabilities
April 30, 2017
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) | $ | 101,271,820 | $ | 28,836,589 | $ | 77,188,996 | $ | 112,703,413 | $ | 85,817,758 | ||||||||||
Affiliated investments, at value | 75,370 | 1,285,784 | 2,833,831 | 8,047,082 | 96,496 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total investments, at value | 101,347,190 | 30,122,373 | 80,022,827 | 120,750,495 | 85,914,254 | |||||||||||||||
Receivables: | ||||||||||||||||||||
Dividends | 57,820 | 8,664 | 41,998 | 73,107 | 63,622 | |||||||||||||||
Investments sold | — | — | — | — | — | |||||||||||||||
Securities lending | — | 2,681 | 1,519 | 11,000 | — | |||||||||||||||
Other assets | 847 | 738 | 1,028 | 789 | 646 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Assets | 101,405,857 | 30,134,456 | 80,067,372 | 120,835,391 | 85,978,522 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Liabilities: | ||||||||||||||||||||
Payables: | ||||||||||||||||||||
Shares repurchased | — | — | — | — | — | |||||||||||||||
Collateral upon return of securities loaned | — | 1,227,268 | 2,751,133 | 7,905,625 | — | |||||||||||||||
Accrued advisory fees | 26,818 | 577 | 25,398 | 41,076 | 28,016 | |||||||||||||||
Accrued trustees’ and officer’s fees | 18,965 | 17,431 | 18,620 | 21,699 | 16,479 | |||||||||||||||
Accrued expenses | 91,227 | 52,680 | 80,808 | 135,951 | 77,418 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Liabilities | 137,010 | 1,297,956 | 2,875,959 | 8,104,351 | 121,913 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets | $ | 101,268,847 | $ | 28,836,500 | $ | 77,191,413 | $ | 112,731,040 | $ | 85,856,609 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets Consist of: | ||||||||||||||||||||
Shares of beneficial interest | $ | 129,050,449 | $ | 71,471,661 | $ | 113,569,901 | $ | 255,040,126 | $ | 100,241,421 | ||||||||||
Undistributed net investment income (loss) | (9,366 | ) | (16,636 | ) | (17,913 | ) | (20,542 | ) | (15,674 | ) | ||||||||||
Undistributed net realized gain (loss) | (35,615,171 | ) | (46,144,878 | ) | (43,010,104 | ) | (134,662,381 | ) | (14,925,325 | ) | ||||||||||
Net unrealized appreciation (depreciation) | 7,842,935 | 3,526,353 | 6,649,529 | (7,626,163 | ) | 556,187 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets | $ | 101,268,847 | $ | 28,836,500 | $ | 77,191,413 | $ | 112,731,040 | $ | 85,856,609 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 1,650,000 | 650,000 | 1,300,000 | 3,100,000 | 2,800,000 | |||||||||||||||
Net asset value | $ | 61.38 | $ | 44.36 | $ | 59.38 | $ | 36.36 | $ | 30.66 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Market price | $ | 61.38 | $ | 44.37 | $ | 59.38 | $ | 36.35 | $ | 30.64 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Unaffiliated investments, at cost | $ | 93,428,885 | $ | 25,310,236 | $ | 70,539,467 | $ | 120,329,576 | $ | 85,261,571 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Affiliated investments, at cost | $ | 75,370 | $ | 1,285,784 | $ | 2,833,831 | $ | 8,047,082 | $ | 96,496 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total investments, at cost | $ | 93,504,255 | $ | 26,596,020 | $ | 73,373,298 | $ | 128,376,658 | $ | 85,358,067 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
(a) Includes securities on loan with an aggregate value of | $ | — | $ | 1,174,780 | $ | 2,700,372 | $ | 7,714,867 | $ | — | ||||||||||
|
|
|
|
|
|
|
|
|
|
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) | ||||||||||||||
$ | 63,296,441 | $ | 130,632,188 | $ | 131,257,945 | $ | 137,403,196 | $ | 351,968,124 | |||||||||
6,059,479 | 100,659 | 7,053,328 | — | 14,583,191 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
69,355,920 | 130,732,847 | 138,311,273 | 137,403,196 | 366,551,315 | ||||||||||||||
1,257 | 69,975 | 17,864 | 195,095 | 53 | ||||||||||||||
— | — | 2,272,175 | 4,153,046 | — | ||||||||||||||
3,674 | — | 2,297 | — | 24,193 | ||||||||||||||
717 | 686 | 997 | 1,019 | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
69,361,568 | 130,803,508 | 140,604,606 | 141,752,356 | 366,575,561 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
— | — | 2,272,066 | 4,153,655 | — | ||||||||||||||
5,970,939 | — | 6,947,671 | — | 14,476,799 | ||||||||||||||
21,414 | 53,602 | 41,849 | 29,236 | 159,626 | ||||||||||||||
20,434 | 19,117 | 18,229 | 17,959 | — | ||||||||||||||
69,843 | 61,468 | 108,134 | 75,924 | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
6,082,630 | 134,187 | 9,387,949 | 4,276,774 | 14,636,425 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 63,278,938 | $ | 130,669,321 | $ | 131,216,657 | $ | 137,475,582 | $ | 351,939,136 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 147,063,588 | $ | 183,021,719 | $ | 187,152,727 | $ | 151,781,962 | $ | 315,340,365 | |||||||||
(135,123 | ) | 10,597 | (17,440 | ) | 302,506 | (763,581 | ) | |||||||||||
(92,757,359 | ) | (62,616,471 | ) | (73,563,352 | ) | (17,252,989 | ) | (24,410,731 | ) | |||||||||
9,107,832 | 10,253,476 | 17,644,722 | 2,644,103 | 61,773,083 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 63,278,938 | $ | 130,669,321 | $ | 131,216,657 | $ | 137,475,582 | $ | 351,939,136 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
1,150,000 | 2,500,000 | 2,900,000 | 5,000,000 | 3,550,000 | ||||||||||||||
$ | 55.03 | $ | 52.27 | $ | 45.25 | $ | 27.50 | $ | 99.14 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 55.02 | $ | 52.26 | $ | 45.22 | $ | 27.51 | $ | 99.17 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 54,188,609 | $ | 120,378,712 | $ | 113,613,223 | $ | 134,759,093 | $ | 290,195,041 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 6,059,479 | $ | 100,659 | $ | 7,053,328 | $ | — | $ | 14,583,191 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 60,248,088 | $ | 120,479,371 | $ | 120,666,551 | $ | 134,759,093 | $ | 304,778,232 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 5,845,969 | $ | — | $ | 6,798,842 | $ | — | $ | 14,146,144 | |||||||||
|
|
|
|
|
|
|
|
|
|
| 47 |
|
For the year ended April 30, 2017
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 | $ | 2,030,947 | $ | 412,899 | $ | 3,709,969 | $ | 1,039,516 | $ | 1,172,725 | ||||||||||
Affiliated dividend income | 485 | 436 | 933 | 654 | 354 | |||||||||||||||
Securities lending income | 49 | 12,566 | 7,227 | 432,541 | — | |||||||||||||||
Foreign withholding tax | — | — | — | — | (1,035 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Income | 2,031,481 | 425,901 | 3,718,129 | 1,472,711 | 1,172,044 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Expenses: | ||||||||||||||||||||
Advisory fees | 729,631 | 225,067 | 964,786 | 783,822 | 275,030 | |||||||||||||||
Sub-licensing fees | 164,079 | 67,487 | 289,429 | 235,129 | 53,514 | |||||||||||||||
Accounting & administration fees | 36,830 | 35,936 | 43,913 | 38,383 | 36,827 | |||||||||||||||
Professional fees | 27,933 | 27,444 | 30,405 | 27,906 | 26,358 | |||||||||||||||
Trustees’ and officer’s fees | 9,381 | 8,804 | 11,281 | 9,779 | 8,065 | |||||||||||||||
Custodian & transfer agent fees | 5,382 | 4,366 | 4,537 | 2,321 | 3,122 | |||||||||||||||
Other expenses | 27,632 | 16,099 | 28,128 | 28,099 | 19,120 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Expenses | 1,000,868 | 385,203 | 1,372,479 | 1,125,439 | 422,036 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Less: Waivers | (125,530 | ) | (115,326 | ) | (215,185 | ) | (184,863 | ) | (92,176 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Expenses | 875,338 | 269,877 | 1,157,294 | 940,576 | 329,860 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Investment Income (Loss) | 1,156,143 | 156,024 | 2,560,835 | 532,135 | 842,184 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Realized and Unrealized Gain (Loss): | ||||||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||||||
Investment securities | (8,207,019 | ) | (7,809,559 | ) | (16,542,364 | ) | (22,968,040 | ) | (2,819,014 | ) | ||||||||||
In-kind redemptions | 30,571,800 | 3,355,327 | 18,859,675 | 32,533,623 | 5,194,084 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized gain (loss) | 22,364,781 | (4,454,232 | ) | 2,317,311 | 9,565,583 | 2,375,070 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net change in unrealized appreciation (depreciation) on investment securities | (6,190,316 | ) | 5,160,383 | (2,462,507 | ) | (26,190,023 | ) | (777,578 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized and unrealized gain (loss) | 16,174,465 | 706,151 | (145,196 | ) | (16,624,440 | ) | 1,597,492 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 17,330,608 | $ | 862,175 | $ | 2,415,639 | $ | (16,092,305 | ) | $ | 2,439,676 | |||||||||
|
|
|
|
|
|
|
|
|
|
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) | ||||||||||||||
$ | 115,722 | $ | 1,060,033 | $ | 701,733 | $ | 4,278,341 | $ | 778,900 | |||||||||
437 | 390 | 598 | 550 | 265 | ||||||||||||||
22,906 | — | 478,233 | 140,383 | 190,647 | ||||||||||||||
— | (8,560 | ) | (10,779 | ) | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
139,065 | 1,051,863 | 1,169,785 | 4,419,274 | 969,812 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
337,706 | 442,814 | 761,518 | 721,721 | 1,726,226 | ||||||||||||||
101,393 | 44,478 | 228,637 | 200,018 | — | ||||||||||||||
34,126 | 36,073 | 35,045 | 38,051 | — | ||||||||||||||
26,499 | 25,557 | 28,447 | 28,015 | — | ||||||||||||||
8,424 | 8,420 | 9,969 | 9,992 | — | ||||||||||||||
2,869 | 3,097 | 6,617 | 6,378 | — | ||||||||||||||
19,027 | 18,046 | 24,365 | 27,634 | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
530,044 | 578,485 | 1,094,598 | 1,031,809 | 1,726,226 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
(124,992 | ) | (47,287 | ) | (181,049 | ) | (166,005 | ) | (116 | ) | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
405,052 | 531,198 | 913,549 | 865,804 | 1,726,110 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
(265,987 | ) | 520,665 | 256,236 | 3,553,470 | (756,298 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
(8,034,317 | ) | (4,141,118 | ) | (15,683,419 | ) | (3,693,792 | ) | (8,708,341 | ) | |||||||||
15,936,437 | 10,699,472 | 33,711,832 | 15,941,355 | 26,533,887 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
7,902,120 | 6,558,354 | 18,028,413 | 12,247,563 | 17,825,546 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
6,866,058 | 8,227,537 | 15,379,489 | (6,365,320 | ) | 58,680,808 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
14,768,178 | 14,785,891 | 33,407,902 | 5,882,243 | 76,506,354 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 14,502,191 | $ | 15,306,556 | $ | 33,664,138 | $ | 9,435,713 | $ | 75,750,056 | |||||||||
|
|
|
|
|
|
|
|
|
|
| 49 |
|
Statements of Changes in Net Assets
For the years ended April 30, 2017 and 2016
PowerShares DWA Basic Materials Momentum Portfolio (PYZ) | PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ) | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 1,156,143 | $ | 814,137 | $ | 156,024 | $ | 722,497 | ||||||||
Net realized gain (loss) | 22,364,781 | (3,589,718 | ) | (4,454,232 | ) | (19,340,333 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | (6,190,316 | ) | 9,952,259 | 5,160,383 | (8,257,723 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 17,330,608 | 7,176,678 | 862,175 | (26,875,559 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net investment income | (1,284,408 | ) | (869,950 | ) | (418,318 | ) | (507,462 | ) | ||||||||
Return of capital | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (1,284,408 | ) | (869,950 | ) | (418,318 | ) | (507,462 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shareholder Transactions: | ||||||||||||||||
Proceeds from shares sold | 168,900,387 | 118,077,520 | 19,237,137 | 242,968,038 | ||||||||||||
Value of shares repurchased | (252,175,160 | ) | (33,968,926 | ) | (83,808,889 | ) | (219,083,505 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from shares transactions | (83,274,773 | ) | 84,108,594 | (64,571,752 | ) | 23,884,533 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Increase (Decrease) in Net Assets | (67,228,573 | ) | 90,415,322 | (64,127,895 | ) | (3,498,488 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 168,497,420 | 78,082,098 | 92,964,395 | 96,462,883 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 101,268,847 | $ | 168,497,420 | $ | 28,836,500 | $ | 92,964,395 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income at end of year | $ | (9,366 | ) | $ | 118,899 | $ | (16,636 | ) | $ | 243,228 | ||||||
|
|
|
|
|
|
|
| |||||||||
Changes in Shares Outstanding: | ||||||||||||||||
Shares sold | 2,950,000 | 2,350,000 | 450,000 | 5,250,000 | ||||||||||||
Shares repurchased | (4,400,000 | ) | (700,000 | ) | (2,000,000 | ) | (5,150,000 | ) | ||||||||
Shares outstanding, beginning of year | 3,100,000 | 1,450,000 | 2,200,000 | 2,100,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding, end of year | 1,650,000 | 3,100,000 | 650,000 | 2,200,000 | ||||||||||||
|
|
|
|
|
|
|
|
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) | ||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
$ | 2,560,835 | $ | 1,859,483 | $ | 532,135 | $ | 1,751,429 | $ | 842,184 | $ | 444,647 | |||||||||||
2,317,311 | 2,917,120 | 9,565,583 | (47,431,832 | ) | 2,375,070 | (1,326,466 | ) | |||||||||||||||
(2,462,507 | ) | 2,304,927 | (26,190,023 | ) | 5,917,263 | (777,578 | ) | (271,892 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
2,415,639 | 7,081,530 | (16,092,305 | ) | (39,763,140 | ) | 2,439,676 | (1,153,711 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(3,477,597 | ) | (1,309,748 | ) | (693,416 | ) | (2,409,629 | ) | (1,505,911 | ) | (414,019 | ) | |||||||||||
— | — | (214,044 | ) | — | — | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(3,477,597 | ) | (1,309,748 | ) | (907,460 | ) | (2,409,629 | ) | (1,505,911 | ) | (414,019 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
79,228,734 | 384,038,893 | 213,214,864 | 40,220,901 | 135,281,308 | 6,051,459 | |||||||||||||||||
(298,045,382 | ) | (190,454,068 | ) | (208,770,512 | ) | (55,939,362 | ) | (79,776,451 | ) | (13,512,339 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(218,816,648 | ) | 193,584,825 | 4,444,352 | (15,718,461 | ) | 55,504,857 | (7,460,880 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(219,878,606 | ) | 199,356,607 | (12,555,413 | ) | (57,891,230 | ) | 56,438,622 | (9,028,610 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
297,070,019 | 97,713,412 | 125,286,453 | 183,177,683 | 29,417,987 | 38,446,597 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 77,191,413 | $ | 297,070,019 | $ | 112,731,040 | $ | 125,286,453 | $ | 85,856,609 | $ | 29,417,987 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | (17,913 | ) | $ | 650,671 | $ | (20,542 | ) | $ | 140,739 | $ | (15,674 | ) | $ | 119,151 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
1,400,000 | 6,850,000 | 5,000,000 | 1,100,000 | 4,400,000 | 200,000 | |||||||||||||||||
(5,400,000 | ) | (3,450,000 | ) | (5,200,000 | ) | (1,500,000 | ) | (2,600,000 | ) | (450,000 | ) | |||||||||||
5,300,000 | 1,900,000 | 3,300,000 | 3,700,000 | 1,000,000 | 1,250,000 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
1,300,000 | 5,300,000 | 3,100,000 | 3,300,000 | 2,800,000 | 1,000,000 | |||||||||||||||||
|
|
|
|
|
|
|
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|
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| 51 |
|
Statements of Changes in Net Assets (continued)
For the years ended April 30, 2017 and 2016
PowerShares DWA Healthcare Momentum Portfolio (PTH) | PowerShares DWA Industrials Momentum Portfolio (PRN) | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Operations: | ||||||||||||||||
Net investment income (loss) | $ | (265,987 | ) | $ | (954,074 | ) | $ | 520,665 | $ | 441,691 | ||||||
Net realized gain (loss) | 7,902,120 | (58,814,460 | ) | 6,558,354 | (6,082,402 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) | 6,866,058 | (13,159,154 | ) | 8,227,537 | (4,408,769 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 14,502,191 | (72,927,688 | ) | 15,306,556 | (10,049,480 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net investment income | — | — | (553,696 | ) | (525,854 | ) | ||||||||||
Return of capital | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | — | — | (553,696 | ) | (525,854 | ) | ||||||||||
|
|
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|
|
|
| |||||||||
Shareholder Transactions: | ||||||||||||||||
Proceeds from shares sold | 69,403,752 | 169,070,157 | 158,242,219 | 64,488,214 | ||||||||||||
Value of shares repurchased | (95,958,769 | ) | (199,613,152 | ) | (85,202,042 | ) | (123,450,417 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from shares transactions | (26,555,017 | ) | (30,542,995 | ) | 73,040,177 | (58,962,203 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Increase (Decrease) in Net Assets | (12,052,826 | ) | (103,470,683 | ) | 87,793,037 | (69,537,537 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 75,331,764 | 178,802,447 | 42,876,284 | 112,413,821 | ||||||||||||
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| |||||||||
End of year | $ | 63,278,938 | $ | 75,331,764 | $ | 130,669,321 | $ | 42,876,284 | ||||||||
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|
|
|
|
| |||||||||
Undistributed net investment income (loss) at end of year | $ | (135,123 | ) | $ | (194,516 | ) | $ | 10,597 | $ | 43,628 | ||||||
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|
|
| |||||||||
Changes in Shares Outstanding: | ||||||||||||||||
Shares sold | 1,350,000 | 2,800,000 | 3,250,000 | 1,400,000 | ||||||||||||
Shares repurchased | (1,900,000 | ) | (4,200,000 | ) | (1,700,000 | ) | (2,850,000 | ) | ||||||||
Shares outstanding, beginning of year | 1,700,000 | 3,100,000 | 950,000 | 2,400,000 | ||||||||||||
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|
|
|
|
| |||||||||
Shares outstanding, end of year | 1,150,000 | 1,700,000 | 2,500,000 | 950,000 | ||||||||||||
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|
|
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) | ||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
$ | 256,236 | $ | (57,773 | ) | $ | 3,553,470 | $ | 1,801,366 | $ | (756,298 | ) | $ | (509,838 | ) | ||||||||
18,028,413 | (26,246,821 | ) | 12,247,563 | 4,654,292 | 17,825,546 | 13,802,424 | ||||||||||||||||
15,379,489 | (4,839,493 | ) | (6,365,320 | ) | 6,605,206 | 58,680,808 | (6,067,975 | ) | ||||||||||||||
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|
|
|
|
|
| |||||||||||
33,664,138 | (31,144,087 | ) | 9,435,713 | 13,060,864 | 75,750,056 | 7,224,611 | ||||||||||||||||
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|
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|
|
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| |||||||||||
(172,973 | ) | — | (3,999,102 | ) | (1,178,184 | ) | — | — | ||||||||||||||
(192,217 | ) | — | — | — | — | — | ||||||||||||||||
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|
|
|
|
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| |||||||||||
(365,190 | ) | — | (3,999,102 | ) | (1,178,184 | ) | — | — | ||||||||||||||
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|
|
|
|
|
|
| |||||||||||
105,469,937 | 288,451,357 | 181,244,678 | 198,194,423 | 84,874,769 | 136,066,781 | |||||||||||||||||
(190,175,480 | ) | (139,271,747 | ) | (250,158,823 | ) | (44,017,408 | ) | (87,837,710 | ) | (80,990,297 | ) | |||||||||||
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|
|
| |||||||||||
(84,705,543 | ) | 149,179,610 | (68,914,145 | ) | 154,177,015 | (2,962,941 | ) | 55,076,484 | ||||||||||||||
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| |||||||||||
(51,406,595 | ) | 118,035,523 | (63,477,534 | ) | 166,059,695 | 72,787,115 | 62,301,095 | |||||||||||||||
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| |||||||||||
182,623,252 | 64,587,729 | 200,953,116 | 34,893,421 | 279,152,021 | 216,850,926 | |||||||||||||||||
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|
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| |||||||||||
$ | 131,216,657 | $ | 182,623,252 | $ | 137,475,582 | $ | 200,953,116 | $ | 351,939,136 | $ | 279,152,021 | |||||||||||
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|
|
|
|
|
|
|
| |||||||||||
$ | (17,440 | ) | $ | (100,703 | ) | $ | 302,506 | $ | 748,138 | $ | (763,581 | ) | $ | (305,621 | ) | |||||||
|
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|
|
|
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|
|
|
|
|
| |||||||||||
2,500,000 | 7,050,000 | 6,650,000 | 8,250,000 | 950,000 | 1,750,000 | |||||||||||||||||
(4,650,000 | ) | (3,600,000 | ) | (9,650,000 | ) | (1,800,000 | ) | (1,050,000 | ) | (1,100,000 | ) | |||||||||||
5,050,000 | 1,600,000 | 8,000,000 | 1,550,000 | 3,650,000 | 3,000,000 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
2,900,000 | 5,050,000 | 5,000,000 | 8,000,000 | 3,550,000 | 3,650,000 | |||||||||||||||||
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| 53 |
|
PowerShares DWA Basic Materials Momentum Portfolio (PYZ)
Year Ended April 30, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 54.35 | $ | 53.85 | $ | 52.33 | $ | 43.38 | $ | 38.24 | ||||||||||
Net investment income(a) | 0.46 | 0.58 | 0.43 | 0.51 | 0.63 | |||||||||||||||
Net realized and unrealized gain on investments | 7.14 | 0.59 | 1.57 | 8.95 | 5.16 | |||||||||||||||
Total from investment operations | 7.60 | 1.17 | 2.00 | 9.46 | 5.79 | |||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.57 | ) | (0.67 | ) | (0.48 | ) | (0.51 | ) | (0.65 | ) | ||||||||||
Net asset value at end of year | $ | 61.38 | $ | 54.35 | $ | 53.85 | $ | 52.33 | $ | 43.38 | ||||||||||
Market price at end of year(b) | $ | 61.38 | $ | 54.38 | $ | 53.80 | $ | 52.31 | $ | 43.29 | ||||||||||
Net Asset Value Total Return(c) | 14.04 | % | 2.32 | % | 3.82 | % | 21.97 | % | 15.37 | % | ||||||||||
Market Price Total Return(c) | 13.98 | % | 2.47 | % | 3.77 | % | 22.18 | % | 15.26 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 101,269 | $ | 168,497 | $ | 78,082 | $ | 94,190 | $ | 80,253 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.60 | % | 0.60 | % | 0.60 | % | 0.64 | % | 0.65 | % | ||||||||||
Expenses, prior to Waivers | 0.69 | % | 0.69 | % | 0.69 | % | 0.68 | % | 0.72 | % | ||||||||||
Net investment income, after Waivers | 0.79 | % | 1.17 | % | 0.79 | % | 1.08 | % | 1.59 | % | ||||||||||
Portfolio turnover rate(d) | 132 | % | 96 | % | 80 | % | 158 | % | 63 | % |
(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, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 42.26 | $ | 45.93 | $ | 39.79 | $ | 34.19 | $ | 29.90 | ||||||||||
Net investment income(a) | 0.15 | 0.17 | 0.27 | 0.17 | 0.39 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.30 | (3.71 | ) | 6.06 | 5.63 | 4.24 | ||||||||||||||
Total from investment operations | 2.45 | (3.54 | ) | 6.33 | 5.80 | 4.63 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.35 | ) | (0.13 | ) | (0.19 | ) | (0.20 | ) | (0.34 | ) | ||||||||||
Net asset value at end of year | $ | 44.36 | $ | 42.26 | $ | 45.93 | $ | 39.79 | $ | 34.19 | ||||||||||
Market price at end of year(b) | $ | 44.37 | $ | 42.25 | $ | 45.93 | $ | 39.74 | $ | 34.16 | ||||||||||
Net Asset Value Total Return(c) | 5.85 | % | (7.73 | )% | 15.91 | % | 16.97 | % | 15.67 | % | ||||||||||
Market Price Total Return(c) | 5.90 | % | (7.76 | )% | 16.06 | % | 16.93 | % | 15.60 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 28,837 | $ | 92,964 | $ | 96,463 | $ | 45,754 | $ | 23,933 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.60 | % | 0.60 | % | 0.60 | % | 0.64 | % | 0.65 | % | ||||||||||
Expenses, prior to Waivers | 0.86 | % | 0.71 | % | 0.81 | % | 0.91 | % | 0.93 | % | ||||||||||
Net investment income, after Waivers | 0.35 | % | 0.39 | % | 0.63 | % | 0.42 | % | 1.29 | % | ||||||||||
Portfolio turnover rate(d) | 117 | % | 139 | % | 114 | % | 236 | % | 130 | % |
(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 |
|
Financial Highlights (continued)
PowerShares DWA Consumer Staples Momentum Portfolio (PSL)
Year Ended April 30, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 56.05 | $ | 51.43 | $ | 43.04 | $ | 39.69 | $ | 32.61 | ||||||||||
Net investment income(a) | 0.76 | 0.43 | 0.76 | (b) | 0.66 | 0.66 | ||||||||||||||
Net realized and unrealized gain on investments | 3.69 | 4.54 | 8.37 | 3.26 | 7.13 | |||||||||||||||
Total from investment operations | 4.45 | 4.97 | 9.13 | 3.92 | 7.79 | |||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (1.12 | ) | (0.35 | ) | (0.74 | ) | (0.57 | ) | (0.71 | ) | ||||||||||
Net asset value at end of year | $ | 59.38 | $ | 56.05 | $ | 51.43 | $ | 43.04 | $ | 39.69 | ||||||||||
Market price at end of year(c) | $ | 59.38 | $ | 56.05 | $ | 51.43 | $ | 43.03 | $ | 39.67 | ||||||||||
Net Asset Value Total Return(d) | 8.12 | % | 9.67 | % | 21.28 | % | 9.93 | % | 24.29 | % | ||||||||||
Market Price Total Return(d) | 8.12 | % | 9.67 | % | 21.31 | % | 9.97 | % | 24.27 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 77,191 | $ | 297,070 | $ | 97,713 | $ | 38,738 | $ | 37,708 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.60 | % | 0.60 | % | 0.60 | % | 0.64 | % | 0.65 | % | ||||||||||
Expenses, prior to Waivers | 0.71 | % | 0.69 | % | 0.78 | % | 0.79 | % | 0.82 | % | ||||||||||
Net investment income, after Waivers | 1.33 | % | 0.76 | % | 1.54 | %(b) | 1.56 | % | 1.94 | % | ||||||||||
Portfolio turnover rate(e) | 106 | % | 113 | % | 83 | % | 175 | % | 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 $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, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 37.97 | $ | 49.51 | $ | 60.41 | $ | 48.39 | $ | 40.45 | ||||||||||
Net investment income(a) | 0.14 | 0.51 | 0.53 | 0.34 | 0.47 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.50 | ) | (11.39 | ) | (10.82 | ) | 12.01 | 8.13 | ||||||||||||
Total from investment operations | (1.36 | ) | (10.88 | ) | (10.29 | ) | 12.35 | 8.60 | ||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.19 | ) | (0.66 | ) | (0.61 | ) | (0.33 | ) | (0.66 | ) | ||||||||||
Return of capital | (0.06 | ) | — | — | — | — | ||||||||||||||
Total distributions | (0.25 | ) | (0.66 | ) | (0.61 | ) | (0.33 | ) | (0.66 | ) | ||||||||||
Net asset value at end of year | $ | 36.36 | $ | 37.97 | $ | 49.51 | $ | 60.41 | $ | 48.39 | ||||||||||
Market price at end of year(b) | $ | 36.35 | $ | 37.95 | $ | 49.51 | $ | 60.37 | $ | 48.36 | ||||||||||
Net Asset Value Total Return(c) | (3.62 | )% | (22.01 | )% | (17.08 | )% | 25.66 | % | 21.48 | % | ||||||||||
Market Price Total Return(c) | (3.60 | )% | (22.05 | )% | (17.02 | )% | 25.66 | % | 21.35 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 112,731 | $ | 125,286 | $ | 183,178 | $ | 214,441 | $ | 137,916 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.60 | % | 0.60 | % | 0.60 | % | 0.64 | % | 0.66 | % | ||||||||||
Expenses, prior to Waivers | 0.72 | % | 0.76 | % | 0.74 | % | 0.64 | % | 0.69 | % | ||||||||||
Net investment income, after Waivers | 0.34 | % | 1.32 | % | 0.97 | % | 0.65 | % | 1.10 | % | ||||||||||
Portfolio turnover rate(d) | 116 | % | 119 | % | 109 | % | 198 | % | 80 | % |
(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 |
|
Financial Highlights (continued)
PowerShares DWA Financial Momentum Portfolio (PFI)
Year Ended April 30, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 29.42 | $ | 30.76 | $ | 27.82 | $ | 23.92 | $ | 20.08 | ||||||||||
Net investment income(a) | 0.47 | 0.42 | 0.37 | 0.32 | 0.35 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.43 | (1.37 | ) | 2.92 | 3.93 | 3.83 | ||||||||||||||
Total from investment operations | 1.90 | (0.95 | ) | 3.29 | 4.25 | 4.18 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.66 | ) | (0.39 | ) | (0.35 | ) | (0.35 | ) | (0.34 | ) | ||||||||||
Net asset value at end of year | $ | 30.66 | $ | 29.42 | $ | 30.76 | $ | 27.82 | $ | 23.92 | ||||||||||
Market price at end of year(b) | $ | 30.64 | $ | 29.43 | $ | 30.76 | $ | 27.79 | $ | 23.90 | ||||||||||
Net Asset Value Total Return(c) | 6.51 | % | (3.11 | )% | 11.84 | % | 17.89 | % | 21.07 | % | ||||||||||
Market Price Total Return(c) | 6.41 | % | (3.08 | )% | 11.96 | % | 17.86 | % | 21.03 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 85,857 | $ | 29,418 | $ | 38,447 | $ | 36,167 | $ | 20,330 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.60 | % | 0.60 | % | 0.60 | %(d) | 0.64 | %(d) | 0.66 | %(d) | ||||||||||
Expenses, prior to Waivers | 0.77 | % | 0.84 | % | 0.85 | %(d) | 0.91 | %(d) | 1.10 | %(d) | ||||||||||
Net investment income, after Waivers | 1.53 | % | 1.38 | % | 1.24 | % | 1.20 | % | 1.66 | % | ||||||||||
Portfolio turnover rate(e) | 204 | % | 119 | % | 115 | % | 232 | % | 118 | % |
(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.
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Financial Highlights (continued)
PowerShares DWA Healthcare Momentum Portfolio (PTH)
Year Ended April 30, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 44.31 | $ | 57.68 | $ | 45.34 | $ | 38.76 | $ | 32.29 | ||||||||||
Net investment income (loss)(a) | (0.19 | ) | (0.27 | ) | (0.20 | ) | 0.00 | (b) | 0.43 | |||||||||||
Net realized and unrealized gain (loss) on investments | 10.91 | (13.10 | ) | 12.54 | 6.73 | 6.39 | ||||||||||||||
Total from investment operations | 10.72 | (13.37 | ) | 12.34 | 6.73 | 6.82 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | — | — | — | (0.15 | ) | (0.35 | ) | |||||||||||||
Net asset value at end of year | $ | 55.03 | $ | 44.31 | $ | 57.68 | $ | 45.34 | $ | 38.76 | ||||||||||
Market price at end of year(c) | $ | 55.02 | $ | 44.28 | $ | 57.64 | $ | 45.34 | $ | 38.69 | ||||||||||
Net Asset Value Total Return(d) | 24.19 | % | (23.18 | )% | 27.22 | % | 17.41 | % | 21.31 | % | ||||||||||
Market Price Total Return(d) | 24.26 | % | (23.18 | )% | 27.13 | % | 17.62 | % | 21.06 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 63,279 | $ | 75,332 | $ | 178,802 | $ | 106,560 | $ | 60,071 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.60 | % | 0.60 | % | 0.60 | % | 0.64 | % | 0.65 | % | ||||||||||
Expenses, prior to Waivers | 0.78 | % | 0.70 | % | 0.68 | % | 0.68 | % | 0.74 | % | ||||||||||
Net investment income (loss), after Waivers | (0.39 | )% | (0.48 | )% | (0.38 | )% | 0.01 | % | 1.26 | % | ||||||||||
Portfolio turnover rate(e) | 175 | % | 200 | % | 151 | % | 278 | % | 93 | % |
(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, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 45.13 | $ | 46.84 | $ | 46.47 | $ | 36.74 | $ | 30.02 | ||||||||||
Net investment income(a) | 0.29 | 0.22 | 0.17 | 0.19 | 0.52 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 7.14 | (1.73 | ) | 0.35 | 9.72 | 6.89 | ||||||||||||||
Total from investment operations | 7.43 | (1.51 | ) | 0.52 | 9.91 | 7.41 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.29 | ) | (0.20 | ) | (0.15 | ) | (0.18 | ) | (0.65 | ) | ||||||||||
Return of capital | — | — | — | — | (0.04 | ) | ||||||||||||||
Total distributions | (0.29 | ) | (0.20 | ) | (0.15 | ) | (0.18 | ) | (0.69 | ) | ||||||||||
Net asset value at end of year | $ | 52.27 | $ | 45.13 | $ | 46.84 | $ | 46.47 | $ | 36.74 | ||||||||||
Market price at end of year(b) | $ | 52.26 | $ | 45.13 | $ | 46.85 | $ | 46.43 | $ | 36.72 | ||||||||||
Net Asset Value Total Return(c) | 16.50 | % | (3.24 | )% | 1.12 | % | 27.01 | % | 25.18 | % | ||||||||||
Market Price Total Return(c) | 16.48 | % | (3.26 | )% | 1.23 | % | 26.97 | % | 25.19 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 130,669 | $ | 42,876 | $ | 112,414 | $ | 169,622 | $ | 38,573 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.60 | % | 0.60 | % | 0.60 | % | 0.63 | % | 0.65 | % | ||||||||||
Expenses, prior to Waivers | 0.65 | % | 0.65 | % | 0.64 | % | 0.66 | % | 0.92 | % | ||||||||||
Net investment income, after Waivers | 0.59 | % | 0.48 | % | 0.36 | % | 0.43 | % | 1.65 | % | ||||||||||
Portfolio turnover rate(d) | 122 | % | 122 | % | 121 | % | 285 | % | 116 | % |
(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 DWA Technology Momentum Portfolio (PTF)
Year Ended April 30, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 36.16 | $ | 40.37 | $ | 32.44 | $ | 29.14 | $ | 27.29 | ||||||||||
Net investment income (loss)(a) | 0.07 | (0.01 | ) | 0.17 | 0.04 | 0.17 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 9.12 | (4.20 | ) | 8.02 | 3.32 | 1.88 | ||||||||||||||
Total from investment operations | 9.19 | (4.21 | ) | 8.19 | 3.36 | 2.05 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.05 | ) | — | (0.26 | ) | (0.06 | ) | (0.20 | ) | |||||||||||
Return of capital | (0.05 | ) | — | — | — | — | ||||||||||||||
Total distributions | (0.10 | ) | — | (0.26 | ) | (0.06 | ) | (0.20 | ) | |||||||||||
Net asset value at end of year | $ | 45.25 | $ | 36.16 | $ | 40.37 | $ | 32.44 | $ | 29.14 | ||||||||||
Market price at end of year(b) | $ | 45.22 | $ | 36.16 | $ | 40.36 | $ | 32.45 | $ | 29.06 | ||||||||||
Net Asset Value Total Return(c) | 25.46 | % | (10.43 | )% | 25.29 | % | 11.52 | % | 7.59 | % | ||||||||||
Market Price Total Return(c) | 25.38 | % | (10.41 | )% | 25.22 | % | 11.86 | % | 7.34 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 131,217 | $ | 182,623 | $ | 64,588 | $ | 53,525 | $ | 32,053 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.60 | % | 0.60 | % | 0.60 | % | 0.64 | % | 0.65 | % | ||||||||||
Expenses, prior to Waivers | 0.72 | % | 0.70 | % | 0.77 | % | 0.80 | % | 0.89 | % | ||||||||||
Net investment income (loss), after Waivers | 0.17 | % | (0.03 | )% | 0.46 | % | 0.13 | % | 0.63 | % | ||||||||||
Portfolio turnover rate(d) | 147 | % | 159 | % | 157 | % | 263 | % | 95 | % |
(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, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 25.12 | $ | 22.51 | $ | 22.49 | $ | 19.82 | $ | 16.69 | ||||||||||
Net investment income(a) | 0.65 | 0.64 | 0.57 | 0.47 | 0.45 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.71 | 2.60 | (0.01 | ) | 2.68 | 3.14 | ||||||||||||||
Total from investment operations | 3.36 | 3.24 | 0.56 | 3.15 | 3.59 | |||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.98 | ) | (0.63 | ) | (0.54 | ) | (0.48 | ) | (0.46 | ) | ||||||||||
Net asset value at end of year | $ | 27.50 | $ | 25.12 | $ | 22.51 | $ | 22.49 | $ | 19.82 | ||||||||||
Market price at end of year(b) | $ | 27.51 | $ | 25.10 | $ | 22.50 | $ | 22.47 | $ | 19.79 | ||||||||||
Net Asset Value Total Return(c) | 13.65 | % | 14.86 | % | 2.48 | % | 16.27 | % | 21.90 | % | ||||||||||
Market Price Total Return(c) | 13.78 | % | 14.81 | % | 2.53 | % | 16.35 | % | 21.94 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 137,476 | $ | 200,953 | $ | 34,893 | $ | 41,601 | $ | 42,604 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.60 | % | 0.60 | % | 0.60 | % | 0.63 | % | 0.63 | % | ||||||||||
Expenses, prior to Waivers | 0.71 | % | 0.74 | % | 0.80 | % | 0.77 | % | 0.81 | % | ||||||||||
Net investment income, after Waivers | 2.46 | % | 2.74 | % | 2.49 | % | 2.31 | % | 2.54 | % | ||||||||||
Portfolio turnover rate(d) | 54 | % | 91 | % | 47 | % | 131 | % | 48 | % |
(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, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 76.48 | $ | 72.28 | $ | 61.62 | $ | 46.09 | $ | 41.08 | ||||||||||
Net investment income (loss)(a) | (0.22 | ) | (0.16 | ) | (0.21 | ) | (0.27 | ) | (0.01 | ) | ||||||||||
Net realized and unrealized gain on investments | 22.88 | 4.36 | 10.87 | 15.80 | 5.04 | |||||||||||||||
Total from investment operations | 22.66 | 4.20 | 10.66 | 15.53 | 5.03 | |||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | — | — | — | — | (0.02 | ) | ||||||||||||||
Net asset value at end of year | $ | 99.14 | $ | 76.48 | $ | 72.28 | $ | 61.62 | $ | 46.09 | ||||||||||
Market price at end of year(b) | $ | 99.17 | $ | 76.44 | $ | 72.26 | $ | 61.51 | $ | 46.08 | ||||||||||
Net Asset Value Total Return(c) | 29.63 | % | 5.81 | % | 17.30 | % | 33.70 | % | 12.26 | % | ||||||||||
Market Price Total Return(c) | 29.73 | % | 5.79 | % | 17.48 | % | 33.48 | % | 12.23 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 351,939 | $ | 279,152 | $ | 216,851 | $ | 289,628 | $ | 64,525 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses | 0.60 | % | 0.60 | % | 0.60 | % | 0.60 | % | 0.60 | % | ||||||||||
Net investment income (loss) | (0.26 | )% | (0.21 | )% | (0.31 | )% | (0.42 | )% | (0.02 | )% | ||||||||||
Portfolio turnover rate(d) | 14 | % | 27 | % | 31 | % | 21 | % | 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.
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PowerShares Exchange-Traded Fund Trust
April 30, 2017
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, 2017, 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 The NASDAQ Stock Market LLC. Prior to December 7, 2016, Shares of each Fund (except for NASDAQ Internet Portfolio) were 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 | |
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 following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.
Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 946, Financial Services—Investment Companies.
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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 Mid-Capitalization Company Risk. Investing in securities of small- and mid-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 mid-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 accounting principles generally accepted in the United States of America (“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 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”), any Trustee who is not an affiliate of the Adviser or Distributor (or any of their affiliates) and who is otherwise an “interested person” of the Trust under the 1940 Act (an “Unaffiliated Trustee”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees and any Unaffiliated Trustee, 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. Accounting Estimates
The preparation of the financial statements in accordance with 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.
I. Securities Lending
During the fiscal year ended April 30, 2017, DWA Basic Materials Momentum Portfolio, DWA Consumer Cyclicals Momentum Portfolio, DWA Consumer Staples 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 generally 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, 2018. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2018. 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, 2019, 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, 2017, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:
DWA Basic Materials Momentum Portfolio | $ | 125,530 | ||
DWA Consumer Cyclicals Momentum Portfolio | 115,326 | |||
DWA Consumer Staples Momentum Portfolio | 215,185 | |||
DWA Energy Momentum Portfolio | 184,863 | |||
DWA Financial Momentum Portfolio | 92,176 | |||
DWA Healthcare Momentum Portfolio | 124,992 | |||
DWA Industrials Momentum Portfolio | 47,287 | |||
DWA Technology Momentum Portfolio | 181,049 | |||
DWA Utilities Momentum Portfolio | 166,005 | |||
NASDAQ Internet Portfolio | 116 |
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, 2017 are as follows:
Total Potential Recapture Amounts | Potential Recapture Amounts Expiring | |||||||||||||||
4/30/18 | 4/30/19 | 4/30/20 | ||||||||||||||
DWA Basic Materials Momentum Portfolio | $ | 271,955 | $ | 82,414 | $ | 64,234 | $ | 125,307 | ||||||||
DWA Consumer Cyclicals Momentum Portfolio | 445,718 | 127,393 | 203,205 | 115,120 | ||||||||||||
DWA Consumer Staples Momentum Portfolio | 545,016 | 101,972 | 228,313 | 214,731 | ||||||||||||
DWA Energy Momentum Portfolio | 673,958 | 290,036 | 199,340 | 184,582 | ||||||||||||
DWA Financial Momentum Portfolio | 264,505 | 94,203 | 78,303 | 91,999 | ||||||||||||
DWA Healthcare Momentum Portfolio | 406,146 | 88,576 | 192,773 | 124,797 | ||||||||||||
DWA Industrials Momentum Portfolio | 145,345 | 48,372 | 49,864 | 47,109 | ||||||||||||
DWA Technology Momentum Portfolio | 457,067 | 104,492 | 171,801 | 180,774 | ||||||||||||
DWA Utilities Momentum Portfolio | 339,669 | 83,252 | 90,675 | 165,742 |
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 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, 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. 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, 2017, 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 | $ | 69,340,972 | $ | — | $ | 14,948 | $ | 69,355,920 | ||||||||
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Note 5. Distributions to Shareholders and Tax Components of Net Assets
Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended April 30, 2017 and 2016:
2017 | 2016 | |||||||||||||||
Ordinary Income | Return of Capital | Ordinary Income | Return of Capital | |||||||||||||
DWA Basic Materials Momentum Portfolio | $ | 1,284,408 | $ | — | $ | 869,950 | $ | — | ||||||||
DWA Consumer Cyclicals Momentum Portfolio | 418,318 | — | 507,462 | — | ||||||||||||
DWA Consumer Staples Momentum Portfolio | 3,477,597 | — | 1,309,748 | — | ||||||||||||
DWA Energy Momentum Portfolio | 693,416 | 214,044 | 2,409,629 | — | ||||||||||||
DWA Financial Momentum Portfolio | 1,505,911 | — | 414,019 | — | ||||||||||||
DWA Industrials Momentum Portfolio | 553,696 | — | 525,854 | — | ||||||||||||
DWA Technology Momentum Portfolio | 172,973 | 192,217 | — | — | ||||||||||||
DWA Utilities Momentum Portfolio | 3,999,102 | — | 1,178,184 | — |
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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 | $ | 8,666 | $ | (18,032 | ) | $ | 7,238,568 | $ | (31,303,679 | ) | $ | (3,707,125 | ) | $ | 129,050,449 | $ | 101,268,847 | |||||||||||
DWA Consumer Cyclicals Momentum Portfolio | — | (16,636 | ) | 3,462,066 | (44,126,062 | ) | (1,954,529 | ) | 71,471,661 | 28,836,500 | ||||||||||||||||||
DWA Consumer Staples Momentum Portfolio | — | (17,913 | ) | 6,442,211 | (39,230,930 | ) | (3,571,856 | ) | 113,569,901 | 77,191,413 | ||||||||||||||||||
DWA Energy Momentum Portfolio | — | (20,542 | ) | (9,712,766 | ) | (115,467,608 | ) | (17,108,170 | ) | 255,040,126 | 112,731,040 | |||||||||||||||||
DWA Financial Momentum Portfolio | — | (15,674 | ) | 383,409 | (13,035,410 | ) | (1,717,137 | ) | 100,241,421 | 85,856,609 | ||||||||||||||||||
DWA Healthcare Momentum Portfolio** | — | (19,957 | ) | 9,016,797 | (87,454,852 | ) | (5,326,638 | ) | 147,063,588 | 63,278,938 | ||||||||||||||||||
DWA Industrials Momentum Portfolio | 28,849 | (18,252 | ) | 10,156,767 | (59,031,297 | ) | (3,488,465 | ) | 183,021,719 | 130,669,321 | ||||||||||||||||||
DWA Technology Momentum Portfolio | — | (17,440 | ) | 17,581,734 | (62,372,312 | ) | (11,128,052 | ) | 187,152,727 | 131,216,657 | ||||||||||||||||||
DWA Utilities Momentum Portfolio | 319,705 | (17,199 | ) | 2,396,314 | (16,584,266 | ) | (420,934 | ) | 151,781,962 | 137,475,582 | ||||||||||||||||||
NASDAQ Internet Portfolio** | — | — | 54,899,318 | (13,809,358 | ) | (4,491,189 | ) | 315,340,365 | 351,939,136 |
* | 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 and NASDAQ Internet Portfolio incurred and will elect to defer Late-Year Ordinary Losses of $115,166 and $267,316, and Post-October Capital Losses of $5,211,472 and $4,223,873, 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, 2017:
Post-effective/ no expiration | ||||||||||||||||||||||||
2018 | 2019 | Short-Term | Long-Term | Total* | Expired | |||||||||||||||||||
DWA Basic Materials Momentum Portfolio | $ | 4,534,904 | $ | 2,521,492 | $ | 21,732,766 | $ | 2,514,517 | $ | 31,303,679 | $ | 3,783,798 | ||||||||||||
DWA Consumer Cyclicals Momentum Portfolio | — | 2,042,056 | 41,681,282 | 402,724 | 44,126,062 | 1,993,654 | ||||||||||||||||||
DWA Consumer Staples Momentum Portfolio | 3,935,363 | 1,180,566 | 33,738,969 | 376,032 | 39,230,930 | 2,156,980 | ||||||||||||||||||
DWA Energy Momentum Portfolio | 3,914,682 | 1,167,692 | 96,476,790 | 13,908,444 | 115,467,608 | 2,869,667 | ||||||||||||||||||
DWA Financial Momentum Portfolio | 4,413,894 | 1,979,006 | 6,365,897 | 276,613 | 13,035,410 | 1,821,971 | ||||||||||||||||||
DWA Healthcare Momentum Portfolio | 18,737,951 | 2,739,963 | 65,976,938 | — | 87,454,852 | 17,890,879 | ||||||||||||||||||
DWA Industrials Momentum Portfolio | 21,245,288 | 2,746,746 | 34,870,158 | 169,105 | 59,031,297 | 6,525,387 | ||||||||||||||||||
DWA Technology Momentum Portfolio | 7,658,564 | 3,016,840 | 51,533,698 | 163,210 | 62,372,312 | 8,220,697 | ||||||||||||||||||
DWA Utilities Momentum Portfolio | 5,885,935 | 874,386 | 8,310,646 | 1,513,299 | 16,584,266 | 1,366,073 | ||||||||||||||||||
NASDAQ Internet Portfolio | 3,360 | 74,863 | 6,210,819 | 7,520,316 | 13,809,358 | — |
* | 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 6. Investment Transactions
For the fiscal year ended April 30, 2017, 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 | $ | 206,660,505 | $ | 210,012,707 | ||||
DWA Consumer Cyclicals Momentum Portfolio | 55,231,001 | 57,501,049 | ||||||
DWA Consumer Staples Momentum Portfolio | 210,405,382 | 214,955,092 | ||||||
DWA Energy Momentum Portfolio | 187,532,631 | 189,017,073 | ||||||
DWA Financial Momentum Portfolio | 120,323,339 | 118,686,295 | ||||||
DWA Healthcare Momentum Portfolio | 125,992,777 | 125,663,616 | ||||||
DWA Industrials Momentum Portfolio | 114,273,021 | 112,341,230 | ||||||
DWA Technology Momentum Portfolio | 236,367,972 | 235,354,170 | ||||||
DWA Utilities Momentum Portfolio | 79,301,318 | 79,819,520 | ||||||
NASDAQ Internet Portfolio | 41,730,918 | 43,282,956 |
For the fiscal year ended April 30, 2017, in-kind transactions associated with creations and redemptions were as follows:
Cost of Securities Received | Value of Securities Delivered | |||||||
DWA Basic Materials Momentum Portfolio | $ | 168,863,501 | $ | 248,829,144 | ||||
DWA Consumer Cyclicals Momentum Portfolio | 19,233,920 | 81,807,329 | ||||||
DWA Consumer Staples Momentum Portfolio | 79,220,188 | 294,325,720 | ||||||
DWA Energy Momentum Portfolio | 213,222,133 | 207,389,343 | ||||||
DWA Financial Momentum Portfolio | 132,910,144 | 79,485,857 | ||||||
DWA Healthcare Momentum Portfolio | 69,196,140 | 96,354,313 | ||||||
DWA Industrials Momentum Portfolio | 158,201,611 | 87,093,970 | ||||||
DWA Technology Momentum Portfolio | 105,448,816 | 191,031,690 | ||||||
DWA Utilities Momentum Portfolio | 181,211,891 | 249,902,527 | ||||||
NASDAQ Internet Portfolio | 84,814,875 | 86,945,235 |
Gains (losses) on in-kind transactions are generally not considered taxable gains (losses) for federal income tax purposes.
At April 30, 2017, 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 | $ | 11,453,640 | $ | (4,215,072 | ) | $ | 7,238,568 | $ | 94,108,622 | |||||||
DWA Consumer Cyclicals Momentum Portfolio | 3,676,293 | (214,227 | ) | 3,462,066 | 26,660,307 | |||||||||||
DWA Consumer Staples Momentum Portfolio | 7,324,815 | (882,604 | ) | 6,442,211 | 73,580,616 | |||||||||||
DWA Energy Momentum Portfolio | 1,045,582 | (10,758,348 | ) | (9,712,766 | ) | 130,463,261 | ||||||||||
DWA Financial Momentum Portfolio | 2,107,058 | (1,723,649 | ) | 383,409 | 85,530,845 | |||||||||||
DWA Healthcare Momentum Portfolio | 10,356,033 | (1,339,236 | ) | 9,016,797 | 60,339,123 | |||||||||||
DWA Industrials Momentum Portfolio | 10,596,960 | (440,193 | ) | 10,156,767 | 120,576,080 | |||||||||||
DWA Technology Momentum Portfolio | 18,850,591 | (1,268,857 | ) | 17,581,734 | 120,729,539 | |||||||||||
DWA Utilities Momentum Portfolio | 2,955,611 | (559,297 | ) | 2,396,314 | 135,006,882 | |||||||||||
NASDAQ Internet Portfolio | 76,452,493 | (21,553,175 | ) | 54,899,318 | 311,651,997 |
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Note 7. Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of in-kind transactions and expired capital loss carryforwards, 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, 2017, the reclassifications were as follows:
Undistributed Net Investment Income (Loss) | Undistributed Net Realized Gain (Loss) | Shares of Beneficial Interest | ||||||||||
DWA Basic Materials Momentum Portfolio | $ | — | $ | (25,596,488 | ) | $ | 25,596,488 | |||||
DWA Consumer Cyclicals Momentum Portfolio | 2,430 | (669,988 | ) | 667,558 | ||||||||
DWA Consumer Staples Momentum Portfolio | 248,178 | (15,520,290 | ) | 15,272,112 | ||||||||
DWA Energy Momentum Portfolio | — | (27,116,488 | ) | 27,116,488 | ||||||||
DWA Financial Momentum Portfolio | 528,902 | (3,035,094 | ) | 2,506,192 | ||||||||
DWA Healthcare Momentum Portfolio | 325,380 | 2,161,149 | (2,486,529 | ) | ||||||||
DWA Industrials Momentum Portfolio | — | (3,866,342 | ) | 3,866,342 | ||||||||
DWA Technology Momentum Portfolio | — | (25,318,838 | ) | 25,318,838 | ||||||||
DWA Utilities Momentum Portfolio | — | (14,006,029 | ) | 14,006,029 | ||||||||
NASDAQ Internet Portfolio | 298,338 | (24,255,212 | ) | 23,956,874 |
Note 8. Trustees’ and Officer’s Fees
Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to the Independent Trustees, any Unaffiliated Trustee, 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, each Independent Trustee or Unaffiliated 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 9. 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.
Certain transaction fees may be charged by the Funds for creations and redemptions, which are treated as increases in capital.
Transactions in each Fund’s Shares are disclosed in detail in the Statements of Changes in Net Assets.
Note 10. Indemnifications
Under the Trust’s organizational documents, its officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. Each Independent Trustee and Unaffiliated Trustee is also indemnified against certain liabilities arising out of the performance of his duties to the Trust pursuant to an Indemnification Agreement between such 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 of PowerShares Exchange-Traded Fund Trust and Shareholders 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:
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”) as of April 30, 2017, 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 as of April 30, 2017 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Chicago, IL
June 23, 2017
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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, 2017.
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, 2016 | Ending Account Value April 30, 2017 | 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 | $ | 1,122.40 | 0.60 | % | $ | 3.16 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.82 | 0.60 | 3.01 | ||||||||||||
PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ) | ||||||||||||||||
Actual | 1,000.00 | 1,096.10 | 0.60 | 3.12 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.82 | 0.60 | 3.01 | ||||||||||||
PowerShares DWA Consumer Staples Momentum Portfolio (PSL) | ||||||||||||||||
Actual | 1,000.00 | 1,093.50 | 0.60 | 3.11 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.82 | 0.60 | 3.01 | ||||||||||||
PowerShares DWA Energy Momentum Portfolio (PXI) | ||||||||||||||||
Actual | 1,000.00 | 945.10 | 0.60 | 2.89 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.82 | 0.60 | 3.01 | ||||||||||||
PowerShares DWA Financial Momentum Portfolio (PFI) | ||||||||||||||||
Actual | 1,000.00 | 1,049.90 | 0.60 | 3.05 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.82 | 0.60 | 3.01 | ||||||||||||
PowerShares DWA Healthcare Momentum Portfolio (PTH) | ||||||||||||||||
Actual | 1,000.00 | 1,230.00 | 0.60 | 3.32 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.82 | 0.60 | 3.01 |
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Fees and Expenses (continued)
Beginning Account Value November 1, 2016 | Ending Account Value April 30, 2017 | 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 | $ | 1,129.60 | 0.60 | % | $ | 3.17 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.82 | 0.60 | 3.01 | ||||||||||||
PowerShares DWA Technology Momentum Portfolio (PTF) | ||||||||||||||||
Actual | 1,000.00 | 1,150.50 | 0.60 | 3.20 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.82 | 0.60 | 3.01 | ||||||||||||
PowerShares DWA Utilities Momentum Portfolio (PUI) | ||||||||||||||||
Actual | 1,000.00 | 1,096.50 | 0.60 | 3.12 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.82 | 0.60 | 3.01 | ||||||||||||
PowerShares NASDAQ Internet Portfolio (PNQI) | ||||||||||||||||
Actual | 1,000.00 | 1,142.00 | 0.60 | 3.19 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.82 | 0.60 | 3.01 |
(1) | Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six-month period ended April 30, 2017. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 181/365. 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, 2017:
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 | 64 | % | 61 | % | ||||||
PowerShares DWA Healthcare Momentum Portfolio | 0 | % | 0 | % | ||||||
PowerShares DWA Industrials Momentum Portfolio | 100 | % | 100 | % | ||||||
PowerShares DWA Technology Momentum Portfolio | 100 | % | 100 | % | ||||||
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 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 (as defined below) overseen by each Independent Trustee and the other directorships, if any, held by an Independent Trustee are shown below.
The information is current as of April 30, 2017.
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). | 135 | 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. | 135 | 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; 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). | 135 | 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- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 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). | 135 | 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). | 135 | 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); President and Chief Executive Officer, Stone Pillar Investments, Ltd. (2016-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). | 135 | 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- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser. |
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Trustees and Officers (continued)
The Unaffiliated Trustee, his term of office and length of time served, his principal business occupations during at least the past five years, the number of portfolios in the Fund Complex (as defined below) overseen by the Unaffiliated Trustee and the other directorships, if any, held by the Unaffiliated Trustee, are shown below.
The information is current as of April 30, 2017.
Name, Address and Year of Birth of Unaffiliated Trustee | 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 Unaffiliated Trustee | Other Directorships Held by Unaffiliated Trustee 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). | 135 | None |
* | This is the date the Unaffiliated Trustee began serving the Trust. The Unaffiliated Trustee serves an indefinite term, until his successor is elected. |
** | Effective May 18, 2016, Mr. Nussbaum became an Unaffiliated Trustee. |
*** | Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 portfolios advised by the Adviser. |
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Trustees and Officers (continued)
The Interested Trustee 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 (as defined below) overseen by the Interested Trustees and the other directorships, if any, held by the Interested Trustee are shown below.
The information is current as of April 30, 2017.
Name, Address and Year of Birth of Interested Trustee | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex** Overseen by Interested Trustee | Other Directorships Held by Interested Trustee 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 Holding Company (US), Inc., Invesco Finance, Inc., Invesco Group Services, Inc., Invesco North American Holdings, Inc. and INVESCO Asset Management (Bermuda) Ltd.; Executive Vice President, Invesco Investments (Bermuda) Ltd., Manager, Horizon Flight Works LLC; Director and Secretary, Invesco Services (Bahamas) Private Limited; formerly, Director and Chairman, INVESCO Funds Group, Inc., Senior Vice President, Secretary and General Counsel, Invesco Advisers, Inc. (2003-2006); Director, Invesco Investments (Bermuda) Ltd. (2008-2016); 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. | 135 | None |
* | This is the date the Interested Trustee began serving the Trust. The Interested Trustee serves an indefinite term, until his successor is elected. |
** | Fund Complex includes all open- and closed-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser that is an affiliated person of the Adviser. At April 30, 2017, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 82 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 and Principal 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). | |||
Adam Henkel—1980 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chief Compliance Officer | Since 2017 | Chief Compliance Officer of Invesco PowerShares Capital Management LLC (2017-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 and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2017-Present); formerly, Senior Counsel, Invesco, Ltd. (2013-2017); and Assistant Vice President, U.S. Bancorp Fund Services, LLC (2010-2013). | |||
Steven M. Hill—1964 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Vice President and Treasurer | Since 2012 | 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). |
* | This is the date the Officer 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 and Principal Executive Officer, The Invesco Funds (2016-Present); Treasurer, The Invesco Funds (2008-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 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); Manager and Assistant Secretary, Invesco Indexing LLC (2017-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.) (2011-Present); 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 date the Officer 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 11, 2017, 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 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 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, (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 the Funds.
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. (“Invesco”), 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, 2016, 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 Invesco’s Global Performance Measurement and Risk Group, an independent organization within Invesco, with respect to general expected tracking error ranges and various explanations for any tracking error. The Trustees noted that for each applicable
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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)
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.
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 contractual advisory fee, net advisory fee, and gross and net expense ratio. The Trustees also compared each Fund’s contractual advisory fee and net expense ratio to information compiled by the Adviser from Lipper Inc. databases on the net 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 contractual 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 (The net advisory fees, after giving effect to the Expense Caps as defined below, was -0.01% for PowerShares Russell 2000 Pure Growth 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 as defined below, were -0.06%, -0.19% and -0.62%, 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 contractual 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, 2018, 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; |
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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)
● | 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 |
● | 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 contractual advisory fees for certain Funds were equal to or lower than the median net advisory fees of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the contractual advisory fees for all of the Funds were lower than the median net 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 AchieversTM Portfolio | X | |||||||||
PowerShares CleantechTM Portfolio | X | |||||||||
PowerShares Dividend AchieversTM Portfolio | 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 |
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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 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 | ||||
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 | ||||
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 | X | ||||
PowerShares Global Listed Private Equity Portfolio | N/A | X | ||||
PowerShares Golden Dragon China Portfolio | X | N/A | X | |||
PowerShares High Yield Equity Dividend AchieversTM Portfolio | X | |||||
PowerShares International Dividend AchieversTM Portfolio | X | N/A | 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 contractual 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 AchieversTM Portfolio | X | |||||||||
PowerShares CleantechTM Portfolio | X | |||||||||
PowerShares Dividend AchieversTM 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 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 | 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 | |||||
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 | X | |||
PowerShares Russell Midcap Pure Growth Portfolio | 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 AchieversTM Portfolio | X | X | ||||
PowerShares International Dividend AchieversTM Portfolio | N/A | 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 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 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. |
In response to questions from the Independent Trustees, the Adviser provided supplemental information regarding each of PowerShares Dynamic Energy Exploration & Production Portfolio, PowerShares Dynamic Large Cap Growth Portfolio, PowerShares Global Listed Private Equity Portfolio and PowerShares Russell Top 200 Pure Growth Portfolio’s advisory fees and total expenses and the Lipper peer data. The Adviser explained in detail its view that it believes that the advisory fees and total expenses for these Funds are competitive and generally in line with other comparable funds in the marketplace, noting, in particular, the unique underlying investment strategy and complexity of each Fund, the limited number of peers in the Lipper data, and/or the differing pricing philosophy of certain of the peers.
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 the Funds, 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 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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Board Considerations Regarding Continuation of Investment Advisory Agreement
At a meeting held on April 11, 2017, 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, (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 the Funds.
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. (“Invesco”), 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 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, 2016, 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 the Funds and their underlying indexes. In reviewing the tracking error reports, the Trustees considered information provided by Invesco’s Global Performance Measurement and Risk Group, an independent organization within Invesco, 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.
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, open-end index peer funds and open-end actively-managed peer funds. The Trustees noted that each Fund’s advisory fee was reasonable because of the 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 fees, the Trustees also considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement 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.
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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.powershares.com.
P-PS-AR-3 | ||||||
©2017 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | ||||||
powershares.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, 2017.
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”), the Registrant’s independent registered public accounting firm, billed the Registrant aggregate fees for services rendered to the Registrant for the last two fiscal years shown in the following table. The Audit Committee pre-approved all audit and non-audit services provided to the Registrant.
Fees Billed by PwC for Services Rendered to the Registrant for fiscal year end 2017 | Fees Billed by PwC for Registrant for fiscal year end 2016 | |||
Audit Fees | $ 723,925 | $ 755,425 | ||
Audit-Related Fees | $ 0 | $ 0 | ||
Tax Fees(1) | $ 371,160 | $ 420,560 | ||
All Other Fees | $ 0 | $ 0 | ||
Total Fees | $ 1,095,085 | $ 1,175,985 |
(1) Tax fees for the fiscal year ended April 30, 2017 include fees billed for reviewing tax returns, 2016 excise tax returns and excise tax distributions calculations. Tax fees for the fiscal year ended April 30, 2016 included fees billed for reviewing tax returns, 2015 excise tax returns and excise tax distribution calculations.
Fees Billed by PwC Related to PowerShares and PowerShares Affiliates
PwC billed Invesco 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 shown in the following table:
Fees Billed for Non-Audit Services Rendered to PowerShares and Affiliates for fiscal year end 2017 That Were Required to be Pre-Approved by the Registrant’s Audit Committee | Fees Billed for Non-Audit Services Rendered to PowerShares and Affiliates for fiscal year end 2016 That Were Required to be Pre-Approved by the Registrant’s Audit Committee | |||
Audit-Related Fees | $ 635,000 | $ 634,963 | ||
Tax Fees | $ 0 | $ 0 | ||
All Other Fees | $ 2,827,000 | $ 3,750,000 | ||
Total Fees(1) | $ 3,462,000 | $ 4,384,963 |
(1) | Audit-Related fees for the year end 2017 include fees billed related reviewing controls at a service organization. Audit-Related fees for the year end 2016 include fees billed related to reviewing controls at a service organization. |
All other fees for the year end 2017 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 September 29, 2016
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.
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. |
(e)(2) | There were no amounts that were pre-approved by the Audit Committee pursuant to the de minimus exception under Rule 2-01 of Regulation S-X. |
(f) | Not applicable. |
(g) | In addition to the amounts shown in the tables above, PwC billed PowerShares and Affiliates additional aggregate fees of $2,112,000 for the fiscal year ended 2017 and $4,775,000 for the fiscal year ended 2016, for non-audit services not required to be pre-approved by the Registrant’s Audit Committee. In total, PwC billed the Registrant, PowerShares and Affiliates aggregate non-audit fees of $5,945,000 for the fiscal year ended 2017 and $8,581,000 for the fiscal year ended 2016. |
(h) | With respect to the non-audit services above billed to PowerShares and Affiliates that were not required to be pre-approved by the Registrant’s Audit Committee, the Audit Committee received information from PwC about such services, including by way of comparison, that PwC provided audit services to entities within the Investment Company Complex, as defined by Rule 2-01(f)(14) of Regulation S-X, of approximately $22 million and non-audit services of approximately $16 million for the fiscal year ended 2017. The Audit Committee considered this information in evaluating PwC’s independence. |
PwC informed the Audit Committee that it has 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. The Trust is required under various securities laws to have its financial statements audited by an independent accounting firm.
The Loan Rule specifically provides that an accounting firm would not be independent if it receives, or certain of its affiliates or covered persons receive, a loan from a lender that is a record or beneficial owner of more than ten percent of an audit client’s equity securities (referred to as a “more than ten percent owner”). For purposes of the Loan Rule, audit clients include the Funds as well as all registered investment companies advised by the Adviser and its affiliates, including other subsidiaries of the Adviser’s parent company, Invesco Ltd. (collectively, the Invesco Fund Complex). PwC informed the Audit Committee that it has, and that certain of its affiliates or covered persons have, relationships with lenders who hold, as record owner, more than ten percent of the shares of certain funds within the Invesco Fund Complex. These relationships call into question PwC’s independence under the Loan Rule with respect to those funds, as well as all other funds in the Invesco Fund Complex, which may implicate the Loan Rule.
On June 20, 2016, the SEC Staff issued a “no-action” letter to another mutual fund complex (see Fidelity Management & Research Company et al., No-Action Letter) related to the audit independence issue described above. In that letter, the SEC confirmed that it would not recommend 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.
In an August 18, 2016 letter, and in subsequent communications, PwC affirmed to the Audit Committee that, as of the date of the letter and the subsequent communications, respectively, PwC is an independent accountant with respect to the Trust, within the meaning of PCAOB Rule 3520. In its letter and in its subsequent communications, PwC also informed the Audit Committee that, after evaluating the facts and circumstances and the applicable independence rules, PwC has concluded that with regard to its compliance with the independence criteria set forth in the rules and regulations of the SEC related to the Loan Rule, it believes that it remains objective and impartial despite matters that may ultimately be determined to be inconsistent with these criteria and therefore it can continue to serve as the Trust’s registered public accounting firm. PWC has advised the Audit Committee that this conclusion is based in part on the following considerations: (1) the lenders to PwC have no influence over any Fund, or other entity within the Invesco Fund Complex, or its investment adviser; (2) none of the officers or trustees of the Invesco Fund Complex whose shares are owned by PwC lenders are associated with those lenders; (3) PwC understands that the shares held by PwC lenders are held for the benefit of and on behalf of its policy owners/end investors; (4) investments in funds such as the Invesco Fund Complex funds are passive; (5) the PwC lenders are part of various syndicates of unrelated lenders; (6) there have been no changes to the loans in question since the origination of each respective note; (7) the debts are in good standing and no lender has the right to take action against PwC, as borrower, in connection with the financings; (8) the debt balances with each lender are immaterial to PwC and to each lender; and (9) the PwC audit engagement team has no involvement in PwC’s treasury function and PwC’s treasury function has no oversight of or ability to influence the PwC audit engagement team. In addition, PwC has communicated that the lending relationships appear to be consistent with the lending relationships described in the no-action letter and that they are not aware of other relationships that would be implicated by the Loan Rule. In addition to relying on PwC’s August 18, 2016 letter and subsequent communications regarding its independence, the Trust intends to rely upon the no-action letter.
If in the future the independence of PwC is called into question under the Loan Rule by circumstances that are not addressed in the SEC’s no-action letter, the Fund may need to take
other action in order for the Fund’s filings with the SEC containing financial statements to be deemed compliant with applicable securities laws. Such additional actions could result in additional costs, impair the ability of the Funds to issue new shares or have other material adverse effects on the Funds. In addition, the SEC has indicated that the no-action relief will expire 18 months from its issuance after which the Funds will no longer be able rely on the letter unless it’s term is extended or made permanent by the SEC Staff.
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 Rule 30a-2(a) under the Investment Company Act of 1940 and 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 Rule 30a-2(b) under the Investment Company Act of 1940 and 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: 7/5/2017 |
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: 7/5/2017 |
By: | /s/ Steven Hill |
Name: | Steven Hill | |
Title: | Treasurer | |
Date: 7/5/2017 |