2010 Annual Report to Shareholders

2010 Annual Report to Shareholders
October 31, 2010
PowerShares DWA Developed Markets Technical Leaders Portfolio
PowerShares DWA Emerging Markets Technical Leaders Portfolio
PowerShares Dynamic Developed International Opportunities Portfolio
PowerShares Emerging Markets Infrastructure Portfolio
PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio
PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio
PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio
PowerShares FTSE RAFI Emerging Markets Portfolio
PowerShares FTSE RAFI Europe Portfolio
PowerShares FTSE RAFI Japan Portfolio
PowerShares Global Agriculture Portfolio
PowerShares Global Biotech Portfolio
PowerShares Global Clean Energy Portfolio
PowerShares Global Coal Portfolio
PowerShares Global Gold and Precious Metals Portfolio
PowerShares Global Nuclear Energy Portfolio
PowerShares Global Progressive Transportation Portfolio
PowerShares Global Steel Portfolio
PowerShares Global Water Portfolio
PowerShares Global Wind Energy Portfolio
PowerShares MENA Frontier Countries Portfolio
Table of Contents
The Market Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manager’s Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Frequency Distribution of Discounts & Premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fees and Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Schedules of Investments
PowerShares DWA Developed Markets Technical Leaders Portfolio . . . . . . . . . . . . . . . . .
PowerShares DWA Emerging Markets Technical Leaders Portfolio . . . . . . . . . . . . . . . . . .
PowerShares Dynamic Developed International Opportunities Portfolio . . . . . . . . . . . . . .
PowerShares Emerging Markets Infrastructure Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . .
PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . .
PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio . . . . . . . . . . . . . . . . . . . . .
PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio . . . . . . . . . . . .
PowerShares FTSE RAFI Emerging Markets Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PowerShares FTSE RAFI Europe Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PowerShares FTSE RAFI Japan Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PowerShares Global Agriculture Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PowerShares Global Biotech Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PowerShares Global Clean Energy Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PowerShares Global Coal Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PowerShares Global Gold and Precious Metals Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . .
PowerShares Global Nuclear Energy Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PowerShares Global Progressive Transportation Portfolio . . . . . . . . . . . . . . . . . . . . . . . . .
PowerShares Global Steel Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PowerShares Global Water Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PowerShares Global Wind Energy Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PowerShares MENA Frontier Countries Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Statements of Assets and Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Statements of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Statements of Changes in Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Report of Independent Registered Public Accounting Firm . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trustees and Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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The Market Environment
For the year ended October 31, 2010, the global economic situation saw continued improvement. U.S.
and international developed markets rallied, peaking in April before declining to fiscal year lows in late
June and early July. Markets subsequently rallied between July and October, returning to near April highs.
The S&P 500® Index and MSCI EAFE Index ended the fiscal year up 16.54% and 8.36%, respectively.
Emerging market equities followed a similar pattern, but had a stronger rally between July and October,
with the MSCI Emerging Markets IndexSM at its highest level since 2008. The MSCI Emerging Markets
IndexSM ended the fiscal year up 23.56%. Volatility continued to decline on a year-over-year basis with the
CBOE Volatility Index® (VIX®) dropping to an average of 23.17% for the fiscal year. Fixed income
markets moved higher for the fiscal year with the Barclays Aggregate Bond Index ending up 8.01%.
3
Manager’s Analysis
PowerShares DWA Developed Markets Technical Leaders Portfolio (ticker: PIZ)
The PowerShares DWA Developed Markets Technical Leaders Portfolio (the “Fund”) seeks investment
results that correspond (before fees and expenses) generally to the price and yield performance of the
index called the Dorsey Wright® Developed Markets Technical Leaders Index (the “Index”).
For the fiscal year ended October 31, 2010, the Fund returned 21.82%. Over this same year, the Index
returned 23.70%, while the MSCI EAFE Index returned 8.36%, the MSCI EAFE Growth Index returned
12.12% and the S&P 500® Index returned 16.54%. The Fund benefited from positive performance in
materials, industrials and consumer staples sectors.
Sector Breakdown (% of the Fund’s
Top Ten Fund Holdings (% of the Fund’s
Net Assets) as of October 31, 2010
Net Assets) as of October 31, 2010
Consumer Discretionary
19.1
Security
Financials
18.8
Genting Singapore PLC
3.4
Materials
17.9
Ivanhoe Mines Ltd.
2.8
Industrials
16.2
Infineon Technologies AG
2.5
Energy
9.1
Silver Wheaton Corp.
2.3
Consumer Staples
7.8
Domtar Corp.
2.0
Information Technology
5.5
Yangzijiang Shipbuilding Holdings Ltd.
1.8
Health Care
3.1
Petrofac Ltd.
1.8
Telecommunication Services
1.8
Rhodia SA
1.7
Utilities
0.7
Kazakhmys PLC
1.6
Other
0.0
Challenger Financial Services Group Ltd.
Total
Style Allocation (% of the Fund’s Total
Investments) as of October 31, 2010
Large-Cap Growth
4
41.4
Large-Cap Value
26.2
Mid-Cap Value
18.5
Mid-Cap Growth
13.1
Small-Cap Value
0.8
1.4
21.3
Manager’s Analysis (Continued)
PowerShares DWA Developed Markets Technical Leaders Portfolio (ticker: PIZ)
Growth of a $10,000 Investment Since Inception†
PowerShares DWA Developed Markets Technical Leaders Portfolio
Dorsey Wright® Developed Markets Technical Leaders Index
MSCI EAFE Index
MSCI EAFE Growth Index
S&P 500® Index
Fund Performance History (%)
Index
Fund
MSCI EAFE Index
10/31/2010
09/30/2010
08/31/2010
07/31/2010
06/30/2010
05/31/2010
As of October 31, 2010
Avg Ann††
1 Year
Dorsey Wright® Developed Markets Technical Leaders Index
04/30/2010
03/31/2010
02/28/2010
01/31/2010
12/31/2009
11/30/2009
10/31/2009
09/30/2009
08/31/2009
07/31/2009
06/30/2009
05/31/2009
04/30/2009
03/31/2009
02/28/2009
01/31/2009
12/31/2008
11/30/2008
10/31/2008
09/30/2008
08/31/2008
07/31/2008
06/30/2008
05/31/2008
04/30/2008
03/31/2008
02/29/2008
12/31/2007
01/31/2008
12/28/2007
$10,000
$8,972
$8,624
$8,595
$7,970
$7,814
Fund Inception
Avg Ann††
Cumulative
23.70
-3.74
-10.28
8.36
-8.34
-21.86
MSCI EAFE Growth Index
12.12
-7.69
-20.30
S&P 500® Index
16.54
-5.20
-14.05
Net Asset Value (“NAV”) Return
21.82
-5.07
-13.76
Share Price Return
24.88
-5.12
-13.88
Fund Inception: December 28, 2007
Data quoted represents past performance. Past performance is not a guarantee of future results and current
performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate
and shares, when redeemed, may be worth more or less than their original cost. According to the Fund’s current
prospectus, the expense ratio of 0.80% is expressed as a unitary fee to cover operating expenses and expenses incurred
in connection with managing the portfolio. NAV and Share Price returns assume that dividends and capital gain
distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table
above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or
sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not
represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or
brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In
addition, the 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 MSCI EAFE Index, MSCI EAFE Growth Index and S&P 500® Index (the “Benchmark Indices”) are unmanaged
indices used as a measurement of change in stock market conditions based on the average performance of
approximately 961, 589 and 500 common stocks, respectively.
†
Fund and Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on
the closest month-end to the Fund’s inception date.
††
Average annualized.
5
Manager’s Analysis
PowerShares DWA Emerging Markets Technical Leaders Portfolio (ticker: PIE)
The PowerShares DWA Emerging Markets Technical Leaders Portfolio (the “Fund”) seeks investment
results that correspond (before fees and expenses) generally to the price and yield performance of the
index called the Dorsey Wright® Emerging Markets Technical Leaders Index (the “Index”).
For the fiscal year ended October 31, 2010, the Fund returned 35.43%. Over this same year, the Index
returned 39.87%, while the MSCI Emerging Markets IndexSM returned 23.56%, the MSCI Emerging
Markets Growth Index returned 25.17% and the S&P 500® Index returned 16.54%. The Fund benefited
from positive performance in materials, consumer staples and financials sectors.
Sector Breakdown (% of the Fund’s
Top Ten Fund Holdings (% of the Fund’s
Net Assets) as of October 31, 2010
Net Assets) as of October 31, 2010
Materials
20.1
Security
Financials
19.8
JG Summit Holdings, Inc.
3.9
Industrials
19.8
Nine Dragons Paper Holdings Ltd.
3.3
Consumer Staples
13.5
Consumer Discretionary
12.3
China National Building Material
Co. Ltd., H-Shares
2.3
5.0
Charoen Pokphand Foods PCL
2.3
Utilities
2.8
Credicorp Ltd.
1.9
Information Technology
2.6
Vivo Participacoes SA ADR
1.8
Health Care
2.3
Mechel ADR
1.8
Telecommunication Services
1.8
Weichai Power Co. Ltd., H-Shares
1.8
Money Market Fund
0.0
Samsung Engineering Co. Ltd.
1.6
Other
(0.0)
Aspen Pharmacare Holdings Ltd.
Energy
Total
Style Allocation (% of the Fund’s Total
Investments) as of October 31, 2010
6
Large-Cap Growth
38.6
Mid-Cap Growth
19.3
Mid-Cap Value
18.3
Large-Cap Value
13.8
Small-Cap Growth
5.8
Small-Cap Value
4.2
1.6
22.3
Manager’s Analysis (Continued)
PowerShares DWA Emerging Markets Technical Leaders Portfolio (ticker: PIE)
Growth of a $10,000 Investment Since Inception†
PowerShares DWA Emerging Markets Technical Leaders Portfolio
Dorsey Wright® Emerging Markets Technical Leaders Index
MSCI Emerging Markets IndexSM
MSCI Emerging Markets Growth Index
S&P 500® Index
Fund Performance History (%)
Index
10/31/2010
09/30/2010
08/31/2010
07/31/2010
06/30/2010
05/31/2010
As of October 31, 2010
Avg Ann††
1 Year
Fund
04/30/2010
03/31/2010
02/28/2010
01/31/2010
12/31/2009
11/30/2009
10/31/2009
09/30/2009
08/31/2009
07/31/2009
06/30/2009
05/31/2009
04/30/2009
03/31/2009
02/28/2009
01/31/2009
12/31/2008
11/30/2008
10/31/2008
09/30/2008
08/31/2008
07/31/2008
06/30/2008
05/31/2008
04/30/2008
03/31/2008
02/29/2008
01/31/2008
12/28/2007
12/31/2007
$10,000
$9,494
$8,926
$8,885
$8,595
$7,220
Fund Inception
Avg Ann††
Cumulative
Dorsey Wright® Emerging Markets Technical Leaders Index
39.87
-4.07
-11.15
MSCI Emerging Markets IndexSM
23.56
-1.82
-5.06
MSCI Emerging Markets Growth Index
25.17
-3.93
-10.74
S&P 500® Index
16.54
-5.20
-14.05
Net Asset Value (“NAV”) Return
35.43
-10.82
-27.80
Share Price Return
37.62
-10.85
-27.87
Fund Inception: December 28, 2007
Data quoted represents past performance. Past performance is not a guarantee of future results and current
performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate
and shares, when redeemed, may be worth more or less than their original cost. According to the Fund’s current
prospectus, the expense ratio of 0.90% is expressed as a unitary fee to cover operating expenses and expenses incurred
in connection with managing the portfolio. NAV and Share Price returns assume that dividends and capital gain
distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table
above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or
sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not
represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or
brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In
addition, the 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 MSCI Emerging Markets IndexSM and MSCI Emerging Markets Growth Index (the “Benchmark Indices”) are
unmanaged indices used as a measurement of change in stock market conditions based on the average performance of
approximately 754 and 90 common stocks, respectively.
†
Fund and Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on
the closest month-end to the Fund’s inception date.
††
Average annualized.
7
Manager’s Analysis
PowerShares Dynamic Developed International Opportunities Portfolio (ticker: PFA)
The PowerShares Dynamic Developed International Opportunities Portfolio (the “Fund”) seeks
investment results that correspond (before fees and expenses) generally to the price and yield performance
of the equity index called the QSG Developed International Opportunities Index (the “Index”).
For the fiscal year ended October 31, 2010, the Fund returned 11.33%. Over this same year, the Index
returned 12.29%, while the MSCI EAFE Index returned 8.36% and the S&P500® Index returned
16.54%. The Fund benefited from positive performance in materials, industrials and energy sectors.
Sector Breakdown (% of the Fund’s
Top Ten Fund Holdings (% of the Fund’s
Net Assets) as of October 31, 2010
Net Assets) as of October 31, 2010
Financials
24.6
Security
Consumer Discretionary
22.0
Lanxess AG
0.5
Industrials
18.5
Arkema SA
0.5
Materials
14.8
Western Coal Corp.
0.5
Telecommunication Services
5.2
BinckBank NV
0.5
Information Technology
3.6
Rhodia SA
0.5
Health Care
3.3
Soho China Ltd.
0.5
Utilities
3.1
Volkswagen AG
0.5
Energy
2.4
Bekaert SA
0.5
Consumer Staples
2.4
Valeo SA
0.5
Other
0.1
Axel Springer AG
0.5
Total
5.0
Style Allocation (% of the Fund’s Total
Investments) as of October 31, 2010
8
Mid-Cap Value
32.5
Large-Cap Value
30.7
Mid-Cap Growth
15.2
Large-Cap Growth
9.1
Small-Cap Value
8.0
Small-Cap Growth
4.5
Manager’s Analysis (Continued)
PowerShares Dynamic Developed International Opportunities Portfolio (ticker: PFA)
Growth of a $10,000 Investment Since Inception†
$10,000
$8,337
$7,853
$7,704
$7,269
PowerShares Dynamic Developed International Opportunities Portfolio
QSG Developed International Opportunities Index
MSCI EAFE Index
Fund Performance History (%)
Index
Fund
10/31/2010
09/30/2010
08/31/2010
07/31/2010
06/30/2010
05/31/2010
04/30/2010
03/31/2010
02/28/2010
As of October 31, 2010
Avg Ann††
1 Year
3 Year
QSG Developed International Opportunities Index
01/31/2010
12/31/2009
11/30/2009
10/31/2009
09/30/2009
08/31/2009
07/31/2009
06/30/2009
05/31/2009
04/30/2009
03/31/2009
02/28/2009
01/31/2009
12/31/2008
11/30/2008
10/31/2008
09/30/2008
08/31/2008
07/31/2008
06/30/2008
05/31/2008
04/30/2008
03/31/2008
02/29/2008
01/31/2008
12/31/2007
11/30/2007
10/31/2007
09/30/2007
08/31/2007
07/31/2007
06/30/2007
05/31/2007
06/13/2007
S&P 500® Index
Fund Inception
Avg Ann††
Cumulative
12.29
-10.95
-7.42
-22.96
8.36
-9.60
-6.83
-21.47
S&P 500® Index
16.54
-6.48
-5.19
-16.63
Net Asset Value (“NAV”) Return
11.33
-12.48
-9.00
-27.31
Share Price Return
12.51
-13.08
-9.49
-28.65
MSCI EAFE Index
Fund Inception: June 13, 2007
Data quoted represents past performance. Past performance is not a guarantee of future results and current
performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate
and shares, when redeemed, may be worth more or less than their original cost. According to the Fund’s current
prospectus, the expense ratio of 0.75% is expressed as a unitary fee to cover operating expenses and expenses incurred
in connection with managing the portfolio. NAV and Share Price returns assume that dividends and capital gain
distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table
above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or
sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not
represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or
brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In
addition, the 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 MSCI EAFE Index and S&P 500® Index (the “Benchmark Indices”) are unmanaged indices used as a measurement
of change in stock market conditions based on the average performance of approximately 961 and 500 common
stocks, respectively.
†
Fund and Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on
the closest month-end to the Fund’s inception date.
††
Average annualized.
9
Manager’s Analysis
PowerShares Emerging Markets Infrastructure Portfolio (ticker: PXR)
The PowerShares Emerging Markets Infrastructure Portfolio (the “Fund”) seeks investment results that
correspond (before fees and expenses) generally to the price and yield performance of the index called the
S-Network Emerging Infrastructure Builders IndexSM (the “Index”).
For the fiscal year ended October 31, 2010, the Fund returned 26.23%. Over this same year, the Index
returned 25.41%, while the MSCI Emerging Markets IndexSM returned 23.56%, the MSCI EAFE Index
returned 8.36% and the S&P 500® Index returned 16.54%. The Fund benefited from positive
performance in information technology, consumer discretionary and health care sectors. Fund
performance was positive within each sector for the reporting period.
Sector Breakdown (% of the Fund’s
Top Ten Fund Holdings (% of the Fund’s
Net Assets) as of October 31, 2010
Net Assets) as of October 31, 2010
Industrials
57.7
Security
Materials
39.6
Vale SA ADR
3.9
1.9
Vinci SA
3.8
Consumer Discretionary
0.6
Money Market Fund
0.1
Shanghai Electric Group Co. Ltd.,
H-Shares
3.8
0.1
Caterpillar, Inc.
3.7
Utilities
Other
10
ABB Ltd. ADR
3.4
Larsen & Toubro Ltd. GDR
3.3
Style Allocation (% of the Fund’s Total
Dongfang Electric Corp. Ltd., H-Shares
3.1
Investments) as of October 31, 2010
Lonking Holdings Ltd.
3.0
Mid-Cap Value
27.5
Large-Cap Value
25.9
Large-Cap Growth
22.2
Mid-Cap Growth
11.9
Small-Cap Growth
8.5
Small-Cap Value
4.0
Wilson Bayly Holmes-Ovcon Ltd.
2.4
KBR, Inc.
2.2
Total
32.6
Manager’s Analysis (Continued)
PowerShares Emerging Markets Infrastructure Portfolio (ticker: PXR)
Growth of a $10,000 Investment Since Inception†
$24,325
$23,160
PowerShares Emerging Markets Infrastructure Portfolio
S-Network Emerging Infrastructure Builders IndexSM
MSCI Emerging Markets IndexSM
$20,280
MSCI EAFE Index
S&P 500® Index
$13,839
$12,796
Fund Performance History (%)
Index
10/31/2010
09/30/2010
08/31/2010
07/31/2010
As of October 31, 2010
Avg Ann††
1 Year
Fund Inception
Avg Ann††
Cumulative
S-Network Emerging Infrastructure Builders IndexSM
25.41
54.57
143.25
MSCI Emerging Markets IndexSM
23.56
42.41
102.80
8.36
17.64
38.39
S&P 500 Index
16.54
13.12
27.96
Net Asset Value (“NAV”) Return
26.23
50.90
131.60
Share Price Return
25.98
42.90
107.24
MSCI EAFE Index
®
Fund
06/30/2010
05/31/2010
04/30/2010
03/31/2010
02/28/2010
01/31/2010
12/31/2009
10/31/2009
11/30/2009
09/30/2009
08/31/2009
07/31/2009
06/30/2009
05/31/2009
04/30/2009
03/31/2009
02/28/2009
01/31/2009
12/31/2008
11/30/2008
10/31/2008
10/16/2008
$10,000
Fund Inception: October 16, 2008
Data quoted represents past performance. Past performance is not a guarantee of future results and current
performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate
and shares, when redeemed, may be worth more or less than their original cost. According to the Fund’s current
prospectus, the expense ratio of 0.75% is expressed as a unitary fee to cover operating expenses and expenses incurred
in connection with managing the portfolio. NAV and Share Price returns assume that dividends and capital gain
distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table
above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or
sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not
represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or
brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In
addition, the 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 MSCI Emerging Markets IndexSM, MSCI EAFE Index and S&P 500® Index (the “Benchmark Indices”) are
unmanaged indices used as a measurement of change in stock market conditions based on the average performance of
approximately 754, 961 and 500 common stocks, respectively.
†
Fund and Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on
the closest month-end to the Fund’s inception date.
††
Average annualized.
11
Manager’s Analysis
PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio (ticker: PAF)
The PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio (the “Fund”) seeks investment results that
correspond (before fees and expenses) generally to the price and yield performance of the equity index called
the FTSE RAFI Developed Asia Pacific ex Japan Index (the “Index”).
For the fiscal year ended October 31, 2010, the Fund returned 18.37%. Over this same year, the Index
returned 18.16%, while the MSCI Pacific ex-Japan Index returned 16.16%, the MSCI EAFE Index
returned 8.36% and the S&P 500® Index returned 16.54%. During the reporting period, the fund
experienced tracking error outside the range recommended by the Advisor due to the use of fair value
pricing. The performance difference between the fund and index remained relatively small. The Fund
benefited from positive performance of securities of issuers located in Australia, Hong Kong, South Korea
and Singapore.
Sector Breakdown (% of the Fund’s
Top Ten Fund Holdings (% of the Fund’s
Net Assets) as of October 31, 2010
Net Assets) as of October 31, 2010
Financials
33.8
Security
Industrials
17.4
BHP Billiton Ltd.
5.8
Materials
17.0
Samsung Electronics Co. Ltd.
4.8
Consumer Discretionary
7.8
National Australia Bank Ltd.
3.5
Information Technology
7.0
Commonwealth Bank of Australia
3.1
Consumer Staples
5.3
Telecommunication Services
4.6
Australia & New Zealand Banking
Group Ltd.
3.0
Energy
3.6
Rio Tinto Ltd.
2.9
Utilities
3.0
SK Holdings Co. Ltd.
2.6
Health Care
0.5
Westpac Banking Corp.
2.5
Money Market Fund
0.1
Hutchison Whampoa Ltd.
2.3
(0.1)
Hyundai Motor Co.
2.3
Other
Total
Style Allocation (% of the Fund’s Total
Investments) as of October 31, 2010
12
Large-Cap Value
65.8
Large-Cap Growth
24.6
Mid-Cap Value
6.4
Mid-Cap Growth
2.5
Small-Cap Value
0.7
32.8
Manager’s Analysis (Continued)
PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio (ticker: PAF)
Growth of a $10,000 Investment Since Inception†
$11,957
$11,592
$10,560
$10,000
$8,477
$7,844
PowerShares FTSE RAFI Asia Pacific ex Japan Portfolio
FTSE RAFI Developed Asia Pacific ex Japan Index
MSCI Pacific ex Japan Index
MSCI EAFE Index
Fund Performance History (%)
Index
10/31/2010
09/30/2010
08/31/2010
07/31/2010
06/30/2010
05/31/2010
04/30/2010
03/31/2010
02/28/2010
As of October 31, 2010
Avg Ann††
1 Year
3 Year
Fund Inception
Avg Ann††
Cumulative
FTSE RAFI Developed Asia Pacific ex Japan Index
18.16
-1.92
5.48
19.57
MSCI Pacific ex Japan Index
16.16
-4.67
1.65
5.60
8.36
-9.60
-7.03
-21.56
S&P 500 Index
16.54
-6.48
-4.83
-15.23
Net Asset Value (“NAV”) Return
18.37
-2.88
4.51
15.92
Share Price Return
19.59
-3.42
4.78
16.94
MSCI EAFE Index
®
Fund
01/31/2010
12/31/2009
11/30/2009
10/31/2009
09/30/2009
08/31/2009
07/31/2009
06/30/2009
05/31/2009
04/30/2009
03/31/2009
02/28/2009
01/31/2009
12/31/2008
11/30/2008
10/31/2008
09/30/2008
08/31/2008
07/31/2008
06/30/2008
05/31/2008
04/30/2008
02/29/2008
03/31/2008
01/31/2008
12/31/2007
11/30/2007
10/31/2007
09/30/2007
08/31/2007
06/30/2007
07/31/2007
06/25/2007
S&P 500® Index
Fund Inception: June 25, 2007
Data quoted represents past performance. Past performance is not a guarantee of future results and current
performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate
and shares, when redeemed, may be worth more or less than their original cost. According to the Fund’s current
prospectus, the expense ratio of 0.80% is expressed as a unitary fee to cover operating expenses and expenses incurred
in connection with managing the portfolio. NAV and Share Price returns assume that dividends and capital gain
distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table
above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or
sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not
represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or
brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In
addition, the 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 MSCI Pacific ex-Japan Index, MSCI EAFE Index and S&P 500® Index (the “Benchmark Indices”) are unmanaged
indices used as a measurement of change in stock market conditions based on the average performance of
approximately 146, 961 and 500 common stocks, respectively.
†
Fund and Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on
the closest month-end to the Fund’s inception date.
††
Average annualized.
13
Manager’s Analysis
PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio (ticker: PXF)
The PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio (the “Fund”) seeks investment results
that correspond (before fees and expenses) generally to the price and yield performance of the equity
index called the FTSE RAFI Developed ex-U.S. Index (the “Index”).
For the fiscal year ended October 31, 2010, the Fund returned 6.37%. Over this same year, the Index
returned 7.58%, while the MSCI EAFE Index returned 8.36%. The Fund benefited from positive
performance of securities of issuers located in the United Kingdom, Germany, Canada and Australia.
Sector Breakdown (% of the Fund’s
Top Ten Fund Holdings (% of the Fund’s
Net Assets) as of October 31, 2010
Net Assets) as of October 31, 2010
Financials
28.0
Security
Industrials
11.7
ING Groep NV CVA
Consumer Discretionary
11.7
Vodafone Group PLC
1.7
Materials
9.9
Royal Dutch Shell PLC, Class A
1.5
Energy
9.8
BP PLC
1.5
Telecommunication Services
7.8
Total SA
1.4
Consumer Staples
7.2
HSBC Holdings PLC
1.4
Utilities
5.5
Daimler AG
1.3
Health Care
4.4
Banco Santander SA
1.2
Information Technology
4.0
Royal Dutch Shell PLC, Class B
1.1
Other
0.0
Telefonica SA
Total
Style Allocation (% of the Fund’s Total
Investments) as of October 31, 2010
14
1.8
Large-Cap Value
57.2
Large-Cap Growth
30.6
Mid-Cap Value
7.2
Mid-Cap Growth
4.3
Small-Cap Value
0.4
Small-Cap Growth
0.3
0.9
13.8
Manager’s Analysis (Continued)
PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio (ticker: PXF)
Growth of a $10,000 Investment Since Inception†
$10,000
$8,687
$8,347
$7,844
PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio
FTSE RAFI Developed ex U.S. Index
Fund Performance History (%)
10/31/2010
09/30/2010
08/31/2010
07/31/2010
06/30/2010
05/31/2010
04/30/2010
03/31/2010
02/28/2010
01/31/2010
12/31/2009
11/30/2009
10/31/2009
09/30/2009
08/31/2009
07/31/2009
06/30/2009
05/31/2009
04/30/2009
03/31/2009
02/28/2009
01/31/2009
12/31/2008
11/30/2008
10/31/2008
09/30/2008
08/31/2008
07/31/2008
06/30/2008
05/31/2008
04/30/2008
02/29/2008
03/31/2008
01/31/2008
12/31/2007
11/30/2007
10/31/2007
09/30/2007
08/31/2007
06/30/2007
07/31/2007
06/25/2007
MSCI EAFE Index
As of October 31, 2010
Index
Fund Inception
Avg Ann††
Cumulative
FTSE RAFI Developed ex-U.S. Index
7.58
-7.06
-4.11
-13.13
MSCI EAFE Index
8.36
-9.60
-7.03
-21.56
Fund
Avg Ann††
1 Year
3 Year
Net Asset Value (“NAV”) Return
6.37
-8.08
-5.25
-16.53
Share Price Return
8.55
-7.99
-4.96
-15.66
Fund Inception: June 25, 2007
Data quoted represents past performance. Past performance is not a guarantee of future results and current
performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate
and shares, when redeemed, may be worth more or less than their original cost. According to the Fund’s current
prospectus, the expense ratio of 0.75% is expressed as a unitary fee to cover operating expenses and expenses incurred
in connection with managing the portfolio. NAV and Share Price returns assume that dividends and capital gain
distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table
above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or
sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not
represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or
brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In
addition, the 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 MSCI EAFE Index (the “Benchmark Index”) is an unmanaged index used as a measurement of change in stock
market conditions based on the average performance of approximately 961 common stocks.
†
Fund and Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on
the closest month-end to the Fund’s inception date.
††
Average annualized.
15
Manager’s Analysis
PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio (ticker: PDN)
The PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio (the “Fund”) seeks
investment results that correspond (before fees and expenses) generally to the price and yield performance
of the index called the FTSE RAFI Developed ex-U.S. Mid Small 1500 Index (the “Index”).
For the fiscal year ended October 31, 2010, the Fund returned 12.93%. Over this same year, the Index
returned 13.67%, while the MSCI EAFE Small Cap Index returned 14.23%, the MSCI EAFE Index
returned 8.36% and the S&P 500® Index returned 16.54%. The Fund benefited from positive
performance in Canada, United Kingdom, South Korea and Hong Kong.
Sector Breakdown (% of the Fund’s
Top Ten Fund Holdings (% of the Fund’s
Net Assets) as of October 31, 2010
Net Assets) as of October 31, 2010
Industrials
26.2
Security
Financials
19.7
Valeant Pharmaceuticals International, Inc.
0.6
Consumer Discretionary
18.2
Immofinanz AG
0.4
Materials
12.0
OC Oerlikon Corp. AG
0.3
Consumer Staples
7.1
IMI PLC
0.3
Information Technology
6.8
Hanjin Shipping Holdings Co. Ltd.
0.3
Health Care
4.2
Heidelberger Druckmaschinen AG
0.2
Energy
3.8
Trelleborg AB, Class B
0.2
Utilities
1.2
Weir Group PLC (The)
0.2
Telecommunication Services
0.6
Rhodia SA
0.2
Money Market Fund
0.0
Panalpina Welttransport Holding AG
0.2
Other
0.2
Total
2.9
Style Allocation (% of the Fund’s Total
Investments) as of October 31, 2010
16
Mid-Cap Value
35.0
Mid-Cap Growth
21.8
Small-Cap Growth
17.4
Small-Cap Value
16.7
Large-Cap Growth
5.3
Large-Cap Value
3.8
Manager’s Analysis (Continued)
PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio (ticker: PDN)
Growth of a $10,000 Investment Since Inception†
$10,000
$9,993
$9,650
$8,391
$8,309
$7,677
PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio
FTSE RAFI Developed ex US Mid Small 1500 Index
MSCI EAFE Small Cap Index
MSCI EAFE Index
Fund Performance History (%)
Index
10/31/2010
09/30/2010
08/31/2010
07/31/2010
06/30/2010
05/31/2010
04/30/2010
03/31/2010
As of October 31, 2010
Avg Ann††
1 Year
3 Year
Fund Inception
Avg Ann††
Cumulative
FTSE RAFI Developed ex US Mid Small 1500 Index
13.67
-1.62
-0.02
-0.07
MSCI EAFE Small Cap Index
14.23
-7.56
-5.53
-16.09
8.36
-9.60
-8.22
-23.23
S&P 500 Index
16.54
-6.48
-5.83
-16.91
Net Asset Value (“NAV”) Return
12.93
-2.81
-1.15
-3.50
Share Price Return
15.40
-2.61
-1.14
-3.50
MSCI EAFE Index
®
Fund
02/28/2010
01/31/2010
12/31/2009
10/31/2009
11/30/2009
09/30/2009
08/31/2009
07/31/2009
06/30/2009
05/31/2009
04/30/2009
03/31/2009
02/28/2009
01/31/2009
12/31/2008
11/30/2008
10/31/2008
09/30/2008
08/31/2008
07/31/2008
06/30/2008
05/31/2008
04/30/2008
02/29/2008
03/31/2008
01/31/2008
12/31/2007
11/30/2007
09/30/2007
10/31/2007
09/27/2007
S&P 500® Index
Fund Inception: September 27, 2007
Data quoted represents past performance. Past performance is not a guarantee of future results and current
performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate
and shares, when redeemed, may be worth more or less than their original cost. According to the Fund’s current
prospectus, the expense ratio of 0.75% is expressed as a unitary fee to cover operating expenses and expenses incurred
in connection with managing the portfolio. NAV and Share Price returns assume that dividends and capital gain
distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table
above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or
sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not
represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or
brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In
addition, the 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 MSCI EAFE Small Cap Index, MSCI EAFE Index and S&P 500® Index (the “Benchmark Indices”) are unmanaged
indices used as a measurement of change in stock market conditions based on the average performance of
approximately 2,251, 961 and 500 common stocks, respectively.
†
Fund and Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on
the closest month-end to the Fund’s inception date.
††
Average annualized.
17
Manager’s Analysis
PowerShares FTSE RAFI Emerging Markets Portfolio (ticker: PXH)
The PowerShares FTSE RAFI Emerging Markets Portfolio (the “Fund”) seeks investment results that
correspond (before fees and expenses) generally to the price and yield performance of the index called the
FTSE RAFI Emerging Index (the “Index”).
For the fiscal year ended October 31, 2010, the Fund returned 20.94%. Over this same year, the Index
returned 23.08%, while the MSCI Emerging Markets IndexSM returned 23.56%, the MSCI EAFE Index
returned 8.36% and the S&P 500® Index returned 16.54%. During the reporting period, the fund
experienced tracking error outside the range recommended by the Advisor due to the use of fair value
pricing. The performance difference between the fund and index was predominantly due to the use of
ADRs in place of local securities in the following foreign markets: Brazil, South Korea, Taiwan, Malaysia,
Russia and India.
Sector Breakdown (% of the Fund’s
Top Ten Fund Holdings (% of the Fund’s
Net Assets) as of October 31, 2010
Net Assets) as of October 31, 2010
Energy
27.9
Security
Financials
27.5
PetroChina Co. Ltd., H-Shares
8.4
Materials
12.5
China Petroleum & Chemical Corp.
(Sinopec), H-Shares
3.9
Industrial & Commercial Bank of
China Ltd., H-Shares
3.3
Bank of China Ltd., H-Shares
2.9
Gazprom OAO ADR
2.7
America Movil SAB de CV, Series L
2.2
Itau Unibanco Holding SA
2.2
LUKOIL OAO ADR
2.2
Telecommunication Services
9.4
Information Technology
7.8
Industrials
6.2
Consumer Staples
3.3
Utilities
3.2
Consumer Discretionary
2.1
Money Market Fund
0.1
Other
0.0
Style Allocation (% of the Fund’s Total
Investments) as of October 31, 2010
18
Large-Cap Value
51.6
Large-Cap Growth
39.2
Mid-Cap Value
7.0
Mid-Cap Growth
2.0
Small-Cap Growth
0.1
Small-Cap Value
0.1
Banco Bradesco SA
1.8
Surgutneftegas OJSC ADR
1.8
Total
31.4
Manager’s Analysis (Continued)
PowerShares FTSE RAFI Emerging Markets Portfolio (ticker: PXH)
Growth of a $10,000 Investment Since Inception†
$10,989
$10,076
$10,000
$9,839
$8,309
$7,677
PowerShares FTSE RAFI Emerging Markets Portfolio
FTSE RAFI Emerging Index
MSCI Emerging Markets IndexSM
MSCI EAFE Index
Fund Performance History (%)
Index
10/31/2010
09/30/2010
08/31/2010
07/31/2010
06/30/2010
05/31/2010
04/30/2010
03/31/2010
As of October 31, 2010
Avg Ann††
1 Year
3 Year
Fund Inception
Avg Ann††
Cumulative
FTSE RAFI Emerging Index
23.08
-1.06
3.10
9.89
MSCI Emerging Markets IndexSM
23.56
-3.98
-0.52
-1.61
8.36
-9.60
-8.22
-23.23
S&P 500 Index
16.54
-6.48
-5.83
-16.91
Net Asset Value (“NAV”) Return
20.94
-2.69
0.24
0.76
Share Price Return
22.43
-2.81
-0.11
-0.35
MSCI EAFE Index
®
Fund
02/28/2010
01/31/2010
12/31/2009
10/31/2009
11/30/2009
09/30/2009
08/31/2009
07/31/2009
06/30/2009
05/31/2009
04/30/2009
03/31/2009
02/28/2009
01/31/2009
12/31/2008
11/30/2008
10/31/2008
09/30/2008
08/31/2008
07/31/2008
06/30/2008
05/31/2008
04/30/2008
02/29/2008
03/31/2008
01/31/2008
12/31/2007
11/30/2007
09/30/2007
10/31/2007
09/27/2007
S&P 500® Index
Fund Inception: September 27, 2007
Data quoted represents past performance. Past performance is not a guarantee of future results and current
performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate
and shares, when redeemed, may be worth more or less than their original cost. According to the Fund’s current
prospectus, the expense ratio of 0.85% is expressed as a unitary fee to cover operating expenses and expenses incurred
in connection with managing the portfolio. NAV and Share Price returns assume that dividends and capital gain
distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table
above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or
sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not
represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or
brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In
addition, the 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 MSCI Emerging Markets IndexSM, MSCI EAFE Index and S&P 500® Index (the “Benchmark Indices”) are
unmanaged indices used as a measurement of change in stock market conditions based on the average performance of
approximately 754, 961 and 500 common stocks, respectively.
†
Fund and Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on
the closest month-end to the Fund’s inception date.
††
Average annualized.
19
Manager’s Analysis
PowerShares FTSE RAFI Europe Portfolio (ticker: PEF)
The PowerShares FTSE RAFI Europe Portfolio (the “Fund”) seeks investment results that correspond
(before fees and expenses) generally to the price and yield performance of the equity index called the FTSE
RAFI Europe Index (the “Index”).
For the fiscal year ended October 31, 2010, the Fund returned 4.14%. Over this same year, the Index
returned 5.30%, while the MSCI Europe IndexSM returned 8.33%, the MSCI EAFE Index returned 8.36%
and the S&P 500® Index returned 16.54%. The Fund benefited from positive performance of securities of
issuers located in the United Kingdom, Germany, Sweden and Switzerland.
Sector Breakdown (% of the Fund’s
Top Ten Fund Holdings (% of the Fund’s
Net Assets) as of October 31, 2010
Net Assets) as of October 31, 2010
Financials
28.9
Security
Energy
11.7
ING Groep NV CVA
Consumer Discretionary
10.5
Vodafone Group PLC
2.6
9.5
Royal Dutch Shell PLC, Class A
2.2
Telecommunication Services
9.2
BP PLC
2.2
Materials
9.0
Total SA
2.1
Consumer Staples
8.1
HSBC Holdings PLC
2.0
Utilities
5.9
Daimler AG
1.9
Health Care
5.5
Banco Santander SA
1.7
Information Technology
1.6
Royal Dutch Shell PLC, Class B
1.7
Other
0.1
Telefonica SA
Industrials
Total
Style Allocation (% of the Fund’s Total
Investments) as of October 31, 2010
20
2.7
Large-Cap Value
56.4
Large-Cap Growth
30.4
Mid-Cap Value
8.0
Mid-Cap Growth
4.5
Small-Cap Growth
0.4
Small-Cap Value
0.3
1.3
20.4
Manager’s Analysis (Continued)
PowerShares FTSE RAFI Europe Portfolio (ticker: PEF)
Growth of a $10,000 Investment Since Inception†
$10,000
$8,477
$8,095
$7,855
$7,844
$7,639
PowerShares FTSE RAFI Europe Portfolio
FTSE RAFI Europe Index
MSCI Europe IndexSM
MSCI EAFE Index
Fund Performance History (%)
Index
10/31/2010
09/30/2010
08/31/2010
07/31/2010
06/30/2010
05/31/2010
04/30/2010
03/31/2010
As of October 31, 2010
Avg Ann††
1 Year
3 Year
Fund Inception
Avg Ann††
Cumulative
FTSE RAFI Europe Index
5.30
-9.13
-6.11
-19.05
MSCI Europe IndexSM
8.33
-10.46
-7.76
-23.61
MSCI EAFE Index
8.36
-9.60
-7.03
-21.56
16.54
-6.48
-4.83
-15.23
Net Asset Value (“NAV”) Return
4.14
-10.53
-6.95
-21.45
Share Price Return
5.17
-10.70
-6.56
-20.33
S&P 500 Index
®
Fund
02/28/2010
01/31/2010
12/31/2009
11/30/2009
10/31/2009
09/30/2009
08/31/2009
07/31/2009
06/30/2009
05/31/2009
04/30/2009
03/31/2009
02/28/2009
01/31/2009
12/31/2008
11/30/2008
10/31/2008
09/30/2008
08/31/2008
07/31/2008
06/30/2008
05/31/2008
04/30/2008
02/29/2008
03/31/2008
01/31/2008
12/31/2007
11/30/2007
10/31/2007
09/30/2007
08/31/2007
06/30/2007
07/31/2007
06/25/2007
S&P 500® Index
Fund Inception: June 25, 2007
Data quoted represents past performance. Past performance is not a guarantee of future results and current
performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate
and shares, when redeemed, may be worth more or less than their original cost. According to the Fund’s current
prospectus, the expense ratio of 0.75% is expressed as a unitary fee to cover operating expenses and expenses incurred
in connection with managing the portfolio. NAV and Share Price returns assume that dividends and capital gain
distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table
above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or
sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not
represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or
brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In
addition, the 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 MSCI Europe IndexSM, MSCI EAFE Index and S&P 500® Index (the “Benchmark Indices”) are unmanaged indices
used as a measurement of change in stock market conditions based on the average performance of approximately 467,
961 and 500 common stocks, respectively.
†
Fund and Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on
the closest month-end to the Fund’s inception date.
††
Average annualized.
21
Manager’s Analysis
PowerShares FTSE RAFI Japan Portfolio (ticker: PJO)
The PowerShares FTSE RAFI Japan Portfolio (the “Fund”) seeks investment results that correspond
(before fees and expenses) generally to the price and yield of the FTSE RAFI Japan Index (the “Index”).
For the fiscal year ended October 31, 2010, the Fund returned 7.27%. Over this same year, the Index
returned 6.57%, while the MSCI Japan Index returned 4.78% and the MSCI EAFE Index returned
8.36%. During the reporting period, the fund experienced tracking error outside the range recommended
by the Advisor due to the use of fair value pricing. The performance difference between the fund and
index remained relatively small. The Fund benefited from positive performance in industrials,
information technology, consumer discretionary and telecommunication services.
Sector Breakdown (% of the Fund’s
Top Ten Fund Holdings (% of the Fund’s
Net Assets) as of October 31, 2010
Net Assets) as of October 31, 2010
Consumer Discretionary
23.7
Security
Industrials
20.0
Toyota Motor Corp.
5.4
Information Technology
13.6
Mitsubishi UFJ Financial Group, Inc.
2.7
Financials
13.0
Canon, Inc.
2.6
Materials
8.6
Honda Motor Co. Ltd.
2.5
Utilities
7.2
Panasonic Corp.
2.4
Telecommunication Services
5.4
Nissan Motor Co. Ltd.
2.2
Consumer Staples
4.4
Hitachi Ltd.
2.2
Health Care
3.0
Sony Corp.
2.1
Energy
0.9
Nippon Telegraph & Telephone Corp.
2.1
Other
0.2
Sumitomo Mitsui Financial Group, Inc.
2.0
Total
Style Allocation (% of the Fund’s Total
Investments) as of October 31, 2010
22
Large-Cap Value
56.1
Large-Cap Growth
35.6
Mid-Cap Growth
5.0
Mid-Cap Value
3.3
26.2
Manager’s Analysis (Continued)
PowerShares FTSE RAFI Japan Portfolio (ticker: PJO)
Growth of a $10,000 Investment Since Inception†
$10,000
$8,202
$7,924
$7,844
$7,358
PowerShares FTSE RAFI Japan Portfolio
FTSE RAFI Japan Index
MSCI Japan Index
Fund Performance History (%)
Index
10/31/2010
09/30/2010
08/31/2010
07/31/2010
06/30/2010
05/31/2010
04/30/2010
03/31/2010
02/28/2010
As of October 31, 2010
Avg Ann††
1 Year
3 Year
Fund
01/31/2010
12/31/2009
11/30/2009
10/31/2009
09/30/2009
08/31/2009
07/31/2009
06/30/2009
05/31/2009
04/30/2009
03/31/2009
02/28/2009
01/31/2009
12/31/2008
11/30/2008
10/31/2008
09/30/2008
08/31/2008
07/31/2008
06/30/2008
05/31/2008
04/30/2008
02/29/2008
03/31/2008
01/31/2008
12/31/2007
11/30/2007
10/31/2007
09/30/2007
08/31/2007
06/30/2007
07/31/2007
06/25/2007
MSCI EAFE Index
Fund Inception
Avg Ann††
Cumulative
FTSE RAFI Japan Index
6.57
-6.34
-5.74
-17.98
MSCI Japan Index
4.78
-9.35
-8.79
-26.42
MSCI EAFE Index
8.36
-9.60
-7.03
-21.56
Net Asset Value (“NAV”) Return
7.27
-7.46
-6.71
-20.76
Share Price Return
6.38
-8.17
-6.84
-21.14
Fund Inception: June 25, 2007
Data quoted represents past performance. Past performance is not a guarantee of future results and current
performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate
and shares, when redeemed, may be worth more or less than their original cost. According to the Fund’s current
prospectus, the expense ratio of 0.75% is expressed as a unitary fee to cover operating expenses and expenses incurred
in connection with managing the portfolio. NAV and Share Price returns assume that dividends and capital gain
distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table
above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or
sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not
represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or
brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In
addition, the 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 MSCI Japan Index and MSCI EAFE Index (the “Benchmark Indices”) are unmanaged indices used as a
measurement of change in stock market conditions based on the average performance of approximately 348 and 961
common stocks, respectively.
†
Fund and Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on
the closest month-end to the Fund’s inception date.
††
Average annualized.
23
Manager’s Analysis
PowerShares Global Agriculture Portfolio (ticker: PAGG)
The PowerShares Global Agriculture Portfolio (the “Fund”) seeks investment results that correspond
(before fees and expenses) generally to the price and yield performance of the index called the NASDAQ
OMX Global Agriculture IndexSM (the “Index”).
For the fiscal year ended October 31, 2010, the Fund returned 30.99%. Over this same year, the Index
returned 32.64%, the MSCI EAFE Index returned 8.36% and the S&P 500® Index returned 16.54%. The
Fund benefited from positive performance of securities of issuers located in Canada, the United States and
Malaysia.
Industry Breakdown (% of the Fund’s
Top Ten Fund Holdings (% of the Fund’s
Net Assets) as of October 31, 2010
Net Assets) as of October 31, 2010
Agricultural Chemicals
47.0
Security
Agricultural Operations
26.3
Mosaic Co. (The)
Chemicals-Diversified
13.1
Monsanto Co.
7.6
Food-Miscellaneous/Diversified
5.1
Wilmar International Ltd.
7.4
Sugar
3.2
Syngenta AG
7.2
Investment Companies
2.5
Potash Corp. of Saskatchewan, Inc.
6.8
Consumer Products-Miscellaneous
1.1
Yara International ASA
4.4
Transportation-Services
1.1
Israel Chemicals Ltd.
4.2
Food-Wholesale/Distribution
0.4
Agrium, Inc.
4.1
Alternative Waste Technologies
0.2
Money Market Fund
0.0
Sociedad Quimica y Minera de
Chile SA, Class B
4.0
Other
0.0
K+S AG
Total
Style Allocation (% of the Fund’s Total
Investments) as of October 31, 2010
24
8.7
Large-Cap Growth
41.6
Large-Cap Value
37.0
Mid-Cap Value
13.3
Mid-Cap Growth
7.6
Small-Cap Value
0.5
4.0
58.4
Manager’s Analysis (Continued)
PowerShares Global Agriculture Portfolio (ticker: PAGG)
Growth of a $10,000 Investment Since Inception†
$12,885
$12,490
$11,046
$10,647
$10,000
PowerShares Global Agriculture Portfolio
NASDAQ OMX Global Agriculture IndexSM
MSCI EAFE Index
Fund Performance History (%)
Index
Fund
MSCI EAFE® Index
10/31/2010
09/30/2010
08/31/2010
07/31/2010
As of October 31, 2010
Avg Ann††
1 Year
NASDAQ OMX Global Agriculture IndexSM
06/30/2010
05/31/2010
04/30/2010
03/31/2010
02/28/2010
01/31/2010
12/31/2009
11/30/2009
10/31/2009
09/30/2009
08/31/2009
07/31/2009
06/30/2009
05/31/2009
04/30/2009
03/31/2009
02/28/2009
01/31/2009
12/31/2008
11/30/2008
10/31/2008
09/30/2008
09/18/2008
S&P 500® Index
Fund Inception
Avg Ann††
Cumulative
32.64
12.72
28.85
8.36
4.89
10.46
S&P 500® Index
16.54
3.05
6.47
Net Asset Value (“NAV”) Return
30.99
11.07
24.90
Share Price Return
32.61
10.29
23.06
Fund Inception: September 18, 2008
Data quoted represents past performance. Past performance is not a guarantee of future results and current
performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate
and shares, when redeemed, may be worth more or less than their original cost. According to the Fund’s current
prospectus, the expense ratio of 0.75% is expressed as a unitary fee to cover operating expenses and expenses incurred
in connection with managing the portfolio. NAV and Share Price returns assume that dividends and capital gain
distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table
above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or
sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not
represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or
brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In
addition, the 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 MSCI EAFE Index and S&P 500® Index (the “Benchmark Indices”) are unmanaged indices used as a measurement
of change in stock market conditions based on the average performance of approximately 961 and 500 common
stocks, respectively.
†
Fund and Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on
the closest month-end to the Fund’s inception date.
††
Average annualized.
25
Manager’s Analysis
PowerShares Global Biotech Portfolio (ticker: PBTQ)
The PowerShares Global Biotech Portfolio (the “Fund”) seeks investment results that correspond (before
fees and expenses) generally to the price and yield performance of the index called the NASDAQ OMX
Global Biotechnology IndexSM (the “Index”).
For the fiscal year ended October 31, 2010, the Fund returned 18.86%. Over this same year, the Index
returned 19.70%, the MSCI EAFE Index returned 8.36% and the S&P 500® Index returned 16.54%. The
Fund benefited from exposure to the United States of which approximately 90% of the Fund was
domiciled.
26
Industry Breakdown (% of the Fund’s
Top Ten Fund Holdings (% of the Fund’s
Net Assets) as of October 31, 2010
Net Assets) as of October 31, 2010
Medical-Biomedical/Genetics
78.5
Security
Medical-Drugs
14.5
Celgene Corp.
8.7
Therapeutics
5.1
Gilead Sciences, Inc.
8.7
Diagnostic Equipment
0.9
Amgen, Inc.
8.0
Drug Delivery Systems
0.8
CSL Ltd.
7.8
Money Market Fund
0.3
Genzyme Corp.
7.6
Other
(0.1)
Alexion Pharmaceuticals, Inc.
4.3
Actelion Ltd.
4.1
Biogen Idec, Inc.
4.1
Style Allocation (% of the Fund’s Total
Vertex Pharmaceuticals, Inc.
3.9
Investments) as of October 31, 2010
Cephalon, Inc.
Large-Cap Growth
32.8
Mid-Cap Growth
32.6
Small-Cap Growth
18.2
Large-Cap Value
12.1
Mid-Cap Value
3.8
Small-Cap Value
0.5
Total
3.8
61.0
Manager’s Analysis (Continued)
PowerShares Global Biotech Portfolio (ticker: PBTQ)
Growth of a $10,000 Investment Since Inception†
$11,046
$10,647
$10,349
$10,290
$10,000
PowerShares Global Biotech Portfolio
NASDAQ OMX Global Biotechnology IndexSM
MSCI EAFE Index
Fund Performance History (%)
Index
Fund
MSCI EAFE Index
10/31/2010
09/30/2010
08/31/2010
07/31/2010
As of October 31, 2010
Avg Ann††
1 Year
NASDAQ OMX Global Biotechnology IndexSM
06/30/2010
05/31/2010
04/30/2010
03/31/2010
02/28/2010
01/31/2010
12/31/2009
11/30/2009
10/31/2009
09/30/2009
08/31/2009
07/31/2009
06/30/2009
05/31/2009
04/30/2009
03/31/2009
02/28/2009
01/31/2009
12/31/2008
11/30/2008
10/31/2008
09/30/2008
09/18/2008
S&P 500® Index
Fund Inception
Avg Ann††
Cumulative
19.70
1.63
3.49
8.36
4.89
10.46
S&P 500® Index
16.54
3.05
6.47
Net Asset Value (“NAV”) Return
18.86
1.36
2.90
Share Price Return
17.99
0.75
1.59
Fund Inception: September 18, 2008
Data quoted represents past performance. Past performance is not a guarantee of future results and current
performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate
and shares, when redeemed, may be worth more or less than their original cost. According to the Fund’s current
prospectus, the expense ratio of 0.75% is expressed as a unitary fee to cover operating expenses and expenses incurred
in connection with managing the portfolio. NAV and Share Price returns assume that dividends and capital gain
distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table
above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or
sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not
represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or
brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In
addition, the 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 MSCI EAFE Index and S&P 500® Index (the “Benchmark Indices”) are unmanaged indices used as a measurement
of change in stock market conditions based on the average performance of approximately 961 and 500 common
stocks, respectively.
†
Fund and Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on
the closest month-end to the Fund’s inception date.
††
Average annualized.
27
Manager’s Analysis
PowerShares Global Clean Energy Portfolio (ticker: PBD)
The PowerShares Global Clean Energy Portfolio (the “Fund”) seeks investment results that correspond
(before fees and expenses) generally to the price and yield performance of the WilderHill New Energy
Global Innovation Index (the “Index”). The Fund will normally invest at least 90% of its total assets in
securities that comprise the Index and American Depository Receipts based on the securities in the Index.
The Index is comprised primarily of companies that focus on greener and generally renewable sources of
energy and technologies facilitating cleaner energy.
For the fiscal year ended October 31, 2010, the Fund returned (10.14)%. Over this same year, the Index
returned (8.66)%, while the S&P Global Clean Energy Index returned (17.26)%, the MSCI World
IndexSM returned 12.74% and the S&P 500® Index returned 16.54%. The Fund suffered from negative
performance of securities of issuers located in Japan, Spain and Germany.
28
Industry Breakdown (% of the Fund’s
Top Ten Fund Holdings (% of the Fund’s
Net Assets) as of October 31, 2010
Net Assets) as of October 31, 2010
Energy-Alternate Sources
22.7
Security
Power Conversion/Supply Equipment
13.9
EDF Energies Nouvelles SA
Electronic Components-Semiconductors
12.9
American Superconductor Corp.
2.1
Acciona SA
2.0
EDP Renovaveis SA
2.0
Iberdrola Renovables SA
2.0
2.1
Batteries/Battery Systems
5.6
Building & Construction
Products-Miscellaneous
3.8
Electric-Integrated
3.5
Machinery-Electrical
3.0
China Longyuan Power Group Corp.
1.9
Auto-Cars/Light Trucks
2.9
Cosan SA Industria e Comercio
1.9
Sugar
2.5
Gamesa Corp. Tecnologica SA
1.9
Auto/Truck Parts & Equipment-Original
2.4
Fortum Oyj
1.9
Engineering/R&D Services
2.4
Abengoa SA
Superconductor Products & Systems
2.1
Total
Building-Heavy Construct
2.0
Electronic Measuring Instruments
2.0
Diversified Manufacturing Operations
1.9
Medical-Biomedical/Genetics
1.8
Filtration/Separation Products
1.6
Semiconductor ComponentsIntegrated Circuits
1.6
Electric-Generation
1.5
Machinery Tools & Related Products
1.5
Independent Power Producer
1.4
Electric-Distribution
1.4
Semiconductor Equipment
1.4
Chemicals-Specialty
1.1
Computers-Integrated Systems
0.9
Lighting Products & Systems
0.8
Metal Processors & Fabricators
0.5
Chemicals-Fibers
0.5
Instruments-Scientific
0.4
Other
0.0
1.8
19.6
Style Allocation (% of the Fund’s Total
Investments) as of October 31, 2010
Mid-Cap Growth
36.3
Small-Cap Growth
29.4
Large-Cap Growth
13.5
Small-Cap Value
9.2
Mid-Cap Value
8.2
Large-Cap Value
3.4
Manager’s Analysis (Continued)
PowerShares Global Clean Energy Portfolio (ticker: PBD)
Growth of a $10,000 Investment Since Inception†
$10,000
$8,337
$8,127
PowerShares Global Clean Energy Portfolio
$5,946
$5,574
WilderHill New Energy Global Innovation Index
S&P Global Clean Energy Index
$3,828
MSCI World IndexSM
Fund Performance History (%)
Index
Fund
S&P Global Clean Energy Index
10/31/2010
09/30/2010
08/31/2010
07/31/2010
06/30/2010
05/31/2010
04/30/2010
03/31/2010
As of October 31, 2010
Avg Ann††
1 Year
3 Year
WilderHill New Energy Global Innovation Index
02/28/2010
01/31/2010
12/31/2009
11/30/2009
10/31/2009
09/30/2009
08/31/2009
07/31/2009
06/30/2009
05/31/2009
04/30/2009
03/31/2009
02/28/2009
01/31/2009
12/31/2008
11/30/2008
10/31/2008
09/30/2008
08/31/2008
07/31/2008
06/30/2008
05/31/2008
04/30/2008
02/29/2008
03/31/2008
01/31/2008
12/31/2007
11/30/2007
10/31/2007
09/30/2007
08/31/2007
06/30/2007
07/31/2007
06/13/2007
S&P 500® Index
Fund Inception
Avg Ann††
Cumulative
-8.66
-21.96
-14.24
-40.54
-17.26
-33.29
-24.50
-61.72
MSCI World IndexSM
12.74
-8.09
-5.89
-18.73
S&P 500® Index
16.54
-6.48
-5.19
-16.63
-10.14
-23.25
-15.86
-44.26
-9.58
-23.53
-16.14
-44.88
Net Asset Value (“NAV”) Return
Share Price Return
Fund Inception: June 13, 2007
Data quoted represents past performance. Past performance is not a guarantee of future results and current
performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate
and shares, when redeemed, may be worth more or less than their original cost. According to the Fund’s current
prospectus, the expense ratio of 0.75% is expressed as a unitary fee to cover operating expenses and expenses incurred
in connection with managing the portfolio. NAV and Share Price returns assume that dividends and capital gain
distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table
above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or
sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not
represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or
brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In
addition, the 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 S&P Global Clean Energy Index, MSCI World IndexSM and S&P 500® Index (the “Benchmark Indices”) are
unmanaged indices used as a measurement of change in stock market conditions based on the average performance of
approximately 30, 1,659, and 500 common stocks, respectively.
†
Fund and Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on
the closest month-end to the Fund’s inception date.
††
Average annualized.
29
Manager’s Analysis
PowerShares Global Coal Portfolio (ticker: PKOL)
The PowerShares Global Coal Portfolio (the “Fund”) seeks investment results that correspond (before
fees and expenses) generally to the price and yield performance of the index called the NASDAQ OMX
Global Coal IndexSM (the “Index”).
For the fiscal year ended October 31, 2010, the Fund returned 31.40%. Over this same year, the Index
returned 31.18%, the MSCI EAFE Index returned 8.36% and the S&P 500® Index returned 16.54%.
During the reporting period, the fund experienced tracking error outside the range recommended by the
Advisor due to the use of fair value pricing. The performance difference between the fund and index
remained relatively small. The Fund benefited from exposure to the United States, China and Australia.
Industry Breakdown (% of the Fund’s
Top Ten Fund Holdings (% of the Fund’s
Net Assets) as of October 31, 2010
Net Assets) as of October 31, 2010
Coal
82.0
Security
Non-Ferrous Metals
13.6
Cameco Corp.
8.9
Diversified Minerals
4.6
China Shenhua Energy Co. Ltd.
8.9
Other
(0.2)
Peabody Energy Corp.
8.6
Coal & Allied Industries Ltd.
7.0
Banpu PCL
4.8
Indo Tambangraya Megah PT
4.4
Style Allocation (% of the Fund’s Total
Investments) as of October 31, 2010
30
Yanzhou Coal Mining Co. Ltd.
4.3
4.3
Large-Cap Growth
48.3
China Coal Energy Co. Ltd.
Mid-Cap Growth
23.8
Alpha Natural Resources, Inc.
4.2
Large-Cap Value
19.0
Adaro Energy Tbk PT
4.1
Small-Cap Value
4.0
Mid-Cap Value
3.1
Small-Cap Growth
1.8
Total
59.5
Manager’s Analysis (Continued)
PowerShares Global Coal Portfolio (ticker: PKOL)
Growth of a $10,000 Investment Since Inception†
$14,704
$14,024
PowerShares Global Coal Portfolio
NASDAQ OMX Global Coal IndexSM
MSCI EAFE Index
S&P 500® Index
Index
Fund
MSCI EAFE Index
10/31/2010
09/30/2010
08/31/2010
07/31/2010
06/30/2010
As of October 31, 2010
Avg Ann††
1 Year
NASDAQ OMX Global Coal IndexSM
05/31/2010
03/31/2010
Fund Performance History (%)
04/30/2010
02/28/2010
01/31/2010
12/31/2009
11/30/2009
10/31/2009
09/30/2009
08/31/2009
07/31/2009
06/30/2009
05/31/2009
04/30/2009
03/31/2009
02/28/2009
01/31/2009
12/31/2008
11/30/2008
10/31/2008
09/30/2008
09/18/2008
$11,046
$10,647
$10,000
Fund Inception
Avg Ann††
Cumulative
31.18
19.97
47.04
8.36
4.89
10.46
S&P 500® Index
16.54
3.05
6.47
Net Asset Value (“NAV”) Return
31.40
17.32
40.24
Share Price Return
33.38
18.12
42.30
Fund Inception: September 18, 2008
Data quoted represents past performance. Past performance is not a guarantee of future results and current
performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate
and shares, when redeemed, may be worth more or less than their original cost. According to the Fund’s current
prospectus, the expense ratio of 0.75% is expressed as a unitary fee to cover operating expenses and expenses incurred
in connection with managing the portfolio. NAV and Share Price returns assume that dividends and capital gain
distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table
above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or
sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not
represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or
brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In
addition, the 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 MSCI EAFE Index and S&P 500® Index (the “Benchmark Indices”) are unmanaged indices used as a measurement
of change in stock market conditions based on the average performance of approximately 961 and 500 common
stocks, respectively.
†
Fund and Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on
the closest month-end to the Fund’s inception date.
††
Average annualized.
31
Manager’s Analysis
PowerShares Global Gold and Precious Metals Portfolio (ticker: PSAU)
The PowerShares Global Gold and Precious Metals Portfolio (the “Fund”) seeks investment results that
correspond (before fees and expenses) generally to the price and yield performance of the index called the
NASDAQ OMX Global Gold and Precious Metals IndexSM (the “Index”).
For the fiscal the year ended October 31, 2010, the Fund returned 37.05%. Over this same year, the
Index returned 38.26%, the MSCI EAFE Index returned 8.36% and the S&P 500® Index returned
16.54%. The Fund benefited from exposure to Canada, South Africa and the United States. Fund
performance was positive within each country.
Industry Breakdown (% of the Fund’s
Top Ten Fund Holdings (% of the Fund’s
Net Assets) as of October 31, 2010
Net Assets) as of October 31, 2010
Gold Mining
71.0
Security
Platinum
14.5
Goldcorp, Inc.
7.8
Silver Mining
10.4
Barrick Gold Corp.
7.8
Non-Ferrous Metals
2.8
Newcrest Mining Ltd.
7.4
Precious Metals
0.6
Newmont Mining Corp.
7.3
Diversified Minerals
0.4
Anglo Platinum Ltd.
6.4
Diamonds/Precious Stones
0.3
Kinross Gold Corp.
4.8
Money Market Fund
0.1
Impala Platinum Holdings Ltd.
4.3
Other
(0.1)
AngloGold Ashanti Ltd.
3.9
Fresnillo PLC
3.6
Agnico-Eagle Mines Ltd.
Style Allocation (% of the Fund’s Total
Investments) as of October 31, 2010
32
Large-Cap Growth
59.8
Large-Cap Value
14.0
Mid-Cap Growth
13.4
Small-Cap Growth
10.3
Small-Cap Value
1.3
Mid-Cap Value
1.2
Total
3.2
56.5
Manager’s Analysis (Continued)
PowerShares Global Gold and Precious Metals Portfolio (ticker: PSAU)
Growth of a $10,000 Investment Since Inception†
$17,253
$17,117
PowerShares Global Gold and Precious Metals Portfolio
NASDAQ OMX Global Gold and Precious Metals IndexSM
MSCI EAFE Index
S&P 500® Index
Fund Performance History (%)
Index
Fund
MSCI EAFE Index
10/31/2010
09/30/2010
08/31/2010
07/31/2010
06/30/2010
05/31/2010
As of October 31, 2010
Avg Ann††
1 Year
NASDAQ OMX Global Gold and Precious Metals IndexSM
04/30/2010
03/31/2010
02/28/2010
01/31/2010
12/31/2009
11/30/2009
10/31/2009
09/30/2009
08/31/2009
07/31/2009
06/30/2009
05/31/2009
04/30/2009
03/31/2009
02/28/2009
01/31/2009
12/31/2008
11/30/2008
10/31/2008
09/30/2008
09/18/2008
$11,046
$10,647
$10,000
Fund Inception
Avg Ann††
Cumulative
38.26
29.37
72.53
8.36
4.89
10.46
S&P 500® Index
16.54
3.05
6.47
Net Asset Value (“NAV”) Return
37.05
28.89
71.17
Share Price Return
36.65
28.85
71.05
Fund Inception: September 18, 2008
Data quoted represents past performance. Past performance is not a guarantee of future results and current
performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate
and shares, when redeemed, may be worth more or less than their original cost. According to the Fund’s current
prospectus, the expense ratio of 0.75% is expressed as a unitary fee to cover operating expenses and expenses incurred
in connection with managing the portfolio. NAV and Share Price returns assume that dividends and capital gain
distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table
above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or
sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not
represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or
brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In
addition, the 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 MSCI EAFE Index and S&P 500® Index (the “Benchmark Indices”) are unmanaged indices used as a measurement
of change in stock market conditions based on the average performance of approximately 961 and 500 common
stocks, respectively.
†
Fund and Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on
the closest month-end to the Fund’s inception date.
††
Average annualized.
33
Manager’s Analysis
PowerShares Global Nuclear Energy Portfolio (ticker: PKN)
The PowerShares Global Nuclear Energy Portfolio (the “Fund”) seeks investment results that correspond
(before fees and expenses) generally to the price and yield performance of the index called the WNA
Nuclear Energy IndexSM (the “Index”). The Fund will normally invest at least 90% of its total assets in
securities that comprise the Index and American Depositary Receipts based on the securities in the Index.
The Index is designed to measure the overall performance of globally traded securities of companies which
are materially engaged in the nuclear energy industry with representation across five segments reactors,
utilities, construction, technology, equipments and services and fuels. The Index is rebalanced quarterly
from a universe of equity securities traded on recognized stock exchanges in the Americas, Europe, the
Middle East, Africa and Asia/Pacific.
For the fiscal year ended October 31, 2010, the Fund returned 10.46%. Over this same year, the Index
returned 10.94% and the MSCI EAFE® Index returned 8.36%. The Fund benefited from positive
performance in the United States, Canada and South Korea.
Industry Breakdown (% of the Fund’s
Top Ten Fund Holdings (% of the Fund’s
Net Assets) as of October 31, 2010
Net Assets) as of October 31, 2010
Electric-Integrated
34
23.1
Security
Non-Ferrous Metals
15.0
Areva SA CI
8.2
Engineering/R&D Services
12.0
Toshiba Corp.
5.0
Energy-Alternate Sources
8.4
Uranium One, Inc.
3.4
Electric Products-Miscellaneous
7.2
Cameco Corp.
3.3
Diversified Manufacturing Operations
6.6
Parker Hannifin Corp.
3.3
Electronic Components-Miscellaneous
5.0
Thermo Fisher Scientific, Inc.
3.2
Machinery-General Industrial
3.9
Paladin Energy Ltd.
3.2
Instruments-Scientific
3.2
Equinox Minerals Ltd.
3.0
Metal-Copper
3.1
Emerson Electric Co.
3.0
Consulting Services
2.7
E.ON AG
2.9
Auto/Truck Parts & Equipment-Original
2.6
Total
Machinery-Pumps
1.6
38.5
Machinery-Material Handling
0.9
Wire & Cable Products
0.8
Style Allocation (% of the Fund’s Total
Building-Heavy Construction
0.7
Investments) as of October 31, 2010
Transportation-Marine
0.7
Chemicals-Specialty
0.5
Aerospace/Defense-Equipment
0.4
Electronic Measuring Instruments
0.4
Semiconductor Equipment
0.3
Environmental Monitoring and Detection
0.2
Metal Processors & Fabricators
0.2
Protection-Safety
0.2
Research and Development
0.1
Commercial Services
0.1
Other
0.1
Large-Cap Value
37.2
Large-Cap Growth
30.9
Mid-Cap Growth
11.2
Mid-Cap Value
11.0
Small-Cap Value
7.2
Small-Cap Growth
2.5
Manager’s Analysis (Continued)
PowerShares Global Nuclear Energy Portfolio (ticker: PKN)
Growth of a $10,000 Investment Since Inception†
PowerShares Global Nuclear Energy Portfolio
WNA Nuclear Energy IndexSM
MSCI EAFE Index
$10,000
Fund Performance History (%)
10/31/2010
09/30/2010
08/31/2010
07/31/2010
06/30/2010
05/31/2010
04/30/2010
03/31/2010
02/28/2010
01/31/2010
12/31/2009
10/31/2009
11/30/2009
09/30/2009
08/31/2009
07/31/2009
06/30/2009
05/31/2009
04/30/2009
03/31/2009
02/28/2009
01/31/2009
12/31/2008
11/30/2008
09/30/2008
10/31/2008
08/31/2008
07/31/2008
06/30/2008
05/31/2008
04/30/2008
04/03/2008
$8,577
$8,006
$7,899
As of October 31, 2010
Index
Fund Inception
Avg Ann††
Cumulative
WNA Nuclear Energy IndexSM
10.94
-8.74
-21.01
8.36
-5.77
-14.23
Fund
Avg Ann††
1 Year
Net Asset Value (“NAV”) Return
10.46
-8.26
-19.94
Share Price Return
11.65
-8.67
-20.84
MSCI EAFE Index
Fund Inception: April 3, 2008
Data quoted represents past performance. Past performance is not a guarantee of future results and current
performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate
and shares, when redeemed, may be worth more or less than their original cost. According to the Fund’s current
prospectus, the expense ratio of 0.75% is expressed as a unitary fee to cover operating expenses and expenses incurred
in connection with managing the portfolio. NAV and Share Price returns assume that dividends and capital gain
distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table
above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or
sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not
represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or
brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In
addition, the 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 MSCI EAFE Index (the “Benchmark Index”) is an unmanaged index used as a measurement of change in stock
market conditions based on the average performance of approximately 961 common stocks.
†
Fund and Index returns are based on the inception date of the Fund. Returns for the Benchmark Index are based on
the closest month-end to the Fund’s inception date.
††
Average annualized.
35
Manager’s Analysis
PowerShares Global Progressive Transportation Portfolio (ticker: PTRP)
The PowerShares Global Progressive Transportation Portfolio (the “Fund”) seeks investment results that
correspond (before fees and expenses) generally to the price and yield performance of an equity index
called the Wilder NASDAQ OMX Global Energy Efficient Transport IndexSM (the “Index”).
For the fiscal year ended October 31, 2010, the Fund returned 18.64%. Over this same year, the Index
returned 19.05%, the MSCI EAFE Index returned 8.36% and the S&P 500® Index returned 16.54%.
During the reporting period, the fund experienced tracking error outside the range recommended by the
Advisor due to the use of fair value pricing. The performance difference between the fund and index
remained relatively small. The Fund benefited from exposure to the United States, Canada and Hong Kong.
36
Industry Breakdown (% of the Fund’s
Top Ten Fund Holdings (% of the Fund’s
Net Assets) as of October 31, 2010
Net Assets) as of October 31, 2010
Transportation-Rail
11.0
Security
Batteries/Battery Systems
10.9
Ener1, Inc.
3.1
Transportation-Services
10.8
A123 Systems, Inc.
3.0
Auto/Truck Parts & Equipment-Original 10.2
Maxwell Technologies, Inc.
2.9
Transportation-Marine
9.6
Piaggio & C. SpA
2.9
Auto-Cars/Light Trucks
7.2
Panalpina Welttransport Holding AG
2.9
Machinery-General Industrial
6.0
Telvent GIT SA
2.8
Computers-Integrated Systems
2.9
Motorcycle/Motor Scooter
2.9
Dongfeng Motor Group Co. Ltd.,
H-Shares
2.7
Computer Services
2.8
WABCO Holdings, Inc.
2.7
Oil Components-Integrated
2.6
FirstGroup PLC
2.7
Chemicals-Specialty
2.5
Kuehne & Nagel International AG
2.6
Chemicals-Diversified
2.5
Total
28.3
Building & Construction-Miscellaneous
2.4
Bicycle Manufacturing
2.4
Petrochemicals
2.4
Style Allocation (% of the Fund’s Total
Steel-Producers
2.3
Investments) as of October 31, 2010
Energy-Alternate Sources
2.2
Miscellaneous Manufacturing
2.2
Diversified Manufacturing Operations
2.2
Building-Heavy Construction
1.9
Money Market Fund
0.1
Other
0.0
Small-Cap Growth
24.3
Mid-Cap Value
20.8
Large-Cap Growth
19.4
Large-Cap Value
14.0
Small-Cap Value
12.0
Mid-Cap Growth
9.5
Manager’s Analysis (Continued)
PowerShares Global Progressive Transportation Portfolio (ticker: PTRP)
Growth of a $10,000 Investment Since Inception†
PowerShares Global Progressive Transportation Portfolio
Wilder NASDAQ OMX Global Energy Efficient Transport IndexSM
MSCI EAFE Index
S&P 500® Index
$12,445
$12,169
Fund Performance History (%)
Index
Fund
MSCI EAFE Index
10/31/2010
09/30/2010
08/31/2010
07/31/2010
06/30/2010
05/31/2010
As of October 31, 2010
Avg Ann††
1 Year
Wilder NASDAQ OMX Global Energy Efficient Transport IndexSM
04/30/2010
03/31/2010
02/28/2010
01/31/2010
12/31/2009
11/30/2009
10/31/2009
09/30/2009
08/31/2009
07/31/2009
06/30/2009
05/31/2009
04/30/2009
03/31/2009
02/28/2009
01/31/2009
12/31/2008
11/30/2008
10/31/2008
09/30/2008
09/18/2008
$11,046
$10,647
$10,000
Fund Inception
Avg Ann††
Cumulative
19.05
10.88
24.45
8.36
4.89
10.46
S&P 500® Index
16.54
3.05
6.47
Net Asset Value (“NAV”) Return
18.64
9.71
21.69
Share Price Return
18.65
9.72
21.71
Fund Inception: September 18, 2008
Data quoted represents past performance. Past performance is not a guarantee of future results and current
performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate
and shares, when redeemed, may be worth more or less than their original cost. According to the Fund’s current
prospectus, the expense ratio of 0.75% is expressed as a unitary fee to cover operating expenses and expenses incurred
in connection with managing the portfolio. NAV and Share Price returns assume that dividends and capital gain
distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table
above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or
sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not
represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or
brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In
addition, the 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 MSCI EAFE Index and S&P 500® Index (the “Benchmark Indices”) are unmanaged indices used as a measurement
of change in stock market conditions based on the average performance of approximately 961 and 500 common
stocks, respectively.
†
Fund and Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on
the closest month-end to the Fund’s inception date.
††
Average annualized.
37
Manager’s Analysis
PowerShares Global Steel Portfolio (ticker: PSTL)
The PowerShares Global Steel Portfolio (the “Fund”) seeks investment results that correspond (before fees
and expenses) generally to the price and yield performance of the index called the NASDAQ OMX
Global Steel IndexSM (the “Index”).
For the fiscal year ended October 31, 2010, the Fund returned 13.09%. Over this same year, the Index
returned 13.26%, the MSCI EAFE Index returned 8.36% and the S&P 500® Index returned 16.54%.
During the reporting period, the fund experienced tracking error outside the range recommended by the
Advisor due to the use of fair value pricing. The performance difference between the fund and index
remained relatively small. The Fund benefited from exposure to the United States, Brazil and South Africa.
Industry Breakdown (% of the Fund’s
Top Ten Fund Holdings (% of the Fund’s
Net Assets) as of October 31, 2010
Net Assets) as of October 31, 2010
Steel-Producers
68.5
Security
Metal-Iron
15.9
Vale SA
8.8
Diversified Minerals
8.8
ArcelorMittal
7.6
Steel-Specialty
3.4
POSCO
7.4
Metal Processors & Fabricators
1.5
Cia Siderurgica Nacional SA
5.2
Diversified Manufacturing Operations
1.1
Nippon Steel Corp.
4.5
Steel Pipe & Tube
0.4
Novolipetsk Steel OJSC GDR
4.0
Machinery-General Industrial
0.3
Fortescue Metals Group Ltd.
4.0
Other
0.1
ThyssenKrupp AG
4.0
Style Allocation (% of the Fund’s Total
Investments) as of October 31, 2010
Large-Cap Growth
38
38.2
Large-Cap Value
37.7
Mid-Cap Value
15.1
Mid-Cap Growth
7.5
Small-Cap Value
0.9
Small-Cap Growth
0.6
Kumba Iron Ore Ltd.
3.9
JFE Holdings, Inc.
3.7
Total
53.1
Manager’s Analysis (Continued)
PowerShares Global Steel Portfolio (ticker: PSTL)
Growth of a $10,000 Investment Since Inception†
PowerShares Global Steel Portfolio
NASDAQ OMX Global Steel IndexSM
MSCI EAFE Index
S&P 500® Index
Fund Performance History (%)
Index
Fund
MSCI EAFE Index
10/31/2010
09/30/2010
08/31/2010
07/31/2010
06/30/2010
05/31/2010
As of October 31, 2010
Avg Ann††
1 Year
NASDAQ OMX Global Steel IndexSM
04/30/2010
03/31/2010
02/28/2010
01/31/2010
12/31/2009
11/30/2009
10/31/2009
09/30/2009
08/31/2009
07/31/2009
06/30/2009
05/31/2009
04/30/2009
03/31/2009
02/28/2009
01/31/2009
12/31/2008
11/30/2008
10/31/2008
09/30/2008
09/18/2008
$11,046
$10,647
$10,516
$10,000
$9,154
Fund Inception
Avg Ann††
Cumulative
13.26
2.41
5.16
8.36
4.89
10.46
S&P 500® Index
16.54
3.05
6.47
Net Asset Value (“NAV”) Return
13.09
-4.09
-8.46
Share Price Return
12.42
-3.69
-7.66
Fund Inception: September 18, 2008
Data quoted represents past performance. Past performance is not a guarantee of future results and current
performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate
and shares, when redeemed, may be worth more or less than their original cost. According to the Fund’s current
prospectus, the expense ratio of 0.75% is expressed as a unitary fee to cover operating expenses and expenses incurred
in connection with managing the portfolio. NAV and Share Price returns assume that dividends and capital gain
distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table
above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or
sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not
represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or
brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In
addition, the 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 MSCI EAFE Index and S&P 500® Index (the “Benchmark Indices”) are unmanaged indices used as a measurement
of change in stock market conditions based on the average performance of approximately 961 and 500 common
stocks, respectively.
†
Fund and Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on
the closest month-end to the Fund’s inception date.
††
Average annualized.
39
Manager’s Analysis
PowerShares Global Water Portfolio (ticker: PIO)
The PowerShares Global Water Portfolio (the “Fund”) seeks investment results that correspond (before
fees and expenses) generally to the price and yield performance of the equity index called the Palisades
Global Water IndexTM (the “Index”). The Fund will normally invest at least 90% of its total assets in
securities that comprise the Index and American depositary receipts based on the securities in the Index.
The Index is a modified equal-dollar weighted index comprised of companies worldwide that are engaged
in the water industry.
For the fiscal year ended October 31, 2010, the Fund returned 10.47%. Over this same year, the Index
returned 10.91%, while the S&P Global Water Index returned 12.15% and the S&P 500® Index returned
16.54%. The Fund benefited from positive performance in the United Kingdom, United States and Finland.
Industry Breakdown (% of the Fund’s
Top Ten Fund Holdings (% of the Fund’s
Net Assets) as of October 31, 2010
Net Assets) as of October 31, 2010
Water
23.7
Security
Environmental Control
21.5
Valmont Industries, Inc.
5.1
Machinery-Diversified
11.4
Veolia Environnement
5.0
Miscellaneous Manufacturing
10.0
Suez Environnement Co.
4.9
8.1
Tetra Tech, Inc.
4.8
Metal Fabricate/Hardware
5.1
Stantec, Inc.
4.7
Commercial Services
4.7
Arcadis NV
4.5
Engineering & Construction
4.6
Nalco Holding Co.
4.2
Building Materials
4.5
Kemira Oyj
4.2
Chemicals
4.2
Halma PLC
4.1
Holding Companies-Diversified
2.2
Severn Trent PLC
4.0
Other
0.0
Total
Electronics
Style Allocation (% of the Fund’s Total
Investments) as of 31 October 31, 2010
Mid-Cap Growth
28.9
Small-Cap Growth
27.1
Large-Cap Value
25.5
Mid-Cap Value
11.6
Small-Cap Value
40
6.9
45.5
Manager’s Analysis (Continued)
PowerShares Global Water Portfolio (ticker: PIO)
Growth of a $10,000 Investment Since Inception†
$10,000
$8,337
$8,156
$8,030
$7,818
PowerShares Global Water Portfolio
Palisades Global Water IndexTM
S&P Global Water Index
Fund Performance History (%)
Index
10/31/2010
09/30/2010
08/31/2010
07/31/2010
06/30/2010
05/31/2010
04/30/2010
03/31/2010
02/28/2010
01/31/2010
As of October 31, 2010
Avg Ann††
1 Year
3 Year
Fund Inception
Avg Ann††
Cumulative
Palisades Global Water IndexTM
10.91
-10.18
-5.84
-18.44
S&P Global Water Index
12.15
-8.01
-6.22
-19.70
S&P 500 Index
16.54
-6.48
-5.19
-16.63
Net Asset Value (“NAV”) Return
10.47
-10.43
-7.02
-21.82
Share Price Return
11.30
-10.69
-7.55
-23.34
®
Fund
12/31/2009
11/30/2009
10/31/2009
09/30/2009
08/31/2009
07/31/2009
06/30/2009
05/31/2009
04/30/2009
03/31/2009
02/28/2009
01/31/2009
12/31/2008
11/30/2008
10/31/2008
09/30/2008
08/31/2008
07/31/2008
06/30/2008
05/31/2008
04/30/2008
03/31/2008
02/29/2008
01/31/2008
12/31/2007
11/30/2007
10/31/2007
09/30/2007
08/31/2007
07/31/2007
06/30/2007
06/13/2007
S&P 500® Index
Fund Inception: June 13, 2007
Data quoted represents past performance. Past performance is not a guarantee of future results and current
performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate
and shares, when redeemed, may be worth more or less than their original cost. According to the Fund’s current
prospectus, the expense ratio of 0.75% is expressed as a unitary fee to cover operating expenses and expenses incurred
in connection with managing the portfolio. NAV and Share Price returns assume that dividends and capital gain
distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table
above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or
sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not
represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or
brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In
addition, the 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 S&P Global Water Index and S&P 500® Index (the “Benchmark Indices”) are unmanaged indices used as a
measurement of change in stock market conditions based on the average performance of approximately 50 and 500
common stocks, respectively.
†
Fund and Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on
the closest month-end to the Fund’s inception date.
††
Average annualized.
41
Manager’s Analysis
PowerShares Global Wind Energy Portfolio (ticker: PWND)
The PowerShares Global Wind Energy Portfolio (the “Fund”) seeks investment results that correspond
(before fees and expenses) generally to the price and yield performance of the index called the NASDAQ
OMX Clean Edge® Global Wind Energy Index (the “Index”). The Fund will normally invest at least 90%
of its total assets in securities that comprise the Index and depository receipts based on the securities in the
Index. The Index is designed to measure the performance of global companies engaged in the wind energy
industry, which are primarily manufacturers, developers, distributors, installers and users of energy derived
from wind sources.
For the fiscal year ended October 31, 2010, the Fund returned (34.51)%. Over this same year, the Index
returned (32.75)%, the MSCI EAFE Index returned 8.36% and the S&P 500® Index returned 16.54%.
The Fund suffered from negative performance in Portugal, Spain and Denmark.
Industry Breakdown (% of the Fund’s
Top Ten Fund Holdings (% of the Fund’s
Net Assets) as of October 31, 2010
Net Assets) as of October 31, 2010
Energy-Alternate Sources
54.5
Security
Electrical Components & Equipment
25.2
Iberdrola Renovables SA
10.3
Miscellaneous Manufacturing
6.6
EDP Renovaveis SA
10.3
Chemicals
6.1
Electric
5.4
China Longyuan Power Group Corp.,
H-Shares
10.0
Engineering & Construction
1.2
Vestas Wind Systems A/S
8.4
Distribution/Wholesale
0.6
Repower Systems AG
4.6
Machinery-Diversified
0.3
American Superconductor Corp.
4.6
Money Market Fund
0.1
Innergex Renewable Energy, Inc.
4.5
Other
0.0
EDF Energies Nouvelles SA
4.3
Gamesa Corp. Tecnologica SA
4.1
Infigen Energy
Style Allocation (% of the Fund’s Total
Investments) as of October 31, 2010
Mid-Cap Growth
42
39.6
Large-Cap Growth
33.4
Small-Cap Growth
14.3
Large-Cap Value
7.5
Small-Cap Value
4.6
Mid-Cap Value
0.6
Total
4.0
65.1
Manager’s Analysis (Continued)
PowerShares Global Wind Energy Portfolio (ticker: PWND)
Growth of a $10,000 Investment Since Inception†
$10,000
$9,757
$8,775
$4,487
$4,255
PowerShares Global Wind Energy Portfolio
NASDAQ OMX Clean Edge® Global Wind Energy Index
MSCI EAFE Index
Fund Performance History (%)
Index
MSCI EAFE Index
Fund
S&P 500® Index
10/31/2010
09/30/2010
08/31/2010
07/31/2010
06/30/2010
05/31/2010
As of October 31, 2010
Avg Ann††
1 Year
NASDAQ OMX Clean Edge® Global Wind Energy Index
04/30/2010
03/31/2010
02/28/2010
01/31/2010
12/31/2009
11/30/2009
10/31/2009
09/30/2009
08/31/2009
07/31/2009
06/30/2009
05/31/2009
04/30/2009
03/31/2009
02/28/2009
01/31/2009
12/31/2008
11/30/2008
10/31/2008
09/30/2008
08/31/2008
06/30/2008
07/01/2008
07/31/2008
S&P 500® Index
Fund Inception
Avg Ann††
Cumulative
-32.75
-29.06
-55.13
8.36
-5.45
-12.25
16.54
-1.05
-2.43
Net Asset Value (“NAV”) Return
-34.51
-30.65
-57.45
Share Price Return
-33.74
-30.93
-57.84
Fund Inception: July 1, 2008
Data quoted represents past performance. Past performance is not a guarantee of future results and current
performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate
and shares, when redeemed, may be worth more or less than their original cost. According to the Fund’s current
prospectus, the expense ratio of 0.75% is expressed as a unitary fee to cover operating expenses and expenses incurred
in connection with managing the portfolio. NAV and Share Price returns assume that dividends and capital gain
distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table
above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or
sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not
represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or
brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In
addition, the 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 MSCI EAFE Index and S&P 500® Index (the “Benchmark Indices”) are unmanaged indices used as a measurement
of change in stock market conditions based on the average performance of approximately 961 and 500 common
stocks, respectively.
†
Fund and Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on
the closest month-end to the Fund’s inception date.
††
Average annualized.
43
Manager’s Analysis
PowerShares MENA Frontier Countries Portfolio (ticker: PMNA)
The PowerShares MENA Frontier Countries Portfolio (the “Fund”) seeks investment results that
correspond (before fees and expenses) generally to the price and yield performance of the index called the
NASDAQ OMX Middle East North Africa IndexSM (the “Index”). The Fund will normally invest at least
80% of its total assets in securities that comprise the Index and American depositary receipts and Global
depositary receipts based on the securities in the Index. The Index is designed to measure the performance
of the largest and most liquid securities of companies domiciled or principally traded in MENA frontier
market countries, which currently include Egypt, Morocco, Oman, Lebanon, Jordan, Kuwait, Bahrain,
Qatar and United Arab Emirates (Index currently includes the emirates of Dubai and Abu Dhabi).
For the fiscal year ended October 31, 2010, the Fund returned (3.26)%. Over this same year, the Index
returned (2.29)%, while the MSCI Emerging Markets IndexSM returned 23.56%, the MSCI EAFE Index
returned 8.36% and S&P 500® Index returned 16.54%. During the reporting period, the fund
experienced tracking error outside the range recommended by the Advisor due to the use of fair value
pricing. The performance difference between the fund and index remained relatively small. The Fund
suffered from negative performance in Lebanon, United Arab Emirates and Jordan.
Industry Breakdown (% of the Fund’s
Top Ten Fund Holdings (% of the Fund’s
Net Assets) as of October 31, 2010
Net Assets) as of October 31, 2010
Banks
53.1
Security
Telecommunications
14.5
National Bank of Kuwait SAK
Real Estate
14.0
Arab Bank PLC
7.0
Engineering & Construction
6.8
Qatar National Bank SAQ
6.9
Commercial Services
2.9
Mobile Telecommunications Co. KSC
6.1
Diversified Financial Services
2.6
Emaar Properties PJSC
5.7
Oil & Gas
2.0
Commercial International Bank Egypt SAE
5.1
Holding Companies-Diversified
1.2
Orascom Construction Industries
4.9
Airlines
1.0
Maroc Telecom
3.6
Electrical Components & Equipment
0.7
Qatar Islamic Bank
3.4
Storage/Warehousing
0.6
Commercial Bank of Qatar
Chemicals
0.4
Total
Other
0.2
Style Allocation (% of the Fund’s Total
Investments) as of October 31, 2010
44
7.7
Large-Cap Growth
38.6
Mid-Cap Growth
27.4
Mid-Cap Value
23.4
Large-Cap Value
5.9
Small-Cap Growth
3.9
Small-Cap Value
0.8
3.3
53.7
Manager’s Analysis (Continued)
PowerShares MENA Frontier Countries Portfolio (ticker: PMNA)
Growth of a $10,000 Investment Since Inception†
PowerShares MENA Frontier Countries Portfolio
NASDAQ OMX Middle East North Africa IndexSM
MSCI EAFE Index
MSCI Emerging Markets IndexSM
S&P 500® Index
$10,759
$10,000
$9,757
$8,775
Fund Performance History (%)
Index
Fund
MSCI EAFE Index
10/31/2010
09/30/2010
08/31/2010
07/31/2010
06/30/2010
05/31/2010
As of October 31, 2010
Avg Ann††
1 Year
NASDAQ OMX Middle East North Africa IndexSM
04/30/2010
03/31/2010
02/28/2010
01/31/2010
12/31/2009
11/30/2009
10/31/2009
09/30/2009
08/31/2009
07/31/2009
06/30/2009
05/31/2009
04/30/2009
03/31/2009
02/28/2009
01/31/2009
12/31/2008
11/30/2008
10/31/2008
09/30/2008
08/31/2008
07/31/2008
07/09/2008
$6,131
$5,632
Fund Inception
Avg Ann††
Cumulative
-2.29
-19.07
-38.69
8.36
-5.45
-12.25
MSCI Emerging Markets IndexSM
23.56
3.19
7.59
S&P 500® Index
16.54
-1.05
-2.43
Net Asset Value (“NAV”) Return
-3.26
-21.99
-43.68
Share Price Return
-0.96
-21.58
-43.00
Fund Inception: July 9, 2008
Data quoted represents past performance. Past performance is not a guarantee of future results and current
performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate
and shares, when redeemed, may be worth more or less than their original cost. According to the Fund’s current
prospectus, the expense ratio of 0.95% (0.70% after fee waiver) is expressed as a unitary fee to cover operating
expenses and expenses incurred in connection with managing the portfolio. NAV and Share Price returns assume that
dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The
returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end
performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not
represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or
brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In
addition, the 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 MSCI Emerging Markets IndexSM, MSCI EAFE Index and S&P 500® Index (the “Benchmark Indices”) are
unmanaged indices used as a measurement of change in stock market conditions based on the average performance of
approximately 754, 961 and 500 common stocks, respectively.
†
Fund and Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on
the closest month-end to the Fund’s inception date.
††
Average annualized.
45
Frequency Distribution of Discounts & Premiums
Since Inception through October 31, 2010
Closing Price Above NAV (bps)
Ticker Fund Name
PIZ
PIE
PowerShares DWA Developed
Markets Technical Leaders Portfolio
PowerShares DWA Emerging Markets
Technical Leaders Portfolio
PFA
PowerShares Dynamic Developed
International Opportunities Portfolio
PXR
PowerShares Emerging Markets
Infrastructure Portfolio
PAF
PowerShares FTSE RAFI Asia Pacific
ex-Japan Portfolio
PXF
PowerShares FTSE RAFI Developed
Markets ex-U.S. Portfolio
PDN PowerShares FTSE RAFI Developed
Markets ex-U.S. Small-Mid Portfolio
PXH PowerShares FTSE RAFI Emerging
Markets Portfolio
PEF
PowerShares FTSE RAFI Europe
Portfolio
PJO PowerShares FTSE RAFI Japan Portfolio
PAGG PowerShares Global Agriculture
Portfolio
PBTQ PowerShares Global Biotech Portfolio
PBD PowerShares Global Clean Energy
Portfolio
PKOL PowerShares Global Coal Portfolio
PSAU PowerShares Global Gold and
Precious Metals Portfolio
PKN PowerShares Global Nuclear Energy
Portfolio
PTRP PowerShares Global Progressive
Transportation Portfolio
PSTL PowerShares Global Steel Portfolio
PIO
PowerShares Global Water Portfolio
PWND PowerShares Global Wind Energy
Portfolio
PMNA PowerShares MENA Frontier Countries
Portfolio
46
Inception
Days
0-24
25-49
50-99
100-149
150-199
200+
12/28/07
695
86
73
99
62
17
35
12/28/07
695
55
57
141
79
35
43
6/13/07
833
101
104
140
80
33
32
10/16/08
493
46
52
94
57
41
53
6/25/07
825
77
82
136
99
52
49
6/25/07
825
99
98
191
101
41
45
9/27/07
759
49
66
122
107
84
85
9/27/07
759
82
94
224
115
29
25
6/25/07
6/25/07
825
825
91
68
105
73
185
104
100
67
33
34
22
97
9/18/08
9/18/08
512
512
58
127
61
95
100
140
56
10
31
2
23
26
6/13/07
9/18/08
833
512
85
65
115
61
195
82
94
27
54
20
26
36
9/18/08
512
67
64
105
50
24
38
4/3/08
630
93
115
115
51
10
9
9/18/08
9/18/08
6/13/07
512
512
833
81
48
111
107
69
136
133
118
190
47
57
66
6
34
22
14
17
15
7/1/08
568
64
70
101
56
23
42
7/9/08
563
41
47
94
78
36
47
Closing Below NAV (bps)
-0-24
-25-49
-50-99
-100-149
-150-199
-200+
83
65
97
37
23
18
58
44
85
57
14
27
106
62
88
42
23
22
42
44
46
11
1
6
60
67
97
60
28
18
66
46
75
37
17
9
55
31
63
45
27
25
67
48
47
15
8
5
85
66
74
84
72
108
36
57
14
30
8
37
60
70
44
28
61
8
13
2
4
2
1
2
84
77
60
58
74
55
26
22
11
4
9
5
52
40
36
20
6
10
97
63
44
20
4
9
63
61
104
40
35
60
15
57
71
2
11
26
2
1
10
2
4
22
68
48
54
28
8
6
44
42
57
32
19
26
47
Fees and Expenses
As a shareholder of a Fund of the PowerShares Exchange-Traded Fund Trust II, you incur a unitary
management fee. The expense examples below are intended to help you understand your ongoing costs
(in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in
other funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held
through the six-month period ended October 31, 2010.
Actual Expenses
The first line in the following table provides information about actual account values and actual expenses.
You may use the information in this line, together with the amount you invested, to estimate the expenses
that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account
value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading
“Expenses Paid During 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.
Annualized
Beginning
Ending
Expense Ratio
Expenses Paid
Account Value Account Value
based on the
During the
May 1, 2010 October 31, 2010 Six-Month Period Six-Month Period (1)
PowerShares DWA Developed Markets
Technical Leaders Portfolio
Actual
Hypothetical (5% return before expenses)
PowerShares DWA Emerging Markets
Technical Leaders Portfolio
Actual
Hypothetical (5% return before expenses)
PowerShares Dynamic Developed
International Opportunities Portfolio
Actual
Hypothetical (5% return before expenses)
48
$1,000.00
$1,098.23
0.80%
$4.23
$1,000.00
$1,021.17
0.80%
$4.08
$1,000.00
$1,157.28
0.90%
$4.89
$1,000.00
$1,020.67
0.90%
$4.58
$1,000.00
$1,041.79
0.75%
$3.86
$1,000.00
$1,021.42
0.75%
$3.82
Fees and Expenses (Continued)
Annualized
Beginning
Ending
Expense Ratio
Expenses Paid
Account Value Account Value
based on the
During the
May 1, 2010 October 31, 2010 Six-Month Period Six-Month Period (1)
PowerShares Emerging Markets
Infrastructure Portfolio
Actual
Hypothetical (5% return before expenses)
PowerShares FTSE RAFI Asia Pacific
ex-Japan Portfolio
Actual
Hypothetical (5% return before expenses)
PowerShares FTSE RAFI Developed Markets
ex-U.S. Portfolio
Actual
Hypothetical (5% return before expenses)
PowerShares FTSE RAFI Developed Markets
ex-U.S. Small-Mid Portfolio
Actual
Hypothetical (5% return before expenses)
PowerShares FTSE RAFI Emerging Markets
Portfolio
Actual
Hypothetical (5% return before expenses)
PowerShares FTSE RAFI Europe Portfolio
Actual
Hypothetical (5% return before expenses)
PowerShares FTSE RAFI Japan Portfolio
Actual
Hypothetical (5% return before expenses)
PowerShares Global Agriculture Portfolio
Actual
Hypothetical (5% return before expenses)
PowerShares Global Biotech Portfolio
Actual
Hypothetical (5% return before expenses)
PowerShares Global Clean Energy Portfolio
Actual
Hypothetical (5% return before expenses)
PowerShares Global Coal Portfolio
Actual
Hypothetical (5% return before expenses)
PowerShares Global Gold and Precious
Metals Portfolio
Actual
Hypothetical (5% return before expenses)
$1,000.00
$1,126.62
0.75%
$4.02
$1,000.00
$1,021.42
0.75%
$3.82
$1,000.00
$1,081.05
0.80%
$4.20
$1,000.00
$1,021.17
0.80%
$4.08
$1,000.00
$1,057.52
0.75%
$3.89
$1,000.00
$1,021.42
0.75%
$3.82
$1,000.00
$1,053.70
0.75%
$3.88
$1,000.00
$1,021.42
0.75%
$3.82
$1,000.00
$1,092.96
0.85%
$4.48
$1,000.00
$1,020.92
0.85%
$4.33
$1,000.00
$1,077.71
0.75%
$3.93
$1,000.00
$1,021.42
0.75%
$3.82
$1,000.00
$972.10
0.75%
$3.73
$1,000.00
$1,021.42
0.75%
$3.82
$1,000.00
$1,199.47
0.76%
$4.21
$1,000.00
$1,021.37
0.76%
$3.87
$1,000.00
$1,031.95
0.75%
$3.84
$1,000.00
$1,021.42
0.75%
$3.82
$1,000.00
$950.92
0.75%
$3.69
$1,000.00
$1,021.42
0.75%
$3.82
$1,000.00
$1,088.18
0.75%
$3.95
$1,000.00
$1,021.42
0.75%
$3.82
$1,000.00
$1,129.67
0.75%
$4.03
$1,000.00
$1,021.42
0.75%
$3.82
49
Fees and Expenses (Continued)
Annualized
Beginning
Ending
Expense Ratio
Expenses Paid
Account Value Account Value
based on the
During the
May 1, 2010 October 31, 2010 Six-Month Period Six-Month Period (1)
PowerShares Global Nuclear Energy
Portfolio
Actual
Hypothetical (5% return before expenses)
PowerShares Global Progressive
Transportation Portfolio
Actual
Hypothetical (5% return before expenses)
PowerShares Global Steel Portfolio
Actual
Hypothetical (5% return before expenses)
PowerShares Global Water Portfolio
Actual
Hypothetical (5% return before expenses)
PowerShares Global Wind Energy Portfolio
Actual
Hypothetical (5% return before expenses)
PowerShares MENA Frontier Countries
Portfolio
Actual
Hypothetical (5% return before expenses)
(1)
50
$1,000.00
$1,024.58
0.75%
$3.83
$1,000.00
$1,021.42
0.75%
$3.82
$1,000.00
$1,046.59
0.75%
$3.87
$1,000.00
$1,021.42
0.75%
$3.82
$1,000.00
$967.27
0.75%
$3.72
$1,000.00
$1,021.42
0.75%
$3.82
$1,000.00
$1,016.04
0.75%
$3.81
$1,000.00
$1,021.42
0.75%
$3.82
$1,000.00
$803.62
0.75%
$3.41
$1,000.00
$1,021.42
0.75%
$3.82
$1,000.00
$1,000.99
0.70%
$3.53
$1,000.00
$1,021.68
0.70%
$3.57
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 October 31, 2010. Expenses are calculated by
multiplying the Fund’s annualized expense ratio by the average account value for the period; then multiplying the
result by 184 and then dividing the result by 365. Expense ratios for the most recent six-month period may differ
from expense ratios based on the one year data in the Financial Highlights.
Schedule of Investments
PowerShares DWA Developed Markets Technical Leaders Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests—100.0%
312,287
71,622
16,822
13,089
219,250
1,514,865
21,280
28,383
70,114
21,824
29,258
Australia—10.7%
Challenger Financial Services Group Ltd.
Coca-Cola Amatil Ltd.
Cochlear Ltd.
Commonwealth Bank of Australia
Fortescue Metals Group Ltd.*
Goodman Group REIT
Newcrest Mining Ltd.
Orica Ltd.
Origin Energy Ltd.
Wesfarmers Ltd.
Woolworths Ltd.
Common Stocks and Other
Equity Interests (Continued)
$ 1,408,077
854,381
1,171,044
627,379
1,343,180
935,469
833,512
700,533
1,095,488
708,927
813,041
10,491,031
25,798
14,586
Belgium—1.9%
KBC Groep NV*
Umicore
30,980
Bermuda—1.0%
Seadrill Ltd.
1,120,699
685,636
1,806,335
9,090
13,536
12,640
10,369
13,319
31,732
112,093
8,412
18,568
11,365
7,145
30,112
79,020
19,844
Canada—14.6%
Agrium, Inc.
ATCO Ltd., Class I
Canadian National Railway Co.
Canadian Pacific Railway Ltd.
Enbridge, Inc.
Gildan Activewear, Inc.*
Ivanhoe Mines Ltd.*
Magna International, Inc.
Metro, Inc., Class A
National Bank of Canada
Niko Resources Ltd.
Shaw Communications, Inc., Class B
Silver Wheaton Corp.*
SNC-Lavalin Group, Inc.
Value
933,224
805,916
693,693
820,557
677,409
738,330
916,473
2,689,968
762,503
853,953
749,737
683,184
647,159
2,276,795
1,015,991
4,987
60,446
9,130
16,482
France—4.2%
PPR
Rhodia SA
Technip SA
Valeo SA*
1,228,000
681,000
20,289
22,569
Finland—1.6%
Metso Corp. Oyj
Sampo Oyj, Class A
12,010
10,662
8,151
310,784
15,916
304,000
296,000
207,400
429,000
190,000
186,500
134,000
399,500
182,500
338,000
133,000
Hong Kong—9.8%
China Everbright Ltd.
China Overseas Land & Investment Ltd.
China Taiping Insurance Holdings Co. Ltd.*
Citic Pacific Ltd.
Hang Lung Group Ltd.
Kingboard Chemical Holdings Ltd.
Li & Fung Ltd.
Lifestyle International Holdings Ltd.
MTR Corp. Ltd.
Tingyi (Cayman Islands) Holding Corp.
Wharf Holdings Ltd. (The)
35,900
176,000
75,000
8,700
47,700
33,300
11,300
Japan—5.4%
Chugai Pharmaceutical Co. Ltd.
Isuzu Motors Ltd.
Odakyu Electric Railway Co. Ltd.
Oriental Land Co. Ltd.
Sega Sammy Holdings, Inc.
SoftBank Corp.
Terumo Corp.
1,041,959
678,271
705,235
2,443,159
1,106,083
5,974,707
790,166
622,370
762,470
1,142,738
1,260,981
906,963
707,829
926,565
694,471
919,959
873,251
9,607,763
627,972
677,343
690,875
842,458
778,123
1,070,726
573,067
5,260,564
1,774,279
905,018
77,859
Luxembourg—0.7%
GAGFAH SA
2,679,297
79,178
44,423
15,952
Norway—2.7%
DnB NOR ASA
Telenor ASA
Yara International ASA
44,934
Portugal—0.7%
Jeronimo Martins SGPS SA
960,764
631,451
816,523
1,677,758
766,336
884,720
4,145,337
Germany—6.1%
Continental AG*
Fresenius Medical Care AG & Co. KGaA
Hochtief AG
Infineon Technologies AG*
Lanxess AG
14,331,668
China—2.7%
Yangzijiang Shipbuilding Holdings Ltd.
Yanlord Land Group Ltd.
$
682,628
1,080,965
712,460
834,290
2,627,715
1,592,215
673,252
See Notes to Financial Statements.
51
Schedule of Investments (Continued)
PowerShares DWA Developed Markets Technical Leaders Portfolio
October 31, 2010
Number
of Shares
Value
Common Stocks and Other
Equity Interests (Continued)
138,000
40,000
273,000
265,000
206,000
Singapore—4.9%
Fraser and Neave Ltd.
Jardine Cycle & Carriage Ltd.
Keppel Land Ltd.
SembCorp Marine Ltd.
Wilmar International Ltd.
10,693
77,303
Spain—1.7%
Industria de Diseno Textil SA
Sol Melia SA
49,469
1,338
1,304
4,343
7,933
475
Switzerland—5.3%
ABB Ltd.*
Banque Cantonale Vaudoise
Barry Callebaut AG*
Geberit AG*
Schindler Holding AG
SGS SA
Investment Abbreviations:
REIT—Real Estate Investment Trust
$
665,343
1,214,603
934,433
941,858
1,018,660
4,774,897
891,881
768,221
1,660,102
1,025,092
650,974
1,052,083
832,390
863,072
760,676
5,184,287
65,495
47,268
240,449
130,177
28,863
296,045
74,173
111,313
165,100
93,354
1,989,000
62,635
74,726
492,989
20,379
389,051
73,104
21,611
72,015
23,649
62,778
58,762
United Kingdom—24.0%
AMEC PLC
Antofagasta PLC
ARM Holdings PLC
Ashmore Group PLC
Autonomy Corp. PLC*
Barclays PLC
Burberry Group PLC
Cairn Energy PLC*
Carphone Warehouse Group PLC*
Compass Group PLC
Genting Singapore PLC*
IMI PLC
Kazakhmys PLC
Legal & General Group PLC
Next PLC
Old Mutual PLC
Petrofac Ltd.
SABMiller PLC
Serco Group PLC
Standard Chartered PLC
Travis Perkins PLC
Tullow Oil PLC
1,137,188
999,063
1,396,634
796,502
674,657
1,299,728
1,208,410
686,776
803,764
763,436
3,334,850
790,612
1,572,251
791,344
744,498
807,997
1,709,935
699,153
706,945
682,660
831,561
1,113,292
23,551,256
24,866
United States—2.0%
Domtar Corp.
Total Investments
(Cost $85,560,285)—100.0%
Other assets less liabilities—0.0%
Net Assets—100.0%
See Notes to Financial Statements.
52
1,976,378
97,952,656
27,664
$97,980,320
Notes to Schedule of Investments:
* Non-income producing security.
Schedule of Investments
PowerShares DWA Emerging Markets Technical Leaders Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests—100.0%
Brazil—7.1%
52,144 Cia Brasileira de Distribuicao Grupo
Pao de Acucar, Class A ADR
28,063 Cia de Bebidas das Americas ADR
151,006 Cia Paranaense de Energia ADR
124,286 Tam SA ADR
63,094 Ultrapar Participacoes SA ADR
196,978 Vivo Participacoes SA ADR
Common Stocks and Other
Equity Interests (Continued)
Luxembourg—0.6%
58,692 Ternium SA ADR
$
2,065,424
3,907,492
3,507,869
3,066,135
3,914,983
5,641,450
22,103,353
Cayman Islands—0.7%
19,662 New Oriental Education & Technology
Group, Inc. ADR*
Chile—1.3%
135,145 Lan Airlines SA ADR
China—11.8%
1,966,785 Air China Ltd., H-Shares*
2,932,455 China National Building Material Co. Ltd.,
H-Shares
126,101 Focus Media Holding Ltd. ADR*
882,330 Jiangxi Copper Co. Ltd., H-Shares
85,235 NetEase.com, Inc. ADR*
6,392,725 Nine Dragons Paper Holdings Ltd.
216,634 Solarfun Power Holdings Co. Ltd. ADR*
415,975 Weichai Power Co. Ltd., H-Shares
2,111,109
4,154,357
2,643,589
7,149,285
3,121,000
2,458,409
3,562,823
10,307,788
2,211,833
5,462,412
36,917,139
Hong Kong—1.4%
446,480 Hengan International Group Co. Ltd.
India—2.9%
25,812 HDFC Bank Ltd. ADR
89,156 ICICI Bank Ltd. ADR
494,309
1,784,330
10,728,955
9,731,880
1,563,145
3,767,725
11,324,980
1,271,580
4,721,425
2,900,250
3,639,040
2,017,770
854,080
1,535,220
2,244,700
2,915,700
1,509,200
997,600
1,538,700
820,200
761,400
994,700
425,500
652,800
1,800
1,174,300
2,931,800
2,539,100
2,609,800
1,507,600
1,061,565
347,000
1,802,000
1,081,900
4,076,400
1,790,900
2,340,500
2,487,900
Malaysia—18.3%
Affin Holdings Bhd
AirAsia Bhd*
AMMB Holdings Bhd
EON Capital Bhd*
Gamuda Bhd
Genting Bhd
Hong Leong Financial Group Bhd
IJM Corp. Bhd
Kuala Lumpur Kepong Bhd
Kulim (Malaysia) Bhd
Lingkaran Trans Kota Holdings Bhd
Malaysia Airports Holdings Bhd
Media Prima Bhd
MMC Corp. Bhd
Multi-Purpose Holdings Bhd
Parkson Holdings Bhd
Parkson Retail Group Ltd.
PPB Group Bhd
Proton Holdings Bhd
RHB Capital Bhd
SapuraCrest Petroleum Bhd
Sunway City Bhd
Tan Chong Motor Holdings Bhd
WCT Bhd
1,654,353
56,141
46,756
1,173,897
93,712
Peru—5.7%
Alicorp SA
Cia de Minas Buenaventura SA
Credicorp Ltd.
Grana y Montero SA
Sociedad Minera Cerro Verde SAA
4,464,444
4,687,822
3,152,516
1,397,517
1,632,602
4,246,638
1,993,830
1,180,378
2,946,079
2,603,627
2,747,011
1,541,392
1,649,019
2,212,492
1,877,781
3,813,358
$
2,011,962
2,322,974
2,314,568
3,065,449
2,241,113
1,879,177
2,752,013
2,231,711
1,799,827
2,707,665
2,035,083
2,048
2,290,857
2,091,787
2,513,395
1,811,720
2,873,234
1,919,836
2,141,218
2,849,378
2,792,112
3,275,269
2,313,810
4,257,506
2,470,709
56,952,459
4,204,306
9,152,266
Indonesia—10.6%
Astra International Tbk PT
Bank Central Asia Tbk PT
Bank CIMB Niaga Tbk PT*
Bank Negara Indonesia (Persero) Tbk PT
Bank Rakyat Indonesia (Persero) Tbk PT
Fajar Surya Wisesa TBK PT
Holcim Indonesia Tbk PT*
Indocement Tunggal Prakarsa Tbk PT
Indofood Sukses Makmur Tbk PT
International Nickel Indonesia Tbk PT
Perusahaan Gas Negara PT
Semen Gresik (Persero) Tbk PT
Tambang Batubara Bukit Asam Tbk PT
United Tractors Tbk PT
Value
3,137,280
2,892,623
5,885,645
2,675,585
3,279,920
17,871,053
Philippines—6.0%
17,235,565 Holcim Philippines, Inc.
20,537,280 JG Summit Holdings, Inc.
1,075,850 Jollibee Foods Corp.
4,126,600
12,245,031
2,213,220
18,584,851
Russia—2.5%
238,578 Mechel ADR
83,147 Wimm-Bill-Dann Foods OJSC ADR
5,618,512
2,108,608
7,727,120
Singapore—1.0%
2,471,560 Perusahaan Perkebunan London
Sumatra Indonesia Tbk PT
3,235,497
32,994,240
See Notes to Financial Statements.
53
Schedule of Investments (Continued)
PowerShares DWA Emerging Markets Technical Leaders Portfolio
October 31, 2010
Number
of Shares
Value
Common Stocks and Other
Equity Interests (Continued)
368,885
137,616
227,276
62,090
40,072
2,914
154,762
South Africa—5.8%
Aspen Pharmacare Holdings Ltd.*
Exxaro Resources Ltd.
JSE Ltd.
Kumba Iron Ore Ltd.
Naspers Ltd., Class N
Palabora Mining Co. Ltd.
Shoprite Holdings Ltd.
$
4,957,669
2,611,065
2,580,807
3,552,054
2,118,611
44,148
2,202,734
2,437,788
2,796,507
1,658,531
3,729,349
3,439,469
2,976,308
2,353,810
2,575,721
4,958,364
26,925,847
13,980,955
1,704,955
150,825
1,946,780
2,179,995
9,141,165
2,942,995
539,880
518,095
Thailand—8.6%
Asian Property Development PCL
Bangkok Dusit Medical Services PCL
Banpu PCL
BEC World PCL
Central Pattana PCL
Charoen Pokphand Foods PCL
Hana Microelectronics PCL
Kasikornbank PCL
Siam Commercial Bank PCL
3,077,862
2,289,007
3,893,881
2,159,120
2,017,841
7,104,374
2,454,132
2,106,937
1,771,339
26,874,493
128,346
673,272
489,851
535,935
554,776
591,546
754,918
Turkey—6.4%
Anadolu Efes Biracilik ve Malt Sanayii AS
Aygaz AS
Haci Omer Sabanci Holding AS
Koc Holding AS
Turcas Petrol AS
Turkiye Garanti Bankasi AS
Yapi ve Kredi Bankasi AS*
2,052,317
3,572,982
2,702,202
2,563,476
2,653,597
3,634,945
2,899,273
20,078,792
United Kingdom—0.7%
44,517 Anglo American PLC
Total Common Stocks and Other
Equity Interests
(Cost $280,549,990)
See Notes to Financial Statements.
54
Value
Money Market Fund—0.0%
18,067,088
South Korea—8.6%
91,590 Daewoo Shipbuilding & Marine
Engineering Co. Ltd.
8,586 Hyundai Heavy Industries Co. Ltd.
46,950 Hyundai Merchant Marine Co. Ltd.
24,685 Hyundai Motor Co.
35,507 Hyundai Steel Co.
74,590 Kia Motors Corp.
7,063 LG Household & Health Care Ltd.
28,304 OCI Materials Co. Ltd.
31,083 Samsung Engineering Co. Ltd.
Number
of Shares
2,071,750
312,037,682
163,803 Goldman Sachs Financial Square Prime
Obligations Institutional Share Class
(Cost $163,803)
$
163,803
Total Investments
(Cost $280,713,793)—100.0%
312,201,485
Liabilities in excess of other assets—(0.0%)
(115,084)
Net Assets—100.0%
Investment Abbreviations:
ADR—American Depositary Receipt
Notes to Schedule of Investments:
* Non-income producing security.
$312,086,401
Schedule of Investments
PowerShares Dynamic Developed International Opportunities Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks—97.8%
1,783
3,133
7,874
2,131
5,305
2,392
3,460
Austria—2.9%
Andritz AG
Erste Group Bank AG
EVN AG
Flughafen Wien AG
Strabag SE
Vienna Insurance Group AG Wiener
Versicherung Gruppe
Voestalpine AG
Common Stocks (Continued)
$
136,400
141,218
124,872
132,011
136,777
128,481
136,986
936,745
Bahamas—0.4%
Petrominerales Ltd.
136,736
43,007
16,771
493
2,270
4,328
228
Belgium—2.4%
Ageas
Agfa Gevaert NV*
Bekaert SA
Cie d’Entreprises CFE
Cie Maritime Belge SA
D’ieteren SA
132,044
97,669
150,029
141,190
130,777
124,065
22,958
14,299
4,402
Bermuda—1.2%
Catlin Group Ltd.
Lancashire Holdings Ltd.
Seadrill Ltd.
2,442
2,121
8,727
4,336
7,458
2,843
1,699
23,493
Canada—3.3%
ATCO Ltd., Class I
Bank of Montreal
CGI Group, Inc., Class A*
Encana Corp.
Sino-Forest Corp.*
Telus Corp.
Toronto-Dominion Bank (The)
Western Coal Corp.*
5,325
775,774
127,991
129,852
132,603
390,446
125,148
125,538
134,558
122,760
147,753
126,281
122,633
159,298
1,063,969
139,000
140,000
68,000
153,500
179,500
China—2.1%
China Construction Bank Corp., H-Shares
China Petroleum & Chemical Corp.
(Sinopec), H-Shares
Dongfeng Motor Group Co. Ltd., H-Shares
Fosun International
Soho China Ltd.
132,504
132,012
147,363
125,932
152,587
690,398
960
Denmark—0.3%
Topdanmark A/S*
Value
114,883
10,768
9,770
9,202
10,484
1,988
Finland—2.1%
Amer Sports Oyj, Class A
Huhtamaki Oyj
Kemira Oyj
Pohjola Bank PLC
Wartsila Oyj
$
144,875
123,572
135,189
132,530
139,261
675,427
2,486
7,009
1,666
983
1,587
1,369
6,503
7,661
5,372
5,661
21,128
2,405
3,647
2,627
3,393
2,454
5,516
5,133
1,457
2,026
2,787
4,597
France—9.2%
Arkema SA
AXA SA
BNP Paribas
Christian Dior SA
Cie Generale des Etablissements Michelin,
Class B
Ciments Francais SA
CNP Assurances
Credit Agricole SA
Faurecia*
France Telecom SA
Natixis*
Plastic Omnium SA
PSA Peugeot Citroen SA*
Publicis Groupe SA
Rallye SA
Renault SA*
Rhodia SA
SCOR SE
SEB SA
Societe Generale
Valeo SA*
Vivendi SA
160,429
127,423
121,683
142,024
126,060
125,640
129,612
125,381
144,552
135,845
129,415
144,739
144,972
130,679
132,164
136,177
153,104
126,064
139,468
121,156
149,601
130,950
2,977,138
5,971
1,076
1,007
1,953
1,833
1,985
10,760
1,023
2,611
18,761
2,369
3,681
1,454
2,143
894
1,890
1,155
Germany—8.0%
Aareal Bank AG*
Allianz SE
Axel Springer AG
BASF SE
Bayerische Motoren Werke (BMW) AG
Daimler AG*
Freenet AG
Generali Deutschland Holding AG
Hannover Rueckversicherung AG
Infineon Technologies AG*
Lanxess AG
Leoni AG*
Merck KGaA
MTU Aero Engines Holding AG
Muenchener Rueckversicherungs Gesellschaft AG
Rheinmetall AG
Siemens AG
145,649
134,658
149,551
141,913
131,231
130,857
136,183
133,215
131,915
147,485
164,634
133,892
120,952
129,269
139,603
135,969
131,766
See Notes to Financial Statements.
55
Schedule of Investments (Continued)
PowerShares Dynamic Developed International Opportunities Portfolio
October 31, 2010
Number
of Shares
Number
of Shares
Value
Common Stocks (Continued)
1,170
5,757
SMA Solar Technology AG
Tognum AG
Common Stocks (Continued)
$
137,900
139,909
2,616,551
24,845
8,105
Greece—0.8%
Piraeus Bank SA*
Public Power Corp. SA
129,150
135,745
264,895
43,000
12,000
19,000
4,500
353,000
38,000
Hong Kong—2.3%
Cathay Pacific Airways Ltd.
China Mobile Ltd.
Hang Lung Group Ltd.
Jardine Strategic Holdings Ltd.
PCCW Ltd.
Wheelock & Co. Ltd.
842,107
Ireland—0.0%
Anglo Irish Bank Corp. Ltd.*
115,650
122,209
126,098
117,720
134,783
133,083
749,543
455
133
63,000
13,584
Israel—1.6%
Delek Group Ltd.
Israel Corp. Ltd. (The)*
Israel Discount Bank Ltd., Class A*
Mizrahi Tefahot Bank Ltd.
6,108
8,870
61,869
5,551
23,388
8,230
13,024
89,754
Italy—3.3%
Assicurazioni Generali SpA
Autostrada Torino-Milano SpA
CIR-Compagnie Industriali Riunite SpA*
Danieli SpA
Enel SpA
Fiat SpA
Societa Iniziative Autostradali e Servizi SpA
Telecom Italia SpA
4,000
14,700
23,000
6,600
15
33,000
18,000
10,000
7,800
28,000
4,000
69,000
3,900
45,000
21,000
Japan—28.6%
Aisin Seiki Co. Ltd.
Alps Electric Co. Ltd.
Asahi Kasei Corp.
Bridgestone Corp.
Central Japan Railway Co.
Chuo Mitsui Trust Holdings, Inc.
Daicel Chemical Industries Ltd.
Daihatsu Motor Co. Ltd.
Daiichikosho Co. Ltd.
Denki Kagaku Kogyo Kabushiki Kaisha
Denso Corp.
DIC Corp.
EXEDY Corp.
Fuji Electric Holdings Co. Ltd.
Fuji Heavy Industries Ltd.
0
125,954
142,873
128,742
127,215
524,784
133,710
127,106
140,424
146,283
133,360
139,097
123,094
137,473
1,080,547
See Notes to Financial Statements.
56
Value
125,487
131,579
135,059
118,235
113,408
119,218
125,140
135,071
127,724
123,054
124,395
128,492
121,914
107,263
145,214
16,992
23,000
9,500
26,000
28,000
3,600
64,000
33,000
12,000
20,000
25,000
6,000
8,000
9,600
7,000
5,600
23,008
6,600
24,000
23,500
14,000
41,000
11,980
29,000
9,000
15,000
9,000
13,994
2,600
42,000
14,600
7,600
3,200
6,400
19,000
12,600
17,000
26,100
7,600
21,000
62
38
24,000
9,500
10,300
12,500
23,000
5,500
4,900
2,500
28,984
8,600
Fujitsu Ltd.
$
Gunma Bank Ltd. (The)
Heiwa Corp.
Hino Motors Ltd.
Hitachi Ltd.
Honda Motor Co. Ltd.
IHI Corp.
Isuzu Motors Ltd.
Kaken Pharmaceutical Co. Ltd.
Kaneka Corp.
Kayaba Industry Co. Ltd.
Keihin Corp.
Koito Manufacturing Co. Ltd.
Kuraray Co. Ltd.
KYORIN Holdings, Inc.
Lintec Corp.
Marubeni Corp.
Megmilk Snow Brand Co. Ltd.
Minebea Co. Ltd.
Mitsubishi Chemical Holdings Corp.
Mitsubishi Electric Corp.
Mitsui Mining & Smelting Co. Ltd.
Mochida Pharmaceutical Co. Ltd.
Morinaga Milk Industry Co. Ltd.
NGK Spark Plug Co. Ltd.
NHK Spring Co. Ltd.
Nippon Electric Glass Co. Ltd.
Nippon Shokubai Co. Ltd.
Nippon Telegraph & Telephone Corp.
Nishi-Nippon City Bank Ltd. (The)
Nissan Motor Co. Ltd.
Nissin Kogyo Co. Ltd.
Nitto Denko Corp.
Noritz Corp.
Rengo Co. Ltd.
Resona Holdings, Inc.
San-in Godo Bank Ltd. (The)
Sapporo Hokuyo Holdings, Inc.
Sega Sammy Holdings, Inc.
Sekisui Chemical Co. Ltd.
Seven Bank Ltd.
Sony Financial Holdings, Inc.
Sumitomo Bakelite Co. Ltd.
Sumitomo Corp.
Sumitomo Electric Industries Ltd.
Sumitomo Rubber Industries Ltd.
Sumitomo Trust & Banking Co. Ltd. (The)
Suzuki Motor Corp.
Takata Corp.
Takeda Pharmaceutical Co. Ltd.
Toagosei Co. Ltd.
Toho Holdings Co. Ltd.
116,022
115,357
119,590
112,328
126,530
131,263
121,564
127,002
131,397
123,650
146,493
127,747
104,581
137,415
109,150
125,696
144,532
116,596
131,695
121,074
131,223
124,705
129,839
118,088
125,363
127,188
115,866
132,035
117,976
114,711
128,690
128,884
119,578
117,274
121,006
100,425
117,554
107,575
123,978
133,482
111,531
132,092
129,907
120,298
131,323
134,544
125,922
134,035
120,204
117,008
127,019
120,325
Schedule of Investments (Continued)
PowerShares Dynamic Developed International Opportunities Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks (Continued)
11,100
43,000
29,000
5,300
7,300
3,000
23,000
16,000
Tokai Rubber Industries Ltd.
Tosoh Corp.
Toyo Ink Manufacturing Co. Ltd.
Toyoda Gosei Co. Ltd.
TS Tech Co. Ltd.
Tsuruha Holdings, Inc.
Yokohama Rubber Co. Ltd. (The)
Zeon Corp.
Common Stocks (Continued)
$
130,086
114,773
118,088
114,093
119,627
129,050
115,071
131,893
9,283,264
Jersey Island—0.4%
Beazley PLC
130,656
4,966
8,983
8,035
3,027
2,485
3,939
Netherlands—2.4%
ASM International NV*
BinckBank NV
Koninklijke (Royal) KPN NV
Koninklijke Boskalis Westminster NV
Koninklijke DSM NV
Koninklijke Philips Electronics NV
126,587
158,815
134,014
122,431
132,699
118,968
6,305
5,483
6,563
7,729
Norway—1.6%
Kongsberg Gruppen ASA
Leroy Seafood Group ASA
Subsea 7, Inc.*
Telenor ASA
67,706
793,514
130,616
143,380
137,187
123,958
535,141
147,648
27,556
11,676
111,817
Portugal—1.7%
Banco Comercial Portugues SA, Class R
Banco Espirito Santo SA
Semapa-Sociedade de Investimento e
Gestao SGPS SA
Sonae
Value
134,211
136,732
137,780
132,102
540,825
36,000
Singapore—0.4%
SembCorp Industries Ltd.
127,394
4,985
8,929
24,657
19,425
17,562
23,019
4,542
8,266
Spain—3.1%
Abengoa SA
Banco Bilbao Vizcaya Argentaria SA
Banco de Sabadell SA
Banco Popular Espanol SA
Bankinter SA
Criteria Caixacorp SA
Endesa SA
Gas Natural SDG SA
137,880
117,279
119,776
125,464
116,872
129,800
125,690
120,864
5,143
4,017
6,532
11,983
Sweden—3.7%
Electrolux AB, Series B
Hoganas AB, Class B
NCC AB, Class B
Nordea Bank AB
993,625
124,266
140,796
138,829
131,453
8,634
8,326
3,870
6,011
13,996
Saab AB, Class B
Svenska Cellulosa AB, Class B
Svenska Handelsbanken AB, Class A
Tele2 AB, Class B
Trelleborg AB, Class B
$
134,441
128,652
126,062
131,791
131,408
1,187,698
8,523
2,771
358
229
3,910
361
3,628
1,679
4,221
520
Switzerland—4.0%
Clariant AG*
Credit Suisse Group AG
Flughafen Zuerich AG
Forbo Holding AG
Garmin Ltd.
Helvetia Holding AG
Noble Corp.
Pargesa Holding SA
Tyco Electronics Ltd.
Zurich Financial Services AG
144,202
114,531
132,043
123,057
128,404
127,277
125,275
133,244
133,721
127,370
1,289,124
19,610
2,341
29,132
25,062
54,601
128,616
24,584
22,998
19,445
119,109
19,794
52,371
22,264
15,578
26,665
20,268
15,402
55,140
76,053
30,630
15,417
55,929
42,348
65,213
60,427
27,044
42,416
19,794
49,470
10,572
United Kingdom—12.0%
Amlin PLC
AstraZeneca PLC
Balfour Beatty PLC
Barclays PLC
BT Group PLC
Cable & Wireless Communications PLC
Carillion PLC
Dairy Crest Group PLC
Davis Service Group PLC (The)
Debenhams PLC*
Drax Group PLC
DS Smith PLC
FirstGroup PLC
IG Group Holdings PLC
Intermediate Capital Group PLC
International Power PLC
Investec PLC
Kesa Electricals PLC
Legal & General Group PLC
Melrose PLC
Mondi PLC
Old Mutual PLC
Pace PLC
Rank Group PLC
Senior PLC
St. James’s Place PLC
Stagecoach Group PLC
Tullett Prebon PLC
Vodafone Group PLC
WS Atkins PLC
127,479
117,131
128,876
110,030
134,174
109,910
135,248
136,193
129,267
145,394
120,479
140,751
145,195
131,629
137,616
135,224
122,680
139,730
122,080
137,952
128,173
116,156
138,459
133,143
127,913
119,553
141,733
125,321
134,339
127,276
3,899,104
Total Common Stocks
(Cost $28,411,781)
31,778,181
See Notes to Financial Statements.
57
Schedule of Investments (Continued)
PowerShares Dynamic Developed International Opportunities Portfolio
October 31, 2010
Number
of Shares
Value
Preferred Stocks—2.1%
1,396
2,507
5,310
1,006
Germany—1.7%
Draegerwerk AG & Co. KGAA
Porsche Automobil Holding SE
ProSiebenSat.1 Media AG
Volkswagen AG
6,665
Italy—0.4%
EXOR SpA
131,359
Total Preferred Stocks
(Cost $500,663)
667,706
$
116,903
128,281
140,153
151,010
536,347
Rights—0.0%
7,874
Austria—0.0%
EVN AG, expiring 11/12/10*
(Cost $0)
Total Investments
(Cost $28,912,444)—99.9%
Other assets less liabilities—0.1%
Net Assets—100.0%
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
58
449
32,446,336
33,784
$32,480,120
Schedule of Investments
PowerShares Emerging Markets Infrastructure Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests—99.8%
Australia—0.7%
30,945 Leighton Holdings Ltd.
174,398
119,534
226,400
70,100
178,700
453,900
195,922
46,100
Brazil—11.5%
Cia Siderurgica Nacional SA ADR
Gerdau SA ADR
Iochpe-Maxion SA
Lupatech SA*
MMX Mineracao e Metalicos SA*
Paranapanema SA*
Vale SA ADR*
Weg SA
Common Stocks and Other
Equity Interests (Continued)
$
1,113,195
2,943,838
1,558,723
3,282,610
867,651
1,440,849
1,439,296
6,296,933
603,201
2,988,000
1,614,500
1,883,500
2,600,500
287,500
Chile—2.1%
66,236 CAP SA
China—19.7%
972,000 Angang Steel Co. Ltd., H-Shares
776,000 Anhui Conch Cement Co. Ltd., H-Shares
945,000 China Communications Construction
Co. Ltd., H-Shares
1,173,000 China Molybdenum Co. Ltd., H-Shares
1,074,000 China National Building Material Co. Ltd.,
H-Shares
1,624,000 Chongqing Iron & Steel Co. Ltd., H-Shares*
1,026,400 Dongfang Electric Corp. Ltd., H-Shares
1,214,000 First Tractor Co. Ltd., H-Shares
476,000 Guangzhou Shipyard International Co. Ltd.,
H-Shares
2,040,000 Harbin Power Equipment Co. Ltd.,
H-Shares
4,930,000 Hunan Non-Ferrous Metal Corp. Ltd.,
H-Shares*
1,242,000 Jiangxi Copper Co. Ltd., H-Shares
8,976,000 Shanghai Electric Group Co. Ltd., H-Shares
4,808,607
3,382,117
France—4.8%
22,653 Alstom SA
960 Areva SA CI
114,316 Vinci SA
903,274
1,125,746
2,618,397
456,680
4,991,458
1,166,660
970,138
2,747,262
2,200,353
3,460,547
6,009,241
852,520
3,305,774
1,001,021
2,851,457
714,126
8,724,898
1,426,438
1,547,792
2,974,230
3,844,600
1,525,600
891,200
287,400
1,176,800
Malaysia—4.4%
Dialog Group Bhd
Gamuda Bhd
IJM Corp. Bhd
Lafarge Malayan Cement Bhd
WCT Bhd
Mexico—1.0%
576,700 Empresas ICA SAB de CV*
Poland—1.4%
30,369 PBG SA
25,792
124,940
24,586
29,306
172,179
18,028
38,163
Russia—4.5%
Evraz Group SA GDR*
LSR Group OJSC GDR*
Magnitogorsk Iron & Steel Works GDR
Mechel ADR
MMC Norilsk Nickel ADR
Novolipetsk Steel OJSC GDR
Severstal GDR*
1,606,293
1,863,179
1,612,552
738,936
1,168,668
1,141,661
438,719
6,098,116
5,268,058
994,801
665,489
1,521,918
2,308,782
782,014
1,061,990
307,325
690,156
3,211,138
617,099
514,437
7,184,159
Singapore—3.2%
1,176,000 Hyflux Ltd.
2,155,000 Midas Holdings Ltd.
173,000 SembCorp Marine Ltd.
2,862,198
1,631,756
614,874
5,108,828
888,291
7,678,496
India—4.3%
113,097 Larsen & Toubro Ltd. GDR
60,511 Mahindra & Mahindra Ltd. GDR
43,018 Sterlite Industries (India) Ltd. ADR
$
6,989,628
1,527,155
3,253,228
31,430,139
Egypt—0.6%
19,520 Orascom Construction Industries
Indonesia—5.5%
Aneka Tambang Tbk PT
Indocement Tunggal Prakarsa Tbk PT
International Nickel Indonesia Tbk PT
Semen Gresik (Persero) Tbk PT
United Tractors Tbk PT
Israel—1.9%
178,268 Ormat Industries Ltd.
634,371 Shikun & Binui Ltd.
18,433,101
Cayman Islands—3.0%
8,961,000 Lonking Holdings Ltd.
Value
85,605
353,783
279,555
524,597
347,174
155,203
199,250
South Africa—9.4%
African Rainbow Minerals Ltd.
Aveng Ltd.
Group Five Ltd.
Pretoria Portland Cement Co. Ltd.
Raubex Group Ltd.
Reunert Ltd.
Wilson Bayly Holmes-Ovcon Ltd.
2,198,988
2,237,507
1,575,173
2,518,530
1,246,564
1,427,759
3,877,285
15,081,806
6,928,348
See Notes to Financial Statements.
59
Schedule of Investments (Continued)
PowerShares Emerging Markets Infrastructure Portfolio
October 31, 2010
Number
of Shares
Value
Common Stocks and Other
Equity Interests (Continued)
Spain—0.1%
2,536 Acciona SA
$
222,767
Sweden—1.9%
149,377 Atlas Copco AB, Class A
3,110,211
Switzerland—5.1%
264,048 ABB Ltd. ADR*
114,124 Foster Wheeler AG*
5,470,232
2,672,784
8,143,016
2,273,326
2,474,408
1,405,000
2,527,000
2,418,505
Taiwan—6.4%
China Steel Corp.
Chung Hung Steel Corp.*
CTCI Corp.
Taiwan Cement Corp.
Tung Ho Steel Enterprise Corp.
2,305,138
1,321,465
1,580,662
2,690,273
2,262,795
10,160,333
75,973
38,222
39,216
140,167
United States—8.3%
Caterpillar, Inc.
Fluor Corp.
ITT Corp.
KBR, Inc.
5,971,478
1,841,918
1,850,603
3,560,242
13,224,241
Total Common Stocks and Other
Equity Interests
(Cost $128,548,180)
159,417,111
Money Market Fund—0.1%
182,367
Goldman Sachs Financial Square Prime
Obligations Institutional Share Class
(Cost $182,367)
Total Investments
(Cost $128,730,547)—99.9%
Other assets less liabilities—0.1%
Net Assets—100.0%
Investment Abbreviations:
ADR—American Depositary Receipt
CI—Investment Certificate
GDR—Global Depositary Receipt
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
60
182,367
159,599,478
98,119
$159,697,597
Schedule of Investments
PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests—100.0%
8,087
55,277
32,682
48,602
53,532
17,113
62,296
93,821
25,739
23,358
9,405
40,766
8,117
28,547
5,505
4,449
145,070
6,674
28,200
40,452
167,234
49,516
656,750
35,177
61,396
91,410
2,391
20,075
7,510
26,912
26,870
92,847
61,105
5,034
37,126
6,674
14,215
59,818
19,721
15,818
11,043
5,787
6,488
62,790
51,515
31,692
42,789
192,420
16,789
Australia—41.7%
AGL Energy Ltd.
Alumina Ltd.
Amcor Ltd.
AMP Ltd.
Australia & New Zealand Banking
Group Ltd.
AXA Asia Pacific Holdings Ltd.
BHP Billiton Ltd.
BlueScope Steel Ltd.
Boral Ltd.
Brambles Ltd.
Caltex Australia Ltd.
CFS Retail Property Trust REIT
Coca-Cola Amatil Ltd.
Commonwealth Bank of Australia
Crown Ltd.
CSL Ltd.
Dexus Property Group REIT
DuluxGroup Ltd.*
Fairfax Media Ltd.
Foster’s Group Ltd.
Goodman Group REIT
GPT Group REIT
GPT Group-In Specie*
Incitec Pivot Ltd.
Insurance Australia Group Ltd.
Intoll Group
Leighton Holdings Ltd.
Lend Lease Group
Macquarie Group Ltd.
MAP Group
Metcash Ltd.
Mirvac Group REIT
National Australia Bank Ltd.
Newcrest Mining Ltd.
OneSteel Ltd.
Orica Ltd.
Origin Energy Ltd.
Qantas Airways Ltd.*
QBE Insurance Group Ltd.
Rio Tinto Ltd.
Santos Ltd.
Sims Metal Management Ltd.
Sonic Healthcare Ltd.
Stockland REIT
Suncorp-Metway Ltd.
TABCORP Holdings Ltd.
Tatts Group Ltd.
Telstra Corp. Ltd.
Toll Holdings Ltd.
Value
Common Stocks and Other
Equity Interests (Continued)
$
127,544
109,991
215,275
254,396
1,301,832
91,251
2,559,742
183,467
110,757
145,844
107,122
74,323
96,828
1,368,309
44,949
143,169
118,024
17,663
40,080
231,562
103,271
135,414
0
128,267
228,685
134,848
86,012
141,875
266,479
80,456
115,097
117,856
1,524,930
197,176
98,256
164,724
222,101
166,519
332,098
1,282,092
136,603
93,198
69,255
232,031
464,554
229,256
104,854
503,589
102,031
20,316
20,319
3,102
47,848
49,759
5,412
24,050
3,423
Transurban Group
Wesfarmers Ltd.
Wesfarmers Ltd. - PPS
Westfield Group REIT
Westpac Banking Corp.
Woodside Petroleum Ltd.
Woolworths Ltd.
WorleyParsons Ltd.
39,200
Cayman Islands—0.1%
China Zhongwang Holdings Ltd.
$
104,348
660,039
101,525
580,630
1,107,165
230,761
668,318
77,002
18,333,443
48,000
36,500
655,612
China—0.2%
Country Garden Holdings Co.
Fosun International
Semiconductor Manufacturing
International Corp.*
23,361
16,965
29,945
54,971
101,881
36,662
96,932
47,904
29,673
4,986
10,721
47,345
27,979
44,406
14,000
4,928
15,799
22,427
16,060
20,580
55,819
31,184
32,000
103,948
4,800
3,500
13,890
12,500
151,151
27,667
36,500
22,694
76,602
94,454
17,000
11,439
Hong Kong—16.2%
Bank of East Asia Ltd. (The)
BOC Hong Kong (Holdings) Ltd.
Cathay Pacific Airways Ltd.
Cheung Kong (Holdings) Ltd.
Cheung Kong Infrastructure Holdings Ltd.
Chinese Estates Holdings Ltd.
CLP Holdings Ltd.
Esprit Holdings Ltd.
Foxconn International Holdings Ltd.*
Great Eagle Holdings Ltd.
Guoco Group Ltd.
Hang Lung Group Ltd.
Hang Lung Properties Ltd.
Hang Seng Bank Ltd.
Henderson Land Development Co. Ltd.
Hong Kong & China Gas Co. Ltd.
Hongkong Electric Holdings Ltd.
Hongkong Land Holdings Ltd.
Hutchison Whampoa Ltd.
Jardine Matheson Holdings Ltd.
Jardine Strategic Holdings Ltd.
Kerry Properties Ltd.
Kingboard Chemical Holdings Ltd.
Lenovo Group Ltd.
Li & Fung Ltd.
Link (The) REIT
MTR Corp. Ltd.
New World Development Co. Ltd.
Noble Group Ltd.
NWS Holdings Ltd.
Orient Overseas International Ltd.
156,536
303,839
128,839
451,661
20,839
18,310
384,755
150,681
32,765
41,897
60,263
104,854
109,787
234,924
146,141
134,502
198,111
220,800
1,024,422
216,000
91,560
77,044
60,788
97,878
146,145
112,528
86,358
151,182
135,742
40,086
100,264
See Notes to Financial Statements.
61
Schedule of Investments (Continued)
PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
446,029
28,000
43,895
76,000
32,888
33,520
14,000
96,000
25,236
17,000
19,736
PCCW Ltd.
Shangri-La Asia Ltd.
Sino Land Co. Ltd.
SJM Holdings Ltd.
Sun Hung Kai Properties Ltd.
Swire Pacific Ltd., Class A
Tingyi (Cayman Islands) Holding Corp.
TPV Technology Ltd.
Wharf Holdings Ltd. (The)
Wheelock & Co. Ltd.
Yue Yuen Industrial (Holdings) Ltd.
19,310
141,480
20,351
New Zealand—0.9%
Fletcher Building Ltd.
Telecom Corp. of New Zealand Ltd.
Vector Ltd.
59,000
10,000
37,000
38,000
167,000
3,000
27,000
40,000
40,000
21,000
18,000
37,000
26,000
171,000
22,000
22,000
21,000
Singapore—6.7%
CapitaLand Ltd.
City Developments Ltd.
DBS Group Holdings Ltd.
Fraser and Neave Ltd.
Golden Agri-Resources Ltd.
Jardine Cycle & Carriage Ltd.
Keppel Corp. Ltd.
Neptune Orient Lines Ltd.*
Oversea-Chinese Banking Corp. Ltd.
SembCorp Industries Ltd.
Singapore Airlines Ltd.
Singapore Press Holdings Ltd.
Singapore Technologies Engineering Ltd.
Singapore Telecommunications Ltd.
StarHub Ltd.
United Overseas Bank Ltd.
Wilmar International Ltd.
Common Stocks and Other
Equity Interests (Continued)
$
170,304
62,990
91,614
112,937
563,385
475,627
38,105
59,069
165,694
59,537
70,774
7,109,537
121,248
221,818
37,821
380,887
177,331
98,281
397,373
183,210
83,871
91,095
208,198
66,139
278,462
74,313
220,019
118,640
66,494
408,260
45,045
316,848
103,844
2,937,423
845
1,776
3,780
2,210
3,900
1,632
834
1,049
4,170
5,480
3,120
5,470
South Korea—34.2%
CJ Corp.
Daelim Industrial Co. Ltd.
Daewoo Engineering & Construction Co. Ltd.
Daewoo Shipbuilding & Marine
Engineering Co. Ltd.
Dongkuk Steel Mill Co. Ltd.
Doosan Corp.
Doosan Heavy Industries and
Construction Co. Ltd.
GS Engineering & Construction Corp.
GS Holdings
Hana Financial Group, Inc.
Hanwha Chemical Corp.
Hanwha Corp.
See Notes to Financial Statements.
62
Value
59,550
144,574
35,440
58,822
89,767
219,727
65,668
89,029
218,645
155,597
84,706
206,355
477
13,040
1,305
1,306
1,344
2,140
1,140
6,680
967
5,440
6,134
147
9,200
13,090
9,890
889
1,440
4,820
1,373
8,480
1,731
866
8,854
7,970
5,424
3,600
5,970
232
1,257
2,072
4,093
755
3,207
965
5,130
893
13,870
239
1,772
10,808
5,430
1,917
5,554
5,510
5,700
16,780
Honam Petrochemical Corp.
$ 105,129
Hynix Semiconductor, Inc.*
268,275
Hyosung Corp.
144,968
Hyundai Engineering &
Construction Co. Ltd.
87,395
Hyundai Heavy Industries Co. Ltd.
437,748
Hyundai Merchant Marine Co. Ltd.
75,597
Hyundai Mobis
283,670
Hyundai Motor Co.
1,009,198
Hyundai Steel Co.
93,671
Industrial Bank of Korea
78,077
KB Financial Group, Inc.
272,562
KCC Corp.
48,728
Kia Motors Corp.
367,101
Korea Electric Power Corp.*
344,336
Korea Exchange Bank
117,775
Korea Express Co. Ltd.*
56,251
Korea Gas Corp.
59,059
Korea Kumho Petrochemical Co. Ltd.*
318,692
Korean Air Lines Co. Ltd.*
87,364
KT Corp.
334,603
KT&G Corp.
106,298
LG Chem Ltd.
267,054
LG Corp.
633,412
LG Display Co. Ltd.
272,690
LG Electronics, Inc.
477,688
LG International Corp.
114,055
LG Uplus Corp.
38,730
Lotte Shopping Co. Ltd.
94,944
LS Corp.
127,348
POSCO
850,712
Samsung C&T Corp.
240,069
Samsung Card Co. Ltd.
36,165
Samsung Electronics Co. Ltd.
2,123,275
Samsung Fire & Marine Insurance Co. Ltd.
165,514
Samsung Heavy Industries Co. Ltd.
143,836
Samsung SDI Co. Ltd.
122,611
Shinhan Financial Group Co. Ltd.
536,804
Shinsegae Co. Ltd.
121,279
SK Energy Co. Ltd.
237,789
SK Holdings Co. Ltd.
1,123,782
SK Networks Co. Ltd.
52,116
SK Telecom Co. Ltd.
290,467
S-Oil Corp.
342,544
STX Corp. Ltd.*
168,936
STX Offshore & Shipbuilding Co. Ltd.
137,783
Woori Finance Holdings Co. Ltd.
211,008
15,054,988
Total Common Stocks and Other
Equity Interests
(Cost $37,176,755)
43,941,520
Schedule of Investments (Continued)
PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio
October 31, 2010
Number
of Shares
Value
Rights—0.0%
3,521
Australia—0.0%
TABCORP Holdings Ltd.,
expiring 11/10/10*
(Cost $0)
$
3,624
Warrants—0.0%
4,516
Hong Kong—0.0%
Henderson Land Development Co. Ltd.,
expiring 06/01/11*
(Cost $0)
1,748
Money Market Fund—0.1%
64,215
Goldman Sachs Financial Square Prime
Obligations Institutional Share Class
(Cost $64,215)
Total Investments
(Cost $37,240,970)—100.1%
Liabilities in excess of other assets—(0.1%)
Net Assets—100.0%
64,215
44,011,107
(51,146)
$43,959,961
Investment Abbreviations:
PPS—Price Protected Shares
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
63
Schedule of Investments
PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests—99.5%
3,987
28,702
16,209
24,547
26,717
8,484
31,216
46,097
11,413
11,584
4,688
21,714
4,012
14,279
4,365
2,401
71,944
3,311
13,986
20,293
82,522
24,184
231,466
17,152
30,325
45,333
1,183
9,954
3,695
13,423
13,471
43,584
30,564
2,473
18,614
3,311
7,152
29,664
9,863
7,860
5,389
2,945
3,369
31,503
25,546
15,865
21,507
94,979
8,272
Australia—5.0%
AGL Energy Ltd.
Alumina Ltd.
Amcor Ltd.
AMP Ltd.
Australia & New Zealand Banking
Group Ltd.
AXA Asia Pacific Holdings Ltd.
BHP Billiton Ltd.
BlueScope Steel Ltd.
Boral Ltd.
Brambles Ltd.
Caltex Australia Ltd.
CFS Retail Property Trust REIT
Coca-Cola Amatil Ltd.
Commonwealth Bank of Australia
Crown Ltd.
CSL Ltd.
Dexus Property Group REIT
DuluxGroup Ltd.*
Fairfax Media Ltd.
Foster’s Group Ltd.
Goodman Group REIT
GPT Group REIT
GPT Group-In Specie*
Incitec Pivot Ltd.
Insurance Australia Group Ltd.
Intoll Group
Leighton Holdings Ltd.
Lend Lease Group
Macquarie Group Ltd.
MAP Group
Metcash Ltd.
Mirvac Group REIT
National Australia Bank Ltd.
Newcrest Mining Ltd.
OneSteel Ltd.
Orica Ltd.
Origin Energy Ltd.
Qantas Airways Ltd.*
QBE Insurance Group Ltd.
Rio Tinto Ltd.
Santos Ltd.
Sims Metal Management Ltd.
Sonic Healthcare Ltd.
Stockland REIT
Suncorp-Metway Ltd.
TABCORP Holdings Ltd.
Tatts Group Ltd.
Telstra Corp. Ltd.
Toll Holdings Ltd.
See Notes to Financial Statements.
64
Value
Common Stocks and Other
Equity Interests (Continued)
$
62,881
57,111
106,768
128,486
649,724
45,239
1,282,665
90,143
49,111
72,329
53,396
39,588
47,859
684,418
35,641
77,264
58,531
8,763
19,878
116,165
50,959
66,137
0
62,542
112,953
66,875
42,556
70,347
131,111
40,130
57,703
55,324
762,752
96,864
49,263
81,720
111,746
82,578
166,091
637,074
66,663
47,428
35,962
116,415
230,370
114,765
52,703
248,573
50,271
8,972
10,133
1,536
23,644
25,008
2,696
11,979
1,776
Transurban Group
Wesfarmers Ltd.
Wesfarmers Ltd. - PPS
Westfield Group REIT
Westpac Banking Corp.
Woodside Petroleum Ltd.
Woolworths Ltd.
WorleyParsons Ltd.
$
46,082
329,159
50,272
286,917
556,441
114,954
332,880
39,952
9,150,492
4,002
6,221
21,599
3,533
776
959
8,390
572
566
3,893
2,959
Austria—0.5%
Erste Group Bank AG
Immoeast AG*
Immofinanz AG*
OMV AG
Raiffeisen International Bank Holding AG
Strabag SE
Telekom Austria AG
Verbund AG
Vienna Insurance Group AG Wiener
Versicherung Gruppe
Voestalpine AG
Wienerberger AG*
180,388
0
84,958
131,823
43,682
24,725
128,274
22,829
30,401
154,129
49,764
850,973
180,071
4,540
5
3,051
416
500
2,261
36,264
57
1,002
351
4,558
325
805
1,383
2,423
Belgium—1.1%
Ageas
Anheuser-Busch InBev NV
Banque Nationale de Belgique
Belgacom SA
Cie Nationale a Portefeuille
Colruyt SA
Delhaize Group SA
Dexia SA*
D’ieteren SA
Groupe Bruxelles Lambert SA
KBC Ancora*
KBC Groep NV*
Mobistar SA
Solvay SA
UCB SA
Umicore
552,870
284,177
25,135
119,542
22,148
28,132
157,725
161,240
31,016
88,616
7,874
198,006
21,484
85,135
53,573
113,897
1,950,570
1,843
Bermuda—0.0%
Frontline Ltd.
1,165
3,046
1,146
7,136
Canada—5.4%
Agrium, Inc.
Alimentation Couche Tard, Inc., Class B
ATCO Ltd., Class I
Bank of Montreal
52,294
103,288
72,498
58,730
422,368
Schedule of Investments (Continued)
PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
10,588
4,707
4,764
251
15,061
6,733
3,735
1,807
4,311
3,569
6,678
2,267
1,416
1,564
5,355
2,898
3,109
2,113
1,638
3,441
12,765
258
2,565
2,103
1,179
3,003
3,363
3,946
1,293
2,372
1,408
4,095
3,718
2,105
2,956
921
24,423
1,677
2,037
4,772
3,599
1,153
8,694
3,951
1,880
1,544
2,057
4,441
12,364
1,129
3,685
Bank of Nova Scotia
$
Barrick Gold Corp.
BCE, Inc.
Bombardier, Inc., Class A
Bombardier, Inc., Class B
Brookfield Asset Management, Inc., Class A
Brookfield Properties Corp.
Cameco Corp.
Canadian Imperial Bank of Commerce
Canadian National Railway Co.
Canadian Natural Resources Ltd.
Canadian Pacific Railway Ltd.
Canadian Tire Corp. Ltd., Class A
Canadian Utilities Ltd., Class A
Celestica, Inc.*
Cenovus Energy, Inc.
CGI Group, Inc., Class A*
CI Financial Corp.
Empire Co. Ltd., Class A
Enbridge, Inc.
Encana Corp.
Fairfax Financial Holdings Ltd.
Finning International, Inc.
Fortis, Inc.
George Weston Ltd.
Goldcorp, Inc.
Great-West Lifeco, Inc.
Husky Energy, Inc.
IGM Financial, Inc.
Imperial Oil Ltd.
Intact Financial Corp.
Jean Coutu Group PJC, Inc. (The), Class A
Kinross Gold Corp.
Loblaw Cos. Ltd.
Magna International, Inc.
Manitoba Telecom Services, Inc.
Manulife Financial Corp.
Metro, Inc., Class A
National Bank of Canada
Nexen, Inc.
Onex Corp.
Potash Corp. of Saskatchewan, Inc.
Power Corp. of Canada
Power Financial Corp.
Quebecor, Inc., Class B
Research In Motion Ltd.*
RioCan REIT
Rogers Communications, Inc., Class B
Royal Bank of Canada
Saputo, Inc.
Shaw Communications, Inc., Class B
Value
Common Stocks and Other
Equity Interests (Continued)
568,834
227,209
160,158
1,251
75,187
200,349
64,672
56,025
331,417
231,690
243,666
148,104
82,920
75,295
45,204
80,823
47,936
44,332
93,956
190,750
361,399
105,773
60,445
66,897
94,948
134,391
88,041
98,185
54,841
91,421
63,911
36,902
67,045
90,149
267,946
26,365
309,848
77,126
134,379
101,761
105,643
167,126
243,152
119,237
67,969
88,018
46,594
162,173
660,847
43,247
79,197
2,012
9,476
6,728
9,225
4,776
1,122
914
3,676
8,835
3,151
6,701
4,977
4,212
Shoppers Drug Mart Corp.
Sun Life Financial, Inc.
Suncor Energy, Inc.
Talisman Energy, Inc.
Teck Resources Ltd., Class B
Telus Corp.
Telus Corp. NVTG
Thomson Reuters Corp.
Toronto-Dominion Bank (The)
TransAlta Corp.
TransCanada Corp.
Viterra, Inc.*
Yamana Gold, Inc.
$
76,715
268,747
216,068
167,620
214,019
49,837
38,748
140,704
637,707
63,943
248,061
47,784
46,441
9,958,032
19,600
26,000
18,000
306,751
Cayman Islands—0.0%
China Zhongwang Holdings Ltd.
China—0.0%
Country Garden Holdings Co.
Fosun International
Semiconductor Manufacturing
International Corp.*
11,681
9,190
14,767
25,720
49,677
11
30
1,571
641
15,406
2,976
3,196
287
1,726
Denmark—0.8%
A P Moller - Maersk A/S, Class A
A P Moller - Maersk A/S, Class B
Carlsberg A/S, Class B
Danisco A/S
Danske Bank A/S*
Novo Nordisk A/S, Class B
Torm A/S*
Tryg AS
Vestas Wind Systems A/S*
2,823
6,083
2,436
1,252
2,938
4,103
57,928
3,292
3,651
2,913
8,655
931
23,282
17,234
Finland—1.3%
Elisa Oyj
Fortum Oyj
Kesko Oyj, Class B
Kone Oyj, Class B
Metso Corp. Oyj
Neste Oil Oyj
Nokia Oyj
Outokumpu Oyj
Pohjola Bank PLC
Rautaruukki Oyj
Sampo Oyj, Class A
Sanoma Oyj
Stora Enso Oyj, Class R
UPM-Kymmene Oyj
92,330
260,031
171,603
55,201
409,219
312,869
24,032
14,444
55,016
1,394,745
60,307
172,223
120,602
66,996
139,126
67,977
624,790
59,070
46,153
57,776
242,156
20,950
231,048
286,245
See Notes to Financial Statements.
65
Schedule of Investments (Continued)
PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
1,532
1,903
Wartsila Oyj
YIT Oyj
Common Stocks and Other
Equity Interests (Continued)
$
107,318
45,943
2,348,680
2,889
297
8,397
2,342
47,953
2,349
1,629
1,027
60,382
15,410
5,413
2,111
15,055
1,198
1,031
11,621
2,843
2,161
282
4,707
26,943
4,742
2,889
1,836
3,379
127
1,088
165
629
576
1,242
469
51,396
20,536
288
313
185
577
556
686
4,173
3,612
947
1,988
2,792
France—10.9%
Accor SA
Aeroports de Paris
Air France-KLM*
Air Liquide SA
Alcatel-Lucent*
Alstom SA
Arkema SA
Atos Origin SA*
AXA SA
BNP Paribas
Bouygues SA
Cap Gemini
Carrefour SA
Casino Guichard-Perrachon SA
Christian Dior SA
Cie de Saint-Gobain
Cie Generale de Geophysique-Veritas*
Cie Generale des Etablissements Michelin,
Class B
Ciments Francais SA
CNP Assurances
Credit Agricole SA
DANONE SA
Edenred*
Eiffage SA
Electricite de France SA
Eramet
Essilor International SA
Esso SA Francaise
Euler Hermes SA*
Eurazeo
Faurecia*
Fonciere des Regions REIT
France Telecom SA
GDF Suez
Gecina SA REIT
Hermes International
ICADE REIT
Imerys SA
JC Decaux SA*
Klepierre REIT
Lafarge SA
Lagardere SCA
Legrand SA
L’Oreal SA
LVMH Moet Hennessy Louis Vuitton SA
See Notes to Financial Statements.
66
Value
118,314
25,193
153,065
302,533
168,091
118,384
105,124
47,426
1,097,739
1,125,535
238,233
107,549
811,470
112,394
148,959
542,062
66,187
171,654
25,881
93,816
440,951
299,722
60,432
90,591
154,631
43,962
72,556
22,131
59,143
43,712
33,420
53,453
1,233,331
818,613
34,905
66,322
20,313
34,389
16,263
26,650
238,150
153,848
36,512
233,097
436,956
1,303
16,633
911
576
2,234
2,347
1,833
13,850
1,357
1,474
9,152
1,773
192
2,312
12,544
3,293
2,963
2,114
17,456
2,776
1,648
10,719
4,052
9,906
1,140
1,390
47,178
959
2,796
1,296
11,287
7,299
25,969
578
Metropole Television SA
Natixis*
Nexans SA
Nexity
PagesJaunes Groupe
Pernod-Ricard SA
PPR
PSA Peugeot Citroen SA*
Publicis Groupe SA
Rallye SA
Renault SA*
Rexel SA*
SA des Ciments Vicat
Safran SA
Sanofi-Aventis SA
Schneider Electric SA
SCOR SE
Sequana
Societe Generale
Societe Television Francaise 1
Sodexo
STMicroelectronics NV
Suez Environnement Co.
Technicolor*
Technip SA
Thales SA
Total SA
Unibail-Rodamco SE REIT
Valeo SA*
Vallourec SA
Veolia Environnement
Vinci SA
Vivendi SA
Wendel
2,164
11,565
1,139
104
15,605
8,069
9,104
711
582
717
2,601
31,457
34,979
16,570
Germany—9.1%
Adidas AG
Allianz SE
Aurubis AG
Axel Springer AG
BASF SE
Bayer AG
Bayerische Motoren Werke (BMW) AG
BayWa AG
Beiersdorf AG
Bilfinger Berger AG
Celesio AG
Commerzbank AG*
Daimler AG*
Deutsche Bank AG
$
31,784
101,882
64,804
25,531
24,530
207,828
300,118
550,553
67,503
57,415
507,861
33,416
15,014
73,202
874,884
466,848
72,770
30,558
1,043,877
45,239
107,106
93,621
79,100
62,371
95,687
56,597
2,560,287
199,537
150,084
134,324
331,091
389,361
739,753
44,731
19,942,929
140,973
1,447,321
58,511
15,445
1,133,922
601,354
651,790
29,696
37,866
52,150
61,927
283,101
2,305,920
953,929
Schedule of Investments (Continued)
PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
1,582
8,822
25,210
1,731
95,038
36,653
449
1,542
401
2,400
191
1,031
3,497
1,127
1,163
15,039
1,131
701
1,667
1,292
2,561
2,072
4,489
4,550
226
6,939
1,017
4,532
11,440
957
10,706
13,475
1,004
149
Deutsche Boerse AG
$
Deutsche Lufthansa AG*
Deutsche Post AG
Deutsche Postbank AG*
Deutsche Telekom AG
E.ON AG
Fraport AG
Fresenius Medical Care AG & Co. KGaA
Fresenius SE
GEA Group AG
Generali Deutschland Holding AG
Hannover Rueckversicherung AG
HeidelbergCement AG
Henkel AG & Co. KGaA
Hochtief AG
Infineon Technologies AG*
K+S AG
Kloeckner & Co. SE*
Lanxess AG
Linde AG
MAN SE
Merck KGaA
Metro AG
Muenchener RueckversicherungsGesellschaft AG
Rheinmetall AG
RWE AG
Salzgitter AG
SAP AG
Siemens AG
Suedzucker AG
ThyssenKrupp AG
TUI AG*
Volkswagen AG
Wacker Chemie AG
Common Stocks and Other
Equity Interests (Continued)
111,172
188,524
469,528
60,196
1,375,092
1,146,240
28,445
98,095
35,342
62,679
24,872
52,089
182,681
55,898
100,624
118,226
78,615
15,492
115,848
185,770
281,203
172,360
314,209
710,507
16,259
496,693
72,924
236,025
1,305,110
22,612
393,434
157,210
131,676
30,702
16,620,257
11,245
1,403
11,247
2,800
9,480
11,836
1,190
16,525
5,140
8,321
3,118
Greece—0.4%
Alpha Bank AE*
Coca-Cola Hellenic Bottling Co. SA
EFG Eurobank Ergasias SA*
Hellenic Petroleum SA
Hellenic Telecommunications
Organization SA
Marfin Investment Group SA*
Motor Oil (Hellas) Corinth Refineries SA
National Bank of Greece SA*
OPAP SA
Piraeus Bank SA*
Public Power Corp. SA
Value
74,396
36,271
69,563
22,416
75,764
13,325
13,067
180,759
96,802
43,255
52,221
677,839
18,295
47,742
19,085
12,435
2,445
5,384
23,710
13,916
18,478
6,000
2,379
7,072
10,607
7,969
9,863
28,858
16,054
15,000
51,856
2,400
1,500
4,987
6,000
76,590
12,981
18,000
13,375
38,928
47,509
8,000
5,164
210,320
12,000
20,078
38,000
16,733
17,308
6,000
36,000
12,001
8,000
5,148
Hong Kong—1.9%
Bank of East Asia Ltd. (The)
$
BOC Hong Kong (Holdings) Ltd.
Cathay Pacific Airways Ltd.
Cheung Kong (Holdings) Ltd.
Cheung Kong Infrastructure Holdings Ltd.
Chinese Estates Holdings Ltd.
CLP Holdings Ltd.
Esprit Holdings Ltd.
Foxconn International Holdings Ltd.*
Great Eagle Holdings Ltd.
Guoco Group Ltd.
Hang Lung Group Ltd.
Hang Lung Properties Ltd.
Hang Seng Bank Ltd.
Henderson Land Development Co. Ltd.
Hong Kong & China Gas Co. Ltd.
Hongkong Electric Holdings Ltd.
Hongkong Land Holdings Ltd.
Hutchison Whampoa Ltd.
Jardine Matheson Holdings Ltd.
Jardine Strategic Holdings Ltd.
Kerry Properties Ltd.
Kingboard Chemical Holdings Ltd.
Lenovo Group Ltd.
Li & Fung Ltd.
Link (The) REIT
MTR Corp. Ltd.
New World Development Co. Ltd.
Noble Group Ltd.
NWS Holdings Ltd.
Orient Overseas International Ltd.
PCCW Ltd.
Shangri-La Asia Ltd.
Sino Land Co. Ltd.
SJM Holdings Ltd.
Sun Hung Kai Properties Ltd.
Swire Pacific Ltd., Class A
Tingyi (Cayman Islands) Holding Corp.
TPV Technology Ltd.
Wharf Holdings Ltd. (The)
Wheelock & Co. Ltd.
Yue Yuen Industrial (Holdings) Ltd.
78,114
149,650
51,330
189,277
10,219
9,195
192,682
74,945
13,634
17,956
29,092
46,935
51,925
116,570
70,038
69,536
101,990
103,500
511,048
108,000
39,240
27,662
29,178
49,596
68,570
55,493
50,896
76,829
68,276
18,864
45,263
80,305
26,996
41,905
56,468
286,643
245,589
16,331
22,151
78,796
28,017
18,461
3,427,165
120,799
5,231
10,958
256,363
Ireland—0.3%
Allied Irish Banks PLC*
Anglo Irish Bank Corp. Ltd.*
CRH PLC
Governor & Co. of the Bank of
Ireland (The)*
56,582
0
187,412
189,918
See Notes to Financial Statements.
67
Schedule of Investments (Continued)
PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
23,316
1,031
5,828
3,999
Irish Life & Permanent Group
Holdings PLC*
Kerry Group PLC, Class A
Ryanair Holdings PLC
Smurfit Kappa Group PLC*
Common Stocks and Other
Equity Interests (Continued)
$
49,258
37,903
33,454
42,759
597,286
32,021
8,019
23,737
39
673
616
3,141
30
38,868
3,698
Israel—0.3%
Bank Hapoalim BM*
Bank Leumi Le-Israel*
Bezeq Israeli Telecommunication Corp. Ltd.
Delek Group Ltd.
Discount Investment Corp.
IDB Holding Corp. Ltd.
Israel Chemicals Ltd.
Israel Corp. Ltd. (The)*
Oil Refineries Ltd.
Teva Pharmaceutical Industries Ltd.
145,442
36,975
63,028
10,796
15,405
22,142
48,104
32,227
23,071
192,820
590,010
29,678
1,658
29,342
4,334
1,891
10,721
91,179
11,818
21,161
1,944
2,760
10,377
2,031
11,386
168,948
70,702
2,538
1,357
32,728
9,836
4,764
2,347
9,997
234,497
3,180
3,864
446
1,092
717
985
16,602
Italy—4.9%
A2A SpA
ACEA SpA*
Assicurazioni Generali SpA
Atlantia SpA
Autogrill SpA*
Banca Carige SpA
Banca Monte dei Paschi di Siena SpA*
Banca Popolare di Milano Scarl
Banco Popolare Societa Cooperativa Scarl
Benetton Group SpA
Buzzi Unicem SpA
CIR-Compagnie Industriali Riunite SpA*
Credito Emiliano SpA
Edison SpA
Enel SpA
Eni SpA
ERG SpA
EXOR SpA
Fiat SpA
Finmeccanica SpA
Fondiaria-Sai SpA
Fondiaria-Sai SpA RSP
Hera SpA
Intesa Sanpaolo SpA
Italcementi SpA
Italcementi SpA RSP
Italmobiliare SpA
Italmobiliare SpA RSP
Lottomatica SpA
Luxottica Group SpA
Mediaset SpA
See Notes to Financial Statements.
68
Value
48,303
19,749
642,324
98,911
25,179
25,928
128,124
55,150
113,603
15,766
31,648
23,553
14,425
14,005
963,353
1,590,971
34,993
34,836
553,142
137,121
56,514
17,485
21,120
823,782
26,740
18,636
15,745
27,988
11,939
29,065
122,298
11,372
2,806
9,663
22,471
8,546
8,546
24,754
2,143
11,563
13,170
574,536
256,230
14,873
14,418
480,481
44,932
Mediobanca SpA*
$
Mediolanum SpA
Milano Assicurazioni SpA
Parmalat SpA
Pirelli & C. SpA
Prelios SpA*
Premafin Finanziaria SpA*
Saipem SpA
Saras SpA*
Snam Rete Gas SpA
Telecom Italia SpA
Telecom Italia SpA RSP
Terna-Rete Elettrica Nationale SpA
UBI Banca-Unione di Banche Italiane ScpA
UniCredit SpA
Unipol Gruppo Finanziario SpA
117,675
13,172
20,858
61,715
72,872
5,007
36,986
95,105
25,538
71,252
880,000
313,398
68,528
152,000
1,250,828
35,254
8,962,584
1,850
17,600
19,800
3,100
7,000
1,100
10,000
5,000
4,000
4,600
12,000
17,000
3,500
12,000
9,700
4,000
1,900
13,900
4,600
26
8,000
9,200
1,500
4,700
13,000
41,000
4,700
8,000
17,350
4,000
5,000
1,600
Japan—15.0%
Acom Co. Ltd.
Aeon Co. Ltd.
Aiful Corp.*
Aisin Seiki Co. Ltd.
Ajinomoto Co., Inc.
Alfresa Holdings Corp.
All Nippon Airways Co. Ltd.*
Alps Electric Co. Ltd.
Amada Co. Ltd.
Asahi Breweries Ltd.
Asahi Glass Co. Ltd.
Asahi Kasei Corp.
Astellas Pharma, Inc.
Bank of Yokohama Ltd. (The)
Bridgestone Corp.
Brother Industries Ltd.
Canon Marketing Japan, Inc.
Canon, Inc.
Casio Computer Co. Ltd.
Central Japan Railway Co.
Chiba Bank Ltd. (The)
Chubu Electric Power Co., Inc.
Chugai Pharmaceutical Co. Ltd.
Chugoku Electric Power Co., Inc. (The)
Chuo Mitsui Trust Holdings, Inc.
Cosmo Oil Co. Ltd.
Credit Saison Co. Ltd.
Dai Nippon Printing Co. Ltd.
Daiei, Inc. (The)*
Daihatsu Motor Co. Ltd.
Daiichi Sankyo Co. Ltd.
Daikin Industries Ltd.
21,199
207,136
11,307
97,253
66,741
46,226
37,865
44,755
26,319
92,800
115,158
99,826
130,093
58,994
173,769
51,049
23,659
641,937
32,323
196,574
49,361
232,541
26,238
94,759
46,965
110,453
66,868
100,906
62,680
54,029
105,835
55,637
Schedule of Investments (Continued)
PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
1,500
900
8,000
19,000
5,800
1,800
19,000
3,900
1,800
3,200
900
600
14,000
15,000
9
5,900
7,000
34,000
10,000
8,000
5,000
810
14,000
12,000
7,000
1,100
1,100
600
125,000
2,000
3,000
15,000
3,100
18,700
3,900
900
1,000
26,000
6
2,900
28,000
19,200
53
7,400
7,000
1,000
8,000
3,500
1,600
6,100
75,000
Dainippon Sumitomo Pharma Co. Ltd.
$
Daito Trust Construction Co. Ltd.
Daiwa House Industry Co. Ltd.
Daiwa Securities Group, Inc.
Denso Corp.
Dentsu, Inc.
DIC Corp.
East Japan Railway Co.
Eisai Co. Ltd.
Electric Power Development Co. Ltd.
FANUC Ltd.
Fast Retailing Co. Ltd.
Fuji Electric Holdings Co. Ltd.
Fuji Heavy Industries Ltd.
Fuji Media Holdings, Inc.
FUJIFILM Holdings Corp.
Fujikura Ltd.
Fujitsu Ltd.
Fukuoka Financial Group, Inc.
Furukawa Electric Co. Ltd.
Hachijuni Bank Ltd. (The)
Hakuhodo DY Holdings, Inc.
Hankyu Hanshin Holdings, Inc.
Hanwa Co. Ltd.
Hino Motors Ltd.
Hitachi Chemical Co. Ltd.
Hitachi Construction Machinery Co. Ltd.
Hitachi High-Technologies Corp.
Hitachi Ltd.
Hitachi Metals Ltd.
Hokkaido Electric Power Co., Inc.
Hokuhoku Financial Group, Inc.
Hokuriku Electric Power Co.
Honda Motor Co. Ltd.
HOYA Corp.
Ibiden Co. Ltd.
Idemitsu Kosan Co. Ltd.
IHI Corp.
Inpex Corp.
Isetan Mitsukoshi Holdings Ltd.
Isuzu Motors Ltd.
ITOCHU Corp.
Japan Tobacco, Inc.
JFE Holdings, Inc.
JFE Shoji Holdings, Inc.
JGC Corp.
Joyo Bank Ltd. (The)
JS Group Corp.
JSR Corp.
JTEKT Corp.
JX Holdings, Inc.
Value
Common Stocks and Other
Equity Interests (Continued)
13,520
54,302
86,307
77,368
180,372
42,413
35,382
240,875
61,855
94,749
130,168
78,436
33,371
103,724
11,911
196,667
32,588
232,154
38,858
29,795
25,698
40,525
67,089
47,374
30,242
20,416
23,366
11,650
564,867
22,768
63,054
27,747
75,162
681,836
91,121
22,145
84,047
49,385
31,173
31,970
107,759
168,283
164,692
230,773
27,114
19,119
34,761
68,827
27,670
61,189
440,410
28,000
3,000
10,900
5,100
19,000
26,000
53
4,000
100
3,000
14,000
10,000
61,000
10,300
6,000
6,000
4,000
1,700
2,000
6,400
700
7,100
1,000
27,000
5,700
42,000
5,700
24,000
14,000
26,000
6,000
6,000
58,000
27,000
49,000
1,000
158,360
18,500
27,000
8,000
18,000
153,800
4,600
1,800
11,000
3,200
95,000
1,000
500
1,900
800
Kajima Corp.
Kaneka Corp.
Kansai Electric Power Co., Inc. (The)
Kao Corp.
Kawasaki Heavy Industries Ltd.
Kawasaki Kisen Kaisha Ltd.
KDDI Corp.
Keio Corp.
Keyence Corp.
Kinden Corp.
Kintetsu Corp.
Kirin Holdings Co. Ltd.
Kobe Steel Ltd.
Komatsu Ltd.
Konica Minolta Holdings, Inc.
Kubota Corp.
Kuraray Co. Ltd.
Kyocera Corp.
Kyowa Hakko Kirin Co. Ltd.
Kyushu Electric Power Co., Inc.
Lawson, Inc.
Leopalace21 Corp.*
Makita Corp.
Marubeni Corp.
Marui Group Co. Ltd.
Mazda Motor Corp.
Medipal Holdings Corp.
Mitsubishi Chemical Holdings Corp.
Mitsubishi Corp.
Mitsubishi Electric Corp.
Mitsubishi Estate Co. Ltd.
Mitsubishi Gas Chemical Co., Inc.
Mitsubishi Heavy Industries Ltd.
Mitsubishi Materials Corp.*
Mitsubishi Motors Corp.*
Mitsubishi Tanabe Pharma Corp.
Mitsubishi UFJ Financial Group, Inc.
Mitsui & Co. Ltd.
Mitsui Chemicals, Inc.
Mitsui Fudosan Co. Ltd.
Mitsui OSK Lines Ltd.
Mizuho Financial Group, Inc.
MS&AD Insurance Group Holdings, Inc.
Murata Manufacturing Co. Ltd.
Nagoya Railroad Co. Ltd.
Namco Bandai Holdings, Inc.
NEC Corp.
NGK Insulators Ltd.
Nidec Corp.
Nikon Corp.
Nintendo Co. Ltd.
$
65,698
18,548
275,782
129,352
52,365
101,353
285,233
27,958
24,767
25,773
44,320
137,058
134,041
252,161
58,101
53,333
57,256
169,472
19,565
151,518
31,806
8,021
35,133
169,609
44,793
106,890
66,518
123,650
336,313
243,700
105,028
37,095
210,975
84,469
58,399
16,338
737,244
290,534
79,106
151,061
115,307
223,397
110,389
101,117
30,180
29,477
264,184
15,133
49,410
35,854
207,076
See Notes to Financial Statements.
69
Schedule of Investments (Continued)
PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
4,000
19,000
3,000
2,800
16,000
83,000
13,800
60
35,000
50,500
2,000
18,000
800
1,300
27,000
1,800
29,700
1,300
6,000
7,000
14
259
16,000
4,000
16,000
1,500
2,900
800
200
300
2,110
26,000
43,500
3,000
6,800
3,700
9,000
1,400
600
500
19,000
220
1,400
1,900
4,200
7,000
9,000
10,400
14,000
2,600
15,000
Nippon Electric Glass Co. Ltd.
Nippon Express Co. Ltd.
Nippon Meat Packers, Inc.
Nippon Paper Group, Inc.
Nippon Sheet Glass Co. Ltd.
Nippon Steel Corp.
Nippon Telegraph & Telephone Corp.
Nippon Television Network Corp.
Nippon Yusen Kabushiki Kaisha
Nissan Motor Co. Ltd.
Nisshin Seifun Group, Inc.
Nisshin Steel Co. Ltd.
Nissin Foods Holdings Co. Ltd.
Nitto Denko Corp.
NKSJ Holdings, Inc.*
NOK Corp.
Nomura Holdings, Inc.
Nomura Research Institute Ltd.
NSK Ltd.
NTN Corp.
NTT Data Corp.
NTT DoCoMo, Inc.
Obayashi Corp.
Odakyu Electric Railway Co. Ltd.
OJI Paper Co. Ltd.
Olympus Corp.
OMRON Corp.
Ono Pharmaceutical Co. Ltd.
Oracle Corp. Japan
Oriental Land Co. Ltd.
ORIX Corp.
Osaka Gas Co. Ltd.
Panasonic Corp.
Panasonic Electric Works Co. Ltd.
Promise Co. Ltd.
Resona Holdings, Inc.
Ricoh Co. Ltd.
Rohm Co. Ltd.
Ryoshoku Ltd.
Sankyo Co. Ltd.
Sanyo Electric Co. Ltd.*
SBI Holdings, Inc.
Secom Co. Ltd.
Sega Sammy Holdings, Inc.
Seiko Epson Corp.
Sekisui Chemical Co. Ltd.
Sekisui House Ltd.
Seven & I Holdings Co. Ltd.
Sharp Corp.
Shikoku Electric Power Co., Inc.
Shimizu Corp.
See Notes to Financial Statements.
70
Value
Common Stocks and Other
Equity Interests (Continued)
$
51,496
75,481
34,860
71,121
35,158
260,695
626,183
7,918
147,300
445,127
24,730
32,402
28,961
48,579
185,363
32,112
154,123
24,483
45,438
31,719
42,982
435,686
65,152
36,847
73,892
39,292
67,253
33,966
9,088
29,050
192,271
98,125
638,864
39,367
28,449
29,490
125,810
87,250
12,924
26,629
30,900
26,875
63,526
30,994
66,898
44,494
84,581
241,827
138,175
76,854
57,914
3,000
50,000
1,300
1,900
5,000
26,000
5,400
300
4,300
112,300
16,100
1,400
19,000
18,300
10,100
4,000
6,000
54,000
6,000
16,100
4,000
2,900
15,000
1,000
6,100
3,850
34,000
31,000
2,000
5,000
7,200
1,000
18,000
600
6,000
5,000
7,100
6,200
500
19,400
1,000
28,000
15,000
9,000
8,000
11,000
18,000
50,000
14,000
3,200
600
Shin-Etsu Chemical Co. Ltd.
$
Shinsei Bank Ltd.*
Shionogi & Co. Ltd.
Shiseido Co. Ltd.
Shizuoka Bank Ltd. (The)
Showa Denko K.K.
Showa Shell Sekiyu K.K.
SMC Corp.
SoftBank Corp.
Sojitz Corp.
Sony Corp.
Sumco Corp.*
Sumitomo Chemical Co. Ltd.
Sumitomo Corp.
Sumitomo Electric Industries Ltd.
Sumitomo Forestry Co. Ltd.
Sumitomo Heavy Industries Ltd.
Sumitomo Metal Industries Ltd.
Sumitomo Metal Mining Co. Ltd.
Sumitomo Mitsui Financial Group, Inc.
Sumitomo Realty & Development Co. Ltd.
Sumitomo Rubber Industries Ltd.
Sumitomo Trust & Banking Co. Ltd. (The)
Suzuken Co. Ltd.
Suzuki Motor Corp.
T&D Holdings, Inc.
Taiheiyo Cement Corp.*
Taisei Corp.
Taisho Pharmaceutical Co. Ltd.
Takashimaya Co. Ltd.
Takeda Pharmaceutical Co. Ltd.
TDK Corp.
Teijin Ltd.
Terumo Corp.
Tobu Railway Co. Ltd.
Toho Gas Co. Ltd.
Tohoku Electric Power Co., Inc.
Tokio Marine Holdings, Inc.
Tokyo Broadcasting System Holdings, Inc.
Tokyo Electric Power Co., Inc. (The)
Tokyo Electron Ltd.
Tokyo Gas Co. Ltd.
Tokyu Corp.
Tokyu Land Corp.
TonenGeneral Sekiyu K.K.
Toppan Printing Co. Ltd.
Toray Industries, Inc.
Toshiba Corp.
Tosoh Corp.
Toyo Seikan Kaisha Ltd.
Toyoda Gosei Co. Ltd.
151,769
39,727
22,627
39,675
42,831
47,449
45,385
45,810
138,262
206,336
537,666
21,674
82,793
231,732
128,773
29,597
34,115
125,363
95,196
482,101
87,101
31,214
82,123
31,421
148,657
78,816
36,723
66,195
42,011
37,616
336,983
57,045
66,592
30,428
33,669
26,381
159,276
174,570
6,158
463,625
56,425
131,744
67,039
41,006
71,210
88,492
104,134
250,155
37,368
54,545
12,916
Schedule of Investments (Continued)
PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
800
1,100
1,800
43,100
6,100
12,000
5,900
30
32
1,160
3,300
6,300
5,100
2,000
Toyota Auto Body Co. Ltd.
Toyota Boshoku Corp.
Toyota Industries Corp.
Toyota Motor Corp.
Toyota Tsusho Corp.
Ube Industries Ltd.
UNY Co. Ltd.
West Japan Railway Co.
Yahoo! Japan Corp.
Yamada Denki Co. Ltd.
Yamaha Corp.
Yamaha Motor Co. Ltd.*
Yamato Holdings Co. Ltd.
Yamazaki Baking Co. Ltd.
19,558
185
2,963
3,875
Luxembourg—0.4%
ArcelorMittal
RTL Group
SES SA FDR
Tenaris SA
Common Stocks and Other
Equity Interests (Continued)
$
12,017
18,627
50,726
1,529,769
94,586
29,348
49,148
111,285
11,187
75,317
40,436
96,670
64,201
24,358
27,527,030
627,807
16,675
75,838
80,249
800,569
72,576
4,320
1,573
1,394
7,348
1,792
2,267
311,178
27,340
20,563
10,473
3,391
13,786
641
1,580
3,554
2,176
6,906
5,776
26,239
3,720
Netherlands—3.9%
Aegon NV*
Akzo Nobel NV
ASML Holding NV
Corio NV REIT
European Aeronautic Defence and
Space Co. NV*
Heineken Holding NV
Heineken NV
ING Groep NV CVA*
Koninklijke (Royal) KPN NV
Koninklijke Ahold NV
Koninklijke BAM Groep NV
Koninklijke DSM NV
Koninklijke Philips Electronics NV
Nutreco NV
Randstad Holding NV*
Reed Elsevier NV
SBM Offshore NV
SNS REAAL NV*
TNT NV
Unilever NV CVA
Wolters Kluwer NV
459,377
256,146
51,837
102,262
192,872
77,062
114,756
3,317,324
455,999
283,805
70,526
181,079
416,372
46,578
75,105
46,246
44,338
31,868
153,336
776,985
84,511
7,238,384
9,579
70,818
10,570
New Zealand—0.1%
Fletcher Building Ltd.
Telecom Corp. of New Zealand Ltd.
Vector Ltd.
Value
60,147
111,031
19,644
814
3,301
15,877
52,205
16,533
26,821
8,961
12,959
1,817
Norway—0.9%
Aker ASA, Class A
Aker Solutions ASA
DnB NOR ASA
Norsk Hydro ASA
Orkla ASA
Statoil ASA
Storebrand ASA*
Telenor ASA
Yara International ASA
8,115
88,734
5,545
4,809
2,557
46,550
2,527
1,918
18,918
23,622
Portugal—0.4%
Banco BPI SA
Banco Comercial Portugues SA, Class R
Banco Espirito Santo SA
Brisa Auto-Estradas de Portugal SA
CIMPOR-Cimentos de Portugal SGPS SA
EDP-Energias de Portugal SA
Galp Energia SGPS SA, Class B
Jeronimo Martins SGPS SA
Portugal Telecom SGPS SA
Sonae
30,000
4,000
17,000
17,000
84,000
1,000
12,000
18,000
19,000
9,000
8,000
17,000
13,000
85,000
10,000
12,000
10,000
Singapore—0.8%
CapitaLand Ltd.
City Developments Ltd.
DBS Group Holdings Ltd.
Fraser and Neave Ltd.
Golden Agri-Resources Ltd.
Jardine Cycle & Carriage Ltd.
Keppel Corp. Ltd.
Neptune Orient Lines Ltd.*
Oversea-Chinese Banking Corp. Ltd.
SembCorp Industries Ltd.
Singapore Airlines Ltd.
Singapore Press Holdings Ltd.
Singapore Technologies Engineering Ltd.
Singapore Telecommunications Ltd.
StarHub Ltd.
United Overseas Bank Ltd.
Wilmar International Ltd.
$
16,587
49,999
216,758
317,888
159,179
582,501
64,836
207,838
95,029
1,710,615
17,967
80,659
27,514
36,368
17,738
177,860
48,680
28,738
272,670
27,907
736,101
90,168
39,312
182,577
81,963
42,187
30,365
92,532
29,762
132,270
31,849
97,786
54,510
33,247
202,936
20,475
172,826
49,450
1,384,215
419
883
1,790
1,050
South Korea—4.1%
CJ Corp.
Daelim Industrial Co. Ltd.
Daewoo Engineering &
Construction Co. Ltd.
Daewoo Shipbuilding & Marine
Engineering Co. Ltd.
29,528
71,880
16,782
27,947
190,822
See Notes to Financial Statements.
71
Schedule of Investments (Continued)
PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
1,920
812
413
526
2,073
2,720
1,530
2,710
236
6,430
645
644
668
1,050
567
3,316
480
2,700
3,051
75
4,560
6,450
4,910
442
730
2,398
681
3,660
858
431
4,394
3,960
2,693
1,790
2,830
117
624
1,026
2,028
364
1,619
480
2,560
444
6,880
120
881
5,373
2,700
Dongkuk Steel Mill Co. Ltd.
$
Doosan Corp.
Doosan Heavy Industries and
Construction Co. Ltd.
GS Engineering & Construction Corp.
GS Holdings
Hana Financial Group, Inc.
Hanwha Chemical Corp.
Hanwha Corp.
Honam Petrochemical Corp.
Hynix Semiconductor, Inc.*
Hyosung Corp.
Hyundai Engineering &
Construction Co. Ltd.
Hyundai Heavy Industries Co. Ltd.
Hyundai Merchant Marine Co. Ltd.
Hyundai Mobis
Hyundai Motor Co.
Hyundai Steel Co.
Industrial Bank of Korea
KB Financial Group, Inc.
KCC Corp.
Kia Motors Corp.
Korea Electric Power Corp.*
Korea Exchange Bank
Korea Express Co. Ltd.*
Korea Gas Corp.
Korea Kumho Petrochemical Co. Ltd.*
Korean Air Lines Co. Ltd.*
KT Corp.
KT&G Corp.
LG Chem Ltd.
LG Corp.
LG Display Co. Ltd.
LG Electronics, Inc.
LG International Corp.
LG Uplus Corp.
Lotte Shopping Co. Ltd.
LS Corp.
POSCO
Samsung C&T Corp.
Samsung Card Co. Ltd.
Samsung Electronics Co. Ltd.
Samsung Fire & Marine Insurance Co. Ltd.
Samsung Heavy Industries Co. Ltd.
Samsung SDI Co. Ltd.
Shinhan Financial Group Co. Ltd.
Shinsegae Co. Ltd.
SK Energy Co. Ltd.
SK Holdings Co. Ltd.
SK Networks Co. Ltd.
See Notes to Financial Statements.
72
Value
Common Stocks and Other
Equity Interests (Continued)
44,193
109,325
32,519
44,642
108,693
77,231
41,539
102,235
52,013
132,286
71,651
43,095
217,571
37,092
141,089
500,973
46,496
38,751
135,570
24,861
181,954
169,669
58,471
27,967
29,940
158,552
43,332
144,416
52,689
132,910
314,345
135,490
237,171
56,711
18,359
47,881
63,218
421,250
118,950
17,436
1,071,900
82,328
71,778
60,962
266,273
60,893
118,224
558,668
25,914
889
2,753
2,740
2,820
8,390
SK Telecom Co. Ltd.
S-Oil Corp.
STX Corp. Ltd.*
STX Offshore & Shipbuilding Co. Ltd.
Woori Finance Holdings Co. Ltd.
$
134,703
169,792
84,008
68,166
105,504
7,457,786
3,319
477
3,936
3,332
82,534
27,102
1,445
28,283
166,320
4,974
5,911
505
10,962
2,194
1,504
2,521
1,637
3,363
6,836
1,918
6,638
73,260
42,077
1,400
14,689
3,463
393
34,041
3,478
61,776
867
Spain—4.4%
Abertis Infraestructuras SA
Acciona SA
Acerinox SA
ACS Actividades de Construccion y
Servicios SA
Banco Bilbao Vizcaya Argentaria SA
Banco de Sabadell SA
Banco Espanol de Credito SA
Banco Popular Espanol SA
Banco Santander SA
Bankinter SA
Caja de Ahorros del Mediterraneo
Cementos Portland Valderrivas SA
Criteria Caixacorp SA
EDP Renovaveis SA*
Enagas
Endesa SA
Fomento de Construcciones y Contratas SA
Gamesa Corp. Tecnologica SA*
Gas Natural SDG SA
Gestevision Telecinco SA
Iberdrola Renovables SA
Iberdrola SA
Iberia Lineas Aereas de Espana SA*
Industria de Diseno Textil SA
Mapfre SA
Promotora de Informaciones SA*
Red Electrica Corporacion SA
Repsol YPF SA
Sacyr Vallehermoso SA*
Telefonica SA
Zardoya Otis SA
65,460
41,901
64,444
174,641
1,084,048
131,653
14,471
182,676
2,133,914
33,101
60,303
10,346
61,813
12,713
33,102
69,763
44,095
23,371
99,954
24,435
22,410
617,054
184,396
116,771
48,672
8,929
19,716
942,724
22,798
1,665,732
14,424
8,029,830
2,487
3,541
5,269
3,266
4,497
4,853
4,231
1,849
4,459
Sweden—2.7%
Alfa Laval AB
Assa Abloy AB, Class B
Atlas Copco AB, Class A
Atlas Copco AB, Class B
Boliden AB
Electrolux AB, Series B
Hennes & Mauritz AB, Class B
Holmen AB, Class B
Industrivarden AB, Class A
42,954
90,417
109,707
62,059
76,060
117,259
148,549
58,492
67,503
Schedule of Investments (Continued)
PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
1,952
11,128
399
4,104
53,856
1,364
14,426
9,473
9,342
6,232
33,946
8,841
5,908
3,512
1,214
13,492
8,010
13,708
5,602
38,650
33,282
13,634
29,189
Industrivarden AB, Class C
$
Investor AB, Class B
Lundbergforetagen AB, Class B
NCC AB, Class B
Nordea Bank AB
Ratos AB, Class B
Sandvik AB
SAS AB*
Scania AB, Class B
Securitas AB, Class B
Skandinaviska Enskilda Banken AB, Class A
Skanska AB, Class B
SKF AB, Class B
SSAB AB, Class A
SSAB AB, Class B
Svenska Cellulosa AB, Class B
Svenska Handelsbanken AB, Class A
Swedbank AB, Class A*
Tele2 AB, Class B
Telefonaktiebolaget LM Ericsson, Class B
TeliaSonera AB
Volvo AB, Class A*
Volvo AB, Class B*
Common Stocks and Other
Equity Interests (Continued)
28,779
227,549
25,530
87,225
590,796
48,459
216,669
35,888
197,856
67,900
262,011
168,521
152,002
49,055
14,974
208,476
260,919
190,653
122,824
423,123
276,742
179,660
393,775
5,002,386
11,491
2,347
927
180
5,499
3,184
15,416
6,257
226
63
120
3,273
1,391
449
24,115
19,872
645
3,336
5,807
192
134
41
173
552
Switzerland—4.4%
ABB Ltd.*
Adecco SA
Baloise Holding AG
BKW FMB Energie AG
Clariant AG*
Compagnie Financiere Richemont SA
Credit Suisse Group AG
GAM Holding Ltd.*
Geberit AG
Givaudan SA
Helvetia Holding AG
Holcim Ltd.
Julius Baer Group Ltd.
Kuehne + Nagel International AG
Nestle SA
Novartis AG
Pargesa Holding SA
Petroplus Holdings AG*
Roche Holding AG
Schindler Holding AG
Schindler Holding AG Participant
Certificates
SGS SA
Swatch Group AG-Bearer
Swatch Group AG-Registered
Value
238,115
131,251
85,725
12,281
93,038
158,892
637,174
98,929
43,316
64,954
42,308
204,167
58,752
55,560
1,321,605
1,152,717
51,187
39,449
853,189
20,889
14,374
65,658
66,157
38,390
1,524
8,414
284
593
233
51,916
2,766
Swiss Life Holding AG*
Swiss Reinsurance Co. Ltd.
Swisscom AG
Syngenta AG
Synthes, Inc.
UBS AG*
Zurich Financial Services AG
$
186,723
404,659
118,711
164,123
27,813
879,431
677,508
8,007,045
12,216
3,657
6,915
16,134
3,456
5,486
19,247
118,072
50,813
13,635
250,091
40,472
22,737
39,516
391,781
18,270
18,066
12,218
11,501
318,423
4,813
44,742
44,742
3,606
7,536
7,536
9,993
75,876
22,995
26,975
11,820
205,162
4,408
32,003
2,070
5,851
12,304
16,314
37,933
71,829
9,142
United Kingdom—20.5%
3i Group PLC
AMEC PLC
Amlin PLC
Anglo American PLC
Antofagasta PLC
Associated British Foods PLC
AstraZeneca PLC
Aviva PLC
BAE Systems PLC
Balfour Beatty PLC
Barclays PLC
Barratt Developments PLC*
BG Group PLC
BHP Billiton PLC
BP PLC
British Airways PLC*
British American Tobacco PLC
British Land Co. PLC REIT
British Sky Broadcasting Group PLC
BT Group PLC
Bunzl PLC
Cable & Wireless Communications PLC
Cable & Wireless Worldwide PLC
Capita Group PLC (The)
Capital & Counties Properties PLC
Capital Shopping Centres Group PLC REIT
Carnival PLC
Centrica PLC
Compass Group PLC
Diageo PLC
Drax Group PLC
DSG International PLC*
easyJet PLC*
Enterprise Inns PLC*
Eurasian Natural Resources Corp. PLC
Experian PLC
FirstGroup PLC
G4S PLC
GKN PLC
GlaxoSmithKline PLC
Hammerson PLC REIT
58,515
63,496
44,952
750,120
73,046
91,833
963,013
751,507
280,034
60,320
1,097,976
50,536
441,858
1,398,449
2,667,124
79,072
687,437
99,526
129,910
782,479
56,866
38,235
50,217
44,191
17,988
46,315
429,776
402,994
188,050
496,830
71,944
88,006
32,137
58,381
28,809
67,867
80,241
68,259
107,528
1,402,199
61,257
See Notes to Financial Statements.
73
Schedule of Investments (Continued)
PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
25,220
25,385
237,607
9,609
9,482
17,455
4,257
22,579
12,053
67,654
43,818
3,398
2,298
28,845
53,822
24,686
14,495
165,341
612,278
32,252
2,761
1,762
33,817
36,503
16,494
12,351
13,685
47,843
2,421
146,843
11,233
4,943
12,172
39,668
48,000
4,190
8,131
27,869
21,361
16,661
956,480
14,945
948,228
83,448
64,434
75,293
8,538
13,645
1,589
760
16,045
Hays PLC
Home Retail Group PLC
HSBC Holdings PLC
ICAP PLC
Imperial Tobacco Group PLC
Inchcape PLC*
InterContinental Hotels Group PLC
International Power PLC
Investec PLC
ITV PLC*
J Sainsbury PLC
Johnson Matthey PLC
Kazakhmys PLC
Kesa Electricals PLC
Kingfisher PLC
Ladbrokes PLC
Land Securities Group PLC REIT
Legal & General Group PLC
Lloyds Banking Group PLC*
Logica PLC
London Stock Exchange Group PLC
Lonmin PLC*
Man Group PLC
Marks & Spencer Group PLC
Mitchells & Butlers PLC*
Mondi PLC
National Express Group PLC*
National Grid PLC
Next PLC
Old Mutual PLC
Pearson PLC
Pennon Group PLC
Persimmon PLC*
Prudential PLC
Punch Taverns PLC*
Reckitt Benckiser Group PLC
Reed Elsevier PLC
Rentokil Initial PLC*
Rexam PLC
Rio Tinto PLC
Rolls-Royce Group PLC, Class C*
Rolls-Royce Group PLC*
Royal Bank of Scotland Group PLC*
Royal Dutch Shell PLC, Class A
Royal Dutch Shell PLC, Class B
RSA Insurance Group PLC
SABMiller PLC
Sage Group PLC (The)
Schroders PLC
Schroders PLC NVTG
Scottish & Southern Energy PLC
See Notes to Financial Statements.
74
Value
Common Stocks and Other
Equity Interests (Continued)
$
44,556
88,882
2,465,841
70,085
303,045
97,312
82,150
150,642
96,005
73,823
272,729
103,982
48,350
73,096
204,628
52,019
156,892
265,405
674,861
66,776
32,401
49,271
141,006
249,435
85,045
102,683
54,480
451,299
88,445
304,970
171,422
49,235
66,361
399,871
55,024
233,861
69,549
44,156
108,501
1,075,094
1,529
154,714
676,300
2,703,022
2,058,797
157,696
276,219
58,771
40,114
15,359
295,776
10,236
4,697
5,364
4,928
17,539
43,384
5,601
10,372
134,780
112,593
21,459
4,639
13,754
27,098
10,183
18,186
1,268
1,161,130
3,099
14,985
38,722
8,210
22,726
23,387
116,402
Segro PLC REIT
Severn Trent PLC
Smith & Nephew PLC
Smiths Group PLC
Standard Chartered PLC
Standard Life PLC
TalkTalk Telecom Group PLC*
Tate & Lyle PLC
Taylor Wimpey PLC*
Tesco PLC
Thomas Cook Group PLC
Travis Perkins PLC
TUI Travel PLC
Unilever PLC
United Business Media Ltd.
United Utilities Group PLC
Vedanta Resources PLC
Vodafone Group PLC
Whitbread PLC
William Hill PLC
William Morrison Supermarkets PLC
Wolseley PLC*
WPP PLC
Xstrata PLC
Yell Group PLC*
$
48,507
104,758
47,082
93,916
506,287
157,453
11,811
83,245
48,053
768,389
62,064
61,448
46,421
779,404
107,126
177,653
42,066
3,153,121
83,932
38,501
181,888
218,288
263,787
452,246
26,222
37,634,446
Total Common Stocks and Other
Equity Interests
(Cost $163,186,771)
182,304,443
Preferred Stocks—0.5%
997
1,558
2,693
4,342
Germany—0.5%
Fresenius SE
Henkel AG & Co. KGaA
ProSiebenSat.1 Media AG
Volkswagen AG
89,255
91,772
71,080
651,774
903,881
918
55,351
Italy—0.0%
EXOR SpA
Unipol Gruppo Finanziario SpA
18,093
32,542
50,635
Total Preferred Stocks
(Cost $673,471)
954,516
Schedule of Investments (Continued)
PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio
October 31, 2010
Number
of Shares
Value
Rights—0.0%
1,762
Australia—0.0%
TABCORP Holdings Ltd.,
expiring 11/10/10*
(Cost $0)
Total Investments
(Cost $163,860,242)—100.0%
Other assets less liabilities—0.0%
$
Net Assets—100.0%
$183,323,265
1,814
183,260,773
62,492
Investment Abbreviations:
CVA—Dutch Certificate
FDR—Fiduciary Depository Receipt
NVTG—Non Voting
PPS—Price Protected Shares
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
75
Schedule of Investments
PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests—99.3%
51,899
15,393
7,364
3,350
21,649
10,011
18,655
35,729
2,780
16,984
64,495
12,506
70,764
12,409
7,182
55,092
10,916
5,383
8,084
3,984
964
12,822
22,561
12,345
639
71,966
6,476
67,007
13,392
5,582
60,591
14,413
9,781
38,702
44,071
660
61,570
34,643
1,738
59,854
80,199
11,170
17,492
12,645
11,584
26,912
114,981
88,221
4,368
1,393
Australia—5.9%
Abacus Property Group REIT
$
Adelaide Brighton Ltd.
Alesco Corp. Ltd.
Ansell Ltd.
APA Group
APN News & Media Ltd.
Aristocrat Leisure Ltd.
Asciano Group*
ASX Ltd.
Australand Property Group REIT
Australian Pharmaceutical Industries Ltd.
Automotive Holdings Group
AWB Ltd.*
AWE Ltd.*
Bank of Queensland Ltd.
Beach Energy Ltd.
Bendigo and Adelaide Bank Ltd.
Billabong International Ltd.
Boart Longyear Group
Bradken Ltd.
Campbell Brothers Ltd.
Challenger Financial Services Group Ltd.
Charter Hall Office REIT
Charter Hall Retail REIT
Cochlear Ltd.
Commonwealth Property Office Fund REIT
Computershare Ltd.
ConnectEast Group
Consolidated Media Holdings Ltd.
Crane Group Ltd.
CSR Ltd.
David Jones Ltd.
Downer EDI Ltd.
Elders Ltd.*
Emeco Holdings Ltd.
Energy Resources of Australia Ltd.
Envestra Ltd.
FKP Property Group REIT
Flight Centre Ltd.
Goodman Fielder Ltd.
Gunns Ltd.*
GWA International Ltd.
Harvey Norman Holdings Ltd.
Hills Industries Ltd.
Iluka Resources Ltd.*
Infigen Energy
ING Industrial Fund REIT
ING Office Fund REIT
IOOF Holdings Ltd.
JB Hi-Fi Ltd.
See Notes to Financial Statements.
76
Value
Common Stocks and Other
Equity Interests (Continued)
21,875
54,016
17,973
44,494
82,760
18,988
64,182
54,809
101,096
46,280
32,557
28,071
103,004
18,306
73,284
36,181
96,834
42,897
28,685
31,983
33,260
57,813
57,939
36,786
44,483
64,545
64,239
28,571
43,974
41,474
108,092
67,106
48,608
24,469
38,446
8,417
31,382
31,920
38,876
87,123
53,062
33,613
57,095
26,772
76,417
19,389
59,170
53,182
30,741
27,145
3,102
63,972
1,918
17,251
5,522
4,138
14,994
86,328
57,101
159,867
1,582
1,964
13,901
3,438
4,412
61,082
10,498
42,363
16,070
25,201
29,498
13,368
5,156
96,081
1,899
Macarthur Coal Ltd.
Minara Resources Ltd.*
Monadelphous Group Ltd.
Mount Gibson Iron Ltd.*
New Hope Corp. Ltd.
Nufarm Ltd.*
Oil Search Ltd.
OZ Minerals Ltd.
Pacific Brands Ltd.*
PaperlinX Ltd.*
Perpetual Ltd.
Platinum Asset Management Ltd.
Primary Health Care Ltd.
Ramsay Health Care Ltd.
Seven Group Holdings Ltd.
Sigma Pharmaceuticals Ltd.*
Skilled Group Ltd.*
SP Ausnet
Spotless Group Ltd.
Straits Resources Ltd.
Ten Network Holdings Ltd.
Transfield Services Ltd.
UGL Ltd.
Virgin Blue Holdings Ltd.*
West Australian Newspapers Holdings Ltd.
$
36,548
47,656
31,434
34,157
26,576
18,455
93,767
132,429
60,728
69,733
58,693
9,241
42,512
52,740
31,873
26,943
15,127
38,618
35,914
46,069
41,636
45,337
74,494
40,497
13,328
3,516,889
1,015
1,171
5,250
3,721
686
56,031
313
1,833
383
1,136
569
351
Austria—1.1%
Andritz AG
A-TEC Industries AG*
CA Immobilien Anlagen AG*
Conwert Immobilien Invest SE
Flughafen Wien AG
Immofinanz AG*
Mayr-Melnhof Karton AG
Oesterreichische Post AG
Palfinger AG*
RHI AG*
Semperit AG Holding
Zumtobel AG
798
11,226
637
502
447
589
1,320
468
1,594
Belgium—1.5%
Ackermans & van Haaren NV
Agfa Gevaert NV*
Barco NV*
Befimmo SCA Sicafi REIT
Bekaert SA NV
Cie d’Entreprises CFE
Cie Maritime Belge SA
Cofinimmo REIT
Euronav NV
77,648
6,348
78,771
56,269
42,496
220,394
33,789
55,399
11,658
37,610
24,912
7,174
652,468
68,677
65,377
37,690
46,266
136,030
36,635
39,886
66,674
26,630
Schedule of Investments (Continued)
PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
279
3,623
571
1,564
8,325
573
1,462
2,090
Gimv NV
Nyrstar
Omega Pharma SA
Recticel SA
RHJ International*
Sofina SA
Telenet Group Holding NV*
Tessenderlo Chemie NV
Common Stocks and Other
Equity Interests (Continued)
$
15,407
53,277
26,666
16,347
64,797
54,005
60,961
71,431
886,756
6,653
15,145
5,000
50,000
17
172,610
5,749
49,000
3,339
60,000
16,000
Bermuda—0.6%
Aquarius Platinum Ltd.
Catlin Group Ltd.
China Yurun Food Group Ltd.
Citic Resources Holdings Ltd.*
Golar LNG Energy Ltd.*
HKC Holdings Ltd.*
Lancashire Holdings Ltd.
Mongolia Energy Co. Ltd.*
Seadrill Ltd.
Sino Union Energy Investment Group Ltd.*
Skyworth Digital Holdings Ltd.
38,324
84,434
19,446
12,770
30
10,799
52,208
18,773
100,582
5,340
9,370
352,076
9,565
4,169
1,040
1,499
758
5,151
2,825
2,297
1,759
1,539
6,128
6,409
1,420
2,259
4,786
3,369
1,360
1,623
738
4,992
2,709
1,646
3,293
1,423
949
4,131
4,658
Canada—8.5%
Advantage Oil & Gas Ltd.*
AGF Management Ltd., Class B
Agnico-Eagle Mines Ltd.
Astral Media, Inc.
Boardwalk REIT
CAE, Inc.
Calloway REIT
Canadian Apartment Properties REIT
Canadian REIT
Canadian Western Bank
Canfor Corp.*
Cascades, Inc.
CCL Industries, Inc., Class B
Centerra Gold, Inc.
Chartwell Seniors Housing REIT
CML Healthcare Income Fund
Cogeco Cable, Inc.
Cominar REIT
Corus Entertainment, Inc., Class B
Cott Corp.*
Crescent Point Energy Corp.
Dorel Industries, Inc., Class B
Dundee Corp., Class A*
Dundee REIT
DundeeWealth, Inc.
Emera, Inc.
Ensign Energy Services, Inc.
Value
59,405
67,885
80,841
60,248
31,919
57,908
66,627
39,344
55,401
38,354
57,992
42,323
41,724
45,176
43,975
41,219
52,123
34,594
15,970
41,158
107,550
55,611
49,188
40,847
15,388
120,488
57,950
4,032
5,624
1,471
762
2,253
883
710
1,899
2,918
4,859
5,391
3,165
524
4,992
3,040
3,844
3,055
1,049
6,593
954
3,153
14,116
735
8,431
3,342
3,365
1,775
4,302
6,860
1,623
2,120
1,832
613
16,027
2,284
1,037
735
503
2,010
3,661
4,037
2,346
1,423
6,548
4,177
1,021
13,861
1,659
3,019
1,955
Extendicare REIT
Fairborne Energy Ltd.*
First Capital Realty, Inc.
First Quantum Minerals Ltd.
Flint Energy Services Ltd.*
Franco-Nevada Corp.
Genworth MI Canada, Inc.
Gildan Activewear, Inc.*
GMP Capital, Inc.
Groupe Aeroplan, Inc.
H&R REIT
Harry Winston Diamond Corp.*
Home Capital Group, Inc.
HudBay Minerals, Inc.
IAMGOLD Corp.
IESI-BFC Ltd.
Industrial Alliance Insurance & Financial
Services, Inc.
Inmet Mining Corp.
InnVest REIT
Laurentian Bank of Canada
Linamar Corp.
Lundin Mining Corp.*
MacDonald Dettwiler & Associates Ltd.*
Maple Leaf Foods, Inc.
Martinrea International, Inc.*
Methanex Corp.
Morguard REIT
Mullen Group Ltd.
New Gold, Inc.*
Norbord, Inc.*
Nordion, Inc.*
Nuvista Energy Ltd.
Open Text Corp.*
OPTI Canada, Inc.*
Pacific Rubiales Energy Corp.*
Pan American Silver Corp.
Paramount Resources Ltd., Class A*
Petrobank Energy & Resources Ltd.*
Primaris Retail REIT
Progress Energy Resources Corp.
Quadra FNX Mining Ltd.*
Reitmans (Canada) Ltd., Class A
Ritchie Bros Auctioneers, Inc.
RONA, Inc.*
Russel Metals, Inc.
ShawCor Ltd., Class A
Sherritt International Corp.
Silver Wheaton Corp.*
Sino-Forest Corp.*
SNC-Lavalin Group, Inc.
$
43,387
22,328
22,074
66,877
35,270
30,527
19,013
54,846
32,977
59,210
108,180
40,527
24,732
78,981
55,596
90,169
96,069
62,862
44,381
41,484
69,623
89,612
36,699
102,488
28,244
93,913
23,635
64,682
50,897
18,565
23,792
16,617
27,180
11,025
72,969
33,252
14,785
20,064
38,438
38,963
57,127
45,140
30,303
83,652
82,423
31,485
108,018
47,801
59,810
100,094
See Notes to Financial Statements.
77
Schedule of Investments (Continued)
PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
855
6,636
2,640
2,038
2,062
1,729
8,426
5,101
7,380
2,179
7,377
12,689
1,523
Stantec, Inc.*
$
Superior Plus Corp.
Thompson Creek Metals Co., Inc.*
Tim Hortons, Inc.
TMX Group, Inc.
Toromont Industries Ltd.
Torstar Corp., Class B
Transcontinental, Inc., Class A
TransForce, Inc.
Trican Well Service Ltd.
Trinidad Drilling Ltd.
Valeant Pharmaceuticals International, Inc.
West Fraser Timber Co. Ltd.
Common Stocks and Other
Equity Interests (Continued)
23,686
79,233
31,858
76,786
68,733
49,393
106,649
76,746
87,608
37,858
36,972
351,890
66,302
5,065,708
3,000
43,000
58,000
34,000
19,500
3,500
14,000
17,000
25,000
54,000
11,600
3,000
34,000
44,000
4,000
Cayman Islands—0.5%
Anta Sports Products Ltd.
Belle International Holdings Ltd.
Bosideng International Holdings Ltd.
China State Construction International
Holdings Ltd.
KWG Property Holding Ltd.
Li Ning Co. Ltd.
Lonking Holdings Ltd.
Pacific Textile Holdings Ltd.
Polytec Asset Holdings Ltd.
Renhe Commercial Holdings Co. Ltd.
Sands China Ltd.*
Shenzhou International Group Holdings Ltd.
Tomson Group Ltd.
Want Want China Holdings Ltd.
Xinao Gas Holdings Ltd.
6,192
77,654
29,327
25,876
15,445
9,978
7,513
9,627
4,418
10,309
25,288
3,483
13,201
40,582
12,022
290,915
33,405
12,500
24,000
13,500
7,000
27,500
17,000
21,000
59,650
47,500
8,500
600
17,000
7,000
China—0.5%
Agile Property Holdings Ltd.
BYD Electronic International Co. Ltd.
China Dongxiang Group Co.
Greentown China Holdings Ltd.
Hidili Industry International
Development Ltd.
Kingboard Laminates Holdings Ltd.
Nine Dragons Paper Holdings Ltd.
Shimao Property Holdings Ltd.
Shui On Land Ltd.
Soho China Ltd.
Stella International Holdings Ltd.
Tencent Holdings Ltd.
Yangzijiang Shipbuilding Holdings Ltd.
Yanlord Land Group Ltd.
43,952
6,595
13,436
15,638
7,458
26,499
27,411
34,728
29,932
40,378
17,872
13,738
24,562
9,303
311,502
See Notes to Financial Statements.
78
Value
5,677
Cyprus—0.0%
Songa Offshore SE*
645
763
709
1,564
334
445
5,223
3,150
1,155
5,602
1,632
2,729
644
645
385
1,013
140
2,332
476
164
Denmark—1.6%
Alk-Abello A/S
Alm. Brand A/S*
Auriga Industries, Class B
Bang & Olufsen A/S*
Coloplast A/S, Class B
D/S Norden A/S
DSV A/S
East Asiatic Co. Ltd. A/S
FLSmidth & Co. A/S
GN Store Nord A/S*
H. Lundbeck A/S
Jyske Bank A/S*
NKT Holding A/S
Novozymes A/S, Class B
Rockwool International A/S, Class B
Schouw & Co.
Simcorp A/S
Sydbank A/S*
Topdanmark A/S*
William Demant Holding*
$
25,970
40,878
5,959
13,877
16,909
41,308
17,253
106,899
85,433
85,257
46,677
32,550
122,087
34,620
85,843
43,310
21,620
24,270
61,291
56,963
12,280
955,284
2,756
5,245
2,563
5,025
1,408
2,020
6,958
3,044
2,097
974
611
31,226
3,876
4,271
3,199
1,890
1,752
3,518
8,570
1,878
3,160
684
3,534
Finland—2.1%
Alma Media Corp.
Amer Sports Oyj, Class A
Cargotec Corp., Class B
Citycon Oyj
Cramo Oyj*
HKScan Oyj, Class A
Huhtamaki Oyj
Kemira Oyj
Konecranes Oyj
Lassila & Tikanoja Oyj
Lemminkainen Oyj*
M-real Oyj, Class B*
Nokian Renkaat Oyj
Oriola-KD Oyj, Class B
Orion Oyj, Class B
Outotec Oyj
Poyry Oyj
Ramirent Oyj
Sponda Oyj
Stockmann Oyj Abp, Class B
Tieto Oyj
Tikkurila Oy*
Uponor Oyj
28,423
70,567
116,487
22,489
29,276
20,383
88,005
44,720
83,562
18,398
21,171
106,767
134,143
22,617
67,895
88,107
21,283
39,558
43,120
66,509
60,347
14,717
63,265
1,271,809
Schedule of Investments (Continued)
PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
719
7,895
350
1,093
242
166
2,424
602
4,154
572
4,406
2,539
768
185
10,037
329
4,246
381
1,193
120
397
506
9,917
1,040
15,607
124
2,230
516
315
666
744
620
805
1,155
262
332
926
573
5,052
431
735
234
899
992
561
291
1,822
213
1,927
France—3.5%
Alten Ltd.
$
Altran Technologies SA*
April Group
Beneteau SA*
bioMerieux
Bonduelle SCA
Bourbon SA
Boursorama*
Bull*
Bureau Veritas SA
Canal +
Club Mediterranee SA*
Dassault Systemes SA
Delachaux SA
Derichebourg SA*
EDF Energies Nouvelles SA
Etablissements Maurel et Prom
Etam Developpement SA*
Eutelsat Communications
Faiveley Transport
Fimalac
GL Events
Groupe Eurotunnel SA
Groupe Steria SCA
Havas SA
Iliad SA
IMS-International Metal Service*
Ingenico
Ipsen SA
Ipsos
Manitou BF SA*
Mercialys SA REIT
Mersen
Neopost SA
Orpea
Pierre & Vacances
Plastic Omnium SA
Remy Cointreau SA
Rhodia SA
Rubis
SEB SA
Seche Environnement SA
Sechilienne-Sidec
Societe BIC SA
Societe Fonciere Financiere et de Participations
Societe Immobiliere de Location
pour l’Industrie et le Commerce REIT
SOITEC*
Sopra Group SA
Teleperformance
Value
Common Stocks and Other
Equity Interests (Continued)
23,979
33,852
10,498
23,358
23,256
14,824
110,221
7,313
19,630
42,216
32,457
49,617
58,827
15,073
49,468
14,262
62,468
18,005
44,745
10,132
17,045
17,540
98,429
27,992
81,865
13,943
39,208
15,549
11,077
31,987
15,667
24,646
35,244
95,822
13,182
24,138
55,729
40,187
140,225
47,702
70,356
18,844
26,072
87,898
39,150
39,014
18,740
17,713
60,691
584
4,466
169
1,666
Trigano SA*
UbiSoft Entertainment SA*
Vilmorin & Cie
Zodiac Aerospace
$
15,016
58,032
17,939
117,446
2,098,289
2,784
7,074
1,068
549
877
383
1,159
816
1,207
3,015
8,961
1,593
1,884
608
1,325
207
3,179
261
348
3,042
894
829
31,454
829
6,214
2,759
596
2,253
66
2,941
1,860
3,448
1,233
737
2,466
9,092
139
6,595
73
1,398
2,444
1,028
12,409
Germany—3.7%
Aareal Bank AG*
Air Berlin PLC*
Alstria Office AG REIT
Bauer AG
Bechtle AG
Carl Zeiss Meditec AG
Comdirect Bank AG
Demag Cranes AG*
Deutsche Euroshop AG
Deutsche Wohnen AG*
Deutz AG*
DIC Asset AG
Douglas Holding AG
Duerr AG*
ElringKlinger AG
Fielmann AG
Freenet AG
Fuchs Petrolub AG
GfK SE
Gildemeister AG
H&R Wasag AG
Hamburger Hafen und Logistik AG
Heidelberger Druckmaschinen AG*
Indus Holding AG
IVG Immobilien AG*
Jenoptik AG*
Krones AG*
KUKA AG*
KWS Saat AG
Leoni AG*
Medion AG
MLP AG
MTU Aero Engines Holding AG
Nordex SE*
Pfleiderer AG*
Praktiker Bau- und Heimwerkermaerkte
Holding AG
Puma AG Rudolf Dassler Sport
Q-Cells SE*
Rational AG
Rhoen Klinikum AG
SGL Carbon SE*
Sixt AG
Sky Deutschland AG*
67,909
33,429
14,859
25,295
32,911
6,654
11,566
40,711
46,235
36,424
77,208
16,701
105,006
18,422
44,098
20,873
40,235
33,545
14,675
54,394
26,566
36,243
144,576
22,065
47,226
18,368
32,990
47,097
11,815
106,975
29,084
36,532
74,377
7,098
12,521
86,197
46,155
28,232
16,295
32,644
90,867
39,864
20,128
See Notes to Financial Statements.
79
Schedule of Investments (Continued)
PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
286
2,678
1,875
2,656
710
2,725
1,400
331
1,130
Software AG
Solarworld AG
Stada Arzneimittel AG
Symrise AG
Takkt AG
Tognum AG
United Internet AG
Vossloh AG
Wincor Nixdorf AG
4,659
Gibraltar—0.0%
PartyGaming PLC*
Common Stocks and Other
Equity Interests (Continued)
$
40,029
38,785
57,581
80,569
9,562
66,224
25,053
38,507
82,550
2,193,925
5,606
7,531
1,121
6,953
917
7,806
2,222
6,510
3,907
2,847
2,389
7,947
Greece—0.5%
Agricultural Bank of Greece*
Alapis Holding Industrial and Commercial SA
Athens Water Supply & Sewage Co. SA (The)
Ellaktor SA
Folli-Follie SA
Intralot SA-Integrated Lottery Systems &
Services
JUMBO SA
Mytilineos Holdings SA*
Sidenor Steel Products
Manufacturing Co. SA*
Titan Cement Co. SA
TT Hellenic Postbank SA*
Viohalco*
18,764
6,779
13,189
7,526
32,278
22,304
34,068
17,079
39,812
13,793
60,780
12,817
45,065
305,490
3,012
4,935
69,213
56,587
7,134
91,799
4,000
42,000
11,298
7,327
22,710
95,328
11,495
12,000
19,972
89,315
94,490
183,760
Hong Kong—2.8%
ASM Pacific Technology Ltd.
Cafe de Coral Holdings Ltd.
Champion REIT
Chaoda Modern Agriculture (Holdings) Ltd.
China Mengniu Dairy Co. Ltd.
China Travel International Investment
Hong Kong Ltd.*
Chow Sang Sang Holdings International Ltd.
Dah Chong Hong Holdings Ltd.
Dah Sing Banking Group Ltd.
Dah Sing Financial Holdings Ltd.
Digital China Holdings Ltd.
First Pacific Co. Ltd.
Fubon Bank Hong Kong Ltd.
Fushan International Energy Group Ltd.
Galaxy Entertainment Group Ltd.*
Giordano International Ltd.
Global Bio-Chem Technology
Group Co. Ltd.*
GOME Electrical Appliances Holdings Ltd.*
See Notes to Financial Statements.
80
Value
27,158
13,878
38,123
46,132
20,429
21,907
10,526
49,410
19,354
50,848
41,012
88,168
5,383
8,049
18,807
53,573
15,358
61,867
5,388
37,378
929
5,200
24,361
25,604
12,215
18,206
58,000
24,000
18,124
60,583
30,000
15,313
21,000
10,000
63,200
112,560
19,943
40,174
191,347
56,318
7,025
32,857
25,000
6,000
3,870
7,925
52,000
Hengan International Group Co. Ltd.
HKR International Ltd.
Hong Kong Aircraft Engineering Co. Ltd.
Hong Kong Exchanges & Clearing Ltd.
Hongkong & Shanghai Hotels Ltd. (The)
Hopewell Highway Infrastructure Ltd.
Hopewell Holdings Ltd.
Hopson Development Holdings Ltd.*
Hutchison Harbour Ring Ltd.
Hysan Development Co. Ltd.
Industrial & Commercial Bank of China
Asia Ltd.
Johnson Electric Holdings Ltd.
K Wah International Holdings Ltd.
Kowloon Development Co. Ltd.
Lee & Man Paper Manufacturing Ltd.
Lifestyle International Holdings Ltd.
New World China Land Ltd.
Pacific Basin Shipping Ltd.
Road King Infrastructure Ltd.
Shun Tak Holdings Ltd.
Sinolink Worldwide Holdings Ltd.
Techtronic Industries Co.
Television Broadcasts Ltd.
Texwinca Holdings Ltd.
Tian An China Investment
Truly International Holdings
VTech Holdings Ltd.
Wing Hang Bank Ltd.
Xinyi Glass Holdings Co. Ltd.
$
50,736
19,190
15,579
114,433
42,862
19,123
38,446
20,361
6,434
92,722
67,097
31,885
11,300
17,007
17,554
23,193
23,397
81,890
18,059
26,481
27,891
57,028
37,425
35,856
19,317
8,514
40,261
92,619
41,252
1,687,894
25,695
14,578
4,096
3,179
39,420
8,206
28,538
20,782
67,376
7,016
8,138
659
12,837
Ireland—1.2%
Aer Lingus Group PLC*
C&C Group PLC
DCC PLC
FBD Holdings PLC
Fyffes PLC
Glanbia PLC
Grafton Group PLC
Greencore Group PLC
Independent News & Media PLC*
James Hardie Industries SE*
Kingspan Group PLC
Paddy Power PLC
United Drug PLC
41,035
67,472
118,188
27,090
16,711
38,778
121,693
31,485
57,686
37,067
67,945
26,562
40,680
692,392
1,311
902
1,431
Israel—0.8%
Africa-Israel Investments Ltd.*
Alon Holdings Blue Square Ltd.
Cellcom Israel Ltd.
9,215
8,288
48,403
Schedule of Investments (Continued)
PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
2,618
471
682
407
402
839
690
1,015
238
645
27,045
1,062
385
7,600
6,836
3,677
951
720
1,825
117
3,020
704
Clal Industries Ltd.
$
Clal Insurance Enterprise Holdings Ltd.*
Delek Automotive Systems Ltd.
Elbit Imaging Ltd.*
Elbit Systems Ltd.
Elco Holdings Ltd.
First International Bank of Israel Ltd.
Gazit-Globe Ltd.
Harel Insurance Investments & Financial
Services Ltd.
Hot Telecommunication System Ltd.*
Israel Discount Bank Ltd., Class A*
Jerusalem Economy Ltd.*
Koor Industries Ltd.
Makhteshim-Agan Industries Ltd.*
Migdal Insurance & Financial Holding Ltd.
Mizrahi Tefahot Bank Ltd.
NICE Systems Ltd.*
Osem Investments Ltd.
Partner Communications Co. Ltd.
Paz Oil Co. Ltd.
Shufersal Ltd.
Strauss Group Ltd.
1,193
10,889
2,475
2,484
1,536
5,760
1,947
48,560
2,206
4,989
6,664
77,052
1,680
665
5,907
1,789
826
27,284
2,096
1,570
8,586
4,470
19,196
21,943
2,987
Italy—2.4%
Ansaldo STS SpA
Arnoldo Mondadori Editore SpA*
Astaldi SpA
Autostrada Torino-Milano SpA
Azimut Holding SpA
Banca Popolare dell’Etruria e del Lazio Scrl*
Banco di Desio e della Brianza SpA
Beni Stabili SpA
Brembo SpA
Bulgari SpA
Cementir Holding SpA
Cofide SpA*
Danieli & C Officine Meccaniche Spa-RSP
Danieli SpA
Davide Campari-Milano SpA
Esprinet SpA
Fastweb SpA*
Gemina SpA*
Geox SpA
Gruppo Coin SpA*
Gruppo Editoriale L’Espresso SpA*
Immobiliare Grande Distribuzione REIT
Immsi SpA
Impregilo SpA*
Indesit Co. SpA
Value
Common Stocks and Other
Equity Interests (Continued)
19,535
12,617
8,386
5,773
21,515
12,366
9,758
12,344
13,524
8,530
55,266
11,672
9,663
38,246
14,169
34,435
30,962
11,396
36,847
18,582
18,500
11,134
481,126
16,424
38,328
18,163
35,595
15,649
26,659
11,170
49,304
24,176
53,359
23,133
73,360
25,032
17,524
37,418
17,779
20,631
21,881
12,585
16,508
22,793
8,947
23,479
70,147
36,887
523
3,650
34,595
52,682
4,494
1,622
6,243
12,961
50,660
5,218
11,939
2,986
4,161
222,095
3,470
2,435
4,650
7,813
286
Industria Macchine Automatiche SpA
$
Interpump Group SpA*
Iren SpA
KME Group*
Maire Tecnimont SpA
Marr SpA
Piaggio & C. SpA
Piccolo Credito Valtellinese Scarl
Prelios SpA*
Prysmian SpA
RCS MediaGroup SpA*
Recordati SpA
Safilo Group SpA*
Seat Pagine Gialle SpA*
Societa’ Cattolica di Assicurazioni Scrl
Societa Iniziative Autostradali e Servizi SpA
Sogefi SpA*
Sorin SpA*
Tod’s SpA
11,035
23,780
60,730
24,420
19,410
17,584
22,734
65,663
29,679
101,027
19,000
29,363
65,582
40,531
94,241
23,014
16,093
18,960
27,695
1,427,472
12,000
200
4,200
2,500
4,700
1,800
2,200
200
2,000
3,000
4,000
800
4,500
4,000
600
2,100
2,600
8,700
1,800
5,000
3,100
27,000
1,700
2,300
2,000
400
1,800
800
4,000
Japan—24.3%
77 Bank Ltd. (The)
ABC-Mart, Inc.
ADEKA Corp.
Advantest Corp.
AEON Credit Service Co. Ltd.
AEON Mall Co. Ltd.
Aica Kogyo Co. Ltd.
Aichi Bank Ltd. (The)
Aichi Machine Industry Co. Ltd.
Aichi Steel Corp.
Air Water, Inc.
Aisan Industry Co. Ltd.
Akebono Brake Industry Co. Ltd.
Akita Bank Ltd. (The)
Alpen Co. Ltd.
Alpine Electronics, Inc.
Amano Corp.
AOC Holdings, Inc.*
AOKI Holdings, Inc.
Aomori Bank Ltd. (The)
Aoyama Trading Co. Ltd.
Aozora Bank Ltd.
Arcs Co. Ltd.
Asatsu-DK, Inc.
Asics Corp.
ASKUL Corp.
Autobacs Seven Co. Ltd.
Avex Group Holdings, Inc.
Awa Bank Ltd. (The)
56,611
6,796
44,842
47,518
54,031
42,190
24,690
11,186
6,828
16,648
46,629
6,009
26,760
11,273
9,274
26,279
21,400
38,234
25,475
12,166
50,377
45,251
22,012
52,939
21,577
8,303
67,375
11,521
27,163
See Notes to Financial Statements.
81
Schedule of Investments (Continued)
PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
300
8,000
6,000
400
4,000
2,400
2,650
1,900
15,000
76
8,000
400
800
300
11,300
6,000
1,800
6,000
500
7,000
1,700
5,000
2,000
2,400
11,100
3,000
600
2,200
1,800
2,800
4,900
7,700
2,800
2,000
10,000
21,000
3,000
3,000
2,000
8,000
2,000
6,000
6,000
17,000
3,000
21,000
200
1,900
16,000
2,800
Bank of Iwate Ltd. (The)
$
Bank of Kyoto Ltd. (The)
Bank of Nagoya Ltd. (The)
Bank of Okinawa Ltd. (The)
Bank of Saga Ltd. (The)
Bank of The Ryukyus Ltd.
Belluna Co. Ltd.
Benesse Holdings, Inc.
Best Denki Co. Ltd.*
BIC Camera, Inc.
Calsonic Kansei Corp.*
Canon Electronics, Inc.
Capcom Co. Ltd.
Cawachi Ltd.
Cedyna Financial Corp.*
Central Glass Co. Ltd.
Chiyoda Co. Ltd.
Chiyoda Corp.
Chofu Seisakusho Co. Ltd.
Chori Co. Ltd.
Chudenko Corp.
Chugoku Bank Ltd. (The)
Chukyo Bank Ltd. (The)
Circle K Sunkus Co. Ltd.
Citizen Holdings Co. Ltd.
Clarion Co. Ltd.*
Cleanup Corp.
CMK Corp.
Coca-Cola Central Japan Co. Ltd.
Coca-Cola West Co. Ltd.
COMSYS Holdings Corp.
CSK Holdings Corp.*
Culture Convenience Club Co. Ltd.
Daibiru Corp.
Daicel Chemical Industries Ltd.
Daido Steel Co. Ltd.
Daifuku Co. Ltd.
Daiichi Chuo Kisen Kaisha*
Daiken Corp.
Daikyo, Inc.*
Dainichiseika Color & Chemicals
Manufacturing Co. Ltd.
Dainippon Screen Manufacturing Co. Ltd.*
Daio Paper Corp.
Daishi Bank Ltd. (The)
DCM Holdings Co. Ltd.
Denki Kagaku Kogyo Kabushiki Kaisha
Disco Corp.
Don Quijote Co. Ltd.
DOWA Holdings Co. Ltd.
Duskin Co. Ltd.
See Notes to Financial Statements.
82
Value
Common Stocks and Other
Equity Interests (Continued)
12,682
71,509
18,175
15,394
10,528
27,858
12,600
91,167
42,086
30,145
26,816
10,498
12,564
5,296
15,712
25,847
21,743
49,683
10,099
7,561
17,454
57,976
5,909
34,027
63,803
4,655
3,620
8,685
22,682
42,791
43,495
25,810
12,444
15,419
69,522
106,890
14,264
6,816
4,618
12,415
8,417
34,115
38,957
52,551
15,270
92,290
11,583
51,870
97,132
49,152
200
15,000
6,800
4,000
6,000
200
4,500
700
3,000
2,200
700
400
300
600
8,000
2,200
2,200
2,000
2,000
4,000
3,000
300
23,000
6,000
2,000
5,300
500
24
2,000
17,000
510
3,000
290
15,000
6,000
4,000
1,700
84,000
1,700
9,500
2,100
4,000
5,000
700
600
20,000
800
500
17,000
2,100
2,100
DyDo Drinco, Inc.
$
Ebara Corp.*
EDION Corp.
Ehime Bank Ltd. (The)
Eighteenth Bank Ltd. (The)
EIZO Nanao Corp.
Elpida Memory, Inc.*
EXEDY Corp.
Ezaki Glico Co. Ltd.
FamilyMart Co. Ltd.
Fancl Corp.
FCC Co. Ltd.
FP Corp.
Fuji Co. Ltd.
Fuji Fire & Marine Insurance Co. Ltd. (The)*
Fuji Oil Co. Ltd.
Fuji Soft, Inc.
Fujitec Co. Ltd.
Fujitsu General Ltd.
Fukui Bank Ltd. (The)
Fukuyama Transporting Co. Ltd.
Funai Electric Co. Ltd.
Furukawa Co. Ltd.*
Furukawa-Sky Aluminum Corp.
Futaba Corp.
Futaba Industrial Co. Ltd.*
Fuyo General Lease Co. Ltd.
Geo Corp.
Glory Ltd.
Godo Steel Ltd.
Goldcrest Co. Ltd.
GS Yuasa Corp.
Gulliver International Co. Ltd.
Gunma Bank Ltd. (The)
Gunze Ltd.
H2O Retailing Corp.
Hamamatsu Photonics KK
Haseko Corp.*
Heiwa Corp.
Heiwa Real Estate Co. Ltd.
Heiwado Co. Ltd.
Higashi-Nippon Bank Ltd. (The)
Higo Bank Ltd. (The)
Hikari Tsushin, Inc.
Hirose Electric Co. Ltd.
Hiroshima Bank Ltd. (The)
HIS Co. Ltd.
Hisamitsu Pharmaceutical Co., Inc.
Hitachi Cable Ltd.
Hitachi Capital Corp.
Hitachi Koki Co. Ltd.
6,632
64,246
50,314
10,428
14,898
4,070
46,090
21,882
36,760
78,005
10,767
8,576
16,555
11,769
9,932
31,600
32,529
8,963
9,609
12,315
14,860
9,203
23,700
15,866
35,109
28,161
14,190
25,266
44,072
32,079
10,998
20,000
14,149
75,234
20,857
26,170
54,915
71,955
21,400
25,121
25,810
7,201
23,277
13,209
60,335
81,689
17,023
20,484
40,521
27,948
17,858
Schedule of Investments (Continued)
PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
2,000
1,000
1,700
43,500
7,000
5,000
3,500
600
2,100
4,700
2,200
7,000
12,000
600
2,600
1,900
10,100
4,000
24,000
2,200
2,700
8,700
600
6,000
22,000
7,000
2,800
6,000
15,000
23,000
500
2,200
1,000
700
2,000
6,000
2,900
3,000
2,000
3,000
2,000
8,000
4,600
600
2,600
2,300
4,000
1,000
5,000
3,000
98,000
Hitachi Kokusai Electric, Inc.
Hitachi Medical Corp.
Hitachi Transport System Ltd.
Hitachi Zosen Corp.
Hokkoku Bank Ltd. (The)
Hokuetsu Bank Ltd. (The)
Hokuetsu Kishu Paper Co. Ltd.
Horiba Ltd.
Hoshizaki Electric Co. Ltd.
Hosiden Corp.
House Foods Corp.
Hyakugo Bank Ltd. (The)
Hyakujushi Bank Ltd. (The)
IBJ Leasing Co. Ltd.
Iino Kaiun Kaisha Ltd.
Inaba Denki Sangyo Co. Ltd.
Inabata & Co. Ltd.
Iseki & Co. Ltd.*
Ishihara Sangyo Kaisha Ltd.*
IT Holdings Corp.
ITO EN Ltd.
ITOCHU Enex Co. Ltd.
ITOCHU Techno-Solutions Corp.
Itoham Foods, Inc.
Iwatani Corp.
Iyo Bank Ltd. (The)
Izumi Co. Ltd.
Izumiya Co. Ltd.
J Front Retailing Co. Ltd.
Jaccs Co. Ltd.
Jafco Co. Ltd.
Japan Airport Terminal Co. Ltd.
Japan Aviation Electronics Industry Ltd.
Japan Petroleum Exploration Co. Ltd.
Japan Pulp & Paper Co. Ltd.
Japan Radio Co. Ltd.
Japan Securities Finance Co. Ltd.
Japan Steel Works Ltd. (The)
Japan Wool Textile Co. Ltd. (The)
J-Oil Mills, Inc.
Joshin Denki Co. Ltd.
Juroku Bank Ltd. (The)
JVC KENWOOD Holdings, Inc.*
Kadokawa Group Holdings, Inc.
Kaga Electronics Co. Ltd.
Kagome Co. Ltd.
Kagoshima Bank Ltd. (The)
Kaken Pharmaceutical Co. Ltd.
Kamigumi Co. Ltd.
Kandenko Co. Ltd.
Kanematsu Corp.*
Value
Common Stocks and Other
Equity Interests (Continued)
$
18,150
6,406
26,381
62,644
28,156
8,814
16,164
14,711
41,348
46,562
32,474
29,460
43,203
12,618
11,620
47,883
50,406
9,733
17,281
24,308
43,340
39,962
20,447
19,367
63,637
52,142
36,951
20,261
76,908
43,402
10,441
36,052
6,629
26,723
6,754
13,557
17,749
28,566
15,320
7,933
18,523
24,134
16,847
14,078
27,888
43,287
23,935
10,950
39,044
17,467
80,298
4,000
19,000
5,100
2,600
2,200
11,000
19,000
2,100
8,000
6,000
4,000
2,100
5,500
4,000
300
800
4,000
22,000
400
1,900
3,000
2,900
6,900
1,800
2,900
4,100
600
2,100
43,000
17,000
4,000
8,000
2,100
1,700
1,700
1,000
4,700
4,000
800
8,000
500
500
19,000
3,000
3,000
700
5,000
2,000
48,000
2,400
300
Kansai Paint Co. Ltd.
Kansai Urban Banking Corp.
Kanto Auto Works Ltd.
Kasumi Co. Ltd.
Kato Sangyo Co. Ltd.
Kayaba Industry Co. Ltd.
Keihan Electric Railway Co. Ltd.
Keihin Corp.
Keihin Electric Express Railway Co. Ltd.
Keisei Electric Railway Co. Ltd.
Keiyo Bank Ltd. (The)
Keiyo Co. Ltd.
Kewpie Corp.
Kikkoman Corp.
Kintetsu World Express, Inc.
Kissei Pharmaceutical Co. Ltd.
Kitz Corp.
Kiyo Holdings, Inc.
Kobayashi Pharmaceutical Co. Ltd.
Kohnan Shoji Co. Ltd.
Koito Manufacturing Co. Ltd.
Kojima Co. Ltd.
Kokuyo Co. Ltd.
Komeri Co. Ltd.
Komori Corp.
Konami Corp.
Kose Corp.
K’s Holdings Corp.
Kumagai Gumi Co. Ltd.*
Kurabo Industries Ltd.
KUREHA Corp.
Kurimoto Ltd.*
Kurita Water Industries Ltd.
Kuroda Electric Co. Ltd.
Kyoei Steel Ltd.
KYORIN Holdings, Inc.
Kyowa Exeo Corp.
Kyudenko Corp.
Lintec Corp.
Lion Corp.
Mabuchi Motor Co. Ltd.
Macnica, Inc.
Maeda Corp.
Maeda Road Construction Co. Ltd.
Makino Milling Machine Co. Ltd.*
Mars Engineering Corp.
Marudai Food Co. Ltd.
Maruetsu, Inc. (The)
Maruha Nichiro Holdings, Inc.
Maruichi Steel Tube Ltd.
Matsuda Sangyo Co. Ltd.
$
37,294
29,485
32,734
13,234
31,354
64,457
83,501
44,711
75,581
40,074
18,125
10,115
69,919
43,104
6,972
15,871
17,728
29,497
18,622
21,960
39,218
14,005
52,683
37,408
28,514
72,176
14,369
52,169
26,692
26,170
22,644
9,137
54,540
19,733
20,746
15,593
41,369
20,559
17,957
43,103
26,474
9,603
51,421
20,782
20,633
11,019
14,277
7,076
78,660
47,464
5,169
See Notes to Financial Statements.
83
Schedule of Investments (Continued)
PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
2,500
800
1,000
4,000
1,800
3,000
2,600
400
6,000
15,000
800
600
9,600
600
2,000
3,000
26,000
8,000
1,210
29,000
1,000
39,000
3,000
3,900
500
6,000
6,000
24,000
4,000
2,000
26
4,200
7,000
18,000
800
800
1,000
7,000
3,000
22,000
5,000
600
800
21
3,000
7,000
3,000
2,400
1,700
18,000
1,000
Matsui Securities Co. Ltd.
$
Matsumotokiyoshi Holdings Co. Ltd.
Max Co. Ltd.
Meidensha Corp.
Meitec Corp.*
Mie Bank Ltd. (The)
Mikuni Coca-Cola Bottling Co. Ltd.
Mimasu Semiconductor Industry Co. Ltd.
Minato Bank Ltd. (The)
Minebea Co. Ltd.
Ministop Co. Ltd.
Miraca Holdings, Inc.
Misawa Homes Co. Ltd.*
MISUMI Group, Inc.
Mitsuba Corp.*
Mitsubishi Logistics Corp.
Mitsubishi Paper Mills Ltd.*
Mitsubishi Steel Manufacturing Co. Ltd.
Mitsubishi UFJ Lease & Finance Co. Ltd.
Mitsui Engineering & Shipbuilding Co. Ltd.
Mitsui Home Co. Ltd.
Mitsui Mining & Smelting Co. Ltd.
Mitsui-Soko Co. Ltd.
Mitsumi Electric Co. Ltd.
Miura Co. Ltd.
Mizuho Investors Securities Co. Ltd.*
Mizuho Securities Co. Ltd.
Mizuho Trust & Banking Co. Ltd.*
Mizuno Corp.
Mochida Pharmaceutical Co. Ltd.
Monex Group, Inc.
Mori Seiki Co. Ltd.
Morinaga & Co. Ltd.
Morinaga Milk Industry Co. Ltd.
Musashi Seimitsu Industry Co. Ltd.
Musashino Bank Ltd. (The)
Nabtesco Corp.
Nachi-Fujikoshi Corp.
Nagase & Co. Ltd.
Nakayama Steel Works Ltd.*
Nanto Bank Ltd. (The)
NEC Fielding Ltd.
NEC Networks & System Integration Corp.
NET One Systems Co. Ltd.
NGK Spark Plug Co. Ltd.
NHK Spring Co. Ltd.
Nichias Corp.
Nichicon Corp.
Nichii Gakkan Co.
Nichirei Corp.
Nidec Sankyo Corp.
See Notes to Financial Statements.
84
Value
Common Stocks and Other
Equity Interests (Continued)
14,153
15,027
11,024
14,252
35,888
7,858
22,240
3,923
8,864
82,308
11,829
21,572
35,993
12,849
12,862
36,276
26,468
19,069
40,439
65,525
4,482
118,622
11,285
66,381
11,316
5,512
12,737
21,453
17,083
21,676
6,172
40,983
15,990
73,296
19,039
23,210
17,691
20,944
35,121
27,312
26,195
6,451
9,326
29,277
41,788
59,354
12,924
26,756
14,626
78,436
7,089
1,700
700
1,000
4,600
3,000
4,000
11,000
2,000
2,000
4,000
3,000
1,000
53,000
8,000
4,000
3,000
1,000
1,000
4,000
4,000
18,700
10,000
1,700
46,000
500
26,000
9,000
3,000
2,000
4,400
500
5,000
4,000
2,300
200
2,000
7,000
5,000
2,600
4,000
1,900
2,100
500
41
70
17,000
5,000
3,000
3,000
87,000
500
Nifco, Inc.
Nihon Kohden Corp.
Nihon Parkerizing Co. Ltd.
Nihon Unisys Ltd.
Nippo Corp.
Nippon Chemi-Con Corp.*
Nippon Coke & Engineering Co. Ltd.
Nippon Denko Co. Ltd.
Nippon Densetsu Kogyo Co. Ltd.
Nippon Flour Mills Co. Ltd.
Nippon Kayaku Co. Ltd.
Nippon Konpo Unyu Soko Co. Ltd.
Nippon Light Metal Co. Ltd.*
Nippon Metal Industry Co. Ltd.*
Nippon Paint Co. Ltd.
Nippon Road Co. Ltd. (The)
Nippon Seiki Co. Ltd.
Nippon Shinyaku Co. Ltd.
Nippon Shokubai Co. Ltd.
Nippon Soda Co. Ltd.
Nippon Suisan Kaisha Ltd.
Nippon Yakin Kogyo Co. Ltd.*
Nipro Corp.
Nishimatsu Construction Co. Ltd.
Nishimatsuya Chain Co. Ltd.
Nishi-Nippon City Bank Ltd. (The)
Nishi-Nippon Railroad Co. Ltd.
Nissan Chemical Industries Ltd.
Nissan Shatai Co. Ltd.
Nissen Holdings Co. Ltd.
Nissha Printing Co. Ltd.
Nisshin Oillio Group Ltd. (The)
Nisshinbo Holdings, Inc.
Nissin Kogyo Co. Ltd.
Nitori Co. Ltd.
Nittetsu Mining Co. Ltd.
Nitto Boseki Co. Ltd.
NOF Corp.
Nomura Real Estate Holdings, Inc.
Noritake Co. Ltd.
Noritsu Koki Co. Ltd.*
Noritz Corp.
NS Solutions Corp.
NTT Urban Development Corp.
OBIC Co. Ltd.
Ogaki Kyoritsu Bank Ltd. (The)
Oita Bank Ltd. (The)
Okamura Corp.
Okasan Securities Group, Inc.
Oki Electric Industry Co. Ltd.*
Okinawa Electric Power Co., Inc. (The)
$
42,780
13,305
13,122
29,295
18,585
15,990
17,890
14,823
18,051
19,119
29,162
10,838
88,827
9,733
29,497
6,108
10,118
14,153
37,741
17,232
59,431
29,423
34,633
49,112
4,811
71,012
38,547
34,376
15,543
19,010
11,024
21,974
40,472
39,004
17,579
7,523
16,251
23,029
39,863
12,514
10,874
38,480
9,286
37,564
12,914
47,697
15,767
15,754
9,721
75,606
22,967
Schedule of Investments (Continued)
PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
4,000
7,000
1,000
8,000
38,500
500
200
2,400
400
4,000
2,000
2,700
1,800
2,200
37,000
8
30,600
500
7,000
22,000
10,000
1,800
400
3,000
700
1,000
2,000
2,200
6,000
3,000
600
2,400
2,600
5,000
3,000
200
2,000
6,000
800
5,000
7,000
3,000
25,000
7,000
3,000
1,700
18,000
2,000
3,000
5,000
7,700
OKUMA Corp.*
Okumura Corp.
Okuwa Co. Ltd.
Onward Holdings Co. Ltd.
Orient Corp.*
Osaka Steel Co. Ltd.
Osaka Titanium Technologies Co.
OSG Corp.
Otsuka Corp.
Pacific Metals Co. Ltd.
PanaHome Corp.
Parco Co. Ltd.
Paris Miki Holdings, Inc.
Park24 Co. Ltd.
Penta-Ocean Construction Co. Ltd.
PGM Holdings K K
Pioneer Corp.*
Plenus Co. Ltd.
Press Kogyo Co. Ltd.*
Prima Meat Packers Ltd.
Rengo Co. Ltd.
Resorttrust, Inc.
Ricoh Leasing Co. Ltd.
Riken Corp.
Rinnai Corp.
Rohto Pharmaceutical Co. Ltd.
Roland Corp.
Round One Corp.
Ryobi Ltd.*
Ryoden Trading Co. Ltd.
Ryohin Keikaku Co. Ltd.
Ryosan Co. Ltd.
Ryoyo Electro Corp.
Saibu Gas Co. Ltd.
Sakai Chemical Industry Co. Ltd.
San-A Co. Ltd., Class A
San-Ai Oil Co. Ltd.
Sanden Corp.
Sangetsu Co. Ltd.
San-in Godo Bank Ltd. (The)
Sanken Electric Co. Ltd.
Sanki Engineering Co. Ltd.
Sankyo-Tateyama Holdings, Inc.*
Sankyu, Inc.
Sanshin Electronics Co. Ltd.
Santen Pharmaceutical Co. Ltd.
Sanwa Holdings Corp.
Sanyo Chemical Industries Ltd.
Sanyo Shokai Ltd.
Sanyo Special Steel Co. Ltd.
Sapporo Hokuyo Holdings, Inc.
Value
Common Stocks and Other
Equity Interests (Continued)
$
23,737
24,420
9,410
59,689
26,288
7,443
9,361
25,058
25,376
33,271
12,191
20,782
14,413
21,249
55,580
5,234
105,610
7,213
26,418
22,669
63,687
27,889
9,912
10,130
42,582
12,377
20,757
8,166
22,048
16,052
21,274
59,054
24,015
14,214
12,626
7,970
8,442
24,209
17,450
34,575
25,028
18,696
28,554
29,373
24,283
58,629
51,396
14,873
11,769
24,581
31,737
11,000
8,000
9,000
3,000
2,900
121,210
5,000
4,000
700
2,100
5,000
400
1,700
2,100
2,200
2,200
5,000
3,000
1,000
6,300
3,000
2,000
2,400
21
2,600
8
6,000
800
4,200
2,100
300
6,000
800
6,000
39,000
30,000
220
4,000
300
4,000
21,000
100
2,200
4,000
2,000
1,700
8,000
3,000
300
4,000
2,000
Sapporo Holdings Ltd.
Seiko Holdings Corp.*
Seino Holdings Co. Ltd.
Senko Co. Ltd.
Senshukai Co. Ltd.
SFCG Co. Ltd.*
Shiga Bank Ltd. (The)
Shikoku Bank Ltd. (The)
Shima Seiki Manufacturing Ltd.
Shimachu Co. Ltd.
Shimadzu Corp.
Shimamura Co. Ltd.
Shimano, Inc.
Shin-Etsu Polymer Co. Ltd.
Shinko Electric Industries Co. Ltd.
Shinko Shoji Co. Ltd.
Shinmaywa Industries Ltd.
Shinwa Kaiun Kaisha Ltd.
Shizuoka Gas Co. Ltd.
Showa Corp.*
Showa Sangyo Co. Ltd.
Sinanen Co. Ltd.
Sintokogio Ltd.
SKY Perfect JSAT Holdings, Inc.
Sohgo Security Services Co. Ltd.
Sony Financial Holdings, Inc.
Sotetsu Holdings, Inc.
Square Enix Holdings Co. Ltd.
Stanley Electric Co. Ltd.
Star Micronics Co. Ltd.
Sugi Holdings Co. Ltd.
Sumikin Bussan Corp.
Sumisho Computer Systems Corp.
Sumitomo Bakelite Co. Ltd.
Sumitomo Light Metal Industries Ltd.*
Sumitomo Osaka Cement Co. Ltd.
Sumitomo Real Estate Sales Co. Ltd.
Sumitomo Warehouse Co. Ltd. (The)
Sundrug Co. Ltd.
Suruga Bank Ltd.
SWCC Showa Holdings Co. Ltd.*
Sysmex Corp.
Tachi-S Co. Ltd.
Tadano Ltd.
Taihei Kogyo Co. Ltd.
Taikisha Ltd.
Taiyo Nippon Sanso Corp.
Taiyo Yuden Co. Ltd.
Takamatsu Construction Group Co. Ltd.
Takara Holdings, Inc.
Takara Standard Co. Ltd.
$
43,289
27,014
54,861
9,125
16,201
0
26,257
11,173
13,366
43,095
37,554
38,336
84,842
11,106
21,385
16,278
17,381
7,635
5,860
42,000
8,045
7,623
18,205
6,940
27,210
27,809
18,994
16,715
70,443
20,022
6,696
11,918
11,839
32,477
43,091
58,101
9,860
20,757
8,343
36,052
16,425
6,853
32,092
17,877
8,467
22,836
64,258
38,510
3,896
22,744
12,291
See Notes to Financial Statements.
85
Schedule of Investments (Continued)
PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
2,000
4,200
2,100
5
3,900
19,000
6,000
2,000
19,000
3,000
6,000
3,900
4,600
3,000
4,000
2,000
1,800
5,000
490
8,000
5,000
1,800
1,700
6,700
2,000
19,000
2,000
9,500
2,300
2,200
1,900
800
22,000
2,000
1,000
6,000
11,000
4,000
5,000
1,000
2,000
20,000
42,000
2,300
1,900
700
2,000
5,000
500
200
6
Takasago International Corp.
Takasago Thermal Engineering Co. Ltd.
Takata Corp.
T-Gaia Corp.
THK Co. Ltd.
Toa Corp.
Toagosei Co. Ltd.
Tochigi Bank Ltd. (The)
Toda Corp.
Toei Co. Ltd.
Toho Bank Ltd. (The)
Toho Co. Ltd.
Toho Holdings Co. Ltd.
Toho Zinc Co. Ltd.
Tokai Carbon Co. Ltd.
Tokai Rika Co. Ltd.
Tokai Rubber Industries Ltd.
Tokai Tokyo Financial Holdings, Inc.
Token Corp.
Tokuyama Corp.
Tokyo Dome Corp.
Tokyo Ohka Kogyo Co. Ltd.
Tokyo Seimitsu Co. Ltd.
Tokyo Steel Manufacturing Co. Ltd.
Tokyo Style Co. Ltd.
Tokyo Tatemono Co. Ltd.
Tokyo Tomin Bank Ltd. (The)
Tomony Holdings, Inc.*
Tomy Co. Ltd.
Topcon Corp.
Toppan Forms Co. Ltd.
Topre Corp.
Topy Industries Ltd.
Toshiba Machine Co. Ltd.
Toshiba Plant Systems & Services Corp.
Toshiba TEC Corp.
TOTO Ltd.
Toyo Engineering Corp.
Toyo Ink Manufacturing Co. Ltd.
Toyo Kohan Co. Ltd.
Toyo Suisan Kaisha Ltd.
Toyo Tire & Rubber Co. Ltd.
Toyobo Co. Ltd.
transcosmos, Inc.
Trend Micro, Inc.
Trusco Nakayama Corp.
TS Tech Co. Ltd.
Tsubakimoto Chain Co.
Tsumura & Co.
Tsuruha Holdings, Inc.
TV Asahi Corp.
See Notes to Financial Statements.
86
Value
Common Stocks and Other
Equity Interests (Continued)
$
9,634
29,669
51,516
7,306
74,950
16,040
26,294
8,293
64,158
12,402
15,940
60,134
64,359
12,626
23,588
33,544
21,095
17,380
15,038
43,799
12,477
33,251
21,970
66,376
15,891
76,660
18,845
33,023
17,675
8,467
16,865
5,840
54,078
8,219
13,147
23,613
72,923
12,713
20,360
5,053
42,855
41,217
69,869
18,132
53,733
10,194
32,775
22,098
15,369
8,603
8,447
300
1,700
900
2,300
800
29,000
2,500
540
2,600
3,000
600
2,600
3,000
4,000
5,000
2,000
1,700
5,000
200
5,000
6,000
7,900
2,500
19,000
1,500
17
27,000
400
2,300
8,000
TV Tokyo Holdings Corp.*
Ulvac, Inc.
Unicharm Corp.
Unihair Co. Ltd.*
Unipres Corp.
Unitika Ltd.*
Ushio, Inc.
USS Co. Ltd.
Valor Co. Ltd.
Wacoal Holdings Corp.
Xebio Co. Ltd.
Yakult Honsha Co. Ltd.
Yamagata Bank Ltd. (The)
Yamaguchi Financial Group, Inc.
Yamanashi Chuo Bank Ltd. (The)
Yamatake Corp.
Yamato Kogyo Co. Ltd.
Yamazen Corp.
Yaoko Co. Ltd.
Yaskawa Electric Corp.
Yodogawa Steel Works Ltd.
Yokogawa Electric Corp.
Yokohama Reito Co. Ltd.
Yokohama Rubber Co. Ltd. (The)
Yonekyu Corp.
Yoshinoya Holdings Co. Ltd.
Yuasa Trading Co. Ltd.*
Yusen Air & Sea Service Co. Ltd.
Zensho Co. Ltd.
Zeon Corp.
12,556
20,429
5,957
18,720
531
23,874
Jersey Island—0.7%
Atrium European Real Estate Ltd.
Beazley PLC
Charter International PLC
Informa PLC
Randgold Resources Ltd.
Regus PLC
$
4,331
34,253
34,358
26,869
13,845
24,122
41,620
41,966
19,302
43,687
11,769
75,950
12,998
36,300
19,305
48,641
43,561
20,422
5,472
39,044
22,197
51,882
15,890
95,058
11,210
20,788
22,458
5,532
21,215
65,947
14,528,645
75,339
39,423
70,288
130,492
49,452
32,998
397,992
323
229
Liechtenstein—0.1%
Liechtensteinische Landesbank AG
Verwaltungs- und Privat-Bank AG
21,938
24,891
46,829
15,523
3,605
Luxembourg—0.1%
Colt Group SA*
GAGFAH SA
30,030
31,607
61,637
3,500
Malaysia—0.0%
Parkson Retail Group Ltd.
6,330
Schedule of Investments (Continued)
PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
3,840
1,589
1,230
1,499
7,809
3,467
2,758
1,550
1,645
1,670
3,843
3,254
2,009
885
15,385
3,434
1,621
3,150
917
1,208
1,332
2,296
5,435
1,498
996
2,807
920
Netherlands—2.8%
Aalberts Industries NV
$
AMG Advanced Metallurgical Group NV*
Arcadis NV
ASM International NV*
Brit Insurance Holdings NV*
CSM NV
Draka Holding NV*
Eurocommercial Properties NV REIT
Fugro NV CVA
Gemalto NV
Heijmans NV CVA*
Imtech NV
Koninklijke Boskalis Westminster NV
Koninklijke Vopak NV
Koninklijke Wessanen NV*
Mediq NV
Nieuwe Steen Investments Funds NV REIT
QIAGEN NV*
Sligro Food Group NV
Ten Cate NV
TKH Group NV
TomTom NV*
USG People NV*
Vastned Offices/Industrial NV REIT
Vastned Retail NV REIT
Wavin NV*
Wereldhave NV REIT
Common Stocks and Other
Equity Interests (Continued)
70,051
14,713
27,387
38,211
130,469
109,627
58,650
76,576
116,217
75,948
72,376
109,178
81,256
44,208
57,736
65,604
33,424
59,609
29,990
39,843
33,139
20,108
100,810
25,287
69,148
38,679
93,422
1,691,666
16,389
29,843
12,034
70,470
10,794
36,187
10,161
23,256
5,010
8,185
New Zealand—0.6%
Air New Zealand Ltd.
Auckland International Airport Ltd.
Contact Energy Ltd.*
Fisher & Paykel Appliances Holdings Ltd.*
Fisher & Paykel Healthcare Corp. Ltd.
Kiwi Income Property Trust REIT
Nuplex Industries Ltd.
Sky City Entertainment Group Ltd.
Sky Network Television Ltd.
Warehouse Group Ltd. (The)
2,272
3,410
2,491
2,840
703
426
61,040
68,144
Norway—1.5%
Acergy SA
Atea ASA
Cermaq ASA*
EDB Business Partner ASA*
Fred. Olsen Energy ASA
Leroy Seafood Group ASA
Marine Harvest ASA
Norske Skogindustrier ASA*
Value
16,921
47,930
53,842
32,337
26,747
29,060
26,344
53,714
20,806
24,977
332,678
45,640
28,662
31,407
8,632
26,262
11,140
60,323
138,276
7,123
9,662
20,646
1,895
4,897
4,975
2,026
3,268
1,618
5,404
Petroleum Geo-Services ASA*
Prosafe SE
Renewable Energy Corp. ASA*
Schibsted ASA
Sparebanken 1 SMN
Sparebanken 1 SR Bank
Stolt-Nielsen SA
Subsea 7, Inc.*
TGS Nopec Geophysical Co. ASA
Veidekke ASA
$
88,537
63,346
71,413
51,807
44,071
47,308
36,123
68,311
27,887
44,505
893,650
11,373
5,451
9,615
7,732
2,863
10,104
7,974
18,169
12,410
Portugal—0.4%
Banif SGPS SA
Mota-Engil SGPS SA
Portucel Empresa Produtora de Pasta e
Papel SA
Redes Energeticas Nacionais SA
Semapa-Sociedade de Investimento e
Gestao SGPS SA
Sonae Industria SGPS SA*
Sonaecom SGPS SA*
Teixeira Duarte SA
Zon Multimedia Servicos de
Telecomunicacoes e Multimedia SGPS SA
16,756
16,213
31,980
29,005
33,784
31,177
18,021
25,001
65,976
267,913
27,000
42,000
68,000
53,000
87,000
26,000
45,000
4,000
3,000
3,000
5,000
5,000
27,000
18,000
7,000
19,000
44,000
27,300
8,000
65,000
8,000
4,000
22,000
10,000
Singapore—2.1%
Allgreen Properties Ltd.
Ascendas REIT
CapitaCommercial Trust REIT
CapitaMall Trust REIT
ComfortDelGro Corp. Ltd.
Cosco Corp. Singapore Ltd.
Fortune REIT
Guocoland Ltd.
Haw Par Corp. Ltd.
Hong Leong Asia Ltd.
Hotel Properties Ltd.
Indofood Agri Resources Ltd.*
Jaya Holdings Ltd.*
Keppel Land Ltd.
K-REIT Asia REIT
M1 Ltd.
Mapletree Logistics Trust REIT
Olam International Ltd.
Parkway Holdings Ltd.
People’s Food Holdings Ltd.
SembCorp Marine Ltd.
SIA Engineering Co.
Singapore Airport Terminal Services Ltd.
Singapore Exchange Ltd.
24,825
66,850
78,284
81,081
99,486
37,366
23,219
7,356
13,931
7,974
10,817
10,044
14,707
61,611
7,302
32,590
30,597
66,022
24,416
35,156
28,433
13,413
48,445
67,993
See Notes to Financial Statements.
87
Schedule of Investments (Continued)
PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
2,000
45,000
19,000
7,000
65,000
22,000
15,000
6,000
23,000
Singapore Land Ltd.
Singapore Post Ltd.
SMRT Corp. Ltd.
STATS ChipPAC Ltd.*
Suntec REIT
UOL Group Ltd.
Venture Corp. Ltd.
Wheelock Properties Singapore Ltd.
Wing Tai Holdings Ltd.
Common Stocks and Other
Equity Interests (Continued)
$
11,018
41,028
30,095
5,138
78,346
77,342
105,003
9,040
31,099
1,280,027
43
10,120
7,800
1,527
1,675
165
5,960
3,650
2,540
2,360
7,540
3,800
1,200
2,810
2,760
4,430
3,510
5,130
4,600
3,030
428
77
1,500
379
1,820
6,660
10,370
3,550
3,800
640
831
3,340
1,040
3,610
662
6,170
5,190
South Korea—7.8%
Amorepacific Corp.
Asiana Airlines*
Busan Bank
Cheil Industries, Inc.
Cheil Worldwide, Inc.
Cj Cheiljedang Corp.
Daegu Bank Ltd.
Daekyo Co. Ltd.
Daesang Corp.*
Daewoo International Corp.
Daewoo Motor Sales*
Daewoo Securities Co. Ltd.
Daishin Securities Co. Ltd. (Preference)
Daishin Securities Co. Ltd.
Dongbu Corp.
Dongbu Hitek Co. Ltd.*
Dongbu Insurance Co. Ltd.
Dongbu Steel Co. Ltd.
Doosan Engineering & Construction Co. Ltd.
Doosan Infracore Co. Ltd.*
E1 Corp.
Glovis Co. Ltd.
Halla Climate Control Corp.
Hanil Cement Co. Ltd.
Hanjin Heavy Industries &
Construction Co. Ltd.
Hanjin Heavy Industries & Construction
Holdings Co. Ltd.
Hanjin Shipping Holdings Co. Ltd.*
Hankook Tire Co. Ltd.
Hansol Paper Co.
Hite Holdings Co. Ltd.
Hyundai Department Store Co. Ltd.
Hyundai Development Co.
Hyundai Hysco
Hyundai Marine & Fire Insurance Co. Ltd.
Hyundai Mipo Dockyard
Hyundai Securities Co.
Kangwon Land, Inc.
See Notes to Financial Statements.
88
Value
39,742
82,291
97,045
128,105
18,235
31,746
78,125
19,073
18,668
73,406
20,303
82,399
11,038
38,457
19,622
43,896
123,837
44,724
30,251
74,858
21,681
10,914
27,860
20,546
69,387
113,935
148,374
92,279
37,823
12,086
91,944
93,796
21,119
76,996
110,603
80,603
121,996
1,830
1,440
3,350
2,130
1,067
98
404
4,539
1,590
13,320
8,100
880
93
135
2,770
67
27
134
3,820
313
300
194
428
111
285
498
1,430
595
329
778
421
420
1,753
899
710
2,910
231
1,635
960
890
5,390
5,180
1,390
1,010
47
3,750
9,460
18,600
5,850
1,480
510
Keangnam Enterprises Ltd.*
$
Kolon Corp.
Kolon Engineering & Construction Co. Ltd.
Korea Investment Holdings Co. Ltd.
Korea Line Corp.*
Korea Plant Service & Engineering Co. Ltd.
Korea Zinc Co. Ltd.
Korean Reinsurance Co.
KP Chemical Corp.
Kumho Industrial Co. Ltd.*
Kumho Tire Co., Inc.*
Kyeryong Construction Industrial Co. Ltd.
LG Household & Health Care Ltd.
LG Innotek Co. Ltd.
LIG Insurance Co. Ltd.
Lotte Chilsung Beverage Co. Ltd.
Lotte Confectionery Co. Ltd.
LS Industrial Systems Co. Ltd.
Meritz Fire & Marine Insurance Co. Ltd.
Mirae Asset Securities Co. Ltd.
NHN Corp.*
Nong Shim Co. Ltd.
OCI Co. Ltd.
Orion Corp./Republic of South Korea
Ottogi Corp.
Pacific Corp.
S&T Dynamics Co. Ltd.
S1 Corp./Korea
Samchully Co. Ltd.
Samsung Electro-Mechanics Co. Ltd.
Samsung Engineering Co. Ltd.
Samsung Fine Chemicals Co. Ltd.
Samsung Securities Co. Ltd.
Samsung Techwin Co. Ltd.
Samyang Corp.
Seah Besteel Corp.
Sindoh Co. Ltd.
SK Chemicals Co. Ltd.
SK Gas Co. Ltd.
SKC Co. Ltd.
Ssangyong Cement Industrial Co. Ltd.*
Ssangyong Motor Co.*
STX Engine Co. Ltd.
STX Pan Ocean Co. Ltd.
Taekwang Industrial Co. Ltd.
Taeyoung Engineering & Construction
Taihan Electric Wire Co. Ltd.*
Tong Yang Major Corp.*
Tong Yang Securities, Inc.
Woongjin Coway Co. Ltd.
Woongjin Holdings Co. Ltd.*
18,540
47,733
14,141
67,104
38,498
5,408
101,784
51,027
23,668
51,019
51,109
14,820
30,993
15,657
57,234
45,907
29,513
10,753
26,208
16,384
53,188
35,688
125,899
37,189
36,978
78,114
31,199
32,784
35,962
85,388
67,158
24,933
100,327
83,888
40,446
75,902
11,168
91,104
35,405
30,332
31,471
48,336
50,338
10,726
53,756
22,562
59,942
38,017
59,007
53,729
5,212
Schedule of Investments (Continued)
PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
5,670
29
150
Woori Investment & Securities Co. Ltd.
Young Poong Corp.
Yuhan Corp.
Value
Common Stocks and Other
Equity Interests (Continued)
$
100,022
16,881
21,262
4,629,576
1,328
966
3,915
6,486
4,860
2,136
2,084
753
53
777
3,816
5,202
1,926
2,022
7,950
4,484
13,145
3,068
513
650
3,559
5,879
378
6,813
Spain—1.6%
Abengoa SA
Almirall SA
Antena 3 de Television SA
Banco de Valencia SA
Banco Pastor SA
Bolsas y Mercados Espanoles
Campofrio Food Group SA
Codere SA*
Construcciones y Auxiliar de Ferrocarriles SA
Corporacion Financiera Alba SA
Ebro Foods SA
Ferrovial SA
Grifols SA
Grupo Catalana Occidente SA
Grupo Empresarial Ence SA*
Indra Sistemas SA
NH Hoteles SA*
Obrascon Huarte Lain SA
Pescanova SA
Prosegur Cia de Seguridad SA
Sol Melia SA
SOS Corp. Alimentaria SA*
Tecnicas Reunidas SA
Tubos Reunidos SA*
750
1,274
4,225
758
5,699
543
18,646
9,311
4,246
1,512
4,313
1,124
3,988
3,677
10,719
1,111
2,184
5,341
9,068
Sweden—2.9%
AarhusKarlshamn AB
Axfood AB
Billerud AB
Cardo AB
Castellum AB
Clas Ohlson AB, Class B
Eniro AB*
Fabege AB
Getinge AB, Class B
Hakon Invest AB
Hexagon AB, Class B
Hoganas AB, Class B
Hufvudstaden AB, Class A
Husqvarna AB, Class A
Husqvarna AB, Class B
Intrum Justitia AB
JM AB
Kinnevik Investment AB, Class B
Kungsleden AB
36,731
9,130
39,940
36,510
23,710
58,189
21,319
8,373
29,827
41,038
83,775
59,230
31,146
42,099
28,840
87,657
68,787
100,253
16,720
38,902
35,369
12,911
23,492
18,181
952,129
17,618
44,521
33,871
29,168
74,333
9,293
11,958
97,072
89,610
27,603
87,422
39,396
44,402
25,699
75,092
15,245
47,233
109,852
71,682
3,565
6,191
5,130
1,017
11,453
4,938
1,278
31,774
10,178
2,554
3,457
15,250
1,238
1,179
Lindab International AB*
Lundin Petroleum AB*
Meda AB, Class A
Modern Times Group AB, Class B
Niscayah Group AB
Nobia AB*
Oresund Investment AB
PA Resources AB*
Peab AB
Saab AB, Class B
Swedish Match AB
Trelleborg AB, Class B
Wallenstam AB, Class B
Wihlborgs Fastigheter AB
613
1,913
147
2,108
1,060
76
51
584
380
733
418
626
89
333
544
1,225
124
454
77
119
91
253
113
877
141
2
16
4,060
1,226
2,469
30,641
1,114
97
969
Switzerland—4.0%
Actelion Ltd.*
AFG Arbonia-Forster Holding AG*
Allreal Holding AG
Aryzta AG
Bank Sarasin & Cie AG, Class B
Banque Cantonale Vaudoise
Barry Callebaut AG*
Basler Kantonalbank
Bb Biotech AG
Bobst Group AG*
Bucher Industries AG
Charles Voegele Holding AG*
Compagnie Financiere Tradition SA
Daetwyler Holding AG
Dufry Group*
EFG International AG
Emmi AG
Ems-Chemie Holding AG
Flughafen Zuerich AG
Forbo Holding AG
Galenica AG
Georg Fischer AG*
Kaba Holding AG, Class B
Kudelski SA
Kuoni Reisen Holding AG, Class B
Lindt & Spruengli AG
Lindt & Spruengli AG, PC
Logitech International SA*
Lonza Group AG
Nobel Biocare Holding AG
OC Oerlikon Corp. AG*
Panalpina Welttransport Holding AG*
Partners Group Holding AG
PSP Swiss Property AG*
$
50,513
58,357
42,006
72,673
19,644
38,298
21,301
24,927
80,836
39,769
96,264
143,181
31,390
33,059
1,703,288
30,610
45,612
20,283
93,558
38,800
36,976
41,147
84,438
23,588
32,793
64,219
33,098
9,773
24,717
63,222
15,071
20,677
70,627
28,400
63,947
43,973
108,557
37,916
22,427
60,500
57,448
43,486
77,031
107,392
40,845
160,448
139,208
17,753
74,485
See Notes to Financial Statements.
89
Schedule of Investments (Continued)
PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
258
2,224
29
467
47
71
944
445
216
173
1,155
Rieter Holding AG*
Schmolz + Bickenbach AG*
Sika AG
Sonova Holding AG
St. Galler Kantonalbank AG
Straumann Holding AG
Sulzer AG
Swiss Prime Site AG*
Valiant Holding
Valora Holding AG
Vontobel Holding AG
Common Stocks and Other
Equity Interests (Continued)
$
74,764
41,269
57,499
54,131
22,126
14,871
114,989
31,967
33,778
45,735
39,929
2,364,083
18,000
34,075
3,391
47,457
4,294
13,898
5,750
57,798
2,301
8,568
28,953
8,759
4,939
22,026
10,023
8,275
8,683
8,277
8,998
23,973
1,753
226,528
38,183
501
7,186
8,629
25,111
11,136
11,967
2,852
4,565
9,815
12,155
13,685
7,249
88,774
Taiwan—0.0%
Uni-President China Holdings Ltd.
United Kingdom—13.2%
Aberdeen Asset Management PLC
Admiral Group PLC
Aegis Group PLC
Aggreko PLC
ARM Holdings PLC
Ashmore Group PLC
Ashtead Group PLC
Autonomy Corp. PLC*
Babcock International Group PLC
BBA Aviation PLC
Bellway PLC
Berkeley Group Holdings PLC (The)*
Bodycote PLC
Bovis Homes Group PLC*
Britvic PLC
BSS Group PLC
Burberry Group PLC
Cairn Energy PLC*
Carillion PLC
Carpetright PLC
Cattles PLC*
Chaucer Holdings PLC
Chemring Group PLC
Chesnara PLC
Close Brothers Group PLC
Cobham PLC
Computacenter PLC
Cookson Group PLC*
Croda International PLC
CSR PLC*
Daily Mail & General Trust PLC, Class A
Dairy Crest Group PLC
Davis Service Group PLC (The)
De La Rue PLC
Debenhams PLC*
See Notes to Financial Statements.
90
Value
12,817
96,864
88,372
95,374
108,129
80,725
35,182
116,156
53,785
79,451
93,321
74,781
66,449
93,320
55,766
63,822
61,499
134,847
55,516
131,886
19,801
0
31,134
24,014
24,931
106,436
92,982
65,164
98,534
65,570
23,195
84,267
71,981
90,975
73,942
108,365
2,330
45,072
30,010
2,394
1,063
67,979
7,379
1,689
10,164
1,812
994
25,703
8,308
32,610
44,000
3,330
7,554
12,155
4,636
7,412
10,468
1,385
7,099
36,496
14,028
64,018
6,075
5,226
6,695
11,980
5,982
18,884
16,708
2,462
17,154
5,342
5,860
120,842
10,601
145,609
3,853
3,514
29,797
22,639
60,395
7,160
21,943
15,349
7,310
7,446
13,699
Derwent London PLC REIT
DS Smith PLC
Electrocomponents PLC
Enquest PLC*
Euromoney Institutional Investor PLC
F&C Asset Management PLC
Fenner PLC
Ferrexpo PLC
Filtrona PLC
Forth Ports PLC
Fresnillo PLC
Galiform PLC*
Galliford Try PLC
Game Group PLC
Genting Singapore PLC*
Go-Ahead Group PLC
Great Portland Estates PLC REIT
Greene King PLC
Greggs PLC
Halfords Group PLC
Halma PLC
Hargreaves Lansdown PLC
Headlam Group PLC
Henderson Group PLC
Hiscox Ltd.
HMV Group PLC
Homeserve PLC
Hunting PLC
IG Group Holdings PLC
IMI PLC
Inmarsat PLC
Intermediate Capital Group PLC
Interserve PLC
Intertek Group PLC
Invensys PLC
Jardine Lloyd Thompson Group PLC
JD Wetherspoon PLC
JJB Sports PLC*
John Wood Group PLC
Johnston Press PLC*
Keller Group PLC
Kier Group PLC
Laird PLC
Marshalls PLC
Marston’s PLC
Mcbride PLC
Meggitt PLC
Melrose PLC
Michael Page International PLC
Millennium & Copthorne Hotels PLC
Misys PLC*
$
56,624
121,135
117,024
4,945
11,030
72,819
30,780
8,760
40,447
38,241
19,865
31,951
40,513
36,887
73,772
72,619
41,727
81,271
33,969
50,186
54,677
10,374
36,319
76,672
79,507
46,314
44,028
53,850
56,570
151,219
62,357
97,459
53,693
73,018
79,041
50,561
38,413
18,625
73,813
29,682
38,963
74,385
70,983
39,000
97,235
20,525
115,806
69,129
55,070
64,880
61,632
Schedule of Investments (Continued)
PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio
October 31, 2010
Number
of Shares
Value
Common Stocks and Other
Equity Interests (Continued)
13,154
13,030
4,327
2,490
8,963
53,871
15,690
21,026
2,541
2,226
16,062
190,999
2,018
6,526
4,741
34,548
65,213
19,889
8,301
1,710
1,375
6,291
10,557
5,383
18,802
3,467
47,842
15,068
4,006
58,016
1,877
10,829
2,853
4,317
5,940
29,727
42,637
9,566
4,977
1,259
5,720
6,247
17,480
4,881
7,561
Mitie Group PLC
Morgan Crucible Co. PLC
Morgan Sindall Group PLC
Mothercare PLC
N Brown Group PLC
Northern Foods PLC
Northumbrian Water Group PLC
Paragon Group of Cos. PLC
Petrofac Ltd.
Petropavlovsk PLC
Premier Farnell PLC
Premier Foods PLC*
Premier Oil PLC*
Provident Financial PLC
PZ Cussons PLC
Qinetiq Group PLC
Rank Group PLC
Redrow PLC*
Restaurant Group PLC
Robert Wiseman Dairies PLC
Rotork PLC
Savills PLC
Serco Group PLC
Shaftesbury PLC REIT
Shanks Group PLC
Shire PLC
SIG PLC*
Smiths News PLC
Spectris PLC
Speedy Hire PLC
Spirax-Sarco Engineering PLC
Sports Direct International PLC*
SSL International PLC
St. James’s Place PLC
St. Modwen Properties PLC
Stagecoach Group PLC
Trinity Mirror PLC*
Tullett Prebon PLC
Tullow Oil PLC
Ultra Electronics Holdings PLC
Weir Group PLC (The)
WH Smith PLC
Wincanton PLC
WS Atkins PLC
Yule Catto & Co. PLC
Number
of Shares
Value
Preferred Stocks—0.5%
$
42,734
47,706
46,593
20,920
43,090
40,696
88,902
51,299
59,435
34,468
69,926
53,745
54,235
81,383
30,547
59,323
133,144
35,137
37,453
8,924
36,822
33,151
103,634
38,384
33,427
81,538
86,816
27,825
72,310
22,957
54,287
24,273
52,912
19,084
15,385
99,333
72,429
60,565
94,293
37,460
142,482
48,380
66,514
58,762
31,188
896
194
1,139
3,088
1,083
Germany—0.5%
Draegerwerk AG & Co. KGAA
Fuchs Petrolub AG
Hugo Boss AG
Jungheinrich AG
Sixt AG
5,495
Hong Kong—0.0%
Fubon Bank Hong Kong Ltd.*
$
75,032
26,010
75,363
116,807
31,385
324,597
Total Preferred Stocks
(Cost $188,203)
0
324,597
Rights—0.0%
24,553
50,000
Austria—0.0%
Immofinanz AG*
0
Bermuda—0.0%
Citic Resources Holdings Ltd.,
expiring 12/31/10*
0
Total Rights
(Cost $0)
0
Money Market Fund—0.0%
15,381
Goldman Sachs Financial Square Prime
Obligations Institutional Share Class
(Cost $15,381)
Total Investments
(Cost $53,631,704)—99.8%
Other assets less liabilities—0.2%
Net Assets—100.0%
15,381
59,642,739
123,602
$59,766,341
Investment Abbreviations:
CVA—Dutch Certificate
PC—Participation Certificate
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
* Non-income producing security.
7,898,772
Total Common Stocks and Other
Equity Interests
(Cost $53,428,120)
59,302,761
See Notes to Financial Statements.
91
Schedule of Investments
PowerShares FTSE RAFI Emerging Markets Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests—99.9%
438,349
83,658
306,684
119,985
28,891
129,989
91,009
110,410
23,948
1,647
10,240
16,164
26,452
145,521
37,021
42,308
74,082
4,828
7,547
36,999
157,867
9,055
14,113
85,617
443,428
130,827
27,982
12,604
144,270
305,662
441,147
6,975
27,175
89,500
3,343
16,435
28,283
67,423
37,154
13,324
27,684
72,332
105,623
138,427
16,452
Common Stocks and Other
Equity Interests (Continued)
Brazil—14.4%
Banco Bradesco SA
$ 9,001,314
Banco do Brasil SA
1,623,211
Banco Santander Brasil SA
4,340,013
BM&FBOVESPA SA
1,002,792
Bradespar SA
732,215
Brasil Telecom SA*
956,923
Braskem SA, Class A*
927,979
Centrais Eletricas Brasileiras SA
1,516,254
Cia Brasileira de Distribuicao Grupo
Pao de Acucar, Class A
942,168
Cia de Bebidas das Americas
186,634
Cia de Bebidas das Americas (Preference)
1,406,374
Cia de Saneamento Basico do
Estado de Sao Paulo
366,695
Cia Energetica de Minas Gerais
346,270
Cia Energetica de Minas Gerais (Preference)
2,555,934
Cia Energetica de Sao Paulo, Class B
580,414
Cia Paranaense de Energia
982,736
Cia Siderurgica Nacional SA
1,229,133
CPFL Energia SA
113,853
EDP - Energias do Brasil SA
164,271
Eletropaulo Metropolitana Eletricidade
de Sao Paulo SA, Class B
643,309
Empresa Brasileira de Aeronautica SA
1,121,208
Fibria Celulose SA*
161,924
Gerdau SA
139,745
Gerdau SA (Preference)
1,102,098
Itau Unibanco Holding SA
10,741,691
Itausa - Investimentos Itau SA
1,026,321
JBS SA
107,861
Light SA
159,124
Metalurgica Gerdau SA
2,213,390
Petroleo Brasileiro SA
5,132,650
Petroleo Brasileiro SA (Preference)
6,731,675
Souza Cruz SA
365,677
Tele Norte Leste Participacoes SA
545,214
Tele Norte Leste Participacoes SA (Preference)
1,373,109
Telecomunicacoes de Sao Paulo SA
80,272
Telemar Norte Leste SA, Class A*
466,901
Tim Participacoes SA*
114,022
Tim Participacoes SA (Preference)
216,974
Tractebel Energia SA
560,600
Ultrapar Participacoes SA
811,228
Usinas Siderurgicas de Minas Gerais SA
403,026
Usinas Siderurgicas de Minas Gerais SA,
Class A
908,919
Vale SA
3,333,694
Vale SA, Class A
3,895,847
Vivo Participacoes SA
472,232
71,803,894
See Notes to Financial Statements.
92
Value
2,800,131
3,558,108
84,013
353,501
14,084
36,622
2,511,391
57,361
Chile—0.9%
Banco de Chile
$
Banco Santander Chile
Centros Comerciales Sudamericanos SA
Empresa Nacional de Electricidad SA
Empresa Nacional de Telecomunicaciones SA
Empresas Copec SA
Enersis SA
S.A.C.I. Falabella
401,180
316,729
654,266
629,179
223,735
689,094
1,144,098
573,598
4,631,879
682,000
1,784,000
928,000
166,000
23,998,000
1,465,000
2,433,000
893,000
522,000
6,692,000
1,581,500
1,154,000
966,700
1,665,100
322,000
149,600
20,620,000
1,285,500
3,134,000
1,418,500
2,259,000
516,000
1,670,000
3,392,000
726,000
2,562,000
156,000
130,400
2,220,000
China—30.5%
Air China Ltd., H-Shares*
Aluminum Corp. of China Ltd., H-Shares*
Angang Steel Co. Ltd., H-Shares
Anhui Conch Cement Co. Ltd., H-Shares
Bank of China Ltd., H-Shares
Bank of Communications Co. Ltd.,
H-Shares
China CITIC Bank Corp. Ltd., H-Shares
China Coal Energy Co., H-Shares
China Communications Construction
Co. Ltd., H-Shares
China Construction Bank Corp., H-Shares
China COSCO Holdings Co. Ltd.,
H-Shares*
China Life Insurance Co. Ltd., H-Shares
China Merchants Bank Co. Ltd., H-Shares
China Minsheng Banking Corp. Ltd.,
H-Shares
China Oilfield Services Ltd., H-Shares
China Pacific Insurance (Group) Co. Ltd.,
H-Shares
China Petroleum & Chemical Corp.
(Sinopec), H-Shares
China Railway Construction Corp. Ltd.,
H-Shares
China Railway Group Ltd., H-Shares
China Shenhua Energy Co. Ltd., H-Shares
China Shipping Container Lines Co. Ltd.,
H-Shares*
China Shipping Development Co. Ltd.,
H-Shares
China Southern Airlines Co. Ltd., H-Shares*
China Telecom Corp. Ltd., H-Shares
CSR Corp. Ltd., H-Shares
Datang International Power Generation
Co. Ltd., H-Shares
Dongfeng Motor Group Co. Ltd., H-Shares
Guangzhou R&F Properties Co. Ltd.,
H-Shares
Huadian Power International Co., H-Shares
916,688
1,693,722
1,458,024
695,922
14,363,572
1,600,628
1,766,932
1,543,568
498,951
6,379,253
1,844,196
5,053,765
2,743,366
1,548,620
522,524
620,415
19,443,546
1,606,813
2,526,669
6,312,739
917,902
750,807
1,135,263
1,754,566
738,896
1,031,106
338,067
186,038
509,733
Schedule of Investments (Continued)
PowerShares FTSE RAFI Emerging Markets Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
Common Stocks and Other
Equity Interests (Continued)
2,968,000 Huaneng Power International, Inc.,
H-Shares
$ 1,696,044
20,667,000 Industrial & Commercial Bank of
China Ltd., H-Shares
16,635,331
592,000 Jiangsu Expressway Co. Ltd., H-Shares
717,826
363,000 Jiangxi Copper Co. Ltd., H-Shares
1,011,416
1,566,000 Maanshan Iron & Steel Co. Ltd., H-Shares
896,900
1,505,000 Metallurgical Corp. of China Ltd.,
H-Shares*
728,010
34,402,000 PetroChina Co. Ltd., H-Shares
41,980,176
258,000 PICC Property & Casualty Co. Ltd.,
H-Shares*
380,728
226,500 Ping An Insurance (Group) Co. of
China Ltd., H-Shares
2,438,170
1,608,000 Shanghai Electric Group Co. Ltd., H-Shares
1,076,522
1,788,000 Sinopec Shanghai Petrochemical Co. Ltd.,
H-Shares
802,631
530,000 Yanzhou Coal Mining Co. Ltd., H-Shares
1,524,580
210,000 Zhejiang Expressway Co. Ltd. H-Shares
211,563
686,000 Zijin Mining Group Co. Ltd., H-Shares
646,861
122,100 ZTE Corp. H-Shares
453,605
151,702,654
24,760
1,419
29,706
25,299
Czech Republic—0.5%
CEZ AS
Komercni Banka AS
Telefonica O2 Czech Republic AS
Unipetrol AS*
1,094,698
321,289
652,498
285,481
2,353,966
38,500
168,000
70,000
586,000
178,000
138,000
104,000
1,444,000
232,000
1,617,000
42,000
Hong Kong—2.8%
Beijing Enterprises Holdings Ltd.
China Foods Ltd.
China Merchants Holdings
International Co. Ltd.
China Mobile Ltd.
China Overseas Land & Investment Ltd.
China Resources Enterprise Ltd.
China Resources Power Holdings Co. Ltd.
China Unicom (Hong Kong) Ltd.
Citic Pacific Ltd.
CNOOC Ltd.
Shanghai Industrial Holdings Ltd.
263,461
139,561
245,153
5,967,868
374,263
582,988
200,157
2,052,666
617,984
3,349,847
193,414
13,987,362
Hungary—0.7%
121,359 Magyar Telekom Telecommunications PLC
15,831 MOL Hungarian Oil and Gas PLC*
50,790 OTP Bank PLC*
349,844
1,681,977
1,508,342
127,538
257,465
116,751
80,293
2,433,374
8,349,704
Infosys Technologies Ltd. ADR
Sterlite Industries (India) Ltd. ADR
Tata Motors Ltd. ADR
Wipro Ltd. ADR
$
8,601,163
3,982,984
3,283,038
1,146,584
27,796,847
232,039
816,000
187,000
413,000
842,000
627,000
2,068,000
45,500
401,000
1,216,000
75,500
Indonesia—1.2%
Astra International Tbk PT
Bank Central Asia Tbk PT
Bank Danamon Indonesia Tbk PT
Bank Mandiri Tbk PT
Bank Negara Indonesia (Persero) Tbk PT
Bank Rakyat Indonesia (Persero) Tbk PT
Bumi Resources Tbk PT
Gudang Garam Tbk PT
Indosat Tbk PT
Telekomunikasi Indonesia Tbk PT
Unilever Indonesia Tbk PT
1,479,857
639,105
140,185
323,468
367,418
799,754
514,831
242,836
269,203
1,238,109
147,410
6,162,176
433,800
24,900
624,000
43,700
318,600
310,300
344,000
835,400
69,300
207,900
53,700
457,200
449,400
448,700
220,400
408,800
Malaysia—2.6%
Axiata Group Bhd*
British American Tobacco Malaysia Bhd
CIMB Group Holdings Bhd
DiGi.Com Bhd
Genting Bhd
Genting Malaysia Bhd
IOI Corp. Bhd
Malayan Banking Bhd
Petronas Gas Bhd
PLUS Expressways Bhd
PPB Group Bhd
Public Bank Bhd
Sime Darby Bhd
Telekom Malaysia Bhd
Tenaga Nasional Bhd
YTL Power International Bhd
625,988
372,280
1,662,529
355,892
1,068,997
349,044
643,445
2,416,391
250,340
293,993
331,364
1,874,939
1,275,334
490,304
623,339
307,438
12,941,617
54,700
3,893,500
4,343,502
147,400
387,000
31,200
105,100
2,710
186,100
3,540,163
India—5.6%
14,069 HDFC Bank Ltd. ADR
158,800 ICICI Bank Ltd. ADR
Value
47,800
802,387
316,700
Mexico—6.4%
Alfa SAB de CV, Class A
America Movil SAB de CV, Series L
Cemex SAB de CV, Series CPO*
Coca-Cola Femsa SAB de CV, Series L
Fomento Economico Mexicano SAB de CV
Grupo Bimbo SAB de CV, Series A
Grupo Carso SAB de CV, Series A1
Grupo Elektra SA de CV
Grupo Financiero Banorte SAB de CV,
Class O
Grupo Financiero Inbursa SA, Class O
Grupo Mexico SAB de CV, Series B
Grupo Modelo SAB de CV, Series C
456,737
11,168,060
3,819,678
1,176,768
2,129,795
241,220
606,172
99,522
796,863
206,884
2,644,935
1,776,279
See Notes to Financial Statements.
93
Schedule of Investments (Continued)
PowerShares FTSE RAFI Emerging Markets Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
343,700 Grupo Televisa SA, Series CPO
$
11,980 Industrias Penoles SAB de CV
75,900 Kimberly-Clark de Mexico SAB de CV,
Class A
50,800 Organizacion Soriana SAB de CV, Class B
3,743,000 Telefonos de Mexico SAB de CV, Class L
381,300 Wal-Mart de Mexico SAB de CV, Series V
Common Stocks and Other
Equity Interests (Continued)
1,543,843
339,807
476,453
154,854
2,903,279
1,044,577
31,585,726
Philippines—0.2%
16,290 Philippine Long Distance Telephone
Co. ADR
Poland—1.7%
Bank Handlowy w Warszawie SA
Bank Pekao SA
Bank Zachodni WBK SA
KGHM Polska Miedz SA
Polska Grupa Energetyczna SA
Polski Koncern Naftowy Orlen*
Polskie Gornictwo Naftowe i
Gazownictwo SA
62,600 Powszechna Kasa Oszczednosci Bank
Polski SA
234,033 Telekomunikacja Polska SA
7,155
11,595
2,469
41,377
31,507
162,072
237,598
Value
1,012,098
225,603
756,792
182,514
1,855,503
241,737
2,283,152
307,991
986,915
1,488,149
771,392
94,156
91,270
53,476
58,736
4,150
40,035
48,542
176,722
19,005
45,791
47,302
74,334
125,108
458,545
162,167
87,584
55,135
239,450
312,077
336,469
17,023
4,340
58,262
FirstRand Ltd.
Gold Fields Ltd.
Impala Platinum Holdings Ltd.
Imperial Holdings Ltd.
Investec Ltd.
Kumba Iron Ore Ltd.
Massmart Holdings Ltd.
Mondi Ltd.
MTN Group Ltd.
Naspers Ltd., Class N
Nedbank Group Ltd.
Pick n Pay Stores Ltd.
Remgro Ltd.
RMB Holdings Ltd.
Sanlam Ltd.
Sappi Ltd.*
Sasol Ltd.
Shoprite Holdings Ltd.
Standard Bank Group Ltd.
Steinhoff International Holdings Ltd.*
Telkom SA Ltd.
Tiger Brands Ltd.*
Trans Hex Group Ltd.*
Vodacom Group Ltd.
Russia—8.7%
Gazprom OAO ADR
LUKOIL OAO ADR
Magnitogorsk Iron & Steel Works GDR
MMC Norilsk Nickel JSC ADR
Mobile TeleSystems OJSC ADR
Novolipetsk Steel OJSC GDR
Rosneft Oil Co. GDR*
Severstal GDR*
Sistema JSFC GDR
Surgutneftegas OJSC ADR
Tatneft ADR
VTB Bank OJSC GDR
58,367
148,365
13,592
17,636
35,879
153,172
66,912
28,810
7,304
South Africa—7.8%
ABSA Group Ltd.
African Bank Investments Ltd.
Anglo Platinum Ltd.*
AngloGold Ashanti Ltd.
ArcelorMittal South Africa Ltd.
Barloworld Ltd.
Bidvest Group Ltd.
Evraz Highveld Steel and Vanadium Ltd.*
Exxaro Resources Ltd.
13,416,534
10,716,330
238,387
1,999,746
1,223,615
912,401
2,050,686
844,104
253,614
8,748,480
2,069,112
651,560
43,124,569
See Notes to Financial Statements.
94
1,140,904
766,451
1,353,915
827,646
414,898
1,155,882
1,437,198
364,419
138,583
2,285,220
1,483,586
2,597,575
878,193
486,719
237,414
819,800
406,084
3,200,634
1,004,796
862,368
313,101
1,161,213
649,902
1,730,819
809,314
3,970,773
784,739
3,555,413
986,869
1,751,251
459,571
1,872
563,606
38,600,728
8,328,356
614,029
191,877
19,071
107,225
56,518
26,655
294,216
62,619
9,830
892,702
65,582
98,423
$
416,331
861,539
298,200
125,900
2,065,000
540,450
1,034,000
751,000
1,845,750
2,635,175
2,046,456
1,494,768
1,111,000
880,054
260,000
485,000
701,760
424,000
1,199,525
758,000
321,000
1,670,000
729,867
1,165,480
Taiwan—12.2%
Acer, Inc.
Advanced Semiconductor Engineering, Inc.
Asia Cement Corp.
Asustek Computer, Inc.
AU Optronics Corp.*
Cathay Financial Holding Co. Ltd.
Chang Hwa Commercial Bank
Chimei Innolux Corp.*
China Development Financial Holding Corp.
China Steel Corp.
Chinatrust Financial Holding Co. Ltd.
Chunghwa Picture Tubes Ltd.*
Chunghwa Telecom Co. Ltd.
Compal Electronics, Inc.
Delta Electronics, Inc.
Evergreen Marine Corp. Taiwan Ltd.*
Far Eastern New Century Corp.
Far EasTone Telecommunications Co. Ltd.
First Financial Holding Co. Ltd.
Formosa Chemicals & Fibre Corp.
Formosa Petrochemical Corp.
Formosa Plastics Corp.
Fubon Financial Holding Co. Ltd.
Hon Hai Precision Industry Co. Ltd.
1,208,688
742,767
307,242
1,021,705
2,060,178
826,873
682,096
1,007,988
547,911
2,672,050
1,276,466
225,522
2,597,770
1,120,850
1,074,082
403,883
1,010,650
609,937
791,287
2,173,388
873,220
4,788,335
893,817
4,415,057
Schedule of Investments (Continued)
PowerShares FTSE RAFI Emerging Markets Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
101,200
1,126,765
1,184,250
707,009
54,091
2,024,000
1,126,000
386,106
870,740
404,000
1,091,000
718,000
1,592,000
2,957,320
353,000
774,100
276,000
3,533,000
3,095,000
763,100
2,100,000
379,096
760,000
HTC Corp.
Hua Nan Financial Holdings Co. Ltd.
Inventec Co. Ltd.
Lite-On Technology Corp.
MediaTek, Inc.
Mega Financial Holding Co. Ltd.
Nan Ya Plastics Corp.
Pegatron Corp.*
Pou Chen Corp.
Quanta Computer, Inc.
Shin Kong Financial Holding Co. Ltd.*
Siliconware Precision Industries Co.
SinoPac Financial Holdings Co. Ltd.
Taishin Financial Holding Co. Ltd.*
Taiwan Cement Corp.
Taiwan Cooperative Bank
Taiwan Mobile Co. Ltd.
Taiwan Semiconductor
Manufacturing Co. Ltd.
Tatung Co. Ltd.*
Uni-President Enterprises Corp.
United Microelectronics Corp.
Wistron Corp.
Yang Ming Marine Transport Corp.*
Common Stocks and Other
Equity Interests (Continued)
$
2,283,663
743,290
622,648
933,936
680,079
1,404,569
2,507,820
522,642
824,632
741,466
400,821
785,494
600,480
1,294,126
375,808
551,096
613,804
7,245,641
729,745
991,832
997,828
778,706
578,287
60,540,175
187,300
146,500
2,268,000
149,200
626,800
129,400
145,200
204,400
29,500
157,700
241,400
267,700
152,600
Thailand—1.6%
Advanced Info. Service PCL
Bangkok Bank PCL
IRPC PCL
Kasikornbank PCL
Krung Thai Bank PCL
PTT Chemical PCL
PTT Exploration & Production PCL
PTT PCL
Siam Cement PCL
Siam Commercial Bank PCL
Thai Airways International PCL
Thai Oil PCL
Total Access Communication PCL
Value
562,275
754,978
320,758
627,058
353,333
608,586
828,192
2,065,817
323,732
539,168
374,420
473,252
213,783
152,039
54,600
47,279
132,262
34,899
222,632
137,406
99,422
Turk Hava Yollari AO*
Turk Telekomunikasyon AS
Turkcell Iletisim Hizmet AS
Turkiye Garanti Bankasi AS
Turkiye Halk Bankasi AS
Turkiye Is Bankasi, Class C
Turkiye Vakiflar Bankasi TAO, Class D
Yapi ve Kredi Bankasi AS*
$
631,682
255,443
343,343
812,727
353,352
1,002,707
445,195
381,832
10,452,458
Total Common Stocks and Other
Equity Interests
(Cost $428,585,040)
496,610,020
Rights—0.0%
Taiwan—0.0%
61,788 Shin Kong Financial Holding Co. Ltd.,
expiring 11/25/10*
(Cost $0)
2,522
Money Market Fund—0.1%
710,963 Goldman Sachs Financial Square Prime
Obligations Institutional Share Class
(Cost $710,963)
Total Investments
(Cost $429,296,003)—100.0%
Liabilities in excess of other assets—(0.0%)
Net Assets—100.0%
710,963
497,323,505
(81,455)
$497,242,050
Investment Abbreviations:
ADR—American Depositary Receipt
GDR—Global Depositary Receipt
Notes to Schedule of Investments:
* Non-income producing security.
8,045,352
201,710
46,843
555,510
43,328
153,627
23,553
87,631
359,410
41,149
Turkey—2.1%
Akbank TAS
Arcelik AS
Dogan Sirketler Grubu Holdings*
Enka Insaat ve Sanayi AS
Eregli Demir ve Celik Fabrikalari TAS*
Ford Otomotiv Sanayi AS
Haci Omer Sabanci Holding AS
Koc Holding AS
Tupras Turkiye Petrol Rafine AS
1,267,642
260,039
403,415
198,169
579,279
208,870
483,405
1,719,125
1,106,233
See Notes to Financial Statements.
95
Schedule of Investments
PowerShares FTSE RAFI Europe Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests—99.1%
353
883
1,998
312
69
100
740
51
42
343
260
Austria—0.7%
Erste Group Bank AG
Immoeast AG*
Immofinanz AG*
OMV AG
Raiffeisen International Bank Holding AG
Strabag SE
Telekom Austria AG
Verbund AG
Vienna Insurance Group AG Wiener
Versicherung Gruppe
Voestalpine AG
Wienerberger AG*
Value
Common Stocks and Other
Equity Interests (Continued)
$
15,911
0
7,859
11,641
3,884
2,578
11,314
2,036
2,256
13,580
4,373
100
260
361
5,129
290
322
256
771
78
2,053
1,519
134
169
Kone Oyj, Class B
Metso Corp. Oyj
Neste Oil Oyj
Nokia Oyj
Outokumpu Oyj
Pohjola Bank PLC
Rautaruukki Oyj
Sampo Oyj, Class A
Sanoma Oyj
Stora Enso Oyj, Class R
UPM-Kymmene Oyj
Wartsila Oyj
YIT Oyj
75,432
15,542
400
1
269
43
35
200
3,191
5
90
32
402
28
70
115
204
Belgium—1.6%
Ageas
Anheuser-Busch InBev NV
Banque Nationale de Belgique
Belgacom SA
Colruyt SA
Cie Nationale a Portefeuille
Delhaize Group SA
Dexia SA*
D’ieteren SA
Groupe Bruxelles Lambert SA
KBC Ancora*
KBC Groep NV*
Mobistar SA
Solvay SA
UCB SA
Umicore
47,718
25,038
5,027
10,540
2,419
1,863
13,952
14,188
2,721
7,960
718
17,463
1,851
7,403
4,455
9,589
172,905
166
1
3
139
57
1,358
262
313
24
152
Bermuda—0.0%
Frontline Ltd.
Denmark—1.2%
A P Moller - Maersk A/S, Class A
A P Moller - Maersk A/S, Class B
Carlsberg A/S, Class B
Danisco A/S
Danske Bank A/S*
Novo Nordisk A/S, Class B
Torm A/S*
Tryg AS
Vestas Wind Systems A/S*
4,710
8,394
26,003
15,183
4,909
36,071
27,544
2,354
1,208
4,845
126,511
248
536
205
Finland—1.9%
Elisa Oyj
Fortum Oyj
Kesko Oyj, Class B
See Notes to Financial Statements.
96
5,298
15,175
10,149
$
5,351
12,312
5,981
55,320
5,204
4,070
5,077
21,572
1,755
20,374
25,230
9,387
4,080
206,335
254
22
749
210
4,229
206
144
91
5,432
1,388
477
187
1,333
104
98
26
414
1,040
251
233
2,464
418
254
162
298
11
98
15
57
51
110
50
4,556
1,773
27
France—16.2%
Accor SA
Aeroports de Paris
Air France-KLM*
Air Liquide SA
Alcatel-Lucent*
Alstom SA
Arkema SA
Atos Origin SA*
AXA SA
BNP Paribas
Bouygues SA
Cap Gemini
Carrefour SA
Casino Guichard-Perrachon SA
Christian Dior SA
Ciments Francais SA
CNP Assurances
Cie de Saint-Gobain
Cie Generale de Geophysique-Veritas*
Cie Generale des Etablissements Michelin,
Class B
Credit Agricole SA
DANONE SA
Edenred*
Eiffage SA
Electricite de France SA
Eramet
Essilor International SA
Esso SA Francaise
Euler Hermes SA*
Eurazeo
Faurecia*
Fonciere des Regions REIT
France Telecom SA
GDF Suez
Gecina SA REIT
10,402
1,866
13,653
27,127
14,824
10,382
9,293
4,202
98,753
101,379
20,993
9,527
71,849
9,757
14,159
2,386
8,252
48,511
5,843
18,508
40,326
26,420
5,313
7,993
13,637
3,808
6,535
2,012
5,360
3,870
2,960
5,699
109,329
70,676
3,272
Schedule of Investments (Continued)
PowerShares FTSE RAFI Europe Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
27
15
46
61
58
367
319
154
176
247
109
1,466
72
60
196
206
163
1,229
114
129
790
157
16
205
1,130
280
260
179
1,526
277
146
945
357
907
100
122
4,205
86
247
115
970
644
2,298
63
Hermes International
ICADE REIT
Imerys SA
JC Decaux SA*
Klepierre REIT
Lafarge SA
Lagardere SCA
Legrand SA
L’Oreal SA
LVMH Moet Hennessy Louis Vuitton SA
Metropole Television SA
Natixis*
Nexans SA
Nexity
PagesJaunes Groupe
Pernod-Ricard SA
PPR
PSA Peugeot Citroen SA*
Publicis Groupe SA
Rallye SA
Renault SA*
Rexel SA*
SA des Ciments Vicat
Safran SA
Sanofi-Aventis SA
Schneider Electric SA
SCOR SE
Sequana
Societe Generale
Societe Television Francaise 1
Sodexo
STMicroelectronics NV
Suez Environnement Co.
Technicolor*
Technip SA
Thales SA
Total SA
Unibail-Rodamco SE REIT*
Valeo SA*
Vallourec SA
Veolia Environnement
Vinci SA
Vivendi SA
Wendel
191
1,017
100
7
1,403
Germany—13.4%
Adidas AG
Allianz SE
Aurubis AG
Axel Springer AG
BASF SE
Value
Common Stocks and Other
Equity Interests (Continued)
$
5,721
1,647
2,742
1,784
2,253
20,944
13,587
5,938
20,636
38,656
2,659
8,980
5,122
2,659
2,152
18,241
26,688
48,854
5,671
5,025
43,839
2,959
1,251
6,491
78,812
39,696
6,385
2,587
91,256
4,514
9,489
8,254
6,969
5,711
8,394
4,967
228,200
17,894
13,258
11,919
28,454
34,354
65,461
4,876
716
802
59
51
59
230
2,774
3,125
1,499
140
778
2,224
152
8,420
3,251
36
136
35
203
16
92
308
98
103
1,327
98
63
146
113
225
182
401
403
18
616
89
399
987
82
944
1,189
88
17
Bayer AG
Bayerische Motoren Werke (BMW) AG
BayWa AG
Beiersdorf AG
Bilfinger Berger AG
Celesio AG
Commerzbank AG*
Daimler AG*
Deutsche Bank AG
Deutsche Boerse AG
Deutsche Lufthansa AG*
Deutsche Post AG
Deutsche Postbank AG*
Deutsche Telekom AG
E.ON AG
Fraport AG
Fresenius Medical Care AG & Co. KGaA
Fresenius SE
GEA Group AG
Generali Deutschland Holding AG
Hannover Rueckversicherung AG
HeidelbergCement AG
Henkel AG & Co. KGaA
Hochtief AG
Infineon Technologies AG*
K+S AG
Kloeckner & Co. SE*
Lanxess AG
Linde AG
MAN SE
Merck KGaA
Metro AG
Muenchener RueckversicherungsGesellschaft AG
Rheinmetall AG
RWE AG
Salzgitter AG
SAP AG
Siemens AG
Suedzucker AG
ThyssenKrupp AG
TUI AG*
Volkswagen AG
Wacker Chemie AG
1,774,825
12,443
127,274
5,137
1,039
101,947
$
53,361
57,418
2,464
3,318
4,291
5,476
24,965
206,009
86,297
9,838
16,626
41,421
5,286
121,828
101,668
2,281
8,652
3,085
5,302
2,083
4,648
16,090
4,861
8,912
10,432
6,812
1,392
10,146
16,248
24,705
15,140
28,068
62,931
1,295
44,093
6,382
20,780
112,600
1,937
34,691
13,872
11,541
3,503
1,470,588
992
106
992
259
836
Greece—0.5%
Alpha Bank AE*
Coca-Cola Hellenic Bottling Co. SA
EFG Eurobank Ergasias SA*
Hellenic Petroleum SA
Hellenic Telecommunications Organization SA
6,563
2,740
6,136
2,074
6,681
See Notes to Financial Statements.
97
Schedule of Investments (Continued)
PowerShares FTSE RAFI Europe Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
1,093
110
1,474
453
742
275
Marfin Investment Group SA*
Motor Oil (Hellas) Corinth Refineries SA
National Bank of Greece SA*
OPAP SA
Piraeus Bank SA*
Public Power Corp. SA
Common Stocks and Other
Equity Interests (Continued)
$
1,231
1,208
16,123
8,531
3,857
4,606
59,750
10,652
468
967
22,645
2,056
85
515
353
Ireland—0.5%
Allied Irish Banks PLC*
Anglo Irish Bank Corp. Ltd.*
CRH PLC
Governor & Co. of the Bank of
Ireland (The)*
Irish Life & Permanent Group
Holdings PLC*
Kerry Group PLC, Class A
Ryanair Holdings PLC
Smurfit Kappa Group PLC*
4,989
0
16,538
16,776
4,344
3,125
2,956
3,775
100
1,465
832
238
852
1,908
754
754
2,183
188
1,020
1,202
50,890
22,595
1,311
1,272
41,936
6,826
Italy—7.2%
A2A SpA
ACEA SpA*
Assicurazioni Generali SpA
Atlantia SpA
Autogrill SpA*
Banca Carige SpA
Banca Monte dei Paschi di Siena SpA*
Banca Popolare di Milano Scarl
Banco Popolare Societa Cooperativa Scarl
Benetton Group SpA
Buzzi Unicem SpA
CIR-Compagnie Industriali Riunite SpA*
Credito Emiliano SpA
Edison SpA
Enel SpA
Eni SpA
ERG SpA
EXOR SpA
Fiat SpA
Finmeccanica SpA
Fondiaria-Sai SpA
Fondiaria-Sai SpA RSP
Hera SpA
Intesa Sanpaolo SpA
Italcementi SpA
Italcementi SpA RSP
Italmobiliare SpA
Italmobiliare SpA RSP
Lottomatica SpA
See Notes to Financial Statements.
98
4,261
1,739
56,960
9,129
2,210
2,288
11,299
4,858
10,018
1,014
2,786
2,077
1,271
1,190
86,677
139,538
3,088
3,081
48,760
12,101
4,982
1,475
1,861
72,961
2,355
1,900
1,377
2,486
999
Luxottica Group SpA
Mediaset SpA
Mediobanca SpA*
Mediolanum SpA
Milano Assicurazioni SpA
Parmalat SpA
Pirelli & C. SpA
Prelios SpA*
Premafin Finanziaria SpA*
Saipem SpA
Saras SpA*
Snam Rete Gas SpA
Telecom Italia SpA
Telecom Italia SpA RSP
Terna-Rete Elettrica Nationale SpA
UBI Banca-Unione di Banche Italiane ScpA
UniCredit SpA
Unipol Gruppo Finanziario SpA
$
2,951
10,792
8,609
1,117
1,839
5,240
6,429
442
3,262
8,343
2,253
6,503
77,947
27,636
6,040
13,410
109,171
5,356
792,081
52,503
2,618
146
2,602
400
166
946
8,041
1,041
1,866
125
243
915
179
967
15,201
6,201
224
120
2,885
868
420
198
881
20,769
280
394
39
97
60
Value
1,692
16
260
343
Luxembourg—0.6%
ArcelorMittal
RTL Group
SES SA FDR
Tenaris SA
54,313
1,442
6,655
7,103
69,513
6,401
380
139
113
647
163
194
27,590
1,813
866
292
2,411
1,215
57
140
313
193
561
504
2,367
328
Netherlands—5.8%
Aegon NV*
Akzo Nobel NV
ASML Holding NV
Corio NV REIT
European Aeronautic Defence and
Space Co. NV*
Heineken Holding NV
Heineken NV
ING Groep NV CVA*
Koninklijke Ahold NV
Koninklijke BAM Groep NV
Koninklijke DSM NV
Koninklijke KPN NV
Koninklijke Philips Electronics NV
Nutreco NV
Randstad Holding NV*
Reed Elsevier NV
SBM Offshore NV
SNS REAAL NV*
TNT NV
Unilever NV CVA
Wolters Kluwer NV
40,516
22,531
4,581
8,289
16,983
7,010
9,820
294,124
25,022
5,832
15,593
40,213
36,696
4,142
6,655
4,073
3,932
2,589
13,380
70,091
7,451
639,523
Schedule of Investments (Continued)
PowerShares FTSE RAFI Europe Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
92
285
1,395
4,674
1,463
2,399
705
1,162
182
Norway—1.4%
Aker ASA, Class A
Aker Solutions ASA
DnB NOR ASA
Norsk Hydro ASA
Orkla ASA
Statoil ASA
Storebrand ASA*
Telenor ASA
Yara International ASA
569
7,825
488
424
216
4,104
197
199
1,668
2,459
Portugal—0.6%
Banco BPI SA
Banco Comercial Portugues SA, Class R
Banco Espirito Santo SA
Brisa Auto-Estradas de Portugal SA
CIMPOR-Cimentos de Portugal SGPS SA
EDP-Energias de Portugal SA
Galp Energia SGPS SA, Class B
Jeronimo Martins SGPS SA
Portugal Telecom SGPS SA
Sonae
Common Stocks and Other
Equity Interests (Continued)
$
1,875
4,317
19,045
28,461
14,086
52,102
5,101
18,636
9,518
153,141
1,260
7,113
2,421
3,207
1,498
15,681
3,795
2,982
24,041
2,905
64,903
293
42
348
295
7,338
2,390
121
2,494
14,788
438
522
45
967
194
134
223
146
296
603
162
586
6,264
3,710
122
1,296
Spain—6.5%
Abertis Infraestructuras SA
Acciona SA
Acerinox SA
ACS Actividades de Construccion y
Servicios SA
Banco Bilbao Vizcaya Argentaria SA
Banco de Sabadell SA
Banco Espanol de Credito SA
Banco Popular Espanol SA
Banco Santander SA
Bankinter SA
Caja de Ahorros del Mediterraneo
Cementos Portland Valderrivas SA
Criteria Caixacorp SA
EDP Renovaveis SA*
Enagas
Endesa SA
Fomento de Construcciones y Contratas SA
Gamesa Corp. Tecnologica SA*
Gas Natural SDG SA
Gestevision Telecinco SA
Iberdrola Renovables SA
Iberdrola SA
Iberia Lineas Aereas de Espana SA*
Industria de Diseno Textil SA
Mapfre SA
Value
5,779
3,689
5,698
15,462
96,381
11,610
1,212
16,108
189,733
2,915
5,325
922
5,453
1,124
2,949
6,171
3,933
2,057
8,817
2,064
1,978
52,760
16,259
10,176
4,294
306
34
3,015
307
5,428
76
Promotora de Informaciones SA*
Red Electrica Corporacion SA
Repsol YPF SA
Sacyr Vallehermoso SA*
Telefonica SA
Zardoya Otis SA
219
313
464
316
397
427
373
172
393
172
982
41
361
4,820
121
1,272
852
824
527
2,994
779
522
309
146
1,190
706
1,208
494
3,408
2,934
1,202
2,574
Sweden—4.1%
Alfa Laval AB
Assa Abloy AB, Class B
Atlas Copco AB, Class A
Atlas Copco AB, Class B
Boliden AB
Electrolux AB, Series B
Hennes & Mauritz AB, Class B
Holmen AB, Class B
Industrivarden AB, Class A
Industrivarden AB, Class C
Investor AB, Class B
Lundbergforetagen AB, Class B
NCC AB, Class B
Nordea Bank AB
Ratos AB, Class B
Sandvik AB
SAS AB*
Scania AB, Class B
Securitas AB, Class B
Skandinaviska Enskilda Banken AB, Class A
Skanska AB, Class B
SKF AB, Class B
SSAB AB, Class A
SSAB AB, Class B
Svenska Cellulosa AB, Class B
Svenska Handelsbanken AB, Class A
Swedbank AB, Class A*
Tele2 AB, Class B
Telefonaktiebolaget LM Ericsson, Class B
TeliaSonera AB
Volvo AB, Class A*
Volvo AB, Class B*
1,013
208
80
15
486
280
1,367
552
Switzerland—6.5%
ABB Ltd.*
Adecco SA
Baloise Holding AG
BKW FMB Energie AG
Clariant AG*
Compagnie Financiere Richemont SA
Credit Suisse Group AG
GAM Holding Ltd.*
$
789
1,706
83,497
2,012
146,361
1,264
708,498
3,782
7,992
9,661
6,005
6,715
10,317
13,096
5,441
5,949
2,536
20,080
2,623
7,673
52,875
4,299
19,105
3,228
17,452
5,742
23,109
14,849
13,430
4,316
1,801
18,388
22,997
16,801
10,831
37,309
24,396
15,839
34,725
443,362
20,991
11,632
7,398
1,023
8,223
13,973
56,501
8,728
See Notes to Financial Statements.
99
Schedule of Investments (Continued)
PowerShares FTSE RAFI Europe Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests (Continued)
21
5
10
289
146
36
2,137
1,733
60
279
523
16
11
4
15
46
134
748
26
51
21
4,533
248
Geberit AG
$
Givaudan SA
Helvetia Holding AG
Holcim Ltd.
Julius Baer Group Ltd.
Kuehne & Nagel International AG
Nestle SA
Novartis AG
Pargesa Holding SA
Petroplus Holdings AG*
Roche Holding AG
Schindler Holding AG
Schindler Holding AG Participant Certificates
SGS SA
Swatch Group AG-Bearer
Swatch Group AG-Registered
Swiss Life Holding AG*
Swiss Reinsurance Co. Ltd.
Swisscom AG
Syngenta AG
Synthes, Inc.
UBS AG*
Zurich Financial Services AG
Common Stocks and Other
Equity Interests (Continued)
4,025
5,155
3,526
18,028
6,166
4,455
117,117
100,526
4,761
3,299
76,841
1,741
1,180
6,406
5,736
3,199
16,418
35,974
10,868
14,115
2,507
76,787
60,745
708,044
1,078
310
610
1,431
305
483
1,696
10,459
4,480
1,202
22,486
3,568
2,005
3,477
34,603
1,611
1,598
1,078
1,015
28,195
425
3,945
3,945
319
665
665
United Kingdom—30.4%
3i Group PLC
AMEC PLC
Amlin PLC
Anglo American PLC
Antofagasta PLC
Associated British Foods PLC
AstraZeneca PLC
Aviva PLC
BAE Systems PLC
Balfour Beatty PLC
Barclays PLC
Barratt Developments PLC*
BG Group PLC
BHP Billiton PLC
BP PLC
British Airways PLC*
British American Tobacco PLC
British Land Co. PLC REIT
British Sky Broadcasting Group PLC
BT Group PLC
Bunzl PLC
Cable & Wireless Communications PLC
Cable & Wireless Worldwide PLC
Capita Group PLC (The)
Capital & Counties Properties PLC
Capital Shopping Centres Group PLC REIT
See Notes to Financial Statements.
100
Value
5,164
5,383
3,965
66,532
6,447
8,085
84,858
66,570
24,690
5,318
98,720
4,455
38,964
123,049
235,567
6,972
60,806
8,781
11,465
69,285
5,021
3,371
4,428
3,909
1,587
4,087
893
6,690
2,008
2,378
1,140
18,092
375
2,822
182
561
1,085
1,439
3,345
6,310
806
2,223
2,344
20,905
848
836
1,428
375
3,123
1,064
5,965
3,865
288
203
2,543
4,747
2,177
1,278
14,580
54,306
3,186
234
156
2,981
3,220
1,529
1,090
1,207
4,219
204
12,948
991
436
1,073
3,498
4,233
369
Carnival PLC
Centrica PLC
Compass Group PLC
Diageo PLC
Drax Group PLC
DSG International PLC*
easyJet PLC*
Enterprise Inns PLC*
Eurasian Natural Resources Corp. PLC
Experian PLC
FirstGroup PLC
G4S PLC
GKN PLC
GlaxoSmithKline PLC
Hammerson PLC REIT
Hays PLC
Home Retail Group PLC
HSBC Holdings PLC
ICAP PLC
Imperial Tobacco Group PLC
Inchcape PLC*
InterContinental Hotels Group PLC
International Power PLC
Investec PLC
ITV PLC*
J Sainsbury PLC
Johnson Matthey PLC
Kazakhmys PLC
Kesa Electricals PLC
Kingfisher PLC
Ladbrokes PLC
Land Securities Group PLC REIT
Legal & General Group PLC
Lloyds Banking Group PLC*
Logica PLC
London Stock Exchange Group PLC
Lonmin PLC*
Man Group PLC
Marks & Spencer Group PLC
Mitchells & Butlers PLC*
Mondi PLC
National Express Group PLC*
National Grid PLC
Next PLC
Old Mutual PLC
Pearson PLC
Pennon Group PLC
Persimmon PLC*
Prudential PLC
Punch Taverns PLC*
Reckitt Benckiser Group PLC
$
38,406
35,532
16,421
43,798
6,939
7,761
2,734
5,148
2,533
6,507
7,076
6,021
9,482
123,180
5,401
3,927
8,207
216,948
6,185
26,719
7,961
7,237
20,836
8,475
6,509
24,056
8,813
4,271
6,444
18,048
4,587
13,833
23,404
59,857
6,596
2,746
4,362
12,430
22,003
7,884
9,062
4,805
39,798
7,453
26,891
15,123
4,343
5,850
35,261
4,852
20,595
Schedule of Investments (Continued)
PowerShares FTSE RAFI Europe Portfolio
October 31, 2010
Number
of Shares
Value
Common Stocks and Other
Equity Interests (Continued)
718
2,870
1,884
1,475
98,496
1,318
84,063
7,401
5,656
6,641
753
1,202
133
64
1,415
903
415
474
434
1,580
3,825
629
937
11,886
9,971
1,892
408
1,213
2,399
897
1,602
111
102,926
272
1,321
3,415
724
2,004
2,062
10,741
Reed Elsevier PLC
Rentokil Initial PLC*
Rexam PLC
Rio Tinto PLC
Rolls-Royce Group PLC, Class C*
Rolls-Royce Group PLC*
Royal Bank of Scotland Group PLC*
Royal Dutch Shell PLC, Class A
Royal Dutch Shell PLC, Class B
RSA Insurance Group PLC
SABMiller PLC
Sage Group PLC (The)
Schroders PLC
Schroders PLC NVTG
Scottish & Southern Energy PLC
Segro PLC REIT
Severn Trent PLC
Smith & Nephew PLC
Smiths Group PLC
Standard Chartered PLC
Standard Life PLC
TalkTalk Telecom Group PLC*
Tate & Lyle PLC
Taylor Wimpey PLC*
Tesco PLC
Thomas Cook Group PLC
Travis Perkins PLC
TUI Travel PLC
Unilever PLC
United Business Media Ltd.
United Utilities Group PLC
Vedanta Resources PLC
Vodafone Group PLC
Whitbread PLC
William Hill PLC
William Morrison Supermarkets PLC
Wolseley PLC*
WPP PLC
Xstrata PLC
Yell Group PLC*
Number
of Shares
Value
Preferred Stocks—0.8%
$
6,141
4,547
9,570
95,178
158
13,644
59,956
239,731
180,721
13,909
24,361
5,177
3,358
1,293
26,084
4,279
9,256
4,161
8,271
45,609
13,882
1,326
7,520
4,238
68,047
5,472
5,404
4,094
69,001
9,437
15,649
3,682
279,502
7,367
3,394
16,041
19,250
23,261
39,874
2,420
91
137
236
395
Germany—0.7%
Fresenius SE
Henkel AG & Co. KGaA
ProSiebenSat.1 Media AG
Volkswagen AG
$
8,146
8,070
6,229
59,293
81,738
80
6,671
Italy—0.1%
EXOR SpA
Unipol Gruppo Finanziario SpA
1,577
3,922
5,499
Total Preferred Stocks
(Cost $60,837)
Total Investments
(Cost $11,968,753)—99.9%
Other assets less liabilities—0.1%
Net Assets—100.0%
87,237
10,944,915
14,626
$10,959,541
Investment Abbreviations:
CVA—Dutch Certificate
FDR—Fiduciary Depository Receipt
NVTG—Non Voting
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
* Non-income producing security.
3,335,054
Total Common Stocks and Other
Equity Interests
(Cost $11,907,916)
10,857,678
See Notes to Financial Statements.
101
Schedule of Investments
PowerShares FTSE RAFI Japan Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks—99.8%
1,200
2,400
1,700
2,000
1,300
4,800
2,000
500
600
8,000
5,200
10,000
12,000
20,000
250
18,700
12,100
2,000
6,000
4,814
2,600
500
11,400
380
1,500
Consumer Discretionary—23.7%
Aisin Seiki Co. Ltd.
Bridgestone Corp.
Canon Marketing Japan, Inc.
Casio Computer Co. Ltd.
Chofu Seisakusho Co. Ltd.
Daiei, Inc. (The)*
Denso Corp.
Dentsu, Inc.
Fast Retailing Co. Ltd.
Fuji Heavy Industries Ltd.
Honda Motor Co. Ltd.
Isuzu Motors Ltd.
Mazda Motor Corp.
Mitsubishi Motors Corp.*
Nippon Television Network Corp.
Nissan Motor Co. Ltd.
Panasonic Corp.
Sekisui House Ltd.
Sharp Corp.
Sony Corp.
Suzuki Motor Corp.
Toyota Industries Corp.
Toyota Motor Corp.
Yamada Denki Co. Ltd.
Yamaha Motor Co. Ltd.*
Common Stocks (Continued)
$
37,646
42,994
21,168
14,053
26,258
17,341
62,197
11,782
78,436
55,320
189,602
38,485
30,540
23,836
32,992
164,829
177,707
18,796
59,218
160,765
63,362
14,091
404,626
24,673
23,017
1,793,734
5,400
3,000
20
2,000
3,000
2,500
3,500
Consumer Staples—4.4%
Aeon Co. Ltd.
Ajinomoto Co., Inc.
Japan Tobacco, Inc.
Kao Corp.
Kirin Holdings Co. Ltd.
Seven & I Holdings Co. Ltd.
UNY Co. Ltd.
63,553
28,603
62,148
50,726
41,117
58,132
29,156
333,435
18,000
2,000
Energy—0.9%
Cosmo Oil Co. Ltd.
TonenGeneral Sekiyu K.K.
48,492
17,802
66,294
4,600
6,000
7,000
900
4,000
9,000
2,000
600
2,000
Financials—13.0%
Aiful Corp.*
Bank of Yokohama Ltd. (The)
Chuo Mitsui Trust Holdings, Inc.
Credit Saison Co. Ltd.
Daiwa House Industry Co. Ltd.
Daiwa Securities Group, Inc.
Fukuoka Financial Group, Inc.
Hitachi Capital Corp.
Mitsubishi Estate Co. Ltd.
See Notes to Financial Statements.
102
Value
2,627
29,497
25,289
12,805
43,153
36,648
7,772
7,985
35,009
44,385
3,000
46,534
1,000
9,800
490
2,450
2,100
13,000
5,100
1,000
5,000
1,650
2,000
1,000
Mitsubishi UFJ Financial Group, Inc.
Mitsui Fudosan Co. Ltd.
Mizuho Financial Group, Inc.
MS&AD Insurance Group Holdings, Inc.
Nomura Holdings, Inc.
ORIX Corp.
Promise Co. Ltd.
Resona Holdings, Inc.
Shinsei Bank Ltd.*
Sumitomo Mitsui Financial Group, Inc.
Sumitomo Realty & Development Co. Ltd.
Sumitomo Trust & Banking Co. Ltd. (The)
T&D Holdings, Inc.
Tokio Marine Holdings, Inc.
Tokyu Land Corp.
$ 206,634
56,648
67,591
23,998
50,855
44,651
10,250
16,738
10,329
152,715
21,775
27,374
33,778
56,313
4,556
984,990
500
500
500
1,700
500
1,000
500
500
1,700
Health Care—3.0%
Alfresa Holdings Corp.
Astellas Pharma, Inc.
Chugai Pharmaceutical Co. Ltd.
Daiichi Sankyo Co. Ltd.
Eisai Co. Ltd.
Medipal Holdings Corp.
Ono Pharmaceutical Co. Ltd.
Suzuken Co. Ltd.
Takeda Pharmaceutical Co. Ltd.
5,000
5
1,400
500
6,000
5,000
3,000
7,000
5,700
1,500
3,500
9,000
5,000
5,000
11,000
3,000
3,000
7,000
4,700
7,000
14,000
5,800
6,000
Industrials—20.0%
Asahi Glass Co. Ltd.
Central Japan Railway Co.
East Japan Railway Co.
FANUC Ltd.
Fuji Electric Holdings Co. Ltd.
Hankyu Hanshin Holdings, Inc.
Hanwa Co. Ltd.
IHI Corp.
ITOCHU Corp.
JS Group Corp.
JTEKT Corp.
Kajima Corp.
Kawasaki Heavy Industries Ltd.
Kawasaki Kisen Kaisha Ltd.
Kintetsu Corp.
Komatsu Ltd.
Kubota Corp.
Marubeni Corp.
Mitsubishi Corp.
Mitsubishi Electric Corp.
Mitsubishi Heavy Industries Ltd.
Mitsui & Co. Ltd.
Mitsui OSK Lines Ltd.
21,012
18,584
8,746
35,984
17,182
11,670
21,229
15,711
79,565
229,683
47,983
37,803
86,468
72,315
14,302
23,960
11,844
13,296
49,959
29,497
35,109
21,117
13,780
19,491
34,823
73,445
26,667
43,973
112,905
65,611
50,925
91,086
38,436
Schedule of Investments (Continued)
PowerShares FTSE RAFI Japan Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks (Continued)
20,000
10,000
4,000
10,000
2,000
4,000
3,000
35,325
4,800
4,500
7,000
5,000
6,000
2,600
Nagoya Railroad Co. Ltd.
Nippon Express Co. Ltd.
Nippon Sheet Glass Co. Ltd.
Nippon Yusen Kabushiki Kaisha
NSK Ltd.
Obayashi Corp.
Shimizu Corp.
Sojitz Corp.
Sumitomo Corp.
Sumitomo Electric Industries Ltd.
Taisei Corp.
Tokyu Corp.
Toppan Printing Co. Ltd.
Toyota Tsusho Corp.
Common Stocks (Continued)
$
54,873
39,727
8,790
42,086
15,146
16,288
11,583
64,905
60,782
57,374
14,947
22,346
48,268
40,315
1,512,225
2,000
4,200
400
1,900
11,000
36,000
1,000
2,000
700
500
27,000
500
1,400
2,000
1,700
500
14,000
Information Technology—13.6%
Alps Electric Co. Ltd.
Canon, Inc.
Elpida Memory, Inc.*
FUJIFILM Holdings Corp.
Fujitsu Ltd.
Hitachi Ltd.
HOYA Corp.
Konica Minolta Holdings, Inc.
Kyocera Corp.
Murata Manufacturing Co. Ltd.
NEC Corp.
Nintendo Co. Ltd.
OMRON Corp.
Ricoh Co. Ltd.
Seiko Epson Corp.
Sumco Corp.*
Toshiba Corp.
8,000
2,000
2,100
1,300
19,000
9,500
8,000
8,000
1,000
22,000
10,000
9,000
500
10,000
13,000
1,000
Materials—8.6%
Asahi Kasei Corp.
Hitachi Metals Ltd.
JFE Holdings, Inc.
JSR Corp.
Kobe Steel Ltd.
Mitsubishi Chemical Holdings Corp.
Mitsubishi Materials Corp.*
Mitsui Chemicals, Inc.
Nippon Paper Group, Inc.
Nippon Steel Corp.
Nisshin Steel Co. Ltd.
OJI Paper Co. Ltd.
Shin-Etsu Chemical Co. Ltd.
Sumitomo Chemical Co. Ltd.
Sumitomo Metal Industries Ltd.
Sumitomo Metal Mining Co. Ltd.
Value
17,902
193,966
4,097
63,333
75,109
162,681
23,364
19,367
69,783
28,088
75,084
129,423
32,467
27,958
27,078
7,740
70,043
9,000
9,000
3,000
1,400
Taiheiyo Cement Corp.*
Teijin Ltd.
Toray Industries, Inc.
Toyo Seikan Kaisha Ltd.
19
3,500
74
600
Telecommunication Services—5.4%
KDDI Corp.
Nippon Telegraph & Telephone Corp.
NTT DoCoMo, Inc.
SoftBank Corp.
2,700
4,300
500
500
2,900
2,200
15,000
5,000
1,600
3,900
5,000
Utilities—7.2%
Chubu Electric Power Co., Inc.
Chugoku Electric Power Co., Inc. (The)
Electric Power Development Co. Ltd.
Hokuriku Electric Power Co.
Kansai Electric Power Co., Inc. (The)
Kyushu Electric Power Co., Inc.
Osaka Gas Co. Ltd.
Toho Gas Co. Ltd.
Tohoku Electric Power Co., Inc.
Tokyo Electric Power Co., Inc. (The)
Tokyo Gas Co. Ltd.
$
9,721
33,296
17,356
23,863
650,097
102,253
158,815
124,482
19,292
404,842
68,246
86,694
14,805
12,123
73,373
52,084
56,611
26,381
35,893
93,203
23,526
542,939
Total Investments
(Cost $7,527,081)—99.8%
Other assets less liabilities—0.2%
Net Assets—100.0%
7,545,722
13,307
$7,559,029
Notes to Schedule of Investments:
* Non-income producing security.
1,027,483
46,977
22,769
65,490
22,482
41,750
48,945
25,028
23,439
25,400
69,100
18,001
41,564
25,295
43,575
30,180
15,866
See Notes to Financial Statements.
103
Schedule of Investments
PowerShares Global Agriculture Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks—100.0%
35,079
282,699
46,284
Australia—2.5%
GrainCorp Ltd.
Incitec Pivot Ltd.
Nufarm Ltd.*
Common Stocks (Continued)
$
258,915
1,030,818
206,422
1,496,155
72,000
Brazil—1.9%
Cosan SA Industria e Comercio
27,839
28,110
65,727
Canada—12.0%
Agrium, Inc.
Potash Corp. of Saskatchewan, Inc.
Viterra, Inc.*
45,653
2,468,194
4,074,514
631,046
2,359,757
China—1.1%
China Bluechemical Ltd., H-Shares
645,238
8,436
Denmark—1.2%
Danisco A/S
726,489
33,854
33,492
Germany—5.3%
K+S AG
Suedzucker AG
2,353,155
791,359
816,000
49,884
2,146,760
892,000
Norway—4.4%
Yara International ASA
Singapore—9.2%
Golden Agri-Resources Ltd.
Wilmar International Ltd.
7,453
South Africa—0.2%
Astral Foods Ltd.
15,556
Switzerland—7.2%
Syngenta AG
173,000
65,982
25,508
12,573
13,312
14,585
10,963
13,283
75,864
70,689
11,843
Taiwan—1.0%
Taiwan Fertilizer Co. Ltd.
United States—28.5%
Archer-Daniels-Midland Co.
Bunge Ltd.
CF Industries Holdings, Inc.
Corn Products International, Inc.
Darling International, Inc.*
Fresh Del Monte Produce, Inc.*
Intrepid Potash, Inc.*
Monsanto Co.
Mosaic Co. (The)
Scotts Miracle-Gro Co. (The), Class A
564,960
715,000
1,242,000
278,500
Indonesia—1.3%
Astra Agro Lestari Tbk PT
162,369
1,362
81,232
Israel—7.3%
Israel Chemicals Ltd.
Israel Corp. Ltd. (The)*
Makhteshim-Agan Industries Ltd.*
Total Common Stocks
(Cost $51,014,807)
460,579
1,040,362
656,863
2,157,804
775,905
2,486,632
1,463,104
408,789
Malaysia—8.5%
Genting Plantations Bhd
IOI Corp. Bhd
Kuala Lumpur Kepong Bhd
PPB Group Bhd
376,011
2,209,412
1,202,063
1,294,604
5,082,090
6,212
Netherlands—0.8%
Nutreco NV
See Notes to Financial Statements.
104
451,389
119,663
4,305,382
590,386
2,198,520
1,532,266
1,540,570
566,426
145,996
242,611
456,005
4,507,839
5,171,607
632,416
59,625,496
Money Market Fund—0.0%
2,397
Goldman Sachs Financial Square Prime
Obligations Institutional Share Class
(Cost $2,397)
Total Investments
(Cost $51,017,204)—100.0%
Other assets less liabilities—0.0%
Net Assets—100.0%
4,358,525
136,200
1,181,200
188,900
209,800
1,078,149
4,410,894
16,994,256
3,144,514
Hong Kong—3.6%
Chaoda Modern Agriculture (Holdings) Ltd.
China Agri-Industries Holdings Ltd.
Sinofert Holdings Ltd.*
$ 2,608,934
5,489,043
1,146,212
7,173,754
Chile—4.0%
Sociedad Quimica y Minera de Chile SA,
Class B
Value
Notes to Schedule of Investments:
* Non-income producing security.
2,397
59,627,893
7,724
$59,635,617
Schedule of Investments
PowerShares Global Biotech Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks—99.8%
Common Stocks (Continued)
9,297
Australia—7.8%
CSL Ltd.
1,401
Austria—0.9%
Intercell AG*
34,243
Cayman Islands—1.5%
Sino Biopharmaceutical Ltd.
56,654
2,349
Netherlands—2.0%
Crucell NV*
75,908
6,143
6,407
Spain—3.3%
Grifols SA
Zeltia SA*
99,342
28,674
6,110
Sweden—1.0%
Swedish Orphan Biovitrum AB*
3,140
Switzerland—4.1%
Actelion Ltd.*
156,793
1,116
2,397
2,742
607
5,346
4,141
3,236
2,476
2,942
2,364
5,364
2,168
1,713
1,701
3,601
1,746
4,016
8,347
2,650
4,725
3,493
2,857
965
1,305
2,819
1,806
3,452
980
2,526
1,949
United States—79.2%
Acorda Therapeutics, Inc.*
Alexion Pharmaceuticals, Inc.*
Alkermes, Inc.*
AMAG Pharmaceuticals, Inc.*
Amgen, Inc.*
Amylin Pharmaceuticals, Inc.*
Arena Pharmaceuticals, Inc.*
Biogen Idec, Inc.*
BioMarin Pharmaceutical, Inc.*
Celera Corp.*
Celgene Corp.*
Cephalon, Inc.*
Cepheid, Inc.*
Cubist Pharmaceuticals, Inc.*
Dendreon Corp.*
Enzon Pharmaceuticals, Inc.*
Genzyme Corp.*
Gilead Sciences, Inc.*
Halozyme Therapeutics, Inc.*
Human Genome Sciences, Inc.*
Incyte Corp.*
Isis Pharmaceuticals, Inc.*
Martek Biosciences Corp.*
Momenta Pharmaceuticals, Inc.*
Myriad Genetics, Inc.*
Onyx Pharmaceuticals, Inc.*
PDL BioPharma, Inc.
Pharmasset, Inc.*
Regeneron Pharmaceuticals, Inc.*
Savient Pharmaceuticals, Inc.*
30,177
163,715
31,725
9,657
305,738
53,957
5,339
155,270
76,963
13,475
332,943
144,042
36,042
39,599
131,436
19,643
289,674
331,125
19,424
127,008
58,193
26,113
21,182
21,807
56,183
48,455
18,054
36,750
65,878
24,187
144,000
Value
$ 299,177
128,016
36,543
2,907
2,110
1,628
3,926
Seattle Genetics, Inc.*
Theravance, Inc.*
United Therapeutics Corp.*
Vertex Pharmaceuticals, Inc.*
$
47,646
43,002
97,680
150,484
3,032,566
Total Common Stocks
(Cost $3,521,829)
3,819,900
Money Market Fund—0.3%
10,202
Goldman Sachs Financial Square Prime
Obligations Institutional Share Class
(Cost $10,202)
Total Investments
(Cost $3,532,031)—100.1%
Liabilities in excess of other assets—(0.1%)
Net Assets—100.0%
10,202
3,830,102
(2,409)
$3,827,693
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
105
Schedule of Investments
PowerShares Global Clean Energy Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests—100.0%
Australia—0.6%
1,266,783 Infigen Energy
Austria—1.7%
68,819 Verbund AG
Belgium—0.5%
1,032,767 Hansen Transmissions International NV*
Bermuda—1.8%
27,990,000 China WindPower Group Ltd.*
Brazil—3.0%
1,372,400 Brasil Ecodiesel Industria e Comercio
de Biocombustiveis e Oleos Vegetais SA*
194,100 Cosan SA Industria e Comercio
75,000 Sao Martinho SA
Value
Common Stocks and Other
Equity Interests (Continued)
$
912,650
2,746,635
17,229
425,072
26,575
21,698
24,481
193,227
Phoenix Solar AG
Q-Cells SE*
Roth & Rau AG*
SMA Solar Technology AG
Solar Millennium AG*
Solarworld AG
7,513,000
1,056,000
82,596
922,000
Ireland—1.6%
307,462 Kingspan Group PLC
323,200
1,380,000
3,013,000
275,120
240,658
188,324
873,599
3,089,996
901,335
2,384,064
642,947
2,210,269
670,779
1,969,893
2,819,705
3,136,477
2,297,252
2,043,186
2,195,858
14,462,371
Denmark—5.0%
21,796 Novozymes A/S, Class B
22,676 Rockwool International A/S, Class B
81,715 Vestas Wind Systems A/S*
2,900,852
2,550,905
2,604,644
8,056,401
Finland—1.9%
107,625 Fortum Oyj
France—4.1%
79,782 EDF Energies Nouvelles SA
59,891 Saft Groupe SA
28,319 Sechilienne-Sidec
327,000
671,000
33,800
371,000
52,400
Japan—4.4%
GS Yuasa Corp.
Meidensha Corp.
NPC, Inc.
Takuma Co. Ltd.*
Tanaka Chemical Corp.
See Notes to Financial Statements.
106
2,180,000
2,390,776
780,484
907,349
932,857
7,191,466
New Zealand—1.6%
576,364 Contact Energy Ltd.*
2,578,699
Norway—1.5%
685,339 Renewable Energy Corp. ASA*
2,370,541
Philippines—1.5%
17,575,650 Energy Development Corp.
South Korea—0.5%
17,305 Taewoong Co. Ltd.
105,551
36,865
557,565
444,310
930,251
Spain—9.6%
Abengoa SA
Acciona SA
EDP Renovaveis SA*
Gamesa Corp. Tecnologica SA*
Iberdrola Renovables SA
2,451,276
864,289
2,919,437
3,238,284
3,230,808
3,087,733
3,140,591
15,616,853
Switzerland—2.0%
1,585 Gurit Holding AG
74,185 Meyer Burger Technology AG*
866,231
2,360,946
3,227,177
3,047,108
3,458,629
2,285,007
821,259
6,564,895
Germany—7.6%
53,518 Centrotherm Photovoltaics AG*
93,412 Nordex SE*
2,567,041
2,852,328
5,908,059
China—8.9%
BYD Co. Ltd., H-Shares
China High Speed Transmission
Equipment Group Co. Ltd.
China Longyuan Power Group Corp.,
H-Shares*
JA Solar Holdings Co. Ltd. ADR*
Suntech Power Holdings Co. Ltd. ADR*
Yingli Green Energy Holding Co. Ltd. ADR*
670,505
1,819,688
624,598
2,557,403
685,457
2,798,461
12,257,514
737,916
4,864,930
Cayman Islands—3.6%
GCL Poly Energy Holdings Ltd.*
Neo-Neon Holdings Ltd.
Trina Solar Ltd. ADR*
Wasion Group Holdings Ltd.
$
2,201,787
899,615
Taiwan—1.9%
775,000 Epistar Corp.
270,825 Neo Solar Power Corp.*
2,477,752
661,552
3,139,304
United Kingdom—0.7%
401,516 eaga PLC
794,348 PV Crystalox Solar PLC
398,005
673,102
1,071,107
Schedule of Investments (Continued)
PowerShares Global Clean Energy Portfolio
October 31, 2010
Number
of Shares
Value
Common Stocks and Other
Equity Interests (Continued)
42,448
246,181
189,729
101,369
60,826
564,864
1,402,275
182,143
46,546
81,121
183,387
99,467
75,473
15,543
24,748
825,650
285,425
116,687
41,322
81,813
46,201
193,914
82,246
78,510
74,941
272,529
31,937
164,006
121,621
29,114
88,684
United States—36.0%
A.O. Smith Corp.
A123 Systems, Inc.*
Advanced Battery Technologies, Inc.*
American Superconductor Corp.*
Baldor Electric Co.
Broadwind Energy, Inc.*
Capstone Turbine Corp.*
Covanta Holding Corp.
Cree, Inc.*
Echelon Corp.*
Ener1, Inc.*
Energy Conversion Devices, Inc.*
EnerNOC, Inc.*
First Solar, Inc.*
Fuel Systems Solutions, Inc.*
FuelCell Energy, Inc.*
GT Solar International, Inc.*
International Rectifier Corp.*
Itron, Inc.*
Johnson Controls, Inc.
Maxwell Technologies, Inc.*
MEMC Electronic Materials, Inc.*
Ormat Technologies, Inc.
Polypore International, Inc.*
Power Integrations, Inc.
Power-One, Inc.*
Rubicon Technology, Inc.*
SunPower Corp., Class A*
Tesla Motors, Inc.*
Universal Display Corp.*
Zoltek Cos., Inc.*
$
2,378,361
2,392,879
749,430
3,411,067
2,555,909
1,073,242
1,051,706
2,874,217
2,387,344
638,422
663,861
448,596
2,269,473
2,139,960
1,014,173
941,241
2,349,048
2,710,639
2,511,138
2,873,273
749,380
2,485,977
2,344,833
2,612,028
2,559,985
2,837,027
738,383
2,237,042
2,656,203
729,015
851,366
58,235,218
Total Investments
(Cost $171,114,983)—100.0%
Other assets less liabilities—0.0%
Net Assets—100.0%
161,723,778
62,027
$161,785,805
Investment Abbreviations:
ADR—American Depositary Receipt
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
107
Schedule of Investments
PowerShares Global Coal Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests—100.2%
47,785
12,232
983
36,011
123,101
105,107
34,993
73,181
Australia—20.3%
Aquila Resources Ltd.*
Coal & Allied Industries Ltd.
Energy Resources of Australia Ltd.
Extract Resources Ltd.*
New Hope Corp. Ltd.
Paladin Energy Ltd.*
Riversdale Mining Ltd.*
Whitehaven Coal Ltd.
560,000
Bermuda—1.1%
Mongolia Energy Co. Ltd.*
Common Stocks and Other
Equity Interests (Continued)
$
404,219
1,342,858
12,536
270,030
592,458
422,406
367,698
499,255
3,911,460
55,523
87,122
Canada—10.8%
Cameco Corp.
Uranium One, Inc.*
214,543
1,721,453
357,015
2,078,468
482,000
383,000
90,300
290,000
China—20.8%
China Coal Energy Co. Ltd., H-Shares
China Shenhua Energy Co. Ltd., H-Shares
Inner Mongolia Yitai Coal Co., Class B
Yanzhou Coal Mining Co. Ltd., H-Shares
833,146
1,704,462
636,796
834,204
4,008,608
3,364,500
2,877,000
167,500
341,500
Indonesia—16.1%
Adaro Energy Tbk PT
Bumi Resources Tbk PT
Indo Tambangraya Megah PT
Tambang Batubara Bukit Asam Tbk PT
790,540
716,232
847,105
750,822
3,104,699
Singapore—1.6%
Straits Asia Resources Ltd.
297,253
36,050
Thailand—4.8%
Banpu PCL
930,711
5,444
17,940
24,092
7,964
30,212
15,139
13,489
United States—24.7%
Alliance Resource Partners LP
Alpha Natural Resources, Inc.*
Arch Coal, Inc.
CONSOL Energy, Inc.
International Coal Group, Inc.*
Massey Energy Co.
Patriot Coal Corp.*
320,325
810,350
592,422
292,757
169,791
636,898
181,967
168,000
See Notes to Financial Statements.
108
Value
31,297
16,923
Peabody Energy Corp.
USEC, Inc.*
$ 1,655,611
90,876
4,750,997
Total Investments
(Cost $15,246,328)—100.2%
Liabilities in excess of other assets—(0.2%)
Net Assets—100.0%
Notes to Schedule of Investments:
* Non-income producing security.
19,296,739
(32,749)
$19,263,990
Schedule of Investments
PowerShares Global Gold and Precious Metals Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests—100.0%
41,069
14,511
109,643
60,688
280,372
66,731
24,199
16,671
19,999
23,047
94,520
34,006
12,083
11,932
98,434
79,124
26,249
16,501
17,395
49,373
19,939
102,184
37,221
50,207
11,145
12,083
53,776
156,599
50,623
9,456
27,916
56,444
41,926
32,506
54,799
15,461
30,728
5,833
39,227
11,389
49,741
23,792
14,687
107,165
Australia—8.3%
Avoca Resources Ltd.*
Kingsgate Consolidated Ltd.
Newcrest Mining Ltd.
Perseus Mining Ltd.*
St Barbara Ltd.*
Bermuda—0.7%
Aquarius Platinum Ltd.
Canada—45.8%
Agnico-Eagle Mines Ltd.
Alamos Gold, Inc.
Anatolia Minerals Development Ltd.*
Aurizon Mines Ltd.*
Barrick Gold Corp.
Centerra Gold, Inc.
Colossus Minerals, Inc.*
Detour Gold Corp.*
Eastern Platinum Ltd.*
Eldorado Gold Corp.
European Goldfields Ltd.*
Franco-Nevada Corp.
Fronteer Gold, Inc.*
Gabriel Resources Ltd.*
Gammon Gold, Inc.*
Goldcorp, Inc.
Golden Star Resources Ltd.*
Great Basin Gold Ltd.*
Guyana Goldfields, Inc.*
Harry Winston Diamond Corp.*
IAMGOLD Corp.
Kinross Gold Corp.
Lake Shore Gold Corp.*
Minefinders Corp.*
Nevsun Resources Ltd.*
New Gold, Inc.*
Northgate Minerals Corp.*
NovaGold Resources, Inc.*
Osisko Mining Corp.*
Pan American Silver Corp.
Rubicon Minerals Corp.*
Seabridge Gold, Inc.*
SEMAFO, Inc.*
Silver Standard Resources, Inc.*
Silver Wheaton Corp.*
Silvercorp Metals, Inc.
Ventana Gold Corp.*
Yamana Gold, Inc.
Value
Common Stocks and Other
Equity Interests (Continued)
$
126,806
142,663
4,294,584
177,864
114,051
211,000
4,855,968
384,402
1,881,035
258,682
148,184
154,462
4,562,522
680,053
98,554
349,307
179,921
1,342,838
355,455
570,465
138,634
306,155
136,571
4,572,975
195,688
141,109
121,241
154,719
983,462
2,823,891
172,126
83,260
159,387
418,782
119,071
365,437
761,456
495,767
113,841
158,837
471,834
277,562
1,433,182
223,050
131,629
1,181,595
578,000
China—2.0%
Zhaojin Mining Industry Co. Ltd.,
H-Shares
Zijin Mining Group Co. Ltd., H-Shares
$
655,947
545,023
1,200,970
13,097
Jersey Islands—2.1%
Randgold Resources Ltd.
1,219,725
57,480
Mexico—2.8%
Industrias Penoles SAB de CV
1,630,393
57,813
Russia—1.6%
Polymetal GDR*
37,755
48,388
101,957
62,071
88,047
30,967
51,842
South Africa—19.6%
Anglo Platinum Ltd.*
AngloGold Ashanti Ltd.
Gold Fields Ltd.
Harmony Gold Mining Co. Ltd.
Impala Platinum Holdings Ltd.
Mvelaphanda Resources Ltd.*
Northam Platinum Ltd.
59,364
103,815
48,703
29,271
27,142
United Kingdom—7.2%
African Barrick Gold Ltd.
Fresnillo PLC
Hochschild Mining PLC
Lonmin PLC*
Petropavlovsk PLC
913,445
3,760,820
2,270,819
1,606,504
715,547
2,505,847
203,863
361,036
11,424,436
517,741
2,074,743
377,185
818,505
420,277
4,208,451
12,710
12,914
37,034
69,885
7,712
14,139
16,848
United States—9.9%
Allied Nevada Gold Corp.*
Coeur d’Alene Mines Corp.*
Hecla Mining Co.*
Newmont Mining Corp.
Royal Gold, Inc.
Stillwater Mining Co.*
US Gold Corp.*
313,683
266,158
255,164
4,253,900
381,821
251,674
88,115
5,810,515
Total Common Stocks and Other
Equity Interests
(Cost $46,675,209)
58,371,044
26,722,739
See Notes to Financial Statements.
109
Schedule of Investments (Continued)
PowerShares Global Gold and Precious Metals Portfolio
October 31, 2010
Number
of Shares
Value
Money Market Fund—0.1%
38,535
Goldman Sachs Financial Square Prime
Obligations Institutional Share Class
(Cost $38,535)
$
38,535
Total Investments
(Cost $46,713,744)—100.1%
58,409,579
Liabilities in excess of other assets—(0.1%)
(32,269)
Net Assets—100.0%
Investment Abbreviations:
GDR—Global Depositary Receipt
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
110
$58,377,310
Schedule of Investments
PowerShares Global Nuclear Energy Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests—99.9%
62,375
313,790
12,712
Australia—5.3%
Energy Resources of Australia Ltd.
Paladin Energy Ltd.*
Silex Systems Ltd.*
Common Stocks and Other
Equity Interests (Continued)
$
795,431
1,261,065
65,292
2,121,788
42,570
288,192
221,548
328,147
Canada—11.3%
Cameco Corp.
Denison Mines Corp.*
Equinox Minerals Ltd.*
Uranium One, Inc.*
7,117
17,948
France—10.3%
Areva SA CI
Electricite de France SA
36,732
8,778
5,438
Germany—5.0%
E.ON AG
RWE AG
SGL Carbon SE*
16,991
India—2.0%
Larsen & Toubro Ltd. GDR
1,319,854
606,064
1,206,148
1,344,706
4,476,772
3,252,463
821,345
4,073,808
1,148,711
628,328
202,184
1,979,223
216,000
3,400
3,900
37,000
40,000
29,700
16,900
188,000
5,400
81,800
31,300
398,000
4,000
216,000
24,700
Japan—22.5%
Hitachi Ltd.
Hokkaido Electric Power Co., Inc.
Hokuriku Electric Power Co.
Japan Steel Works Ltd. (The)
JGC Corp.
Kansai Electric Power Co., Inc. (The)
Kyushu Electric Power Co., Inc.
Mitsubishi Heavy Industries Ltd.
Shikoku Electric Power Co., Inc.
Sumitomo Electric Industries Ltd.
Tokyo Electric Power Co., Inc. (The)
Toshiba Corp.
Toshiba Plant Systems & Services Corp.
Toyo Engineering Corp.
Yokogawa Electric Corp.
791,441
976,089
71,461
94,559
352,315
764,742
751,441
400,103
683,849
159,620
1,042,937
748,014
1,991,235
52,589
686,481
162,214
8,937,649
11,157
11,196
6,910
9,980
Netherlands—0.7%
Chicago Bridge & Iron Co. NV*
South Korea—4.9%
Doosan Heavy Industries and
Construction Co. Ltd.
KEPCO Engineering & Construction, Inc.
Korea Electric Power Corp.*
Value
345
56,350
12,177
5,352
1,954
13,021
5,267
43,319
21,961
4,427
26,181
7,115
11,698
6,395
14,280
5,958
58,332
6,168
1,075
11,436
26,425
3,525
5,737
6,968
16,886
12,875
34,321
20,478
5,715
2,168
24,669
118,077
Switzerland—0.0%
BKW FMB Energie AG
United Kingdom—1.4%
Serco Group PLC
United States—36.5%
AMETEK, Inc.
Belden, Inc.
CIRCOR International, Inc.
Constellation Energy Group, Inc.
Curtiss-Wright Corp.
Duke Energy Corp.
Emerson Electric Co.
Entergy Corp.
Exelon Corp.
Federal Signal Corp.
FirstEnergy Corp.
Flowserve Corp.
Fluor Corp.
General Cable Corp.*
General Electric Co.
Kirby Corp.*
Landauer, Inc.
Lightbridge Corp.*
McDermott International, Inc.*
Mine Safety Appliances Co.
MKS Instruments, Inc.*
NextEra Energy, Inc.
Parker Hannifin Corp.
Progress Energy, Inc.
SAIC, Inc.*
Shaw Group, Inc. (The)*
SPX Corp.
Team, Inc.*
Thermo Fisher Scientific, Inc.*
USEC, Inc.*
$
23,538
553,167
658,167
149,321
68,546
393,755
162,645
788,839
1,205,659
329,944
1,068,708
40,200
424,871
639,500
688,153
166,467
934,479
265,162
65,672
63,584
407,738
99,264
118,469
383,519
1,292,623
579,375
533,348
625,808
383,248
43,013
1,268,480
634,074
14,482,631
Total Investments
(Cost $38,999,742)—99.9%
Other assets less liabilities—0.1%
Net Assets—100.0%
39,672,886
28,597
$39,701,483
281,268
Investment Abbreviations:
GDR—Global Depositary Receipt
881,551
807,523
262,527
Notes to Schedule of Investments:
* Non-income producing security.
1,951,601
See Notes to Financial Statements.
111
Schedule of Investments
PowerShares Global Progressive Transportation Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests—99.9%
25,404
1,854
7,760
Canada—6.6%
Bombardier, Inc., Class B
Canadian National Railway Co.
Westport Innovations, Inc.*
Common Stocks and Other
Equity Interests (Continued)
$ 126,821
120,102
140,611
61,000
36,191
Taiwan—4.7%
Chinese Maritime Transport Ltd.
Giant Manufacturing Co. Ltd.
7,862
23,795
45,724
United Kingdom—7.9%
BG Group PLC
FirstGroup PLC
Stagecoach Group PLC
21,000
88,500
74,000
Chile—2.5%
Sociedad Quimica y Minera de Chile SA ADR
China—6.8%
BYD Co. Ltd., H-Shares
China Railway Construction Corp. Ltd.,
H-Shares
Dongfeng Motor Group Co. Ltd., H-Shares
146,439
17,748
8,880
2,179
49,545
3,682
10,606
2,040
3,924
3,207
6,267
1,507
3,344
2,565
United States—32.1%
A123 Systems, Inc.*
Clean Energy Fuels Corp.*
CSX Corp.
Ener1, Inc.*
Fuel Systems Solutions, Inc.*
Maxwell Technologies, Inc.*
Norfolk Southern Corp.
Overseas Shipholding Group, Inc.
Reliance Steel & Aluminum Co.
Tesla Motors, Inc.*
Union Pacific Corp.
WABCO Holdings, Inc.*
Wabtec Corp.
398,980
Denmark—2.5%
A P Moller—Maersk A/S, Class B
147,351
2,407
1,517
3,851
France—6.8%
Alstom SA
Faiveley Transport
Saft Groupe SA
121,308
128,090
146,926
3,980
Germany—2.5%
SGL Carbon SE*
147,976
17,000
Hong Kong—2.6%
Orient Overseas International Ltd.
149,008
9,553
46,821
Italy—5.2%
Ansaldo STS SpA
Piaggio & C. SpA
17
396,324
131,516
170,500
302,016
20,000
6,700
26,000
Japan—6.6%
GS Yuasa Corp.
Keihin Corp.
Kinki Sharyo Co. Ltd.
133,333
142,651
106,841
382,825
3,538
Netherlands—2.4%
Koninklijke Boskalis Westminster NV
6,552
Spain—2.8%
Telvent GIT SA*
166,224
1,246
1,335
Switzerland—5.5%
Kuehne & Nagel International AG
Panalpina Welttransport Holding AG*
154,182
166,824
321,006
See Notes to Financial Statements.
112
Total Common Stocks and Other
Equity Interests
(Cost $4,899,370)
5,835,838
Money Market Fund—0.1%
5,093
Goldman Sachs Financial Square Prime
Obligations Institutional Share Class
(Cost $5,093)
Total Investments
(Cost $4,904,463)—100.0%
Other assets less liabilities—0.0%
Net Assets—100.0%
Investment Abbreviations:
ADR—American Depositary Receipt
139,386
452
172,511
128,938
133,899
179,353
150,888
172,029
125,440
131,179
134,213
136,871
132,134
155,228
120,145
1,872,828
143,098
South Korea—2.4%
LG Chem Ltd.
152,786
155,179
152,786
460,751
127,994
110,621
160,365
$ 131,675
142,417
274,092
387,534
2,827
Value
Notes to Schedule of Investments:
* Non-income producing security.
5,093
5,840,931
1,393
$5,842,324
Schedule of Investments
PowerShares Global Steel Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests—99.9%
6,094
20,451
34,849
12,131
14,957
2,252
Australia—6.9%
Atlas Iron Ltd.*
BlueScope Steel Ltd.
Fortescue Metals Group Ltd.*
Mount Gibson Iron Ltd.*
OneSteel Ltd.
Sims Metal Management Ltd.
Common Stocks and Other
Equity Interests (Continued)
$
14,993
39,992
213,494
24,019
39,584
36,268
368,350
1,909
16,800
5,700
5,200
5,600
14,900
Austria—1.4%
Voestalpine AG
Brazil—17.4%
Cia Siderurgica Nacional SA
Gerdau SA
MMX Mineracao e Metalicos SA*
Usinas Siderurgicas de Minas Gerais SA
Vale SA
Value
54,000
1,800
800
2,000
Sumitomo Metal Industries Ltd.
Tokyo Steel Manufacturing Co. Ltd.
Yamato Kogyo Co. Ltd.
Yodogawa Steel Works Ltd.
12,717
2,263
Luxembourg—9.1%
ArcelorMittal
Ternium SA ADR
808,674
4,900
Mexico—0.3%
Industrias CH SAB de CV, Series B*
4,940
4,697
6,322
Russia—8.9%
Evraz Group SA GDR*
Mechel ADR
Novolipetsk Steel OJSC GDR
5,028
3,603
South Africa—5.0%
ArcelorMittal South Africa Ltd.
Kumba Iron Ore Ltd.
2,628
25,516
1,688
Chile—1.6%
CAP SA
86,192
China—1.7%
Angang Steel Co. Ltd., H-Shares
Fosun International
Maanshan Iron & Steel Co. Ltd., H-Shares
21,996
59,479
11,455
14,000
72,500
20,000
Finland—1.3%
Outokumpu Oyj
Rautaruukki Oyj
37,018
31,357
68,375
676
5,804
Germany—4.9%
Salzgitter AG
ThyssenKrupp AG
700
961
959
94,000
5,000
4,000
6,400
35,000
1,100
76,000
11,000
2,000
Hong Kong—0.3%
Shougang Concord International
Enterprises Co. Ltd.*
Japan—15.1%
Daido Steel Co. Ltd.
Hitachi Metals Ltd.
JFE Holdings, Inc.
Kobe Steel Ltd.
Maruichi Steel Tube Ltd.
Nippon Steel Corp.
Nisshin Steel Co. Ltd.
Sanyo Special Steel Co. Ltd.
South Korea—9.4%
Dongkuk Steel Mill Co. Ltd.
Hyundai Steel Co.
POSCO
16,112
93,089
393,742
502,943
2,811
46,025
385
2,717
Sweden—1.0%
Hoganas AB, Class B
SSAB AB, Class A
13,494
37,951
51,445
150,738
8,000
11,495
Taiwan—3.3%
China Steel Corp.
Feng Hsin Iron & Steel Co. Ltd.
Tung Ho Steel Enterprise Corp.
152,847
13,141
10,755
176,743
15,763
25,450
45,537
199,588
76,909
21,754
238,709
19,801
9,833
58,143
206,121
Spain—0.9%
Acerinox SA
48,473
213,291
261,764
149,781
110,614
216,402
264,264
92,930
2,063
1,581
17,673
476,797
928,908
Canada—0.5%
Consolidated Thompson Iron Mines Ltd.*
408,212
77,576
485,788
75,580
278,738
56,441
41,927
81,525
470,277
$ 125,363
17,832
20,499
7,399
18,052
1,242
1,114
497
1,526
1,289
3,560
Turkey—1.3%
Eregli Demir ve Celik Fabrikalari TAS*
United States—9.6%
AK Steel Holding Corp.
Allegheny Technologies, Inc.
Carpenter Technology Corp.
Cliffs Natural Resources, Inc.
Commercial Metals Co.
Nucor Corp.
68,068
15,637
58,697
17,723
99,495
17,891
136,063
See Notes to Financial Statements.
113
Schedule of Investments (Continued)
PowerShares Global Steel Portfolio
October 31, 2010
Number
of Shares
Value
Common Stocks and Other
Equity Interests (Continued)
836
321
2,447
1,619
864
Reliance Steel & Aluminum Co.
Schnitzer Steel Industries, Inc., Class A
Steel Dynamics, Inc.
United States Steel Corp.
Worthington Industries, Inc.
$
34,987
16,592
35,530
69,277
13,306
515,198
Total Investments
(Cost $5,187,200)—99.9%
Other assets less liabilities—0.1%
Net Assets—100.0%
Investment Abbreviations:
ADR—American Depositary Receipt
GDR—Global Depositary Receipt
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
114
5,336,996
3,581
$5,340,577
Schedule of Investments
PowerShares Global Water Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks—100.0%
Brazil—2.5%
356,500 Cia de Saneamento Basico do Estado
de Sao Paulo
Canada—5.6%
421,561 GLV, Inc., Class A*
545,382 Stantec, Inc.*
Common Stocks (Continued)
$
8,087,517
2,928,888
15,108,411
18,037,299
Finland—7.8%
911,376 Kemira Oyj
658,391 Uponor Oyj
Value
13,389,250
11,786,461
217,857
483,460
309,200
730,368
209,500
ITT Corp.
Nalco Holding Co.
Pentair, Inc.
Tetra Tech, Inc.*
Valmont Industries, Inc.
$ 10,280,672
13,623,903
10,120,116
15,381,550
16,519,075
93,980,207
Total Investments
(Cost $305,865,344)—100.0%
Other assets less liabilities—0.0%
Net Assets—100.0%
322,153,937
1,369
$322,155,306
25,175,711
France—9.9%
806,829 Suez Environnement Co.
551,172 Veolia Environnement
15,750,231
16,167,996
Notes to Schedule of Investments:
* Non-income producing security.
31,918,227
Germany—3.5%
14,568 KSB AG
11,237,679
Hong Kong—2.2%
14,285,909 Guangdong Investment Ltd.
7,168,477
Japan—10.7%
2,293,000 Ebara Corp.*
452,292 Kurita Water Industries Ltd.
1,939,000 Organo Corp.
9,821,043
11,746,677
12,830,379
34,398,099
Malaysia—2.3%
8,322,100 Puncak Niaga Holding Bhd
Netherlands—5.6%
656,688 Arcadis NV
247,861 Wavin NV*
7,595,939
14,621,949
3,415,394
18,037,343
Singapore—6.5%
5,272,000 Hyflux Ltd.
12,135,928 Sound Global Ltd.*
12,831,215
8,157,819
20,989,034
Switzerland—3.5%
58,240 Geberit AG
United Kingdom—10.7%
2,548,133 Halma PLC
581,317 Severn Trent PLC
828,271 United Utilities Group PLC
11,162,420
13,309,613
12,965,266
8,091,106
34,365,985
United States—29.2%
318,396 American Water Works Co., Inc.
362,184 Aqua America, Inc.
208,224 Itron, Inc.*
7,603,297
7,797,822
12,653,772
See Notes to Financial Statements.
115
Schedule of Investments
PowerShares Global Wind Energy Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests—99.9%
1,471,839
Australia—4.0%
Infigen Energy
1,221,533
9,580,000
125,022
449,000
2,544,000
Common Stocks and Other
Equity Interests (Continued)
$ 1,060,382
9,041
Belgium—3.3%
Hansen Transmissions International NV*
872,790
Bermuda—3.7%
China WindPower Group Ltd.*
976,252
4,632
36,034
1,898
25,045
2,415
2,677
99,277
Canada—4.5%
Innergex Renewable Energy, Inc.
China—13.5%
China High Speed Transmission Equipment
Group Co. Ltd.
China Longyuan Power Group Corp.,
H-Shares*
Value
1,184,367
United Kingdom—0.2%
International Power PLC
United States—10.9%
AES Corp. (The)*
American Superconductor Corp.*
Edison International
General Electric Co.
NextEra Energy, Inc.
Xcel Energy, Inc.
Zoltek Cos., Inc.*
$
60,320
55,306
1,212,544
70,036
401,221
132,922
63,873
953,059
2,888,961
917,426
Total Common Stocks and Other
Equity Interests
(Cost $31,155,570)
2,648,256
26,457,927
3,565,682
Money Market Fund—0.1%
70,198
Denmark—8.4%
Vestas Wind Systems A/S*
2,237,543
26,378
290,749
France—6.2%
EDF Energies Nouvelles SA
Theolia SA*
1,143,513
513,222
1,656,735
11,098
104,698
7,495
3,048
4,092
Germany—12.3%
E.ON AG
Nordex SE*
Repower Systems AG
RWE AG
Siemens AG
347,065
1,008,307
1,226,638
218,175
466,828
3,267,013
54,765
Italy—1.2%
Enel SpA
312,274
433
20,000
533
Japan—2.6%
Japan Wind Development Co. Ltd.*
Mitsubishi Heavy Industries Ltd.
Mitsui & Co. Ltd. ADR
449,395
72,750
167,970
690,115
370
469,608
6,166
157,057
807,653
Spain—25.5%
Acciona SA
EDP Renovaveis SA*
Endesa SA
Gamesa Corp. Tecnologica SA*
Iberdrola Renovables SA
32,501
2,721,141
170,631
1,091,468
2,726,692
6,742,433
13,566
1,212
Switzerland—3.6%
ABB Ltd. ADR
Gurit Holding AG
280,681
662,379
943,060
See Notes to Financial Statements.
116
19,150
Goldman Sachs Financial Square Prime
Obligations Institutional Share Class
(Cost $19,150)
Total Investments
(Cost $31,174,720)—100.0%
Other assets less liabilities—0.0%
Net Assets—100.0%
Investment Abbreviations:
ADR—American Depositary Receipt
Notes to Schedule of Investments:
* Non-income producing security.
19,150
26,477,077
5,138
$26,482,215
Schedule of Investments
PowerShares MENA Frontier Countries Portfolio
October 31, 2010
Number
of Shares
Value
Number
of Shares
Common Stocks and Other
Equity Interests—99.8%
145,958
7,165
68,096
150,599
15,358
20,760
23,029
636,763
122,886
84,441
Value
Common Stocks and Other
Equity Interests (Continued)
Egypt—19.3%
Commercial International Bank Egypt SAE $ 1,096,437
Egyptian Co. For Mobile Services
214,761
Egyptian Financial Group-Hermes
Holding SAE
342,087
Egyptian Kuwaiti Holding Co.
253,006
ElSewedy Electric Co.*
143,587
National Societe Generale Bank SAE
144,410
Orascom Construction Industries
1,047,975
Orascom Telecom Holding SAE
495,098
Talaat Moustafa Group*
161,727
Telecom Egypt
258,671
958,732
492,411
288,432
1,459,943
1,061,399
444,798
658,095
1,165,663
196,276
Jordan—7.0%
Arab Bank PLC
1,507,812
61,000
70,000
40,000
50,000
100,000
137,606
264,500
344,165
87,500
12,500
Kuwait—20.4%
Agility DGS
Boubyan Bank KSC*
Boubyan Petrochemicals Co.
Burgan Bank SAK*
Gulf Bank KSC*
Kuwait Finance House KSC
Mobile Telecommunications Co. KSC
National Bank of Kuwait SAK
National Industries Group Holding*
National Mobile Telecommunication Co. KSC
119,353
159,374
78,264
92,494
192,102
587,432
1,317,325
1,665,117
119,842
82,711
$
219,522
348,567
178,260
317,988
635,778
213,138
437,183
1,240,894
638,587
4,229,917
Total Common Stocks and Other
Equity Interests
(Cost $18,678,114)
4,157,759
102,120
United Arab Emirates—19.6%
Air Arabia
Aldar Properties PJSC
Arabtec Holding Co.*
Dana Gas PJSC*
DP World Ltd.
Dubai Financial Market
Dubai Islamic Bank PJSC
Emaar Properties PJSC*
National Bank of Abu Dhabi PJSC
Principal
Amount
Interest
Rate
21,515,816
Maturity
Date
Convertible Bond—0.0%
$
3,199
Oman—0.0%
Bank Muscat SAOG
(Cost $8,310)
7.00% 03/20/14
Total Investments
(Cost $18,686,424)—99.8%
Other assets less liabilities—0.2%
4,414,014
Net Assets—100.0%
27,823
Lebanon—2.4%
Solidere, S Shares GDR
511,665
1,345
10,421
33,495
41,546
Morocco—8.6%
Alliances Developpement Immobilier SA
Banque Centrale Populaire
Douja Promotion Groupe Addoha SA
Maroc Telecom
Investment Abbreviations:
GDR—Global Depositary Receipt
129,043
514,046
445,898
768,516
8,775
21,524,591
32,367
$21,556,958
Notes to the Schedule of Investments:
* Non-income producing security.
1,857,503
225,180
Oman—2.4%
Bank Muscat SAOG
33,552
30,916
31,829
15,893
119,691
34,567
32,880
Qatar—20.1%
Barwa Real Estate Co.
Commercial Bank of Qatar
Doha Bank QSC
Gulf International Services OSC
Masraf Al Rayan*
Qatar Islamic Bank
Qatar National Bank SAQ
510,404
298,752
708,593
467,977
116,618
513,138
734,326
1,487,338
4,326,742
See Notes to Financial Statements.
117
Statements of Assets and Liabilities
October 31, 2010
PowerShares
PowerShares
PowerShares
DWA
DWA
Dynamic
Developed
Emerging
Developed
Markets
Markets
International
Technical Leaders Technical Leaders Opportunities
Portfolio
Portfolio
Portfolio
PowerShares
Emerging
Markets
Infrastructure
Portfolio
ASSETS:
Investments, at value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign currency, at value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Receivables:
Shares sold. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dividends and interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign tax reclaims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unitary management fee waiver due from Adviser. . . . . . . . . . . . . . . . . . .
$ 97,952,656
—
7,435
$312,201,485
87
43,410
$ 32,446,336 $159,599,478
—
—
6,968
15,030
2,059,499
67,935
55,798
22,590
—
—
69,527
1,879
—
—
—
60,236
80,158
—
—
2,400
226,222
11,005
286,079
—
Total Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
100,165,913
312,316,388
32,593,698
160,140,214
13,465
—
—
—
93,107
—
2,397
—
2,109,650
—
62,478
—
—
229,987
—
—
20,471
341,126
—
99,094
113,578
442,617
LIABILITIES:
Due to custodian . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Due to foreign custodian . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payables:
Investments purchased. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares repurchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued unitary management fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,185,593
229,987
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 97,980,320
$312,086,401
$ 32,480,120 $159,697,597
Shares of beneficial interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Undistributed net investment income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated net realized gain (loss) on investments and
foreign currency related transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net unrealized appreciation (depreciation) on investments and
translation of assets and liabilities denominated in foreign currencies . . . .
$110,668,190
75,185
$302,564,765
207,155
$ 73,072,915 $129,339,662
438,779
784,991
12,392,189
31,487,659
Net Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 97,980,320
$312,086,401
NET ASSETS CONSIST OF:
(25,155,244)
(22,173,178)
(44,569,684)
(1,295,421)
3,538,110
30,868,365
$ 32,480,120 $159,697,597
Shares outstanding (unlimited amount authorized, $0.01 par value) . . . . . . .
Net asset value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
4,700,000
20.85
$
17,450,000
17.88
$
1,900,000
17.09 $
3,200,000
49.91
Share price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
20.94
$
17.99
$
17.03 $
50.04
Investments, at cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 85,560,285
$280,713,793
$ 28,912,444 $128,730,547
Foreign currency, at cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
$
$
See Notes to Financial Statements.
118
7,435
43,521
7,047 $
14,984
PowerShares
FTSE RAFI
Asia Pacific
ex-Japan
Portfolio
PowerShares
FTSE RAFI
Developed
Markets
ex-U.S.
Portfolio
PowerShares
FTSE RAFI
Developed
Markets
ex-U.S.
Small-Mid
Portfolio
$44,011,107
—
1,696
$183,260,773
—
9,065
$59,642,739
1,418
10,052
—
18,368
—
—
—
—
341,552
211,658
48,551
—
—
133,047
12,487
4,522
—
—
673,837
—
—
—
44,031,171
183,871,599
59,804,265
41,242
—
305,002
—
—
—
29,968
127,180
—
116,152
71,210
PowerShares
FTSE RAFI
Emerging
Markets
Portfolio
PowerShares
FTSE RAFI
Europe
Portfolio
PowerShares
FTSE RAFI
Japan
Portfolio
PowerShares
Global
Agriculture
Portfolio
$497,323,505 $10,944,915
299
—
162,962
2,153
$ 7,545,722
—
—
$59,627,893
—
—
—
8,884
21,014
1,807,260
—
—
63,728
—
—
—
—
7,388
36,752
—
—
498,160,603
12,784,226
7,609,450
59,672,033
—
—
—
—
8,896
—
45,551
45
—
94
—
—
37,924
565,874
—
352,679
4,569
1,803,255
7,965
—
—
4,825
—
—
36,322
918,553
548,334
37,924
1,824,685
50,421
36,416
$43,959,961 $183,323,265
$59,766,341
$497,242,050 $10,959,541
$ 7,559,029
$59,635,617
$43,639,951 $187,104,595
(1,686)
1,521,125
$59,081,455
240,190
$455,901,911 $14,624,828
3,921,287
220,861
$ 9,739,261
64,123
$51,091,399
410,378
(6,448,556)
(24,728,145)
(5,571,494)
6,770,252
19,425,690
6,016,190
$43,959,961
$183,323,265
$59,766,341
(30,604,971)
(2,863,742)
68,023,823
(1,022,406)
$497,242,050 $10,959,541
(2,265,565)
(479,817)
21,210
8,613,657
$ 7,559,029
$59,635,617
$
850,000
51.72
$
4,700,000
39.00
$
2,600,000
22.99
$
20,100,000
24.74 $
300,000
36.53
$
200,000
37.80
$
1,950,000
30.58
$
51.99
$
39.43
$
23.27
$
25.01 $
36.50
$
37.51
$
30.68
$37,240,970
$163,860,242
$53,631,704
$429,296,003 $11,968,753
$ 7,527,081
$
$
$
$
$
1,740
9,078
10,172
162,862 $
2,159
$51,017,204
(42) $
(92)
119
Statements of Assets and Liabilities (Continued)
October 31, 2010
PowerShares
Global Biotech
Portfolio
PowerShares
Global Clean
Energy
Portfolio
PowerShares
Global Coal
Portfolio
PowerShares
Global Gold and
Precious Metals
Portfolio
Investments, at value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign currency, at value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Receivables:
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dividends and interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign tax reclaims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unitary management fee waiver due from Adviser . . . . . . . . . . . . . . . . . .
$3,830,102
—
7
$ 161,723,778
—
35,516
$19,296,739
—
6,395
$58,409,579
1,765
1,890
—
—
—
—
—
—
27,511
112,228
—
—
1,611,607
18,998
2,524
—
—
—
3
—
—
—
Total Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,830,109
161,899,033
20,936,263
58,413,237
—
—
9,231
—
56,974
—
—
—
—
—
2,416
—
—
103,997
1,604,216
—
11,083
—
—
35,927
ASSETS:
LIABILITIES:
Due to custodian . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Due to foreign custodian . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payables:
Investments purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares repurchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued unitary management fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NET ASSETS
.................................................
2,416
113,228
1,672,273
35,927
$3,827,693
$ 161,785,805
$19,263,990
$58,377,310
$3,799,246
(175)
$ 305,689,312
208,502
$15,359,950
60,883
$46,093,109
1,693
NET ASSETS CONSIST OF:
Shares of beneficial interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Undistributed net investment income (loss). . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated net realized gain (loss) on investments and
foreign currency related transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net unrealized appreciation (depreciation) on investments and
translation of assets and liabilities denominated in foreign currencies . . . .
Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(269,449)
(134,732,112)
298,071
$3,827,693
(207,333)
(9,379,897)
$ 161,785,805
586,690
4,050,490
11,695,818
$19,263,990
$58,377,310
Shares outstanding (unlimited amount authorized, $0.01 par value) . . . . . .
Net asset value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
150,000
25.52
$
11,600,000
13.95
$
600,000
32.11
$
1,250,000
46.70
Share price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
25.51
$
13.91
$
32.29
$
46.77
Investments, at cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$3,532,031
$ 171,114,983
$15,246,328
$46,713,744
Foreign currency, at cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
$
$
$
See Notes to Financial Statements.
120
7
35,055
6,395
1,908
PowerShares
Global Nuclear
Energy
Portfolio
PowerShares
Global Progressive
Transportation
Portfolio
PowerShares
Global Steel
Portfolio
PowerShares
Global Water
Portfolio
PowerShares
Global Wind
Energy
Portfolio
PowerShares
MENA Frontier
Countries
Portfolio
$ 39,672,886
—
21
$5,840,931
—
622
$5,336,996
—
3,657
$ 322,153,937
—
92,489
$ 26,477,077
—
5,617
$ 21,524,591
—
—
—
76,041
42,899
—
—
—
1,851
2,618
—
—
—
6,534
1,582
—
—
—
226,726
402,461
—
—
—
1,072
24,679
14,659
—
—
35,341
—
821,815
4,580
39,791,847
5,846,022
5,348,769
322,875,613
26,523,104
22,386,327
65,378
—
6
—
4,825
—
515,970
—
—
—
811,641
323
—
—
24,986
—
—
3,692
—
—
3,367
—
—
204,337
23,452
—
17,437
—
—
17,405
90,364
3,698
8,192
720,307
40,889
829,369
$ 39,701,483
$5,842,324
$5,340,577
$ 322,155,306
$ 26,482,215
$ 21,556,958
$ 53,973,444
(233,017)
$5,341,023
22,989
$5,734,679
38,364
$ 432,799,291
1,567,883
$ 47,131,080
9
$ 38,259,988
320,019
(14,716,456)
(458,399)
(582,505)
(128,538,913)
677,512
936,711
150,039
16,327,045
$ 39,701,483
$5,842,324
$5,340,577
$ 322,155,306
(15,952,765)
(19,904,356)
(4,696,109)
$ 26,482,215
2,881,307
$ 21,556,958
$
2,000,000
19.85
$
200,000
29.21
$
250,000
21.36
$
17,250,000
18.68
$
2,600,000
10.19
$
1,575,000
13.69
$
19.86
$
29.18
$
21.29
$
18.69
$
10.21
$
13.74
$ 38,999,742
$4,904,463
$5,187,200
$ 305,865,344
$ 31,174,720
$ 18,686,424
$
$
$
$
$
$
19
623
3,656
92,521
5,653
(320)
121
Statements of Operations
Year Ended October 31, 2010
PowerShares
DWA
Developed Markets
Technical Leaders
Portfolio
PowerShares
DWA
Emerging Markets
Technical Leaders
Portfolio
PowerShares
Dynamic Developed
International
Opportunities
Portfolio
PowerShares
Emerging Markets
Infrastructure
Portfolio
$ 1,535,553
—
(78,526)
$ 1,123,539
—
(108,090)
$ 2,872,046
—
(238,371)
INVESTMENT INCOME:
Dividend income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign withholding tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
622,175
—
(31,721)
590,454
1,457,027
1,015,449
2,633,675
Unitary management fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
284,057
—
735,172
—
308,208
—
1,003,942
—
Total Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unitary management fee waivers. . . . . . . . . . . . . . . . . . . . . . . . .
284,057
—
735,172
—
308,208
—
1,003,942
—
Net Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
284,057
735,172
308,208
1,003,942
Net Investment Income (Loss) . . . . . . . . . . . . . . . . . . . . . . . . .
306,397
721,855
707,241
1,629,733
(1,669,272)
5,964,754
(477,376)
—
(604,451)
6,174,893
(84,498)
—
(1,070,452)
10,730,966
(290,546)
—
585,237
3,818,106
5,485,944
9,369,968
9,625,641
28,019,720
(3,178,097)
18,002,169
EXPENSES:
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) from:
Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In-kind redemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign currency related transactions . . . . . . . . . . . . . . . . . . .
Net increase from payment by affiliate (see Note 3) . . . . . . . .
Net realized gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net change in unrealized appreciation (depreciation) on:
Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Translation of assets and liabilites denominated
in foreign currencies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1,127,249)
1,749,169
(53,378)
16,695
(1,802)
198
651
(364)
Net change in unrealized appreciation (depreciation) . . . . . . . . .
9,623,839
28,019,918
(3,177,446)
18,001,805
Net realized and unrealized gain (loss) on investments . . . . . . . .
10,209,076
31,838,024
2,308,498
27,371,773
Net increase (decrease) in net assets resulting from operations . .
$10,515,473
$32,559,879
$ 3,015,739
$29,001,506
See Notes to Financial Statements.
122
PowerShares
FTSE RAFI
Asia Pacific
ex-Japan
Portfolio
PowerShares
FTSE RAFI
Developed Markets
ex-U.S.
Portfolio
PowerShares
FTSE RAFI
Developed Markets
ex-U.S.
Small-Mid
Portfolio
PowerShares
FTSE RAFI
Emerging Markets
Portfolio
$ 1,297,853
—
(28,247)
$ 4,587,259
—
(415,759)
$ 1,040,316
—
(85,699)
$10,225,087
—
(1,101,418)
1,269,606
4,171,500
954,617
324,540
—
1,139,858
—
324,540
—
PowerShares
FTSE RAFI
Europe
Portfolio
PowerShares
FTSE RAFI
Japan
Portfolio
PowerShares
Global Agriculture
Portfolio
468,705
—
(52,074)
$ 145,848
—
(10,209)
$1,145,421
—
(68,781)
9,123,669
416,631
135,639
1,076,640
314,777
—
2,600,326
—
107,615
—
55,495
—
402,533
1,729
1,139,858
—
314,777
—
2,600,326
—
107,615
—
55,495
—
404,262
—
324,540
1,139,858
314,777
2,600,326
107,615
55,495
404,262
945,066
3,031,642
639,840
6,523,343
309,016
80,144
672,378
(1,409,720)
820,765
(7,245)
—
(550,589)
111,965
1,298
—
(307,196)
2,024,169
(64,892)
—
$
(1,050,248)
4,089,525
(50,842)
—
(7,217,065)
8,480,727
(103,602)
—
(1,205,055)
2,773,241
(28,888)
—
(284,718)
23,746,893
(1,590,563)
—
2,988,435
1,160,060
1,539,298
21,871,612
(596,200)
(437,326)
1,652,081
2,528,849
5,146,950
4,068,574
34,890,989
277,297
867,988
6,532,670
115
21,792
4,739
1,256
2,782
2,356
2,528,964
5,168,742
4,073,313
34,886,193
278,553
870,770
6,535,026
5,517,399
6,328,802
5,612,611
56,757,805
(317,647)
433,444
8,187,107
$ 6,462,465
$ 9,360,444
$ 6,252,451
$63,281,148
(8,631)
$ 513,588
$8,859,485
(4,796)
$
123
Statements of Operations (Continued)
Year Ended October 31, 2010
PowerShares
Global Biotech
Portfolio
PowerShares
Global Clean
Energy
Portfolio
PowerShares
Global Coal
Portfolio
$ 19,358
—
(452)
$ 1,894,936
—
(193,640)
$ 279,405
—
(21,462)
PowerShares
Global Gold and
Precious Metals
Portfolio
INVESTMENT INCOME:
Dividend income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign withholding tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
372,248
—
(16,746)
18,906
1,701,296
257,943
355,502
Unitary management fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26,505
—
1,315,869
—
112,018
—
324,866
—
Total Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unitary management fee waivers. . . . . . . . . . . . . . . . . . . . . . . . .
26,505
—
1,315,869
—
112,018
—
324,866
—
Net Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26,505
1,315,869
112,018
324,866
Net Investment Income (Loss) . . . . . . . . . . . . . . . . . . . . . . . . .
(7,599)
385,427
145,925
30,636
EXPENSES:
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) from:
Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In-kind redemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign currency related transactions . . . . . . . . . . . . . . . . . . .
Net increase from payment by affiliate (see Note 3) . . . . . . . .
(196,915)
57,850
(372)
—
(23,767,796)
10,913,205
(176,872)
—
117,439
1,700,682
(22,507)
—
762,134
1,359,457
(8,870)
—
Net realized gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(139,437)
(13,031,463)
1,795,614
2,112,721
754,904
(8,701,208)
1,484,890
10,635,124
1,580
6
10,635,130
Net change in unrealized appreciation (depreciation) on:
Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Translation of assets and liabilites denominated
in foreign currencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
37
8,153
Net change in unrealized appreciation (depreciation) . . . . . . . . .
754,941
(8,693,055)
1,486,470
Net realized and unrealized gain (loss) on investments . . . . . . . .
615,504
(21,724,518)
3,282,084
12,747,851
Net increase (decrease) in net assets resulting from operations . .
$ 607,905
$(21,339,091)
$3,428,009
$12,778,487
See Notes to Financial Statements.
124
PowerShares
Global Nuclear
Energy
Portfolio
$
622,587
—
(37,128)
PowerShares
Global Progressive
Transportation
Portfolio
PowerShares
Global Steel
Portfolio
PowerShares
Global Water
Portfolio
$105,021
—
(11,354)
$ 182,598
—
(13,054)
$ 6,753,965
—
(484,943)
PowerShares
Global Wind
Energy
Portfolio
$
315,219
—
(34,488)
PowerShares
MENA Frontier
Countries
Portfolio
$
575,059
580
(42,960)
585,459
93,667
169,544
6,269,022
280,731
532,679
267,861
—
38,267
—
71,094
—
2,374,395
—
259,155
—
148,366
—
267,861
—
38,267
—
71,094
—
2,374,395
—
259,155
—
148,366
(39,044)
267,861
38,267
71,094
2,374,395
259,155
109,322
317,598
55,400
98,450
3,894,627
21,576
423,357
(2,482,596)
1,011,959
11,053
—
(23,880)
229,358
(5,099)
—
(351,387)
203,550
(39,386)
—
(6,445,314)
15,578,151
(451,112)
—
(6,306,707)
252,742
(24,884)
—
(3,249,114)
—
(39,057)
—
(1,459,584)
200,379
(187,223)
8,681,725
(6,078,849)
(3,288,171)
4,337,724
501,026
263,783
14,745,596
(8,919,658)
2,693,091
3,333
239
180
30,459
4,341,057
501,265
263,963
14,776,055
(8,914,898)
2,881,473
701,644
76,740
23,457,780
(14,993,747)
(551,964)
$ 3,199,071
$757,044
$ 175,190
$27,352,407
$(14,972,171)
$ (128,607)
4,760
43,116
2,736,207
125
Statements of Changes in Net Assets
PowerShares
DWA Developed
Markets Technical
Leaders
Portfolio
Year Ended
October 31, 2010
PowerShares
DWA Emerging
Markets Technical
Leaders
Portfolio
Year Ended
October 31, 2009
Year Ended
October 31, 2010
Year Ended
October 31, 2009
OPERATIONS:
Net investment income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net change in unrealized appreciation (depreciation) . . . . . . . . . . .
Net increase from payment by affiliate (see Note 3) . . . . . . . . . . . .
$
306,397
568,542
9,623,839
16,695
$
369,519
(4,355,141)
8,835,623
—
$
721,855
3,818,106
28,019,918
—
$
32,559,879
137,178
(3,159,238)
9,552,811
—
Net increase (decrease) in net assets resulting from operations . .
10,515,473
4,850,001
6,530,751
Undistributed net investment income (loss) included in the
price of units issued and redeemed . . . . . . . . . . . . . . . . . . . . . . .
172,338
19,791
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(584,810)
—
(29,790)
—
(204,594)
—
—
—
Total distributions to shareholders . . . . . . . . . . . . . . . . . . . . . . .
(584,810)
(29,790)
(204,594)
—
Proceeds from shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Value of shares repurchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transaction fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income equalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
76,586,786
(11,342,327)
—
(172,338)
11,939,226
(17,876,023)
—
(19,791)
302,090,243
(50,961,803)
—
2,516,092
Net increase (decrease) in net assets resulting
from shares transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
65,072,121
(5,956,588)
253,644,532
9,219,808
Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . . . . . . . .
75,175,122
(1,116,586)
283,483,725
15,664,579
(2,516,092)
(85,980)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
SHAREHOLDER TRANSACTIONS:
16,496,366
(7,362,538)
—
85,980
NET ASSETS:
Beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22,805,198
23,921,784
28,602,676
12,938,097
End of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 97,980,320
$ 22,805,198
$312,086,401
$28,602,676
Undistributed net investment income (loss) at end of year . . . . . . .
$
$
$
$
75,185
272,704
207,155
(675)
CHANGES IN SHARES OUTSTANDING:
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares repurchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares outstanding, beginning of year . . . . . . . . . . . . . . . . . . . . . .
4,000,000
(600,000)
1,300,000
700,000
(1,200,000)
1,800,000
18,750,000
(3,450,000)
2,150,000
1,350,000
(600,000)
1,400,000
Shares outstanding, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . .
4,700,000
1,300,000
17,450,000
2,150,000
(a) 16% of the outstanding shares of the PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio are owned by Invesco Ltd. and/or it’s wholly
owned, indirect subsidiaries.
See Notes to Financial Statements.
126
PowerShares
Dynamic Developed
International
Opportunities
Portfolio
PowerShares
FTSE RAFI
Asia Pacific
ex-Japan
Portfolio
PowerShares
Emerging Markets
Infrastructure
Portfolio
PowerShares
FTSE RAFI
Developed Markets
ex-U.S.
Portfolio
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
October 31, 2010 October 31, 2009 October 31, 2010 October 31, 2009 October 31, 2010 October 31, 2009 October 31, 2010 October 31, 2009
$
707,241
5,485,944
(3,177,446)
—
$ 1,164,389
(21,421,587)
35,474,759
—
3,015,739
15,217,561
$
1,629,733
9,369,968
18,001,805
—
$
547,166
5,133,832
13,089,836
—
29,001,506
18,770,834
69,180
413,673
$
945,066
2,988,435
2,528,964
—
$
6,462,465
(14,335)
715,896
(5,829,555)
15,900,890
—
$
3,031,642
1,160,060
5,168,742
—
$
2,144,407
(16,899,872)
51,567,122
—
10,787,231
9,360,444
36,811,657
132,976
461,378
1,242,272
(147,078)
(1,849)
(1,004,418)
—
(498,523)
—
(1,216,842)
—
(19,286)
—
(1,592,021)
—
(638,687)
—
(3,194,626)
—
(1,911,462)
—
(1,004,418)
(498,523)
(1,216,842)
(19,286)
(1,592,021)
(638,687)
(3,194,626)
(1,911,462)
21,687,304
(50,732,519)
—
147,078
36,356,156
(37,977,062)
—
1,849
57,472,598
(29,345,667)
—
(69,180)
96,430,376
(13,416,142)
—
(413,673)
9,245,486
(8,846,372)
—
14,335
17,355,909
(3,226,396)
—
(132,976)
51,545,839
(13,093,661)
—
(461,378)
45,296,198
—
—
(1,242,272)
(28,898,137)
(1,619,057)
28,057,751
82,600,561
413,449
13,996,537
37,990,800
44,053,926
(27,033,894)
13,098,132
55,911,595
101,765,782
5,269,558
24,278,057
44,617,996
80,196,393
59,514,014
46,415,882
103,786,002
2,020,220
38,690,403
14,412,346
138,705,269
58,508,876
$ 32,480,120
$ 59,514,014
$159,697,597
$103,786,002
$43,959,961
$38,690,403
$183,323,265
$138,705,269
$
$
$
$
$
$
$
$
438,779
529,380
784,991
456,677
(1,686)
66,390
1,350,000
(3,250,000)
3,800,000
2,700,000
(3,000,000)
4,100,000
1,300,000
(700,000)
2,600,000
2,850,000
(350,000)
100,000
200,000
(200,000)
850,000
450,000
(100,000)
500,000
1,900,000
3,800,000
3,200,000
2,600,000
850,000
850,000
1,521,125
1,195,083
1,400,000
(400,000)
3,700,000
1,600,000
—
2,100,000
4,700,000(a)
3,700,000
127
Statements of Changes in Net Assets (Continued)
PowerShares
FTSE RAFI
Developed Markets
ex-U.S.
Small-Mid
Portfolio
PowerShares
FTSE RAFI
Emerging Markets
Portfolio
Year Ended
Year Ended
Year Ended
Year Ended
October 31, 2010 October 31, 2009 October 31, 2010 October 31, 2009
OPERATIONS:
Net investment income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net change in unrealized appreciation (depreciation) . . . . . . . . . . . .
Net increase from payment by affiliate (see Note 3) . . . . . . . . . . . . .
$
639,840
1,539,298
4,073,313
—
Net increase (decrease) in net assets resulting from operations . . .
$
6,252,451
302,204
(3,378,398)
11,296,781
—
$
6,523,343
21,871,612
34,886,193
—
$
1,599,989
(26,035,993)
74,801,671
—
8,220,587
63,281,148
(329,899)
57,796
882,014
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(990,019)
—
(176,533)
—
(1,722,465)
—
(1,670,394)
—
Total distributions to shareholders . . . . . . . . . . . . . . . . . . . . . . . .
(990,019)
(176,533)
(1,722,465)
(1,670,394)
Proceeds from shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Value of shares repurchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transaction fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income equalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25,151,197
(2,137,288)
—
329,899
9,910,408
—
—
(57,796)
266,016,377
(5,446,480)
—
(882,014)
Net increase (decrease) in net assets resulting
from shares transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23,343,808
9,852,612
259,687,883
69,996,476
Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . . . . . . . . .
28,276,341
17,954,462
322,128,580
118,604,755
Beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31,490,000
13,535,538
175,113,470
56,508,715
End of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$59,766,341
$31,490,000
$497,242,050
$175,113,470
Undistributed net investment income (loss) at end of year . . . . . . . .
$
$
$
$
Undistributed net investment income (loss) included in the
price of units issued and redeemed . . . . . . . . . . . . . . . . . . . . . . . .
50,365,667
(86,994)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
SHAREHOLDER TRANSACTIONS:
69,909,482
—
—
86,994
NET ASSETS:
240,190
83,199
3,921,287
698,761
CHANGES IN SHARES OUTSTANDING:
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares repurchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares outstanding, beginning of year . . . . . . . . . . . . . . . . . . . . . . .
1,200,000
(100,000)
1,500,000
500,000
—
1,000,000
11,850,000
(250,000)
8,500,000
4,300,000
—
4,200,000
Shares outstanding, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,600,000
1,500,000
20,100,000(a)
8,500,000
(a) 20% of the outstanding shares of the PowerShares FTSE RAFI Emerging Markets Portfolio are owned by Invesco Ltd. and/or wholly owned,
indirect subsidiaries.
(b) 8% of the outstanding shares of the PowerShares Global Agriculture Portfolio are owned by Invesco Ltd. and/or it’s wholly owned, indirect
subsidiaries.
See Notes to Financial Statements.
128
PowerShares
FTSE RAFI
Europe
Portfolio
PowerShares
FTSE RAFI
Japan
Portfolio
PowerShares
Global Agriculture
Portfolio
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
October 31, 2010 October 31, 2009 October 31, 2010 October 31, 2009 October 31, 2010 October 31, 2009
$
309,016
(596,200)
278,553
—
$
135,671
(1,331,913)
3,277,464
—
$
80,144
(437,326)
870,770
—
$
54,288
(1,282,050)
1,895,790
—
$
672,378
1,652,081
6,535,026
—
$
108,004
(44,024)
2,939,475
—
(8,631)
2,081,222
513,588
668,028
8,859,485
3,003,455
(84,970)
25,437
—
—
178,574
131,790
(109,257)
—
(111,776)
—
(89,622)
—
(88,718)
—
(292,230)
—
(1,844)
—
(109,257)
(111,776)
(89,622)
(88,718)
(292,230)
(1,844)
5,532,468
(6,836,796)
—
84,970
5,212,022
—
—
(25,437)
1,945,552
(1,945,552)
—
—
—
—
—
—
42,039,588
(15,623,429)
—
(178,574)
23,233,651
(3,243,245)
—
(131,790)
(1,219,358)
5,186,585
—
—
26,237,585
19,858,616
(1,422,216)
7,181,468
423,966
579,310
34,983,414
22,992,017
12,381,757
5,200,289
7,135,063
6,555,753
24,652,203
1,660,186
$10,959,541
$12,381,757
$ 7,559,029
$ 7,135,063
$ 59,635,617
$24,652,203
$
$
$
$
$
$
220,861
10,557
64,123
26,772
410,378
93,393
150,000
(200,000)
350,000
150,000
—
200,000
50,000
(50,000)
200,000
—
—
200,000
1,550,000
(650,000)
1,050,000
1,100,000
(150,000)
100,000
300,000
350,000
200,000
200,000
1,950,000(b)
1,050,000
129
Statements of Changes in Net Assets (Continued)
PowerShares
Global Clean
Energy
Portfolio
PowerShares
Global Biotech
Portfolio
Year Ended
Year Ended
Year Ended
Year Ended
October 31, 2010 October 31, 2009 October 31, 2010 October 31, 2009
OPERATIONS:
Net investment income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net change in unrealized appreciation (depreciation) . . . . . . . . . . . .
Net increase from payment by affiliate (see Note 3) . . . . . . . . . . . . .
$
(7,599)
(139,437)
754,941
—
$
(11,081)
(74,575)
(83,352)
—
$
385,427
(13,031,463)
(8,693,055)
—
$
331,962
(75,488,846)
111,775,756
—
Net increase (decrease) in net assets resulting from operations . . .
607,905
(169,008)
(21,339,091)
36,618,872
Undistributed net investment income (loss) included in the
price of units issued and redeemed . . . . . . . . . . . . . . . . . . . . . . . .
—
(4,846)
(39,100)
94,121
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—
—
—
—
(79,514)
—
(325,043)
—
Total distributions to shareholders . . . . . . . . . . . . . . . . . . . . . . . .
—
—
(79,514)
(325,043)
1,215,744
—
—
4,846
29,473,889
(32,242,178)
—
39,100
43,126,239
—
—
(94,121)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Value of shares repurchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transaction fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income equalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,219,231
(1,219,231)
—
—
Net increase (decrease) in net assets resulting
from shares transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—
1,220,590
(2,729,189)
43,032,118
Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . . . . . . . . .
607,905
1,046,736
(24,186,894)
79,420,068
Beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,219,788
2,173,052
185,972,699
106,552,631
End of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 3,827,693
$3,219,788
$161,785,805
$185,972,699
Undistributed net investment income (loss) at end of year . . . . . . . .
$
$
$
$
NET ASSETS:
(175)
—
208,502
79,461
CHANGES IN SHARES OUTSTANDING:
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares repurchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares outstanding, beginning of year . . . . . . . . . . . . . . . . . . . . . . .
50,000
(50,000)
150,000
50,000
—
100,000
1,875,000
(2,250,000)
11,975,000
3,275,000
—
8,700,000
Shares outstanding, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . .
150,000
150,000
11,600,000
11,975,000
(a) 8% of the outstanding shares of the PowerShares Global Gold and Precious Metals Portfolio are owned by Invesco Ltd. and/or it’s wholly owned,
indirect subsidiaries.
See Notes to Financial Statements.
130
PowerShares
Global Gold and
Precious Metals
Portfolio
PowerShares
Global Coal
Portfolio
PowerShares
Global Nuclear
Energy
Portfolio
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
October 31, 2010 October 31, 2009 October 31, 2010 October 31, 2009 October 31, 2010 October 31, 2009
$
145,925
1,795,614
1,486,470
—
$
3,428,009
122,905
(83,220)
3,588,288
—
$
3,627,973
30,636
2,112,721
10,635,130
—
$
9,967
2,236,967
1,883,917
—
$
317,598
(1,459,584)
4,341,057
—
12,778,487
4,130,851
279,533
(20,434)
$
300,551
(11,489,797)
19,121,046
—
3,199,071
7,931,800
15,937
(43,194)
161,236
(170,348)
—
(24,564)
—
(91,512)
(318)
—
—
(982,844)
—
(136,044)
—
(170,348)
(24,564)
(91,830)
—
(982,844)
(136,044)
11,828,940
(6,943,964)
—
(15,937)
7,395,919
(1,285,429)
—
43,194
20,591,451
(2,225,492)
—
(161,236)
33,355,852
(11,816,938)
—
(279,533)
7,708,069
(5,337,150)
—
20,434
3,877,721
(3,361,038)
—
(9,006)
4,869,039
6,153,684
18,204,723
21,259,381
2,391,353
507,677
8,142,637
9,713,899
31,052,616
25,669,765
4,587,146
8,312,439
11,121,353
1,407,454
27,324,694
1,654,929
35,114,337
26,801,898
$19,263,990
$11,121,353
$58,377,310
$ 27,324,694
$39,701,483
$ 35,114,337
$
$
$
$
$
$
60,883
95,743
1,693
53,590
(233,017)
9,006
218,099
400,000
(250,000)
450,000
400,000
(50,000)
100,000
500,000
(50,000)
800,000
1,100,000
(400,000)
100,000
400,000
(300,000)
1,900,000
200,000
(200,000)
1,900,000
600,000
450,000
1,250,000(a)
800,000
2,000,000
1,900,000
131
Statements of Changes in Net Assets (Continued)
PowerShares
Global Progressive
Transportation
Portfolio
PowerShares
Global Steel
Portfolio
Year Ended
Year Ended
Year Ended
Year Ended
October 31, 2010 October 31, 2009 October 31, 2010 October 31, 2009
OPERATIONS:
Net investment income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net change in unrealized appreciation (depreciation) . . . . . . . . . . . .
Net increase from payment by affiliate (see Note 3) . . . . . . . . . . . . .
$
55,400
200,379
501,265
—
$
27,838
(428,710)
1,075,061
—
$
98,450
(187,223)
263,963
—
$
27,024
(126,932)
811,058
—
Net increase (decrease) in net assets resulting from operations . . .
757,044
674,189
175,190
711,150
Undistributed net investment income (loss) included in the
price of units issued and redeemed . . . . . . . . . . . . . . . . . . . . . . . .
2,100
8,740
7,824
9,665
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(52,257)
—
(7,096)
—
(51,106)
—
—
—
Total distributions to shareholders . . . . . . . . . . . . . . . . . . . . . . . .
(52,257)
(7,096)
(51,106)
—
Proceeds from shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Value of shares repurchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transaction fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income equalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4,082,565
(2,681,505)
—
(2,100)
1,225,702
—
—
(8,740)
9,386,921
(7,018,501)
—
(7,824)
Net increase (decrease) in net assets resulting
from shares transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,398,960
1,216,962
2,360,596
845,111
Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . . . . . . . . .
2,105,847
1,892,795
2,492,504
1,565,926
Beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,736,477
1,843,682
2,848,073
1,282,147
End of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 5,842,324
$3,736,477
$ 5,340,577
$2,848,073
Undistributed net investment income (loss) at end of year . . . . . . . .
$
$
$
$
DISTRIBUTIONS TO SHAREHOLDERS FROM:
SHAREHOLDER TRANSACTIONS:
854,776
—
—
(9,665)
NET ASSETS:
22,989
24,945
38,364
27,126
CHANGES IN SHARES OUTSTANDING:
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares repurchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares outstanding, beginning of year . . . . . . . . . . . . . . . . . . . . . . .
150,000
(100,000)
150,000
50,000
—
100,000
450,000
(350,000)
150,000
50,000
—
100,000
Shares outstanding, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . .
200,000
150,000
250,000
150,000
(a) 6% of the outstanding shares of the PowerShares Mena Frontier Countries Portfolio are owned by Invesco Ltd. and/or it’s wholly owned, indirect
subsidiaries.
See Notes to Financial Statements.
132
PowerShares
Global Wind
Energy
Portfolio
PowerShares
Global Water
Portfolio
PowerShares
MENA Frontier
Countries
Portfolio
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
October 31, 2010 October 31, 2009 October 31, 2010 October 31, 2009 October 31, 2010 October 31, 2009
$
3,894,627
8,681,725
14,776,055
—
$
3,742,447
(57,473,438)
125,791,622
—
27,352,407
72,060,631
82,291
345,929
$
21,576
(6,078,849)
(8,914,898)
—
$
(14,972,171)
54,149
(5,462,072)
17,441,751
—
$
12,033,828
423,357
(3,288,171)
2,736,207
—
$
333,037
(13,290,218)
11,107,965
—
(128,607)
(1,849,216)
3,169
(11,817)
86,508
113,403
(4,395,937)
—
(3,282,518)
—
—
—
(87,570)
—
(207,955)
—
—
—
(4,395,937)
(3,282,518)
—
(87,570)
(207,955)
—
87,173,887
(68,398,858)
—
(82,291)
43,292,512
(29,163,750)
—
(345,929)
—
(2,103,779)
—
(3,169)
23,489,402
(5,984,923)
—
11,817
10,841,917
(6,287,017)
85,645
(86,508)
18,692,738
13,782,833
(2,106,948)
17,516,296
4,554,037
(484,758)
41,731,499
82,906,875
(17,075,950)
29,450,737
4,303,983
(2,220,571)
280,423,807
197,516,932
43,558,165
14,107,428
17,252,975
19,473,546
4,065,699
(4,479,781)
42,727
(113,403)
$322,155,306
$280,423,807
$ 26,482,215
$43,558,165
$21,556,958
$ 17,252,975
$
$
$
$
$
$
1,567,883
2,520,305
9
11
320,019
143,674
4,800,000
(3,900,000)
16,350,000
2,850,000
(2,500,000)
16,000,000
—
(200,000)
2,800,000
1,750,000
(350,000)
1,400,000
825,000
(450,000)
1,200,000
300,000
(400,000)
1,300,000
17,250,000
16,350,000
2,600,000
2,800,000
1,575,000(a)
1,200,000
133
Financial Highlights
PowerShares DWA Developed Markets Technical Leaders Portfolio
Year Ended October 31,
2010
2009
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distributions to shareholders from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Return of capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share price at end of period*** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NET ASSET VALUE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . .
SHARE PRICE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000’s omitted) . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratio to average net assets of:
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate †† . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Undistributed net investment income included in price of units
issued and redeemed**# . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 17.54
0.16
3.59
3.75
$ 13.29
0.25
4.02
4.27
$ 24.94
0.42
(11.79)
(11.37)
(0.44)
—
(0.44)
$ 20.85
$ 20.94
21.82%(a)
24.88%
(0.02)
—
(0.02)
$ 17.54
$ 17.18
32.14%
33.97%
(0.10)
(0.18)
(0.28)
$ 13.29
$ 12.84
(46.12)%(b)
(47.93)%(b)
$97,980
$22,805
$23,922
0.80%
0.86%
107%
$
0.09
0.80%
1.75%
135%
$
0.01
PowerShares DWA Emerging Markets Technical Leaders Portfolio
Year Ended October 31,
2010
2009
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distributions to shareholders from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Return of capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share price at end of period*** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NET ASSET VALUE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . .
SHARE PRICE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000’s omitted) . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratio to average net assets of:
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate †† . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Undistributed net investment income (loss) included in price of units
issued and redeemed**# . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
*
**
***
****
†
††
#
(a)
(b)
(c)
For the Period
December 27, 2007*
through
October 31, 2008
$
$
$
0.11
For the Period
December 27, 2007*
through
October 31, 2008
$
(0.10)
—
(0.10)
17.88
17.99
35.43%
37.62%
—
—
—
$ 13.30
$ 13.17
43.94%
39.36%
—
(0.06)
(0.06)
$ 9.24
$ 9.45
(63.04)%(c)
(62.20)%(c)
$28,603
$12,938
0.90%
0.88%
128%
$
$
13.30
0.13
4.55
4.68
$312,086
(0.47)
9.24
0.08
3.98
4.06
0.80%†
2.14%†
205%
0.90%
0.79%
205%
$ (0.05)
$ 25.07
0.39
(16.16)
(15.77)
0.90%†
2.30%†
223%
$ (0.11)
Commencement of Investment Operations.
Based on average shares outstanding.
The mean between the last bid and ask prices.
Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends
and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial
investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at
the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
Annualized.
Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
Amount includes the effect of the Adviser pay-in for an economic loss of $0.01 per share. Had the pay-in not been made, the Net Asset Value Total Return would
have been 21.76%.
The net asset value total return from Fund Inception December 28, 2007 (first day of trading on the exchange) to October 31, 2008 was (46.42)%. The share
price total return from Fund Inception to October 31, 2008 was (48.52)%.
The net asset value total return from Fund Inception December 28, 2007 (first day of trading on the exchange) to October 31, 2008 was (62.96)%. The share
price total return from Fund Inception to October 31, 2008 was (62.39)%.
See Notes to Financial Statements.
134
Financial Highlights (Continued)
PowerShares Dynamic Developed International Opportunities Portfolio
2010
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distributions to shareholders from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Return of capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share price at end of period*** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NET ASSET VALUE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . .
SHARE PRICE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000’s omitted) . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratio to average net assets of:
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate †† . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Undistributed net investment income (loss) included in
price of units issued and redeemed**# . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Year Ended October 31,
2009
2008
For the Period
June 13, 2007*
through
October 31, 2007
$ 15.66
0.27
1.47
1.74
$ 11.32
0.30
4.17
4.47
$ 26.89
0.55
(15.61)
(15.06)
$ 24.84
0.08
2.01
2.09
(0.31)
—
(0.31)
$ 17.09
$ 17.03
11.33%
12.51%
(0.13)
—
(0.13)
$ 15.66
$ 15.44
39.69%
38.34%
(0.42)
(0.09)
(0.51)
$ 11.32
$ 11.27
(56.89)%
(57.81)%
(0.04)
—
(0.04)
$ 26.89
$32,480
$59,514
$46,416
$56,476
0.75%
1.72%
125%
$ (0.06)
0.75%
2.49%
194%
$ (0.00)(a)
0.75%
2.67%
194%
$
0.10
PowerShares Emerging Markets Infrastructure Portfolio
Year Ended October 31,
2010
2009
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distributions to shareholders from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share price at end of period*** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NET ASSET VALUE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SHARE PRICE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
$
$
39.92
0.53
9.87
10.40
(0.41)
49.91
50.04
26.23%
25.98%
$
$
$
8.42%
0.75%†
0.96%†
54%
$
0.06
For the Period
October 15, 2008*
through
October 31, 2008
20.20
0.56
19.26
19.82
$ 22.64
0.06
(2.50)
(2.44)
(0.10)
39.92
40.10
98.46%
99.35%
—
$ 20.20
$ 20.20
(10.78)%(b)
(10.78)%(b)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000’s omitted) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$159,698
$103,786
$ 2,020
Ratio to average net assets of:
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.75%
0.75%
0.75%†
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.22%
1.65%
6.64%†
Portfolio turnover rate †† . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
36%
38%
5%
Undistributed net investment income included in price of units
issued and redeemed**# . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
0.02
$
0.42
$
—
*
Commencement of Investment Operations.
**
Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period,
reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share
price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all
dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment
returns calculated for a period of less than one year are not annualized.
†
Annualized.
††
Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
#
The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a)
Amount represents less than $(0.005).
(b)
The net asset value total return from Fund Inception October 16, 2008 (first day of trading on the exchange) to October 31, 2008 was
(7.55)%. The share price total return from Fund Inception to October 31, 2008 was (17.48)%.
See Notes to Financial Statements.
135
Financial Highlights (Continued)
PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio
2010
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distributions to shareholders from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Return of capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share price at end of period*** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NET ASSET VALUE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . .
SHARE PRICE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . . .
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000’s omitted) . . . . . . . . . . . . . . . . . . . . . . .
Ratio to average net assets of:
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate †† . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Undistributed net investment income (loss) included in
price of units issued and redeemed**# . . . . . . . . . . . . . . . . . . . . . . . .
Year Ended October 31,
2009
2008
$ 45.52
1.08
6.98
8.06
$ 28.82
1.19
16.57
17.76
$ 63.10
1.85
(34.33)
(32.48)
$ 50.11
0.51
12.74
13.25
(1.86)
—
(1.86)
$ 51.72
$ 51.99
18.37%
19.59%
(1.06)
—
(1.06)
$ 45.52
$ 45.28
63.18%
62.64%
(1.65)
(0.15)
(1.80)
$ 28.82
$ 28.76
(52.57)%
(53.68)%
(0.26)
—
(0.26)
$ 63.10
$43,960
$38,690
$14,412
$12,633
0.80%
2.33%
30%
$ (0.02)
0.80%
3.54%
42%
$
0.22
$
0.17
Year Ended October 31,
2010
2009
2008
Net asset value at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distributions to shareholders from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share price at end of period*** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NET ASSET VALUE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . .
SHARE PRICE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . . .
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000’s omitted) . . . . . . . . . . . . . . . . . . . . . . .
Ratio to average net assets of:
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate †† . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Undistributed net investment income included in
price of units issued and redeemed**# . . . . . . . . . . . . . . . . . . . . . . . .
*
**
***
****
†
††
#
$
$
37.49
0.72
1.60
2.32
(0.81)
39.00
39.43
6.37%
8.55%
$183,323
$
$
$
$
0.11
—
For the Period
June 25, 2007*
through
October 31, 2007
$ 53.05
1.32
(25.98)
(24.66)
$ 49.37
0.13
3.56
3.69
(0.59)
37.49
37.13
37.40%
33.43%
(0.53)
$ 27.86
$ 28.41
(46.86)%
(46.22)%
(0.01)
$ 53.05
$58,509
$31,840
0.75%
2.21%
28%
$
$
27.86
0.67
9.55
10.22
$138,705
0.75%
1.99%
21%
0.80%†
2.74%†
1%
0.39
7.48%
0.75%
3.09%
31%
$
0.27
0.75%†
0.85%†
30%
$
0.12
Commencement of Investment Operations.
Based on average shares outstanding.
The mean between the last bid and ask prices.
Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period,
reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share
price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all
dividends and distributions at share price during the period, and sale at the same price on the last day of the period. Total investment
returns calculated for a period of less than one year are not annualized.
Annualized.
Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
See Notes to Financial Statements.
136
$
26.53%
0.80%
3.78%
45%
PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio
PER SHARE OPERATING PERFORMANCE:
For the Period
June 25, 2007*
through
October 31, 2007
Financial Highlights (Continued)
PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio
2010
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distributions to shareholders from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share price at end of period*** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NET ASSET VALUE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . .
SHARE PRICE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . .
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000’s omitted) . . . . . . . . . . . . . . . . . . . . . .
Ratio to average net assets of:
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate †† . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Undistributed net investment income (loss) included in
price of units issued and redeemed**# . . . . . . . . . . . . . . . . . . . . . . .
Year Ended October 31,
2009
2008
$ 20.99
0.32
2.31
2.63
$ 13.54
0.28
7.34
7.62
$ 26.47
0.45
(13.07)
(12.62)
$25.18
0.01
1.28
1.29
(0.63)
$ 22.99
$ 23.27
12.93%
15.40%
(0.17)
$ 20.99
$ 20.79
56.70%
50.21%
(0.31)
$ 13.54
$ 13.99
(48.13)%
(46.71)%
—
$26.47
$59,766
$31,490
$13,536
$5,294
0.75%
1.52%
24%
$ (0.16)
0.75%
1.74%
41%
$
0.05
$
0.11
Year Ended October 31,
2010
2009
2008
Net asset value at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distributions to shareholders from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share price at end of period*** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NET ASSET VALUE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . .
SHARE PRICE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . .
$
$
$
20.60
0.48
3.82
4.30
(0.16)
24.74
25.01
20.94%
22.43%
$
$
$
5.12%
0.75%
2.13%
50%
PowerShares FTSE RAFI Emerging Markets Portfolio
PER SHARE OPERATING PERFORMANCE:
For the Period
September 27, 2007*
through
October 31, 2007
0.75%†
0.36%†
—(a)
$
—
For the Period
September 27, 2007*
through
October 31, 2007
13.45
0.26
7.21
7.47
$ 27.94
0.51
(14.74)
(14.23)
$ 25.55
0.01
2.38
2.39
(0.32)
20.60
20.57
56.48%
55.41%
(0.26)
$ 13.45
$ 13.52
(51.32)%
(51.75)%
—
$ 27.94
9.35%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000’s omitted) . . . . . . . . . . . . . . . . . . . . . .
$497,242
$175,113
$56,509
$27,942
Ratio to average net assets of:
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.85%
0.85%
0.85%
0.85%†
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.13%
1.52%
2.29%
0.56%†
Portfolio turnover rate †† . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
41%
52%
49%
8%
Undistributed net investment income (loss) included in
price of units issued and redeemed**# . . . . . . . . . . . . . . . . . . . . . . .
$
0.06
$ (0.01)
$ (0.06)
$ 0.00(b)
*
Commencement of Investment Operations.
**
Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period,
reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share
price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all
dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment
returns calculated for a period of less than one year are not annualized.
†
Annualized.
††
Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
#
The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a)
Amount represents less than 0.5%.
(b)
Amount represents less than $0.005.
See Notes to Financial Statements.
137
Financial Highlights (Continued)
PowerShares FTSE RAFI Europe Portfolio
2010
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distributions to shareholders from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Return of capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share price at end of period*** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NET ASSET VALUE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . .
SHARE PRICE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . . . .
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000’s omitted) . . . . . . . . . . . . . . . . . . . . . . .
Ratio to average net assets of:
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate †† . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Undistributed net investment income (loss) included in
price of units issued and redeemed**# . . . . . . . . . . . . . . . . . . . . . . . . .
Year Ended October 31,
2009
2008
$ 35.38
0.74
0.70
1.44
$ 26.00
0.60
9.34
9.94
$ 54.24
1.41
(28.23)
(26.82)
$49.50
0.14
4.64
4.78
(0.29)
—
(0.29)
$ 36.53
$ 36.50
4.14%
5.17%
(0.56)
—
(0.56)
$ 35.38
$ 35.01
38.83%
36.58%
(1.40)
(0.02)
(1.42)
$ 26.00
$ 26.15
(50.46)%
(50.43)%
(0.04)
—
(0.04)
$54.24
$10,960
$12,382
$ 5,200
$5,446
0.75%
2.15%
30%
$ (0.20)
0.75%
2.12%
22%
$
0.11
$ 0.12
Year Ended October 31,
2010
2009
2008
Net asset value at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distributions to shareholders from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share price at end of period*** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NET ASSET VALUE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . .
SHARE PRICE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . . . .
RATIOS/SUPPLEMENTAL DATA:
9.67%
0.75%
3.22%
35%
PowerShares FTSE RAFI Japan Portfolio
PER SHARE OPERATING PERFORMANCE:
For the Period
June 25, 2007*
through
October 31, 2007
0.75%†
0.78%†
5%
$
—
For the Period
June 25, 2007*
through
October 31, 2007
$35.68
0.40
2.17
2.57
$32.78
0.27
3.07
3.34
$ 49.65
0.61
(16.82)
(16.21)
$49.65
0.21
(0.21)
0.00
(0.45)
$37.80
$37.51
7.27%
6.38%
(0.44)
$35.68
$35.71
10.26%
10.73%
(0.66)
$ 32.78
$ 32.67
(33.00)%
(34.27)%
—
$49.65
0.00%
Net assets at end of period (000’s omitted) . . . . . . . . . . . . . . . . . . . . . . .
$7,559
$7,135
$ 6,556
$4,975
Ratio to average net assets of:
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.75%
0.75%
0.75%
0.75%†
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.08%
0.81%
1.42%
1.20%†
Portfolio turnover rate †† . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33%
58%
35%
15%
Undistributed net investment income (loss) included in
price of units issued and redeemed**# . . . . . . . . . . . . . . . . . . . . . . . . .
$
—
$
—
$ (0.19)
$ (0.11)
*
Commencement of Investment Operations.
**
Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period,
reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share
price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all
dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment
returns calculated for a period of less than one year are not annualized.
†
Annualized.
††
Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
#
The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
See Notes to Financial Statements.
138
Financial Highlights (Continued)
PowerShares Global Agriculture Portfolio
Year Ended October 31,
2010
2009
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distributions to shareholders from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share price at end of period*** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NET ASSET VALUE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . .
SHARE PRICE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000’s omitted) . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratio to average net assets of:
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate †† . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Undistributed net investment income (loss) included in price of units
issued and redeemed**# . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 23.48
0.33
6.92
7.25
$ 16.60
0.17
6.72
6.89
$ 25.35
—(a)
(8.75)
(8.75)
(0.15)
$ 30.58
$ 30.68
30.99%
32.61%
(0.01)
$ 23.48
$ 23.27
41.53%
39.50%
—
$ 16.60
$ 16.69
(34.52)%(b)
(34.16)%(b)
$59,636
$24,652
$ 1,660
0.75%
1.25%
19%
$
0.09
0.75%
0.79%
33%
$
0.21
PowerShares Global Biotech Portfolio
Year Ended October 31,
2010
2009
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income (loss)** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share price at end of period*** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NET ASSET VALUE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . .
SHARE PRICE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
For the Period
September 16, 2008*
through
October 31, 2008
$21.47
(0.05)
4.10
4.05
$25.52
$25.51
18.86%
17.99%
$21.73
(0.10)
(0.16)
(0.26)
$21.47
$21.62
(1.20)%
(1.14)%
0.75%†
0.13%†
22%
$
—
For the Period
September 16, 2008*
through
October 31, 2008
$ 25.51
(0.02)
(3.76)
(3.78)
$ 21.73
$ 21.87
(14.82)%(c)
(14.27)%(c)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000’s omitted) . . . . . . . . . . . . . . . . . . . . . . . . . .
$3,828
$3,220
$ 2,173
Ratio to average net assets of:
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.75%
0.75%
0.75%†
Net investment income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(0.22)%
(0.49)%
(0.75)%†
Portfolio turnover rate †† . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22%
41%
12%
Undistributed net investment income (loss) included in price of units
issued and redeemed**# . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
—
$ (0.05)
$
—
*
Commencement of Investment Operations.
**
Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period,
reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share
price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all
dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment
returns calculated for a period of less than one year are not annualized.
†
Annualized.
††
Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
#
The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a)
Amount represents less than $0.005.
(b)
The net asset value total return from Fund Inception September 18, 2008 (first day of trading on the exchange) to October 31, 2008 was
(32.63)%. The share price total return from Fund Inception to October 31, 2008 was (33.46)%.
(c)
The net asset value total return from Fund Inception September 18, 2008 (first day of trading on the exchange) to October 31, 2008 was
(12.38)%. The share price total return from Fund Inception to October 31, 2008 was (12.90)%.
See Notes to Financial Statements.
139
Financial Highlights (Continued)
PowerShares Global Clean Energy Portfolio
2010
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distributions to shareholders from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share price at end of period*** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NET ASSET VALUE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . .
SHARE PRICE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000’s omitted) . . . . . . . . . . . . . . . . . . . . . . . . .
Ratio to average net assets of:
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate †† . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Undistributed net investment income (loss) included in
price of units issued and redeemed**# . . . . . . . . . . . . . . . . . . . . . . . . . .
$
$
$
Year Ended October 31,
2009
2008
15.53
0.03
(1.60)
(1.57)
(0.01)
13.95
13.91
(10.14)%
(9.58)%
$161,786
$
$
$
(0.00)(a)
$
(0.03)
15.53
15.39
27.10%
24.13%
$185,973
0.75%
0.22%
39%
$
12.25
0.03
3.28
3.31
$
$
$
0.01
30.95
0.02
(18.72)
(18.70)
$ 25.10
0.03
5.82
5.85
—
12.25
12.43
(60.42)%
(60.16)%
—
$ 30.95
$106,553
0.75%
0.23%
62%
$
0.02
Year Ended October 31,
2010
2009
Net asset value at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distributions to shareholders from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share price at end of period*** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NET ASSET VALUE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . .
SHARE PRICE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RATIOS/SUPPLEMENTAL DATA:
23.31%
$95,963
0.75%
0.09%
62%
PowerShares Global Coal Portfolio
PER SHARE OPERATING PERFORMANCE:
For the Period
June 13, 2007*
through
October 31, 2007
0.75%†
(0.19)%†
4%
$
0.05
For the Period
September 16, 2008*
through
October 31, 2008
$ 24.71
0.27
7.44
7.71
$ 14.07
0.46
10.43
10.89
$ 24.40
0.06
(10.39)
(10.33)
(0.31)
$ 32.11
$ 32.29
31.40%
33.38%
(0.25)
$ 24.71
$ 24.48
79.17%
74.45%
—
$ 14.07
$ 14.31
(42.34)%(b)
(41.35)%(b)
Net assets at end of period (000’s omitted) . . . . . . . . . . . . . . . . . . . . . . . . . .
$19,264
$11,121
$ 1,407
Ratio to average net assets of:
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.75%
0.75%
0.75%†
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.98%
2.30%
2.82%†
Portfolio turnover rate †† . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30%
52%
33%
Undistributed net investment income (loss) included in price of units
issued and redeemed**# . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 0.03
$ (0.16)
$
—
*
Commencement of Investment Operations.
**
Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period,
reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share
price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all
dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment
returns calculated for a period of less than one year are not annualized.
†
Annualized.
††
Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
#
The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a)
Amount represents less than $(0.005).
(b)
The net asset value total return from Fund Inception September 18, 2008 (first day of trading on the exchange) to October 31, 2008 was
(40.43)%. The share price total return from Fund Inception to October 31, 2008 was (38.85)%.
See Notes to Financial Statements.
140
Financial Highlights (Continued)
PowerShares Global Gold and Precious Metals Portfolio
Year Ended October 31,
2010
2009
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income (loss)** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distributions to shareholders from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share price at end of period*** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NET ASSET VALUE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . .
SHARE PRICE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000’s omitted) . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratio to average net assets of:
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate †† . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Undistributed net investment income included in price of units
issued and redeemed**# . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 34.16
0.03
12.60
12.63
$ 16.55
0.02
17.59
17.61
$ 25.17
(0.01)
(8.61)
(8.62)
(0.09)
(0.00)(a)
(0.09)
$ 46.70
$ 46.77
37.05%
36.65%
—
—
—
$ 34.16
$ 34.31
106.41%
104.96%
—
—
—
$ 16.55
$ 16.74
(34.25)%(b)
(33.49)%(b)
$58,377
$27,325
$ 1,655
0.75%
0.07%
27%
$
0.15
0.75%
0.08%
29%
$
0.66
PowerShares Global Nuclear Energy Portfolio
Year Ended October 31,
2010
2009
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distributions to shareholders from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share price at end of period*** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NET ASSET VALUE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . .
SHARE PRICE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
For the Period
September 16, 2008*
through
October 31, 2008
0.75%†
(0.22)%†
18%
$
—
For the Period
April 1, 2008*
through
October 31, 2008
$ 18.48
0.17
1.72
1.89
$ 14.11
0.17
4.28
4.45
$ 24.87
0.07
(10.82)
(10.75)
(0.52)
$ 19.85
$ 19.86
10.46%
11.65%
(0.08)
$ 18.48
$ 18.29
31.67%
29.03%
(0.01)
$ 14.11
$ 14.25
(43.25)%(c)
(42.68)%(c)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000’s omitted) . . . . . . . . . . . . . . . . . . . . . . . . . .
$39,701
$35,114
$26,802
Ratio to average net assets of:
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.75%
0.75%
0.75%†
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.89%
1.03%
0.57%†
Portfolio turnover rate †† . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31%
62%
16%
Undistributed net investment income (loss) included in price of units
issued and redeemed**# . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ (0.01)
$ 0.01
$ 0.01
*
Commencement of Investment Operations.
**
Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period,
reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share
price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all
dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment
returns calculated for a period of less than one year are not annualized.
†
Annualized.
††
Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
#
The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a)
Amount represents less than $(0.005).
(b)
The net asset value total return from Fund Inception September 18, 2008 (first day of trading on the exchange) to October 31, 2008 was
(39.49)%. The share price total return from Fund Inception to October 31, 2008 was (38.93)%.
(c)
The net asset value total return from Fund Inception April 3, 2008 (first day of trading on the exchange) to October 31, 2008 was
(44.95)%. The share price total return from Fund Inception to October 31, 2008 was (45.05)%.
See Notes to Financial Statements.
141
Financial Highlights (Continued)
PowerShares Global Progressive Transportation Portfolio
Year Ended October 31,
2010
2009
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distributions to shareholders from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share price at end of period*** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NET ASSET VALUE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . . .
SHARE PRICE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000’s omitted) . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratio to average net assets of:
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate †† . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Undistributed net investment income included in price of units
issued and redeemed**# . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$24.91
0.29
4.32
4.61
$ 18.44
0.25
6.29
6.54
$ 24.98
0.03
(6.57)
(6.54)
(0.31)
$29.21
$29.18
18.64%
18.65%
(0.07)
$ 24.91
$ 24.88
35.62%
34.58%
—
$ 18.44
$ 18.56
(26.18)%(a)
(25.70)%(a)
$5,842
$ 3,736
$ 1,844
0.75%
1.09%
56%
$ 0.01
0.75%
1.23%
74%
$ 0.08
PowerShares Global Steel Portfolio
Year Ended October 31,
2010
2009
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distributions to shareholders from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share price at end of period*** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NET ASSET VALUE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . . .
SHARE PRICE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000’s omitted) . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratio to average net assets of:
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate †† . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Undistributed net investment income included in price of units
issued and redeemed**# . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
*
**
***
****
For the Period
September 16, 2008*
through
October 31, 2008
0.75%†
1.12%†
28%
$
—
For the Period
September 16, 2008*
through
October 31, 2008
$18.99
0.23
2.25
2.48
$ 12.82
0.23
5.94
6.17
$ 24.58
0.08
(11.84)
(11.76)
(0.11)
$21.36
$21.29
13.09%
12.42%
—
$ 18.99
$ 19.04
48.13%
47.48%
—
$ 12.82
$ 12.91
(47.84)%(b)
(47.48)%(b)
$5,341
$ 2,848
$ 1,282
0.75%
1.04%
46%
$ 0.02
0.75%
1.45%
20%
$ 0.08
0.75%†
4.03%†
280%
$
—
Commencement of Investment Operations.
Based on average shares outstanding.
The mean between the last bid and ask prices.
Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period,
reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share
price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all
dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment
returns calculated for a period of less than one year are not annualized.
†
Annualized.
††
Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
#
The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a)
The net asset value total return from Fund Inception September 18, 2008 (first day of trading on the exchange) to October 31, 2008 was
(24.36)%. The share price total return from Fund Inception to October 31, 2008 was (23.78)%.
(b)
The net asset value total return from Fund Inception September 18, 2008 (first day of trading on the exchange) to October 31, 2008 was
(45.35)%. The share price total return from Fund Inception to October 31, 2008 was (44.30)%.
See Notes to Financial Statements.
142
Financial Highlights (Continued)
PowerShares Global Water Portfolio
2010
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income (loss)** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distributions to shareholders from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share price at end of period*** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NET ASSET VALUE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . .
SHARE PRICE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000’s omitted) . . . . . . . . . . . . . . . . . . . . . . . . .
Ratio to average net assets of:
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate †† . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Undistributed net investment income included in price of units
issued and redeemed**# . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
$
$
Year Ended October 31,
2009
2008
17.15
0.22
1.56
1.78
$
(0.25)
18.68
18.69
10.47%
11.30%
$322,155
$
$
12.34
0.25
4.78
5.03
(0.22)
17.15
17.03
41.25%
42.58%
$280,424
0.75%
1.23%
27%
$
0.00(a)
$
$
$
26.79
0.32
(14.77)
(14.45)
—
12.34
12.14
(53.94)%
(55.10)%
$197,517
0.75%
1.82%
36%
$
0.02
$
0.01
Year Ended October 31,
2010
2009
Net asset value at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income (loss)** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distribution to shareholders from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share price at end of period*** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NET ASSET VALUE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . . .
SHARE PRICE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000’s omitted) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratio to average net assets of:
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate †† . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Undistributed net investment income (loss) included in price of units
issued and redeemed**# . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
*
**
***
****
†
††
#
(a)
(b)
$
$
24.63
(0.03)
2.19
2.16
—
26.79
8.77%
$241,094
0.75%
1.49%
54%
PowerShares Global Wind Energy Portfolio
PER SHARE OPERATING PERFORMANCE:
For the Period
June 13, 2007*
through
October 31, 2007
0.75%†
(0.29)%†
24%
$
0.01
For the Period
June 27, 2008*
through
October 31, 2008
$ 15.56
0.01
(5.38)
(5.37)
$ 10.08
0.02
5.51
5.53
$ 24.44
(0.01)
(14.35)
(14.36)
—
$ 10.19
$ 10.21
(34.51)%
(33.74)%
(0.05)
$ 15.56
$ 15.41
55.02%
48.93%
—
$ 10.08
$ 10.39
(58.76)%(b)
(57.49)%(b)
$26,482
$43,558
$14,107
0.75%
0.06%
41%
$
0.00(a)
0.75%
0.17%
86%
$ (0.01)
0.75%†
(0.19)%†
44%
$ (0.02)
Commencement of Investment Operations.
Based on average shares outstanding.
The mean between the last bid and ask prices.
Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period,
reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share
price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all
dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment
returns calculated for a period of less than one year are not annualized.
Annualized.
Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
Amount represents less than $0.005.
The net asset value total return from Fund Inception July 1, 2008 (first day of trading on the exchange) to October 31, 2008 was
(58.09)%. The share price total return from Fund Inception to October 31, 2008 was (57.28)%.
See Notes to Financial Statements.
143
Financial Highlights (Continued)
PowerShares MENA Frontier Countries Portfolio
Year Ended October 31,
2010
2009
For the Period
July 7, 2008*
through
October 31, 2008
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 14.38
$ 14.98
$ 25.00
Net investment income (loss)** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gain (loss) on investments . . . . . . . . . . . . . . . . . . . .
0.35
(0.90)
0.29
(0.93)
(0.02)
(10.00)
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(0.55)
(0.64)
(10.02)
Distributions to shareholders from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transaction fees** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(0.21)
0.07
—
0.04
Net asset value at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share price at end of period*** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NET ASSET VALUE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . . . .
SHARE PRICE TOTAL RETURN**** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—
—
$ 13.69
$ 14.38
$ 14.98
$ 13.74
(3.26)%
(0.96)%
$ 14.10
(4.00)%
(6.81)%
$ 15.13
(40.08)%(a)
(39.48)%(a)
$21,557
$17,253
$19,474
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000’s omitted) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratio to average net assets of:
Expenses, after waivers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenses, prior to waivers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income (loss), after waivers . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate †† . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Undistributed net investment income (loss) included in price of units
issued and redeemed**# . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
*
**
***
****
†
††
#
(a)
$
0.07
0.70%
0.95%
2.33%
126%
$
0.10
0.70%†
0.95%†
(0.32)%†
70%
$ (0.03)
Commencement of Investment Operations.
Based on average shares outstanding.
The mean between the last bid and ask prices.
Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period,
reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share
price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all
dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment
returns calculated for a period of less than one year are not annualized.
Annualized.
Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
The net asset value total return from Fund Inception July 9, 2008 (first day of trading on the exchange) to October 31, 2008 was
(39.35)%. The share price total return from Fund Inception to October 31, 2008 was (38.25)%.
See Notes to Financial Statements.
144
0.70%
0.95%
2.71%
139%
Notes to Financial Statements
PowerShares Exchange-Traded Fund Trust II
October 31, 2010
Note 1. Organization
PowerShares Exchange-Traded Fund Trust II (the “Trust”) was organized as a Massachusetts business
trust on October 10, 2006 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 October 31, 2010, the Trust offered forty-four portfolios. This report includes the
following portfolios:
Full Name
Short Name
PowerShares DWA Developed MarketsTechnical
Leaders Portfolio
PowerShares DWA Emerging Markets Technical
Leaders Portfolio
PowerShares Dynamic Developed International
Opportunities Portfolio
PowerShares Emerging Markets Infrastructure
Portfolio
PowerShares FTSE RAFI Asia Pacific ex-Japan
Portfolio
PowerShares FTSE RAFI Developed Markets
ex-U.S. Portfolio
PowerShares FTSE RAFI Developed Markets
ex-U.S. Small-Mid Portfolio
PowerShares FTSE RAFI Emerging Markets
Portfolio
PowerShares FTSE RAFI Europe Portfolio
PowerShares FTSE RAFI Japan Portfolio
PowerShares Global Agriculture Portfolio
PowerShares Global Biotech Portfolio
PowerShares Global Clean Energy Portfolio
PowerShares Global Coal Portfolio
PowerShares Global Gold and Precious Metals
Portfolio
PowerShares Global Nuclear Energy Portfolio
PowerShares Global Progressive Transportation
Portfolio
PowerShares Global Steel Portfolio
PowerShares Global Water Portfolio
PowerShares Global Wind Energy Portfolio
PowerShares MENA Frontier Countries Portfolio
“DWA Developed Markets Technical Leaders
Portfolio”
“DWA Emerging Markets Technical Leaders
Portfolio”
“Dynamic Developed International Opportunities
Portfolio”
“Emerging Markets Infrastructure Portfolio”
“FTSE RAFI Asia Pacific ex-Japan Portfolio”
“FTSE RAFI Developed Markets ex-U.S. Portfolio”
“FTSE RAFI Developed Markets ex-U.S.
Small-Mid Portfolio”
“FTSE RAFI Emerging Markets Portfolio”
“FTSE RAFI Europe Portfolio”
“FTSE RAFI Japan Portfolio”
“Global Agriculture Portfolio”
“Global Biotech Portfolio”
“Global Clean Energy Portfolio”
“Global Coal Portfolio”
“Global Gold and Precious Metals Portfolio”
“Global Nuclear Energy Portfolio”
“Global Progressive Transportation Portfolio”
“Global Steel Portfolio”
“Global Water Portfolio”
“Global Wind Energy Portfolio”
“MENA Frontier Countries Portfolio”
145
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust II
October 31, 2010
Each portfolio (the “Fund” and collectively the “Funds”) represents a separate series of the Trust. The
Shares of the Funds are referred to herein as “Shares” or “Fund Shares.” Each Fund’s Shares are listed and
traded on the following exchange:
Fund
Exchange
DWA Developed Markets Technical Leaders Portfolio
DWA Emerging Markets Technical Leaders Portfolio
Dynamic Developed International Opportunities
Portfolio
Emerging Markets Infrastructure Portfolio
FTSE RAFI Asia Pacific ex-Japan Portfolio
FTSE RAFI Developed Markets ex-U.S. Portfolio
FTSE RAFI Developed Markets ex-U.S. Small-Mid
Portfolio
FTSE RAFI Emerging Markets Portfolio
FTSE RAFI Europe Portfolio
FTSE RAFI Japan Portfolio
Global Agriculture Portfolio
Global Biotech Portfolio
Global Clean Energy Portfolio
Global Coal Portfolio
Global Gold and Precious Metals Portfolio
Global Nuclear Energy Portfolio
Global Progressive Transportation Portfolio
Global Steel Portfolio
Global Water Portfolio
Global Wind Energy Portfolio
MENA Frontier Countries Portfolio
NYSE Arca, Inc.
NYSE Arca, Inc.
NYSE Arca, Inc.
NYSE Arca, Inc.
NYSE Arca, Inc.
NYSE Arca, Inc.
NYSE Arca, Inc.
NYSE Arca, Inc.
NYSE Arca, Inc.
NYSE Arca, Inc.
NASDAQ Stock Market
NASDAQ Stock Market
NYSE Arca, Inc.
NASDAQ Stock Market
NASDAQ Stock Market
NYSE Arca, Inc.
NASDAQ Stock Market
NASDAQ Stock Market
NYSE Arca, Inc.
NASDAQ Stock Market
NASDAQ Stock Market
The Funds’ market prices may differ to some degree from the net asset value (“NAV”) of the Shares of
each Fund. Unlike conventional mutual funds, each Fund issues and redeems Shares on a continuous basis,
at NAV, only in a large specified number of Shares, each called a “Creation Unit.” Creation Units of each
Fund are issued and redeemed principally in-kind for securities included in a specified index, except for
MENA Frontier Countries Portfolio, which issues and redeems Creation Units principally for cash and
partially in-kind for securities included in the relevant index. Except when aggregated in Creation Units by
Authorized Participants, Shares are not individually redeemable securities of the Funds.
The investment objective of each Fund is to seek investment results that correspond generally (before fees
and expenses) to the price and yield performance of the following indices (each, an “Underlying Index”):
Fund
Index
DWA Developed Markets Technical Leaders
Portfolio
DWA Emerging Markets Technical Leaders
Portfolio
Dorsey Wright® Developed Markets Technical
Leaders Index
Dorsey Wright® Emerging Markets Technical
Leaders Index
146
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust II
October 31, 2010
Fund
Dynamic Developed International Opportunities
Portfolio
Emerging Markets Infrastructure Portfolio
FTSE RAFI Asia Pacific ex-Japan Portfolio
FTSE RAFI Developed Markets ex-U.S. Portfolio
FTSE RAFI Developed Markets ex-U.S. Small-Mid
Portfolio
FTSE RAFI Emerging Markets Portfolio
FTSE RAFI Europe Portfolio
FTSE RAFI Japan Portfolio
Global Agriculture Portfolio
Global Biotech Portfolio
Global Clean Energy Portfolio
Global Coal Portfolio
Global Gold and Precious Metals Portfolio
Global Nuclear Energy Portfolio
Global Progressive Transportation Portfolio
Global Steel Portfolio
Global Water Portfolio
Global Wind Energy Portfolio
MENA Frontier Countries Portfolio
Index
QSG Developed International Opportunities Index
S-Network Emerging Infrastructure Builders IndexSM
FTSE RAFI Developed Asia Pacific ex Japan Index
FTSE RAFI Developed ex U.S. Index
FTSE RAFI Developed ex U.S. Mid Small 1500 Index
FTSE RAFI Emerging Index
FTSE RAFI Europe Index
FTSE RAFI Japan Index
NASDAQ OMX Global Agriculture IndexSM
NASDAQ OMX Global Biotechnology IndexSM
WilderHill New Energy Global Innovation Index
NASDAQ OMX Global Coal IndexSM
NASDAQ OMX Global Gold and Precious Metals
IndexSM
WNA Nuclear Energy IndexSM
Wilder NASDAQ OMX Global Energy Efficient
Transport IndexSM
NASDAQ OMX Global Steel IndexSM
Palisades Global Water Index
NASDAQ OMX Clean Edge® Global Wind Energy
Index
NASDAQ OMX Middle East North Africa IndexSM
Note 2. Significant Accounting Policies
The preparation of the financial statements in accordance with Generally Accepted Accounting Principles
(“GAAP”) in the United States of America requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements, including estimates and
assumptions related to taxation. Actual results could differ from these estimates. In addition, the Funds
monitor for material events or transactions that may occur or become known after the period-end date
and before the date the financial statements are released to print.
A. Security Valuation
Securities, including restricted securities, are valued according to the following policies.
A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or
official closing price as of the close of the customary trading session on the exchange where the security is
principally traded, or lacking any sales or official closing price on a particular day, the security may be
valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued
based on prices furnished by independent pricing services or market makers. Listed options, if no closing
price is available, are valued at the mean between the last bid and ask prices from the exchange on which
they are principally traded. Options not listed on an exchange are valued by an independent source at the
mean between the last bid and ask prices.
147
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust II
October 31, 2010
Investments in open-end registered investment companies not traded on an exchange are valued at the end
of day NAV per share.
Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated
quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be
determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as
institution-size trading in similar groups of securities, developments related to specific securities, dividend
rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market
data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded
at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In
addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the
applicable exchange rates as of the close of the London world markets. If market quotations are available
and reliable for foreign exchange traded equity securities, the securities will be valued at the market
quotations. Because trading hours for certain foreign securities end before the close of the New York Stock
Exchange (“NYSE”), closing market quotations may become unreliable. If between the time trading ends
on a particular security and the close of the customary trading session on the NYSE, events occur that are
significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely
to have affected the closing price of the security, the security will be valued at fair value in good faith using
procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also
be based on a screening process of an independent pricing service to indicate the degree of certainty, based
on historical data, that the closing price in the principal market where a foreign security trades is not the
current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that
the price is not reflective of current value will be priced at the indication of fair value from the
independent pricing service. Multiple factors may be considered by the independent pricing service in
determining adjustments to reflect fair value and may include information relating to sector indices,
American Depositary Receipts and domestic and foreign index futures. Foreign securities may have
additional risks including exchange rate changes, potential for sharply devalued currencies and high
inflation, political and economical upheaval, the relative lack of issuer information, relatively low market
liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based
upon quotes furnished by independent sources.
Securities for which market quotations are not readily available or are unreliable are valued at fair value
as determined in good faith by or under the supervision of the Trust’s officers following procedures
approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and
information providers and other market data may be reviewed in the course of making a good faith
determination of a security’s fair value.
Valuations change in response to many factors, including the historical and prospective earnings of the
issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and
market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial
statements may materially differ from the value received upon actual sale of those investments.
148
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust II
October 31, 2010
B. Other Risks
Replication Management Risk. Unlike many investment companies, the Funds do not utilize an investing
strategy that seeks returns in excess of each Fund’s respective Index. Therefore, a Fund would not
necessarily sell a security unless that security is removed from its respective Underlying Index.
With respect to each of FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio, FTSE RAFI Emerging
Markets Portfolio and FTSE RAFI Japan Portfolio, each Fund’s use of a representative sampling approach
will result in the Funds holding a smaller number of securities than are in its respective Underlying Indices.
As a result, an adverse development respecting an issuer of securities held by the Funds could result in a
greater decline in net asset values than would be the case if the Funds held all of the securities in its
respective Indices. To the extent the assets in the Funds are smaller, these risks will be greater.
Pursuant to the methodology of the Index Provider used to calculate and maintain the Index of the MENA
Frontier Countries Portfolio, when a security in the Index reaches its limitation on foreign ownership, it
will be removed from the Index that day. As a result, the Fund may be forced to sell securities at
inopportune times or for prices other than at current market values or may elect not to sell such securities
on the day that they are removed from the Index, due to market conditions or otherwise. Due to these
factors, the variation between the Fund’s annual return and the return of its Index may increase
significantly.
Non-Diversified Fund Risk. Each Fund is considered non-diversified (except for FTSE RAFI Developed
Markets ex-U.S. Portfolio) and can invest a greater portion of its assets in securities of individual issuers
than a diversified fund. As a result, changes in the market value of a single investment could cause greater
fluctuations in Share price than would occur in a diversified fund.
Concentration Risk. To the extent a Fund concentrates its investments in an industry or group of
industries, the value of the Fund’s Shares may rise and fall more than the value of shares of a fund that
invests in a broader range of securities.
Non-Correlation Risk. A Fund’s return may not match the return of its Underlying Index for a number of
reasons. For example, each Fund incurs operating expenses not applicable to its Underlying Index, and
incurs costs in buying and selling securities, especially when rebalancing the securities holdings to reflect
changes in the composition of its Underlying Index. In addition, the performance of a Fund and its
Underlying Index may vary due to asset valuation differences and differences between a Fund’s portfolio
and its Underlying Index resulting from legal restrictions, cost or liquidity constraints.
Foreign, Frontier and Emerging Market Securities Risk. Investments in the securities of non-U.S. issuers
involve risks beyond those associated with investments in U.S. securities. These additional risks include
greater market volatility, the availability of, and less reliable, financial information, higher transactional
costs, taxation by foreign governments, decreased market liquidity and political instability. As certain
Funds invest in securities denominated in foreign currencies, changes in currency exchange rates may
negatively impact the Fund’s returns.
Geographic Risk. Funds that are less diversified across geographic regions or countries, are generally
riskier than more diversified funds. The economies and financial markets of certain regions can be
interdependent and may all decline at the same time.
149
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust II
October 31, 2010
Small and Medium Capitalization Company Risk. Investing in securities of small and medium capitalization
companies involves greater risk than is customarily associated with investing in larger, more established
companies. These companies’ securities may be more volatile and less liquid than those of more
established companies. These securities may have returns that vary, sometimes significantly, from the
overall securities market. Often small and medium capitalization companies and the industries in which
they are focused are still evolving and may make them be more sensitive to changing market conditions.
Micro Capitalization Company Risk. 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.
Cash Redemption Risk. With respect to MENA Frontier Countries Portfolio, unlike most exchange-traded
funds (“ETFs”), the Fund currently intends to effect redemptions principally for cash and partially in-kind,
rather than primarily in-kind, because of the nature of the Fund’s investments. As such, investments in the
Fund’s Shares may be less tax efficient than investments in conventional ETFs.
C. Federal Income Taxes
Each Fund intends to comply with the provisions of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of the Fund’s taxable earnings to its shareholders.
As such, the Funds will not be subject to Federal income taxes on otherwise taxable income (including net
realized gains) that is distributed to the shareholders. Therefore, no provision for Federal income taxes is
recorded in the financial statements.
Income and capital gain distributions are determined in accordance with Federal income tax regulations,
which may differ from GAAP. These differences are primarily due to differing book and tax treatments for
in-kind transactions, losses deferred due to wash sales, and Passive Foreign Investment Company
investments.
The Funds file tax returns in the United States Federal jurisdiction and certain other jurisdictions.
Generally, a Fund is subject to examinations by such taxing authorities for up to three years after the filing
of the return for the tax period.
D. Investment Income and Investment Transactions
Dividend income is recorded on the ex-dividend date net of foreign taxes withheld, if any. Interest income
is recorded on the accrual basis. Investment transactions are recorded on the trade date. Realized gains
and losses from the sale or disposition of securities are calculated on the specific identified cost basis.
Dividends and interest received by a Fund may give rise to withholding and other taxes imposed by
foreign countries. Corporate actions (including cash dividends) are recorded net of non-reclaimable
foreign tax withholdings on the ex-dividend date. Tax conventions between certain countries and the
United States may reduce or eliminate such taxes.
E. Expenses
Each Fund has agreed to pay an annual unitary management fee to Invesco PowerShares Capital
Management LLC (the “Adviser”). The Adviser has agreed to pay substantially all expenses of the Funds,
150
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust II
October 31, 2010
including the cost of transfer agency, custody, fund administration, legal, audit and other services, except
for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other
extraordinary expenses.
F. Dividends and Distributions to Shareholders
Each Fund declares and pays dividends from net investment income, if any, to its shareholders quarterly
and records on ex-dividend date, except with respect to Global Agriculture Portfolio, Global Biotech
Portfolio, Global Coal Portfolio, Global Gold and Precious Metals Portfolio, Global Progressive
Transportation Portfolio, Global Steel Portfolio, Global Wind Energy Portfolio and MENA Frontier
Countries Portfolio, which are declared and paid annually. Each Fund distributes net realized taxable
capital gains, if any, generally annually in cash and records them on ex-dividend date. Such distributions
on a tax basis are determined in conformity with income tax regulations which may differ from GAAP.
Distributions in excess of tax basis earnings and profits, if any, are reported in such Fund’s financial
statements as a return of capital at fiscal period-end.
G. Equalization
All of the Funds use the accounting practice of equalization. This accounting method is used to keep the
continuing shareholders’ per share equity in undistributed net investment income from being affected by
the continuous sales and redemptions of capital shares. Equalization is calculated on a per share basis
whereby a portion of the proceeds from the sales and cost of repurchases of capital shares is applied to
undistributed net investment income. The amount of equalization is disclosed in the Statement of Changes
in Net Assets as undistributed net investment income included in the price of capital shares issued or
redeemed. The distributions to shareholders of amounts so applied may be deemed to be a return of capital
for tax purposes to the extent that such distributions exceed taxable income.
H. Foreign Currency Transactions
The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as
investment securities and other assets and liabilities denominated in currencies other than the U.S. dollar,
are translated into U.S. dollars using the applicable exchange rates as of the close of London world
markets. The effects of changes in foreign currency exchange rates on investments in securities are not
segregated in the Statements of Operations from the effects of changes in market prices of those securities,
but are included with the net realized and unrealized gain or loss on investments in securities. Certain
foreign exchange gains and losses included in realized and unrealized gains or losses are included in or are
a reduction of ordinary income in accordance with U.S. Federal income tax regulations.
Note 3. Investment Advisory Agreement and Other Agreements
The Trust has entered into an Investment Advisory Agreement with the Adviser pursuant to which the
Adviser has overall responsibility as the Funds’ investment adviser for the selection and ongoing monitoring
of the Funds’ investments, managing the Funds’ business affairs and providing certain clerical, bookkeeping
and other administrative services. As compensation for its services, each Fund has agreed to pay the
Adviser an annual unitary management fee. The Adviser has agreed to pay substantially all expenses of the
Funds, including the cost of transfer agency, custody, fund administration, legal, audit and other services,
except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses
151
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust II
October 31, 2010
and other extraordinary expenses. The unitary management fee is paid by each Fund to the Adviser at the
following annual rates:
% of Average
Daily Net Assets
DWA Developed Markets Technical Leaders Portfolio . . . . . . . . . . . . . . . . . . . . .
DWA Emerging Markets Technical Leaders Portfolio . . . . . . . . . . . . . . . . . . . . . .
Dynamic Developed International Opportunities Portfolio . . . . . . . . . . . . . . . . . .
Emerging Markets Infrastructure Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FTSE RAFI Asia Pacific ex-Japan Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FTSE RAFI Developed Markets ex-U.S. Portfolio . . . . . . . . . . . . . . . . . . . . . . . . .
FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio . . . . . . . . . . . . . . . .
FTSE RAFI Emerging Markets Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FTSE RAFI Europe Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FTSE RAFI Japan Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Agriculture Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Biotech Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Clean Energy Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Coal Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Gold and Precious Metals Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Nuclear Energy Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Progressive Transportation Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Steel Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Water Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Wind Energy Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MENA Frontier Countries Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.80%
0.90%
0.75%
0.75%
0.80%
0.75%
0.75%
0.85%
0.75%
0.75%
0.75%
0.75%
0.75%
0.75%
0.75%
0.75%
0.75%
0.75%
0.75%
0.75%
0.95%*
* The Adviser has voluntarily agreed to waive a portion of its unitary management fee until April 20, 2011. After giving effect to
such waiver, the Fund’s net unitary management fee is 0.70% of average daily net assets of the Fund. The fee waiver may be
modified or terminated by the Adviser at its discretion after April 20, 2011.
For the year ended October 31, 2010, the Adviser has reimbursed the DWA Developed Markets Technical
Leaders Portfolio for an economic loss of $16,695.
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 Shares.
The Adviser has entered into licensing agreements for each Fund with the following Licensors:
Fund
Licensor
DWA Developed Markets Technical Leaders Portfolio
DWA Emerging Markets Technical Leaders Portfolio
Dynamic Developed International Opportunities Portfolio
Emerging Markets Infrastructure Portfolio
FTSE RAFI Asia Pacific ex-Japan Portfolio
FTSE RAFI Developed Markets ex-U.S. Portfolio
FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio
Dorsey Wright & Associates, Inc.
Dorsey Wright & Associates, Inc.
Quantitative Services Group, LLC
S-Network Global Indexes, LLC
FTSE International Ltd.
FTSE International Ltd.
FTSE International Ltd.
152
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust II
October 31, 2010
Fund
Licensor
FTSE RAFI Emerging Markets Portfolio
FTSE RAFI Europe Portfolio
FTSE RAFI Japan Portfolio
Global Agriculture Portfolio
Global Biotech Portfolio
Global Clean Energy Portfolio
Global Coal Portfolio
Global Gold and Precious Metals Portfolio
Global Nuclear Energy Portfolio
Global Progressive Transportation Portfolio
Global Steel Portfolio
Global Water Portfolio
Global Wind Energy Portfolio
MENA Frontier Countries Portfolio
FTSE International Ltd.
FTSE International Ltd.
FTSE International Ltd.
The NASDAQ OMX Group, Inc.
The NASDAQ OMX Group, Inc.
WilderHill New Energy Finance, LLC
The NASDAQ OMX Group, Inc.
The NASDAQ OMX Group, Inc.
WNA GLOBAL INDEXES, LLC
The NASDAQ OMX Group, Inc.
The NASDAQ OMX Group, Inc.
Water Index Associates, LLC
The NASDAQ OMX Group, Inc.
The NASDAQ OMX Group, Inc.
Each Underlying Index name trademark is owned by the respective Licensor. These trademarks have been
licensed to the Adviser for use with the Funds. The Funds are not sponsored, endorsed, sold or promoted
by the Licensors and the Licensors make no representation regarding the advisability of investing in any of
these Funds. The Trust has entered into a sub-licensing agreement under which each Fund may track its
respective Index.
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
accounting and transfer agent for each Fund.
Note 4. Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date, under current market
conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the
highest priority to readily available unadjusted quoted prices in an active market for identical assets
(Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices
are not readily available or are unreliable. Based on the valuation inputs, the securities or other
investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or
out of an investment’s assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs
that other market participants may use in pricing a security. These may include quoted prices for
similar securities, interest rates, prepayment speeds, credit risk and others.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices
or observable inputs are unavailable (for example, when there is little or no market activity for an
investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the
Fund’s own assumptions about the factors market participants would use in determining fair value of
the securities or instruments and would be based on the best available information.
153
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust II
October 31, 2010
The following is a summary of the tiered valuation input levels, as of the end of the reporting period,
October 31, 2010. The level assigned to the securities valuations may not be an indication of the risk or
liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation,
the values reflected in the financial statements may materially differ from the value received upon actual
sale of those investments.
Level 1
Investment in Securities
Level 2
Level 3
Total
DWA Developed Markets Technical Leaders Portfolio
Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . . $ 97,952,656 $
—
$ 0
$ 97,952,656
DWA Emerging Markets Technical Leaders Portfolio
Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . .
Money Market Fund . . . . . . . . . . . . . . . . . . . . . . .
312,037,682
163,803
—
—
—
—
312,037,682
163,803
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
312,201,485
—
—
312,201,485
Dynamic Developed International Opportunities
Portfolio
Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . .
32,445,887
449
0
32,446,336
Emerging Markets Infrastructure Portfolio
Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . .
Money Market Fund . . . . . . . . . . . . . . . . . . . . . . .
158,095,646
182,367
1,321,465
—
—
—
159,417,111
182,367
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
158,278,013
1,321,465
—
159,599,478
FTSE RAFI Asia Pacific ex-Japan Portfolio
Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . .
Money Market Fund . . . . . . . . . . . . . . . . . . . . . . .
43,943,268
64,215
3,624
—
0
—
43,946,892
64,215
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
44,007,483
3,624
0
44,011,107
FTSE RAFI Developed Markets ex-U.S. Portfolio
Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . .
183,257,430
3,343
0
183,260,773
FTSE RAFI Developed Markets ex-U.S. Small-Mid
Portfolio
Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . .
Money Market . . . . . . . . . . . . . . . . . . . . . . . . . . . .
59,551,834
15,381
75,524
—
0
—
59,627,358
15,381
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
59,567,215
75,524
0
59,642,739
FTSE RAFI Emerging Markets Portfolio
Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . .
Money Market . . . . . . . . . . . . . . . . . . . . . . . . . . . .
496,610,020
710,963
2,522
—
—
—
496,612,542
710,963
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
497,320,983
2,522
—
497,323,505
FTSE RAFI Europe Portfolio
Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . .
10,944,757
158
0
10,944,915
154
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust II
October 31, 2010
Level 1
FTSE RAFI Japan Portfolio
Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . . $
Investment in Securities
Level 2
Level 3
7,545,722 $
—
$—
Total
$
7,545,722
Global Agriculture Portfolio
Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . .
Money Market Fund . . . . . . . . . . . . . . . . . . . . . . .
59,625,496
2,397
—
—
—
—
59,625,496
2,397
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
59,627,893
—
—
59,627,893
Global Biotech Portfolio
Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . .
Money Market Fund . . . . . . . . . . . . . . . . . . . . . . .
3,819,900
10,202
—
—
—
—
3,819,900
10,202
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,830,102
—
—
3,830,102
Global Clean Energy Portfolio
Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . .
161,723,778
—
—
161,723,778
Global Coal Portfolio
Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . .
19,296,739
—
—
19,296,739
Global Gold and Precious Metals Portfolio
Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . .
Money Market Fund . . . . . . . . . . . . . . . . . . . . . . .
58,371,044
38,535
—
—
—
—
58,371,044
38,535
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
58,409,579
—
—
58,409,579
Global Nuclear Energy Portfolio
Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . .
39,672,886
—
—
39,672,886
Global Progressive Transportation Portfolio
Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . .
Money Market Fund . . . . . . . . . . . . . . . . . . . . . . .
5,835,838
5,093
—
—
—
—
5,835,838
5,093
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5,840,931
—
—
5,840,931
Global Steel Portfolio
Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . .
5,336,996
—
—
5,336,996
Global Water Portfolio
Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . .
322,153,937
—
—
322,153,937
Global Wind Energy Portfolio
Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . .
Money Market Fund . . . . . . . . . . . . . . . . . . . . . . .
26,457,927
19,150
—
—
—
—
26,457,927
19,150
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26,477,077
—
—
26,477,077
155
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust II
October 31, 2010
Investment in Securities
Level 2
Level 3
Level 1
MENA Frontier Countries Portfolio
Corporate Debt Securities . . . . . . . . . . . . . . . . . . . $
8,775 $
Equity Securities . . . . . . . . . . . . . . . . . . . . . . . . . .
21,515,816
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21,524,591
—
—
$—
—
—
—
Total
$
8,775
21,515,816
21,524,591
Note 5. Distributions to Shareholders and Tax Components of Net Assets
Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended October 31, 2010 and 2009:
DWA Developed Markets Technical Leaders
Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DWA Emerging Markets Technical Leaders
Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dynamic Developed International
Opportunities Portfolio . . . . . . . . . . . . . . . . . .
Emerging Markets Infrastructure Portfolio . . . .
FTSE RAFI Asia Pacific ex-Japan Portfolio . . . .
FTSE RAFI Developed Markets ex-U.S.
Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FTSE RAFI Developed Markets ex-U.S.
Small-Mid Portfolio . . . . . . . . . . . . . . . . . . . .
FTSE RAFI Emerging Markets Portfolio . . . . . .
FTSE RAFI Europe Portfolio . . . . . . . . . . . . . .
FTSE RAFI Japan Portfolio . . . . . . . . . . . . . . . .
Global Agriculture Portfolio . . . . . . . . . . . . . . .
Global Biotech Portfolio . . . . . . . . . . . . . . . . . .
Global Clean Energy Portfolio . . . . . . . . . . . . .
Global Coal Portfolio . . . . . . . . . . . . . . . . . . . .
Global Gold and Precious Metals Portfolio . . . .
Global Nuclear Energy Portfolio . . . . . . . . . . . .
Global Progressive Transportation Portfolio . . .
Global Steel Portfolio . . . . . . . . . . . . . . . . . . . .
Global Water Portfolio . . . . . . . . . . . . . . . . . . .
Global Wind Energy Portfolio . . . . . . . . . . . . .
MENA Frontier Countries Portfolio . . . . . . . . .
156
Ordinary
Income
2010
Long-term
Capital
Gains
2009
Return of
Capital
$ 584,810
$ —
$—
204,594
—
1,004,418
1,216,842
1,592,021
Ordinary
Income
$
Return of
Capital
29,790
$—
—
—
—
—
—
—
—
—
—
498,523
19,286
638,687
—
—
—
3,194,626
—
—
1,911,462
—
990,019
1,722,465
109,257
89,622
292,230
—
79,514
170,348
91,512
982,844
52,257
51,106
4,395,937
—
207,955
—
—
—
—
—
—
—
—
318
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
176,533
1,670,394
111,776
88,718
1,844
—
325,043
24,564
—
136,044
7,096
—
3,282,518
87,570
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust II
October 31, 2010
Tax Components of Net Assets at Fiscal Year-End:
Undistributed
Undistributed
Long-Term
Ordinary Income Capital Gains
DWA Developed
Markets Technical
Leaders Portfolio . $ 193,951
DWA Emerging
Markets Technical
Leaders Portfolio .
726,984
Dynamic
Developed
International
Opportunities
Portfolio . . . . . .
538,731
Emerging Markets
Infrastructure
Portfolio . . . . . . 1,160,672
FTSE RAFI Asia
Pacific ex-Japan
Portfolio . . . . . .
334,584
FTSE RAFI
Developed
Markets ex-U.S.
Portfolio . . . . . . 2,009,027
FTSE RAFI
Developed
Markets ex-U.S.
Small-Mid
Portfolio . . . . . .
837,270
FTSE RAFI
Emerging
Markets
Portfolio . . . . . . 4,526,944
FTSE RAFI Europe
Portfolio . . . . . .
230,307
FTSE RAFI Japan
Portfolio . . . . . .
80,430
Global Agriculture
Portfolio . . . . . .
411,686
Global Biotech
Portfolio . . . . . .
—
Global Clean
Energy Portfolio .
208,502
Global Coal
Portfolio . . . . . .
78,117
$
Net
Unrealized
Appreciation
(Depreciation)
Capital Loss
Carryforward
Shares of
Beneficial
Interest
Total Net
Assets
— $ 12,126,001 $ (25,007,822)$110,668,190 $ 97,980,320
—
30,016,765
—
3,286,568
—
29,275,278
—
5,662,962
—
10,314,370
—
4,260,400
—
55,549,429
—
(1,245,939)
(2,649,655)
14,624,828
10,959,541
—
(29,583)
(2,231,079)
9,739,261
7,559,029
51,091,399
59,635,617
3,799,246
3,827,693
16,009
8,116,523
—
221,899
—
119,472
(21,222,113) 302,564,765 312,086,401
(44,418,094)
73,072,915
32,480,120
(78,015) 129,339,662 159,697,597
(5,677,536)
43,639,951
43,959,961
(16,104,727) 187,104,595 183,323,265
(4,412,784)
59,081,455
59,766,341
(18,736,234) 455,901,911 497,242,050
—
(193,452)
(21,672,410) (122,439,599) 305,689,312 161,785,805
3,706,451
—
15,359,950
19,263,990
157
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust II
October 31, 2010
Undistributed
Undistributed
Long-Term
Ordinary Income Capital Gains
Global Gold and
Precious Metals
Portfolio . . . . . . $1,193,699
Global Nuclear
Energy Portfolio .
718,534
Global Progressive
Transportation
Portfolio . . . . . .
22,986
Global Steel
Portfolio . . . . . .
47,442
Global Water
Portfolio . . . . . . 1,567,883
Global Wind
Energy Portfolio .
—
MENA Frontier
Countries
Portfolio . . . . . .
320,019
Net
Unrealized
Appreciation
(Depreciation)
Capital Loss
Carryforward
$858,891 $ 10,231,611 $
—
(4,032,358)
Shares of
Beneficial
Interest
Total Net
Assets
— $ 46,093,109 $ 58,377,310
(10,958,137)
53,973,444
39,701,483
—
885,034
(406,719)
5,341,023
5,842,324
—
64,183
(505,727)
5,734,679
5,340,577
—
(2,883,740) (109,328,128) 432,799,291 322,155,306
—
(7,266,847)
(13,382,018)
47,131,080
26,482,215
—
(1,201,262)
(15,821,787)
38,259,988
21,556,958
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other
activity after that date may affect the amount of capital loss carryforward actually available for the Funds
to utilize. The ability to utilize capital loss carryforward in the future may be limited under Internal
Revenue Code rules and related regulations based on the results of future transactions.
The following Funds had capital loss carryforward amounts as of October 31, 2010, which expire on
October 31 of each year listed below:
2015
2016
2017
2018
Total*
DWA Developed Markets Technical
Leaders Portfolio . . . . . . . . . . . . . $
— $17,174,329 $ 6,761,697 $ 1,071,796 $ 25,007,822
DWA Emerging Markets Technical
Leaders Portfolio . . . . . . . . . . . . .
— 15,429,745
5,190,203
602,165
21,222,113
Dynamic Developed International
Opportunities Portfolio . . . . . . . .
47,847 23,676,544 19,713,557
980,146
44,418,094
Emerging Markets Infrastructure
Portfolio . . . . . . . . . . . . . . . . . . .
—
—
—
78,015
78,015
FTSE RAFI Asia Pacific ex-Japan
Portfolio . . . . . . . . . . . . . . . . . . .
—
566,386
4,187,699
923,451
5,677,536
FTSE RAFI Developed Markets
ex-U.S. Portfolio . . . . . . . . . . . . .
54,729
2,040,934
8,801,477
5,207,587
16,104,727
FTSE RAFI Developed Markets
ex-U.S. Small-Mid Portfolio . . . . .
2,199
1,081,645
2,633,165
695,775
4,412,784
FTSE RAFI Emerging Markets
Portfolio . . . . . . . . . . . . . . . . . . .
5,426
6,580,140 11,700,199
450,469
18,736,234
158
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust II
October 31, 2010
2015
2016
2017
2018
Total*
FTSE RAFI Europe Portfolio . . . . . $ 13,972 $ 254,951 $ 963,830 $ 1,416,902 $ 2,649,655
FTSE RAFI Japan Portfolio . . . . . .
53,958
362,861
1,263,965
550,295
2,231,079
Global Agriculture Portfolio** . . .
—
—
—
—
—
Global Biotech Portfolio . . . . . . . .
—
941
7,208
185,303
193,452
Global Clean Energy Portfolio . . . . . 155,633 34,356,421 65,130,758 22,796,787 122,439,599
Global Coal Portfolio** . . . . . . . .
—
—
—
—
—
Global Gold and Precious Metals
Portfolio . . . . . . . . . . . . . . . . . . .
—
—
—
—
—
Global Nuclear Energy Portfolio . .
—
519,741
7,430,576
3,007,820
10,958,137
Global Progressive Transportation
Portfolio . . . . . . . . . . . . . . . . . . .
—
18,830
380,124
7,765
406,719
Global Steel Portfolio . . . . . . . . . . .
—
156,658
58,943
290,126
505,727
Global Water Portfolio . . . . . . . . . 589,102 64,839,461 41,990,185
1,909,380 109,328,128
Global Wind Energy Portfolio . . . .
—
1,187,533
3,588,287
8,606,198
13,382,018
MENA Frontier Countries Portfolio .
—
2,297,569
9,819,468
3,704,750
15,821,787
* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal
Revenue Code.
** During the year ended October 31, 2010, the Global Agriculture and Global Coal Portfolios utilized capital loss carryforwards
of $88,938 and $105,346, respectively, to offset realized gains.
Note 6. Investment Transactions
For the fiscal year ended October 31, 2010, the cost of securities purchased and proceeds from sales of
securities, excluding short-term securities, money market funds and in-kind transactions, were as follows:
Purchases
DWA Developed Markets Technical Leaders Portfolio . . . . . . . . . . . . .
DWA Emerging Markets Technical Leaders Portfolio . . . . . . . . . . . . . .
Dynamic Developed International Opportunities Portfolio . . . . . . . . . .
Emerging Markets Infrastructure Portfolio . . . . . . . . . . . . . . . . . . . . . .
FTSE RAFI Asia Pacific ex-Japan Portfolio . . . . . . . . . . . . . . . . . . . . . .
FTSE RAFI Developed Markets ex-U.S. Portfolio . . . . . . . . . . . . . . . . .
FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio . . . . . . . .
FTSE RAFI Emerging Markets Portfolio . . . . . . . . . . . . . . . . . . . . . . . .
FTSE RAFI Europe Portfolio. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FTSE RAFI Japan Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Agriculture Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Biotech Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Clean Energy Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Coal Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Gold and Precious Metals Portfolio . . . . . . . . . . . . . . . . . . . . . .
Global Nuclear Energy Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Progressive Transportation Portfolio . . . . . . . . . . . . . . . . . . . . .
Global Steel Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Water Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Wind Energy Portfolio. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MENA Frontier Countries Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sales
$ 39,556,081 $ 39,415,562
180,119,895 110,376,086
51,267,079
52,011,235
68,511,442
47,909,330
19,850,702
12,181,649
31,664,613
31,507,871
11,243,469
10,088,135
242,490,223 125,843,837
4,272,740
4,079,341
2,428,708
2,412,203
15,042,867
9,744,462
789,342
761,542
72,889,601
67,827,933
4,754,005
4,464,752
11,669,916
11,493,304
10,854,445
11,338,028
3,091,563
2,792,234
4,554,069
4,072,467
90,379,056
85,245,031
14,345,782
14,120,388
26,829,465
21,932,924
159
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust II
October 31, 2010
For the fiscal year ended October 31, 2010, in-kind transactions associated with creations and
redemptions were as follows:
DWA Developed Markets Technical Leaders Portfolio . . . . . . . . . . . . .
DWA Emerging Markets Technical Leaders Portfolio . . . . . . . . . . . . . .
Dynamic Developed International Opportunities Portfolio . . . . . . . . . .
Emerging Markets Infrastructure Portfolio . . . . . . . . . . . . . . . . . . . . . .
FTSE RAFI Asia Pacific ex-Japan Portfolio . . . . . . . . . . . . . . . . . . . . . .
FTSE RAFI Developed Markets ex-U.S. Portfolio . . . . . . . . . . . . . . . . .
FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio . . . . . . . .
FTSE RAFI Emerging Markets Portfolio . . . . . . . . . . . . . . . . . . . . . . . .
FTSE RAFI Europe Portfolio. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FTSE RAFI Japan Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Agriculture Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Biotech Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Clean Energy Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Coal Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Gold and Precious Metals Portfolio . . . . . . . . . . . . . . . . . . . . . .
Global Nuclear Energy Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Progressive Transportation Portfolio . . . . . . . . . . . . . . . . . . . . .
Global Steel Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Water Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Wind Energy Portfolio. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MENA Frontier Countries Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . .
Securities
Received
Securities
Delivered
$ 77,201,644
225,284,182
22,195,484
45,576,522
6,729,318
60,585,666
28,201,203
246,739,239
5,516,335
311,705
34,781,635
168,508
24,655,609
8,710,085
21,637,896
7,380,490
1,686,359
6,814,219
79,784,591
—
—
$12,343,433
44,007,726
50,567,632
35,168,197
14,504,825
22,371,837
6,817,254
99,890,493
6,823,858
305,070
13,050,532
191,814
32,349,101
4,051,263
3,529,207
5,138,219
585,825
4,920,670
66,696,607
2,073,118
—
Gains on in-kind transactions are generally not considered taxable gains for Federal income tax purposes.
At October 31, 2010, the aggregate cost and the net unrealized appreciation (depreciation) of investments
for tax purposes were as follows:
Cost
Net Unrealized
Appreciation
(Depreciation)
Gross
Unrealized
Appreciation
Gross
Unrealized
(Depreciation)
DWA Developed Markets Technical
Leaders Portfolio . . . . . . . . . . . . . . . . . $ 85,826,607 $ 12,126,049 $12,706,596 $ (580,547)
DWA Emerging Markets Technical
Leaders Portfolio . . . . . . . . . . . . . . . . . 282,184,687
30,016,798 32,017,585
(2,000,787)
Dynamic Developed International
Opportunities Portfolio . . . . . . . . . . . .
29,164,060
3,282,276
3,974,237
(691,961)
Emerging Markets Infrastructure
Portfolio . . . . . . . . . . . . . . . . . . . . . . . . 130,324,608
29,274,870 31,813,441
(2,538,571)
FTSE RAFI Asia Pacific ex-Japan
Portfolio . . . . . . . . . . . . . . . . . . . . . . . .
38,348,280
5,662,827
7,043,412
(1,380,585)
FTSE RAFI Developed Markets ex-U.S.
Portfolio . . . . . . . . . . . . . . . . . . . . . . . . 172,971,003
10,289,770 21,675,448
(11,385,678)
160
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust II
October 31, 2010
Cost
Net Unrealized
Appreciation
(Depreciation)
Gross
Unrealized
Appreciation
Gross
Unrealized
(Depreciation)
FTSE RAFI Developed Markets ex-U.S.
Small-Mid Portfolio . . . . . . . . . . . . . . . $ 55,387,628 $ 4,255,111 $ 7,565,679 $ (3,310,568)
FTSE RAFI Emerging Markets Portfolio . 441,770,397
55,553,108 61,910,863
(6,357,755)
FTSE RAFI Europe Portfolio . . . . . . . . .
12,192,293
(1,247,378)
610,985
(1,858,363)
FTSE RAFI Japan Portfolio . . . . . . . . . .
7,577,876
(32,154)
749,547
(781,701)
Global Agriculture Portfolio . . . . . . . . . .
51,514,338
8,113,555
9,948,104
(1,834,549)
Global Biotech Portfolio . . . . . . . . . . . . .
3,608,203
221,899
449,055
(227,156)
Global Clean Energy Portfolio . . . . . . . . 183,407,496
(21,683,718) 20,980,779
(42,664,497)
Global Coal Portfolio . . . . . . . . . . . . . . .
15,590,418
3,706,321
3,813,253
(106,932)
Global Gold and Precious Metals
Portfolio . . . . . . . . . . . . . . . . . . . . . . . .
48,177,968
10,231,611 10,637,164
(405,553)
Global Nuclear Energy Portfolio . . . . . .
43,709,612
(4,036,726)
2,626,101
(6,662,827)
Global Progressive Transportation
Portfolio . . . . . . . . . . . . . . . . . . . . . . . .
4,956,143
884,788
1,161,002
(276,214)
Global Steel Portfolio . . . . . . . . . . . . . . .
5,273,056
63,940
539,149
(475,209)
Global Water Portfolio . . . . . . . . . . . . . . 325,076,129
(2,922,192) 23,274,558
(26,196,750)
Global Wind Energy Portfolio . . . . . . . .
33,745,467
(7,268,390)
2,184,774
(9,453,164)
MENA Frontier Countries Portfolio . . . .
22,768,993
(1,244,402)
1,429,544
(2,673,946)
Note 7. Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of investment activity, on October 31, 2010, amounts
were reclassified between undistributed net investment income (loss), undistributed net realized gain (loss)
and shares of beneficial interest. These reclassifications had no effect on the net assets of each Fund. For
the fiscal year ended October 31, 2010, the reclassifications were as follows:
Undistributed
Net Investment
Income (Loss)
Undistributed
Net Realized
Gain (Loss)
Shares of
Beneficial
Interest
DWA Developed MarketsTechnical Leaders Portfolio . . . . . $ (91,444) $ (1,784,894) $ 1,876,338
DWA Emerging Markets Technical Leaders Portfolio . . . . .
2,206,661
(5,266,486)
3,059,825
Dynamic Developed International Opportunities Portfolio .
353,654
(5,403,790)
5,050,136
Emerging Markets Infrastructure Portfolio . . . . . . . . . . . . .
(153,757) (10,472,329) 10,626,086
FTSE RAFI Asia Pacific ex-Japan Portfolio . . . . . . . . . . . . .
593,214
(3,560,857)
2,967,643
FTSE RAFI Developed Markets ex-U.S. Portfolio . . . . . . . .
27,648
(6,358,721)
6,331,073
FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio .
837,069
(2,621,460)
1,784,391
FTSE RAFI Emerging Markets Portfolio . . . . . . . . . . . . . . . (2,460,366) (17,030,820) 19,491,186
FTSE RAFI Europe Portfolio . . . . . . . . . . . . . . . . . . . . . . . .
95,515
(578,502)
482,987
FTSE RAFI Japan Portfolio . . . . . . . . . . . . . . . . . . . . . . . . .
46,829
(115,063)
68,234
Global Agriculture Portfolio . . . . . . . . . . . . . . . . . . . . . . . .
(241,737)
(1,415,110)
1,656,847
Global Biotech Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . .
7,424
(56,465)
49,041
Global Clean Energy Portfolio . . . . . . . . . . . . . . . . . . . . . . .
(137,772)
(5,183,256)
5,321,028
Global Coal Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(26,374)
(1,583,657)
1,610,031
Global Gold and Precious Metals Portfolio . . . . . . . . . . . . .
(152,257)
(1,319,144)
1,471,401
161
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust II
October 31, 2010
Undistributed
Net Investment
Income (Loss)
Undistributed
Net Realized
Gain (Loss)
Shares of
Beneficial
Interest
Global Nuclear Energy Portfolio . . . . . . . . . . . . . . . . . . . . . $ 234,564 $ (1,064,253) $ 829,689
Global Progressive Transportation Portfolio . . . . . . . . . . . .
(7,199)
(211,339)
218,538
Global Steel Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(43,930)
(57,356)
101,286
Global Water Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(533,403) (11,580,779) 12,114,182
Global Wind Energy Portfolio . . . . . . . . . . . . . . . . . . . . . . .
(24,747)
33,425
(8,678)
MENA Frontier Countries Portfolio . . . . . . . . . . . . . . . . . .
(125,565)
39,057
86,508
Note 8. Trustees’ Fees
The Funds compensate each Trustee who is not an employee of the Adviser or its affiliates. The Adviser, as
a result of the unitary management fee, pays such compensation. The “Interested” Trustees of the Trust do
not receive any Trustees’ fees.
The Trust has adopted a deferred compensation plan (the “Plan”). Under the Plan, a Trustee who is not an
“interested person” (as defined in the 1940 Act) (an “Independent Trustee”) and has executed a Deferred
Fee Agreement (a “Participating Trustee”) may defer receipt of all or a portion of his compensation
(“Deferral Fees”). Such Deferral Fees are deemed to be invested in selected PowerShares Funds. The
Deferral Fees payable to the Participating Trustee are valued as of the date such Deferral Fees would have
been paid to the Participating Trustee. The value increases with contributions or with increases in the
value of the Shares selected, and the value decreases with distributions or with declines in the value of the
Shares selected.
Note 9. Capital
Shares are created and redeemed by the Trust only in Creation Unit size aggregations of 50,000 Shares
(100,000 Shares for DWA Developed Markets Technical Leaders Portfolio, FTSE RAFI Developed
Markets ex-U.S. Small-Mid Portfolio and FTSE RAFI Developed Markets ex-U.S. Portfolio and 75,000
Shares for Global Clean Energy Portfolio and MENA Frontier Countries Portfolio). Only Authorized
Participants are permitted to purchase or redeem Creation Units from the Funds. Except for MENA
Countries Frontier Portfolio, such transactions are generally permitted on an in-kind basis, with a
balancing cash component to equate the transaction to the NAV per Share of each Fund on the transaction
date. Cash may be substituted equivalent to the value of certain securities generally when they are not
available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a
result of other market circumstances.
MENA Frontier Countries Portfolio (the “Fund”) currently intends to effect redemptions partially and
partially in-kind, rather than primarily in-kind redemptions, because of the nature of the Fund’s
investments. The Fund may be required to sell portfolio securities in order to obtain the cash needed to
distribute redemption proceeds. The Fund may recognize a capital gain on these sales that might not have
been incurred if the Fund had made a redemption entirely in-kind, which may decrease the tax efficiency
of the Fund compared to ETFs that utilize an entirely in-kind redemption process.
MENA Frontier Countries Portfolio may charge transaction fees for creations and redemptions which are
treated as increases in capital.
162
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust II
October 31, 2010
Note 10. Indemnifications
Under the Trust’s organizational documents, its officers and Trustees are indemnified against certain
liabilities arising out of the performance of their duties to the Trust. Each Independent Trustee is also
indemnified against certain liabilities arising out of the performance of his duties to the Trust pursuant to
an Indemnification Agreement between the Independent Trustee and the Trust. Additionally, in the normal
course of business, the Trust enters into contracts with service providers that contain general
indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown, as this
would involve future claims that may be made against the Trust that have not yet occurred. However,
based on experience, the Trust believes the risk of loss to be remote.
Note 11. Subsequent Event
On October 5, 2010, the PowerShares Board of Trustees approved the liquidation of the PowerShares
FTSE RAFI Europe Portfolio, PowerShares FTSE RAFI Japan Portfolio, PowerShares Global Biotech
Portfolio and the PowerShares Global Progressive Transportation Portfolio, which occurred on
December 21, 2010.
163
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of PowerShares Exchange-Traded Fund Trust II:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of
investments, and the related statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of each of the portfolios indicated in
Note 1 of the financial statements (each a portfolio of PowerShares Exchange-Traded Fund Trust II,
hereafter referred to as the “Trust”) at October 31, 2010, and the results of each of their operations, the
changes in each of their net assets, and the financial highlights for each of the periods presented, in
conformity with accounting principles generally accepted in the United States of America. These financial
statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility
of the Trust’s management; our responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these financial statements in accordance with the standards of
the Public Company Accounting Oversight Board (United States). Those standards require that we plan
and perform the audits to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at October 31, 2010 by correspondence with the
custodian and brokers, provide a reasonable basis for our opinion.
As disclosed in Note 11 to the financial statements, on October 5, 2010, the PowerShares Board of
Trustees approved the liquidation of the PowerShares FTSE RAFI Europe Portfolio, PowerShares FTSE
RAFI Japan Portfolio, PowerShares Global Biotech Portfolio and the PowerShares Global Progressive
Transportation Portfolio, which occurred on December 21, 2010.
/s/ PricewaterhouseCoopers LLP
New York, New York
December 23, 2010
164
Tax Information
Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual
calendar year amounts that should be included in their tax returns. Shareholders should consult their
tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to
meet a specific state’s requirement.
Each Fund designates the following amounts or, if subsequently determined to be different, the maximum
amount allowable for its fiscal year ended October 31, 2010:
Federal Income Tax Information
Qualified dividend Dividends received Long term
income*
deduction*
capital gain
DWA Developed MarketsTechnical Leaders Portfolio . . . . . .
DWA Emerging Markets Technical Leaders Portfolio . . . . . .
Dynamic Developed International Opportunities Portfolio . .
Emerging Markets Infrastructure Portfolio . . . . . . . . . . . . . .
FTSE RAFI Asia Pacific ex-Japan Portfolio . . . . . . . . . . . . . .
FTSE RAFI Developed Markets ex-U.S. Portfolio . . . . . . . . .
FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio . .
FTSE RAFI Emerging Markets Portfolio . . . . . . . . . . . . . . . .
FTSE RAFI Europe Portfolio . . . . . . . . . . . . . . . . . . . . . . . . .
FTSE RAFI Japan Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Agriculture Portfolio . . . . . . . . . . . . . . . . . . . . . . . . .
Global Biotech Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Clean Energy Portfolio . . . . . . . . . . . . . . . . . . . . . . . .
Global Coal Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Gold and Precious Metals Portfolio . . . . . . . . . . . . . .
Global Nuclear Energy Portfolio . . . . . . . . . . . . . . . . . . . . . .
Global Progressive Transportation Portfolio . . . . . . . . . . . . .
Global Steel Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Water Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Wind Energy Portfolio . . . . . . . . . . . . . . . . . . . . . . . .
MENA Frontier Countries Portfolio . . . . . . . . . . . . . . . . . . .
91%
94%
94%
78%
61%
87%
45%
84%
100%
91%
100%
0%
100%
86%
100%
49%
92%
100%
100%
0%
92%
0%
0%
0%
5%
0%
0%
0%
0%
0%
0%
11%
0%
93%
6%
11%
15%
11%
0%
6%
0%
0%
$ —
—
—
—
—
—
—
—
—
—
—
—
—
—
318
—
—
—
—
—
—
* The above percentages are based on ordinary income dividends paid to shareholders during the
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
DWA Developed MarketsTechnical Leaders Portfolio . . . . . . . . . . . . . .
DWA Emerging Markets Technical Leaders Portfolio . . . . . . . . . . . . . . .
Dynamic Developed International Opportunities Portfolio . . . . . . . . . .
Emerging Markets Infrastructure Portfolio . . . . . . . . . . . . . . . . . . . . . .
FTSE RAFI Asia Pacific ex-Japan Portfolio . . . . . . . . . . . . . . . . . . . . . .
$
—
—
1,123,490
2,664,607
—
Foreign Taxes
Paid
$
—
—
106,361
233,779
—
165
Tax Information (Continued)
Federal Income Tax Information (Continued)
FTSE RAFI Developed Markets ex-U.S. Portfolio . . . . . . . . . . . . . . . . .
FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio . . . . . . . . .
FTSE RAFI Emerging Markets Portfolio . . . . . . . . . . . . . . . . . . . . . . . .
FTSE RAFI Europe Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FTSE RAFI Japan Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Agriculture Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Biotech Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Clean Energy Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Coal Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Gold and Precious Metals Portfolio . . . . . . . . . . . . . . . . . . . . . .
Global Nuclear Energy Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Progressive Transportation Portfolio . . . . . . . . . . . . . . . . . . . . .
Global Steel Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Water Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Wind Energy Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MENA Frontier Countries Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . .
166
Gross Foreign
Income
Foreign Taxes
Paid
$ 4,587,172
1,040,195
10,225,189
468,699
145,842
820,306
—
—
252,036
—
—
89,802
162,188
—
—
—
$ 393,910
80,905
1,101,315
48,249
10,209
67,452
—
—
21,158
—
—
11,352
12,898
—
—
—
Trustees and Officers
The Independent Trustees, the Trustees who are affiliated with the Adviser (the “Interested Trustees”) and
the executive officers of the Trust, their term of office and length of time served, their principal business
occupations during at least the past five years, the number of portfolios in the Fund Complex overseen by
each Trustee and the other directorships, if any, held by a Trustee, are shown below.
The Trustees and officers information is current as of October 31, 2010.
Name, Address, and Age of
Independent Trustees
Position(s) Held
with Trust
Ronn R. Bagge
(52)
YQA Capital
Management, LLC
1755 S. Naperville Rd.
Suite 100
Wheaton, IL 60187
Trustee
Term of
Office
and
Length of Principal
Time
Occupation(s) During
Served* Past 5 Years
Since
2007
Number of
Portfolios
in Fund
Complex**
Overseen by
Independent
Trustees
Founder and
112
Principal, YQA
Capital Management
LLC (1998-Present);
formerly Owner/CEO
of Electronic Dynamic
Balancing Co., Inc.
(high-speed rotating
equipment service
provider)
Other Directorships Held
by Independent Trustees
None
* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At October 31, 2010, the
Fund Complex consisted of the Trust’s 44 portfolios and three other exchange-traded fund trusts with 68 portfolios advised
by the Adviser.
167
Trustees and Officers (Continued)
Name, Address, and Age of
Independent Trustees
Todd J. Barre
(53)
c/o Invesco PowerShares
Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187
Position(s) Held
with Trust
Trustee
Term of
Office
and
Length of Principal
Time
Occupation(s) During
Served* Past 5 Years
Since
2010
Number of
Portfolios
in Fund
Complex**
Overseen by
Independent
Trustees
Assistant Professor of 112
Business, Trinity
Christian College
(2010-Present);
formerly Vice
President and Senior
Investment Strategist
(2001-2008), Director
of Open Architecture
and Trading (20072008), Head of
Fundamental
Research (2004-2007)
and Vice President
and Senior Fixed
Income Strategist
(1994-2001), BMO
Financial
Group/Harris Private
Bank
Other Directorships Held
by Independent Trustees
None
* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At October 31, 2010, the
Fund Complex consisted of the Trust’s 44 portfolios and three other exchange-traded fund trusts with 68 portfolios advised
by the Adviser.
168
Trustees and Officers (Continued)
Name, Address, and Age of
Independent Trustees
Position(s) Held
with Trust
Term of
Office
and
Length of Principal
Time
Occupation(s) During
Served* Past 5 Years
Number of
Portfolios
in Fund
Complex**
Overseen by
Independent
Trustees
Other Directorships Held
by Independent Trustees
Marc M. Kole
(50)
c/o Invesco PowerShares
Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187
Trustee
Since
2007
Chief Financial Officer, 112
Hope Network (social
services) (2008Present); formerly
Assistant Vice
President and
Controller, Priority
Health (health
insurance) (20052008); Senior Vice
President of Finance,
United Healthcare
(2004-2005); Senior
Vice President of
Finance, Oxford
Health Plans (20002004)
None
Philip M. Nussbaum
(49)
c/o Invesco PowerShares
Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187
Trustee
Since
2007
Chairman,
112
Performance Trust
Capital Partners
(formerly Betzold,
Berg, Nussbaum &
Heitman, Inc.) (2004Present); formerly
Managing Director,
Communication
Institute (2002-2003);
Executive Vice
President of Finance,
Betzold, Berg,
Nussbaum &
Heitman, Inc. (19941999)
None
* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At October 31, 2010, the
Fund Complex consisted of the Trust’s 44 portfolios and three other exchange-traded fund trusts with 68 portfolios advised
by the Adviser.
169
Trustees and Officers (Continued)
Name, Address, and Age of
Independent Trustees
Donald H. Wilson
(51)
c/o Invesco PowerShares
Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187
Position(s) Held
with Trust
Trustee
Term of
Office
and
Length of Principal
Time
Occupation(s) During
Served* Past 5 Years
Since
2007
Chairman and Chief
Executive Officer,
Stone Pillar Advisers,
Ltd. (2010-Present);
formerly Chief
Operating Officer,
AMCORE Financial,
Inc. (bank holding
company) (20072009); Executive Vice
President and Chief
Financial Officer,
AMCORE Financial,
Inc. (2006-2007);
Senior Vice President
and Treasurer,
Marshall & Ilsley
Corp. (bank holding
company) (19952006)
Number of
Portfolios
in Fund
Complex**
Overseen by
Independent
Trustees
Other Directorships Held
by Independent Trustees
112
None
* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At October 31, 2010, the
Fund Complex consisted of the Trust’s 44 portfolios and three other exchange-traded fund trusts with 68 portfolios advised
by the Adviser.
170
Trustees and Officers (Continued)
Name, Address, and Age of
Interested Trustees
Position(s) Held
with Trust
H. Bruce Bond
Chairman
(47)
of the
Invesco PowerShares
Board and
Trustee
Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187
Term of
Office
and
Length of Principal
Time
Occupation(s) During
Served* Past 5 Years
Since
2006
Number of
Portfolios
in Fund
Complex**
Overseen by
Interested
Trustees
Chairman, Invesco
112
PowerShares Capital
Management LLC
(2009-Present);
formerly Managing
Director, Invesco
PowerShares Capital
Management LLC
(2002-2009); Manager,
Nuveen Investments
(1998-2002)
Other Directorships Held
by Interested Trustees
None
* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At October 31, 2010, the
Fund Complex consists of the Trust’s 44 portfolios and three other exchange-traded fund trusts with 68 portfolios advised by
the Adviser.
171
Trustees and Officers (Continued)
Name, Address, and Age of
Interested Trustees
Kevin M. Carome
(53)
Invesco Ltd.
Two Peachtree
Pointe 1555
Peachtree St., N.E.
Suite 1800
Atlanta, GA 30309
Position(s) Held
with Trust
Trustee
Term of
Office
and
Length of Principal
Time
Occupation(s) During
Served* Past 5 Years
Since
2010
Number of
Portfolios
in Fund
Complex**
Overseen by
Interested
Trustees
Senior Managing
112
Director and General
Counsel, Invesco Ltd.
(2006-Present);
formerly Senior Vice
President and General
Counsel, Invesco
Advisors, Inc. (20032005); 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
Other Directorships Held
by Interested Trustees
None
* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At October 31, 2010, the
Fund Complex consisted of the Trust’s 44 portfolios and three other exchange-traded fund trusts with 68 portfolios advised
by the Adviser.
172
Trustees and Officers (Continued)
Name, Address, and Age of
Executive Officer
Position(s) Held
with Trust
Length of
Time
Served*
Principal Occupation(s) During Past 5 Years
Andrew Schlossberg
(36)
Invesco Management
Group, Inc.
11 Greenway Plaza
Suite 100
Houston, TX 77046
President
Since
2009
Managing Director, U.S. head of business strategy
and chief marketing officer for Invesco Ltd. In the
United States (2008-Present); formerly
Mr. Schlossberg served in multiple roles within
Invesco, including head of corporate development, as
well as global leadership roles in strategy and product
development in the company’s North American
Institutional and Retirement divisions (2002-2007)
Bruce T. Duncan
(56)
Invesco PowerShares
Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187
Treasurer
and
Secretary
Treasurer
since
2007
and
Secretary
since
2008
Senior Vice President of Finance, Invesco
PowerShares Capital Management LLC (2005Present); formerly Private Practice Attorney (20002005); Vice President of Investor Relations, The
ServiceMaster Company (1994-2000); Vice President
of Taxes, The ServiceMaster Company (1990-2000)
Benjamin Fulton
(48)
Invesco PowerShares
Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187
Vice
President
Since
2009
Executive Vice President – Global Product
Development, Invesco PowerShares Capital
Management LLC (2005-Present); formerly principal
of Clermont Consulting, a consulting firm focused on
the creation and development of retail investment
products (2003-2005); President and a founding
partner of Claymore Securities, a financial services
firm in the Chicagoland area (2001-2003); Managing
Director of Structured Investments at Nuveen
Investments (1998-2001)
Peter Hubbard
(29)
Invesco PowerShares
Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187
Vice
President
Since
2009
Vice President and Director of Portfolio Management –
Invesco PowerShares Capital Management LLC
(2008- Present); formerly Portfolio Manager, Invesco
PowerShares Capital Management LLC (2007-2008);
Research Analyst, Invesco PowerShares Capital
Management LLC (2005-2007); Research Analyst
and Trader, Ritchie Capital, a hedge fund operator
(2003-2005)
* This is the date the Officer began serving the Trust. Each Officer serves an indefinite term, until his successor is elected.
173
Trustees and Officers (Continued)
Name, Address, and Age of
Executive Officer
David Warren
(52)
Invesco Trimark Ltd.
5140 Yonge Street
Suite 900
Toronto,
Ontario M2N 6X7
Todd Spillane
(51)
Invesco Management
Group, Inc.
11 Greenway Plaza
Suite 100
Houston, TX 77046
Position(s) Held
with Trust
Vice
President
Length of
Time
Served*
Principal Occupation(s) During Past 5 Years
Since
2009
Director, Executive Vice President and Chief Financial
Officer, Invesco Trimark Ltd. and Chief
Administrative Officer, North American Retail,
Invesco Ltd. (2007-Present); formerly Director,
Executive Vice President and Chief Financial Officer,
Invesco Trimark Ltd. (2000-2006)
Chief
Since
Compliance 2010
Officer
Senior Vice President, Invesco Management Group,
Inc.; Chief Compliance Officer, INVESCO Private
Capital Investments, Inc. (holding company), Invesco
Private Capital, Inc. (registered investment adviser)
and Invesco Senior Secured Management, Inc.
(registered investment adviser); Chief Compliance
Officer and Senior Vice President, Invesco Advisers,
Inc. (formerly Invesco Institutional (N.A.), Inc. –
registered investment adviser) and Vice President,
Invesco Distributors, Inc. and Invesco Investment
Services, Inc.; formerly Chief Compliance Officer,
Invesco Global Asset Management (N.A.), Inc. –
(registered investment adviser) and Invesco Advisers,
Inc. (formerly Invesco Institutional (N.A.), Inc.)
(registered investment adviser); Senior Vice President
and Chief Compliance Officer, Invesco Advisors, Inc.,
Invesco Capital Management, Inc. and Invesco
Private Asset Management, Inc.; Vice President,
Invesco Capital Management, Inc. and Fund
Management Company
Availability of Additional Information About the Trustees
The Statement of Additional Information includes additional information about the Trustees and is
available, without charge, upon request at (800) 983-0903.
* This is the date the Officer began serving the Trust. Each Officer serves an indefinite term, until his successor is elected.
174
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PROXY VOTING POLICIES AND PROCEDURES
A description of the Funds’ proxy voting policies and procedures that the Funds use to determine how to
vote proxies relating to portfolio securities is available, without charge and upon request, by calling
(800) 983-0903. This information is also available on the Securities and Exchange Commission’s
(“Commission”) website at www.sec.gov.
Information regarding how the Funds voted proxies for portfolio securities, if applicable, during the most
recent 12-month period ended June 30, is also available, without charge and upon request, by (i) calling
(800) 983-0903; or (ii) accessing the Trust’s Form N-PX on the Commission’s website at www.sec.gov.
QUARTERLY PORTFOLIOS
The Funds file their complete schedules of portfolio holdings with the Commission for the first and third
quarters of each fiscal year on Form N-Q. The Trust’s Form N-Qs are available on the Commission’s
website at www.sec.gov. The Trust’s Form N-Qs may also be reviewed and copied at the Commission’s
Public Reference Room in Washington, DC; information on the operation of the Public Reference
Room may be obtained by calling (800) SEC-0330.
301 West Roosevelt Road
Wheaton, IL 60187
800.983.0903
www.invescopowershares.com
© 2010 Invesco PowerShares Capital Management LLC
P-PS-AR-8