N-CSRS 1 d268988dncsrs.htm N-CSRS N-CSRS

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number            811-21265                    

                         PowerShares Exchange-Traded Fund Trust                        

(Exact name of registrant as specified in charter)

3500 Lacey Road

                                     Downers Grove, IL 60515                                    

(Address of principal executive offices) (Zip code)

Daniel E. Draper

President

3500 Lacey Road

                                     Downers Grove, IL 60515                                    

(Name and address of agent for service)

Registrant’s telephone number, including area code: 800-983-0903

Date of fiscal year end:  April 30

Date of reporting period:  October 31, 2016

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

The Registrant’s semi-annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows:

LOGO

 

     October 31, 2016

2016 Semi-Annual Report to Shareholders

 

DWAQ    PowerShares DWA NASDAQ Momentum Portfolio
PWC    PowerShares Dynamic Market Portfolio
PRF    PowerShares FTSE RAFI US 1000 Portfolio
PRFZ    PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

 

Table of Contents

 

Broad Market Portfolios   
Schedules of Investments   

PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)

      3   

PowerShares Dynamic Market Portfolio (PWC)

      5   

PowerShares FTSE RAFI US 1000 Portfolio (PRF)

      7   

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)

      18   
Statements of Assets and Liabilities      33   
Statements of Operations      34   
Statements of Changes in Net Assets      36   
Financial Highlights      38   
Notes to Financial Statements      40   
Fees and Expenses      48   

 

 

   2  

 

 

PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Information Technology      32.6   
Health Care      21.9   
Consumer Discretionary      20.7   
Financials      11.2   
Industrials      7.3   
Energy      2.1   
Consumer Staples      1.8   
Materials      1.6   
Real Estate      0.8   
Money Market Fund Plus Other Assets Less Liabilities      (0.0)   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests—100.0%    
   Consumer Discretionary—20.7%   
  868       Amazon.com, Inc.(b)    $ 685,564   
  1,522       Charter Communications, Inc., Class A(b)      380,332   
  4,714       China Lodging Group Ltd. ADR (China)      202,749   
  3,084       Dorman Products, Inc.(b)      198,116   
  33,747       Groupon, Inc., Class A(b)      134,650   
  2,435       Jack in the Box, Inc.      228,232   
  5,450       Liberty Ventures, Series A(b)      217,455   
  5,724       LKQ Corp.(b)      184,771   
  7,391       Nutrisystem, Inc.      234,295   
  2,298       O’Reilly Automotive, Inc.(b)      607,683   
  10,993       Papa John’s International, Inc.      829,422   
  2,070       Pool Corp.      191,641   
  720       Priceline Group, Inc. (The)(b)      1,061,446   
  10,816       Ross Stores, Inc.      676,433   
  8,331       Smith & Wesson Holding Corp.(b)      220,188   
  5,332       Texas Roadhouse, Inc.      216,053   
  877       Ulta Salon, Cosmetics & Fragrance,
Inc.(b)		      213,409   
  5,262       Universal Electronics, Inc.(b)      369,129   
     

 

 

  
        6,851,568   
     

 

 

  
   Consumer Staples—1.8%   
  1,955       J & J Snack Foods Corp.      238,804   
  1,277       Monster Beverage Corp.(b)      184,322   
  26,145       SunOpta, Inc. (Canada)(b)      173,864   
     

 

 

  
        596,990   
     

 

 

  
   Energy—2.1%   
  3,639       Diamondback Energy, Inc.(b)      332,204   
  9,592       Golar LNG Partners LP (United Kingdom)      197,212   
  2,892       PDC Energy, Inc.(b)      177,366   
     

 

 

  
        706,782   
     

 

 

  
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials—11.2%   
  5,422       Ameris Bancorp    $ 196,819   
  11,868       Arch Capital Group Ltd. (Bermuda)(b)      925,348   
  5,662       Eagle Bancorp, Inc.(b)      278,287   
  36,025       EZCORP, Inc., Class A(b)      351,244   
  7,331       First Merchants Corp.      206,368   
  15,696       Grupo Financiero Galicia SA, Class B ADR (Argentina)      488,773   
  8,909       Home BancShares, Inc.      191,632   
  5,380       MarketAxess Holdings, Inc.      811,089   
  4,761       Pinnacle Financial Partners, Inc.      245,668   
     

 

 

  
        3,695,228   
     

 

 

  
   Health Care—21.9%   
  5,688       ABIOMED, Inc.(b)      597,183   
  6,982       Accelerate Diagnostics, Inc.(b)      148,367   
  3,381       Align Technology, Inc.(b)      290,495   
  1,792       Atrion Corp.      786,957   
  7,028       Clovis Oncology, Inc.(b)      204,374   
  8,544       DexCom, Inc.(b)      668,483   
  20,858       Exact Sciences Corp.(b)      324,968   
  58,111       Exelixis, Inc.(b)      615,395   
  6,045       Henry Schein, Inc.(b)      901,914   
  2,853       ICON PLC(b)      229,039   
  5,117       IDEXX Laboratories, Inc.(b)      548,235   
  2,109       Integra LifeSciences Holdings
Corp.(b)		      167,687   
  13,850       Lexicon Pharmaceuticals, Inc.(b)      205,395   
  3,690       Masimo Corp.(b)      202,950   
  5,451       Natus Medical, Inc.(b)      214,497   
  9,452       Nektar Therapeutics, Class A(b)      117,205   
  3,155       Neogen Corp.(b)      166,237   
  4,544       NuVasive, Inc.(b)      271,413   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   3  

 

 

PowerShares DWA NASDAQ Momentum Portfolio (DWAQ) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Health Care (continued)   
  7,537       Spectranetics Corp. (The)(b)    $ 163,553   
  2,295       TESARO, Inc.(b)      277,420   
  2,722       VCA, Inc.(b)      167,294   
     

 

 

  
        7,269,061   
     

 

 

  
   Industrials—7.3%   
  6,860       AAON, Inc.      205,457   
  4,755       American Woodmark Corp.(b)      355,198   
  5,707       Chart Industries, Inc.(b)      158,312   
  1,642       Cintas Corp.      175,152   
  6,085       Gibraltar Industries, Inc.(b)      236,707   
  4,773       Middleby Corp. (The)(b)      535,101   
  3,990       Multi-Color Corp.      259,051   
  11,544       SkyWest, Inc.      348,052   
  1,781       Universal Forest Products, Inc.      153,148   
     

 

 

  
        2,426,178   
     

 

 

  
   Information Technology—32.6%   
  4,773       Activision Blizzard, Inc.      206,050   
  1,746       Adobe Systems, Inc.(b)      187,712   
  4,487       Advanced Energy Industries, Inc.(b)      214,030   
  20,399       Amkor Technology, Inc.(b)      189,099   
  3,334       Broadcom Ltd. (Singapore)      567,713   
  3,905       BroadSoft, Inc.(b)      162,253   
  9,517       Cadence Design Systems, Inc.(b)      243,445   
  1,941       Cimpress NV (Netherlands)(b)      161,588   
  5,368       Cirrus Logic, Inc.(b)      289,765   
  1,670       Coherent, Inc.(b)      173,880   
  1,173       CoStar Group, Inc.(b)      219,492   
  9,415       Ebix, Inc.      527,240   
  6,118       Electronic Arts, Inc.(b)      480,385   
  3,962       Electronics for Imaging, Inc.(b)      168,504   
  4,045       Facebook, Inc., Class A(b)      529,854   
  7,370       Finisar Corp.(b)      201,791   
  1,951       Fiserv, Inc.(b)      192,134   
  2,522       InterDigital, Inc.      178,179   
  6,110       Intuit, Inc.      664,401   
  2,136       Jack Henry & Associates, Inc.      173,059   
  3,335       Littelfuse, Inc.      465,232   
  9,520       Logitech International SA (Switzerland)      230,860   
  4,165       LogMeIn, Inc.      395,675   
  968       MercadoLibre, Inc. (Argentina)      162,634   
  5,137       Monolithic Power Systems, Inc.      404,847   
  1,831       NetEase, Inc. ADR (China)      470,549   
  5,348       NVIDIA Corp.      380,564   
  4,338       NXP Semiconductors NV (Netherlands)(b)      433,800   
  6,892       Orbotech Ltd. (Israel)(b)      188,841   
  6,470       Proofpoint, Inc.(b)      507,119   
  2,499       SINA Corp. (China)(b)      180,278   
  2,961       Stamps.com, Inc.(b)      288,846   
  7,395       Take-Two Interactive Software, Inc.(b)      328,264   
  3,018       Ultimate Software Group, Inc. (The)(b)      636,768   
     

 

 

  
        10,804,851   
     

 

 

  
   Materials—1.6%   
  17,316       Pan American Silver Corp. (Canada)      277,576   
  3,455       Royal Gold, Inc.      237,773   
     

 

 

  
        515,349   
     

 

 

  
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Real Estate—0.8%   
  701       Equinix, Inc. REIT    $ 250,453   
     

 

 

  
   Total Common Stocks and Other Equity Interests
(Cost $30,017,119)		      33,116,460   
     

 

 

  
     
   Money Market Fund—0.2%   
  74,386       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(c)
(Cost $74,386)		      74,386   
     

 

 

  
   Total Investments
(Cost $30,091,505)—100.2%		      33,190,846   
   Other assets less liabilities—(0.2)%      (76,912 ) 
     

 

 

  
   Net Assets—100.0%    $ 33,113,934   
     

 

 

  

Investment Abbreviations:

ADR—American Depositary Receipt

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

(a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b) Non-income producing security.
(c) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   4  

 

 

PowerShares Dynamic Market Portfolio (PWC)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Information Technology      22.0   
Financials      13.8   
Health Care      13.6   
Consumer Discretionary      12.9   
Industrials      11.0   
Consumer Staples      9.9   
Energy      7.8   
Utilities      3.3   
Materials      3.2   
Telecommunication Services      2.5   
Money Market Funds Plus Other Assets Less Liabilities      (0.0)   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests—100.0%    
   Consumer Discretionary—12.9%   
  28,360       American Eagle Outfitters, Inc.    $ 483,254   
  983       Cable One, Inc.      566,935   
  43,850       Caesars Acquisition Co., Class A(b)      510,853   
  6,217       Children’s Place, Inc. (The)      472,181   
  5,306       Cooper-Standard Holding, Inc.(b)      484,279   
  5,246       Drew Industries, Inc.      469,779   
  60,809       Garmin Ltd.      2,940,723   
  33,911       Intrawest Resorts Holdings, Inc.(b)      556,480   
  7,071       Murphy USA, Inc.(b)      486,343   
  6,990       Papa John’s International, Inc.      527,396   
  48,448       Ross Stores, Inc.      3,029,938   
  38,985       TJX Cos., Inc. (The)      2,875,144   
  11,318       Ulta Salon, Cosmetics & Fragrance, Inc.(b)      2,754,122   
  7,405       Visteon Corp.      522,867   
     

 

 

  
        16,680,294   
     

 

 

  
   Consumer Staples—9.9%   
  27,682       Constellation Brands, Inc., Class A      4,626,216   
  4,675       JM Smucker Co. (The)      613,874   
  11,193       Nu Skin Enterprises, Inc., Class A      690,048   
  7,743       Post Holdings, Inc.(b)      590,249   
  12,565       Sysco Corp.      604,628   
  8,734       Tyson Foods, Inc., Class A      618,804   
  10,785       Universal Corp.      584,547   
  64,789       Wal-Mart Stores, Inc.      4,536,526   
     

 

 

  
        12,864,892   
     

 

 

  
   Energy—7.8%   
  30,972       Alliance Holdings GP LP      940,310   
  69,428       Baker Hughes, Inc.      3,846,311   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Energy (continued)   
  9,713       EQT Midstream Partners LP    $ 727,212   
  101,873       National Oilwell Varco, Inc.      3,270,123   
  294,413       Seadrill Ltd. (United Kingdom)(b)      627,100   
  76,308       Transocean Ltd.(b)(c)      733,320   
     

 

 

  
        10,144,376   
     

 

 

  
   Financials—13.8%   
  28,464       Aflac, Inc.      1,960,316   
  24,899       Ambac Financial Group, Inc.(b)      459,386   
  26,019       American Equity Investment Life Holding Co.      466,521   
  16,290       Assured Guaranty Ltd.      486,908   
  27,019       Cincinnati Financial Corp.      1,912,405   
  18,666       Fidelity & Guaranty Life      412,518   
  101,178       Genworth Financial, Inc., Class A(b)      418,877   
  19,024       Green Dot Corp., Class A(b)      422,333   
  44,746       Lincoln National Corp.      2,196,581   
  23,432       MSCI, Inc.      1,879,012   
  2,302       National Western Life Group, Inc., Class A      495,851   
  10,248       Piper Jaffray Cos.(b)      579,524   
  11,768       Popular, Inc.      427,178   
  43,291       Principal Financial Group, Inc.      2,363,689   
  4,238       Reinsurance Group of America, Inc.      457,111   
  61,660       TrustCo Bank Corp. NY      431,620   
  19,001       Universal Insurance Holdings, Inc.      404,721   
  60,044       Unum Group      2,125,558   
     

 

 

  
        17,900,109   
     

 

 

  
   Health Care—13.6%   
  5,449       Align Technology, Inc.(b)      468,178   
  23,237       American Renal Associates Holdings, Inc.(b)      410,365   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   5  

 

 

PowerShares Dynamic Market Portfolio (PWC) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Health Care (continued)   
  68,316       Baxter International, Inc.    $ 3,251,158   
  28,036       Edwards Lifesciences Corp.(b)      2,669,588   
  11,472       Five Prime Therapeutics, Inc.(b)      556,736   
  22,887       HMS Holdings Corp.(b)      482,229   
  4,031       ICU Medical, Inc.(b)      561,518   
  4,563       IDEXX Laboratories, Inc.(b)      488,880   
  27,138       Johnson & Johnson      3,147,737   
  6,665       Mallinckrodt PLC(b)      394,968   
  8,663       Masimo Corp.(b)      476,465   
  18,110       Medpace Holdings, Inc.(b)      525,552   
  7,944       Mettler-Toledo International, Inc.(b)      3,210,012   
  9,167       Molina Healthcare, Inc.(b)      498,777   
  4,425       WellCare Health Plans, Inc.(b)      502,282   
     

 

 

  
        17,644,445   
     

 

 

  
   Industrials—11.0%   
  16,844       Chart Industries, Inc.(b)      467,253   
  87,190       Delta Air Lines, Inc.      3,641,926   
  42,269       Energy Recovery, Inc.(b)      516,104   
  14,934       Greenbrier Cos., Inc. (The)      470,421   
  11,131       Hawaiian Holdings, Inc.(b)      501,173   
  19,069       Huntington Ingalls Industries, Inc.      3,076,974   
  26,007       Kelly Services, Inc., Class A      487,111   
  6,796       Orbital ATK, Inc.      505,351   
  18,161       Quad Graphics, Inc., Class A      431,505   
  66,901       United Continental Holdings, Inc.(b)      3,761,843   
  35,563       Wabash National Corp.(b)      400,084   
     

 

 

  
        14,259,745   
     

 

 

  
   Information Technology—22.0%   
  17,171       Advanced Energy Industries, Inc.(b)      819,057   
  130,779       Applied Materials, Inc.      3,803,053   
  30,946       Benchmark Electronics, Inc.(b)      778,292   
  15,089       Dolby Laboratories, Inc., Class A      718,086   
  19,221       Fabrinet (Thailand)(b)      729,629   
  31,299       Facebook, Inc., Class A(b)      4,099,856   
  5,910       Fair Isaac Corp.      713,219   
  51,562       Five9, Inc.(b)      738,368   
  269,841       HP, Inc.      3,909,996   
  10,842       InterDigital, Inc.      765,987   
  63,019       NVIDIA Corp.      4,484,432   
  28,798       PC Connection, Inc.      668,402   
  28,344       Sanmina Corp.(b)      783,712   
  10,308       Tech Data Corp.(b)      793,922   
  55,537       Texas Instruments, Inc.      3,934,796   
  53,384       Vishay Intertechnology, Inc.      752,714   
     

 

 

  
        28,493,521   
     

 

 

  
   Materials—3.2%   
  76,679       Newmont Mining Corp.      2,840,190   
  7,583       Trinseo SA      397,728   
  18,476       Westlake Chemical Partners LP      389,844   
  10,254       Worthington Industries, Inc.      481,938   
     

 

 

  
        4,109,700   
     

 

 

  
   Telecommunication Services—2.5%   
  27,834       AT&T, Inc.      1,024,013   
  11,205       CenturyLink, Inc.      297,829   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Telecommunication Services (continued)   
  13,369       Consolidated Communications Holdings, Inc.    $ 319,920   
  24,700       T-Mobile US, Inc.(b)      1,228,331   
  38,882       Windstream Holdings, Inc.      305,224   
     

 

 

  
        3,175,317   
     

 

 

  
   Utilities—3.3%   
  11,227       MGE Energy, Inc.      656,218   
  23,910       NextEra Energy, Inc.      3,060,480   
  25,838       NiSource, Inc.      600,992   
     

 

 

  
        4,317,690   
     

 

 

  
   Total Common Stocks and Other Equity Interests
(Cost $123,363,772)		      129,590,089   
     

 

 

  
     
   Money Market Fund—0.0%   
  63,559       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(d)
(Cost $63,559)		      63,559   
     

 

 

  
   Total Investments
(excluding investments purchased with cash collateral from securities on loan)
(Cost $123,427,331)—100.0%		      129,653,648   
     

 

 

  
     
   Investments Purchased with Cash
Collateral from Securities on Loan		    
     
   Money Market Fund—0.5%   
  600,926       Invesco Government & Agency Portfolio—Institutional Class, 0.29%(d)(e)
(Cost $600,926)		      600,926   
     

 

 

  
   Total Investments
(Cost $124,028,257)—100.5%		      130,254,574   
   Other assets less liabilities—(0.5)%      (680,884 ) 
     

 

 

  
   Net Assets—100.0%    $ 129,573,690   
     

 

 

  

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  Non-income producing security.
(c)  All or a portion of this security was out on loan at October 31, 2016.
(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2H.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   6  

 

 

PowerShares FTSE RAFI US 1000 Portfolio (PRF)

October 31, 2016

(Unaudited)

 

Portfolio Composition  

Sector Breakdown
(% of the Fund’s Net Assets)

as of October 31, 2016

  
Financials      19.4   
Information Technology      13.6   
Energy      13.5   
Industrials      10.5   
Consumer Discretionary      10.0   
Health Care      9.6   
Consumer Staples      8.7   
Utilities      4.6   
Materials      4.2   
Telecommunication Services      3.1   
Real Estate      2.8   
Money Market Funds Plus Other Assets Less Liabilities      0.0   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests—100.0%    
   Consumer Discretionary—10.0%   
  31,244       Abercrombie & Fitch Co., Class A    $ 456,475   
  6,699       Adient PLC(b)      304,872   
  8,742       Advance Auto Parts, Inc.      1,224,579   
  15,014       Amazon.com, Inc.(b)      11,858,358   
  33,691       American Axle & Manufacturing Holdings, Inc.(b)      603,743   
  69,993       American Eagle Outfitters, Inc.      1,192,681   
  123,953       Apollo Education Group, Inc., Class A(b)      1,089,547   
  54,832       Aramark      2,041,395   
  11,332       Asbury Automotive Group, Inc.(b)      577,365   
  99,747       Ascena Retail Group, Inc.(b)      487,763   
  18,494       Autoliv, Inc. (Sweden)(c)      1,789,849   
  32,658       AutoNation, Inc.(b)      1,432,706   
  2,782       AutoZone, Inc.(b)      2,064,689   
  56,812       Bed Bath & Beyond, Inc.      2,296,341   
  152,079       Best Buy Co., Inc.      5,917,394   
  18,789       Big Lots, Inc.      815,443   
  46,461       Bloomin’ Brands, Inc.      803,775   
  49,513       BorgWarner, Inc.      1,774,546   
  11,350       Brinker International, Inc.(c)      558,874   
  14,264       Brunswick Corp.      620,484   
  11,715       Burlington Stores, Inc.(b)      877,922   
  11,639       Cabela’s, Inc.(b)      717,079   
  62,525       Caesars Entertainment Corp.(b)(c)      443,928   
  50,105       CarMax, Inc.(b)(c)      2,502,244   
  89,549       Carnival Corp.      4,396,856   
  82,524       CBS Corp., Class B      4,672,509   
  10,068       Charter Communications, Inc., Class A(b)      2,515,893   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Consumer Discretionary (continued)   
  46,256       Chico’s FAS, Inc.    $ 539,808   
  1,994       Chipotle Mexican Grill, Inc.(b)      719,355   
  25,979       Cinemark Holdings, Inc.      1,033,964   
  59,501       Coach, Inc.      2,135,491   
  442,403       Comcast Corp., Class A      27,349,353   
  17,372       Cooper Tire & Rubber Co.      638,421   
  21,286       Core-Mark Holding Co., Inc.      752,460   
  3,334       Cracker Barrel Old Country Store, Inc.(c)      460,092   
  40,844       CST Brands, Inc.      1,961,329   
  49,434       D.R. Horton, Inc.      1,425,182   
  86,041       Dana, Inc.      1,331,915   
  28,341       Darden Restaurants, Inc.      1,836,213   
  8,821       Deckers Outdoor Corp.(b)      460,368   
  43,566       Delphi Automotive PLC (United Kingdom)      2,834,840   
  26,734       DeVry Education Group, Inc.      606,862   
  21,833       Dick’s Sporting Goods, Inc.      1,215,006   
  11,220       Dillard’s, Inc., Class A      687,786   
  23,966       Discovery Communications, Inc., Class A(b)      625,752   
  42,913       Discovery Communications, Inc., Class C(b)      1,077,545   
  35,165       DISH Network Corp., Class A(b)      2,059,262   
  49,591       Dollar General Corp.      3,426,242   
  20,415       Dollar Tree, Inc.(b)      1,542,353   
  19,788       DSW, Inc., Class A      410,997   
  8,167       Expedia, Inc., Class A      1,055,421   
  21,573       Foot Locker, Inc.      1,440,429   
  1,818,861       Ford Motor Co.      21,353,428   
  15,904       Fossil Group, Inc.(b)(c)      433,702   
  52,702       GameStop Corp., Class A(c)      1,267,483   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   7  

 

 

PowerShares FTSE RAFI US 1000 Portfolio (PRF) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Consumer Discretionary (continued)   
  51,983       Gannett Co., Inc.    $ 403,908   
  76,576       Gap, Inc. (The)      2,112,732   
  26,927       Garmin Ltd.      1,302,190   
  619,994       General Motors Co.      19,591,810   
  8,506       Genesco, Inc.(b)      457,623   
  47,326       Gentex Corp.      800,283   
  31,406       Genuine Parts Co.      2,845,070   
  20,520       GNC Holdings, Inc., Class A      275,584   
  98,337       Goodyear Tire & Rubber Co. (The)      2,854,723   
  1,164       Graham Holdings Co., Class B      552,900   
  16,038       Group 1 Automotive, Inc.      966,610   
  33,239       Guess?, Inc.      448,727   
  42,693       H&R Block, Inc.      980,658   
  34,375       Hanesbrands, Inc.      883,438   
  43,245       Harley-Davidson, Inc.      2,465,830   
  11,282       Harman International Industries, Inc.      899,288   
  16,937       Hasbro, Inc.      1,412,715   
  76,728       Hilton Worldwide Holdings, Inc.      1,734,053   
  143,537       Home Depot, Inc. (The)      17,512,949   
  80,030       International Game Technology PLC      2,298,462   
  72,413       Interpublic Group of Cos., Inc. (The)      1,621,327   
  218,010       J.C. Penney Co., Inc.(b)(c)      1,872,706   
  85,528       Kohl’s Corp.      3,741,850   
  43,191       L Brands, Inc.      3,117,958   
  72,867       Las Vegas Sands Corp.      4,217,542   
  20,493       Lear Corp.      2,516,131   
  25,050       Leggett & Platt, Inc.      1,149,294   
  27,655       Lennar Corp., Class A      1,152,937   
  1,496       Lennar Corp., Class B      50,146   
  52,142       Liberty Global PLC, Series A (United Kingdom)(b)      1,699,829   
  128,025       Liberty Global PLC, Series C (United Kingdom)(b)      4,071,195   
  105,904       Liberty Interactive Corp. QVC Group, Series A(b)      1,958,165   
  352       Liberty Interactive Corp. QVC Group, Series B(b)      7,072   
  2,167       Liberty Media Corp.-Liberty Braves, Class A(b)      36,731   
  4,317       Liberty Media Corp.-Liberty Braves, Class C(b)      71,964   
  5,407       Liberty Media Corp.-Liberty Media, Class A(b)      150,477   
  10,799       Liberty Media Corp.-Liberty Media, Class C(b)      296,001   
  21,629       Liberty Media Corp.-Liberty SiriusXM, Class A(b)      719,597   
  43,855       Liberty Media Corp.-Liberty SiriusXM, Class C(b)      1,455,547   
  45,744       Live Nation Entertainment, Inc.(b)      1,265,737   
  44,024       LKQ Corp.(b)      1,421,095   
  146,701       Lowe’s Cos., Inc.      9,777,622   
  130,355       Macy’s, Inc.      4,756,654   
  22,699       Marriott International, Inc., Class A      1,559,421   
  80,799       Mattel, Inc.      2,547,592   
  143,892       McDonald’s Corp.      16,197,922   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Consumer Discretionary (continued)   
  121,486       MGM Resorts International(b)    $ 3,179,289   
  19,424       Michael Kors Holdings Ltd.(b)      986,351   
  9,620       Mohawk Industries, Inc.(b)      1,772,966   
  33,424       Murphy USA, Inc.(b)      2,298,903   
  9,332       Netflix, Inc.(b)      1,165,287   
  36,614       Newell Brands, Inc.      1,758,204   
  181,062       News Corp., Class A      2,194,471   
  49,128       News Corp., Class B      609,187   
  83,116       NIKE, Inc., Class B      4,170,761   
  39,934       Nordstrom, Inc.      2,076,568   
  19,505       Norwegian Cruise Line Holdings Ltd.(b)      758,159   
  462       NVR, Inc.(b)      703,626   
  309,532       Office Depot, Inc.      975,026   
  47,341       Omnicom Group, Inc.      3,778,759   
  6,787       O’Reilly Automotive, Inc.(b)      1,794,754   
  2,599       Panera Bread Co., Class A(b)      495,785   
  22,635       Penske Automotive Group, Inc.      1,012,916   
  9,276       Polaris Industries, Inc.(c)      710,634   
  2,581       Priceline Group, Inc. (The)(b)      3,804,988   
  56,868       PulteGroup, Inc.      1,057,745   
  17,739       PVH Corp.      1,897,718   
  15,306       Ralph Lauren Corp., Class A      1,501,519   
  30,069       Regal Entertainment Group, Class A(c)      646,784   
  54,663       Rent-A-Center, Inc.      551,550   
  37,799       Ross Stores, Inc.      2,363,949   
  25,636       Royal Caribbean Cruises Ltd.      1,970,639   
  21,338       Sally Beauty Holdings, Inc.(b)      553,508   
  10,603       Scripps Networks Interactive, Inc., Class A      682,409   
  83,603       Sears Holdings Corp.(b)(c)      928,829   
  26,702       SeaWorld Entertainment, Inc.(c)      374,095   
  33,530       Service Corp. International      858,368   
  13,129       ServiceMaster Global Holdings, Inc.(b)      469,887   
  11,063       Signet Jewelers Ltd.(c)      898,979   
  147,291       Sirius XM Holdings, Inc.(b)(c)      614,203   
  10,919       Six Flags Entertainment Corp.      607,642   
  38,201       Sonic Automotive, Inc., Class A      683,798   
  437,039       Staples, Inc.      3,234,089   
  71,665       Starbucks Corp.      3,803,262   
  35,074       Tailored Brands, Inc.      554,169   
  189,245       Target Corp.      13,006,809   
  56,795       TEGNA, Inc.      1,114,318   
  27,913       Tenneco, Inc.(b)      1,537,169   
  10,527       Thor Industries, Inc.      834,896   
  21,316       Tiffany & Co.      1,565,021   
  212,712       Time Warner, Inc.      18,929,241   
  63,611       Time, Inc.      826,943   
  72,686       TJX Cos., Inc. (The)      5,360,593   
  33,046       Toll Brothers, Inc.(b)      906,782   
  8,161       Tractor Supply Co.      511,123   
  44,352       Tribune Media Co., Class A      1,445,875   
  12,884       Tupperware Brands Corp.      766,856   
  176,205       Twenty-First Century Fox, Inc., Class A      4,628,905   
  65,328       Twenty-First Century Fox, Inc., Class B      1,724,006   
  3,333       Ulta Salon, Cosmetics & Fragrance, Inc.(b)      811,052   
  6,124       Under Armour, Inc., Class A(b)(c)      190,456   
  6,168       Under Armour, Inc., Class C(b)      159,504   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   8  

 

 

PowerShares FTSE RAFI US 1000 Portfolio (PRF) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Consumer Discretionary (continued)   
  24,364       Urban Outfitters, Inc.(b)    $ 814,976   
  42,608       VF Corp.      2,309,780   
  3,125       Viacom, Inc., Class A      132,188   
  112,718       Viacom, Inc., Class B      4,233,688   
  11,156       Vista Outdoor, Inc.(b)      431,403   
  20,303       Visteon Corp.      1,433,595   
  181,068       Walt Disney Co. (The)      16,783,193   
  58,135       Wendy’s Co. (The)      630,183   
  22,715       Whirlpool Corp.      3,403,161   
  13,761       Williams-Sonoma, Inc.      636,033   
  20,066       Wyndham Worldwide Corp.      1,321,145   
  36,234       Wynn Resorts Ltd.(c)      3,425,925   
  56,969       Yum! Brands, Inc.      4,915,285   
     

 

 

  
        416,240,314   
     

 

 

  
   Consumer Staples—8.7%   
  254,767       Altria Group, Inc.      16,845,194   
  21,487       Andersons, Inc. (The)      817,580   
  349,715       Archer-Daniels-Midland Co.      15,237,083   
  550,068       Avon Products, Inc.      3,602,945   
  24,528       Brown-Forman Corp., Class B      1,132,458   
  133,793       Bunge Ltd.      8,296,504   
  25,450       Campbell Soup Co.      1,382,953   
  8,625       Casey’s General Stores, Inc.      974,539   
  25,708       Church & Dwight Co., Inc.      1,240,668   
  15,098       Clorox Co. (The)      1,812,062   
  578,175       Coca-Cola Co. (The)      24,514,620   
  39,021       Coca-Cola European Partners PLC (United Kingdom)      1,499,967   
  106,412       Colgate-Palmolive Co.      7,593,560   
  84,703       ConAgra Foods, Inc.      4,080,991   
  12,850       Constellation Brands, Inc., Class A      2,147,492   
  94,313       Costco Wholesale Corp.      13,946,063   
  216,843       CVS Health Corp.      18,236,496   
  87,083       Darling Ingredients, Inc.(b)      1,184,329   
  32,847       Dean Foods Co.      599,786   
  24,281       Dr Pepper Snapple Group, Inc.      2,131,629   
  11,524       Edgewell Personal Care Co.(b)      868,910   
  13,967       Energizer Holdings, Inc.      649,605   
  17,226       Estee Lauder Cos., Inc. (The), Class A      1,500,901   
  40,129       Flowers Foods, Inc.(c)      622,802   
  106,021       General Mills, Inc.      6,571,182   
  14,160       Hain Celestial Group, Inc. (The)(b)      514,999   
  19,268       Herbalife Ltd.(b)(c)      1,169,182   
  19,112       Hershey Co. (The)      1,958,216   
  25,379       Hormel Foods Corp.      977,091   
  54,265       HRG Group, Inc.(b)      816,146   
  12,044       Ingredion, Inc.      1,579,811   
  19,212       JM Smucker Co. (The)      2,522,728   
  40,542       Kellogg Co.      3,045,920   
  50,733       Kimberly-Clark Corp.      5,804,363   
  40,111       Kraft Heinz Co. (The)      3,567,873   
  279,508       Kroger Co. (The)      8,659,158   
  13,303       McCormick & Co., Inc.      1,275,359   
  21,039       Mead Johnson Nutrition Co.      1,573,086   
  18,643       Molson Coors Brewing Co., Class B      1,935,330   
  300,209       Mondelez International, Inc., Class A      13,491,392   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Consumer Staples (continued)   
  4,626       Monster Beverage Corp.(b)    $ 667,717   
  19,120       Nu Skin Enterprises, Inc.,
Class A(c)		      1,178,748   
  230,651       PepsiCo, Inc.      24,725,787   
  270,254       Philip Morris International, Inc.      26,063,296   
  17,344       Pinnacle Foods, Inc.      891,828   
  502,381       Procter & Gamble Co. (The)      43,606,671   
  73,620       Reynolds American, Inc.      4,054,990   
  316,368       Rite Aid Corp.(b)      2,122,829   
  337,226       SUPERVALU, Inc.(b)      1,446,700   
  150,960       Sysco Corp.      7,264,195   
  6,632       TreeHouse Foods, Inc.(b)      580,167   
  58,976       Tyson Foods, Inc., Class A      4,178,450   
  21,361       United Natural Foods, Inc.(b)      891,608   
  10,755       Universal Corp.      582,921   
  136,523       Walgreens Boots Alliance, Inc.      11,294,548   
  611,678       Wal-Mart Stores, Inc.      42,829,694   
  16,310       WhiteWave Foods Co. (The)(b)      888,732   
  76,391       Whole Foods Market, Inc.      2,161,101   
     

 

 

  
        361,810,955   
     

 

 

  
   Energy—13.5%   
  200,134       Anadarko Petroleum Corp.      11,895,965   
  226,110       Apache Corp.      13,449,023   
  116,447       Atwood Oceanics, Inc.(c)      888,491   
  151,578       Baker Hughes, Inc.      8,397,421   
  37,203       Cabot Oil & Gas Corp.      776,799   
  263,409       California Resources Corp.(b)(c)      2,702,576   
  2,221,645       Chesapeake Energy Corp.(b)(c)      12,241,264   
  870,082       Chevron Corp.      91,141,089   
  14,708       Cimarex Energy Co.      1,899,244   
  17,647       Concho Resources, Inc.(b)      2,240,110   
  862,183       ConocoPhillips      37,461,851   
  203,706       CONSOL Energy, Inc.      3,452,817   
  25,226       Continental Resources, Inc.(b)      1,233,804   
  139,489       Cosan Ltd., Class A (Brazil)      1,241,452   
  61,978       Delek US Holdings, Inc.      1,047,428   
  1,388,505       Denbury Resources, Inc.(b)(c)      3,318,527   
  346,967       Devon Energy Corp.      13,146,580   
  74,199       Diamond Offshore Drilling, Inc.(c)      1,223,542   
  38,099       Energen Corp.      1,909,903   
  332,052       Ensco PLC, Class A      2,596,647   
  89,510       EOG Resources, Inc.      8,093,494   
  23,011       EQT Corp.      1,518,726   
  1,363,718       Exxon Mobil Corp.      113,624,984   
  64,119       FMC Technologies, Inc.(b)      2,069,120   
  32,222       Golar LNG Ltd. (Bermuda)(c)      705,340   
  17,657       Gulfport Energy Corp.(b)      425,710   
  246,917       Halliburton Co.      11,358,182   
  29,715       Helmerich & Payne, Inc.(c)      1,875,314   
  169,554       Hess Corp.      8,133,505   
  128,615       HollyFrontier Corp.      3,208,944   
  518,910       Kinder Morgan, Inc.      10,601,331   
  1,035,476       Marathon Oil Corp.      13,647,574   
  321,474       Marathon Petroleum Corp.      14,013,052   
  265,225       McDermott International, Inc.(b)      1,363,256   
  227,317       Murphy Oil Corp.      5,880,691   
  243,287       Nabors Industries Ltd.      2,895,115   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   9  

 

 

PowerShares FTSE RAFI US 1000 Portfolio (PRF) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Energy (continued)   
  222,912       National Oilwell Varco, Inc.    $ 7,155,475   
  64,557       Newfield Exploration Co.(b)      2,620,369   
  279,287       Noble Corp. PLC (United Kingdom)      1,379,678   
  98,027       Noble Energy, Inc.      3,378,991   
  120,857       Oasis Petroleum, Inc.(b)      1,267,790   
  224,068       Occidental Petroleum Corp.      16,336,798   
  32,206       Oceaneering International, Inc.      766,503   
  24,810       Oil States International, Inc.(b)      725,692   
  113,243       ONEOK, Inc.      5,484,358   
  70,885       Patterson-UTI Energy, Inc.      1,593,495   
  56,811       PBF Energy, Inc., Class A      1,238,480   
  224,921       Phillips 66      18,252,339   
  14,948       Pioneer Natural Resources Co.      2,675,991   
  113,753       QEP Resources, Inc.      1,828,011   
  39,612       Range Resources Corp.      1,338,489   
  75,849       Rowan Cos. PLC, Class A      1,006,516   
  234,345       Schlumberger Ltd.      18,332,809   
  11,910       SEACOR Holdings, Inc.(b)(c)      587,282   
  101,436       SM Energy Co.      3,411,293   
  285,773       Southwestern Energy Co.(b)      2,969,181   
  169,413       Spectra Energy Corp.      7,083,158   
  28,466       Stone Energy Corp.(b)(c)      118,419   
  122,581       Superior Energy Services, Inc.      1,735,747   
  42,736       Targa Resources Corp.      1,876,110   
  60,107       Teekay Corp. (Bermuda)      392,499   
  49,900       Tesoro Corp.      4,240,003   
  103,913       Tidewater, Inc.(c)      179,769   
  488,392       Transocean Ltd.(b)(c)      4,693,447   
  130,421       Unit Corp.(b)      2,234,112   
  263,153       Valero Energy Corp.      15,589,184   
  574,314       Weatherford International PLC(b)      2,768,193   
  42,589       Western Refining, Inc.      1,228,693   
  413,846       Whiting Petroleum Corp.(b)      3,410,091   
  313,812       Williams Cos., Inc. (The)      9,163,310   
  55,939       World Fuel Services Corp.      2,251,545   
  283,242       WPX Energy, Inc.(b)      3,076,008   
     

 

 

  
        564,068,699   
     

 

 

  
   Financials—19.4%   
  8,021       Affiliated Managers Group, Inc.(b)      1,064,066   
  129,217       Aflac, Inc.      8,899,175   
  138,592       Agnc Investment Corp. REIT      2,780,156   
  4,553       Alleghany Corp.(b)      2,350,304   
  33,362       Allied World Assurance Co. Holdings AG      1,433,899   
  126,405       Allstate Corp. (The)      8,582,899   
  344,831       Ally Financial, Inc.      6,231,096   
  36,077       Ambac Financial Group, Inc.(b)      665,621   
  46,954       American Equity Investment Life Holding Co.      841,885   
  202,482       American Express Co.      13,448,854   
  23,099       American Financial Group, Inc.      1,720,876   
  533,175       American International Group, Inc.      32,896,898   
  44,048       Ameriprise Financial, Inc.      3,893,403   
  398,656       Annaly Capital Management, Inc. REIT      4,130,076   
  36,021       Aon PLC      3,992,207   
  24,155       Arch Capital Group Ltd. (Bermuda)(b)      1,883,365   
  34,023       Arthur J. Gallagher & Co.      1,640,929   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials (continued)   
  18,939       Aspen Insurance Holdings Ltd. (Bermuda)    $ 913,807   
  37,001       Associated Banc-Corp.      751,120   
  28,434       Assurant, Inc.      2,289,506   
  48,400       Assured Guaranty Ltd.      1,446,676   
  28,506       Axis Capital Holdings Ltd.      1,623,987   
  3,788,817       Bank of America Corp.      62,515,481   
  8,229       Bank of Hawaii Corp.      618,409   
  275,387       Bank of New York Mellon Corp. (The)      11,915,995   
  18,209       BankUnited, Inc.      530,610   
  214,866       BB&T Corp.      8,422,747   
  441,259       Berkshire Hathaway, Inc., Class B(b)      63,673,674   
  21,757       BlackRock, Inc.      7,424,359   
  18,377       Brown & Brown, Inc.      677,376   
  174,277       Capital One Financial Corp.      12,903,469   
  45,693       Capitol Federal Financial, Inc.      670,316   
  120,312       Charles Schwab Corp. (The)      3,813,890   
  79,128       Chimera Investment Corp. REIT      1,239,936   
  74,564       Chubb Ltd.      9,469,628   
  30,895       Cincinnati Financial Corp.      2,186,748   
  75,137       CIT Group, Inc.      2,729,727   
  1,193,906       Citigroup, Inc.      58,680,480   
  241,815       Citizens Financial Group, Inc.      6,369,407   
  64,411       CME Group, Inc., Class A      6,447,541   
  68,316       CNO Financial Group, Inc.      1,030,205   
  52,774       Comerica, Inc.      2,748,998   
  19,899       Commerce Bancshares, Inc.      991,368   
  15,644       Cullen/Frost Bankers, Inc.      1,188,788   
  102,512       Discover Financial Services      5,774,501   
  17,353       Donnelley Financial Solutions, Inc.(b)      372,222   
  73,531       E*TRADE Financial Corp.(b)      2,070,633   
  27,411       East West Bancorp, Inc.      1,083,009   
  24,213       Eaton Vance Corp.      848,908   
  12,716       Endurance Specialty Holdings Ltd.      1,169,236   
  9,153       Everest Re Group Ltd.      1,862,819   
  43,715       F.N.B. Corp.      571,355   
  26,911       Federated Investors, Inc., Class B      726,597   
  295,119       Fifth Third Bancorp      6,421,789   
  26,484       First American Financial Corp.      1,034,465   
  44,848       First Horizon National Corp.      691,108   
  16,675       First Republic Bank      1,241,120   
  62,224       FNF Group      2,234,464   
  96,134       Franklin Resources, Inc.      3,235,870   
  47,115       Fulton Financial Corp.      702,014   
  1,366,584       Genworth Financial, Inc., Class A(b)      5,657,658   
  133,565       Goldman Sachs Group, Inc. (The)      23,806,626   
  29,146       Hancock Holding Co.      977,848   
  12,404       Hanover Insurance Group, Inc. (The)      945,061   
  161,179       Hartford Financial Services Group, Inc. (The)      7,109,606   
  216,985       Huntington Bancshares, Inc.      2,300,041   
  9,224       Intercontinental Exchange, Inc.      2,494,077   
  102,022       Invesco Ltd.(d)      2,865,798   
  68,440       Invesco Mortgage Capital, Inc.
REIT(d)		      1,021,809   
  53,485       Investors Bancorp, Inc.      655,726   
  39,517       Janus Capital Group, Inc.      506,608   
  1,132,297       JPMorgan Chase & Co.      78,422,890   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   10  

 

 

PowerShares FTSE RAFI US 1000 Portfolio (PRF) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials (continued)   
  19,747       Kemper Corp.    $ 741,500   
  258,794       KeyCorp      3,654,171   
  34,332       Legg Mason, Inc.      986,015   
  137,531       Leucadia National Corp.      2,567,704   
  107,260       Lincoln National Corp.      5,265,393   
  116,412       Loews Corp.      5,009,208   
  33,458       LPL Financial Holdings, Inc.(c)      1,035,860   
  28,329       M&T Bank Corp.      3,476,818   
  2,082       Markel Corp.(b)      1,826,809   
  75,047       Marsh & McLennan Cos., Inc.      4,757,229   
  145,471       MBIA, Inc.(b)      1,120,127   
  8,845       Mercury General Corp.      481,787   
  423,173       MetLife, Inc.      19,872,204   
  132,376       MFA Financial, Inc. REIT      967,669   
  14,384       Moody’s Corp.      1,445,880   
  431,168       Morgan Stanley      14,474,310   
  7,943       MSCI, Inc.      636,949   
  20,133       Nasdaq, Inc.      1,287,908   
  293,021       Navient Corp.      3,744,808   
  70,996       New Residential Investment Corp. REIT      991,104   
  159,257       New York Community Bancorp, Inc.      2,286,931   
  46,878       Northern Trust Corp.      3,394,905   
  78,249       Old Republic International Corp.      1,319,278   
  20,135       PacWest Bancorp      873,658   
  43,646       PennyMac Mortgage Investment Trust REIT      664,292   
  101,863       People’s United Financial, Inc.      1,654,255   
  89,559       PHH Corp.(b)      1,300,397   
  139,904       PNC Financial Services Group, Inc. (The)      13,374,822   
  51,565       Popular, Inc.      1,871,810   
  92,368       Principal Financial Group, Inc.      5,043,293   
  16,530       ProAssurance Corp.      881,049   
  144,965       Progressive Corp. (The)      4,567,847   
  16,451       Prosperity Bancshares, Inc.      912,537   
  204,411       Prudential Financial, Inc.      17,332,009   
  24,282       Raymond James Financial, Inc.      1,459,834   
  494,228       Regions Financial Corp.      5,293,182   
  25,101       Reinsurance Group of America, Inc.      2,707,394   
  8,158       RenaissanceRe Holdings Ltd. (Bermuda)      1,013,958   
  8,660       RLI Corp.      482,708   
  26,324       S&P Global, Inc.      3,207,579   
  81,561       Santander Consumer USA Holdings, Inc.(b)      995,044   
  5,084       Signature Bank(b)      612,927   
  294,598       SLM Corp.(b)      2,076,916   
  57,891       Starwood Property Trust, Inc. REIT      1,287,496   
  98,345       State Street Corp.      6,904,802   
  23,573       Stifel Financial Corp.(b)      922,647   
  162,976       SunTrust Banks, Inc.      7,371,404   
  10,655       SVB Financial Group(b)      1,302,787   
  238,779       Synchrony Financial      6,826,692   
  27,801       Synovus Financial Corp.      919,379   
  39,566       T. Rowe Price Group, Inc.      2,532,620   
  50,102       TCF Financial Corp.      716,459   
  29,701       TD Ameritrade Holding Corp.      1,016,071   
  29,913       Torchmark Corp.      1,896,783   
  105,916       Travelers Cos., Inc. (The)      11,457,993   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials (continued)   
  116,663       Two Harbors Investment Corp. REIT    $ 971,803   
  369,455       U.S. Bancorp      16,536,806   
  54,559       Umpqua Holdings Corp.      833,662   
  101,673       Unum Group      3,599,224   
  23,125       Validus Holdings Ltd.      1,181,688   
  72,047       Valley National Bancorp      710,383   
  120,789       Voya Financial, Inc.      3,690,104   
  27,548       W.R. Berkley Corp.      1,572,991   
  28,331       Waddell & Reed Financial, Inc., Class A      445,363   
  24,903       Washington Federal, Inc.      678,607   
  17,756       Webster Financial Corp.      717,342   
  1,187,823       Wells Fargo & Co.      54,651,736   
  12,396       Willis Towers Watson PLC      1,560,656   
  74,203       XL Group Ltd. (Ireland)      2,574,844   
  61,807       Zions Bancorporation      1,990,803   
     

 

 

  
        809,075,038   
     

 

 

  
   Health Care—9.6%   
  243,191       Abbott Laboratories      9,542,815   
  144,981       AbbVie, Inc.      8,087,040   
  72,791       Aetna, Inc.      7,814,114   
  36,517       Agilent Technologies, Inc.      1,591,046   
  9,404       Alere, Inc.(b)      420,171   
  7,020       Alexion Pharmaceuticals, Inc.(b)      916,110   
  20,974       Allergan PLC(b)      4,382,308   
  94,933       AmerisourceBergen Corp.      6,675,689   
  72,983       Amgen, Inc.      10,302,280   
  7,858       AmSurg Corp.(b)      469,515   
  89,571       Anthem, Inc.      10,915,122   
  91,173       Baxter International, Inc.      4,338,923   
  23,156       Becton, Dickinson and Co.      3,888,124   
  15,948       Biogen, Inc.(b)      4,468,311   
  3,760       Bio-Rad Laboratories, Inc.,
Class A(b)		      594,381   
  110       Bio-Rad Laboratories, Inc.,
Class B(b)		      17,710   
  106,695       Boston Scientific Corp.(b)      2,347,290   
  194,622       Bristol-Myers Squibb Co.      9,908,206   
  72,488       Brookdale Senior Living, Inc.(b)      1,046,002   
  5,745       C.R. Bard, Inc.      1,244,827   
  130,873       Cardinal Health, Inc.      8,989,666   
  28,807       Celgene Corp.(b)      2,943,499   
  23,574       Centene Corp.(b)      1,472,904   
  22,634       Cerner Corp.(b)      1,325,900   
  36,188       Cigna Corp.      4,300,220   
  171,895       Community Health Systems,
Inc.(b)(c)		      907,606   
  4,330       Cooper Cos., Inc. (The)      762,253   
  61,539       Danaher Corp.      4,833,888   
  46,078       DaVita, Inc.(b)      2,701,092   
  14,809       DENTSPLY Sirona, Inc.      852,554   
  10,912       Edwards Lifesciences Corp.(b)      1,039,041   
  160,538       Eli Lilly & Co.      11,854,126   
  13,737       Endo International PLC(b)      257,569   
  42,108       Envision Healthcare Holdings, Inc.(b)      832,896   
  209,030       Express Scripts Holding Co.(b)      14,088,622   
  89,148       Gilead Sciences, Inc.      6,563,967   
  24,298       Halyard Health, Inc.(b)      786,040   
  110,774       HCA Holdings, Inc.(b)      8,477,534   
  16,285       HealthSouth Corp.      653,843   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   11  

 

 

PowerShares FTSE RAFI US 1000 Portfolio (PRF) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Health Care (continued)   
  11,443       Henry Schein, Inc.(b)    $ 1,707,296   
  24,559       Hologic, Inc.(b)      884,370   
  34,280       Humana, Inc.      5,880,048   
  3,822       Illumina, Inc.(b)      520,327   
  2,290       Intuitive Surgical, Inc.(b)      1,539,063   
  422,044       Johnson & Johnson      48,952,884   
  83,988       Kindred Healthcare, Inc.      827,282   
  16,710       Laboratory Corp. of America Holdings(b)      2,094,431   
  15,937       LifePoint Health, Inc.(b)      953,829   
  12,248       Magellan Health, Inc.(b)      630,160   
  18,994       Mallinckrodt PLC(b)      1,125,584   
  88,353       McKesson Corp.      11,235,851   
  13,354       MEDNAX, Inc.(b)      817,932   
  178,386       Medtronic PLC      14,631,220   
  608,040       Merck & Co., Inc.      35,704,109   
  1,818       Mettler-Toledo International, Inc.(b)      734,617   
  11,132       Molina Healthcare, Inc.(b)      605,692   
  41,407       Mylan NV(b)      1,511,356   
  25,875       Owens & Minor, Inc.      839,644   
  15,454       Patterson Cos., Inc.      660,040   
  155,808       PDL BioPharma, Inc.      501,702   
  13,251       PerkinElmer, Inc.      674,343   
  14,393       Perrigo Co. PLC      1,197,354   
  1,437,189       Pfizer, Inc.      45,573,263   
  33,463       Quest Diagnostics, Inc.      2,725,227   
  13,260       Quintiles IMS Holdings, Inc.(b)      951,272   
  42,456       Quorum Health Corp.(b)      171,522   
  1,625       Regeneron Pharmaceuticals,
Inc.(b)		      560,657   
  10,947       ResMed, Inc.      654,302   
  66,041       Select Medical Holdings Corp.(b)      858,533   
  43,311       St. Jude Medical, Inc.      3,371,328   
  7,839       STERIS PLC      523,802   
  28,056       Stryker Corp.      3,236,260   
  4,927       Teleflex, Inc.      705,202   
  82,175       Tenet Healthcare Corp.(b)      1,619,669   
  39,896       Thermo Fisher Scientific, Inc.      5,865,909   
  4,264       United Therapeutics Corp.(b)      511,978   
  169,817       UnitedHealth Group, Inc.      24,000,237   
  14,227       Universal Health Services, Inc., Class B      1,717,341   
  12,431       Varian Medical Systems, Inc.(b)      1,127,865   
  9,121       VCA, Inc.(b)      560,577   
  6,891       Waters Corp.(b)      958,814   
  14,604       WellCare Health Plans, Inc.(b)      1,657,700   
  18,758       Zimmer Biomet Holdings, Inc.      1,977,093   
  33,813       Zoetis, Inc.      1,616,261   
     

 

 

  
        397,787,150   
     

 

 

  
   Industrials—10.5%   
  81,964       3M Co.      13,548,649   
  18,886       ABM Industries, Inc.      738,065   
  2,358       Acuity Brands, Inc.      527,178   
  49,160       AECOM(b)      1,369,106   
  50,348       AerCap Holdings NV (Ireland)(b)      2,069,806   
  34,512       AGCO Corp.      1,762,873   
  18,066       Air Lease Corp.      546,677   
  32,805       Allison Transmission Holdings, Inc.      960,858   
  23,397       American Airlines Group, Inc.      949,918   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Industrials (continued)   
  26,433       AMETEK, Inc.    $ 1,165,695   
  171,008       Arconic, Inc.      4,911,350   
  17,205       Armstrong Flooring, Inc.(b)      278,549   
  34,927       Armstrong World Industries, Inc.(b)      1,309,763   
  77,199       Avis Budget Group, Inc.(b)      2,498,160   
  122,790       Boeing Co. (The)      17,488,980   
  18,011       Brink’s Co. (The)      712,335   
  28,516       C.H. Robinson Worldwide, Inc.      1,942,510   
  9,013       Carlisle Cos., Inc.      945,013   
  221,488       Caterpillar, Inc.      18,485,388   
  37,353       Chicago Bridge & Iron Co. NV      1,196,043   
  12,429       Cintas Corp.      1,325,801   
  14,629       Clean Harbors, Inc.(b)      692,244   
  34,925       Colfax Corp.(b)      1,110,266   
  44,900       Covanta Holding Corp.      673,500   
  10,907       Crane Co.      741,785   
  239,330       CSX Corp.      7,301,958   
  46,413       Cummins, Inc.      5,932,510   
  8,173       Curtiss-Wright Corp.      732,464   
  106,938       Deere & Co.      9,442,625   
  31,616       Delta Air Lines, Inc.      1,320,600   
  9,699       Deluxe Corp.      593,579   
  22,331       Donaldson Co., Inc.      815,528   
  35,432       Dover Corp.      2,370,046   
  6,044       Dun & Bradstreet Corp. (The)      754,593   
  110,164       Eaton Corp. PLC      7,025,158   
  16,043       EMCOR Group, Inc.      969,960   
  174,206       Emerson Electric Co.      8,828,760   
  9,844       EnerSys      641,140   
  9,994       Equifax, Inc.      1,238,956   
  23,979       Essendant, Inc.      368,078   
  12,724       Esterline Technologies Corp.(b)      934,578   
  28,874       Expeditors International of Washington, Inc.      1,486,145   
  34,125       Fastenal Co.      1,330,193   
  59,747       FedEx Corp.      10,415,097   
  28,232       Flowserve Corp.      1,195,625   
  67,579       Fluor Corp.      3,513,432   
  30,769       Fortive Corp.      1,570,757   
  15,897       Fortune Brands Home & Security, Inc.      868,453   
  13,577       FTI Consulting, Inc.(b)      528,960   
  13,472       GATX Corp.(c)      589,669   
  20,250       Generac Holdings, Inc.(b)      771,323   
  81,348       General Cable Corp.      1,138,872   
  56,575       General Dynamics Corp.      8,528,116   
  2,068,345       General Electric Co.      60,188,840   
  13,235       Genesee & Wyoming, Inc.,
Class A(b)		      899,186   
  91,723       Harsco Corp.      894,299   
  44,776       HD Supply Holdings, Inc.(b)      1,477,608   
  27,770       Herc Holdings, Inc.(b)      835,599   
  84,083       Hertz Global Holdings, Inc.(b)      2,787,351   
  12,715       Hexcel Corp.      578,405   
  106,871       Honeywell International, Inc.      11,721,611   
  13,125       Hub Group, Inc., Class A(b)      478,406   
  10,185       Hubbell, Inc.      1,064,536   
  7,701       Huntington Ingalls Industries, Inc.      1,242,633   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   12  

 

 

PowerShares FTSE RAFI US 1000 Portfolio (PRF) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Industrials (continued)   
  9,816       IDEX Corp.    $ 848,495   
  52,672       Illinois Tool Works, Inc.      5,981,959   
  52,383       Ingersoll-Rand PLC      3,524,852   
  14,607       ITT, Inc.      514,459   
  11,457       J.B. Hunt Transport Services, Inc.      935,006   
  60,701       Jacobs Engineering Group, Inc.(b)      3,130,958   
  66,996       Johnson Controls International PLC      2,701,279   
  107,541       Joy Global, Inc.(c)      2,992,866   
  15,104       Kansas City Southern      1,325,527   
  21,468       KAR Auction Services, Inc.      914,107   
  80,630       KBR, Inc.      1,194,130   
  38,302       Kennametal, Inc.      1,084,330   
  16,090       Kirby Corp.(b)      948,506   
  26,242       KLX, Inc.(b)      903,250   
  25,460       L-3 Communications Holdings, Inc.      3,486,492   
  9,936       Lincoln Electric Holdings, Inc.      654,087   
  50,064       Lockheed Martin Corp.      12,334,768   
  17,353       LSC Communications, Inc.(b)      420,637   
  36,110       Manitowoc Co., Inc. (The)      145,884   
  23,281       Manitowoc Foodservice, Inc.(b)      351,776   
  31,257       ManpowerGroup, Inc.      2,400,538   
  40,168       Masco Corp.      1,240,388   
  41,243       MasTec, Inc.(b)      1,177,488   
  76,096       Meritor, Inc.(b)      782,267   
  12,766       Moog, Inc., Class A(b)      741,322   
  104,326       MRC Global, Inc.(b)      1,537,765   
  8,746       MSC Industrial Direct Co., Inc., Class A      636,709   
  98,733       Navistar International Corp.(b)(c)      2,201,746   
  41,371       Nielsen Holdings PLC      1,862,522   
  82,418       Norfolk Southern Corp.      7,664,874   
  32,363       Northrop Grumman Corp.      7,411,127   
  57,713       NOW, Inc.(b)      1,244,292   
  12,059       Old Dominion Freight Line, Inc.(b)      900,566   
  7,104       Orbital ATK, Inc.      528,253   
  34,084       Oshkosh Corp.      1,823,494   
  25,767       Owens Corning      1,256,914   
  89,941       PACCAR, Inc.      4,939,560   
  32,386       Parker-Hannifin Corp.      3,975,382   
  33,497       Pentair PLC (United Kingdom)      1,846,690   
  87,492       Pitney Bowes, Inc.      1,560,857   
  89,287       Quanta Services, Inc.(b)      2,567,001   
  53,240       Raytheon Co.      7,273,116   
  12,337       Regal Beloit Corp.      729,117   
  66,671       Republic Services, Inc.      3,508,895   
  28,216       Rexnord Corp.(b)      561,216   
  22,142       Robert Half International, Inc.      828,554   
  19,668       Rockwell Automation, Inc.      2,354,653   
  17,925       Rockwell Collins, Inc.      1,511,436   
  8,379       Roper Technologies, Inc.      1,452,165   
  46,273       RR Donnelley & Sons Co.      821,346   
  24,977       Rush Enterprises, Inc., Class A(b)      655,646   
  27,153       Ryder System, Inc.      1,884,147   
  21,791       Sensata Technologies Holding NV(b)      778,592   
  6,917       Snap-on, Inc.      1,065,910   
  19,752       Southwest Airlines Co.      791,068   
  22,673       Spirit AeroSystems Holdings, Inc., Class A(b)      1,141,812   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Industrials (continued)   
  45,558       SPX FLOW, Inc.(b)    $ 1,143,050   
  32,951       Stanley Black & Decker, Inc.      3,751,142   
  7,411       Stericycle, Inc.(b)      593,547   
  30,870       Swift Transportation Co., Class A(b)      690,871   
  7,866       Teledyne Technologies, Inc.(b)      847,011   
  41,475       Terex Corp.      990,423   
  63,449       Textron, Inc.      2,543,036   
  22,637       Timken Co. (The)      748,153   
  8,207       TransDigm Group, Inc.      2,236,079   
  59,650       Trinity Industries, Inc.      1,273,528   
  28,268       Triumph Group, Inc.      669,952   
  145,734       Union Pacific Corp.      12,850,824   
  26,852       United Continental Holdings, Inc.(b)      1,509,888   
  116,151       United Parcel Service, Inc., Class B      12,516,432   
  30,342       United Rentals, Inc.(b)      2,295,676   
  189,509       United Technologies Corp.      19,367,820   
  5,117       Valmont Industries, Inc.      654,720   
  8,336       Verisk Analytics, Inc.(b)      679,801   
  9,234       W.W. Grainger, Inc.      1,921,780   
  7,142       WABCO Holdings, Inc.(b)      703,201   
  7,311       Wabtec Corp.      565,213   
  93,915       Waste Management, Inc.      6,166,459   
  4,621       Watsco, Inc.      634,417   
  25,924       WESCO International, Inc.(b)      1,405,081   
  26,267       Xylem, Inc.      1,269,484   
  69,946       YRC Worldwide, Inc.(b)      621,120   
     

 

 

  
        438,025,665   
     

 

 

  
   Information Technology—13.6%   
  77,844       Accenture PLC, Class A      9,048,587   
  76,121       Activision Blizzard, Inc.      3,286,144   
  27,251       Adobe Systems, Inc.(b)      2,929,755   
  320,110       Advanced Micro Devices, Inc.(b)      2,314,395   
  17,437       Akamai Technologies, Inc.(b)      1,211,348   
  7,323       Alliance Data Systems Corp.      1,497,334   
  19,459       Alphabet, Inc., Class A(b)      15,759,844   
  19,523       Alphabet, Inc., Class C(b)      15,316,574   
  19,320       Amdocs Ltd.      1,129,254   
  108,903       Amkor Technology, Inc.(b)      1,009,531   
  26,247       Amphenol Corp., Class A      1,730,465   
  43,836       Analog Devices, Inc.      2,809,888   
  20,820       Anixter International, Inc.(b)      1,368,915   
  7,186       ANSYS, Inc.(b)      656,441   
  635,876       Apple, Inc.      72,197,361   
  199,308       Applied Materials, Inc.      5,795,877   
  61,588       Arrow Electronics, Inc.(b)      3,764,259   
  17,131       Autodesk, Inc.(b)      1,238,229   
  50,750       Automatic Data Processing, Inc.      4,418,295   
  75,372       Avnet, Inc.      3,161,855   
  24,812       Benchmark Electronics, Inc.(b)      624,022   
  49,597       Booz Allen Hamilton Holding Corp.      1,511,221   
  10,842       Broadcom Ltd. (Singapore)      1,846,176   
  13,262       Broadridge Financial Solutions, Inc.      857,521   
  59,197       Brocade Communications Systems, Inc.      627,488   
  71,724       CA, Inc.      2,204,796   
  7,794       CACI International, Inc., Class A(b)      762,643   
  23,743       Cadence Design Systems, Inc.(b)      607,346   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   13  

 

 

PowerShares FTSE RAFI US 1000 Portfolio (PRF) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Information Technology (continued)   
  17,259       CDK Global, Inc.    $ 942,514   
  29,958       CDW Corp.      1,345,414   
  11,174       Check Point Software Technologies Ltd. (Israel)(b)      944,873   
  823,656       Cisco Systems, Inc.      25,269,766   
  14,462       Citrix Systems, Inc.(b)      1,226,378   
  54,341       Cognizant Technology Solutions Corp., Class A(b)      2,790,410   
  30,781       CommScope Holding, Inc.(b)      940,360   
  46,232       Computer Sciences Corp.      2,517,332   
  299,137       Corning, Inc.      6,793,401   
  22,724       Cree, Inc.(b)      506,745   
  38,149       CSRA, Inc.      957,158   
  34,520       Dell Technologies, Inc., Class V(b)      1,694,587   
  23,703       Diebold, Inc.      516,725   
  5,732       DST Systems, Inc.      551,189   
  114,864       eBay, Inc.(b)      3,274,773   
  16,274       EchoStar Corp., Class A(b)      760,647   
  17,822       Electronic Arts, Inc.(b)      1,399,383   
  7,109       F5 Networks, Inc.(b)      982,535   
  59,840       Facebook, Inc., Class A(b)      7,838,442   
  44,154       Fidelity National Information Services, Inc.      3,263,864   
  16,079       First Solar, Inc.(b)(c)      651,039   
  20,106       Fiserv, Inc.(b)      1,980,039   
  5,024       FleetCor Technologies, Inc.(b)      880,707   
  367,248       Flex Ltd.(b)      5,211,249   
  19,795       FLIR Systems, Inc.      651,651   
  21,442       Genpact Ltd.(b)      492,952   
  21,214       Harris Corp.      1,892,501   
  950,149       Hewlett Packard Enterprise Co.      21,349,848   
  868,807       HP, Inc.      12,589,013   
  15,363       IAC/InterActiveCorp.      989,992   
  132,424       Ingram Micro, Inc., Class A      4,926,173   
  1,171,217       Intel Corp.      40,840,337   
  242,133       International Business Machines Corp.      37,213,421   
  16,222       Intuit, Inc.      1,763,980   
  93,774       Jabil Circuit, Inc.      2,001,137   
  52,138       Juniper Networks, Inc.      1,373,315   
  36,776       Keysight Technologies, Inc.(b)      1,206,253   
  26,233       KLA-Tencor Corp.      1,970,361   
  17,091       Lam Research Corp.      1,655,434   
  18,113       Leidos Holdings, Inc.      752,957   
  28,664       Lexmark International, Inc., Class A      1,137,674   
  29,160       Linear Technology Corp.      1,751,350   
  5,663       LinkedIn Corp., Class A(b)      1,073,705   
  137,344       Marvell Technology Group Ltd. (Bermuda)      1,789,592   
  40,888       MasterCard, Inc., Class A      4,375,834   
  48,191       Maxim Integrated Products, Inc.      1,909,809   
  33,980       Microchip Technology, Inc.      2,057,489   
  439,662       Micron Technology, Inc.(b)      7,544,600   
  874,325       Microsoft Corp.      52,389,554   
  26,902       Motorola Solutions, Inc.      1,952,547   
  56,789       NCR Corp.(b)      1,990,454   
  65,747       NetApp, Inc.      2,231,453   
  30,939       Nuance Communications, Inc.(b)      433,765   
  45,600       NVIDIA Corp.      3,244,896   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Information Technology (continued)   
  14,822       NXP Semiconductors NV (Netherlands)(b)    $ 1,482,200   
  106,082       ON Semiconductor Corp.(b)      1,237,977   
  456,669       Oracle Corp.      17,545,223   
  40,640       Paychex, Inc.      2,243,328   
  76,956       PayPal Holdings, Inc.(b)      3,205,987   
  32,073       Qorvo, Inc.(b)      1,784,862   
  291,166       QUALCOMM, Inc.      20,008,928   
  7,914       Red Hat, Inc.(b)      612,939   
  17,196       salesforce.com, inc.(b)      1,292,451   
  51,571       Sanmina Corp.(b)      1,425,938   
  13,015       ScanSource, Inc.(b)      455,525   
  10,676       Science Applications International Corp.      735,683   
  108,186       Seagate Technology PLC      3,711,862   
  10,994       Skyworks Solutions, Inc.      845,878   
  179,968       Symantec Corp.      4,504,599   
  9,474       SYNNEX Corp.      971,464   
  20,792       Synopsys, Inc.(b)      1,233,174   
  72,758       TE Connectivity Ltd. (Switzerland)      4,574,295   
  42,963       Tech Data Corp.(b)      3,309,010   
  38,003       Teradata Corp.(b)      1,024,561   
  30,545       Teradyne, Inc.      711,393   
  135,107       Texas Instruments, Inc.      9,572,331   
  16,369       Total System Services, Inc.      816,486   
  34,960       Trimble, Inc.(b)      966,294   
  51,172       Unisys Corp.(b)(c)      534,747   
  9,903       Vantiv, Inc., Class A(b)      577,939   
  6,915       VeriSign, Inc.(b)(c)      580,998   
  16,368       Versum Materials, Inc.(b)      371,554   
  96,380       Visa, Inc., Class A      7,952,314   
  50,548       Vishay Intertechnology, Inc.      712,727   
  72,978       Western Digital Corp.      4,264,834   
  109,430       Western Union Co. (The)      2,196,260   
  532,944       Xerox Corp.      5,206,863   
  32,260       Xilinx, Inc.      1,641,066   
  229,888       Yahoo!, Inc.(b)      9,551,846   
     

 

 

  
        566,340,677   
     

 

 

  
   Materials—4.2%   
  4,255       Advansix, Inc.(b)      67,910   
  32,737       Air Products & Chemicals, Inc.      4,367,771   
  227,666       AK Steel Holding Corp.(b)(c)      1,183,863   
  15,411       Albemarle Corp.      1,287,589   
  86,735       Allegheny Technologies, Inc.(c)      1,183,065   
  8,848       AptarGroup, Inc.      632,101   
  16,011       Ashland Global Holdings, Inc.      1,788,909   
  19,110       Avery Dennison Corp.      1,333,687   
  25,407       Axalta Coating Systems Ltd.(b)      638,224   
  22,722       Ball Corp.      1,751,185   
  24,379       Bemis Co., Inc.      1,187,745   
  25,573       Berry Plastics Group, Inc.(b)      1,118,819   
  18,801       Cabot Corp.      980,284   
  16,265       Carpenter Technology Corp.      514,137   
  25,740       Celanese Corp., Series A      1,876,961   
  77,050       CF Industries Holdings, Inc.      1,849,970   
  368,417       Chemours Co. (The)      6,053,091   
  25,174       Chemtura Corp.(b)      825,707   
  422,559       Cliffs Natural Resources, Inc.(b)(c)      2,332,526   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   14  

 

 

PowerShares FTSE RAFI US 1000 Portfolio (PRF) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Materials (continued)   
  63,887       Commercial Metals Co.    $ 1,003,665   
  7,035       Compass Minerals International, Inc.(c)      505,465   
  115,517       Constellium NV, Class A (Netherlands)(b)      606,464   
  34,378       Crown Holdings, Inc.(b)      1,865,007   
  38,226       Domtar Corp.      1,374,225   
  290,011       Dow Chemical Co. (The)      15,605,492   
  182,435       E.I. du Pont de Nemours & Co.      12,549,704   
  35,505       Eastman Chemical Co.      2,553,165   
  28,152       Ecolab, Inc.      3,214,114   
  26,022       FMC Corp.      1,220,172   
  1,512,291       Freeport-McMoRan, Inc.      16,907,413   
  79,662       Graphic Packaging Holding Co.      995,775   
  133,780       Huntsman Corp.      2,267,571   
  9,100       Ingevity Corp.(b)      376,740   
  9,627       International Flavors & Fragrances, Inc.      1,259,019   
  158,906       International Paper Co.      7,155,537   
  125,088       LyondellBasell Industries NV, Class A      9,950,750   
  8,030       Martin Marietta Materials, Inc.      1,488,601   
  66,096       Monsanto Co.      6,660,494   
  167,516       Mosaic Co. (The)      3,941,651   
  1,660       NewMarket Corp.      665,511   
  178,075       Newmont Mining Corp.      6,595,898   
  117,544       Nucor Corp.      5,742,024   
  39,044       Olin Corp.      856,235   
  113,164       Owens-Illinois, Inc.(b)      2,184,065   
  23,998       Packaging Corp. of America      1,979,835   
  19,648       PolyOne Corp.      574,311   
  39,196       PPG Industries, Inc.      3,650,323   
  50,254       Praxair, Inc.      5,882,733   
  26,772       Reliance Steel & Aluminum Co.      1,841,378   
  26,687       RPM International, Inc.      1,268,700   
  25,628       Sealed Air Corp.      1,169,406   
  8,321       Sensient Technologies Corp.      619,998   
  6,300       Sherwin-Williams Co. (The)      1,542,618   
  9,437       Silgan Holdings, Inc.      480,815   
  25,921       Sonoco Products Co.      1,303,567   
  58,847       Southern Copper Corp. (Peru)(c)      1,670,666   
  79,502       Steel Dynamics, Inc.      2,183,125   
  262,399       United States Steel Corp.(c)      5,074,797   
  11,489       Valspar Corp. (The)      1,144,304   
  11,772       Vulcan Materials Co.      1,332,590   
  9,873       W.R. Grace & Co.      661,096   
  55,265       WestRock Co.      2,552,690   
     

 

 

  
        173,451,253   
     

 

 

  
   Real Estate—2.8%   
  13,512       Alexandria Real Estate Equities, Inc. REIT      1,456,729   
  19,099       American Campus Communities, Inc. REIT      995,249   
  25,289       American Tower Corp. REIT      2,963,618   
  20,196       Apartment Investment & Management Co., Class A REIT      890,038   
  47,345       Apple Hospitality REIT, Inc. REIT      853,630   
  14,968       AvalonBay Communities, Inc. REIT      2,562,222   
  25,472       Boston Properties, Inc. REIT      3,068,867   
  56,144       Brandywine Realty Trust REIT      870,232   
  31,889       Brixmor Property Group, Inc. REIT      810,618   
  15,055       Camden Property Trust REIT      1,226,079   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Real Estate (continued)   
  18,768       Care Capital Properties, Inc. REIT    $ 498,666   
  85,860       CBL & Associates Properties, Inc. REIT      918,702   
  52,256       CBRE Group, Inc., Class A(b)      1,346,115   
  49,222       Columbia Property Trust, Inc. REIT      1,037,600   
  25,866       Corporate Office Properties Trust REIT      690,364   
  40,860       Corrections Corp. of America
REIT(c)		      590,427   
  22,146       Crown Castle International Corp. REIT      2,015,065   
  14,335       DCT Industrial Trust, Inc. REIT      670,161   
  56,032       DDR Corp. REIT      856,729   
  61,707       DiamondRock Hospitality Co. REIT      564,619   
  19,470       Digital Realty Trust, Inc. REIT      1,819,082   
  24,749       Douglas Emmett, Inc. REIT      903,338   
  58,995       Duke Realty Corp. REIT      1,542,719   
  8,832       EPR Properties REIT      642,263   
  3,586       Equinix, Inc. REIT      1,281,206   
  34,049       Equity Commonwealth REIT(b)      1,028,620   
  6,673       Equity LifeStyle Properties, Inc. REIT      506,080   
  53,987       Equity Residential REIT      3,333,697   
  6,869       Essex Property Trust, Inc. REIT      1,470,584   
  7,344       Extra Space Storage, Inc. REIT      537,214   
  6,249       Federal Realty Investment Trust REIT      907,542   
  68,678       General Growth Properties, Inc. REIT      1,713,516   
  20,413       Geo Group, Inc. (The) REIT      489,095   
  121,997       HCP, Inc. REIT      4,178,397   
  18,180       Healthcare Realty Trust, Inc. REIT      579,760   
  18,806       Healthcare Trust of America, Inc., Class A REIT      575,464   
  16,889       Highwoods Properties, Inc. REIT      838,201   
  58,960       Hospitality Properties Trust REIT      1,613,146   
  172,711       Host Hotels & Resorts, Inc. REIT      2,673,566   
  65,671       Iron Mountain, Inc. REIT      2,215,083   
  8,110       Jones Lang LaSalle, Inc.      785,453   
  13,271       Kilroy Realty Corp. REIT      953,256   
  57,184       Kimco Realty Corp. REIT      1,521,666   
  8,942       Lamar Advertising Co., Class A REIT      567,370   
  27,250       LaSalle Hotel Properties REIT      647,187   
  83,112       Lexington Realty Trust REIT      842,756   
  40,384       Liberty Property Trust REIT      1,632,725   
  22,204       Macerich Co. (The) REIT      1,571,599   
  42,107       Mack-Cali Realty Corp. REIT      1,081,308   
  9,919       Mid-America Apartment Communities, Inc. REIT      919,987   
  17,026       National Retail Properties, Inc. REIT      776,726   
  67,407       NorthStar Realty Finance Corp. REIT      978,750   
  17,436       OMEGA Healthcare Investors, Inc. REIT(c)      554,988   
  44,174       Outfront Media, Inc. REIT      950,183   
  36,290       Paramount Group, Inc. REIT      564,310   
  51,967       Piedmont Office Realty Trust, Inc., Class A REIT      1,064,284   
  93,752       Prologis, Inc. REIT      4,890,104   
  9,603       Public Storage REIT      2,052,353   
  41,786       Rayonier, Inc. REIT      1,120,701   
  38,322       Realogy Holdings Corp.      877,191   
  22,660       Realty Income Corp. REIT      1,342,378   
  11,088       Regency Centers Corp. REIT      799,112   
  58,526       Retail Properties of America, Inc., Class A REIT      911,250   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   15  

 

 

PowerShares FTSE RAFI US 1000 Portfolio (PRF) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Real Estate (continued)   
  38,737       RLJ Lodging Trust REIT    $ 763,894   
  10,188       Ryman Hospitality Properties, Inc. REIT      513,679   
  73,530       Senior Housing Properties Trust REIT      1,563,983   
  28,716       Simon Property Group, Inc. REIT      5,340,027   
  17,266       SL Green Realty Corp. REIT      1,695,867   
  69,234       Spirit Realty Capital, Inc. REIT      824,577   
  39,918       Sunstone Hotel Investors, Inc. REIT      501,370   
  10,545       Taubman Centers, Inc. REIT      764,091   
  33,247       UDR, Inc. REIT      1,162,648   
  61,130       Ventas, Inc. REIT      4,141,558   
  182,308       VEREIT, Inc. REIT      1,713,695   
  29,577       Vornado Realty Trust REIT      2,744,154   
  69,071       Washington Prime Group, Inc. REIT      724,555   
  19,059       Weingarten Realty Investors REIT      690,126   
  64,705       Welltower, Inc. REIT      4,434,234   
  208,261       Weyerhaeuser Co. REIT      6,233,252   
  15,666       WP Carey, Inc. REIT      951,553   
  34,335       Xenia Hotels & Resorts, Inc. REIT      535,969   
     

 

 

  
        116,439,172   
     

 

 

  
   Telecommunication Services—3.1%   
  1,834,989       AT&T, Inc.      67,509,245   
  334,663       CenturyLink, Inc.      8,895,343   
  731,000       Frontier Communications Corp.(c)      2,938,620   
  68,326       Leap Wireless Corp.(b)      172,182   
  40,456       Level 3 Communications, Inc.(b)      2,271,604   
  54,844       Telephone & Data Systems, Inc.      1,417,169   
  52,669       T-Mobile US, Inc.(b)      2,619,229   
  912,745       Verizon Communications, Inc.      43,903,034   
  140,422       Windstream Holdings, Inc.(c)      1,102,313   
     

 

 

  
        130,828,739   
     

 

 

  
   Utilities—4.6%   
  440,494       AES Corp. (The)      5,184,614   
  10,696       ALLETE, Inc.      655,558   
  50,838       Alliant Energy Corp.      1,934,386   
  73,923       Ameren Corp.      3,692,454   
  133,801       American Electric Power Co., Inc.      8,675,657   
  30,281       American Water Works Co., Inc.      2,242,005   
  18,614       Aqua America, Inc.      571,450   
  20,754       Atmos Energy Corp.      1,543,890   
  17,653       Avista Corp.      730,834   
  11,115       Black Hills Corp.      687,463   
  165,405       Calpine Corp.(b)      1,968,319   
  175,931       CenterPoint Energy, Inc.      4,011,227   
  63,029       CMS Energy Corp.      2,656,672   
  86,716       Consolidated Edison, Inc.      6,551,394   
  118,588       Dominion Resources, Inc.      8,917,818   
  49,607       DTE Energy Co.      4,762,768   
  198,282       Duke Energy Corp.      15,866,526   
  101,115       Dynegy, Inc.(b)      1,076,875   
  84,610       Edison International      6,217,143   
  76,788       Entergy Corp.      5,657,740   
  65,650       Eversource Energy      3,614,689   
  382,305       Exelon Corp.      13,025,131   
  202,522       FirstEnergy Corp.      6,944,479   
  46,172       Great Plains Energy, Inc.      1,313,132   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Utilities (continued)   
  34,973       Hawaiian Electric Industries, Inc.    $ 1,031,703   
  9,794       IDACORP, Inc.      767,752   
  81,783       MDU Resources Group, Inc.      2,143,532   
  22,710       National Fuel Gas Co.      1,189,550   
  18,375       New Jersey Resources Corp.      623,831   
  82,440       NextEra Energy, Inc.      10,552,320   
  51,362       NiSource, Inc.      1,194,680   
  9,577       NorthWestern Corp.      551,156   
  310,341       NRG Energy, Inc.      3,298,925   
  59,182       OGE Energy Corp.      1,837,009   
  10,061       ONE Gas, Inc.      616,538   
  134,723       PG&E Corp.      8,368,993   
  31,136       Pinnacle West Capital Corp.      2,370,384   
  21,573       PNM Resources, Inc.      708,673   
  23,810       Portland General Electric Co.      1,039,068   
  178,199       PPL Corp.      6,119,354   
  144,557       Public Service Enterprise Group, Inc.      6,082,959   
  32,786       SCANA Corp.      2,405,181   
  51,890       Sempra Energy      5,557,419   
  239,943       Southern Co. (The)      12,373,861   
  12,353       Southwest Gas Corp.      895,098   
  7,278       Spire, Inc.      457,058   
  46,640       UGI Corp.      2,158,966   
  22,322       Vectren Corp.      1,123,020   
  41,571       WEC Energy Group, Inc.      2,482,620   
  32,366       Westar Energy, Inc.      1,855,219   
  11,104       WGL Holdings, Inc.      700,329   
  128,221       Xcel Energy, Inc.      5,327,583   
     

 

 

  
        192,335,005   
     

 

 

  
   Total Common Stocks and Other Equity Interests
(Cost $3,866,836,689)		      4,166,402,667   
     

 

 

  
     
   Money Market Fund—0.0%   
  116,575       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(e)
(Cost $116,575)		      116,575   
     

 

 

  
   Total Investments
(excluding investments purchased with cash collateral from securities on loan)
(Cost $3,866,953,264)—100.0%		      4,166,519,242   
     

 

 

  
     
   Investments Purchased with Cash
Collateral from Securities on Loan		    
     
   Money Market Fund—1.1%   
  45,367,689       Invesco Government & Agency Portfolio—Institutional Class, 0.29%(e)(f)
(Cost $45,367,689)		      45,367,689   
     

 

 

  
   Total Investments
(Cost $3,912,320,953)—101.1%		      4,211,886,931   
   Other assets less liabilities—(1.1)%      (44,573,054 ) 
     

 

 

  
   Net Assets—100.0%    $ 4,167,313,877   
     

 

 

  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   16  

 

 

PowerShares FTSE RAFI US 1000 Portfolio (PRF) (continued)

October 31, 2016

(Unaudited)

 

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

(a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b) Non-income producing security.
(c) All or a portion of this security was out on loan at October 31, 2016.
(d) Affiliated company. The Fund’s Adviser and Invesco Mortgage Capital, Inc. REIT are wholly-owned subsidiaries of Invesco Ltd. and therefore, Invesco Ltd. and Invesco Mortgage Capital, Inc. REIT are considered to be affiliated with the Fund. See Note 4.
(e) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
(f) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2H.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   17  

 

 

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Financials      17.8   
Industrials      17.0   
Information Technology      16.2   
Consumer Discretionary      14.8   
Energy      7.7   
Real Estate      6.9   
Materials      6.8   
Health Care      6.7   
Consumer Staples      3.1   
Utilities      1.6   
Telecommunication Services      1.4   
Money Market Funds Plus Other Assets Less Liabilities      (0.0)   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests—100.0%    
   Consumer Discretionary—14.8%   
  30,224       1-800-FLOWERS.COM, Inc., Class A(b)    $ 288,639   
  82,630       Aaron’s, Inc.      2,041,787   
  27,455       AMC Networks, Inc., Class A(b)      1,343,373   
  32,244       American Public Education,
Inc.(b)		      649,717   
  15,328       America’s Car-Mart, Inc.(b)(c)      626,149   
  285,743       Arcos Dorados Holdings, Inc., Class A (Uruguay)(b)      1,757,319   
  28,756       Arctic Cat, Inc.      431,052   
  71,934       Ascent Capital Group, Inc., Class A(b)      1,466,015   
  137,980       Barnes & Noble Education,
Inc.(b)		      1,284,594   
  222,686       Barnes & Noble, Inc.      2,293,666   
  9,536       Bassett Furniture Industries, Inc.      218,851   
  98,389       Beazer Homes USA, Inc.(b)      1,006,519   
  107,909       Belmond Ltd., Class A (United Kingdom)(b)      1,397,422   
  41,706       Big 5 Sporting Goods Corp.      646,443   
  1,540       Biglari Holdings, Inc.(b)      674,797   
  15,855       BJ’s Restaurants, Inc.(b)      572,365   
  38,699       Black Diamond, Inc.(b)      191,560   
  9,630       Blue Nile, Inc.      336,376   
  35,630       Bob Evans Farms, Inc.      1,468,669   
  174,582       Bon-Ton Stores, Inc. (The)(c)      240,923   
  17,502       Boot Barn Holdings, Inc.(b)(c)      224,026   
  98,711       Boyd Gaming Corp.(b)      1,762,978   
  41,692       Bravo Brio Restaurant Group, Inc.(b)      187,614   
  44,759       Bridgepoint Education, Inc.(b)      302,571   
  18,288       Bright Horizons Family Solutions,
Inc.(b)		      1,223,650   
  55,172       Buckle, Inc. (The)(c)      1,150,336   
  9,354       Buffalo Wild Wings, Inc.(b)      1,362,410   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Consumer Discretionary (continued)   
  17,598       Build-A-Bear Workshop, Inc.(b)    $ 237,573   
  3,880       Cable One, Inc.      2,237,751   
  54,397       CalAtlantic Group, Inc.      1,758,111   
  63,117       Caleres, Inc.      1,578,556   
  62,872       Callaway Golf Co.      641,923   
  10,757       Capella Education Co.      786,337   
  372,388       Career Education Corp.(b)      2,677,470   
  36,571       Carmike Cinemas, Inc.(b)(c)      1,194,043   
  13,869       Carriage Services, Inc.      327,863   
  36,540       Carrols Restaurant Group,
Inc.(b)		      456,750   
  20,960       Carter’s, Inc.      1,809,686   
  28,398       Cato Corp. (The), Class A      842,569   
  6,297       Cavco Industries, Inc.(b)      581,843   
  117,508       Central European Media Enterprises Ltd., Class A (Bermuda)(b)(c)      287,895   
  22,543       Century Communities, Inc.(b)      444,097   
  30,396       Cheesecake Factory, Inc. (The)      1,616,763   
  58,452       Chegg, Inc.(b)(c)      388,706   
  16,530       Children’s Place, Inc. (The)      1,255,453   
  28,217       Choice Hotels International, Inc.      1,367,114   
  173,822       Christopher & Banks Corp.(b)      222,492   
  6,335       Churchill Downs, Inc.      861,560   
  6,652       Chuy’s Holdings, Inc.(b)      188,917   
  29,553       Citi Trends, Inc.      586,923   
  157,076       Clear Channel Outdoor Holdings, Inc., Class A      903,187   
  73,638       ClubCorp Holdings, Inc.      850,519   
  13,772       Columbia Sportswear Co.      780,046   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   18  

 

 

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Consumer Discretionary (continued)   
  45,103       Conn’s, Inc.(b)(c)    $ 428,478   
  29,409       Container Store Group, Inc. (The)(b)(c)      143,516   
  29,696       Cooper-Standard Holding, Inc.(b)      2,710,354   
  125,042       Crocs, Inc.(b)      961,573   
  14,987       CSS Industries, Inc.      376,174   
  6,004       Culp, Inc.      168,112   
  79,495       Cumulus Media, Inc., Class A(b)      109,703   
  16,650       Dave & Buster’s Entertainment, Inc.(b)      688,477   
  22,463       Del Frisco’s Restaurant Group, Inc.(b)      321,221   
  48,793       Denny’s Corp.(b)      505,983   
  54,468       Destination Maternity Corp.(c)      369,838   
  15,516       DineEquity, Inc.      1,227,316   
  16,475       Domino’s Pizza, Inc.      2,788,229   
  12,639       Dorman Products, Inc.(b)      811,929   
  19,440       Drew Industries, Inc.      1,740,852   
  42,078       Dunkin’ Brands Group, Inc.      2,034,892   
  35,286       E.W. Scripps Co. (The), Class A(b)      467,892   
  20,505       Eldorado Resorts, Inc.(b)      248,110   
  33,494       Entravision Communications Corp., Class A      224,410   
  69,045       Eros International PLC, Class A(b)(c)      1,225,549   
  23,288       Ethan Allen Interiors, Inc.      714,942   
  110,964       Express, Inc.(b)      1,333,787   
  59,180       Extended Stay America, Inc.      846,274   
  165,322       Federal-Mogul Holdings Corp.(b)      1,530,882   
  17,315       Fiesta Restaurant Group, Inc.(b)      457,116   
  74,409       Finish Line, Inc. (The), Class A      1,465,113   
  24,447       Five Below, Inc.(b)      918,718   
  8,013       Flexsteel Industries, Inc.      335,745   
  31,515       Francesca’s Holdings Corp.(b)      506,446   
  73,193       Fred’s, Inc., Class A      668,252   
  27,340       FTD Cos., Inc.(b)      550,081   
  15,022       Gentherm, Inc.(b)      422,869   
  28,537       G-III Apparel Group Ltd.(b)      745,386   
  33,692       Global Eagle Entertainment, Inc.(b)      271,221   
  52,841       GoPro, Inc., Class A(b)(c)      675,308   
  25,228       Grand Canyon Education, Inc.(b)      1,100,950   
  66,034       Gray Television, Inc.(b)      587,703   
  262,030       Groupon, Inc., Class A(b)(c)      1,045,500   
  176,922       Harte-Hanks, Inc.      249,460   
  30,248       Haverty Furniture Cos., Inc.      536,902   
  18,537       Helen of Troy Ltd.(b)      1,510,766   
  97,495       hhgregg, Inc.(b)(c)      165,741   
  29,234       Hibbett Sports, Inc.(b)(c)      1,135,741   
  7,886       Hooker Furniture Corp.      207,402   
  38,357       Horizon Global Corp.(b)      768,674   
  95,164       Houghton Mifflin Harcourt Co.(b)      1,203,825   
  391,019       Hovnanian Enterprises, Inc.,
Class A(b)(c)		      609,990   
  37,853       HSN, Inc.      1,427,058   
  31,516       Hyatt Hotels Corp., Class A(b)      1,600,698   
  181,019       Iconix Brand Group, Inc.(b)(c)      1,426,430   
  53,259       Ilg, Inc.      872,382   
  21,313       IMAX Corp.(b)      644,718   
  7,659       Installed Building Products, Inc.(b)      253,130   
  23,673       International Speedway Corp., Class A      778,842   
  24,841       Intrawest Resorts Holdings, Inc.(b)      407,641   
  20,850       iRobot Corp.(b)      1,057,095   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Consumer Discretionary (continued)   
  32,525       Isle of Capri Casinos, Inc.(b)    $ 683,025   
  17,875       J. Alexander’s Holdings, Inc.(b)      160,875   
  20,307       Jack in the Box, Inc.      1,903,375   
  55,514       JAKKS Pacific, Inc.(b)(c)      371,944   
  47,199       John Wiley & Sons, Inc., Class A      2,435,468   
  8,483       Johnson Outdoors, Inc., Class A      305,218   
  86,977       K12, Inc.(b)      942,831   
  19,622       Kandi Technologies Group, Inc. (China)(b)(c)      98,110   
  49,427       Kate Spade & Co.(b)      827,902   
  143,950       KB Home(c)      2,093,033   
  22,775       Kirkland’s, Inc.(b)      278,083   
  120,134       La Quinta Holdings, Inc.(b)      1,202,541   
  34,124       Lands’ End, Inc.(b)(c)      532,334   
  42,514       La-Z-Boy, Inc.      994,828   
  11,785       LGI Homes, Inc.(b)(c)      350,722   
  12,005       Liberty Broadband Corp., Class A(b)      779,725   
  31,809       Liberty Broadband Corp., Class C(b)      2,120,070   
  72,564       Liberty TripAdvisor Holdings, Inc., Series A(b)      1,610,921   
  5,814       Liberty Ventures, Series A(b)      231,979   
  38,315       LifeLock, Inc.(b)      616,871   
  19,910       Lifetime Brands, Inc.      281,726   
  63,989       Lions Gate Entertainment Corp.      1,302,816   
  20,728       Lithia Motors, Inc., Class A      1,778,048   
  25,344       Loral Space & Communications,
Inc.(b)		      983,347   
  30,848       Lululemon Athletica, Inc.(b)      1,766,048   
  81,892       Lumber Liquidators Holdings, Inc.(b)(c)      1,270,145   
  51,737       M/I Homes, Inc.(b)      1,112,863   
  26,233       Marcus Corp. (The)      695,175   
  25,659       MarineMax, Inc.(b)      511,897   
  16,117       Marriott Vacations Worldwide Corp.      1,024,719   
  17,363       McClatchy Co. (The), Class A(b)      244,818   
  65,415       MDC Holdings, Inc.      1,550,990   
  29,589       MDC Partners, Inc., Class A(c)      250,027   
  81,083       Media General, Inc.(b)      1,366,249   
  45,388       Meredith Corp.      2,058,346   
  54,256       Meritage Homes Corp.(b)      1,679,223   
  32,710       Metaldyne Performance Group, Inc.      505,370   
  69,572       Michaels Cos., Inc. (The)(b)      1,617,549   
  93,476       Modine Manufacturing Co.(b)      1,023,562   
  8,485       Monarch Casino & Resort, Inc.(b)      200,670   
  13,406       Monro Muffler Brake, Inc.      737,330   
  10,134       Motorcar Parts of America, Inc.(b)      265,916   
  19,214       Movado Group, Inc.      423,669   
  42,085       MSG Networks, Inc., Class A(b)      803,823   
  12,918       NACCO Industries, Inc., Class A      944,952   
  91,259       National CineMedia, Inc.      1,265,762   
  9,324       Nautilus, Inc.(b)      164,102   
  40,073       New Media Investment Group, Inc.      577,051   
  110,751       New York Times Co. (The), Class A      1,207,186   
  14,553       Nexstar Broadcasting Group, Inc., Class A(c)      710,186   
  15,949       Noodles & Co., Class A(b)(c)      74,960   
  19,118       Nutrisystem, Inc.      606,041   
  31,041       Overstock.com, Inc.(b)      454,751   
  11,721       Oxford Industries, Inc.      735,141   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   19  

 

 

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Consumer Discretionary (continued)   
  13,098       Papa John’s International, Inc.    $ 988,244   
  42,732       Party City Holdco, Inc.(b)(c)      694,395   
  62,466       Penn National Gaming, Inc.(b)      807,685   
  35,055       Perry Ellis International, Inc.(b)      651,672   
  23,761       PetMed Express, Inc.(c)      472,131   
  288,324       Pier 1 Imports, Inc.(c)      1,242,676   
  65,366       Pinnacle Entertainment, Inc.(b)      774,587   
  19,082       Pool Corp.      1,766,612   
  3,774       Popeyes Louisiana Kitchen, Inc.(b)      201,456   
  19,421       Potbelly Corp.(b)      253,444   
  30,187       Reading International, Inc.,
Class A(b)		      398,167   
  12,324       Red Robin Gourmet Burgers, Inc.(b)      566,904   
  90,008       Regis Corp.(b)      1,141,301   
  19,489       Restoration Hardware Holdings,
Inc.(b)(c)		      564,596   
  22,684       Rocky Brands, Inc.      242,719   
  218,080       Ruby Tuesday, Inc.(b)      647,698   
  16,548       Ruth’s Hospitality Group, Inc.      262,286   
  47,257       Scholastic Corp.      1,807,580   
  125,601       Scientific Games Corp.,
Class A(b)(c)		      1,557,452   
  35,421       Sears Hometown and Outlet Stores, Inc.(b)(c)      171,792   
  57,380       Select Comfort Corp.(b)      1,101,122   
  42,496       Shiloh Industries, Inc.(b)      297,047   
  18,364       Shoe Carnival, Inc.      465,895   
  27,764       Shutterfly, Inc.(b)      1,360,436   
  60,298       Sinclair Broadcast Group, Inc., Class A      1,513,480   
  52,710       Skechers U.S.A., Inc.,
Class A(b)		      1,108,491   
  30,205       Smith & Wesson Holding
Corp.(b)(c)		      798,318   
  34,666       SodaStream International Ltd.
(Israel)(b)(c)		      897,156   
  22,542       Sonic Corp.      516,437   
  86,298       Sotheby’s      3,096,372   
  23,415       Speedway Motorsports, Inc.      440,436   
  17,816       Sportsman’s Warehouse Holdings,
Inc.(b)		      163,907   
  135,055       Stage Stores, Inc.(c)      687,430   
  19,722       Standard Motor Products, Inc.      964,406   
  34,650       Starz, Class A(b)      1,090,089   
  94,967       Stein Mart, Inc.      571,701   
  45,528       Steven Madden Ltd.(b)      1,520,635   
  42,169       Stoneridge, Inc.(b)      624,945   
  4,691       Strattec Security Corp.      166,531   
  21,790       Strayer Education, Inc.(b)      1,278,201   
  16,079       Sturm Ruger & Co., Inc.(c)      988,859   
  39,115       Superior Industries International, Inc.      958,318   
  58,597       Taylor Morrison Home Corp.,
Class A(b)		      999,665   
  36,507       Tempur Sealy International,
Inc.(b)(c)		      1,973,933   
  5,126       Tesla Motors, Inc.(b)(c)      1,013,564   
  31,527       Texas Roadhouse, Inc.      1,277,474   
  11,761       Tile Shop Holdings, Inc. (The)(b)      199,349   
  26,506       Tilly’s, Inc., Class A(b)      245,976   
  33,229       TopBuild Corp.(b)      1,001,190   
  60,398       Tower International, Inc.      1,310,637   
  129,090       TRI Pointe Homes, Inc.(b)      1,398,045   
  25,076       TripAdvisor, Inc., Class A(b)      1,616,900   
  91,259       Tuesday Morning Corp.(b)      451,732   
  29,192       Unifi, Inc.(b)      839,270   
  10,340       Universal Electronics, Inc.(b)      725,351   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Consumer Discretionary (continued)   
  87,084       Universal Technical Institute, Inc.    $ 132,368   
  13,011       Vail Resorts, Inc.      2,074,474   
  23,003       Vera Bradley, Inc.(b)      307,550   
  32,100       Vince Holding Corp.(b)(c)      174,945   
  34,295       Vitamin Shoppe, Inc.(b)      859,090   
  80,596       VOXX International Corp., Class A(b)      330,444   
  4,660       Wayfair, Inc., Class A(b)(c)      155,318   
  21,196       WCI Communities, Inc.(b)      490,687   
  65,141       Weight Watchers International,
Inc.(b)(c)		      669,649   
  22,304       West Marine, Inc.(b)      178,432   
  82,139       William Lyon Homes,
Class A(b)(c)		      1,467,003   
  29,533       Winnebago Industries, Inc.      834,307   
  115,874       Wolverine World Wide, Inc.      2,473,910   
  29,053       World Wrestling Entertainment, Inc., Class A(c)      513,657   
  25,320       ZAGG, Inc.(b)      164,580   
  30,179       Zumiez, Inc.(b)(c)      671,483   
     

 

 

  
        205,728,269   
     

 

 

  
   Consumer Staples—3.1%   
  53,834       Adecoagro SA (Argentina)(b)      592,174   
  26,300       Alliance One International, Inc.(b)      390,555   
  12,799       Amira Nature Foods Ltd.
(United Arab Emirates)(b)(c)		      100,344   
  40,056       B&G Foods, Inc.      1,698,374   
  21,939       Blue Buffalo Pet Products, Inc.(b)      551,108   
  3,173       Boston Beer Co., Inc. (The),
Class A(b)		      492,608   
  9,516       Calavo Growers, Inc.      562,871   
  16,947       Cal-Maine Foods, Inc.      655,002   
  23,105       Central Garden & Pet Co.(b)(c)      561,914   
  82,293       Central Garden & Pet Co., Class A(b)      1,920,719   
  21,300       Chefs’ Warehouse, Inc.
(The)(b)		      242,820   
  2,673       Coca-Cola Bottling Co. Consolidated      377,695   
  22,991       Coty, Inc., Class A      528,563   
  48,726       Fresh Del Monte Produce, Inc.      2,940,614   
  19,385       Ingles Markets, Inc., Class A      765,707   
  14,812       Inter Parfums, Inc.      482,871   
  32,701       Inventure Foods, Inc.(b)      276,650   
  7,137       J & J Snack Foods Corp.      871,785   
  6,256       John B. Sanfilippo & Son, Inc.      317,054   
  14,965       Lancaster Colony Corp.      1,955,177   
  39,214       Landec Corp.(b)      519,585   
  10,630       Medifast, Inc.      436,468   
  7,368       National Beverage Corp.(b)(c)      348,064   
  10,404       Nutraceutical International Corp.(b)      299,635   
  22,433       Omega Protein Corp.(b)      500,256   
  7,872       Orchids Paper Products Co.(c)      201,996   
  41,244       Performance Food Group
Co.(b)		      989,856   
  77,049       Pilgrim’s Pride Corp.      1,682,750   
  28,657       Post Holdings, Inc.(b)      2,184,523   
  13,987       PriceSmart, Inc.      1,272,118   
  12,525       Revlon, Inc., Class A(b)      425,850   
  21,066       Sanderson Farms, Inc.      1,895,519   
  14,765       Seneca Foods Corp., Class A(b)      434,091   
  57,016       Smart & Final Stores, Inc.(b)      684,192   
  51,179       Snyder’s-Lance, Inc.      1,820,437   
  100,554       SpartanNash Co.      2,815,512   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   20  

 

 

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Consumer Staples (continued)   
  15,258       Spectrum Brands Holdings, Inc.    $ 2,063,492   
  71,930       Sprouts Farmers Market, Inc.(b)      1,593,249   
  131,867       SunOpta, Inc. (Canada)(b)(c)      876,916   
  13,409       Tootsie Roll Industries, Inc., Class A(c)      475,349   
  3,189       USANA Health Sciences, Inc.(b)      409,787   
  77,884       Vector Group Ltd.(c)      1,630,891   
  18,961       Village Super Market, Inc., Class A      566,934   
  5,141       WD-40 Co.      548,159   
  28,538       Weis Markets, Inc.      1,587,569   
     

 

 

  
        42,547,803   
     

 

 

  
   Energy—7.7%   
  304,219       Abraxas Petroleum Corp.(b)      492,835   
  121,476       Aegean Marine Petroleum Network, Inc. (Greece)      1,044,694   
  128,240       Alon USA Energy, Inc.      1,033,614   
  45,163       Antero Resources Corp.(b)      1,195,465   
  683,820       Approach Resources, Inc.(b)(c)      1,948,887   
  386,338       Archrock, Inc.      4,481,521   
  23,879       Ardmore Shipping Corp. (Ireland)      139,692   
  640,448       Bill Barrett Corp.(b)(c)      3,323,925   
  559,593       Bonanza Creek Energy,
Inc.(b)(c)		      524,451   
  137,958       Bristow Group, Inc.      1,380,960   
  87,129       Callon Petroleum Co.(b)      1,131,806   
  62,739       CARBO Ceramics, Inc.(c)      382,708   
  68,748       Carrizo Oil & Gas, Inc.(b)      2,325,745   
  47,447       Clayton Williams Energy, Inc.(b)      4,142,598   
  144,699       Clean Energy Fuels Corp.(b)(c)      594,713   
  932,874       Cloud Peak Energy, Inc.(b)(c)      5,746,504   
  562,976       Cobalt International Energy, Inc.(b)      531,506   
  215,985       Comstock Resources, Inc.(b)(c)      2,108,014   
  93,447       Contango Oil & Gas Co.(b)      731,690   
  17,453       Core Laboratories NV(c)      1,692,417   
  76,832       CVR Energy, Inc.(c)      1,018,792   
  99,012       DHT Holdings, Inc.      402,979   
  15,985       Diamondback Energy, Inc.(b)      1,459,271   
  44,906       Dorian LPG Ltd.(b)      252,821   
  34,139       Dril-Quip, Inc.(b)      1,621,602   
  231,794       Eclipse Resources Corp.(b)(c)      635,116   
  625,274       EP Energy Corp., Class A(b)(c)      2,225,975   
  78,800       Era Group, Inc.(b)      594,940   
  993,265       EXCO Resources, Inc.(b)(c)      1,072,726   
  123,548       Fairmount Santrol Holdings, Inc.(b)(c)      1,061,277   
  152,196       Forum Energy Technologies, Inc.(b)      2,739,528   
  22,700       Frank’s International NV(c)      255,375   
  44,926       Frontline Ltd. (Norway)(c)      322,119   
  54,063       GasLog Ltd. (Monaco)(c)      829,867   
  203,798       Gastar Exploration, Inc.(b)(c)      220,102   
  56,748       Geospace Technologies
Corp.(b)		      1,045,866   
  123,654       Green Plains, Inc.      3,215,004   
  39,016       Gulf Island Fabrication, Inc.      390,160   
  20,456       Gulfmark Offshore, Inc.,
Class A(b)(c)		      23,524   
  726,992       Helix Energy Solutions Group,
Inc.(b)		      6,339,370   
  272,862       Hornbeck Offshore Services,
Inc.(b)(c)		      1,083,262   
  47,685       Ion Geophysical Corp.(b)(c)      281,341   
  189,982       Jones Energy, Inc., Class A(b)(c)      778,926   
  177,473       Kosmos Energy Ltd.(b)      924,634   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Energy (continued)   
  344,552       Laredo Petroleum, Inc.(b)(c)    $ 4,107,060   
  42,186       Matador Resources Co.(b)      920,077   
  42,447       Matrix Service Co.(b)      751,312   
  18,136       Natural Gas Services Group,
Inc.(b)		      393,551   
  10,089       Navigator Holdings Ltd. (United Kingdom)(b)(c)      76,676   
  335,504       Newpark Resources, Inc.(b)      2,113,675   
  100,304       Nordic American Tankers
Ltd.(c)		      819,484   
  97,436       North Atlantic Drilling Ltd. (Norway)(b)(c)      248,462   
  364,680       Northern Oil and Gas, Inc.(b)(c)      765,828   
  1,022,297       Ocean Rig UDW, Inc.
(Cyprus)(b)(c)		      1,083,635   
  43,276       Pacific Drilling SA(b)(c)      152,332   
  174,780       Pacific Ethanol, Inc.(b)      1,302,111   
  12,893       Panhandle Oil and Gas, Inc., Class A      232,074   
  567,950       Parker Drilling Co.(b)      1,135,900   
  47,367       Parsley Energy, Inc.,
Class A(b)		      1,558,374   
  29,310       PDC Energy, Inc.(b)      1,797,582   
  28,120       PHI, Inc.(b)      438,110   
  722,580       Pioneer Energy Services Corp.(b)      2,565,159   
  164,736       Renewable Energy Group, Inc.(b)      1,441,440   
  9,054       REX American Resources Corp.(b)      715,175   
  614,833       Rex Energy Corp.(b)      282,639   
  107,984       Rice Energy, Inc.(b)      2,385,367   
  13,951       RigNet, Inc.(b)      209,265   
  78,242       RPC, Inc.(b)(c)      1,351,239   
  44,682       RSP Permian, Inc.(b)      1,613,020   
  279,908       Sanchez Energy Corp.(b)(c)      1,783,014   
  212,069       Scorpio Tankers, Inc. (Monaco)      812,224   
  82,028       SemGroup Corp., Class A      2,645,403   
  119,409       Ship Finance International Ltd. (Norway)(c)      1,510,524   
  35,800       Synergy Resources Corp.(b)      244,872   
  110,627       Teekay Tankers Ltd., Class A (Bermuda)      235,635   
  101,620       Tesco Corp.      696,097   
  182,447       TETRA Technologies, Inc.(b)      994,336   
  521,374       Triangle Petroleum Corp.(b)      120,333   
  192,023       Tsakos Energy Navigation Ltd. (Greece)(c)      864,103   
  59,022       US Silica Holdings, Inc.      2,726,226   
  203,844       VAALCO Energy, Inc.(b)      161,037   
  614,106       W&T Offshore, Inc.(b)(c)      890,454   
  113,163       Westmoreland Coal Co.(b)      1,004,887   
  220,525       Willbros Group, Inc.(b)      335,198   
     

 

 

  
        107,232,212   
     

 

 

  
   Financials—17.8%   
  18,768       1st Source Corp.      648,622   
  78,106       AG Mortgage Investment Trust, Inc. REIT      1,212,986   
  197,911       Altisource Residential Corp. REIT      1,992,964   
  19,845       American National Insurance Co.      2,325,040   
  16,155       Ameris Bancorp      586,426   
  11,369       AMERISAFE, Inc.      632,116   
  50,633       AmTrust Financial Services, Inc.      1,336,205   
  306,768       Anworth Mortgage Asset Corp. REIT      1,506,231   
  42,814       Apollo Commercial Real Estate Finance, Inc. REIT      724,413   
  48,896       Ares Commercial Real Estate Corp. REIT      641,516   
  40,334       Argo Group International Holdings Ltd.      2,242,570   
  55,759       Arlington Asset Investment Corp., Class A(c)      796,239   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   21  

 

 

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials (continued)   
  53,568       ARMOUR Residential REIT, Inc. REIT(c)    $ 1,214,387   
  13,689       Arrow Financial Corp.      432,572   
  12,355       Artisan Partners Asset Management, Inc., Class A      321,230   
  104,794       Astoria Financial Corp.      1,533,136   
  13,462       Baldwin & Lyons, Inc., Class B      331,165   
  27,942       Banc of California, Inc.(c)      371,629   
  7,993       BancFirst Corp.      573,098   
  50,323       Banco Latinoamericano de Comercio Exterior SA, Class E (Panama)      1,357,211   
  92,411       Bancorp, Inc. (The)(b)      575,721   
  83,652       BancorpSouth, Inc.      1,965,822   
  32,666       Bank Mutual Corp.      254,795   
  5,019       Bank of Marin Bancorp      254,714   
  28,185       Bank of the Ozarks, Inc.      1,041,718   
  10,754       Banner Corp.      485,436   
  53,749       Beneficial Bancorp, Inc.      779,360   
  28,844       Berkshire Hills Bancorp, Inc.      852,340   
  182,487       BGC Partners, Inc., Class A      1,567,563   
  57,900       Blackstone Mortgage Trust, Inc., Class A REIT      1,748,580   
  28,639       Blue Hills Bancorp, Inc.      445,336   
  17,175       BNC Bancorp      427,657   
  27,093       BofI Holding, Inc.(b)(c)      504,743   
  29,114       BOK Financial Corp.(c)      2,067,676   
  85,275       Boston Private Financial Holdings, Inc.      1,121,366   
  8,832       Bridge Bancorp, Inc.      243,322   
  89,313       Brookline Bancorp, Inc.      1,143,206   
  13,714       Bryn Mawr Bank Corp.      430,620   
  70,503       Calamos Asset Management, Inc., Class A      455,449   
  14,850       Camden National Corp.      490,347   
  7,975       Capital Bank Financial Corp., Class A      261,181   
  204,220       Capstead Mortgage Corp. REIT      1,942,132   
  24,368       Cardinal Financial Corp.      640,391   
  56,515       Cathay General Bancorp      1,692,624   
  28,333       CBOE Holdings, Inc.      1,790,929   
  27,091       Centerstate Banks, Inc.      506,060   
  24,130       Central Pacific Financial Corp.      618,452   
  16,629       Charter Financial Corp.      210,357   
  32,732       Chemical Financial Corp.      1,405,839   
  11,688       Cherry Hill Mortgage Investment Corp. REIT      188,878   
  16,335       City Holding Co.      853,830   
  20,481       Clifton Bancorp, Inc.      313,154   
  58,477       CNA Financial Corp.      2,138,504   
  25,177       CoBiz Financial, Inc.      320,251   
  16,523       Cohen & Steers, Inc.      614,325   
  114,294       Colony Capital, Inc., Class A REIT      2,172,729   
  49,730       Columbia Banking System, Inc.      1,642,085   
  37,351       Community Bank System, Inc.      1,759,606   
  18,114       Community Trust Bancorp, Inc.      662,067   
  22,752       ConnectOne Bancorp, Inc.      417,499   
  62,498       Consumer Portfolio Services, Inc.(b)      279,991   
  177,031       Cowen Group, Inc., Class A(b)(c)      575,351   
  3,737       Credit Acceptance Corp.(b)(c)      687,982   
  22,352       Customers Bancorp, Inc.(b)      605,069   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials (continued)   
  79,911       CVB Financial Corp.    $ 1,340,907   
  282,758       CYS Investments, Inc. REIT      2,437,374   
  2,131       Diamond Hill Investment Group, Inc.      387,863   
  36,980       Dime Community Bancshares, Inc.      599,076   
  128,971       Dynex Capital, Inc. REIT      886,031   
  13,125       Eagle Bancorp, Inc.(b)      645,094   
  16,971       eHealth, Inc.(b)      132,883   
  33,362       Employers Holdings, Inc.      1,045,899   
  55,115       Encore Capital Group, Inc.(b)(c)      1,094,033   
  103,854       Enova International, Inc.(b)      976,228   
  11,337       Enstar Group Ltd. (Bermuda)(b)      1,911,418   
  14,276       Enterprise Financial Services Corp.      472,536   
  25,565       Essent Group Ltd.(b)      675,939   
  119,751       EverBank Financial Corp.      2,312,392   
  24,574       Evercore Partners, Inc., Class A      1,320,852   
  492,118       EZCORP, Inc., Class A(b)      4,798,150   
  12,208       FactSet Research Systems, Inc.      1,888,822   
  13,259       FBL Financial Group, Inc., Class A      839,295   
  13,687       FBR & Co.      190,249   
  5,690       FCB Financial Holdings, Inc., Class A(b)      212,237   
  11,986       Federal Agricultural Mortgage Corp., Class C      489,388   
  6,906       Federated National Holding Co.      123,686   
  19,277       Fidelity & Guaranty Life(c)      426,022   
  17,068       Fidelity Southern Corp.      311,150   
  15,808       Financial Engines, Inc.      437,091   
  11,457       Financial Institutions, Inc.      307,620   
  506,221       First BanCorp/Puerto Rico(b)      2,596,914   
  23,104       First Bancorp/Southern Pines NC      456,766   
  6,871       First Business Financial Services, Inc.      129,518   
  6,607       First Citizens BancShares, Inc., Class A      1,922,637   
  99,155       First Commonwealth Financial Corp.      1,007,415   
  22,971       First Community Bancshares, Inc.      520,293   
  8,195       First Defiance Financial Corp.      323,539   
  90,629       First Financial Bancorp      1,948,523   
  38,240       First Financial Bankshares, Inc.(c)      1,384,288   
  13,397       First Financial Corp.      537,220   
  23,065       First Interstate BancSystem, Inc., Class A      735,773   
  27,823       First Merchants Corp.      783,217   
  70,825       First Midwest Bancorp, Inc.      1,367,631   
  15,241       First NBC Bank Holding Co.(b)      82,301   
  8,852       First of Long Island Corp. (The)      282,821   
  24,470       Firstcash, Inc.      1,154,984   
  37,436       Five Oaks Investment Corp. REIT      195,416   
  28,559       Flagstar Bancorp, Inc.(b)      783,373   
  33,921       Flushing Financial Corp.      726,588   
  203,787       FNFV Group(b)      2,455,633   
  43,825       FXCM, Inc., Class A(b)(c)      341,835   
  46,127       Gain Capital Holdings, Inc.      212,184   
  71,634       Glacier Bancorp, Inc.      2,024,377   
  12,841       Global Indemnity PLC, Class A(b)      385,744   
  11,336       Great Southern Bancorp, Inc.      468,744   
  76,265       Great Western Bancorp, Inc.      2,458,784   
  25,025       Green Bancorp, Inc.(b)      259,009   
  41,378       Green Dot Corp., Class A(b)      918,592   
  47,025       Greenhill & Co., Inc.      1,102,736   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   22  

 

 

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials (continued)   
  59,844       Greenlight Capital Re Ltd., Class A(b)    $ 1,190,896   
  23,566       Hanmi Financial Corp.      589,150   
  13,371       Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT      305,661   
  10,916       HCI Group, Inc.      295,933   
  18,239       Heartland Financial USA, Inc.      683,051   
  25,518       Heritage Financial Corp.      469,531   
  20,042       Heritage Insurance Holdings, Inc.      236,295   
  68,959       Hilltop Holdings, Inc.(b)      1,703,287   
  47,807       Home BancShares, Inc.      1,028,329   
  17,917       HomeStreet, Inc.(b)      493,613   
  22,459       HomeTrust Bancshares, Inc.(b)      417,737   
  67,573       Hope Bancorp, Inc.      1,090,628   
  58,772       Horace Mann Educators Corp.      2,112,853   
  9,284       Horizon Bancorp      269,236   
  10,197       Houlihan Lokey, Inc., Class A      248,501   
  41,919       IBERIABANK Corp.      2,751,982   
  17,215       Independent Bank Corp.      289,212   
  18,834       Independent Bank Corp./MA      1,038,695   
  9,540       Independent Bank Group, Inc.      460,782   
  15,580       Infinity Property & Casualty Corp.      1,276,781   
  12,363       Interactive Brokers Group, Inc., Class A      410,328   
  74,170       International Bancshares Corp.      2,288,144   
  17,518       INTL FCStone, Inc.(b)      628,896   
  32,742       Investment Technology Group, Inc.      501,280   
  22,819       James River Group Holdings Ltd.      858,907   
  99,888       KCG Holdings, Inc., Class A(b)      1,274,571   
  18,632       Lakeland Financial Corp.      686,403   
  37,058       LegacyTexas Financial Group, Inc.      1,267,754   
  99,309       Maiden Holdings Ltd.      1,355,568   
  19,593       MainSource Financial Group, Inc.      489,041   
  6,746       MarketAxess Holdings, Inc.      1,017,027   
  13,389       Marlin Business Services Corp.      234,308   
  52,458       MB Financial, Inc.      1,908,947   
  16,643       Mercantile Bank Corp.      458,015   
  40,962       Meridian Bancorp, Inc.      653,344   
  5,489       Meta Financial Group, Inc.      402,069   
  209,462       MGIC Investment Corp.(b)      1,709,210   
  20,485       MidSouth Bancorp, Inc.      209,971   
  7,560       Morningstar, Inc.      533,963   
  100,327       Mtge Investment Corp. REIT      1,710,575   
  33,215       National Bank Holdings Corp., Class A      808,453   
  10,631       National Interstate Corp.      344,444   
  4,331       National Western Life Group, Inc., Class A      932,897   
  82,515       Nationstar Mortgage Holdings, Inc.(b)(c)      1,246,802   
  14,006       Navigators Group, Inc. (The)      1,305,359   
  49,858       NBT Bancorp, Inc.      1,680,713   
  27,335       Nelnet, Inc., Class A      1,070,985   
  255,577       New York Mortgage Trust, Inc. REIT(c)      1,510,460   
  197,252       Newcastle Investment Corp. REIT      867,909   
  65,735       NMI Holdings, Inc., Class A(b)      502,873   
  40,510       Northfield Bancorp, Inc.      666,390   
  8,880       Northrim Bancorp, Inc.      218,004   
  19,197       NorthStar Asset Management Group, Inc.      262,999   
  156,649       Northwest Bancshares, Inc.      2,465,655   
  11,463       OceanFirst Financial Corp.      237,055   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials (continued)   
  343,625       Ocwen Financial Corp.(b)    $ 1,467,279   
  148,352       OFG Bancorp      1,579,949   
  159,830       Old National Bancorp      2,349,501   
  64,700       OneBeacon Insurance Group Ltd., Class A      888,978   
  82,258       OneMain Holdings, Inc.(b)      2,331,192   
  32,885       Oppenheimer Holdings, Inc., Class A      460,390   
  12,852       Opus Bank      257,683   
  15,892       Orchid Island Capital, Inc. REIT(c)      167,343   
  48,936       Oritani Financial Corp.      765,848   
  16,340       Pacific Continental Corp.      280,231   
  11,692       Pacific Premier Bancorp, Inc.(b)      302,238   
  15,801       Park National Corp.      1,531,591   
  14,371       Peapack-Gladstone Financial Corp.      303,947   
  20,486       Peoples Bancorp, Inc.      507,438   
  52,875       PICO Holdings, Inc.(b)      639,788   
  15,119       Pinnacle Financial Partners, Inc.      780,140   
  26,564       Piper Jaffray Cos.(b)      1,502,194   
  13,102       PJT Partners, Inc., Class A(c)      360,829   
  58,470       PRA Group, Inc.(b)      1,865,193   
  8,832       Preferred Bank      334,909   
  48,905       Primerica, Inc.      2,675,104   
  47,575       PrivateBancorp, Inc.      2,152,293   
  74,450       Provident Financial Services, Inc.      1,689,271   
  143,994       Radian Group, Inc.      1,956,878   
  180,802       Redwood Trust, Inc. REIT(c)      2,542,076   
  28,821       Regional Management Corp.(b)      641,844   
  27,073       Renasant Corp.      913,443   
  13,371       Republic Bancorp, Inc., Class A      423,058   
  103,808       Resource Capital Corp. REIT      1,286,181   
  28,906       S&T Bancorp, Inc.      907,359   
  16,376       Safeguard Scientifics, Inc.(b)      193,237   
  23,249       Safety Insurance Group, Inc.      1,573,957   
  25,116       Sandy Spring Bancorp, Inc.      796,177   
  15,145       Seacoast Banking Corp. of Florida(b)      263,674   
  53,736       SEI Investments Co.      2,382,117   
  62,564       Selective Insurance Group, Inc.      2,311,740   
  12,922       Simmons First National Corp., Class A      637,701   
  16,823       South State Corp.      1,233,967   
  29,813       Southside Bancshares, Inc.      972,500   
  17,095       Southwest Bancorp, Inc.      318,822   
  22,119       State Auto Financial Corp.      506,525   
  24,381       State Bank Financial Corp.      537,601   
  54,761       Sterling Bancorp      985,698   
  36,079       Stewart Information Services Corp.      1,621,751   
  15,425       Stock Yards Bancorp, Inc.      525,993   
  5,734       Stonegate Bank      198,626   
  9,955       Territorial Bancorp, Inc.      283,917   
  52,465       Texas Capital Bancshares, Inc.(b)      3,111,175   
  33,104       TFS Financial Corp.      589,913   
  69,841       Third Point Reinsurance Ltd. (Bermuda)(b)      820,632   
  12,302       Tompkins Financial Corp.      975,303   
  34,879       TowneBank      864,999   
  20,895       TriCo Bancshares      549,956   
  23,754       TriState Capital Holdings, Inc.(b)      419,258   
  15,838       Triumph Bancorp, Inc.(b)      294,587   
  128,041       TrustCo Bank Corp. NY      896,287   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   23  

 

 

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials (continued)   
  93,370       Trustmark Corp.    $ 2,584,482   
  38,788       UMB Financial Corp.      2,406,795   
  44,882       Union Bankshares Corp.      1,253,554   
  56,289       United Bankshares, Inc.(c)      2,122,095   
  26,880       United Community Banks, Inc.      579,802   
  49,838       United Financial Bancorp, Inc.      733,117   
  21,978       United Fire Group, Inc.      868,571   
  10,489       United Insurance Holdings Corp.      152,091   
  21,855       Universal Insurance Holdings, Inc.(c)      465,512   
  25,133       Univest Corp. of Pennsylvania(c)      596,909   
  8,750       Virtu Financial, Inc., Class A      112,000   
  5,342       Virtus Investment Partners, Inc.      573,197   
  24,920       Walker & Dunlop, Inc.(b)      599,824   
  269,771       Walter Investment Management Corp.(b)(c)      1,348,855   
  14,158       Washington Trust Bancorp, Inc.      649,852   
  29,107       Waterstone Financial, Inc.      493,364   
  34,259       WesBanco, Inc.      1,127,464   
  24,920       Westamerica Bancorp.(c)      1,235,035   
  38,231       Western Alliance Bancorp(b)      1,428,310   
  137,989       Western Asset Mortgage Capital Corp. REIT(c)      1,397,829   
  6,351       Westwood Holdings Group, Inc.      327,394   
  51,094       Wintrust Financial Corp.      2,756,521   
  32,309       World Acceptance Corp.(b)(c)      1,535,324   
  19,397       WSFS Financial Corp.      679,865   
  13,921       ZAIS Financial Corp. REIT      186,541   
     

 

 

  
        247,379,959   
     

 

 

  
   Health Care—6.7%   
  9,162       Abaxis, Inc.      437,394   
  3,752       ABIOMED, Inc.(b)      393,922   
  15,923       Acadia Healthcare Co., Inc.(b)      572,591   
  9,428       ACADIA Pharmaceuticals, Inc.(b)(c)      219,767   
  36,415       Accuray, Inc.(b)      178,433   
  21,752       Aceto Corp.      398,714   
  18,714       Acorda Therapeutics, Inc.(b)      331,238   
  10,850       Adamas Pharmaceuticals, Inc.(b)      149,079   
  3,827       Agios Pharmaceuticals, Inc.(b)(c)      183,084   
  26,828       Air Methods Corp.(b)      709,601   
  19,103       Akorn, Inc.(b)      457,517   
  12,424       Albany Molecular Research, Inc.(b)      193,690   
  14,786       Align Technology, Inc.(b)      1,270,413   
  34,907       Alkermes PLC(b)      1,759,662   
  164,191       Allscripts Healthcare Solutions, Inc.(b)      1,971,934   
  8,477       Almost Family, Inc.(b)      332,722   
  10,119       Alnylam Pharmaceuticals, Inc.(b)      360,236   
  14,762       AMAG Pharmaceuticals, Inc.(b)      379,383   
  27,347       Amedisys, Inc.(b)      1,183,031   
  25,531       AMN Healthcare Services, Inc.(b)      837,417   
  22,053       Amphastar Pharmaceuticals, Inc.(b)      400,041   
  8,878       Analogic Corp.      726,664   
  45,111       AngioDynamics, Inc.(b)      719,069   
  5,765       Anika Therapeutics, Inc.(b)      255,735   
  5,616       Aptevo Therapeutics, Inc.(b)      12,411   
  5,758       athenahealth, Inc.(b)      594,917   
  776       Atrion Corp.      340,780   
  17,507       BioMarin Pharmaceutical, Inc.(b)      1,409,664   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Health Care (continued)   
  270,077       BioScrip, Inc.(b)(c)    $ 726,507   
  15,157       Bio-Techne Corp.      1,576,176   
  7,293       Bluebird Bio, Inc.(b)(c)      348,241   
  52,871       Bruker Corp.      1,083,327   
  13,035       Cambrex Corp.(b)      525,311   
  6,215       Cantel Medical Corp.      442,694   
  23,210       Capital Senior Living Corp.(b)      370,664   
  52,115       Catalent, Inc.(b)      1,188,743   
  26,092       Celldex Therapeutics, Inc.(b)(c)      82,190   
  15,561       Cepheid, Inc.(b)      823,177   
  21,887       Charles River Laboratories International, Inc.(b)      1,660,786   
  8,960       Chemed Corp.      1,267,123   
  38,178       Chimerix, Inc.(b)      154,621   
  2,673       China Biologic Products, Inc. (China)(b)      315,708   
  23,830       Civitas Solutions, Inc.(b)      407,493   
  10,609       Clovis Oncology, Inc.(b)      308,510   
  8,494       Computer Programs & Systems, Inc.(c)      221,693   
  25,854       CONMED Corp.      1,034,160   
  6,930       CorVel Corp.(b)      239,432   
  24,716       Cross Country Healthcare, Inc.(b)      276,078   
  17,495       CryoLife, Inc.      297,415   
  10,508       Cynosure, Inc., Class A(b)      448,166   
  31,444       Depomed, Inc.(b)      703,088   
  13,073       Diplomat Pharmacy, Inc.(b)(c)      302,901   
  11,235       Emergent BioSolutions, Inc.(b)      300,199   
  26,637       Ensign Group, Inc. (The)      491,985   
  33,644       Exact Sciences Corp.(b)(c)      524,174   
  11,802       Exactech, Inc.(b)      285,018   
  8,273       FibroGen, Inc.(b)      136,918   
  126,126       Five Star Quality Care, Inc.(b)      353,153   
  30,119       Globus Medical, Inc., Class A(b)      666,533   
  45,256       Haemonetics Corp.(b)      1,512,003   
  56,823       Harvard Bioscience, Inc.(b)      136,375   
  8,676       HealthStream, Inc.(b)      233,992   
  56,851       Healthways, Inc.(b)      1,409,905   
  43,868       Hill-Rom Holdings, Inc.      2,430,726   
  80,041       HMS Holdings Corp.(b)      1,686,464   
  24,200       Horizon Pharma PLC(b)      404,624   
  25,173       ICON PLC(b)      2,020,888   
  7,665       ICU Medical, Inc.(b)      1,067,735   
  23,000       IDEXX Laboratories, Inc.(b)      2,464,220   
  45,620       Impax Laboratories, Inc.(b)      916,962   
  13,969       INC Research Holdings, Inc., Class A(b)      638,383   
  28,680       Infinity Pharmaceuticals, Inc.(b)      34,703   
  5,562       Insulet Corp.(b)      206,461   
  28,060       Integer Holdings Corp.(b)      618,723   
  15,896       Integra LifeSciences Holdings Corp.(b)      1,263,891   
  72,267       Invacare Corp.      661,243   
  7,148       Ionis Pharmaceuticals, Inc.(b)(c)      185,705   
  15,060       Jazz Pharmaceuticals PLC(b)      1,648,618   
  5,835       Juno Therapeutics, Inc.(b)(c)      141,732   
  11,819       K2M Group Holdings, Inc.(b)      201,750   
  4,377       Kite Pharma, Inc.(b)(c)      193,857   
  12,871       Landauer, Inc.      559,889   
  9,946       Lannett Co., Inc.(b)(c)      217,817   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   24  

 

 

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Health Care (continued)   
  12,763       LHC Group, Inc.(b)    $ 437,388   
  8,489       LivaNova PLC(b)      481,157   
  22,567       Luminex Corp.(b)      470,071   
  27,036       Masimo Corp.(b)      1,486,980   
  33,530       Medicines Co. (The)(b)      1,104,814   
  9,748       Medidata Solutions, Inc.(b)      467,807   
  34,845       Meridian Bioscience, Inc.      573,200   
  38,829       Merit Medical Systems, Inc.(b)      852,297   
  17,429       Momenta Pharmaceuticals, Inc.(b)      194,333   
  34,993       Myriad Genetics, Inc.(b)      689,712   
  14,215       Natus Medical, Inc.(b)      559,360   
  10,295       Neogen Corp.(b)      542,444   
  4,404       Neurocrine Biosciences, Inc.(b)      192,763   
  33,386       Novavax, Inc.(b)(c)      50,747   
  24,650       NuVasive, Inc.(b)      1,472,345   
  8,439       Nuvectra Corp.(b)      45,317   
  19,663       NxStage Medical, Inc.(b)      447,137   
  20,771       Omnicell, Inc.(b)      677,654   
  42,367       OPKO Health, Inc.(b)(c)      399,097   
  27,609       OraSure Technologies, Inc.(b)      207,344   
  15,159       Orthofix International NV(b)      555,577   
  2,382       Pacira Pharmaceuticals, Inc.(b)      75,748   
  31,749       PAREXEL International Corp.(b)      1,849,697   
  52,067       PharMerica Corp.(b)      1,239,195   
  5,674       Phibro Animal Health Corp., Class A      147,240   
  7,970       Portola Pharmaceuticals, Inc.(b)      144,895   
  33,794       PRA Health Sciences, Inc.(b)      1,798,517   
  18,883       Premier, Inc., Class A(b)      601,235   
  25,698       Prestige Brands Holdings, Inc.(b)      1,163,605   
  5,725       Prothena Corp. PLC (Ireland)(b)      273,770   
  18,814       Providence Service Corp. (The)(b)      761,309   
  7,904       PTC Therapeutics, Inc.(b)(c)      49,084   
  53,103       Quality Systems, Inc.      684,498   
  17,251       Quidel Corp.(b)      332,944   
  89,138       RadNet, Inc.(b)      619,509   
  66,327       RTI Surgical, Inc.(b)      169,134   
  27,708       Sangamo BioSciences, Inc.(b)      98,363   
  12,604       Sarepta Therapeutics, Inc.(b)      494,581   
  20,065       SciClone Pharmaceuticals, Inc.(b)      179,582   
  5,940       Seattle Genetics, Inc.(b)      307,098   
  16,662       Spectranetics Corp. (The)(b)      361,565   
  58,752       Spectrum Pharmaceuticals, Inc.(b)      207,982   
  26,631       Surgery Partners, Inc.(b)      428,759   
  19,648       Surgical Care Affiliates, Inc.(b)      840,738   
  32,552       Syneron Medical Ltd. (Israel)(b)      244,140   
  5,769       Taro Pharmaceutical Industries Ltd.(b)(c)      585,611   
  54,271       Team Health Holdings, Inc.(b)      2,325,512   
  71,231       Triple-S Management Corp., Class B(b)      1,473,057   
  7,006       U.S. Physical Therapy, Inc.      398,641   
  106,877       Universal American Corp.(b)      802,646   
  7,735       Vascular Solutions, Inc.(b)      352,716   
  13,014       Veeva Systems, Inc., Class A(b)      505,594   
  14,636       Vertex Pharmaceuticals, Inc.(b)      1,110,287   
  80,270       VWR Corp.(b)      2,208,228   
  31,193       West Pharmaceutical Services, Inc.      2,371,604   
  28,906       Wright Medical Group NV(b)      633,330   
     

 

 

  
        92,945,917   
     

 

 

  
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Industrials—17.0%   
  59,106       A.O. Smith Corp.    $ 2,669,818   
  16,218       AAON, Inc.      485,729   
  79,905       AAR Corp.      2,570,544   
  209,926       ACCO Brands Corp.(b)      2,330,179   
  200,326       Accuride Corp.(b)      490,799   
  66,749       Actuant Corp., Class A      1,488,503   
  36,113       Advanced Drainage Systems, Inc.      689,758   
  16,107       Advisory Board Co. (The)(b)      641,059   
  70,847       Aegion Corp.(b)      1,311,378   
  40,237       Aerojet Rocketdyne Holdings, Inc.(b)      708,171   
  12,061       Aerovironment, Inc.(b)      289,343   
  93,733       Air Transport Services Group, Inc.(b)      1,240,088   
  111,700       Aircastle Ltd.      2,295,435   
  11,370       Alamo Group, Inc.      738,140   
  18,444       Alaska Air Group, Inc.      1,332,026   
  19,776       Albany International Corp., Class A      805,872   
  571       Allegiant Travel Co.      78,741   
  35,036       Allegion PLC      2,236,698   
  27,252       Altra Industrial Motion Corp.      803,934   
  5,776       AMERCO      1,862,125   
  10,502       American Railcar Industries, Inc.(c)      386,264   
  4,169       American Woodmark Corp.(b)      311,424   
  16,178       Apogee Enterprises, Inc.      659,253   
  44,842       Applied Industrial Technologies, Inc.      2,277,974   
  72,778       ARC Document Solutions, Inc.(b)      249,629   
  58,404       ArcBest Corp.      1,162,240   
  8,356       Argan, Inc.      475,039   
  19,475       Astec Industries, Inc.      1,078,136   
  12,119       Astronics Corp.(b)      448,645   
  34,215       Atento SA (Spain)(b)      307,935   
  5,166       Atlas Air Worldwide Holdings, Inc.(b)      216,197   
  18,513       AZZ, Inc.      985,817   
  50,719       B/E Aerospace, Inc.      3,018,795   
  83,280       Babcock & Wilcox Enterprises, Inc.(b)      1,310,827   
  43,683       Barnes Group, Inc.      1,740,331   
  6,387       Barrett Business Services, Inc.      286,329   
  59,418       Beacon Roofing Supply, Inc.(b)      2,497,933   
  23,379       BMC Stock Holdings, Inc.(b)      386,922   
  53,925       Brady Corp., Class A      1,784,917   
  69,823       Briggs & Stratton Corp.      1,300,104   
  53,647       Builders FirstSource, Inc.(b)      518,766   
  63,884       BWX Technologies, Inc.      2,505,530   
  11,191       Caesarstone Sdot-Yam Ltd. (Israel)(b)      395,602   
  75,051       CAI International, Inc.(b)      571,138   
  78,715       Casella Waste Systems, Inc., Class A(b)      881,608   
  68,510       CBIZ, Inc.(b)      757,035   
  94,820       CDI Corp.      583,143   
  17,545       CEB, Inc.      853,564   
  37,200       CECO Environmental Corp.      368,280   
  65,033       Celadon Group, Inc.      422,714   
  88,907       Chart Industries, Inc.(b)      2,466,280   
  20,023       CIRCOR International, Inc.      1,076,837   
  794,897       Civeo Corp.(b)      898,234   
  36,448       CLARCOR, Inc.      2,267,430   
  37,149       Columbus McKinnon Corp.      724,034   
  30,421       Comfort Systems USA, Inc.      877,646   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   25  

 

 

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Industrials (continued)   
  162,174       Commercial Vehicle Group, Inc.(b)    $ 736,270   
  29,307       Continental Building Products, Inc.(b)      599,328   
  3,755       Copa Holdings SA, Class A (Panama)      346,324   
  49,936       Copart, Inc.(b)      2,620,142   
  81,144       Costamare, Inc. (Greece)(c)      527,436   
  20,579       Covenant Transportation Group, Inc., Class A(b)      329,058   
  17,623       CRA International, Inc.(b)      548,780   
  28,334       Cubic Corp.      1,209,862   
  373,974       Diana Shipping, Inc. (Greece)(b)(c)      934,935   
  107,500       DigitalGlobe, Inc.(b)      2,698,250   
  23,313       Douglas Dynamics, Inc.      748,347   
  38,657       DryShips, Inc. (Greece)(b)      11,984   
  31,691       Ducommun, Inc.(b)      603,397   
  42,469       DXP Enterprises, Inc.(b)      925,400   
  23,714       Dycom Industries, Inc.(b)      1,824,318   
  33,968       Dynamic Materials Corp.      368,553   
  23,977       Echo Global Logistics, Inc.(b)      508,312   
  24,708       Encore Wire Corp.      843,778   
  37,906       Engility Holdings, Inc.(b)      1,089,039   
  37,101       Ennis, Inc.      543,530   
  32,570       EnPro Industries, Inc.      1,762,688   
  24,276       ESCO Technologies, Inc.      1,081,496   
  9,395       Exponent, Inc.      537,864   
  43,602       Federal Signal Corp.      535,433   
  20,632       Forward Air Corp.      852,514   
  10,438       Franklin Covey Co.(b)      191,015   
  33,335       Franklin Electric Co., Inc.      1,215,061   
  15,300       FreightCar America, Inc.      199,818   
  23,544       G&K Services, Inc., Class A      2,229,617   
  29,192       Gibraltar Industries, Inc.(b)      1,135,569   
  38,321       Global Brass & Copper Holdings, Inc.      1,099,813   
  108,209       Golden Ocean Group Ltd. (Norway)(b)(c)      393,881   
  14,007       GP Strategies Corp.(b)      362,081   
  27,046       Graco, Inc.      2,025,745   
  9,068       Graham Corp.      161,864   
  32,453       Granite Construction, Inc.      1,595,389   
  144,953       Great Lakes Dredge & Dock Corp.(b)      514,583   
  62,669       Greenbrier Cos., Inc. (The)(c)      1,974,074   
  66,752       Griffon Corp.      1,114,758   
  96,531       H&E Equipment Services, Inc.      1,346,607   
  2,698       Hawaiian Holdings, Inc.(b)      121,477   
  36,690       Healthcare Services Group, Inc.      1,356,429   
  45,292       Heartland Express, Inc.      833,373   
  9,178       HEICO Corp.      620,066   
  19,616       Heidrick & Struggles International, Inc.      362,896   
  57,440       Herman Miller, Inc.      1,596,832   
  108,527       Hill International, Inc.(b)      417,829   
  68,387       Hillenbrand, Inc.      2,075,545   
  52,086       HNI Corp.      2,117,817   
  48,456       Houston Wire & Cable Co.      259,240   
  5,810       Hurco Cos., Inc.      152,222   
  22,746       Huron Consulting Group, Inc.(b)      1,274,913   
  15,137       Hyster-Yale Materials Handling, Inc., Class A      881,125   
  31,905       ICF International, Inc.(b)      1,480,392   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Industrials (continued)   
  64,201       IHS Markit Ltd.(b)    $ 2,361,955   
  80,158       InnerWorkings, Inc.(b)      706,192   
  20,702       Insperity, Inc.      1,556,790   
  12,517       Insteel Industries, Inc.      336,707   
  49,223       Interface, Inc.      780,185   
  51,570       JetBlue Airways Corp.(b)      901,444   
  15,740       John Bean Technologies Corp.      1,256,839   
  10,406       Kadant, Inc.      537,470   
  32,257       Kaman Corp.      1,408,341   
  72,034       Kelly Services, Inc., Class A      1,349,197   
  73,418       KEYW Holding Corp. (The)(b)      770,155   
  31,293       Kforce, Inc.      542,934   
  57,182       Kimball International, Inc., Class B      714,775   
  44,550       Knight Transportation, Inc.      1,303,088   
  41,370       Knoll, Inc.      895,247   
  31,134       Korn/Ferry International      634,822   
  195,649       Kratos Defense & Security Solutions, Inc.(b)      1,099,547   
  35,305       Landstar System, Inc.      2,511,951   
  109,353       Layne Christensen Co.(b)(c)      937,155   
  37,228       LB Foster Co., Class A      461,627   
  16,523       Lennox International, Inc.      2,410,540   
  8,089       Lindsay Corp.(c)      633,369   
  24,136       LSI Industries, Inc.      207,570   
  16,647       Lydall, Inc.(b)      778,247   
  34,067       Manitex International, Inc.(b)(c)      189,072   
  29,543       Marten Transport Ltd.      605,632   
  27,132       Masonite International Corp.(b)      1,543,811   
  7,441       Matson, Inc.      297,194   
  22,087       Matthews International Corp., Class A      1,323,011   
  31,954       McGrath RentCorp      961,815   
  24,987       Mercury Systems, Inc.(b)      694,139   
  19,503       Middleby Corp. (The)(b)      2,186,481   
  15,555       Milacron Holdings Corp.(b)(c)      226,481   
  19,091       Miller Industries, Inc.      419,047   
  19,677       Mistras Group, Inc.(b)      412,036   
  36,342       Mobile Mini, Inc.      921,270   
  32,529       MSA Safety, Inc.      1,896,441   
  57,625       Mueller Industries, Inc.      1,745,461   
  110,520       Mueller Water Products, Inc., Class A      1,361,606   
  12,574       Multi-Color Corp.      816,367   
  42,294       MYR Group, Inc.(b)      1,262,053   
  10,308       National Presto Industries, Inc.(c)      899,373   
  70,729       Navigant Consulting, Inc.(b)      1,655,059   
  635,877       Navios Maritime Holdings, Inc. (Monaco)(c)      674,030   
  31,337       NCI Building Systems, Inc.(b)      451,253   
  34,511       Neff Corp., Class A(b)      312,325   
  28,995       NN, Inc.      511,762   
  31,637       Nordson Corp.      3,167,813   
  52,222       Northwest Pipe Co.(b)      684,630   
  35,506       On Assignment, Inc.(b)      1,221,761   
  116,341       Orion Group Holdings, Inc.(b)      940,035   
  16,335       Park-Ohio Holdings Corp.      521,903   
  9,437       Patrick Industries, Inc.(b)      541,212   
  20,363       PGT, Inc.(b)      199,557   
  23,516       Ply Gem Holdings, Inc.(b)      322,169   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   26  

 

 

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Industrials (continued)   
  17,389       Powell Industries, Inc.    $ 615,397   
  35,482       Primoris Services Corp.      710,704   
  5,489       Proto Labs, Inc.(b)      245,358   
  203,273       Quad Graphics, Inc., Class A      4,829,766   
  40,915       Quanex Building Products Corp.      666,915   
  49,318       Raven Industries, Inc.      1,057,871   
  12,822       RBC Bearings, Inc.(b)      914,850   
  43,154       Resources Connection, Inc.      640,837   
  83,508       Roadrunner Transportation Systems, Inc.(b)      634,661   
  37,171       Rollins, Inc.      1,145,610   
  73,784       RPX Corp.(b)      720,132   
  41,728       Saia, Inc.(b)      1,487,603   
  403,424       Scorpio Bulkers, Inc.(b)(c)      1,573,354   
  88,439       Seaspan Corp. (Hong Kong)(c)      1,093,990   
  26,629       Simpson Manufacturing Co., Inc.      1,139,721   
  46,187       SkyWest, Inc.      1,392,538   
  11,013       SolarCity Corp.(b)(c)      215,855   
  17,297       Sparton Corp.(b)      413,917   
  2,979       Spirit Airlines, Inc.(b)      142,783   
  108,750       SPX Corp.(b)      2,067,338   
  8,637       Standex International Corp.      659,867   
  136,274       Steelcase, Inc., Class A      1,819,258   
  75,242       Sterling Construction Co., Inc.(b)      547,762   
  13,860       Sun Hydraulics Corp.      407,900   
  12,072       TASER International, Inc.(b)      270,171   
  33,011       Team, Inc.(b)      1,015,088   
  14,416       Tennant Co.      907,487   
  58,111       Tetra Tech, Inc.      2,234,368   
  81,459       Textainer Group Holdings Ltd.      619,088   
  28,384       Thermon Group Holdings, Inc.(b)      520,279   
  292,599       Titan International, Inc.      2,981,584   
  118,072       Titan Machinery, Inc.(b)      1,096,889   
  47,287       Toro Co. (The)      2,264,102   
  10,031       Trex Co., Inc.(b)      539,768   
  73,958       TriMas Corp.(b)      1,327,546   
  38,096       TriNet Group, Inc.(b)      715,062   
  58,862       TrueBlue, Inc.(b)      1,030,085   
  146,729       Tutor Perini Corp.(b)      2,795,187   
  26,089       Twin Disc, Inc.      282,022   
  12,135       UniFirst Corp.      1,486,538   
  64,950       Univar, Inc.(b)      1,445,138   
  21,276       Universal Forest Products, Inc.      1,829,523   
  14,467       Universal Logistics Holdings, Inc.      180,114   
  14,036       US Ecology, Inc.      593,021   
  20,286       USA Truck, Inc.(b)      166,954   
  70,494       USG Corp.(b)      1,775,039   
  40,389       Vectrus, Inc.(b)      677,324   
  36,940       Veritiv Corp.(b)      1,992,913   
  35,526       Viad Corp.      1,474,329   
  2,978       Virgin America, Inc.(b)      161,854   
  9,748       VSE Corp.      281,132   
  103,324       Wabash National Corp.(b)      1,162,395   
  7,141       WageWorks, Inc.(b)      420,962   
  21,906       Watts Water Technologies, Inc., Class A      1,314,360   
  65,348       Werner Enterprises, Inc.      1,571,619   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Industrials (continued)   
  88,504       Wesco Aircraft Holdings, Inc.(b)    $ 1,137,276   
  88,170       West Corp.      1,738,712   
  46,270       Woodward, Inc.      2,729,005   
  52,646       Xerium Technologies, Inc.(b)      326,405   
  58,488       XPO Logistics, Inc.(b)(c)      1,926,010   
     

 

 

  
        236,212,243   
     

 

 

  
   Information Technology—16.2%   
  120,286       3D Systems Corp.(b)(c)      1,668,367   
  27,680       8x8, Inc.(b)      394,440   
  67,352       ACI Worldwide, Inc.(b)      1,220,418   
  48,296       Actua Corp.(b)      562,648   
  71,765       Acxiom Corp.(b)      1,690,783   
  48,525       ADTRAN, Inc.      880,729   
  24,215       Advanced Energy Industries, Inc.(b)      1,155,055   
  27,680       Alpha & Omega Semiconductor Ltd.(b)      584,878   
  7,296       Ambarella, Inc.(b)(c)      447,756   
  27,362       Applied Micro Circuits Corp.(b)      202,479   
  6,390       Arista Networks, Inc.(b)(c)      541,552   
  6,060       Aspen Technology, Inc.(b)      298,394   
  55,344       Avid Technology, Inc.(b)      363,610   
  77,883       AVX Corp.      1,091,920   
  24,981       Axcelis Technologies, Inc.(b)      340,991   
  14,437       Badger Meter, Inc.      464,150   
  51,220       Bankrate, Inc.(b)      399,516   
  51,689       Bazaarvoice, Inc.(b)      253,276   
  22,086       Bel Fuse, Inc., Class B      526,751   
  34,314       Belden, Inc.      2,223,890   
  47,786       Black Box Corp.      549,539   
  8,839       Black Knight Financial Services, Inc., Class A(b)      347,815   
  12,539       Blackbaud, Inc.      769,895   
  24,478       Blackhawk Network Holdings, Inc.(b)      843,267   
  112,805       Blucora, Inc.(b)      1,500,307   
  15,536       Bottomline Technologies (de), Inc.(b)      352,512   
  9,022       BroadSoft, Inc.(b)      374,864   
  86,811       Brooks Automation, Inc.      1,131,147   
  40,840       Cabot Microelectronics Corp.      2,256,818   
  12,255       CalAmp Corp.(b)      158,335   
  47,993       Calix, Inc.(b)      299,956   
  69,570       Canadian Solar, Inc. (Canada)(b)(c)      1,004,591   
  27,878       Cardtronics PLC, Class A(b)      1,393,900   
  4,933       Cass Information Systems, Inc.      265,691   
  6,961       Cavium, Inc.(b)      392,948   
  9,632       CEVA, Inc.(b)      289,442   
  144,158       Ciber, Inc.(b)      147,041   
  46,838       Ciena Corp.(b)      907,720   
  11,720       Cimpress NV (Netherlands)(b)(c)      975,690   
  38,919       Cirrus Logic, Inc.(b)      2,100,848   
  25,217       Cognex Corp.      1,301,197   
  15,996       Coherent, Inc.(b)      1,665,504   
  25,808       Cohu, Inc.      288,792   
  582       CommerceHub, Inc., Series A(b)      8,742   
  1,165       CommerceHub, Inc., Series C(b)      17,533   
  19,009       CommVault Systems, Inc.(b)      1,016,982   
  5,848       comScore, Inc.(b)      168,364   
  42,751       Comtech Telecommunications Corp.      444,610   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   27  

 

 

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Information Technology (continued)   
  80,418       Convergys Corp.    $ 2,348,206   
  47,620       CoreLogic, Inc.(b)      2,026,707   
  8,793       CoStar Group, Inc.(b)      1,645,346   
  15,310       Cray, Inc.(b)      318,448   
  21,601       CSG Systems International, Inc.      821,486   
  34,668       CTS Corp.      630,958   
  166,854       Cypress Semiconductor Corp.      1,663,534   
  85,011       Daktronics, Inc.      709,842   
  53,018       Datalink Corp.(b)      502,611   
  40,445       DHI Group, Inc.(b)      230,537   
  41,815       Digi International, Inc.(b)      382,607   
  52,140       Diodes, Inc.(b)      1,079,819   
  38,638       Dolby Laboratories, Inc., Class A      1,838,782   
  21,802       DSP Group, Inc.(b)      237,642   
  12,670       DTS, Inc.      536,575   
  188,253       EarthLink Holdings Corp.      1,076,807   
  114,359       Eastman Kodak Co.(b)      1,703,949   
  14,080       Ebix, Inc.(c)      788,480   
  39,700       Electro Scientific Industries, Inc.(b)      205,646   
  29,575       Electronics for Imaging, Inc.(b)      1,257,825   
  3,695       Ellie Mae, Inc.(b)      391,264   
  18,307       Endurance International Group Holdings, Inc.(b)(c)      134,556   
  83,974       EnerNOC, Inc.(b)(c)      436,665   
  92,039       Entegris, Inc.(b)      1,463,420   
  13,093       Envestnet, Inc.(b)      462,838   
  11,737       EPAM Systems, Inc.(b)      755,511   
  8,933       ePlus, Inc.(b)      817,816   
  25,343       Euronet Worldwide, Inc.(b)      2,016,036   
  118,683       Everi Holdings, Inc.(b)      238,553   
  43,346       EVERTEC, Inc.      656,692   
  33,531       Everyday Health, Inc.(b)      352,076   
  36,966       Exar Corp.(b)      333,433   
  12,182       ExlService Holdings, Inc.(b)      536,373   
  100,178       Extreme Networks, Inc.(b)      421,749   
  19,839       Fabrinet (Thailand)(b)      753,088   
  8,724       Fair Isaac Corp.      1,052,812   
  19,042       FARO Technologies, Inc.(b)      638,859   
  106,884       Finisar Corp.(b)      2,926,484   
  58,578       FireEye, Inc.(b)(c)      680,676   
  8,502       Fleetmatics Group PLC(b)      509,270   
  41,586       FormFactor, Inc.(b)      373,234   
  10,940       Forrester Research, Inc.      407,515   
  31,540       Fortinet, Inc.(b)      1,011,172   
  18,202       Gartner, Inc.(b)      1,566,100   
  33,655       Global Payments, Inc.      2,440,661   
  15,445       Gogo, Inc.(b)(c)      156,149   
  27,900       GrubHub, Inc.(b)      1,063,269   
  11,248       Guidewire Software, Inc.(b)      646,198   
  13,896       Hackett Group, Inc. (The)      224,004   
  189,077       Harmonic, Inc.(b)      964,293   
  26,807       Hollysys Automation Technologies Ltd. (China)      533,727   
  52,130       II-VI, Inc.(b)      1,449,214   
  34,488       Infinera Corp.(b)      269,006   
  16,500       Infoblox, Inc.(b)      437,250   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Information Technology (continued)   
  9,726       Inphi Corp.(b)    $ 360,835   
  79,220       Insight Enterprises, Inc.(b)      2,280,744   
  59,717       Integrated Device Technology, Inc.(b)      1,236,739   
  7,142       Interactive Intelligence Group, Inc.(b)      431,734   
  24,616       InterDigital, Inc.      1,739,120   
  186,297       Internap Corp.(b)      232,871   
  125,596       Intersil Corp., Class A      2,773,160   
  22,451       InterXion Holding NV (Netherlands)(b)      835,851   
  35,845       Intralinks Holdings, Inc.(b)      328,699   
  58,149       InvenSense, Inc.(b)(c)      444,840   
  9,886       IPG Photonics Corp.(b)      959,041   
  44,477       Itron, Inc.(b)      2,397,310   
  55,771       Ixia(b)      666,463   
  21,137       IXYS Corp.      224,052   
  19,272       j2 Global, Inc.      1,371,203   
  23,072       Jack Henry & Associates, Inc.      1,869,293   
  123,766       KEMET Corp.(b)      440,607   
  39,116       Kimball Electronics, Inc.(b)      543,712   
  177,962       Knowles Corp.(b)(c)      2,658,752   
  116,002       Kulicke & Soffa Industries, Inc. (Singapore)(b)      1,535,866   
  21,937       KVH Industries, Inc.(b)      174,399   
  105,522       Lattice Semiconductor Corp.(b)      640,519   
  81,878       Lionbridge Technologies, Inc.(b)      395,471   
  108,179       Liquidity Services, Inc.(b)      957,384   
  10,280       Littelfuse, Inc.      1,434,060   
  46,578       LivePerson, Inc.(b)      395,913   
  4,033       LogMeIn, Inc.(c)      383,135   
  24,320       Lumentum Holdings, Inc.(b)      817,152   
  5,270       Luxoft Holding, Inc., Class A(b)      279,310   
  4,445       MACOM Technology Solutions Holdings, Inc.(b)      163,398   
  172,704       Magnachip Semiconductor Corp. (South Korea)(b)(c)      1,070,765   
  10,752       Manhattan Associates, Inc.(b)      544,481   
  52,185       ManTech International Corp., Class A      2,026,344   
  36,194       Marchex, Inc., Class B(b)      91,209   
  24,889       MAXIMUS, Inc.      1,295,721   
  39,294       Maxwell Technologies, Inc.(b)(c)      190,183   
  15,925       Mellanox Technologies Ltd. (Israel)(b)      691,145   
  86,250       Mentor Graphics Corp.      2,492,625   
  4,963       MercadoLibre, Inc. (Argentina)      833,834   
  28,192       Methode Electronics, Inc.      879,590   
  53,787       Microsemi Corp.(b)      2,266,046   
  3,439       MicroStrategy, Inc., Class A(b)      669,952   
  43,082       MKS Instruments, Inc.      2,173,487   
  9,766       Mobileye NV(b)      363,100   
  90,806       ModusLink Global Solutions, Inc.(b)      123,496   
  129,873       MoneyGram International, Inc.(b)      910,410   
  7,776       Monolithic Power Systems, Inc.      612,827   
  16,151       Monotype Imaging Holdings, Inc.      308,484   
  219,188       Monster Worldwide, Inc.(b)      747,431   
  12,275       MTS Systems Corp.      583,676   
  20,960       Nanometrics, Inc.(b)      437,854   
  60,142       National Instruments Corp.      1,689,389   
  16,776       NeoPhotonics Corp.(b)      234,864   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   28  

 

 

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Information Technology (continued)   
  78,603       Net 1 UEPS Technologies, Inc. (South Africa)(b)    $ 807,253   
  37,394       NETGEAR, Inc.(b)      1,888,397   
  37,763       NetScout Systems, Inc.(b)      1,036,594   
  3,469       NetSuite, Inc.(b)      323,033   
  77,735       NeuStar, Inc., Class A(b)(c)      1,745,151   
  31,096       NIC, Inc.      713,653   
  28,333       Novanta, Inc.(b)      494,411   
  65,059       Oclaro, Inc.(b)      475,581   
  36,111       Orbotech Ltd. (Israel)(b)      989,441   
  16,123       OSI Systems, Inc.(b)      1,130,706   
  3,763       Palo Alto Networks, Inc.(b)      578,862   
  53,349       Pandora Media, Inc.(b)(c)      604,444   
  47,768       Park Electrochemical Corp.      737,060   
  16,133       PC Connection, Inc.      374,447   
  10,389       Pegasystems, Inc.      321,020   
  27,947       Perficient, Inc.(b)      520,094   
  96,739       Photronics, Inc.(b)      938,368   
  33,633       Plantronics, Inc.      1,739,162   
  56,572       Plexus Corp.(b)      2,591,563   
  12,000       Power Integrations, Inc.      773,400   
  36,972       Progress Software Corp.(b)      994,917   
  60,608       PTC, Inc.(b)      2,875,244   
  6,620       Qualys, Inc.(b)      246,595   
  760,789       Quantum Corp.(b)      608,783   
  60,556       QuinStreet, Inc.(b)      175,612   
  21,827       Quotient Technology, Inc.(b)      231,366   
  102,121       Rackspace Hosting, Inc.(b)      3,261,745   
  36,524       Radware Ltd. (Israel)(b)(c)      493,439   
  45,784       Rambus, Inc.(b)      558,107   
  18,052       RealPage, Inc.(b)      491,014   
  50,683       RetailMeNot, Inc.(b)      458,681   
  59,824       Rocket Fuel, Inc.(b)(c)      118,452   
  40,238       Rofin-Sinar Technologies, Inc.(b)      1,309,747   
  20,330       Rogers Corp.(b)      1,106,562   
  30,210       Rudolph Technologies, Inc.(b)      546,801   
  42,907       Sabre Corp.      1,108,288   
  38,329       SeaChange International, Inc.(b)      100,805   
  45,789       Semtech Corp.(b)      1,108,094   
  8,235       ServiceNow, Inc.(b)      723,939   
  31,071       ShoreTel, Inc.(b)      206,622   
  30,784       Sigma Designs, Inc.(b)      224,723   
  56,263       Silicon Graphics International Corp.(b)      436,038   
  26,352       Silicon Laboratories, Inc.(b)      1,579,802   
  38,339       SINA Corp. (China)(b)      2,765,775   
  35,044       Sohu.com, Inc. (China)(b)      1,311,697   
  36,519       Sonus Networks, Inc.(b)      211,445   
  19,987       Splunk, Inc.(b)      1,203,018   
  3,770       SPS Commerce, Inc.(b)      235,173   
  44,210       SS&C Technologies Holdings, Inc.      1,411,625   
  2,472       Stamps.com, Inc.(b)(c)      241,144   
  98,393       Stratasys Ltd.(b)(c)      1,881,274   
  161,248       SunEdison Semiconductor PTE Ltd.(b)      1,917,239   
  38,626       SunPower Corp.(b)(c)      279,652   
  23,885       Super Micro Computer, Inc.(b)      566,075   
  43,413       Sykes Enterprises, Inc.(b)      1,160,864   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Information Technology (continued)   
  13,768       Synaptics, Inc.(b)    $ 717,588   
  21,113       Synchronoss Technologies, Inc.(b)      775,058   
  15,241       Syntel, Inc.      306,344   
  10,579       Tableau Software, Inc., Class A(b)      508,321   
  48,630       Take-Two Interactive Software, Inc.(b)      2,158,686   
  25,279       Tangoe, Inc.(b)      216,894   
  40,837       Telenav, Inc.(b)      222,562   
  19,124       TeleTech Holdings, Inc.      537,384   
  30,398       Tessera Technologies, Inc.      1,127,766   
  78,961       Tivo Corp.(b)      1,567,376   
  150,527       TTM Technologies, Inc.(b)      1,979,430   
  109,678       Twitter, Inc.(b)(c)      1,968,720   
  4,863       Tyler Technologies, Inc.(b)      780,025   
  5,523       Ubiquiti Networks, Inc.(b)(c)      289,571   
  3,124       Ultimate Software Group, Inc. (The)(b)      659,133   
  87,468       Ultra Clean Holdings, Inc.(b)      743,478   
  22,532       Ultratech, Inc.(b)      479,706   
  8,832       Universal Display Corp.(b)      456,614   
  12,935       VASCO Data Security International, Inc.(b)      177,856   
  64,178       Veeco Instruments, Inc.(b)      1,392,663   
  89,991       VeriFone Systems, Inc.(b)      1,393,061   
  49,099       Verint Systems, Inc.(b)      1,767,564   
  26,654       ViaSat, Inc.(b)      1,883,372   
  177,852       Viavi Solutions, Inc.(b)      1,266,306   
  16,422       Virtusa Corp.(b)      311,033   
  27,868       Vishay Precision Group, Inc.(b)      437,528   
  37,946       VMware, Inc., Class A(b)(c)      2,982,556   
  25,232       Web.com Group, Inc.(b)      406,235   
  10,093       WebMD Health Corp.(b)      495,869   
  30,668       WEX, Inc.(b)      3,345,879   
  9,823       Workday, Inc., Class A(b)      851,458   
  55,116       Xcerra Corp.(b)      303,689   
  12,588       XO Group, Inc.(b)      231,619   
  131,397       Yandex NV, Class A (Russia)(b)      2,587,207   
  23,438       Yelp, Inc., Class A(b)      765,485   
  27,952       Zebra Technologies Corp., Class A(b)      1,840,360   
  15,022       Zedge, Inc., Class B(b)      43,864   
  6,223       Zillow Group, Inc., Class A(b)      205,546   
  12,760       Zillow Group, Inc., Class C(b)(c)      425,674   
  781,467       Zynga, Inc., Class A(b)      2,195,922   
     

 

 

  
        225,358,368   
     

 

 

  
   Materials—6.8%   
  65,740       A. Schulman, Inc.      1,890,025   
  7,090       AEP Industries, Inc.      776,709   
  31,098       American Vanguard Corp.      472,690   
  9,904       Balchem Corp.      751,714   
  126,238       Boise Cascade Co.(b)      2,430,081   
  55,002       Calgon Carbon Corp.      869,032   
  163,769       Century Aluminum Co.(b)      1,197,151   
  48,153       Clearwater Paper Corp.(b)      2,556,924   
  206,913       Coeur Mining, Inc.(b)      2,313,287   
  4,886       Deltic Timber Corp.      274,495   
  24,394       Eagle Materials, Inc.      1,975,182   
  130,559       Ferro Corp.(b)      1,692,045   
  65,791       Flotek Industries, Inc.(b)(c)      775,018   
  30,720       FutureFuel Corp.      336,691   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   29  

 

 

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Materials (continued)   
  191,911       Gold Resource Corp.(c)    $ 1,090,054   
  79,596       Greif, Inc., Class A      3,729,869   
  46,725       H.B. Fuller Co.      1,965,721   
  13,499       Hawkins, Inc.      544,685   
  19,460       Haynes International, Inc.      626,028   
  38,190       Headwaters, Inc.(b)      626,316   
  516,583       Hecla Mining Co.      3,094,332   
  44,028       Innophos Holdings, Inc.      2,018,244   
  20,091       Innospec, Inc.      1,210,483   
  399,343       Intrepid Potash, Inc.(b)      415,317   
  21,782       Kaiser Aluminum Corp.      1,578,977   
  158,313       KapStone Paper and Packaging Corp.      2,871,798   
  8,047       KMG Chemicals, Inc.      218,396   
  58,141       Koppers Holdings, Inc.(b)      1,904,118   
  91,180       Kraton Corp.(b)      2,336,943   
  98,431       Kronos Worldwide, Inc.(c)      756,934   
  114,040       Louisiana-Pacific Corp.(b)      2,092,634   
  125,812       LSB Industries, Inc.(b)(c)      665,545   
  39,639       Materion Corp.      1,201,062   
  140,010       McEwen Mining, Inc.(c)      455,032   
  64,979       Mercer International, Inc. (Canada)      513,334   
  28,307       Minerals Technologies, Inc.      1,902,230   
  41,588       Myers Industries, Inc.      501,135   
  13,106       Neenah Paper, Inc.      1,047,169   
  42,591       Olympic Steel, Inc.      983,426   
  66,491       OMNOVA Solutions, Inc.(b)      505,332   
  40,077       Orion Engineered Carbons SA      751,444   
  90,143       P.H. Glatfelter Co.      2,002,977   
  265,109       Platform Specialty Products Corp.(b)(c)      1,932,645   
  11,325       Quaker Chemical Corp.      1,217,437   
  109,998       Rayonier Advanced Materials, Inc.(c)      1,422,274   
  157,358       Rentech, Inc.(b)      379,233   
  286,446       Resolute Forest Products, Inc.(b)(c)      1,360,618   
  45,386       Royal Gold, Inc.      3,123,465   
  73,643       Ryerson Holding Corp.(b)(c)      754,841   
  130,001       Schnitzer Steel Industries, Inc., Class A      3,139,524   
  36,532       Schweitzer-Mauduit International, Inc.      1,348,396   
  30,635       Scotts Miracle-Gro Co. (The), Class A      2,698,637   
  27,100       Stepan Co.      1,924,913   
  163,133       Stillwater Mining Co.(b)      2,172,932   
  323,008       SunCoke Energy, Inc.      3,297,912   
  184,892       TimkenSteel Corp.(b)      1,895,143   
  45,003       Tredegar Corp.      832,556   
  30,229       Trinseo SA      1,585,511   
  473,825       Tronox Ltd., Class A      3,837,983   
  7,165       US Concrete, Inc.(b)      357,534   
  41,399       Westlake Chemical Corp.      2,144,054   
  62,427       Worthington Industries, Inc.      2,934,069   
     

 

 

  
        94,280,256   
     

 

 

  
   Real Estate—6.9%   
  40,625       Acadia Realty Trust REIT      1,368,656   
  10,125       Agree Realty Corp. REIT      489,544   
  29,323       Alexander & Baldwin, Inc.      1,225,408   
  1,282       Alexander’s, Inc. REIT      492,634   
  16,910       Altisource Asset Management Corp. (U. S. Virgin Islands)(b)(c)      577,476   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Real Estate (continued)   
  15,653       Altisource Portfolio Solutions SA(b)    $ 403,065   
  28,322       American Assets Trust, Inc. REIT      1,124,667   
  112,185       American Homes 4 Rent, Class A REIT      2,368,225   
  31,888       Armada Hoffler Properties, Inc. REIT      428,256   
  42,935       Ashford Hospitality Prime, Inc. REIT      556,438   
  247,272       Ashford Hospitality Trust, Inc. REIT      1,436,650   
  34,720       CareTrust REIT, Inc. REIT      488,858   
  27,585       CatchMark Timber Trust, Inc., Class A REIT      290,746   
  94,745       Cedar Realty Trust, Inc. REIT      641,424   
  28,078       Chatham Lodging Trust REIT      496,981   
  49,701       Chesapeake Lodging Trust REIT      1,079,009   
  16,238       Colony Starwood Homes REIT      471,064   
  20,387       CorEnergy Infrastructure Trust, Inc. REIT(c)      552,080   
  9,236       CoreSite Realty Corp. REIT      681,063   
  182,055       Cousins Properties, Inc. REIT      1,414,567   
  63,137       CubeSmart REIT      1,645,982   
  19,798       CyrusOne, Inc. REIT      883,189   
  45,773       DuPont Fabros Technology, Inc. REIT      1,867,996   
  26,364       EastGroup Properties, Inc. REIT      1,790,379   
  31,059       Education Realty Trust, Inc. REIT      1,322,803   
  54,630       Empire State Realty Trust, Inc., Class A REIT      1,069,109   
  60,531       Equity One, Inc. REIT      1,725,133   
  91,655       FelCor Lodging Trust, Inc. REIT      585,675   
  62,182       First Industrial Realty Trust, Inc. REIT      1,642,227   
  121,359       First Potomac Realty Trust REIT      1,082,522   
  71,297       Forestar Group, Inc.(b)      784,267   
  148,131       Franklin Street Properties Corp. REIT      1,713,876   
  73,285       Gaming and Leisure Properties, Inc. REIT      2,405,947   
  30,974       Getty Realty Corp. REIT      704,039   
  28,232       Gladstone Commercial Corp. REIT      503,941   
  131,968       Government Properties Income Trust REIT(c)      2,525,867   
  54,396       Hersha Hospitality Trust REIT      969,337   
  20,800       HFF, Inc., Class A      553,904   
  20,097       Howard Hughes Corp. (The)(b)      2,207,253   
  36,446       Hudson Pacific Properties, Inc. REIT      1,225,314   
  9,591       InfraREIT, Inc. REIT      159,402   
  223,111       Investors Real Estate Trust REIT(c)      1,354,284   
  103,852       iStar, Inc. REIT(b)      1,155,873   
  36,941       Kennedy-Wilson Holdings, Inc.      760,985   
  57,278       Kite Realty Group Trust REIT      1,427,941   
  15,459       Life Storage, Inc. REIT      1,246,768   
  20,184       LTC Properties, Inc. REIT      1,011,420   
  6,959       Marcus & Millichap, Inc.(b)      163,049   
  171,607       Medical Properties Trust, Inc. REIT      2,392,202   
  41,611       Monmouth Real Estate Investment Corp. REIT      568,822   
  164,772       Monogram Residential Trust, Inc. REIT      1,736,697   
  35,565       Nam Tai Property, Inc. (China)(c)      288,076   
  18,527       National Health Investors, Inc. REIT      1,403,605   
  19,855       National Storage Affiliates Trust REIT      388,761   
  97,019       New Senior Investment Group, Inc. REIT      1,010,938   
  95,290       New York REIT, Inc. REIT      897,632   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   30  

 

 

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Real Estate (continued)   
  15,362       One Liberty Properties, Inc. REIT    $ 361,929   
  22,756       Parkway, Inc. REIT(b)      410,063   
  56,509       Pebblebrook Hotel Trust REIT      1,372,038   
  80,823       Pennsylvania Real Estate Investment Trust REIT      1,576,857   
  20,623       Physicians Realty Trust REIT      407,717   
  35,611       Post Properties, Inc. REIT      2,342,848   
  51,350       Potlatch Corp. REIT      1,971,840   
  20,501       Preferred Apartment Communities, Inc., Class A REIT      266,923   
  13,823       PS Business Parks, Inc. REIT      1,517,627   
  14,728       QTS Realty Trust, Inc., Class A REIT      676,899   
  365,700       RAIT Financial Trust REIT      1,115,385   
  66,262       Ramco-Gershenson Properties Trust REIT      1,148,983   
  7,155       RE/MAX Holdings, Inc., Class A      310,885   
  53,345       Retail Opportunity Investments Corp. REIT      1,072,768   
  29,172       Rexford Industrial Realty, Inc. REIT      614,362   
  7,396       RMR Group, Inc. (The), Class A      254,053   
  90,852       Sabra Health Care REIT, Inc. REIT      2,116,852   
  10,137       Saul Centers, Inc. REIT      613,086   
  62,085       Select Income REIT      1,535,983   
  9,091       Seritage Growth Properties, Class A REIT(c)      414,095   
  27,486       Silver Bay Realty Trust Corp. REIT      460,390   
  44,726       St. Joe Co. (The)(b)      791,650   
  58,340       STAG Industrial, Inc., Class A REIT      1,345,904   
  25,127       STORE Capital Corp. REIT      685,716   
  73,706       Summit Hotel Properties, Inc. REIT      957,441   
  29,787       Sun Communities, Inc. REIT      2,291,514   
  58,113       Tanger Factory Outlet Centers, Inc. REIT      2,022,332   
  12,085       Tejon Ranch Co.(b)      269,979   
  25,511       Terreno Realty Corp. REIT      665,837   
  83,337       Tier REIT, Inc. REIT      1,229,221   
  27,646       UMH Properties, Inc. REIT      335,069   
  7,364       Universal Health Realty Income Trust REIT      432,267   
  29,867       Urban Edge Properties REIT      770,867   
  25,395       Urstadt Biddle Properties, Inc., Class A REIT      545,992   
  75,566       Washington REIT      2,223,152   
  37,292       Whitestone REIT      495,984   
     

 

 

  
        95,386,534   
     

 

 

  
   Telecommunication Services—1.4%   
  8,641       ATN International, Inc.      584,477   
  31,016       Boingo Wireless, Inc.(b)      301,476   
  116,822       Cincinnati Bell, Inc.(b)      2,295,552   
  17,779       Cogent Communications Group, Inc.      656,045   
  74,510       Consolidated Communications Holdings, Inc.      1,783,024   
  50,064       FairPoint Communications, Inc.(b)      780,999   
  46,970       General Communication, Inc., Class A(b)      744,005   
  16,354       Hawaiian Telcom Holdco, Inc.(b)      335,584   
  46,604       IDT Corp., Class B      833,746   
  39,980       Inteliquent, Inc.      671,264   
  238,187       Intelsat SA(b)      645,487   
  184,738       Iridium Communications, Inc.(b)(c)      1,505,615   
  34,812       Lumos Networks Corp.(b)      494,679   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Telecommunication Services (continued)   
  27,190       ORBCOMM, Inc.(b)    $ 242,807   
  21,232       SBA Communications Corp., Class A(b)      2,405,161   
  26,616       Shenandoah Telecommunications Co.      702,662   
  37,723       Spok Holdings, Inc.      680,900   
  33,447       United States Cellular Corp.(b)      1,172,317   
  180,149       Vonage Holdings Corp.(b)      1,235,822   
  30,674       Zayo Group Holdings, Inc.(b)      987,089   
     

 

 

  
        19,058,711   
     

 

 

  
   Utilities—1.6%   
  23,607       American States Water Co.      943,808   
  7,301       Artesian Resources Corp., Class A      206,034   
  54,911       Atlantica Yield PLC (Spain)(c)      987,300   
  25,672       Avangrid, Inc.      1,011,734   
  48,646       California Water Service Group      1,508,026   
  11,117       Chesapeake Utilities Corp.      712,044   
  7,875       Connecticut Water Service, Inc.      410,051   
  17,313       Consolidated Water Co. Ltd. (Cayman Islands)      193,906   
  48,256       El Paso Electric Co.      2,229,427   
  50,201       Empire District Electric Co. (The)      1,718,380   
  27,936       MGE Energy, Inc.      1,632,859   
  14,972       Middlesex Water Co.      540,489   
  35,697       Northwest Natural Gas Co.      2,098,984   
  19,658       NRG Yield, Inc., Class A      289,562   
  37,128       NRG Yield, Inc., Class C(c)      571,771   
  17,786       Ormat Technologies, Inc.      857,819   
  48,845       Otter Tail Corp.      1,755,978   
  34,967       Pattern Energy Group, Inc.      781,512   
  15,093       SJW Corp.      765,668   
  71,489       South Jersey Industries, Inc.      2,119,649   
  31,414       TerraForm Power, Inc., Class A(b)(c)      389,848   
  18,050       Unitil Corp.      732,288   
     

 

 

  
        22,457,137   
     

 

 

  
   Total Common Stocks and Other Equity Interests
(Cost $1,348,647,904)		      1,388,587,409   
     

 

 

  
     
   Money Market Fund—0.0%   
  268,116       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(d)
(Cost $268,116)		      268,116   
     

 

 

  
   Total Investments
(excluding investments purchased with cash collateral from securities on loan)
(Cost $1,348,916,020)—100.0%		      1,388,855,525   
     

 

 

  
     
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   31  

 

 

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Investments Purchased with Cash
Collateral from Securities on Loan		    
     
   Money Market Fund—7.1%   
  97,658,734       Invesco Government & Agency Portfolio—Institutional Class, 0.29%(d)(e)
(Cost $97,658,734)		    $ 97,658,734   
     

 

 

  
   Total Investments
(Cost $1,446,574,754)—107.1%		      1,486,514,259   
   Other assets less liabilities—(7.1)%      (97,990,036 ) 
     

 

 

  
   Net Assets—100.0%    $ 1,388,524,223   
     

 

 

  

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  Non-income producing security.
(c)  All or a portion of this security was out on loan at October 31, 2016.
(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2H.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   32  

 

 

Statements of Assets and Liabilities

October 31, 2016

(Unaudited)

 

    PowerShares
DWA NASDAQ
Momentum
Portfolio (DWAQ)		      PowerShares
Dynamic Market
Portfolio (PWC)		      PowerShares
FTSE RAFI
US 1000
Portfolio (PRF)		      PowerShares
FTSE RAFI
US 1500 Small-Mid
Portfolio  (PRFZ)		  
Assets:           

Unaffiliated investments, at value(a)

   $ 33,116,460       $ 129,590,089       $ 4,162,515,060       $ 1,388,587,409   

Affiliated investments, at value

     74,386         664,485         49,371,871         97,926,850   
 

 

 

     

 

 

     

 

 

     

 

 

  

Total investments, at value

     33,190,846         130,254,574         4,211,886,931         1,486,514,259   

Cash

     —         16,070         —         —   

Receivables:

           

Foreign tax reclaims

     923         —         3,391         —   

Dividends

     11         52,750         4,614,435         505,820   

Investments sold

     —         —         —         1,473,745   

Securities lending

     —         —         52,271         210,002   

Shares sold

     —         —         —         46,404   

Other assets

     974         622         3,358         519   
 

 

 

     

 

 

     

 

 

     

 

 

  

Total Assets

     33,192,754         130,324,016         4,216,560,386         1,488,750,749   
 

 

 

     

 

 

     

 

 

     

 

 

  
Liabilities:           

Due to custodian

     —         —         31,797         43,779   

Payables:

           

Investments purchased

     —         —         —         1,273,097   

Collateral upon return of securities loaned

     —         600,926         45,367,689         97,658,734   

Shares repurchased

     —         —         215         —   

Accrued advisory fees

     7,179         55,404         969,908         330,197   

Accrued trustees’ and officer’s fees

     17,615         31,903         126,098         45,632   

Accrued expenses

     54,026         62,093         2,750,802         875,087   
 

 

 

     

 

 

     

 

 

     

 

 

  

Total Liabilities

     78,820         750,326         49,246,509         100,226,526   
 

 

 

     

 

 

     

 

 

     

 

 

  
Net Assets   $ 33,113,934       $ 129,573,690       $ 4,167,313,877       $ 1,388,524,223   
 

 

 

     

 

 

     

 

 

     

 

 

  
Net Assets Consist of:           

Shares of beneficial interest

   $ 80,997,986       $ 415,645,152       $ 4,004,925,431       $ 1,410,615,755   

Undistributed net investment income

     (32,413 )       107,602         10,872,023         3,860,108   

Undistributed net realized gain (loss)

     (50,950,980 )       (292,405,381 )       (148,049,555 )       (65,891,145 ) 

Net unrealized appreciation

     3,099,341         6,226,317         299,565,978         39,939,505   
 

 

 

     

 

 

     

 

 

     

 

 

  
Net Assets   $ 33,113,934       $ 129,573,690       $ 4,167,313,877       $ 1,388,524,223   
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding (unlimited amount authorized, $0.01 par value)

     450,000         1,750,000         45,400,000         13,700,000   

Net asset value

   $ 73.59       $ 74.04       $ 91.79       $ 101.35   
 

 

 

     

 

 

     

 

 

     

 

 

  

Market price

   $ 73.55       $ 74.07       $ 91.85       $ 101.37   
 

 

 

     

 

 

     

 

 

     

 

 

  

Unaffiliated investments, at cost

   $ 30,017,119       $ 123,363,772       $ 3,862,394,143       $ 1,348,647,904   
 

 

 

     

 

 

     

 

 

     

 

 

  

Affiliated investments, at cost

   $ 74,386       $ 664,485       $ 49,926,810       $ 97,926,850   
 

 

 

     

 

 

     

 

 

     

 

 

  

Total investments, at cost

   $ 30,091,505       $ 124,028,257       $ 3,912,320,953       $ 1,446,574,754   
 

 

 

     

 

 

     

 

 

     

 

 

  

(a) Includes securities on loan with an aggregate value of

   $ —       $ 549,990       $ 43,641,933       $ 93,945,907   
 

 

 

     

 

 

     

 

 

     

 

 

  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   33  

 

 

Statements of Operations

For the six months ended October 31, 2016

(Unaudited)

 

    PowerShares
DWA NASDAQ
Momentum
Portfolio (DWAQ)		      PowerShares
Dynamic Market
Portfolio (PWC)		      PowerShares
FTSE RAFI
US 1000
Portfolio (PRF)		      PowerShares
FTSE RAFI
US 1500 Small-Mid
Portfolio (PRFZ)		  
Investment Income:           

Unaffiliated dividend income

   $ 165,122       $ 1,046,073       $ 50,802,347       $ 9,801,807   

Affiliated dividend income

     135         227         229,819         2,191   

Securities lending income

     —         —         471,525         1,367,193   

Foreign withholding tax

     (381 )       (182 )       (2,362 )       (10,225 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Total Income

     164,876         1,046,118         51,501,329         11,160,966   
 

 

 

     

 

 

     

 

 

     

 

 

  
Expenses:           

Advisory fees

     87,002         347,001         6,171,443         1,907,655   

Accounting & administration fees

     18,014         18,058         392,186         103,697   

Sub-licensing fees

     13,970         20,820         1,917,905         592,748   

Professional fees

     13,180         14,772         39,428         20,191   

Trustees’ and officer’s fees

     4,147         5,101         40,532         13,603   

Custodian & transfer agent fees

     3,607         5,739         45,579         18,921   

Other expenses

     8,226         10,577         82,189         33,954   
 

 

 

     

 

 

     

 

 

     

 

 

  

Total Expenses

     148,146         422,068         8,689,262         2,690,769   
 

 

 

     

 

 

     

 

 

     

 

 

  

Less: Waivers

     (43,806 )       (5,764 )       (392,582 )       (126,371 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Net Expenses

     104,340         416,304         8,296,680         2,564,398   
 

 

 

     

 

 

     

 

 

     

 

 

  

Net Investment Income

     60,536         629,814         43,204,649         8,596,568   
 

 

 

     

 

 

     

 

 

     

 

 

  
Realized and Unrealized Gain (Loss):           

Net realized gain (loss) from:

           

Investment securities

     (1,271,782 )       (8,699,383 )       (2,537,230 )       (6,716,288 ) 

In-kind redemptions

     1,363,830         11,578,311         49,336,303         24,399,903   

Foreign currencies

     —         —         —         47   
 

 

 

     

 

 

     

 

 

     

 

 

  

Net realized gain

     92,048         2,878,928         46,799,073         17,683,662   
 

 

 

     

 

 

     

 

 

     

 

 

  

Net change in unrealized appreciation on investment securities

     1,781,484         2,273,873         28,859,612         22,656,158   
 

 

 

     

 

 

     

 

 

     

 

 

  

Net realized and unrealized gain

     1,873,532         5,152,801         75,658,685         40,339,820   
 

 

 

     

 

 

     

 

 

     

 

 

  

Net increase in net assets resulting from operations

   $ 1,934,068       $ 5,782,615       $ 118,863,334       $ 48,936,388   
 

 

 

     

 

 

     

 

 

     

 

 

  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   34  

 

 

 

(This Page Intentionally Left Blank)

 

Statements of Changes in Net Assets

For the six months ended October 31, 2016 and the year ended April 30, 2016

(Unaudited)

 

    PowerShares DWA NASDAQ
Momentum Portfolio (DWAQ)		      PowerShares Dynamic
Market Portfolio (PWC)		  
    October 31, 2016      April 30, 2016      October 31, 2016      April 30, 2016  
Operations:           

Net investment income (loss)

   $ 60,536       $ (37,908 )     $ 629,814       $ 1,747,478   

Net realized gain (loss)

     92,048         (4,266,521 )       2,878,928         (858,735 ) 

Net change in unrealized appreciation (depreciation)

     1,781,484         (2,129,082 )       2,273,873         (1,716,563 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets resulting from operations

     1,934,068         (6,433,511 )       5,782,615         (827,820 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
Distributions to Shareholders from:           

Net investment income

     (64,331 )       (22,077 )       (869,789 )       (1,698,632 ) 

Return of capital

     —         (2,759 )       —         —   
 

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions to shareholders

     (64,331 )       (24,836 )       (869,789 )       (1,698,632 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
Shareholder Transactions:           

Proceeds from shares sold

     7,410,770         35,446,415         94,901,174         152,722,956   

Value of shares repurchased

     (11,079,853 )       (24,097,986 )       (113,362,383 )       (176,024,640 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets resulting from shares transactions

     (3,669,083 )       11,348,429         (18,461,209 )       (23,301,684 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Increase (Decrease) in Net Assets

     (1,799,346 )       4,890,082         (13,548,383 )       (25,828,136 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
Net Assets:           

Beginning of period

     34,913,280         30,023,198         143,122,073         168,950,209   
 

 

 

     

 

 

     

 

 

     

 

 

  

End of period

   $ 33,113,934       $ 34,913,280       $ 129,573,690       $ 143,122,073   
 

 

 

     

 

 

     

 

 

     

 

 

  

Undistributed net investment income (loss) at end of period

   $ (32,413 )     $ (28,618 )     $ 107,602       $ 347,577   
 

 

 

     

 

 

     

 

 

     

 

 

  
Changes in Shares Outstanding:           

Shares sold

     100,000         450,000         1,300,000         2,050,000   

Shares repurchased

     (150,000 )       (350,000 )       (1,550,000 )       (2,350,000 ) 

Shares outstanding, beginning of period

     500,000         400,000         2,000,000         2,300,000   
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding, end of period

     450,000         500,000         1,750,000         2,000,000   
 

 

 

     

 

 

     

 

 

     

 

 

  

 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   36  

 

 

 

PowerShares FTSE RAFI US
1000 Portfolio (PRF)		      PowerShares FTSE RAFI US
1500 Small-Mid Portfolio (PRFZ)		  
October 31, 2016      April 30, 2016      October 31, 2016      April 30, 2016  
        
$ 43,204,649       $ 92,339,251       $ 8,596,568       $ 14,578,380   
  46,799,073         319,111,469         17,683,662         27,325,820   
  28,859,612         (458,584,354 )       22,656,158         (101,820,682 ) 

 

 

     

 

 

     

 

 

     

 

 

  
  118,863,334         (47,133,634 )       48,936,388         (59,916,482 ) 

 

 

     

 

 

     

 

 

     

 

 

  
        
  (42,643,520 )       (96,826,783 )       (7,229,769 )       (14,367,669 ) 
  —         —         —         —   

 

 

     

 

 

     

 

 

     

 

 

  
  (42,643,520 )       (96,826,783 )       (7,229,769 )       (14,367,669 ) 

 

 

     

 

 

     

 

 

     

 

 

  
        
  118,149,991         761,845,771         321,703,789         284,803,033   
  (169,456,464 )       (1,033,501,636 )       (82,180,793 )       (261,733,949 ) 

 

 

     

 

 

     

 

 

     

 

 

  
  (51,306,473 )       (271,655,865 )       239,522,996         23,069,084   

 

 

     

 

 

     

 

 

     

 

 

  
  24,913,341         (415,616,282 )       281,229,615         (51,215,067 ) 

 

 

     

 

 

     

 

 

     

 

 

  
        
  4,142,400,536         4,558,016,818         1,107,294,608         1,158,509,675   

 

 

     

 

 

     

 

 

     

 

 

  
$ 4,167,313,877       $ 4,142,400,536       $ 1,388,524,223       $ 1,107,294,608   

 

 

     

 

 

     

 

 

     

 

 

  
$ 10,872,023       $ 10,310,894       $ 3,860,108       $ 2,493,309   

 

 

     

 

 

     

 

 

     

 

 

  
        
  1,300,000         8,600,000         3,150,000         3,000,000   
  (1,850,000 )       (11,950,000 )       (800,000 )       (2,850,000 ) 
  45,950,000         49,300,000         11,350,000         11,200,000   

 

 

     

 

 

     

 

 

     

 

 

  
  45,400,000         45,950,000         13,700,000         11,350,000   

 

 

     

 

 

     

 

 

     

 

 

  

 

 

 

   37  

 

 

Financial Highlights

 

PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016     2015      2014     2013     2012  
Per Share Operating Performance:             

Net asset value at beginning of period

   $ 69.83      $  75.06      $ 64.34       $ 55.40     $ 51.32     $ 53.76  

Net investment income (loss)(a)

     0.13        (0.06 )      0.06         0.21        0.71 (b)      0.10   

Net realized and unrealized gain (loss) on investments

     3.76        (5.11 )      10.66         9.00        4.18        (2.50 ) 

Total from investment operations

     3.89        (5.17 )      10.72         9.21       4.89       (2.40 ) 

Distributions to shareholders from:

             

Net investment income

     (0.13 )      (0.05 )      —         (0.27 )      (0.81 )      (0.04 ) 

Return of capital

     —        (0.01 )      —         —        —        —   

Total distributions

     (0.13 )      (0.06 )      —         (0.27 )      (0.81 )      (0.04 ) 

Net asset value at end of period

   $ 73.59      $ 69.83      $ 75.06       $ 64.34     $ 55.40     $ 51.32  

Market price at end of period(c)

   $ 73.55      $ 69.82      $ 75.10       $ 64.32     $ 55.32     $ 51.30  
Net Asset Value Total Return(d)     5.57 %      (6.90 )%      16.66 %       16.64 %      9.75 %      (4.46 )% 
Market Price Total Return(d)     5.54 %      (6.96 )%      16.76 %       16.77 %      9.63 %      (4.48 )% 
Ratios/Supplemental Data:             

Net assets at end of period (000’s omitted)

   $ 33,114      $ 34,913      $ 30,023       $ 25,734      $ 22,160      $ 28,224   

Ratio to average net assets of:

             

Expenses, after Waivers

     0.60 %(e)      0.60 %      0.60 %       0.60 %(f)      0.60 %      0.60 % 

Expenses, prior to Waivers

     0.85 %(e)      0.81 %      0.96 %       0.91 %(f)      0.95 %      0.93 % 

Net investment income (loss), after Waivers

     0.35 %(e)      (0.09 )%      0.09 %       0.32 %      1.42 %(b)      0.22 % 

Portfolio turnover rate(g)

     44 %      118 %      154 %       296 %      118 %      99 % 

 

(a)  Based on average shares outstanding.
(b)  Net investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $4 per share owned of Warner Chilcott PLC on August 29, 2012. Net investment income per share and the ratio of net investment income to average net assets excluding the special dividend are $0.43 and 0.87%, respectively.
(c)  The mean between the last bid and ask prices.
(d)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(e)  Annualized.
(f)  In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment companies’ expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies the Fund invests in. The effect of the estimated investment companies’ expenses that the Fund bears indirectly is included in the Fund’s total return.
(g)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

PowerShares Dynamic Market Portfolio (PWC)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016     2015      2014      2013      2012  
Per Share Operating Performance:               

Net asset value at beginning of period

   $ 71.56      $  73.46      $ 70.27       $ 56.26      $ 46.78      $ 48.26  

Net investment income(a)

     0.34        0.82        0.68         0.60         0.82         0.44   

Net realized and unrealized gain (loss) on investments

     2.60        (1.91 )      3.25         13.99         9.51         (1.52 ) 

Total from investment operations

     2.94        (1.09 )      3.93         14.59        10.33        (1.08 ) 

Distributions to shareholders from:

               

Net investment income

     (0.46 )      (0.81 )      (0.74 )       (0.58 )       (0.85 )       (0.40 ) 

Net asset value at end of period

   $ 74.04      $ 71.56      $ 73.46       $ 70.27      $ 56.26      $ 46.78  

Market price at end of period(b)

   $ 74.07      $ 71.55      $ 73.40       $ 70.27      $ 56.23      $ 46.75  
Net Asset Value Total Return(c)     4.13 %      (1.50 )%      5.58 %       26.09 %       22.39 %       (2.12 )% 
Market Price Total Return(c)     4.19 %      (1.43 )%      5.49 %       26.15 %       22.40 %       (2.14 )% 
Ratios/Supplemental Data:               

Net assets at end of period (000’s omitted)

   $ 129,574      $ 143,122      $ 168,950       $ 186,219       $ 140,658       $ 128,644   

Ratio to average net assets of:

               

Expenses, after Waivers

     0.60 %(d)      0.60 %      0.59 %       0.60 %       0.60 %       0.60 % 

Expenses, prior to Waivers

     0.61 %(d)      0.60 %      0.59 %       0.60 %       0.60 %       0.62 % 

Net investment income, after Waivers

     0.91 %(d)      1.13 %      0.93 %       0.94 %       1.68 %       1.00 % 

Portfolio turnover rate(e)

     121 %      231 %      237 %       244 %       166 %       133 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   38  

 

 

Financial Highlights (continued)

 

PowerShares FTSE RAFI US 1000 Portfolio (PRF)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016     2015     2014     2013     2012  
Per Share Operating Performance:            

Net asset value at beginning of period

   $ 90.15      $  92.45      $ 85.42      $ 71.42     $ 59.73     $ 60.72  

Net investment income(a)

     0.94        1.93        1.72        1.45        1.31        1.12   

Net realized and unrealized gain (loss) on investments

     1.63        (2.23 )      6.93        13.89        11.66        (0.99 ) 

Total from investment operations

     2.57        (0.30 )      8.65        15.34       12.97       0.13  

Distributions to shareholders from:

            

Net investment income

     (0.93 )      (2.00 )      (1.62 )      (1.34 )      (1.28 )      (1.12 ) 

Net asset value at end of period

   $ 91.79      $ 90.15      $ 92.45      $ 85.42     $ 71.42     $ 59.73  

Market price at end of period(b)

   $ 91.85      $ 90.13      $ 92.43      $ 85.37     $ 71.42     $ 59.72  
Net Asset Value Total Return(c)     2.86 %      (0.23 )%      10.19 %      21.68 %      22.06 %      0.41 % 
Market Price Total Return(c)     2.95 %      (0.24 )%      10.23 %      21.61 %      22.09 %      0.41 % 
Ratios/Supplemental Data:            

Net assets at end of period (000’s omitted)

   $ 4,167,314      $ 4,142,401      $ 4,558,017      $ 3,305,696      $ 1,778,450      $ 1,388,661   

Ratio to average net assets of:

            

Expenses, after Waivers

     0.39 %(d)      0.39 %      0.39 %      0.39 %      0.39 %      0.39 % 

Expenses, prior to Waivers

     0.41 %(d)      0.41 %      0.41 %      0.41 %      0.43 %      0.43 % 

Net investment income, after Waivers

     2.03 %(d)      2.19 %      1.92 %      1.84 %      2.10 %      2.00 % 

Portfolio turnover rate(e)

     2 %      12 %      10 %      12 %      13 %      6 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016     2015      2014      2013      2012  
Per Share Operating Performance:               

Net asset value at beginning of period

   $ 97.56      $ 103.44      $ 96.35       $ 77.76      $ 66.71      $ 70.66  

Net investment income(a)

     0.67        1.25        1.38         0.98         1.13         0.73   

Net realized and unrealized gain (loss) on investments

     3.70        (5.93 )      7.04         18.52         11.08         (4.04 ) 

Total from investment operations

     4.37        (4.68 )      8.42         19.50        12.21        (3.31 ) 

Distributions to shareholders from:

               

Net investment income

     (0.58 )      (1.20 )      (1.33 )       (0.91 )       (1.16 )       (0.64 ) 

Net asset value at end of period

   $ 101.35      $ 97.56      $ 103.44       $ 96.35      $ 77.76      $ 66.71  

Market price at end of period(b)

   $ 101.37      $ 97.55      $ 103.45       $ 96.38      $ 77.67      $ 66.72  
Net Asset Value Total Return(c)     4.49 %      (4.49 )%      8.80 %       25.22 %       18.56 %       (4.60 )% 
Market Price Total Return(c)     4.52 %      (4.52 )%      8.78 %       25.40 %       18.41 %       (4.56 )% 
Ratios/Supplemental Data:               

Net assets at end of period (000’s omitted)

   $ 1,388,524      $ 1,107,295      $ 1,158,510       $ 958,731       $ 563,763       $ 463,645   

Ratio to average net assets of:

               

Expenses, after Waivers

     0.39 %(d)      0.39 %      0.39 %       0.39 %       0.39 %       0.39 % 

Expenses, prior to Waivers

     0.41 %(d)      0.41 %      0.42 %       0.42 %       0.43 %       0.44 % 

Net investment income, after Waivers

     1.31 %(d)      1.30 %      1.39 %       1.08 %       1.64 %       1.17 % 

Portfolio turnover rate(e)

     4 %      28 %      26 %       31 %       30 %       15 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   39  

 

 

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

October 31, 2016

(Unaudited)

 

Note 1. Organization

PowerShares Exchange-Traded Fund Trust (the “Trust”) was organized as a Massachusetts business trust on June 9, 2000 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of October 31, 2016, the Trust offered fifty-three portfolios. This report includes the following portfolios:

 

Full Name

   

Short Name

PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)    “DWA NASDAQ Momentum Portfolio”
PowerShares Dynamic Market Portfolio (PWC)    “Dynamic Market Portfolio”
PowerShares FTSE RAFI US 1000 Portfolio (PRF)    “FTSE RAFI US 1000 Portfolio”
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)    “FTSE RAFI US 1500 Small-Mid Portfolio”

Each portfolio (each, a “Fund”, and collectively, the “Funds”) represents a separate series of the Trust. The shares of the Funds are referred to herein as “Shares” or “Fund’s Shares.” Each Fund’s Shares are listed and traded on NYSE Arca, Inc., except for Shares of FTSE RAFI US 1500 Small-Mid Portfolio, which are listed and traded on The NASDAQ Stock Market LLC.

The market price of each Share may differ to some degree from the Fund’s net asset value (“NAV”). Unlike conventional mutual funds, each Fund issues and redeems Shares on a continuous basis, at NAV, only in a large specified number of Shares, each called a “Creation Unit.” Creation Units are issued and redeemed principally in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”). Except when aggregated in Creation Units by Authorized Participants, the Shares are not individually redeemable securities of the Funds.

The investment objective of each Fund is to seek investment results that generally correspond (before fees and expenses) to the price and yield of its respective index listed below (each, an “Underlying Index”):

 

Fund

   

Underlying Index

DWA NASDAQ Momentum Portfolio    Dorsey Wright® NASDAQ Technical Leaders Index
Dynamic Market Portfolio    Dynamic Market IntellidexSM Index
FTSE RAFI US 1000 Portfolio    FTSE RAFI US 1000 Index
FTSE RAFI US 1500 Small-Mid Portfolio    FTSE RAFI US 1500 Small-Mid Index

Note 2. Significant Accounting Policies

The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements, including estimates and assumptions related to taxation. Actual results could differ from these estimates. In addition, the Funds monitor for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. The following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.

A. Security Valuation

Securities, including restricted securities, are valued according to the following policies:

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining NAV per Share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day NAV per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

 

 

   40  

 

 

 

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts’) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the London world markets. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that Invesco PowerShares Capital Management LLC (the “Adviser”) determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith following procedures approved by the Board of Trustees. Issuer-specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

Each Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors, including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Other Risks

Index Risk. Unlike many investment companies, the Funds do not utilize investing strategies that seek returns in excess of their Underlying Indexes. Therefore, a Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.

Equity Risk. Equity risk is the risk that the value of the securities that each Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities that a Fund holds participate or factors relating to specific companies in which the Fund invests. For example, an adverse event, such as an unfavorable earnings report, may depress the value of securities a Fund holds; the price of securities may be particularly sensitive to general movements in the stock market; or a drop in the stock market may depress the price of most or all of the securities a Fund holds. In addition, securities of an issuer in the Fund’s portfolio may decline in price if the issuer fails to make anticipated dividend payments because, among other reasons, the issuer of the security experiences a decline in its financial condition.

Industry Concentration Risk. In following its methodology, each Fund’s Underlying Index from time to time will be concentrated to a significant degree in securities of issuers located in a single industry or a sector. To the extent that an Underlying Index concentrates in the securities of issuers in a particular industry or sector, each Fund will also concentrate its investments to approximately the same extent. By concentrating its investments in an industry or sector, a Fund may face more risks than if it were diversified broadly over

 

 

   41  

 

 

 

numerous industries or sectors. In addition, at times, an industry or sector may be out of favor and underperform other industries or the market as a whole. Any factors detrimental to the performance of such industry or sector will disproportionately impact a Fund’s NAV.

Non-Correlation Risk. Each Fund’s return may not match the return of its Underlying Index for a number of reasons. For example, each Fund incurs operating expenses not applicable to its Underlying Index, and incurs costs in buying and selling securities, especially when rebalancing the Fund’s securities holdings to reflect changes in the composition of its Underlying Index. In addition, the performance of each Fund and its Underlying Index may vary due to asset valuation differences and differences between each Fund’s portfolio and its Underlying Index resulting from legal restrictions, cost or liquidity constraints.

Momentum Investing Risk. DWA NASDAQ Momentum Portfolio employs a “momentum” style of investing that is subject to the risk that the securities may be more volatile than the market as a whole, or that the returns on securities that have previously exhibited price momentum are less than returns on other styles of investing. Momentum can turn quickly, and stocks that previously exhibited high momentum may not experience continued positive momentum. In addition, there may be periods when the momentum style of investing is out of favor and therefore, the investment performance of the Fund may suffer.

Small- and Mid-Capitalization Company Risk. For Dynamic Market Portfolio and FTSE RAFI US 1500 Small-Mid Portfolio, investing in securities of small- and mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established companies. These companies’ securities may be more volatile and less liquid than those of more established companies. These securities may have returns that vary, sometimes significantly, from the overall securities market. Often small- and mid-capitalization companies and the industries in which they focus are still evolving and, as a result, they may be more sensitive to changing market conditions.

Portfolio Turnover Risk. The Funds may engage in frequent trading of their portfolio securities in connection with the rebalancing or adjustment of their respective Underlying Index. A portfolio turnover rate of 200%, for example, is equivalent to a Fund buying and selling all of its securities two times during the course of a year. A high portfolio turnover rate (such as 100% or more) could result in high brokerage costs for a Fund. While a high portfolio turnover rate can result in an increase in taxable capital gain distributions to a Fund’s shareholders, each Fund will seek to utilize an in-kind creation and redemption mechanism to minimize realization of capital gains to the extent possible.

C. Federal Income Taxes

Each Fund intends to comply with the provisions of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute substantially all of the Fund’s taxable earnings to its shareholders. As such, the Funds will not be subject to federal income taxes on otherwise taxable income (including net realized gains) that is distributed to the shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

Each Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed each Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing book and tax treatments for in-kind transactions, losses deferred due to wash sales, and passive foreign investment company adjustments, if any.

The Funds file U.S. federal tax returns and tax returns in certain other jurisdictions. Generally, a Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.

D. Investment Transactions and Investment Income

Investment transactions are accounted for on a trade date basis. Realized gains and losses from the sale or disposition of securities are computed on the specific identified cost basis. Interest income is recorded on the accrual basis. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Realized gains, dividends and interest received by a Fund may give rise to withholding and other taxes imposed by foreign countries. Tax conventions between certain countries and the United States may reduce or eliminate such taxes.

The Funds may periodically participate in litigation related to each Fund’s investments. As such, the Funds may receive proceeds from litigation settlements. Any proceeds received are included in the Statements of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Corporate actions (including cash dividends) are recorded net of non-reclaimable foreign tax withholdings on the ex-date.

 

 

   42  

 

 

 

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statements of Operations and the Statements of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of each Fund’s net asset value and, accordingly, they reduce each Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statements of Operations and the Statements of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between each Fund and the Adviser.

E. Country Determination

For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the Adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

F. Expenses

Expenses of the Trust that are directly identifiable to a specific Fund are applied to that Fund. Expenses of the Trust that are not readily identifiable to a specific Fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative net assets of each Fund.

Each Fund is responsible for all of its expenses, including the investment advisory fees, costs of transfer agency, custody, fund administration, legal, audit and other services, interest, taxes, brokerage commissions and other expenses connected with executions of portfolio transactions, sub-licensing fees related to its respective Underlying Index, any distribution fees or expenses, litigation expenses, fees payable to the Trust’s Board members who are not “interested persons” (as defined in the 1940 Act) of the Trust (the “Independent Trustees”), any Trustee who is not an affiliate of the Adviser or Distributor (or any of their affiliates) and who is otherwise an “interested person” of the Trust under the 1940 Act (an “Unaffiliated Trustee”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees and any Unaffiliated Trustee, acquired fund fees and expenses, if any, and extraordinary expenses.

To the extent a Fund invests in other investment companies, the expenses shown in the accompanying financial statements reflect the expenses of the Fund and do not include any expenses of the investment companies in which it invests. The effects of such investment companies’ expenses are included in the realized and unrealized gain or loss on the investments in the investment companies.

G. Dividends and Distributions to Shareholders

Each Fund declares and pays dividends from net investment income, if any, to its shareholders quarterly and records such dividends on ex-dividend date. Generally, each Fund distributes net realized taxable capital gains, if any, annually in cash and records them on ex-dividend date. Such distributions on a tax basis are determined in conformity with federal income tax regulations, which may differ from GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in such Fund’s financial statements as a tax return of capital at fiscal year-end.

H. Securities Lending

During the six-month period ended October 31, 2016, Dynamic Market Portfolio, FTSE RAFI US 1000 Portfolio and FTSE RAFI US 1500 Small-Mid Portfolio participated in securities lending. Each Fund loaned portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% (105% for international securities) of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is invested in an affiliated money market fund and is shown as such on the Schedules of Investments. Each Fund bears the risk of loss with respect to the investment of collateral. It is the policy of these Funds to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, each Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to each Fund if, and to the extent that, the market value of the securities loaned were to increase, and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or each Fund. Upon termination, the borrower will return to each Fund the securities loaned and each Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. Each Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to each Fund.

 

 

   43  

 

 

 

Some of these losses may be indemnified by the lending agent. Each Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Securities lending income on the Statements of Operations. The aggregate value of securities out on loan, if any, is shown on the Statements of Assets and Liabilities.

Note 3. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with the Adviser on behalf of each Fund, pursuant to which the Adviser has overall responsibility for the selection and ongoing monitoring of the Funds’ investments, managing the Funds’ business affairs and providing certain clerical, bookkeeping and other administrative services. Pursuant to that Investment Advisory Agreement, each of DWA NASDAQ Momentum Portfolio and Dynamic Market Portfolio has agreed to pay the Adviser an annual fee of 0.50% of the Fund’s average daily net assets, and each of FTSE RAFI US 1000 Portfolio and FTSE RAFI US 1500 Small-Mid Portfolio has agreed to pay the Adviser an annual fee of 0.29% of the Fund’s average daily net assets.

The Trust also has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Adviser on behalf of each Fund. For the FTSE RAFI US 1000 Portfolio and the FTSE RAFI US 1500 Small-Mid Portfolio, the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses (excluding interest expenses, brokerage commissions and other trading expenses, offering costs, taxes, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund from exceeding 0.39% of the Fund’s average daily net assets per year (the “Expense Cap”), through at least August 31, 2017. Offering costs excluded from the Expense Cap for these Funds are: (a) initial legal fees pertaining to the Funds’ Shares offered for sale; (b) initial Securities and Exchange Commission and state registration fees; and (c) initial fees paid to be listed on an exchange. For the DWA NASDAQ Momentum Portfolio and the Dynamic Market Portfolio, the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses (excluding interest expenses, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund from exceeding 0.60% of the Fund’s average daily net assets per year, through at least August 31, 2017. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2017. During its term, the Expense Agreement cannot be terminated or amended to increase the Expense Cap without approval of the Board of Trustees.

Further, through August 31, 2018, the Adviser has contractually agreed to waive a portion of each Fund’s management fee in an amount equal to 100% of the net advisory fees an affiliate of the Adviser receives that are attributable to certain of the Fund’s investments in money market funds managed by that affiliate (excluding investments of cash collateral from securities lending). The Adviser cannot discontinue this waiver prior to its expiration. This agreement is not subject to recapture by the Adviser.

For the six-month period ended October 31, 2016, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:

 

DWA NASDAQ Momentum Portfolio    $ 43,806   
Dynamic Market Portfolio      5,764   
FTSE RAFI US 1000 Portfolio      392,582   
FTSE RAFI US 1500 Small-Mid Portfolio      126,371   

For FTSE RAFI US 1000 Portfolio and FTSE RAFI US 1500 Small-Mid Portfolio, the Expense Agreement provides that the fees waived or expenses borne by the Adviser are subject to recapture by the Adviser for up to three years, but no recapture payment will be made by a Fund if it would result in the Fund exceeding its Expense Cap as specified above. For DWA NASDAQ Momentum Portfolio and Dynamic Market Portfolio, the expenses borne by the Adviser are not subject to recapture.

For the following Funds, the amounts available for potential future recapture by the Adviser under the Expense Agreement and the expiration schedule at October 31, 2016 are as follows:

 

     Total
Potential
Recapture
Amounts		      Potential Recapture Amounts
Expiring		  
        4/30/17      4/30/18      4/30/19      10/31/19  
FTSE RAFI US 1000 Portfolio    $ 2,690,572       $ 637,211       $ 811,780       $ 851,900       $ 389,681   
FTSE RAFI US 1500 Small-Mid Portfolio      979,029         273,970         320,530         259,243         125,286   

The Trust has entered into a Distribution Agreement with Invesco Distributors, Inc. (the “Distributor”), which serves as the distributor of Creation Units for each Fund. The Distributor does not maintain a secondary market in the Shares. The Funds are not charged any fees pursuant to the Distribution Agreement. The Distributor is an affiliate of the Adviser.

 

 

   44  

 

 

 

The Adviser has entered into a licensing agreement for each Fund with the following entities (each, a “Licensor”):

 

Fund

   

Licensor

DWA NASDAQ Momentum Portfolio    Dorsey Wright & Associates, LLC
Dynamic Market Portfolio    NYSE Group, Inc.
FTSE RAFI US 1000 Portfolio    FTSE International Ltd.
FTSE RAFI US 1500 Small-Mid Portfolio    FTSE International Ltd.

Each Underlying Index name trademark is owned by its respective Licensor. These trademarks have been licensed to the Adviser for use by the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust’s sub-licensing agreement with the Adviser. The Funds are required to pay the sub-licensing fees that are shown on the Statements of Operations. The Funds are not sponsored, endorsed, sold or promoted by the Licensors, and the Licensors make no representation regarding the advisability of investing in any of the Funds.

The Trust has entered into service agreements whereby The Bank of New York Mellon, a wholly-owned subsidiary of The Bank of New York Mellon Corporation, serves as the administrator, custodian, fund accountant and transfer agent for each Fund.

Note 4. Investments in Affiliates

The Adviser and Invesco Mortgage Capital, Inc. REIT are wholly-owned subsidiaries of Invesco Ltd. and therefore, Invesco Ltd. and Invesco Mortgage Capital, Inc. REIT are considered to be affiliated with the Funds. The table below shows FTSE RAFI US 1000 Portfolio’s transactions in, and earnings from, its investments in affiliates for the six-month period ended October 31, 2016.

FTSE RAFI US 1000 Portfolio

 

     Value
April 30, 2016		      Purchases
at Cost		      Proceeds
from Sales		      Change in
Unrealized
Appreciation
(Depreciation)		      Realized
Gain (Loss)		      Value
October 31, 2016		      Dividend
Income		  
Invesco Ltd.    $ 3,147,763       $ 213,684       $ (185,208 )     $ (289,372 )     $ (21,069 )     $ 2,865,798       $ 56,982   
Invesco Mortgage Capital, Inc. REIT      875,047         43,944         (36,956 )       134,830         4,944         1,021,809         55,121   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Total Investments in Affiliates    $ 4,022,810       $ 257,628       $ (222,164 )     $ (154,542 )     $ (16,125 )     $ 3,887,607       $ 112,103   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Note 5. Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

 

  Level 1 — Prices are determined using quoted prices in an active market for identical assets.

 

  Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

 

  Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect a Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

Except for the Fund listed below, as of October 31, 2016, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedules of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

     Investments in Securities  
     Level 1      Level 2      Level 3      Total  
FTSE RAFI US 1000 Portfolio            

Equity Securities

    $ 4,211,714,749       $ —       $ 172,182       $ 4,211,886,931   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

 

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Note 6. Tax Information

The amount and character of income and gains to be distributed are determined in accordance with federal income tax regulations, which may differ from GAAP. Reclassifications are made to the Funds’ capital accounts to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Funds’ fiscal year-end.

Capital loss carryforwards are calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforwards actually available for the Funds to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Funds had capital loss carryforwards as of April 30, 2016, which expire as follows:

 

                      Post-effective/no
expiration		              
    2017     2018     2019     Short-Term     Long-Term     Total*     Expired  
DWA NASDAQ Momentum Portfolio   $ 15,764,010      $ 14,947,690      $ 3,683,431      $ 12,914,619      $ —      $ 47,309,750      $ 11,353,752   
Dynamic Market Portfolio     96,635,542        104,214,879        15,461,574        69,701,642        —        286,013,637        39,899,556   
FTSE RAFI US 1000 Portfolio     37,905,805        49,808,238        38,490,195        —        —        126,204,238        —   
FTSE RAFI US 1500 Small-Mid Portfolio     4,933,892        5,168,127        2,475,894        1,102,983        3,234,813        16,915,709        —   

 

* Capital loss carryforwards as of the date listed above are reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

Note 7. Investment Transactions

For the six-month period ended October 31, 2016, the cost of securities purchased and proceeds from sales of securities (other than short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, if any) were as follows:

 

     Purchases      Sales  
DWA NASDAQ Momentum Portfolio    $ 15,610,431       $ 17,477,453   
Dynamic Market Portfolio      167,135,877         166,050,933   
FTSE RAFI US 1000 Portfolio      84,032,386         81,730,196   
FTSE RAFI US 1500 Small-Mid Portfolio      54,090,740         50,396,335   

For the six-month period ended October 31, 2016, in-kind transactions associated with creations and redemptions were as follows:

 

     Cost of
Securities
Received		      Value of
Securities
Delivered		  
DWA NASDAQ Momentum Portfolio    $ 7,411,860       $ 9,228,284   
Dynamic Market Portfolio      94,851,075         114,606,365   
FTSE RAFI US 1000 Portfolio      117,955,276         169,828,682   
FTSE RAFI US 1500 Small-Mid Portfolio      320,493,308         81,769,766   

Gains (losses) on in-kind transactions are generally not considered taxable gains (losses) for federal income tax purposes.

At October 31, 2016, the cost of investments on a tax basis includes adjustments for financial reporting purposes, as of the most recently completed federal income tax reporting period-end:

 

     Gross
Unrealized
Appreciation		      Gross
Unrealized
(Depreciation)		      Net
Unrealized
Appreciation		      Cost  
DWA NASDAQ Momentum Portfolio    $ 3,743,278       $ (663,656 )     $ 3,079,622       $ 30,111,224   
Dynamic Market Portfolio      8,585,332         (2,439,602 )       6,145,730         124,108,844   
FTSE RAFI US 1000 Portfolio      518,068,809         (256,352,572 )       261,716,237         3,950,170,694   
FTSE RAFI US 1500 Small-Mid Portfolio      178,803,962         (154,073,240 )       24,730,722         1,461,783,537   

 

 

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Note 8. Trustees’ and Officer’s Fees

Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to the Independent Trustees, any Unaffiliated Trustee, and an Officer of the Trust. The Trustee who is an “interested person” of the Trust does not receive any Trustees’ fees.

The Trust has adopted a deferred compensation plan (the “Plan”). Under the Plan, each Independent Trustee or Unaffiliated Trustee who has executed a Deferred Fee Agreement (a “Participating Trustee”) may defer receipt of all or a portion of his compensation (“Deferral Fees”). Such Deferral Fees are deemed to be invested in select PowerShares Funds. The Deferral Fees payable to the Participating Trustee are valued as of the date such Deferral Fees would have been paid to the Participating Trustee. The value increases with contributions or with increases in the value of the Shares selected, and the value decreases with distributions or with declines in the value of the Shares selected. Obligations under the Plan represent unsecured claims against the general assets of the Funds.

Note 9. Capital

Shares are created and redeemed by each Fund only in Creation Units of 50,000 Shares. Only Authorized Participants are permitted to purchase or redeem Creation Units from the Funds. Such transactions are principally permitted in exchange for Deposit Securities, with a balancing cash component to equate the transaction to the NAV per Share of a Fund of the Trust on the transaction date. However, for all Funds, cash in an amount equivalent to the value of certain securities may be substituted, generally when the securities are not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances.

To the extent that the Funds permit transactions in exchange for Deposit Securities, each Fund may issue Shares in advance of receipt of Deposit Securities subject to various conditions, including a requirement to maintain on deposit with the Trust cash at least equal to 105% of the market value of the missing Deposit Securities. In accordance with the Trust’s Participant Agreement, Creation Units will be issued to an Authorized Participant, notwithstanding the fact that the corresponding Deposit Securities have not been received in part or in whole, in reliance on the undertaking of the Authorized Participant to deliver the missing Deposit Securities as soon as possible, which undertaking shall be secured by the Authorized Participant’s delivery and maintenance of collateral consisting of cash in the form of U.S. dollars in immediately available funds having a value (marked-to-market daily) at least equal to 105%, which the Adviser may change from time to time, of the value of the missing Deposit Securities.

Certain transaction fees may be charged by the Funds for creations and redemptions, which are treated as increases in capital.

Transactions in each Fund’s Shares are disclosed in detail in the Statements of Changes in Net Assets.

Note 10. Indemnifications

Under the Trust’s organizational documents, its officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. Each Independent Trustee and Unaffiliated Trustee is also indemnified against certain liabilities arising out of the performance of his duties to the Trust pursuant to an Indemnification Agreement between such trustee and the Trust. Additionally, in the normal course of business, the Trust enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred. However, based on experience, the Trust believes the risk of loss to be remote.

Note 11. Subsequent Event

Effective December 7, 2016, DWA NASDAQ Momentum Portfolio’s Shares were listed and began trading on The NASDAQ Stock Market LLC.

 

 

   47  

 

 

Fees and Expenses

 

As a shareholder of a Fund of the PowerShares Exchange-Traded Fund Trust, you incur advisory fees and other Fund expenses. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended October 31, 2016.

Actual Expenses

The first line in the following tables provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line in the following tables provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratio and an assumed annualized rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the tables are meant to highlight your ongoing costs only, and do not reflect any transactional costs, such as sales charges and brokerage commissions. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs and indirect expenses were included, your costs would have been higher.

 

    Beginning
Account Value
May 1, 2016		     Ending
Account Value
October 31, 2016		     Annualized
Expense Ratio
Based on the
Six-Month Period		     Expenses Paid
During the
Six-Month  Period(1)		  
PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)        

Actual

   $ 1,000.00      $ 1,055.72        0.60 %    $ 3.11   

Hypothetical (5% return before expenses)

     1,000.00        1,022.18        0.60        3.06   
PowerShares Dynamic Market Portfolio (PWC)        

Actual

     1,000.00        1,041.30        0.60        3.09   

Hypothetical (5% return before expenses)

     1,000.00        1,022.18        0.60        3.06   
PowerShares FTSE RAFI US 1000 Portfolio (PRF)        

Actual

     1,000.00        1,028.60        0.39        1.99   

Hypothetical (5% return before expenses)

     1,000.00        1,023.24        0.39        1.99   
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)        

Actual

     1,000.00        1,044.92        0.39        2.01   

Hypothetical (5% return before expenses)

     1,000.00        1,023.24        0.39        1.99   

 

(1)  Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six-month period ended October 31, 2016. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 184/365.

 

 

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(This Page Intentionally Left Blank)

Proxy Voting Policies and Procedures

A description of the Trust’s proxy voting policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available, without charge and upon request, by calling (800) 983-0903. This information is also available on the Securities and Exchange Commission’s (“Commission”) website at www.sec.gov.

Information regarding how each Fund voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended June 30, is also available, without charge and upon request, by (i) calling (800) 983-0903; or (ii) accessing the Trust’s Form N-PX on the Commission’s website at www.sec.gov.

Quarterly Portfolios

The Trust files its complete schedule of portfolio holdings for the Funds with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Trust’s Forms N-Q are available on the Commission’s website at www.sec.gov. The Trust’s Forms N-Q may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330.

Frequency Distribution of Discounts and Premiums

A table showing the number of days the market price of each Fund’s shares was greater than the Fund’s net asset value, and the number of days it was less than the Fund’s net asset value (i.e., premium or discount) for the most recently completed calendar year, and the calendar quarters since that year end (or the life of the Fund, if shorter) may be found at the Fund’s website at www.invescopowershares.com.

P-PS-SAR-2    LOGO

©2016 Invesco PowerShares Capital Management LLC

3500 Lacey Road, Suite 700

Downers Grove, IL 60515

   
powershares.com    800 983 0903   LOGO   @PowerShares   

LOGO

 

     October 31, 2016

2016 Semi-Annual Report to Shareholders

 

PWB    PowerShares Dynamic Large Cap Growth Portfolio
PWV    PowerShares Dynamic Large Cap Value Portfolio
EQWS    PowerShares Russell 2000 Equal Weight Portfolio
PXSG    PowerShares Russell 2000 Pure Growth Portfolio
PXSV    PowerShares Russell 2000 Pure Value Portfolio
EQWM    PowerShares Russell Midcap Equal Weight Portfolio
PXMG    PowerShares Russell Midcap Pure Growth Portfolio
PXMV    PowerShares Russell Midcap Pure Value Portfolio
EQWL    PowerShares Russell Top 200 Equal Weight Portfolio
PXLG    PowerShares Russell Top 200 Pure Growth Portfolio
PXLV    PowerShares Russell Top 200 Pure Value Portfolio
PZI    PowerShares Zacks Micro Cap Portfolio

 

Table of Contents

 

Style Portfolios   
Schedules of Investments   

PowerShares Dynamic Large Cap Growth Portfolio (PWB)

      3   

PowerShares Dynamic Large Cap Value Portfolio (PWV)

      5   

PowerShares Russell 2000 Equal Weight Portfolio (EQWS)

     7   

PowerShares Russell 2000 Pure Growth Portfolio (PXSG)

     26   

PowerShares Russell 2000 Pure Value Portfolio (PXSV)

     30   

PowerShares Russell Midcap Equal Weight Portfolio (EQWM)

     35   

PowerShares Russell Midcap Pure Growth Portfolio (PXMG)

     44   

PowerShares Russell Midcap Pure Value Portfolio (PXMV)

     46   

PowerShares Russell Top 200 Equal Weight Portfolio (EQWL)

     49   

PowerShares Russell Top 200 Pure Growth Portfolio (PXLG)

     52   

PowerShares Russell Top 200 Pure Value Portfolio (PXLV)

     54   

PowerShares Zacks Micro Cap Portfolio (PZI)

      56   
Statements of Assets and Liabilities      62   
Statements of Operations      64   
Statements of Changes in Net Assets      66   
Financial Highlights      70   
Notes to Financial Statements      79   
Fees and Expenses      89   

 

 

   2  

 

 

PowerShares Dynamic Large Cap Growth Portfolio (PWB)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Information Technology      30.6   
Health Care      24.2   
Consumer Discretionary      18.3   
Consumer Staples      12.4   
Financials      5.7   
Industrials      4.7   
Materials      4.0   
Money Market Fund Plus Other Assets Less Liabilities      0.1   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks—99.9%   
   Consumer Discretionary—18.3%   
  18,864       Amazon.com, Inc.(b)    $ 14,899,165   
  118,748       CBS Corp., Class B      6,723,512   
  81,179       Dollar General Corp.      5,608,657   
  105,754       Home Depot, Inc. (The)      12,903,046   
  79,233       Lowe’s Cos., Inc.      5,280,879   
  241,769       NIKE, Inc., Class B      12,131,968   
  249,997       Starbucks Corp.      13,267,341   
  77,895       TJX Cos., Inc. (The)      5,744,756   
     

 

 

  
        76,559,324   
     

 

 

  
   Consumer Staples—12.4%   
  36,824       Constellation Brands, Inc., Class A      6,154,027   
  86,874       Costco Wholesale Corp.      12,846,059   
  85,982       General Mills, Inc.      5,329,164   
  142,481       Mondelez International, Inc., Class A      6,403,096   
  284,966       Reynolds American, Inc.      15,695,927   
  117,007       Sysco Corp.      5,630,377   
     

 

 

  
        52,058,650   
     

 

 

  
   Financials—5.7%   
  201,314       Charles Schwab Corp. (The)      6,381,654   
  58,116       CME Group, Inc., Class A      5,817,411   
  90,787       Marsh & McLennan Cos., Inc.      5,754,988   
  50,689       S&P Global, Inc.      6,176,455   
     

 

 

  
        24,130,508   
     

 

 

  
   Health Care—24.2%   
  130,321       Baxter International, Inc.      6,201,976   
  35,246       Becton, Dickinson and Co.      5,918,156   
  258,231       Boston Scientific Corp.(b)      5,681,082   
  243,742       Bristol-Myers Squibb Co.      12,408,905   
  132,722       Celgene Corp.(b)      13,561,534   
  53,483       Edwards Lifesciences Corp.(b)      5,092,651   
  183,595       Eli Lilly & Co.      13,556,655   
  34,623       Humana, Inc.      5,938,883   
  8,942       Intuitive Surgical, Inc.(b)      6,009,739   
  54,170       Stryker Corp.      6,248,510   
Number
of Shares		           Value  
   Common Stocks (continued)   
   Health Care (continued)   
  40,557       Thermo Fisher Scientific, Inc.    $ 5,963,096   
  104,316       UnitedHealth Group, Inc.      14,742,980   
     

 

 

  
        101,324,167   
     

 

 

  
   Industrials—4.7%   
  37,082       FedEx Corp.      6,464,134   
  458,899       General Electric Co.      13,353,961   
     

 

 

  
        19,818,095   
     

 

 

  
   Information Technology—30.6%   
  53,355       Accenture PLC, Class A      6,201,985   
  149,746       Activision Blizzard, Inc.      6,464,535   
  60,359       Adobe Systems, Inc.(b)      6,489,196   
  18,101       Alphabet, Inc., Class A(b)      14,660,000   
  99,905       Amphenol Corp., Class A      6,586,737   
  207,018       Applied Materials, Inc.      6,020,083   
  75,268       Electronic Arts, Inc.(b)      5,910,043   
  115,606       Facebook, Inc., Class A(b)      15,143,230   
  59,581       Fiserv, Inc.(b)      5,867,537   
  55,800       Intuit, Inc.      6,067,692   
  149,830       MasterCard, Inc., Class A      16,034,807   
  101,075       Paychex, Inc.      5,579,340   
  87,911       Texas Instruments, Inc.      6,228,494   
  178,317       Visa, Inc., Class A      14,712,936   
  82,357       VMware, Inc., Class A(b)      6,473,260   
     

 

 

  
        128,439,875   
     

 

 

  
   Materials—4.0%   
  49,985       Ecolab, Inc.      5,706,787   
  152,843       Newmont Mining Corp.      5,661,305   
  21,424       Sherwin-Williams Co. (The)      5,245,881   
     

 

 

  
        16,613,973   
     

 

 

  
   Total Common Stocks
(Cost $393,017,075)		      418,944,592   
     

 

 

  
     
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   3  

 

 

PowerShares Dynamic Large Cap Growth Portfolio (PWB) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Money Market Fund—0.1%   
  285,266       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(c)
(Cost $285,266)		    $ 285,266   
     

 

 

  
   Total Investments
(Cost $393,302,341)—100.0%		      419,229,858   
   Other assets less liabilities—(0.0)%      (21,602 ) 
     

 

 

  
   Net Assets—100.0%    $ 419,208,256   
     

 

 

  

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  Non-income producing security.
(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   4  

 

 

PowerShares Dynamic Large Cap Value Portfolio (PWV)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Financials      28.2   
Information Technology      19.9   
Industrials      18.2   
Health Care      15.5   
Telecommunication Services      6.2   
Consumer Staples      4.9   
Materials      4.2   
Utilities      1.5   
Consumer Discretionary      1.4   
Other Assets Less Liabilities      0.0   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks—100.0%   
   Consumer Discretionary—1.4%   
  173,469       Omnicom Group, Inc.    $ 13,846,296   
     

 

 

  
   Consumer Staples—4.9%   
  317,716       ConAgra Foods, Inc.      15,307,557   
  479,547       Wal-Mart Stores, Inc.      33,577,881   
     

 

 

  
        48,885,438   
     

 

 

  
   Financials—28.2%   
  200,534       Aflac, Inc.      13,810,777   
  213,554       Allstate Corp. (The)      14,500,317   
  225,187       American Express Co.      14,956,920   
  361,144       Bank of New York Mellon Corp. (The)      15,626,701   
  116,114       Chubb Ltd.      14,746,478   
  731,020       Citigroup, Inc.      35,929,633   
  252,321       Discover Financial Services      14,213,242   
  516,923       JPMorgan Chase & Co.      35,802,087   
  354,324       MetLife, Inc.      16,639,055   
  472,622       Morgan Stanley      15,865,920   
  170,457       PNC Financial Services Group, Inc. (The)      16,295,689   
  212,010       State Street Corp.      14,885,222   
  342,547       SunTrust Banks, Inc.      15,493,401   
  541,915       Synchrony Financial      15,493,350   
  124,307       Travelers Cos., Inc. (The)      13,447,531   
  337,258       U.S. Bancorp      15,095,668   
     

 

 

  
        282,801,991   
     

 

 

  
   Health Care—15.5%   
  113,106       Cigna Corp.      13,440,386   
  204,029       Express Scripts Holding Co.(b)      13,751,555   
  426,488       Gilead Sciences, Inc.      31,402,311   
  288,042       Johnson & Johnson      33,409,991   
  548,030       Merck & Co., Inc.      32,180,322   
  982,263       Pfizer, Inc.      31,147,560   
     

 

 

  
        155,332,125   
     

 

 

  
Number
of Shares		           Value  
   Common Stocks (continued)   
   Industrials—18.2%   
  521,821       CSX Corp.    $ 15,920,759   
  116,788       Cummins, Inc.      14,927,842   
  401,348       Delta Air Lines, Inc.      16,764,306   
  217,201       Eaton Corp. PLC      13,850,908   
  270,608       Emerson Electric Co.      13,714,413   
  95,867       General Dynamics Corp.      14,450,992   
  158,960       Norfolk Southern Corp.      14,783,280   
  68,576       Northrop Grumman Corp.      15,703,904   
  244,237       PACCAR, Inc.      13,413,496   
  398,940       Southwest Airlines Co.      15,977,547   
  317,055       United Technologies Corp.      32,403,021   
     

 

 

  
        181,910,468   
     

 

 

  
   Information Technology—19.9%   
  1,091,506       Cisco Systems, Inc.      33,487,404   
  670,195       Hewlett Packard Enterprise Co.      15,059,282   
  1,018,587       HP, Inc.      14,759,325   
  973,302       Intel Corp.      33,939,041   
  215,301       International Business Machines Corp.      33,089,611   
  830,979       Oracle Corp.      31,926,213   
  545,231       QUALCOMM, Inc.      37,468,274   
     

 

 

  
        199,729,150   
     

 

 

  
   Materials—4.2%   
  270,955       Dow Chemical Co. (The)      14,580,089   
  208,389       E.I. du Pont de Nemours & Co.      14,335,079   
  302,482       International Paper Co.      13,620,764   
     

 

 

  
        42,535,932   
     

 

 

  
   Telecommunication Services—6.2%   
  831,585       AT&T, Inc.      30,594,012   
  647,455       Verizon Communications, Inc.      31,142,586   
     

 

 

  
        61,736,598   
     

 

 

  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   5  

 

 

PowerShares Dynamic Large Cap Value Portfolio (PWV) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks (continued)   
   Utilities—1.5%   
  198,740       Edison International    $ 14,603,415   
     

 

 

  
   Total Investments
(Cost $954,500,637)—100.0%		      1,001,381,413   
   Other assets less liabilities—0.0%      73,250   
     

 

 

  
   Net Assets—100.0%    $ 1,001,454,663   
     

 

 

  

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  Non-income producing security.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   6  

 

 

PowerShares Russell 2000 Equal Weight Portfolio (EQWS)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sector Breakdown
(% of the Fund’s Net Assets) 
as of October 31, 2016
  
Industrials      13.5   
Information Technology      13.5   
Consumer Discretionary      11.5   
Consumer Staples      10.9   
Energy      10.7   
Health Care      10.2   
Financials      9.0   
Materials      7.5   
Utilities      7.2   
Telecommunication Services      3.7   
Real Estate      2.3   
Money Market Funds Plus Other Assets Less Liabilities      (0.0)   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests—100.0%    
   Consumer Discretionary—11.5%   
  510       1-800-FLOWERS.COM, Inc.,
Class A(b)		    $ 4,870   
  188       Aaron’s, Inc.      4,645   
  290       Abercrombie & Fitch Co., Class A      4,237   
  151       AMC Entertainment Holdings, Inc., Class A      4,749   
  287       American Axle & Manufacturing Holdings, Inc.(b)      5,143   
  260       American Eagle Outfitters, Inc.      4,430   
  245       American Public Education, Inc.(b)      4,937   
  132       America’s Car-Mart, Inc.(b)      5,392   
  587       Apollo Education Group, Inc.,
Class A(b)		      5,160   
  318       Arctic Cat, Inc.      4,767   
  86       Asbury Automotive Group, Inc.(b)      4,382   
  841       Ascena Retail Group, Inc.(b)      4,112   
  256       Ascent Capital Group, Inc., Class A(b)      5,217   
  325       At Home Group, Inc.(b)      3,640   
  493       Barnes & Noble Education, Inc.(b)      4,590   
  433       Barnes & Noble, Inc.      4,460   
  188       Bassett Furniture Industries, Inc.      4,315   
  413       Beazer Homes USA, Inc.(b)      4,225   
  386       Belmond Ltd., Class A (United Kingdom)(b)      4,999   
  333       Big 5 Sporting Goods Corp.      5,161   
  99       Big Lots, Inc.      4,297   
  11       Biglari Holdings, Inc.(b)      4,820   
  130       BJ’s Restaurants, Inc.(b)      4,693   
  266       Bloomin’ Brands, Inc.      4,602   
  134       Blue Nile, Inc.      4,681   
  122       Bob Evans Farms, Inc.      5,029   
  289       Bojangles’, Inc.(b)      4,277   
  436       Boot Barn Holdings, Inc.(b)      5,581   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Consumer Discretionary (continued)   
  245       Boyd Gaming Corp.(b)    $ 4,376   
  698       Bridgepoint Education, Inc.(b)      4,718   
  71       Bright Horizons Family Solutions,
Inc.(b)		      4,751   
  194       Buckle, Inc. (The)      4,045   
  32       Buffalo Wild Wings, Inc.(b)      4,661   
  434       Build-A-Bear Workshop, Inc.(b)      5,859   
  375       Caesars Acquisition Co., Class A(b)      4,369   
  615       Caesars Entertainment Corp.(b)      4,366   
  187       Caleres, Inc.      4,677   
  400       Callaway Golf Co.      4,084   
  870       Cambium Learning Group, Inc.(b)      4,507   
  82       Capella Education Co.      5,994   
  701       Career Education Corp.(b)      5,040   
  144       Carmike Cinemas, Inc.(b)      4,702   
  199       Carriage Services, Inc.      4,704   
  356       Carrols Restaurant Group, Inc.(b)      4,450   
  143       Cato Corp. (The), Class A      4,243   
  49       Cavco Industries, Inc.(b)      4,528   
  2,042       Central European Media Enterprises Ltd., Class A (Bermuda)(b)      5,003   
  694       Century Casinos, Inc.(b)      4,400   
  226       Century Communities, Inc.(b)      4,452   
  92       Cheesecake Factory, Inc. (The)      4,893   
  660       Chegg, Inc.(b)      4,389   
  384       Chico’s FAS, Inc.      4,481   
  59       Children’s Place, Inc. (The)      4,481   
  32       Churchill Downs, Inc.      4,352   
  162       Chuy’s Holdings, Inc.(b)      4,601   
  240       Citi Trends, Inc.      4,766   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   7  

 

 

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Consumer Discretionary (continued)   
  317       ClubCorp Holdings, Inc.    $ 3,661   
  256       Collectors Universe, Inc.      4,810   
  84       Columbia Sportswear Co.      4,758   
  435       Conn’s, Inc.(b)      4,132   
  959       Container Store Group, Inc. (The)(b)      4,680   
  128       Cooper Tire & Rubber Co.      4,704   
  51       Cooper-Standard Holding, Inc.(b)      4,655   
  820       Core-Mark Holding Co., Inc.      28,987   
  35       Cracker Barrel Old Country Store, Inc.      4,830   
  568       Crocs, Inc.(b)      4,368   
  187       CSS Industries, Inc.      4,694   
  382       Culp, Inc.      10,696   
  22       Daily Journal Corp.(b)      4,646   
  314       Dana, Inc.      4,861   
  119       Dave & Buster’s Entertainment, Inc.(b)      4,921   
  77       Deckers Outdoor Corp.(b)      4,019   
  338       Del Frisco’s Restaurant Group, Inc.(b)      4,833   
  402       Del Taco Restaurants, Inc.(b)      5,391   
  289       Delta Apparel, Inc.(b)      4,768   
  450       Denny’s Corp.(b)      4,666   
  1,089       Destination XL Group, Inc.(b)      4,410   
  206       DeVry Education Group, Inc.      4,676   
  59       DineEquity, Inc.      4,667   
  73       Dorman Products, Inc.(b)      4,690   
  47       Drew Industries, Inc.      4,209   
  227       DSW, Inc., Class A      4,715   
  175       Duluth Holdings, Inc., Class B(b)      4,751   
  306       E.W. Scripps Co. (The), Class A(b)      4,058   
  349       El Pollo Loco Holdings, Inc.(b)      4,258   
  325       Eldorado Resorts, Inc.(b)      3,932   
  247       Empire Resorts, Inc.(b)      4,730   
  367       Entercom Communications Corp., Class A      4,844   
  649       Entravision Communications Corp., Class A      4,348   
  293       Eros International PLC, Class A(b)      5,201   
  372       Escalade, Inc.      4,520   
  141       Ethan Allen Interiors, Inc.      4,329   
  321       Etsy, Inc.(b)      4,167   
  404       Express, Inc.(b)      4,856   
  501       Federal-Mogul Holdings Corp.(b)      4,639   
  182       Fiesta Restaurant Group, Inc.(b)      4,805   
  207       Finish Line, Inc. (The), Class A      4,076   
  112       Five Below, Inc.(b)      4,209   
  88       Flexsteel Industries, Inc.      3,687   
  418       Fogo de Chao, Inc.(b)      4,953   
  164       Fossil Group, Inc.(b)      4,472   
  211       Fox Factory Holding Corp.(b)      4,579   
  298       Francesca’s Holdings Corp.(b)      4,789   
  486       Fred’s, Inc., Class A      4,437   
  227       FTD Cos., Inc.(b)      4,567   
  618       Gaia, Inc., Class A(b)      4,573   
  403       Gannett Co., Inc.      3,131   
  88       Genesco, Inc.(b)      4,734   
  154       Gentherm, Inc.(b)      4,335   
  162       G-III Apparel Group Ltd.(b)      4,231   
  677       Global Eagle Entertainment, Inc.(b)      5,450   
  1,483       GNC Holdings, Inc., Class A      19,917   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Consumer Discretionary (continued)   
  369       Golden Entertainment, Inc.    $ 4,229   
  281       GoPro, Inc., Class A(b)      3,591   
  117       Grand Canyon Education, Inc.(b)      5,106   
  464       Gray Television, Inc.(b)      4,130   
  2,480       Green Brick Partners, Inc.(b)      18,972   
  77       Group 1 Automotive, Inc.      4,641   
  331       Guess?, Inc.      4,468   
  328       Habit Restaurants, Inc. (The), Class A(b)      4,641   
  232       Haverty Furniture Cos., Inc.      4,118   
  55       Helen of Troy Ltd.(b)      4,482   
  384       Hemisphere Media Group, Inc.,
Class A(b)		      4,493   
  116       Hibbett Sports, Inc.(b)      4,507   
  177       Hooker Furniture Corp.      4,655   
  244       Horizon Global Corp.(b)      4,890   
  364       Houghton Mifflin Harcourt Co.(b)      4,605   
  2,841       Hovnanian Enterprises, Inc., Class A(b)      4,432   
  120       HSN, Inc.      4,524   
  577       Iconix Brand Group, Inc.(b)      4,547   
  279       Ilg, Inc.      4,570   
  159       IMAX Corp.(b)      4,810   
  335       Installed Building Products, Inc.(b)      11,072   
  141       International Speedway Corp., Class A      4,639   
  281       Intrawest Resorts Holdings, Inc.(b)      4,611   
  128       iRobot Corp.(b)      6,490   
  209       Isle of Capri Casinos, Inc.(b)      4,389   
  473       J. Alexander’s Holdings, Inc.(b)      4,257   
  48       Jack in the Box, Inc.      4,499   
  548       JAKKS Pacific, Inc.(b)      3,672   
  433       Jamba, Inc.(b)      4,568   
  129       Johnson Outdoors, Inc., Class A      4,641   
  345       K12, Inc.(b)      3,740   
  287       KB Home      4,173   
  381       Kirkland’s, Inc.(b)      4,652   
  339       Kona Grill, Inc.(b)      3,644   
  439       La Quinta Holdings, Inc.(b)      4,394   
  314       Lands’ End, Inc.(b)      4,898   
  182       La-Z-Boy, Inc.      4,259   
  130       LGI Homes, Inc.(b)      3,869   
  272       Libbey, Inc.      4,355   
  274       Liberty Media Corp.-Liberty Braves, Class C(b)      4,568   
  169       Liberty Media Corp.-Liberty Media,
Class C(b)		      4,632   
  367       Liberty Tax, Inc., Class A      4,349   
  213       Liberty TripAdvisor Holdings, Inc.,
Series A(b)		      4,729   
  278       LifeLock, Inc.(b)      4,476   
  370       Lifetime Brands, Inc.      5,235   
  515       Lindblad Expeditions Holdings, Inc.(b)      4,218   
  52       Lithia Motors, Inc., Class A      4,461   
  147       Loral Space & Communications, Inc.(b)      5,704   
  1,131       Luby’s, Inc.(b)      4,739   
  262       Lumber Liquidators Holdings, Inc.(b)      4,064   
  205       M/I Homes, Inc.(b)      4,410   
  309       Malibu Boats, Inc., Class A(b)      4,533   
  190       Marcus Corp. (The)      5,035   
  528       Marine Products Corp.      4,937   
  224       MarineMax, Inc.(b)      4,469   
  65       Marriott Vacations Worldwide Corp.      4,133   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   8  

 

 

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Consumer Discretionary (continued)   
  407       MCBC Holdings, Inc.    $ 4,534   
  183       MDC Holdings, Inc.      4,339   
  437       MDC Partners, Inc., Class A      3,693   
  264       Media General, Inc.(b)      4,448   
  92       Meredith Corp.      4,172   
  137       Meritage Homes Corp.(b)      4,240   
  298       Metaldyne Performance Group, Inc.      4,604   
  480       Modine Manufacturing Co.(b)      5,256   
  190       Monarch Casino & Resort, Inc.(b)      4,493   
  77       Monro Muffler Brake, Inc.      4,235   
  165       Motorcar Parts of America, Inc.(b)      4,330   
  220       Movado Group, Inc.      4,851   
  260       MSG Networks, Inc., Class A(b)      4,966   
  82       NACCO Industries, Inc., Class A      5,998   
  90       Nathan’s Famous, Inc.(b)      4,797   
  320       National CineMedia, Inc.      4,438   
  201       Nautilus, Inc.(b)      3,538   
  458       New Home Co., Inc. (The)(b)      4,589   
  295       New Media Investment Group, Inc.      4,248   
  383       New York Times Co. (The), Class A      4,175   
  88       Nexstar Broadcasting Group, Inc., Class A      4,294   
  947       Noodles & Co., Class A(b)      4,451   
  159       Nutrisystem, Inc.      5,040   
  1,303       Office Depot, Inc.      4,104   
  180       Ollie’s Bargain Outlet Holdings, Inc.(b)      4,923   
  311       Overstock.com, Inc.(b)      4,556   
  69       Oxford Industries, Inc.      4,328   
  58       Papa John’s International, Inc.      4,376   
  277       Party City Holdco, Inc.(b)      4,501   
  358       Penn National Gaming, Inc.(b)      4,629   
  1,176       Performance Sports Group Ltd.(b)      1,023   
  242       Perry Ellis International, Inc.(b)      4,499   
  1,472       PetMed Express, Inc.      29,249   
  1,128       Pier 1 Imports, Inc.      4,862   
  382       Pinnacle Entertainment, Inc.(b)      4,527   
  233       Planet Fitness, Inc., Class A(b)      4,940   
  86       Popeyes Louisiana Kitchen, Inc.(b)      4,591   
  362       Potbelly Corp.(b)      4,724   
  1,593       Radio One, Inc., Class D(b)      3,982   
  347       Reading International, Inc., Class A(b)      4,577   
  581       Red Lion Hotels Corp.(b)      4,880   
  104       Red Robin Gourmet Burgers, Inc.(b)      4,784   
  206       Red Rock Resorts, Inc., Class A      4,511   
  378       Regis Corp.(b)      4,793   
  373       Rent-A-Center, Inc.      3,764   
  145       Restoration Hardware Holdings, Inc.(b)      4,201   
  1,786       Ruby Tuesday, Inc.(b)      5,304   
  314       Ruth’s Hospitality Group, Inc.      4,977   
  106       Saga Communications, Inc., Class A      4,452   
  759       Salem Media Group, Inc., Class A      4,137   
  124       Scholastic Corp.      4,743   
  421       Scientific Games Corp., Class A(b)      5,220   
  421       Sears Holdings Corp.(b)      4,677   
  853       Sears Hometown and Outlet Stores, Inc.(b)      4,137   
  344       SeaWorld Entertainment, Inc.      4,819   
  188       Select Comfort Corp.(b)      3,608   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Consumer Discretionary (continued)   
  593       Sequential Brands Group, Inc.(b)    $ 4,270   
  133       Shake Shack, Inc., Class A(b)      4,241   
  178       Shoe Carnival, Inc.      4,516   
  107       Shutterfly, Inc.(b)      5,243   
  168       Sinclair Broadcast Group, Inc., Class A      4,217   
  182       Smith & Wesson Holding Corp.(b)      4,810   
  257       Sonic Automotive, Inc., Class A      4,600   
  172       Sonic Corp.      3,941   
  128       Sotheby’s      4,593   
  572       Spartan Motors, Inc.      4,891   
  269       Speedway Motorsports, Inc.      5,060   
  451       Sportsman’s Warehouse Holdings, Inc.(b)      4,149   
  859       Stage Stores, Inc.      4,372   
  101       Standard Motor Products, Inc.      4,939   
  621       Stein Mart, Inc.      3,738   
  135       Steven Madden Ltd.(b)      4,509   
  258       Stoneridge, Inc.(b)      3,824   
  129       Strattec Security Corp.      4,579   
  100       Strayer Education, Inc.(b)      5,866   
  83       Sturm Ruger & Co., Inc.      5,104   
  162       Superior Industries International, Inc.      3,969   
  241       Superior Uniform Group, Inc.      4,287   
  306       Tailored Brands, Inc.      4,835   
  272       Taylor Morrison Home Corp.,
Class A(b)		      4,640   
  83       Tenneco, Inc.(b)      4,571   
  115       Texas Roadhouse, Inc.      4,660   
  307       Tile Shop Holdings, Inc. (The)(b)      5,204   
  519       Tilly’s, Inc., Class A(b)      4,816   
  322       Time, Inc.      4,186   
  162       TopBuild Corp.(b)      4,881   
  202       Tower International, Inc.      4,383   
  496       Townsquare Media, Inc., Class A(b)      4,156   
  365       TRI Pointe Homes, Inc.(b)      3,953   
  278       tronc, Inc.      3,344   
  809       Tuesday Morning Corp.(b)      4,005   
  310       UCP, Inc., Class A(b)      2,821   
  415       Unifi, Inc.(b)      11,931   
  369       Unique Fabricating, Inc.      4,609   
  62       Universal Electronics, Inc.(b)      4,349   
  300       Vera Bradley, Inc.(b)      4,011   
  798       Vince Holding Corp.(b)      4,349   
  176       Vitamin Shoppe, Inc.(b)      4,409   
  114       Wayfair, Inc., Class A(b)      3,800   
  199       WCI Communities, Inc.(b)      4,607   
  452       Weight Watchers International, Inc.(b)      4,647   
  532       West Marine, Inc.(b)      4,256   
  178       Weyco Group, Inc.      4,505   
  259       William Lyon Homes, Class A(b)      4,626   
  162       Wingstop, Inc., Class A      4,335   
  45       Winmark Corp.      4,813   
  203       Winnebago Industries, Inc.      5,735   
  204       Wolverine World Wide, Inc.      4,355   
  724       Workhorse Group, Inc.(b)      4,807   
  228       World Wrestling Entertainment, Inc., Class A      4,031   
  621       ZAGG, Inc.(b)      4,036   
  197       Zoe’s Kitchen, Inc.(b)      4,466   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   9  

 

 

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Consumer Discretionary (continued)   
  268       Zumiez, Inc.(b)    $ 5,963   
     

 

 

  
        1,373,193   
     

 

 

  
   Consumer Staples—10.9%   
  1,142       Advancepierre Foods Holdings, Inc.      31,930   
  1,851       Amplify Snack Brands, Inc.(b)      26,821   
  874       Andersons, Inc. (The)      33,256   
  822       Avon Products, Inc.      5,384   
  616       B&G Foods, Inc.      26,118   
  200       Boston Beer Co., Inc. (The),
Class A(b)		      31,050   
  457       Calavo Growers, Inc.      27,032   
  752       Cal-Maine Foods, Inc.      29,065   
  194       Central Garden & Pet Co.,
Class A(b)		      4,528   
  2,768       Chefs’ Warehouse, Inc. (The)(b)      31,555   
  203       Coca-Cola Bottling Co. Consolidated      28,684   
  1,565       Craft Brew Alliance, Inc.(b)      25,118   
  425       Darling Ingredients, Inc.(b)      5,780   
  1,869       Dean Foods Co.      34,128   
  829       Farmer Brothers Co.(b)      27,108   
  512       Fresh Del Monte Produce, Inc.      30,899   
  3,401       Freshpet, Inc.(b)      28,908   
  176       HRG Group, Inc.(b)      2,647   
  796       Ingles Markets, Inc., Class A      31,442   
  151       Inter Parfums, Inc.      4,923   
  255       J & J Snack Foods Corp.      31,148   
  568       John B. Sanfilippo & Son, Inc.      28,786   
  227       Lancaster Colony Corp.      29,658   
  926       Landec Corp.(b)      12,269   
  1,626       Limoneira Co.      32,016   
  823       Medifast, Inc.      33,792   
  789       MGP Ingredients, Inc.      27,781   
  659       National Beverage Corp.(b)      31,131   
  1,032       Natural Health Trends Corp.      24,077   
  1,094       Nutraceutical International Corp.(b)      31,507   
  309       Oil-Dri Corp. of America      10,432   
  1,288       Omega Protein Corp.(b)      28,722   
  1,111       Orchids Paper Products Co.      28,508   
  1,211       Performance Food Group Co.(b)      29,064   
  57       PriceSmart, Inc.      5,184   
  2,565       Primo Water Corp.(b)      33,576   
  125       Revlon, Inc., Class A(b)      4,250   
  320       Sanderson Farms, Inc.      28,794   
  9       Seaboard Corp.(b)      30,465   
  2,430       Smart & Final Stores, Inc.(b)      29,160   
  914       Snyder’s-Lance, Inc.      32,511   
  1,063       SpartanNash Co.      29,764   
  6,711       SUPERVALU, Inc.(b)      28,790   
  839       Tootsie Roll Industries, Inc., Class A      29,743   
  782       United Natural Foods, Inc.(b)      32,641   
  524       Universal Corp.      28,401   
  225       USANA Health Sciences, Inc.(b)      28,912   
  1,385       Vector Group Ltd.      29,002   
  948       Village Super Market, Inc., Class A      28,345   
  262       WD-40 Co.      27,936   
  582       Weis Markets, Inc.      32,377   
     

 

 

  
        1,305,118   
     

 

 

  
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Energy—10.7%   
  12,185       Abraxas Petroleum Corp.(b)    $ 19,740   
  2,474       Alon USA Energy, Inc.      19,940   
  1,706       Archrock, Inc.      19,790   
  771       Ardmore Shipping Corp. (Ireland)      4,510   
  2,742       Atwood Oceanics, Inc.      20,921   
  3,818       Bill Barrett Corp.(b)      19,815   
  462       Bristow Group, Inc.      4,625   
  1,954       California Resources Corp.(b)      20,048   
  1,457       Callon Petroleum Co.(b)      18,926   
  1,974       CARBO Ceramics, Inc.      12,041   
  577       Carrizo Oil & Gas, Inc.(b)      19,520   
  258       Clayton Williams Energy, Inc.(b)      22,526   
  4,538       Clean Energy Fuels Corp.(b)      18,651   
  18,277       Cobalt International Energy, Inc.(b)      17,255   
  2,238       Contango Oil & Gas Co.(b)      17,524   
  1,391       CVR Energy, Inc.      18,445   
  2,734       Dawson Geophysical Co.(b)      17,908   
  1,181       Delek US Holdings, Inc.      19,959   
  7,506       Denbury Resources, Inc.(b)      17,939   
  1,322       DHT Holdings, Inc.      5,381   
  956       Dorian LPG Ltd.(b)      5,382   
  6,558       Eclipse Resources Corp.(b)      17,969   
  5,292       EP Energy Corp., Class A(b)      18,840   
  2,723       Era Group, Inc.(b)      20,559   
  3,184       Evolution Petroleum Corp.      24,517   
  1,394       Exterran Corp.(b)      22,039   
  2,861       Fairmount Santrol Holdings, Inc.(b)      24,576   
  1,098       Forum Energy Technologies, Inc.(b)      19,764   
  775       Frontline Ltd. (Norway)      5,557   
  412       GasLog Ltd. (Monaco)      6,324   
  1,121       Gener8 Maritime, Inc.(b)      4,731   
  1,058       Geospace Technologies Corp.(b)      19,499   
  968       Golar LNG Ltd. (Bermuda)      21,190   
  794       Green Plains, Inc.      20,644   
  2,769       Helix Energy Solutions Group, Inc.(b)      24,146   
  4,329       Hornbeck Offshore Services, Inc.(b)      17,186   
  4,104       Independence Contract Drilling, Inc.(b)      16,334   
  7,145       Jones Energy, Inc., Class A(b)      29,294   
  964       Matador Resources Co.(b)      21,025   
  1,115       Matrix Service Co.(b)      19,735   
  4,466       McDermott International, Inc.(b)      22,955   
  890       Natural Gas Services Group, Inc.(b)      19,313   
  4,234       Navios Maritime Acquisition Corp.      5,377   
  3,032       Newpark Resources, Inc.(b)      19,102   
  547       Nordic American Tankers Ltd.      4,469   
  2,150       Oasis Petroleum, Inc.(b)      22,553   
  725       Oil States International, Inc.(b)      21,206   
  501       Overseas Shipholding Group, Inc., Class A      4,389   
  3,028       Pacific Ethanol, Inc.(b)      22,559   
  1,199       Panhandle Oil and Gas, Inc., Class A      21,582   
  1,518       Par Pacific Holdings, Inc.(b)      19,339   
  10,123       Parker Drilling Co.(b)      20,246   
  316       PDC Energy, Inc.(b)      19,380   
  300       PHI, Inc.(b)      4,674   
  6,074       Pioneer Energy Services Corp.(b)      21,563   
  2,449       Renewable Energy Group, Inc.(b)      21,429   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   10  

 

 

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Energy (continued)   
  240       REX American Resources Corp.(b)    $ 18,958   
  1,488       RigNet, Inc.(b)      22,320   
  1,935       Ring Energy, Inc.(b)      17,860   
  575       RSP Permian, Inc.(b)      20,757   
  2,521       Sanchez Energy Corp.(b)      16,059   
  1,162       Scorpio Tankers, Inc. (Monaco)      4,450   
  353       SEACOR Holdings, Inc.(b)      17,406   
  10,228       Seadrill Ltd. (United Kingdom)(b)      21,786   
  622       SemGroup Corp., Class A      20,059   
  387       Ship Finance International Ltd. (Norway)      4,896   
  3,080       Synergy Resources Corp.(b)      21,067   
  765       Teekay Corp. (Bermuda)      4,995   
  2,229       Teekay Tankers Ltd., Class A (Bermuda)      4,748   
  2,671       Tesco Corp.      18,296   
  3,615       TETRA Technologies, Inc.(b)      19,702   
  2,248       Tidewater, Inc.      3,889   
  1,238       Unit Corp.(b)      21,207   
  283       US Silica Holdings, Inc.      13,072   
  754       Western Refining, Inc.      21,753   
  2,241       Westmoreland Coal Co.(b)      19,900   
     

 

 

  
        1,278,091   
     

 

 

  
   Financials—9.0%   
  77       1st Source Corp.      2,661   
  116       Access National Corp.      2,734   
  103       ACNB Corp.      2,771   
  173       AG Mortgage Investment Trust, Inc. REIT      2,687   
  103       Allegiance Bancshares, Inc.(b)      2,714   
  255       Altisource Residential Corp. REIT      2,568   
  151       Ambac Financial Group, Inc.(b)      2,786   
  154       American Equity Investment Life Holding Co.      2,761   
  98       American National Bankshares, Inc.      2,651   
  79       Ameris Bancorp      2,868   
  47       AMERISAFE, Inc.      2,613   
  100       Ames National Corp.      2,710   
  535       Anworth Mortgage Asset Corp. REIT      2,627   
  161       Apollo Commercial Real Estate Finance, Inc. REIT      2,724   
  216       Ares Commercial Real Estate Corp. REIT      2,834   
  49       Argo Group International Holdings Ltd.      2,724   
  178       Arlington Asset Investment Corp., Class A      2,542   
  122       ARMOUR Residential REIT, Inc. REIT      2,766   
  83       Arrow Financial Corp.      2,623   
  79       Associated Capital Group, Inc., Class A      2,682   
  184       Astoria Financial Corp.      2,692   
  185       Atlantic Capital Bancshares, Inc.(b)      2,784   
  167       Atlas Financial Holdings, Inc.(b)      2,864   
  210       B. Riley Financial, Inc.      2,688   
  106       Baldwin & Lyons, Inc., Class B      2,608   
  156       Banc of California, Inc.      2,075   
  38       BancFirst Corp.      2,725   
  97       Banco Latinoamericano de Comercio Exterior SA, Class E (Panama)      2,616   
  441       Bancorp, Inc. (The)(b)      2,747   
  118       BancorpSouth, Inc.      2,773   
  353       Bank Mutual Corp.      2,753   
  55       Bank of Marin Bancorp      2,791   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials (continued)   
  72       Bank of the Ozarks, Inc.    $ 2,661   
  215       BankFinancial Corp.      2,703   
  117       Bankwell Financial Group, Inc.      2,885   
  63       Banner Corp.      2,844   
  74       Bar Harbor Bankshares      2,690   
  137       BBX Capital Corp., Class A(b)      2,789   
  301       Bear State Financial, Inc.      2,661   
  187       Beneficial Bancorp, Inc.      2,711   
  101       Berkshire Hills Bancorp, Inc.      2,985   
  306       BGC Partners, Inc., Class A      2,629   
  144       Blue Capital Reinsurance Holdings Ltd. (Bermuda)      2,549   
  185       Blue Hills Bancorp, Inc.      2,877   
  113       BNC Bancorp      2,814   
  120       BofI Holding, Inc.(b)      2,236   
  217       Boston Private Financial Holdings, Inc.      2,854   
  95       Bridge Bancorp, Inc.      2,617   
  227       Brookline Bancorp, Inc.      2,906   
  87       Bryn Mawr Bank Corp.      2,732   
  117       BSB Bancorp, Inc.(b)      2,866   
  64       C&F Financial Corp.      2,675   
  404       Calamos Asset Management, Inc., Class A      2,610   
  188       California First National Bancorp      2,651   
  87       Camden National Corp.      2,873   
  86       Capital Bank Financial Corp., Class A      2,816   
  188       Capital City Bank Group, Inc.      2,827   
  194       Capitol Federal Financial, Inc.      2,846   
  282       Capstead Mortgage Corp. REIT      2,682   
  107       Cardinal Financial Corp.      2,812   
  123       Carolina Financial Corp.      2,804   
  447       Cascade Bancorp(b)      2,731   
  90       Cathay General Bancorp      2,695   
  156       Centerstate Banks, Inc.      2,914   
  111       Central Pacific Financial Corp.      2,845   
  173       Central Valley Community Bancorp      2,477   
  60       Century Bancorp, Inc., Class A      2,721   
  214       Charter Financial Corp.      2,707   
  62       Chemical Financial Corp.      2,663   
  94       Chemung Financial Corp.      2,679   
  125       Citizens & Northern Corp.      2,615   
  263       Citizens, Inc., Class A(b)      2,046   
  55       City Holding Co.      2,875   
  178       Clifton Bancorp, Inc.      2,722   
  132       CNB Financial Corp.      2,581   
  177       CNO Financial Group, Inc.      2,669   
  210       CoBiz Financial, Inc.      2,671   
  133       Codorus Valley Bancorp, Inc.      2,780   
  64       Cohen & Steers, Inc.      2,379   
  150       Colony Capital, Inc., Class A REIT      2,851   
  84       Columbia Banking System, Inc.      2,774   
  58       Community Bank System, Inc.      2,732   
  74       Community Trust Bancorp, Inc.      2,705   
  199       CommunityOne Bancorp(b)      2,806   
  149       ConnectOne Bancorp, Inc.      2,734   
  140       County Bancorp, Inc.      2,758   
  786       Cowen Group, Inc., Class A(b)      2,554   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   11  

 

 

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials (continued)   
  244       Crawford & Co., Class B    $ 2,745   
  115       CU Bancorp(b)      2,702   
  109       Customers Bancorp, Inc.(b)      2,951   
  157       CVB Financial Corp.      2,634   
  312       CYS Investments, Inc. REIT      2,689   
  18       Diamond Hill Investment Group, Inc.      3,276   
  161       Dime Community Bancshares, Inc.      2,608   
  167       Donegal Group, Inc., Class A      2,513   
  371       Dynex Capital, Inc. REIT      2,549   
  56       Eagle Bancorp, Inc.(b)      2,752   
  249       eHealth, Inc.(b)      1,950   
  99       EMC Insurance Group, Inc.      2,411   
  92       Employers Holdings, Inc.      2,884   
  126       Encore Capital Group, Inc.(b)      2,501   
  286       Enova International, Inc.(b)      2,688   
  17       Enstar Group Ltd. (Bermuda)(b)      2,866   
  103       Enterprise Bancorp, Inc.      2,688   
  88       Enterprise Financial Services Corp.      2,913   
  108       Equity Bancshares, Inc., Class A(b)      2,811   
  196       ESSA Bancorp, Inc.      2,642   
  103       Essent Group Ltd.(b)      2,723   
  142       EverBank Financial Corp.      2,742   
  54       Evercore Partners, Inc., Class A      2,902   
  278       EZCORP, Inc., Class A(b)      2,710   
  224       F.N.B. Corp.      2,928   
  90       Farmers Capital Bank Corp.      2,826   
  253       Farmers National Banc Corp.      2,656   
  43       FBL Financial Group, Inc., Class A      2,722   
  208       FBR & Co.      2,891   
  71       FCB Financial Holdings, Inc., Class A(b)      2,648   
  68       Federal Agricultural Mortgage Corp., Class C      2,776   
  150       Federated National Holding Co.      2,686   
  117       Fidelity & Guaranty Life      2,586   
  150       Fidelity Southern Corp.      2,734   
  434       Fifth Street Asset Management, Inc., Class A      2,257   
  94       Financial Engines, Inc.      2,599   
  101       Financial Institutions, Inc.      2,712   
  113       First Bancorp, Inc./ME      2,675   
  553       First BanCorp/Puerto Rico(b)      2,837   
  138       First Bancorp/Southern Pines NC      2,728   
  120       First Busey Corp.      2,773   
  118       First Business Financial Services, Inc.      2,224   
  10       First Citizens BancShares, Inc., Class A      2,910   
  273       First Commonwealth Financial Corp.      2,774   
  110       First Community Bancshares, Inc.      2,491   
  288       First Community Financial Partners, Inc.(b)      2,750   
  156       First Connecticut Bancorp, Inc.      2,769   
  61       First Defiance Financial Corp.      2,408   
  126       First Financial Bancorp      2,709   
  76       First Financial Bankshares, Inc.      2,751   
  68       First Financial Corp.      2,727   
  194       First Financial Northwest, Inc.      3,085   
  111       First Foundation, Inc.(b)      2,746   
  120       First Internet Bancorp      3,150   
  87       First Interstate BancSystem, Inc., Class A      2,775   
  103       First Merchants Corp.      2,899   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials (continued)   
  104       First MID-Illinois Bancshares, Inc.    $ 2,755   
  143       First Midwest Bancorp, Inc.      2,761   
  291       First NBC Bank Holding Co.(b)      1,571   
  207       First Northwest Bancorp(b)      2,834   
  83       First of Long Island Corp. (The)      2,652   
  59       Firstcash, Inc.      2,785   
  99       Flagstar Bancorp, Inc.(b)      2,716   
  117       Flushing Financial Corp.      2,506   
  216       FNFV Group(b)      2,603   
  74       Franklin Financial Network, Inc.(b)      2,412   
  189       Fulton Financial Corp.      2,816   
  441       Gain Capital Holdings, Inc.      2,029   
  94       GAMCO Investors, Inc., Class A      2,671   
  558       Genworth Financial, Inc., Class A(b)      2,310   
  70       German American Bancorp, Inc.      2,725   
  97       Glacier Bancorp, Inc.      2,741   
  94       Global Indemnity PLC, Class A(b)      2,824   
  200       Great Ajax Corp. REIT      2,772   
  66       Great Southern Bancorp, Inc.      2,729   
  83       Great Western Bancorp, Inc.      2,676   
  253       Green Bancorp, Inc.(b)      2,619   
  119       Green Dot Corp., Class A(b)      2,642   
  165       Greene County Bancorp, Inc.      2,838   
  120       Greenhill & Co., Inc.      2,814   
  138       Greenlight Capital Re Ltd., Class A(b)      2,746   
  156       Guaranty Bancorp      2,964   
  274       Hallmark Financial Services, Inc.(b)      2,839   
  87       Hancock Holding Co.      2,919   
  105       Hanmi Financial Corp.      2,625   
  117       Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT      2,675   
  175       HarborOne Bancorp, Inc.(b)      2,987   
  90       HCI Group, Inc.      2,440   
  77       Heartland Financial USA, Inc.      2,884   
  77       Hennessy Advisors, Inc.      2,224   
  247       Heritage Commerce Corp.      2,680   
  152       Heritage Financial Corp.      2,797   
  193       Heritage Insurance Holdings, Inc.      2,275   
  334       Heritage Oaks Bancorp      2,655   
  124       Hilltop Holdings, Inc.(b)      3,063   
  20       Hingham Institution for Savings      2,869   
  100       Home Bancorp, Inc.      2,871   
  131       Home BancShares, Inc.      2,818   
  110       HomeStreet, Inc.(b)      3,030   
  147       HomeTrust Bancshares, Inc.(b)      2,734   
  161       Hope Bancorp, Inc.      2,599   
  75       Horace Mann Educators Corp.      2,696   
  93       Horizon Bancorp      2,697   
  113       Houlihan Lokey, Inc., Class A      2,754   
  41       IBERIABANK Corp.      2,692   
  203       Impac Mortgage Holdings, Inc.(b)      3,218   
  161       Independence Holding Co.      2,826   
  51       Independent Bank Corp./MA      2,813   
  165       Independent Bank Corp./MI      2,772   
  63       Independent Bank Group, Inc.      3,043   
  33       Infinity Property & Casualty Corp.      2,704   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   12  

 

 

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials (continued)   
  92       International Bancshares Corp.    $ 2,838   
  70       INTL FCStone, Inc.(b)      2,513   
  178       Invesco Mortgage Capital, Inc. REIT(c)      2,658   
  164       Investment Technology Group, Inc.      2,511   
  230       Investors Bancorp, Inc.      2,820   
  33       Investors Title Co.      3,168   
  78       James River Group Holdings Ltd.      2,936   
  198       Janus Capital Group, Inc.      2,538   
  177       KCG Holdings, Inc., Class A(b)      2,259   
  202       Kearny Financial Corp.      2,818   
  72       Kemper Corp.      2,704   
  124       Kinsale Capital Group, Inc.      2,982   
  207       Ladder Capital Corp., Class A REIT      2,625   
  1,216       Ladenburg Thalmann Financial Services, Inc.(b)      2,481   
  151       Lake Sunapee Bank Group      2,751   
  199       Lakeland Bancorp, Inc.      2,816   
  77       Lakeland Financial Corp.      2,837   
  153       LCNB Corp.      2,632   
  89       LegacyTexas Financial Group, Inc.      3,045   
  439       LendingClub Corp.(b)      2,164   
  29       LendingTree, Inc.(b)      2,316   
  191       Live Oak Bancshares, Inc.      3,046   
  343       Macatawa Bank Corp.      2,789   
  219       Maiden Holdings Ltd.      2,989   
  110       MainSource Financial Group, Inc.      2,746   
  385       Manning & Napier, Inc.      2,656   
  287       Marlin Business Services Corp.      5,022   
  73       MB Financial, Inc.      2,656   
  364       MBIA, Inc.(b)      2,803   
  304       MBT Financial Corp.      2,675   
  325       Medley Management, Inc., Class A      2,876   
  100       Mercantile Bank Corp.      2,752   
  85       Merchants Bancshares, Inc.      3,655   
  176       Meridian Bancorp, Inc.      2,807   
  45       Meta Financial Group, Inc.      3,296   
  343       MGIC Investment Corp.(b)      2,799   
  100       Middleburg Financial Corp.      3,032   
  110       Midland States Bancorp, Inc.      2,808   
  91       MidWestOne Financial Group, Inc.      2,646   
  104       Moelis & Co., Class A      2,642   
  155       Mtge Investment Corp. REIT      2,643   
  99       Mutualfirst Financial, Inc.      2,708   
  117       National Bank Holdings Corp., Class A      2,848   
  76       National Bankshares, Inc.      2,641   
  103       National Commerce Corp.(b)      2,915   
  124       National General Holdings Corp.      2,548   
  84       National Interstate Corp.      2,722   
  16       National Western Life Group, Inc., Class A      3,446   
  188       Nationstar Mortgage Holdings, Inc.(b)      2,841   
  29       Navigators Group, Inc. (The)      2,703   
  84       NBT Bancorp, Inc.      2,832   
  69       Nelnet, Inc., Class A      2,703   
  190       New Residential Investment Corp. REIT      2,652   
  459       New York Mortgage Trust, Inc. REIT      2,713   
  277       NewStar Financial, Inc.(b)      2,695   
  72       Nicolet Bankshares, Inc.(b)      2,791   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials (continued)   
  360       NMI Holdings, Inc., Class A(b)    $ 2,754   
  172       Northfield Bancorp, Inc.      2,829   
  109       Northrim Bancorp, Inc.      2,676   
  175       Northwest Bancshares, Inc.      2,754   
  142       OceanFirst Financial Corp.      2,937   
  782       Ocwen Financial Corp.(b)      3,339   
  274       OFG Bancorp      2,918   
  139       Old Line Bancshares, Inc.      2,736   
  200       Old National Bancorp      2,940   
  329       Old Second Bancorp, Inc.      2,550   
  201       OM Asset Management PLC      2,828   
  468       On Deck Capital, Inc.(b)      2,289   
  189       OneBeacon Insurance Group Ltd., Class A      2,597   
  195       Oppenheimer Holdings, Inc., Class A      2,730   
  79       Opus Bank      1,584   
  260       Orchid Island Capital, Inc. REIT      2,738   
  174       Oritani Financial Corp.      2,723   
  125       Orrstown Financial Services, Inc.      2,612   
  175       Owens Realty Mortgage, Inc. REIT      3,194   
  164       Pacific Continental Corp.      2,813   
  367       Pacific Mercantile Bancorp(b)      2,055   
  103       Pacific Premier Bancorp, Inc.(b)      2,663   
  71       Paragon Commercial Corp.(b)      2,736   
  29       Park National Corp.      2,811   
  335       Park Sterling Corp.      2,884   
  607       Patriot National, Inc.(b)      3,848   
  124       Peapack-Gladstone Financial Corp.      2,623   
  62       Penns Woods Bancorp, Inc.      2,635   
  158       PennyMac Financial Services, Inc., Class A(b)      2,702   
  178       PennyMac Mortgage Investment Trust REIT      2,709   
  112       Peoples Bancorp, Inc.      2,774   
  68       Peoples Financial Services Corp.      2,709   
  135       People’s Utah Bancorp      2,707   
  384       PHH Corp.(b)      5,576   
  244       PICO Holdings, Inc.(b)      2,952   
  51       Pinnacle Financial Partners, Inc.      2,632   
  59       Piper Jaffray Cos.(b)      3,336   
  105       PJT Partners, Inc., Class A      2,892   
  83       PRA Group, Inc.(b)      2,648   
  78       Preferred Bank      2,958   
  160       Premier Financial Bancorp, Inc.      2,691   
  51       Primerica, Inc.      2,790   
  60       PrivateBancorp, Inc.      2,714   
  51       Prosperity Bancshares, Inc.      2,829   
  172       Provident Bancorp, Inc.(b)      2,761   
  138       Provident Financial Holdings, Inc.      2,633   
  130       Provident Financial Services, Inc.      2,950   
  346       Pzena Investment Management, Inc., Class A      2,519   
  87       QCR Holdings, Inc.      2,827   
  202       Radian Group, Inc.      2,745   
  193       Redwood Trust, Inc. REIT      2,714   
  126       Regional Management Corp.(b)      2,806   
  82       Renasant Corp.      2,767   
  89       Republic Bancorp, Inc., Class A      2,816   
  663       Republic First Bancorp, Inc.(b)      2,619   
  207       Resource Capital Corp. REIT      2,565   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   13  

 

 

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials (continued)   
  40       RLI Corp.    $ 2,230   
  96       S&T Bancorp, Inc.      3,013   
  211       Safeguard Scientifics, Inc.(b)      2,490   
  41       Safety Insurance Group, Inc.      2,776   
  90       Sandy Spring Bancorp, Inc.      2,853   
  170       Seacoast Banking Corp. of Florida(b)      2,960   
  69       Selective Insurance Group, Inc.      2,550   
  53       ServisFirst Bancshares, Inc.      2,869   
  232       Shore Bancshares, Inc.      2,963   
  207       SI Financial Group, Inc.      2,701   
  150       Sierra Bancorp      2,679   
  234       Silvercrest Asset Management Group, Inc., Class A      2,703   
  56       Simmons First National Corp., Class A      2,764   
  37       South State Corp.      2,714   
  101       Southern First Bancshares, Inc.(b)      2,682   
  109       Southern Missouri Bancorp, Inc.      2,680   
  213       Southern National Bancorp of Virginia, Inc.      2,795   
  86       Southside Bancshares, Inc.      2,805   
  144       Southwest Bancorp, Inc.      2,686   
  115       State Auto Financial Corp.      2,633   
  123       State Bank Financial Corp.      2,712   
  243       State National Cos., Inc.      2,486   
  159       Sterling Bancorp      2,862   
  61       Stewart Information Services Corp.      2,742   
  73       Stifel Financial Corp.(b)      2,857   
  84       Stock Yards Bancorp, Inc.      2,864   
  82       Stonegate Bank      2,840   
  80       Suffolk Bancorp      2,880   
  139       Summit Financial Group, Inc.      2,748   
  120       Sun Bancorp, Inc.      2,760   
  96       Territorial Bancorp, Inc.      2,738   
  52       Texas Capital Bancshares, Inc.(b)      3,084   
  230       Third Point Reinsurance Ltd. (Bermuda)(b)      2,702   
  474       Tiptree Financial, Inc., Class A      2,749   
  37       Tompkins Financial Corp.      2,933   
  115       TowneBank      2,852   
  104       TriCo Bancshares      2,737   
  171       TriState Capital Holdings, Inc.(b)      3,018   
  141       Triumph Bancorp, Inc.(b)      2,623   
  164       Trupanion, Inc.(b)      2,655   
  389       TrustCo Bank Corp. NY      2,723   
  100       Trustmark Corp.      2,768   
  47       UMB Financial Corp.      2,916   
  182       Umpqua Holdings Corp.      2,781   
  102       Union Bankshares Corp.      2,849   
  79       Union Bankshares, Inc./Morrisville VT      2,607   
  74       United Bankshares, Inc.      2,790   
  133       United Community Banks, Inc.      2,869   
  376       United Community Financial Corp.      2,764   
  197       United Financial Bancorp, Inc.      2,898   
  64       United Fire Group, Inc.      2,529   
  163       United Insurance Holdings Corp.      2,363   
  112       Universal Insurance Holdings, Inc.      2,386   
  117       Univest Corp. of Pennsylvania      2,779   
  287       Valley National Bancorp      2,830   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials (continued)   
  159       Veritex Holdings, Inc.(b)    $ 2,803   
  177       Virtu Financial, Inc., Class A      2,266   
  28       Virtus Investment Partners, Inc.      3,004   
  157       Waddell & Reed Financial, Inc., Class A      2,468   
  109       Walker & Dunlop, Inc.(b)      2,624   
  784       Walter Investment Management Corp.(b)      3,920   
  103       Washington Federal, Inc.      2,807   
  66       Washington Trust Bancorp, Inc.      3,029   
  110       WashingtonFirst Bankshares, Inc.      2,689   
  161       Waterstone Financial, Inc.      2,729   
  73       Webster Financial Corp.      2,949   
  84       WesBanco, Inc.      2,764   
  138       West Bancorporation, Inc.      2,663   
  55       Westamerica Bancorp.      2,726   
  256       Western Asset Mortgage Capital Corp. REIT      2,593   
  361       Western New England Bancorp, Inc.      2,852   
  52       Westwood Holdings Group, Inc.      2,681   
  92       Wins Finance Holdings, Inc.(b)      2,714   
  50       Wintrust Financial Corp.      2,697   
  282       WisdomTree Investments, Inc.      2,420   
  1,205       WMIH Corp.(b)      2,530   
  57       World Acceptance Corp.(b)      2,709   
  75       WSFS Financial Corp.      2,629   
  1,238       Xenith Bankshares, Inc.(b)      2,897   
  105       Yadkin Financial Corp.      2,913   
     

 

 

  
        1,071,174   
     

 

 

  
   Health Care—10.2%   
  235       AAC Holdings, Inc.(b)      3,852   
  78       Abaxis, Inc.      3,724   
  146       Accelerate Diagnostics, Inc.(b)      3,102   
  98       Acceleron Pharma, Inc.(b)      2,747   
  680       Accuray, Inc.(b)      3,332   
  1,031       AcelRX Pharmaceuticals, Inc.(b)      2,887   
  627       Aceto Corp.      11,493   
  481       Achillion Pharmaceuticals, Inc.(b)      3,021   
  158       Aclaris Therapeutics, Inc.(b)      3,357   
  180       Acorda Therapeutics, Inc.(b)      3,186   
  230       Adamas Pharmaceuticals, Inc.(b)      3,160   
  148       Addus HomeCare Corp.(b)      3,744   
  95       Adeptus Health, Inc., Class A(b)      2,861   
  291       Aduro Biotech, Inc.(b)      3,128   
  367       Advaxis, Inc.(b)      2,969   
  943       Adverum Biotechnologies, Inc.(b)      2,782   
  98       Aerie Pharmaceuticals, Inc.(b)      3,258   
  551       Agenus, Inc.(b)      2,187   
  541       Agile Therapeutics, Inc.(b)      4,112   
  256       Aimmune Therapeutics, Inc.(b)      4,168   
  125       Air Methods Corp.(b)      3,306   
  437       Akebia Therapeutics, Inc.(b)      3,286   
  248       Albany Molecular Research, Inc.(b)      3,866   
  116       Alder Biopharmaceuticals, Inc.(b)      2,813   
  109       Almost Family, Inc.(b)      4,278   
  161       AMAG Pharmaceuticals, Inc.(b)      4,138   
  83       Amedisys, Inc.(b)      3,591   
  212       American Renal Associates Holdings, Inc.(b)      3,744   
  509       Amicus Therapeutics, Inc.(b)      3,512   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   14  

 

 

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Health Care (continued)   
  122       AMN Healthcare Services, Inc.(b)    $ 4,002   
  199       Amphastar Pharmaceuticals, Inc.(b)      3,610   
  5,265       Ampio Pharmaceuticals, Inc.(b)      3,614   
  50       Analogic Corp.      4,092   
  1,265       Anavex Life Sciences Corp.(b)      3,529   
  235       AngioDynamics, Inc.(b)      3,746   
  58       ANI Pharmaceuticals, Inc.(b)      3,463   
  85       Anika Therapeutics, Inc.(b)      3,771   
  1,222       Anthera Pharmaceuticals, Inc.(b)      2,688   
  431       Applied Genetic Technologies Corp.(b)      3,082   
  1,444       Aptevo Therapeutics, Inc.(b)      3,191   
  436       Aratana Therapeutics, Inc.(b)      3,532   
  305       Ardelyx, Inc.(b)      3,751   
  2,194       Arena Pharmaceuticals, Inc.(b)      3,247   
  886       Argos Therapeutics, Inc.(b)      3,721   
  285       ARIAD Pharmaceuticals, Inc.(b)      2,485   
  603       Array BioPharma, Inc.(b)      3,437   
  557       Arrowhead Pharmaceuticals, Inc.(b)      3,231   
  871       Asterias Biotherapeutics, Inc.(b)      2,874   
  191       Atara Biotherapeutics, Inc.(b)      2,445   
  2,026       Athersys, Inc.(b)      3,667   
  247       AtriCure, Inc.(b)      4,505   
  9       Atrion Corp.      3,952   
  248       Audentes Therapeutics, Inc.(b)      3,966   
  97       Avexis, Inc.(b)      4,607   
  831       Avinger, Inc.(b)      2,908   
  450       Axogen, Inc.(b)      3,982   
  272       Axovant Sciences Ltd.(b)      3,348   
  518       Axsome Therapeutics, Inc.(b)      3,471   
  191       Bellicum Pharmaceuticals, Inc.(b)      3,163   
  834       BioCryst Pharmaceuticals, Inc.(b)      3,378   
  2,877       Bio-Path Holdings, Inc.(b)      2,877   
  1,393       BioScrip, Inc.(b)      3,747   
  86       BioSpecifics Technologies Corp.(b)      3,732   
  212       BioTelemetry, Inc.(b)      3,752   
  1,037       BioTime, Inc.(b)      3,339   
  54       Bluebird Bio, Inc.(b)      2,579   
  143       Blueprint Medicines Corp.(b)      4,287   
  87       Cambrex Corp.(b)      3,506   
  56       Cantel Medical Corp.      3,989   
  238       Capital Senior Living Corp.(b)      3,801   
  461       Cara Therapeutics, Inc.(b)      3,222   
  172       Cardiovascular Systems, Inc.(b)      4,030   
  976       Castlight Health, Inc., Class B(b)      4,246   
  151       Catalent, Inc.(b)      3,444   
  939       Celldex Therapeutics, Inc.(b)      2,958   
  277       Cellular Biomedicine Group, Inc.(b)      3,338   
  153       Cempra, Inc.(b)      2,773   
  75       Cepheid, Inc.(b)      3,968   
  621       Cerus Corp.(b)      2,993   
  32       Chemed Corp.      4,525   
  676       ChemoCentryx, Inc.(b)      4,042   
  688       Chimerix, Inc.(b)      2,786   
  330       Cidara Therapeutics, Inc.(b)      3,135   
  217       Civitas Solutions, Inc.(b)      3,711   
  238       Clearside BioMedical, Inc.(b)      5,148   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Health Care (continued)   
  106       Clovis Oncology, Inc.(b)    $ 3,082   
  128       Coherus Biosciences, Inc.(b)      3,501   
  242       Collegium Pharmaceutical, Inc.(b)      3,623   
  380       Community Health Systems, Inc.(b)      2,006   
  152       Computer Programs & Systems, Inc.      3,967   
  389       Concert Pharmaceuticals, Inc.(b)      3,003   
  411       ConforMIS, Inc.(b)      3,136   
  100       CONMED Corp.      4,000   
  606       Corcept Therapeutics, Inc.(b)      4,206   
  3,610       Corindus Vascular Robotics, Inc.(b)      2,780   
  102       CorVel Corp.(b)      3,524   
  241       Corvus Pharmaceuticals, Inc.(b)      3,217   
  120       Cotiviti Holdings, Inc.(b)      3,704   
  335       Cross Country Healthcare, Inc.(b)      3,742   
  222       CryoLife, Inc.      3,774   
  1,588       Curis, Inc.(b)      4,129   
  331       Cutera, Inc.(b)      4,336   
  75       Cynosure, Inc., Class A(b)      3,199   
  446       Cytokinetics, Inc.(b)      4,326   
  249       CytomX Therapeutics, Inc.(b)      2,806   
  7,031       CytRx Corp.(b)      3,248   
  163       Depomed, Inc.(b)      3,645   
  116       Dermira, Inc.(b)      3,637   
  463       Dimension Therapeutics, Inc.(b)      2,292   
  1,076       Diplomat Pharmacy, Inc.(b)      24,931   
  2,857       Durect Corp.(b)      3,200   
  103       Dyax Corp.(b)      114   
  364       Dynavax Technologies Corp.(b)      3,367   
  57       Eagle Pharmaceuticals, Inc.(b)      3,185   
  381       Edge Therapeutics, Inc.(b)      3,989   
  281       Editas Medicine, Inc.(b)      3,973   
  503       Egalet Corp.(b)      2,822   
  287       Eiger BioPharmaceuticals, Inc.(b)      3,286   
  139       Emergent BioSolutions, Inc.(b)      3,714   
  150       Enanta Pharmaceuticals, Inc.(b)      3,528   
  1,203       Endocyte, Inc.(b)      3,308   
  307       Endologix, Inc.(b)      3,211   
  191       Ensign Group, Inc. (The)      3,528   
  189       Entellus Medical, Inc.(b)      3,865   
  786       Enzo Biochem, Inc.(b)      4,795   
  395       Epizyme, Inc.(b)      3,575   
  289       Esperion Therapeutics, Inc.(b)      2,977   
  246       Evolent Health, Inc., Class A(b)      5,178   
  205       Exact Sciences Corp.(b)      3,194   
  144       Exactech, Inc.(b)      3,478   
  256       Exelixis, Inc.(b)      2,711   
  177       FibroGen, Inc.(b)      2,929   
  73       Five Prime Therapeutics, Inc.(b)      3,543   
  345       Flex Pharma, Inc.(b)      1,677   
  212       Flexion Therapeutics, Inc.(b)      4,049   
  464       Fluidigm Corp.(b)      2,148   
  1,332       Fortress Biotech, Inc.(b)      3,170   
  164       Foundation Medicine, Inc.(b)      3,723   
  11,665       Galena Biopharma, Inc.(b)      2,679   
  1,439       Genesis Healthcare, Inc., Class A(b)      3,770   
  332       GenMark Diagnostics, Inc.(b)      3,542   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   15  

 

 

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Health Care (continued)   
  136       Genomic Health, Inc.(b)    $ 4,054   
  1,757       Geron Corp.(b)      3,250   
  101       Glaukos Corp.(b)      3,373   
  180       Global Blood Therapeutics, Inc.(b)      3,141   
  176       Globus Medical, Inc., Class A(b)      3,895   
  555       Glycomimetics, Inc.(b)      3,347   
  108       Haemonetics Corp.(b)      3,608   
  317       Halozyme Therapeutics, Inc.(b)      2,736   
  117       Halyard Health, Inc.(b)      3,785   
  106       HealthEquity, Inc.(b)      3,522   
  97       HealthSouth Corp.      3,895   
  178       HealthStream, Inc.(b)      4,801   
  154       Healthways, Inc.(b)      3,819   
  225       Heron Therapeutics, Inc.(b)      3,341   
  73       Heska Corp.(b)      3,606   
  181       HMS Holdings Corp.(b)      3,814   
  211       Horizon Pharma PLC(b)      3,528   
  31       ICU Medical, Inc.(b)      4,318   
  1,601       Idera Pharmaceuticals, Inc.(b)      2,482   
  619       Ignyta, Inc.(b)      3,095   
  508       Immune Design Corp.(b)      2,718   
  1,439       ImmunoGen, Inc.(b)      2,619   
  1,168       Immunomedics, Inc.(b)      2,686   
  155       Impax Laboratories, Inc.(b)      3,116   
  89       INC Research Holdings, Inc.,
Class A(b)		      4,067   
  2,562       Infinity Pharmaceuticals, Inc.(b)      3,100   
  352       Innoviva, Inc.      3,626   
  67       Inogen, Inc.(b)      3,596   
  422       Inotek Pharmaceuticals Corp.(b)      2,954   
  414       Inovio Pharmaceuticals, Inc.(b)      2,679   
  264       Insmed, Inc.(b)      3,427   
  91       Insulet Corp.(b)      3,378   
  310       Insys Therapeutics, Inc.(b)      3,351   
  185       Integer Holdings Corp.(b)      4,079   
  46       Integra LifeSciences Holdings Corp.(b)      3,657   
  235       Intellia Therapeutics, Inc.(b)      3,238   
  245       Intersect ENT, Inc.(b)      3,577   
  96       Intra-Cellular Therapies, Inc.(b)      1,190   
  362       Invacare Corp.      3,312   
  456       Invitae Corp.(b)      3,502   
  587       InVivo Therapeutics Holdings Corp.(b)      2,553   
  232       iRadimed Corp.(b)      2,192   
  273       Iridex Corp.(b)      3,699   
  247       Ironwood Pharmaceuticals, Inc.,
Class A(b)		      3,154   
  223       K2M Group Holdings, Inc.(b)      3,807   
  544       Kadmon Holdings, Inc.(b)      2,475   
  410       Karyopharm Therapeutics, Inc.(b)      2,968   
  768       Keryx Biopharmaceuticals, Inc.(b)      3,464   
  379       Kindred Healthcare, Inc.      3,733   
  66       Kite Pharma, Inc.(b)      2,923   
  154       La Jolla Pharmaceutical Co.(b)      2,695   
  90       Landauer, Inc.      3,915   
  138       Lannett Co., Inc.(b)      3,022   
  195       LeMaitre Vascular, Inc.      4,083   
  216       Lexicon Pharmaceuticals, Inc.(b)      3,203   
  105       LHC Group, Inc.(b)      3,598   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Health Care (continued)   
  40       Ligand Pharmaceuticals, Inc.(b)    $ 3,829   
  498       Lion Biotechnologies, Inc.(b)      3,113   
  886       Lipocine, Inc.(b)      2,844   
  151       Loxo Oncology, Inc.(b)      3,150   
  175       Luminex Corp.(b)      3,645   
  124       MacroGenics, Inc.(b)      2,938   
  73       Magellan Health, Inc.(b)      3,756   
  6,453       MannKind Corp.(b)      2,692   
  67       Masimo Corp.(b)      3,685   
  705       Medgenics, Inc. (Israel)(b)      3,398   
  100       Medicines Co. (The)(b)      3,295   
  525       MediciNova, Inc.(b)      3,565   
  71       Medidata Solutions, Inc.(b)      3,407   
  135       Medpace Holdings, Inc.(b)      3,918   
  202       Meridian Bioscience, Inc.      3,323   
  168       Merit Medical Systems, Inc.(b)      3,688   
  646       Merrimack Pharmaceuticals, Inc.(b)      3,372   
  454       MiMedx Group, Inc.(b)      4,045   
  283       Minerva Neurosciences, Inc.(b)      3,155   
  586       Mirati Therapeutics, Inc.(b)      2,959   
  68       Molina Healthcare, Inc.(b)      3,700   
  335       Momenta Pharmaceuticals, Inc.(b)      3,735   
  263       MyoKardia, Inc.(b)      3,537   
  180       Myriad Genetics, Inc.(b)      3,548   
  203       NanoString Technologies, Inc.(b)      3,948   
  311       Nanthealth, Inc.(b)      4,083   
  506       NantKwest, Inc.(b)      3,031   
  370       Natera, Inc.(b)      3,138   
  61       National Healthcare Corp.      3,947   
  253       National Research Corp., Class A      3,884   
  101       Natus Medical, Inc.(b)      3,974   
  229       Nektar Therapeutics, Class A(b)      2,840   
  72       Neogen Corp.(b)      3,794   
  485       NeoGenomics, Inc.(b)      3,909   
  587       Neos Therapeutics, Inc.(b)      3,463   
  38       Nevro Corp.(b)      3,493   
  298       NewLink Genetics Corp.(b)      3,621   
  1,168       Nobilis Health Corp.(b)      3,913   
  1,742       Novavax, Inc.(b)      2,648   
  445       Novocure Ltd.(b)      2,692   
  59       NuVasive, Inc.(b)      3,524   
  163       NxStage Medical, Inc.(b)      3,707   
  575       Ocular Therapeutix, Inc.(b)      3,255   
  345       Omeros Corp.(b)      2,829   
  105       Omnicell, Inc.(b)      3,426   
  327       OncoMed Pharmaceuticals, Inc.(b)      2,966   
  68       Ophthotech Corp.(b)      2,436   
  485       OraSure Technologies, Inc.(b)      3,642   
  1,021       Organovo Holdings, Inc.(b)      2,542   
  94       Orthofix International NV(b)      3,445   
  841       Osiris Therapeutics, Inc.(b)      3,372   
  229       Otonomy, Inc.(b)      3,458   
  498       OvaScience, Inc.(b)      2,510   
  114       Owens & Minor, Inc.      3,699   
  325       Oxford Immunotec Global PLC(b)      4,180   
  438       Pacific Biosciences of California,
Inc.(b)		      3,723   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   16  

 

 

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Health Care (continued)   
  112       Pacira Pharmaceuticals, Inc.(b)    $ 3,562   
  296       Paratek Pharmaceuticals, Inc.(b)      3,167   
  56       PAREXEL International Corp.(b)      3,263   
  1,203       PDL BioPharma, Inc.      3,874   
  52       Penumbra, Inc.(b)      3,429   
  449       Pfenex, Inc.(b)      3,596   
  1,393       Pharmathene, Inc.(b)      3,831   
  144       PharMerica Corp.(b)      3,427   
  148       Phibro Animal Health Corp., Class A      3,841   
  171       Portola Pharmaceuticals, Inc.(b)      3,109   
  71       PRA Health Sciences, Inc.(b)      3,779   
  82       Prestige Brands Holdings, Inc.(b)      3,713   
  655       Progenics Pharmaceuticals, Inc.(b)      3,295   
  189       Protagonist Therapeutics, Inc.(b)      3,553   
  261       Proteostasis Therapeutics, Inc.(b)      1,858   
  63       Prothena Corp. PLC (Ireland)(b)      3,013   
  84       Providence Service Corp. (The)(b)      3,399   
  334       PTC Therapeutics, Inc.(b)      2,074   
  56       Puma Biotechnology, Inc.(b)      2,145   
  352       Quality Systems, Inc.      4,537   
  180       Quidel Corp.(b)      3,474   
  647       Quorum Health Corp.(b)      2,614   
  70       Radius Health, Inc.(b)      3,004   
  552       RadNet, Inc.(b)      3,836   
  169       Reata Pharmaceuticals, Inc., Class A(b)      3,826   
  272       REGENXBIO, Inc.(b)      4,284   
  1,131       Regulus Therapeutics, Inc.(b)      3,110   
  125       Repligen Corp.(b)      3,571   
  179       Retrophin, Inc.(b)      3,374   
  236       Revance Therapeutics, Inc.(b)      3,151   
  1,158       Rigel Pharmaceuticals, Inc.(b)      3,011   
  598       Rockwell Medical, Inc.(b)      3,474   
  1,298       RTI Surgical, Inc.(b)      3,310   
  85       Sage Therapeutics, Inc.(b)      3,701   
  805       Sangamo BioSciences, Inc.(b)      2,858   
  67       Sarepta Therapeutics, Inc.(b)      2,629   
  385       SciClone Pharmaceuticals, Inc.(b)      3,446   
  1,192       Second Sight Medical Products, Inc.(b)      3,111   
  302       Select Medical Holdings Corp.(b)      3,926   
  256       Selecta Biosciences, Inc.(b)      4,516   
  1,003       Senseonics Holdings, Inc.(b)      2,347   
  299       Seres Therapeutics, Inc.(b)      3,226   
  518       Sorrento Therapeutics, Inc.(b)      2,979   
  64       Spark Therapeutics, Inc.(b)      3,009   
  164       Spectranetics Corp. (The)(b)      3,559   
  838       Spectrum Pharmaceuticals, Inc.(b)      2,967   
  424       STAAR Surgical Co.(b)      3,583   
  353       Stemline Therapeutics, Inc.(b)      4,024   
  306       Sucampo Pharmaceuticals, Inc.,
Class A(b)		      3,488   
  149       Supernus Pharmaceuticals, Inc.(b)      2,950   
  206       Surgery Partners, Inc.(b)      3,317   
  87       Surgical Care Affiliates, Inc.(b)      3,723   
  135       SurModics, Inc.(b)      3,362   
  307       Syndax Pharmaceuticals, Inc.(b)      3,626   
  687       Synergy Pharmaceuticals, Inc.(b)      3,153   
  2,158       Synthetic Biologics, Inc.(b)      3,021   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Health Care (continued)   
  299       Syros Pharmaceuticals, Inc.(b)    $ 4,063   
  537       T2 Biosystems, Inc.(b)      3,394   
  210       Tactile Systems Technology, Inc.(b)      3,731   
  454       Tandem Diabetes Care, Inc.(b)      2,747   
  125       Team Health Holdings, Inc.(b)      5,356   
  218       Teladoc, Inc.(b)      3,543   
  521       Teligent, Inc.(b)      3,392   
  37       TESARO, Inc.(b)      4,473   
  1,003       Tetraphase Pharmaceuticals, Inc.(b)      3,511   
  498       TG Therapeutics, Inc.(b)      2,664   
  591       TherapeuticsMD, Inc.(b)      3,392   
  107       Theravance Biopharma, Inc. (Cayman Islands)(b)      2,689   
  680       Titan Pharmaceuticals, Inc.(b)      3,094   
  99       Tobira Therapeutics, Inc.(b)      4,167   
  2,451       TransEnterix, Inc.(b)      3,677   
  563       Trevena, Inc.(b)      2,747   
  182       Triple-S Management Corp.,
Class B(b)		      3,764   
  886       Trovagene, Inc.(b)      3,057   
  65       U.S. Physical Therapy, Inc.      3,699   
  55       Ultragenyx Pharmaceutical, Inc.(b)      3,244   
  522       Universal American Corp.(b)      3,920   
  67       Utah Medical Products, Inc.      4,164   
  236       Vanda Pharmaceuticals, Inc.(b)      3,505   
  81       Vascular Solutions, Inc.(b)      3,694   
  545       Veracyte, Inc.(b)      3,957   
  298       Versartis, Inc.(b)      3,293   
  814       Viewray, Inc.(b)      2,182   
  642       Vital Therapies, Inc.(b)      3,435   
  325       Vocera Communications, Inc.(b)      5,980   
  286       Voyager Therapeutics, Inc.(b)      3,432   
  548       vTv Therapeutics, Inc., Class A(b)      2,954   
  124       WaVe Life Sciences Ltd.(b)      3,949   
  161       Wright Medical Group NV(b)      3,528   
  295       XBiotech, Inc.(b)      3,909   
  152       Xencor, Inc.(b)      3,236   
  1,218       Zafgen, Inc.(b)      3,666   
  100       Zeltiq Aesthetics, Inc.(b)      3,310   
  725       ZIOPHARM Oncology, Inc.(b)      4,118   
  377       Zogenix, Inc.(b)      3,073   
     

 

 

  
        1,218,921   
     

 

 

  
   Industrials—13.5%   
  424       AAON, Inc.      12,699   
  186       AAR Corp.      5,984   
  139       ABM Industries, Inc.      5,432   
  870       Acacia Research Corp.      5,089   
  576       ACCO Brands Corp.(b)      6,394   
  246       Actuant Corp., Class A      5,486   
  492       Advanced Drainage Systems, Inc.      9,397   
  127       Advisory Board Co. (The)(b)      5,055   
  293       Aegion Corp.(b)      5,423   
  307       Aerojet Rocketdyne Holdings, Inc.(b)      5,403   
  223       Aerovironment, Inc.(b)      5,350   
  391       Air Transport Services Group, Inc.(b)      5,173   
  278       Aircastle Ltd.      5,713   
  85       Alamo Group, Inc.      5,518   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   17  

 

 

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Industrials (continued)   
  130       Albany International Corp., Class A    $ 5,297   
  41       Allegiant Travel Co.      5,654   
  293       Allied Motion Technologies, Inc.      5,796   
  193       Altra Industrial Motion Corp.      5,693   
  139       American Railcar Industries, Inc.      5,112   
  779       American Superconductor Corp.(b)      4,993   
  58       American Woodmark Corp.(b)      4,333   
  274       Apogee Enterprises, Inc.      11,165   
  119       Applied Industrial Technologies, Inc.      6,045   
  635       Aqua Metals, Inc.(b)      5,683   
  1,512       ARC Document Solutions, Inc.(b)      5,186   
  292       ArcBest Corp.      5,811   
  94       Argan, Inc.      5,344   
  640       Armstrong Flooring, Inc.(b)      10,362   
  94       Astec Industries, Inc.      5,204   
  124       Astronics Corp.(b)      4,590   
  302       Atkore International Group, Inc.(b)      5,678   
  136       Atlas Air Worldwide Holdings, Inc.(b)      5,692   
  84       AZZ, Inc.      4,473   
  336       Babcock & Wilcox Enterprises, Inc.(b)      5,289   
  137       Barnes Group, Inc.      5,458   
  113       Barrett Business Services, Inc.      5,066   
  281       Beacon Roofing Supply, Inc.(b)      11,813   
  376       Blue Bird Corp.(b)      5,546   
  677       BMC Stock Holdings, Inc.(b)      11,204   
  157       Brady Corp., Class A      5,197   
  296       Briggs & Stratton Corp.      5,512   
  151       Brink’s Co. (The)      5,972   
  1,024       Builders FirstSource, Inc.(b)      9,902   
  313       Caesarstone Sdot-Yam Ltd. (Israel)(b)      11,065   
  690       CAI International, Inc.(b)      5,251   
  531       Casella Waste Systems, Inc.,
Class A(b)		      5,947   
  492       CBIZ, Inc.(b)      5,437   
  102       CEB, Inc.      4,962   
  499       CECO Environmental Corp.      4,940   
  647       Celadon Group, Inc.      4,205   
  182       Chart Industries, Inc.(b)      5,049   
  96       CIRCOR International, Inc.      5,163   
  85       CLARCOR, Inc.      5,288   
  938       Cogint, Inc.(b)      3,564   
  309       Columbus McKinnon Corp.      6,022   
  413       Comfort Systems USA, Inc.      11,915   
  568       Continental Building Products, Inc.(b)      11,616   
  598       Costamare, Inc. (Greece)      3,887   
  292       Covenant Transportation Group, Inc., Class A(b)      4,669   
  200       CRA International, Inc.(b)      6,228   
  169       Csw Industrials, Inc.(b)      5,231   
  117       Cubic Corp.      4,996   
  61       Curtiss-Wright Corp.      5,467   
  82       Deluxe Corp.      5,018   
  204       DigitalGlobe, Inc.(b)      5,120   
  175       Douglas Dynamics, Inc.      5,617   
  247       Ducommun, Inc.(b)      4,703   
  215       DXP Enterprises, Inc.(b)      4,685   
  73       Dycom Industries, Inc.(b)      5,616   
  1,178       Dynamic Materials Corp.      12,781   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Industrials (continued)   
  238       Echo Global Logistics, Inc.(b)    $ 5,046   
  93       EMCOR Group, Inc.      5,623   
  153       Encore Wire Corp.      5,225   
  297       Energous Corp.(b)      4,048   
  334       Energy Recovery, Inc.(b)      4,078   
  81       EnerSys      5,276   
  171       Engility Holdings, Inc.(b)      4,913   
  319       Ennis, Inc.      4,673   
  98       EnPro Industries, Inc.      5,304   
  119       ESCO Technologies, Inc.      5,301   
  268       Essendant, Inc.      4,114   
  72       Esterline Technologies Corp.(b)      5,288   
  360       ExOne Co. (The)(b)      4,295   
  108       Exponent, Inc.      6,183   
  415       Federal Signal Corp.      5,096   
  129       Forward Air Corp.      5,330   
  278       Franklin Covey Co.(b)      5,087   
  138       Franklin Electric Co., Inc.      5,030   
  402       FreightCar America, Inc.      5,250   
  124       FTI Consulting, Inc.(b)      4,831   
  3,739       FuelCell Energy, Inc.(b)      12,526   
  57       G&K Services, Inc., Class A      5,398   
  129       GATX Corp.      5,646   
  479       Gencor Industries, Inc.(b)      5,796   
  157       Generac Holdings, Inc.(b)      5,980   
  384       General Cable Corp.      5,376   
  318       Gibraltar Industries, Inc.(b)      12,370   
  426       Global Brass & Copper Holdings, Inc.      12,226   
  539       GMS, Inc.(b)      11,200   
  212       Gorman-Rupp Co. (The)      5,092   
  224       GP Strategies Corp.(b)      5,790   
  288       Graham Corp.      5,141   
  112       Granite Construction, Inc.      5,506   
  1,521       Great Lakes Dredge & Dock Corp.(b)      5,400   
  160       Greenbrier Cos., Inc. (The)      5,040   
  712       Griffon Corp.      11,890   
  346       H&E Equipment Services, Inc.      4,827   
  515       Hardinge, Inc.      4,995   
  594       Harsco Corp.      5,791   
  113       Hawaiian Holdings, Inc.(b)      5,088   
  1,088       HC2 Holdings, Inc.(b)      4,330   
  141       Healthcare Services Group, Inc.      5,213   
  293       Heartland Express, Inc.      5,391   
  303       Heidrick & Struggles International, Inc.      5,605   
  415       Heritage-Crystal Clean, Inc.(b)      5,436   
  188       Herman Miller, Inc.      5,226   
  1,241       Hill International, Inc.(b)      4,778   
  175       Hillenbrand, Inc.      5,311   
  137       HNI Corp.      5,570   
  137       Hub Group, Inc., Class A(b)      4,994   
  196       Hurco Cos., Inc.      5,135   
  93       Huron Consulting Group, Inc.(b)      5,213   
  95       Hyster-Yale Materials Handling, Inc., Class A      5,530   
  124       ICF International, Inc.(b)      5,754   
  325       IES Holdings, Inc.(b)      4,859   
  605       InnerWorkings, Inc.(b)      5,330   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   18  

 

 

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Industrials (continued)   
  74       Insperity, Inc.    $ 5,565   
  337       Insteel Industries, Inc.      9,065   
  728       Interface, Inc.      11,539   
  80       John Bean Technologies Corp.      6,388   
  198       Joy Global, Inc.      5,510   
  105       Kadant, Inc.      5,423   
  125       Kaman Corp.      5,457   
  287       Kelly Services, Inc., Class A      5,376   
  196       Kennametal, Inc.      5,549   
  509       KEYW Holding Corp. (The)(b)      5,339   
  281       Kforce, Inc.      4,875   
  420       Kimball International, Inc., Class B      5,250   
  161       KLX, Inc.(b)      5,542   
  193       Knight Transportation, Inc.      5,645   
  241       Knoll, Inc.      5,215   
  262       Korn/Ferry International      5,342   
  821       Kratos Defense & Security Solutions, Inc.(b)      4,614   
  686       Lawson Products, Inc.(b)      12,931   
  673       Layne Christensen Co.(b)      5,768   
  76       Lindsay Corp.      5,951   
  1,107       LSI Industries, Inc.      9,520   
  104       Lydall, Inc.(b)      4,862   
  1,233       Manitowoc Co., Inc. (The)      4,981   
  264       Marten Transport Ltd.      5,412   
  190       Masonite International Corp.(b)      10,811   
  187       MasTec, Inc.(b)      5,339   
  138       Matson, Inc.      5,512   
  79       Matthews International Corp., Class A      4,732   
  175       McGrath RentCorp      5,267   
  241       Mercury Systems, Inc.(b)      6,695   
  445       Meritor, Inc.(b)      4,575   
  352       Milacron Holdings Corp.(b)      5,125   
  244       Miller Industries, Inc.      5,356   
  235       Mistras Group, Inc.(b)      4,921   
  186       Mobile Mini, Inc.      4,715   
  95       Moog, Inc., Class A(b)      5,517   
  835       MRC Global, Inc.(b)      12,308   
  97       MSA Safety, Inc.      5,655   
  375       Mueller Industries, Inc.      11,359   
  957       Mueller Water Products, Inc., Class A      11,790   
  81       Multi-Color Corp.      5,259   
  185       MYR Group, Inc.(b)      5,520   
  53       National Presto Industries, Inc.      4,624   
  274       Navigant Consulting, Inc.(b)      6,412   
  256       Navistar International Corp.(b)      5,709   
  833       NCI Building Systems, Inc.(b)      11,995   
  603       Neff Corp., Class A(b)      5,457   
  679       NN, Inc.      11,984   
  1,014       NOW, Inc.(b)      21,862   
  171       NV5 Global, Inc.(b)      4,891   
  314       Omega Flex, Inc.      11,941   
  148       On Assignment, Inc.(b)      5,093   
  834       Orion Group Holdings, Inc.(b)      6,739   
  286       P.A.M. Transportation Services,
Inc.(b)		      5,634   
  149       Park-Ohio Holdings Corp.      4,761   
  188       Patrick Industries, Inc.(b)      10,782   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Industrials (continued)   
  1,086       PGT, Inc.(b)    $ 10,643   
  3,290       Plug Power, Inc.(b)      5,034   
  885       Ply Gem Holdings, Inc.(b)      12,124   
  141       Powell Industries, Inc.      4,990   
  527       Power Solutions International, Inc.(b)      5,033   
  127       Preformed Line Products Co.      5,464   
  271       Primoris Services Corp.      5,428   
  94       Proto Labs, Inc.(b)      4,202   
  209       Quad Graphics, Inc., Class A      4,966   
  690       Quanex Building Products Corp.      11,247   
  2,030       Radiant Logistics, Inc.(b)      5,075   
  243       Raven Industries, Inc.      5,212   
  159       RBC Bearings, Inc.(b)      11,345   
  374       Resources Connection, Inc.      5,554   
  578       Rexnord Corp.(b)      11,496   
  723       Roadrunner Transportation Systems, Inc.(b)      5,495   
  535       RPX Corp.(b)      5,222   
  236       Rush Enterprises, Inc., Class A(b)      6,195   
  188       Saia, Inc.(b)      6,702   
  1,521       Scorpio Bulkers, Inc.(b)      5,932   
  267       Simpson Manufacturing Co., Inc.      11,428   
  131       Siteone Landscape Supply, Inc.(b)      4,085   
  207       SkyWest, Inc.      6,241   
  213       SP Plus Corp.(b)      5,368   
  216       Sparton Corp.(b)      5,169   
  280       SPX Corp.(b)      5,323   
  188       SPX FLOW, Inc.(b)      4,717   
  61       Standex International Corp.      4,660   
  388       Steelcase, Inc., Class A      5,180   
  176       Sun Hydraulics Corp.      5,180   
  3,204       Sunrun, Inc.(b)      16,693   
  294       Supreme Industries, Inc., Class A      3,584   
  257       Swift Transportation Co., Class A(b)      5,752   
  192       TASER International, Inc.(b)      4,297   
  178       Team, Inc.(b)      5,473   
  51       Teledyne Technologies, Inc.(b)      5,492   
  85       Tennant Co.      5,351   
  154       Tetra Tech, Inc.      5,921   
  733       Textainer Group Holdings Ltd.      5,571   
  290       Thermon Group Holdings, Inc.(b)      5,316   
  616       Titan International, Inc.      6,277   
  519       Titan Machinery, Inc.(b)      4,822   
  616       TRC Cos., Inc.(b)      5,020   
  203       Trex Co., Inc.(b)      10,923   
  289       TriMas Corp.(b)      5,188   
  260       TriNet Group, Inc.(b)      4,880   
  414       Triton International Ltd. (Bermuda)      4,997   
  200       Triumph Group, Inc.      4,740   
  242       TrueBlue, Inc.(b)      4,235   
  260       Tutor Perini Corp.(b)      4,953   
  42       UniFirst Corp.      5,145   
  576       Univar, Inc.(b)      12,816   
  119       Universal Forest Products, Inc.      10,233   
  418       Universal Logistics Holdings, Inc.      5,204   
  126       US Ecology, Inc.      5,324   
  543       USA Truck, Inc.(b)      4,469   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   19  

 

 

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Industrials (continued)   
  195       Vectrus, Inc.(b)    $ 3,270   
  247       Veritiv Corp.(b)      13,326   
  127       Viad Corp.      5,271   
  483       Vicor Corp.(b)      6,158   
  102       Virgin America, Inc.(b)      5,544   
  161       VSE Corp.      4,643   
  383       Wabash National Corp.(b)      4,309   
  88       WageWorks, Inc.(b)      5,188   
  86       Watts Water Technologies, Inc., Class A      5,160   
  240       Werner Enterprises, Inc.      5,772   
  404       Wesco Aircraft Holdings, Inc.(b)      5,191   
  1,092       West Corp.      21,534   
  240       Willis Lease Finance Corp.(b)      6,386   
  89       Woodward, Inc.      5,249   
  152       XPO Logistics, Inc.(b)      5,005   
  451       YRC Worldwide, Inc.(b)      4,005   
     

 

 

  
        1,613,228   
     

 

 

  
   Information Technology—13.5%   
  124       2U, Inc.(b)      4,323   
  324       3D Systems Corp.(b)      4,494   
  1,598       8x8, Inc.(b)      22,772   
  524       A10 Networks, Inc.(b)      4,014   
  53       Acacia Communications, Inc.(b)      3,694   
  292       ACI Worldwide, Inc.(b)      5,291   
  454       Actua Corp.(b)      5,289   
  208       Acxiom Corp.(b)      4,900   
  294       ADTRAN, Inc.      5,336   
  116       Advanced Energy Industries, Inc.(b)      5,533   
  849       Advanced Micro Devices, Inc.(b)      6,138   
  942       Aerohive Networks, Inc.(b)      4,983   
  511       Agilysys, Inc.(b)      4,931   
  198       Alarm.com Holdings, Inc.(b)      5,778   
  1,162       Alj Regional Holdings, Inc.(b)      4,636   
  263       Alpha & Omega Semiconductor Ltd.(b)      5,557   
  81       Ambarella, Inc.(b)      4,971   
  582       Amber Road, Inc.(b)      5,546   
  509       American Software, Inc., Class A      5,309   
  590       Amkor Technology, Inc.(b)      5,469   
  460       Angie’s List, Inc.(b)      3,542   
  90       Anixter International, Inc.(b)      5,917   
  318       Apigee Corp.(b)      5,517   
  286       AppFolio, Inc., Class A(b)      5,448   
  796       Applied Micro Circuits Corp.(b)      5,890   
  260       Applied Optoelectronics, Inc.(b)      5,000   
  120       Aspen Technology, Inc.(b)      5,909   
  322       Autobytel, Inc.(b)      5,265   
  705       Avid Technology, Inc.(b)      4,632   
  408       AVX Corp.      5,720   
  422       Axcelis Technologies, Inc.(b)      5,760   
  163       Badger Meter, Inc.      5,240   
  673       Bankrate, Inc.(b)      5,249   
  220       Barracuda Networks, Inc.(b)      5,130   
  977       Bazaarvoice, Inc.(b)      4,787   
  240       Bel Fuse, Inc., Class B      5,724   
  178       Belden, Inc.      11,536   
  222       Benchmark Electronics, Inc.(b)      5,583   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Information Technology (continued)   
  139       Benefitfocus, Inc.(b)    $ 4,517   
  403       Black Box Corp.      4,635   
  85       Blackbaud, Inc.      5,219   
  89       Blackhawk Network Holdings, Inc.(b)      3,066   
  504       Blucora, Inc.(b)      6,703   
  238       Bottomline Technologies (de), Inc.(b)      5,400   
  374       Box, Inc., Class A(b)      5,393   
  428       Brightcove, Inc.(b)      4,772   
  119       BroadSoft, Inc.(b)      4,944   
  413       Brooks Automation, Inc.      5,381   
  226       Cabot Microelectronics Corp.      12,489   
  55       CACI International, Inc., Class A(b)      5,382   
  338       CalAmp Corp.(b)      4,367   
  759       Calix, Inc.(b)      4,744   
  305       Callidus Software, Inc.(b)      5,566   
  360       Carbonite, Inc.(b)      6,138   
  63       Cardtronics PLC, Class A(b)      3,150   
  458       Care.com, Inc.(b)      4,159   
  50       Cass Information Systems, Inc.      2,693   
  97       Cavium, Inc.(b)      5,476   
  157       CEVA, Inc.(b)      4,718   
  445       ChannelAdvisor Corp.(b)      4,895   
  245       Ciena Corp.(b)      4,748   
  46       Cimpress NV (Netherlands)(b)      3,830   
  107       Cirrus Logic, Inc.(b)      5,776   
  299       Clearfield, Inc.(b)      5,008   
  50       Coherent, Inc.(b)      5,206   
  476       Cohu, Inc.      5,326   
  104       CommVault Systems, Inc.(b)      5,564   
  180       comScore, Inc.(b)      5,182   
  426       Comtech Telecommunications Corp.      4,430   
  452       Control4 Corp.(b)      5,103   
  184       Convergys Corp.      5,373   
  118       Cornerstone OnDemand, Inc.(b)      4,873   
  451       CPI Card Group, Inc.      2,481   
  232       Cray, Inc.(b)      4,826   
  134       CSG Systems International, Inc.      5,096   
  304       CTS Corp.      5,533   
  177       Cvent, Inc.(b)      5,526   
  583       Daktronics, Inc.      4,868   
  542       Datalink Corp.(b)      5,138   
  702       DHI Group, Inc.(b)      4,001   
  220       Diebold, Inc.      4,796   
  483       Digi International, Inc.(b)      4,419   
  151       Digimarc Corp.(b)      4,772   
  267       Diodes, Inc.(b)      5,530   
  468       DSP Group, Inc.(b)      5,101   
  130       DTS, Inc.      5,506   
  901       EarthLink Holdings Corp.      5,154   
  326       Eastman Kodak Co.(b)      4,857   
  98       Ebix, Inc.      5,488   
  982       Electro Scientific Industries, Inc.(b)      5,087   
  111       Electronics for Imaging, Inc.(b)      4,721   
  55       Ellie Mae, Inc.(b)      5,824   
  1,033       EMCORE Corp.      6,766   
  617       Endurance International Group Holdings, Inc.(b)      4,535   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   20  

 

 

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Information Technology (continued)   
  3,642       EnerNOC, Inc.(b)    $ 18,938   
  326       Entegris, Inc.(b)      5,183   
  147       Envestnet, Inc.(b)      5,196   
  82       EPAM Systems, Inc.(b)      5,278   
  61       ePlus, Inc.(b)      5,585   
  164       EVERTEC, Inc.      2,485   
  720       Everyday Health, Inc.(b)      7,560   
  344       Exa Corp.(b)      4,816   
  600       Exar Corp.(b)      5,412   
  110       ExlService Holdings, Inc.(b)      4,843   
  1,236       Extreme Networks, Inc.(b)      5,204   
  126       Fabrinet (Thailand)(b)      4,783   
  26       Fair Isaac Corp.      3,138   
  151       FARO Technologies, Inc.(b)      5,066   
  184       Finisar Corp.(b)      5,038   
  367       Five9, Inc.(b)      5,255   
  92       Fleetmatics Group PLC(b)      5,511   
  522       FormFactor, Inc.(b)      4,685   
  137       Forrester Research, Inc.      5,103   
  100       Gigamon, Inc.(b)      5,530   
  2,392       GigPeak, Inc.(b)      5,669   
  648       Global Sources Ltd. (Hong Kong)(b)      5,249   
  137       Globant SA(b)      5,960   
  2,500       Glu Mobile, Inc.(b)      4,950   
  1,963       Gogo, Inc.(b)      19,846   
  127       GrubHub, Inc.(b)      4,840   
  234       GTT Communications, Inc.(b)      5,265   
  928       Guidance Software, Inc.(b)      4,788   
  334       Hackett Group, Inc. (The)      5,384   
  1,191       Harmonic, Inc.(b)      6,074   
  639       Hortonworks, Inc.(b)      4,882   
  100       HubSpot, Inc.(b)      5,245   
  237       II-VI, Inc.(b)      6,589   
  676       Immersion Corp.(b)      5,516   
  105       Imperva, Inc.(b)      3,875   
  156       Impinj, Inc.(b)      3,852   
  1,735       inContact, Inc.(b)      24,134   
  619       Infinera Corp.(b)      4,828   
  210       Infoblox, Inc.(b)      5,565   
  1,307       Information Services Group, Inc.(b)      5,163   
  130       Inphi Corp.(b)      4,823   
  173       Insight Enterprises, Inc.(b)      4,981   
  185       Instructure, Inc.(b)      4,708   
  247       Integrated Device Technology, Inc.(b)      5,115   
  92       Interactive Intelligence Group, Inc.(b)      5,561   
  70       InterDigital, Inc.      4,946   
  254       Intersil Corp., Class A      5,608   
  563       Intralinks Holdings, Inc.(b)      5,163   
  765       InvenSense, Inc.(b)      5,852   
  99       Itron, Inc.(b)      5,336   
  459       Ixia(b)      5,485   
  482       IXYS Corp.      5,109   
  363       j2 Global, Inc.      25,827   
  1,306       Jive Software, Inc.(b)      5,159   
  417       Kimball Electronics, Inc.(b)      5,796   
  403       Knowles Corp.(b)      6,021   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Information Technology (continued)   
  2,546       Kopin Corp.(b)    $ 5,321   
  619       KVH Industries, Inc.(b)      4,921   
  849       Lattice Semiconductor Corp.(b)      5,153   
  3,016       Limelight Networks, Inc.(b)      5,368   
  1,130       Lionbridge Technologies, Inc.(b)      5,458   
  520       Liquidity Services, Inc.(b)      4,602   
  43       Littelfuse, Inc.      5,999   
  662       LivePerson, Inc.(b)      5,627   
  61       LogMeIn, Inc.      5,795   
  133       Lumentum Holdings, Inc.(b)      4,469   
  137       MACOM Technology Solutions Holdings, Inc.(b)      5,036   
  139       ManTech International Corp., Class A      5,397   
  1,672       Marchex, Inc., Class B(b)      4,213   
  97       MAXIMUS, Inc.      5,050   
  282       MaxLinear, Inc., Class A(b)      5,276   
  1,054       Maxwell Technologies, Inc.(b)      5,101   
  923       MeetMe, Inc.(b)      4,513   
  227       Mentor Graphics Corp.      6,560   
  49       Mesa Laboratories, Inc.      6,186   
  158       Methode Electronics, Inc.      4,930   
  136       Microsemi Corp.(b)      5,730   
  33       MicroStrategy, Inc., Class A(b)      6,429   
  297       MINDBODY, Inc., Class A(b)      6,148   
  673       Mitek Systems, Inc.(b)      4,543   
  112       MKS Instruments, Inc.      5,650   
  2,033       Mobileiron, Inc.(b)      7,420   
  513       Model N, Inc.(b)      5,284   
  386       MoneyGram International, Inc.(b)      2,706   
  71       Monolithic Power Systems, Inc.      5,596   
  250       Monotype Imaging Holdings, Inc.      4,775   
  1,538       Monster Worldwide, Inc.(b)      5,245   
  120       MTS Systems Corp.      5,706   
  252       Nanometrics, Inc.(b)      5,264   
  492       NCI, Inc., Class A      5,781   
  327       NeoPhotonics Corp.(b)      4,578   
  94       NETGEAR, Inc.(b)      4,747   
  191       NetScout Systems, Inc.(b)      5,243   
  205       NeuStar, Inc., Class A(b)      4,602   
  146       New Relic, Inc.(b)      5,322   
  239       NIC, Inc.      5,485   
  705       Nimble Storage, Inc.(b)      5,379   
  323       Novanta, Inc.(b)      5,636   
  711       Numerex Corp., Class A(b)      5,055   
  95       NVE Corp.      5,346   
  623       Oclaro, Inc.(b)      4,554   
  84       OSI Systems, Inc.(b)      5,891   
  477       Park City Group, Inc.(b)      6,273   
  329       Park Electrochemical Corp.      5,076   
  109       Paycom Software, Inc.(b)      5,639   
  122       Paylocity Holding Corp.(b)      5,306   
  216       PC Connection, Inc.      5,013   
  324       PDF Solutions, Inc.(b)      6,399   
  189       Pegasystems, Inc.      5,840   
  280       Perficient, Inc.(b)      5,211   
  600       PFSweb, Inc.(b)      4,332   
  542       Photronics, Inc.(b)      5,257   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   21  

 

 

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Information Technology (continued)   
  752       Planet Payment, Inc.(b)    $ 2,624   
  108       Plantronics, Inc.      5,585   
  119       Plexus Corp.(b)      5,451   
  90       Power Integrations, Inc.      5,801   
  199       Progress Software Corp.(b)      5,355   
  71       Proofpoint, Inc.(b)      5,565   
  248       PROS Holdings, Inc.(b)      5,436   
  408       Pure Storage, Inc., Class A(b)      5,035   
  192       Q2 Holdings, Inc.(b)      5,395   
  245       QAD, Inc., Class A      5,892   
  146       Qualys, Inc.(b)      5,439   
  1,541       QuinStreet, Inc.(b)      4,469   
  356       Quotient Technology, Inc.(b)      3,774   
  1,026       Radisys Corp.(b)      4,278   
  445       Rambus, Inc.(b)      5,425   
  320       Rapid7, Inc.(b)      4,586   
  1,279       RealNetworks, Inc.(b)      5,704   
  216       RealPage, Inc.(b)      5,875   
  273       Reis, Inc.      5,364   
  597       RetailMeNot, Inc.(b)      5,403   
  617       Rightside Group Ltd.(b)      5,189   
  234       RingCentral, Inc., Class A(b)      4,844   
  173       Rofin-Sinar Technologies, Inc.(b)      5,631   
  91       Rogers Corp.(b)      4,953   
  589       Rosetta Stone, Inc.(b)      4,194   
  665       Rubicon Project, Inc. (The)(b)      5,094   
  315       Rudolph Technologies, Inc.(b)      5,702   
  197       Sanmina Corp.(b)      5,447   
  421       Sapiens International Corp. NV (Israel)      5,730   
  154       ScanSource, Inc.(b)      5,390   
  79       Science Applications International Corp.      5,444   
  441       Secureworks Corp., Class A(b)      5,199   
  202       Semtech Corp.(b)      4,888   
  1,110       ServiceSource International, Inc.(b)      5,273   
  686       ShoreTel, Inc.(b)      4,562   
  74       Shutterstock, Inc.(b)      4,365   
  709       Sigma Designs, Inc.(b)      5,176   
  130       Silicom Ltd. (Israel)      4,836   
  720       Silicon Graphics International Corp.(b)      5,580   
  98       Silicon Laboratories, Inc.(b)      5,875   
  398       Silver Spring Networks, Inc.(b)      5,596   
  634       Sonus Networks, Inc.(b)      3,671   
  76       SPS Commerce, Inc.(b)      4,741   
  50       Stamps.com, Inc.(b)      4,878   
  241       Stratasys Ltd.(b)      4,608   
  236       Super Micro Computer, Inc.(b)      5,593   
  194       Sykes Enterprises, Inc.(b)      5,188   
  95       Synaptics, Inc.(b)      4,951   
  131       Synchronoss Technologies, Inc.(b)      4,809   
  48       SYNNEX Corp.      4,922   
  135       Syntel, Inc.      2,714   
  696       Systemax, Inc.      5,464   
  120       Take-Two Interactive Software, Inc.(b)      5,327   
  665       Tangoe, Inc.(b)      5,706   
  65       Tech Data Corp.(b)      5,006   
  689       TechTarget, Inc.(b)      5,567   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Information Technology (continued)   
  975       Telenav, Inc.(b)    $ 5,314   
  186       TeleTech Holdings, Inc.      5,227   
  147       Tessera Technologies, Inc.      5,454   
  270       Tivo Corp.(b)      5,360   
  314       Travelport Worldwide Ltd.      4,434   
  614       TrueCar, Inc.(b)      5,925   
  483       TTM Technologies, Inc.(b)      6,351   
  479       TubeMogul, Inc.(b)      3,497   
  102       Ubiquiti Networks, Inc.(b)      5,348   
  807       Ultra Clean Holdings, Inc.(b)      6,860   
  239       Ultratech, Inc.(b)      5,088   
  598       Unisys Corp.(b)      6,249   
  94       Universal Display Corp.(b)      4,860   
  987       USA Technologies, Inc.(b)      4,442   
  185       Varonis Systems, Inc.(b)      5,282   
  312       VASCO Data Security International, Inc.(b)      4,290   
  286       Veeco Instruments, Inc.(b)      6,206   
  147       Verint Systems, Inc.(b)      5,292   
  74       ViaSat, Inc.(b)      5,229   
  754       Viavi Solutions, Inc.(b)      5,368   
  1,773       VirnetX Holding Corp.(b)      5,408   
  231       Virtusa Corp.(b)      4,375   
  394       Vishay Intertechnology, Inc.      5,555   
  341       Vishay Precision Group, Inc.(b)      5,354   
  315       Web.com Group, Inc.(b)      5,072   
  79       WebMD Health Corp.(b)      3,881   
  307       Workiva, Inc., Class A(b)      5,081   
  383       Xactly Corp.(b)      4,941   
  934       Xcerra Corp.(b)      5,146   
  246       XO Group, Inc.(b)      4,526   
  183       Zendesk, Inc.(b)      4,811   
  1,370       Zix Corp.(b)      5,576   
     

 

 

  
        1,610,644   
     

 

 

  
   Materials—7.5%   
  425       A. Schulman, Inc.      12,219   
  108       AEP Industries, Inc.      11,831   
  2,306       AgroFresh Solutions, Inc.(b)      10,838   
  2,477       AK Steel Holding Corp.(b)      12,880   
  691       Allegheny Technologies, Inc.      9,425   
  745       American Vanguard Corp.      11,324   
  1,081       Ampco-Pittsburgh Corp.      11,675   
  169       Balchem Corp.      12,827   
  469       Boise Cascade Co.(b)      9,028   
  803       Calgon Carbon Corp.      12,687   
  298       Carpenter Technology Corp.      9,420   
  1,851       Century Aluminum Co.(b)      13,531   
  178       Chase Corp.      12,166   
  803       Chemours Co. (The)      13,193   
  368       Chemtura Corp.(b)      12,070   
  189       Clearwater Paper Corp.(b)      10,036   
  1,983       Cliffs Natural Resources, Inc.(b)      10,946   
  919       Codexis, Inc.(b)      4,641   
  1,018       Coeur Mining, Inc.(b)      11,381   
  740       Commercial Metals Co.      11,625   
  181       Deltic Timber Corp.      10,169   
  924       Ferro Corp.(b)      11,975   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   22  

 

 

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Materials (continued)   
  1,353       Ferroglobal PLC    $ 12,515   
  1,533       Flotek Industries, Inc.(b)      18,059   
  1,085       FutureFuel Corp.      11,892   
  432       GCP Applied Technologies, Inc.(b)      11,167   
  1,683       Gold Resource Corp.      9,560   
  243       Greif, Inc., Class A      11,387   
  262       H.B. Fuller Co.      11,022   
  281       Hawkins, Inc.      11,338   
  328       Haynes International, Inc.      10,552   
  711       Headwaters, Inc.(b)      11,660   
  2,146       Hecla Mining Co.      12,855   
  256       Ingevity Corp.(b)      10,598   
  318       Innophos Holdings, Inc.      14,577   
  202       Innospec, Inc.      12,171   
  141       Kaiser Aluminum Corp.      10,221   
  642       KapStone Paper and Packaging Corp.      11,646   
  429       KMG Chemicals, Inc.      11,643   
  391       Koppers Holdings, Inc.(b)      12,805   
  351       Kraton Corp.(b)      8,996   
  1,472       Kronos Worldwide, Inc.      11,320   
  634       Louisiana-Pacific Corp.(b)      11,634   
  1,491       LSB Industries, Inc.(b)      7,887   
  393       Materion Corp.      11,908   
  183       Minerals Technologies, Inc.      12,298   
  837       Multi Packaging Solutions International Ltd.(b)      11,308   
  923       Myers Industries, Inc.      11,122   
  151       Neenah Paper, Inc.      12,065   
  627       Olin Corp.      13,750   
  566       Olympic Steel, Inc.      13,069   
  1,489       OMNOVA Solutions, Inc.(b)      11,316   
  547       P.H. Glatfelter Co.      12,154   
  359       PolyOne Corp.      10,494   
  116       Quaker Chemical Corp.      12,470   
  971       Rayonier Advanced Materials, Inc.      12,555   
  456       Real Industry, Inc.(b)      2,440   
  1,119       Ryerson Holding Corp.(b)      11,470   
  612       Schnitzer Steel Industries, Inc., Class A      14,780   
  313       Schweitzer-Mauduit International, Inc.      11,553   
  160       Sensient Technologies Corp.      11,922   
  168       Stepan Co.      11,933   
  989       Stillwater Mining Co.(b)      13,174   
  626       Summit Materials, Inc., Class A(b)      11,731   
  2,750       SunCoke Energy, Inc.      28,078   
  7,075       Terravia Holdings, Inc.(b)      16,626   
  1,278       TimkenSteel Corp.(b)      13,100   
  1,795       Trecora Resources(b)      18,399   
  659       Tredegar Corp.      12,192   
  212       Trinseo SA      11,119   
  1,286       Tronox Ltd., Class A      10,417   
  449       UFP Technologies, Inc.(b)      11,988   
  186       United States Lime & Minerals, Inc.      12,237   
  256       US Concrete, Inc.(b)      12,774   
  271       Worthington Industries, Inc.      12,737   
     

 

 

  
        894,571   
     

 

 

  
   Real Estate—2.3%   
  74       Acadia Realty Trust REIT      2,493   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Real Estate (continued)   
  54       Agree Realty Corp. REIT    $ 2,611   
  71       Alexander & Baldwin, Inc.      2,967   
  7       Alexander’s, Inc. REIT      2,690   
  87       Altisource Portfolio Solutions SA(b)      2,240   
  62       American Assets Trust, Inc. REIT      2,462   
  204       Armada Hoffler Properties, Inc. REIT      2,740   
  193       Ashford Hospitality Prime, Inc. REIT      2,501   
  461       Ashford Hospitality Trust, Inc. REIT      2,678   
  166       AV Homes, Inc.(b)      2,648   
  207       Bluerock Residential Growth REIT, Inc., Class A REIT      2,567   
  183       CareTrust REIT, Inc. REIT      2,577   
  236       CatchMark Timber Trust, Inc., Class A REIT      2,487   
  224       CBL & Associates Properties, Inc. REIT      2,397   
  373       Cedar Realty Trust, Inc. REIT      2,525   
  141       Chatham Lodging Trust REIT      2,496   
  118       Chesapeake Lodging Trust REIT      2,562   
  210       City Office REIT, Inc. REIT      2,638   
  91       Colony Starwood Homes REIT      2,640   
  123       Community Healthcare Trust, Inc. REIT      2,753   
  54       Consolidated-Tomoka Land Co.      2,736   
  93       CorEnergy Infrastructure Trust, Inc. REIT      2,518   
  36       CoreSite Realty Corp. REIT      2,655   
  522       Cousins Properties, Inc. REIT      4,056   
  308       DiamondRock Hospitality Co. REIT      2,818   
  65       DuPont Fabros Technology, Inc. REIT      2,653   
  141       Easterly Government Properties, Inc. REIT      2,675   
  37       EastGroup Properties, Inc. REIT      2,513   
  62       Education Realty Trust, Inc. REIT      2,641   
  238       Farmland Partners, Inc. REIT      2,532   
  425       FelCor Lodging Trust, Inc. REIT      2,716   
  96       First Industrial Realty Trust, Inc. REIT      2,535   
  297       First Potomac Realty Trust REIT      2,649   
  235       Forestar Group, Inc.(b)      2,585   
  128       Four Corners Property Trust, Inc. REIT      2,570   
  216       Franklin Street Properties Corp. REIT      2,499   
  88       FRP Holdings, Inc.(b)      2,798   
  116       Geo Group, Inc. (The) REIT      2,779   
  114       Getty Realty Corp. REIT      2,591   
  145       Gladstone Commercial Corp. REIT      2,588   
  282       Global Medical REIT, Inc. REIT      2,750   
  331       Global NET Lease, Inc. REIT      2,453   
  118       Government Properties Income Trust REIT      2,259   
  282       Gramercy Property Trust REIT      2,600   
  79       Healthcare Realty Trust, Inc. REIT      2,519   
  150       Hersha Hospitality Trust REIT      2,673   
  99       HFF, Inc., Class A      2,636   
  83       Hudson Pacific Properties, Inc. REIT      2,791   
  279       Independence Realty Trust, Inc. REIT      2,324   
  147       InfraREIT, Inc. REIT      2,443   
  445       Investors Real Estate Trust REIT      2,701   
  257       iStar, Inc. REIT(b)      2,860   
  121       Kennedy-Wilson Holdings, Inc.      2,493   
  96       Kite Realty Group Trust REIT      2,393   
  114       LaSalle Hotel Properties REIT      2,708   
  257       Lexington Realty Trust REIT      2,606   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   23  

 

 

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Real Estate (continued)   
  53       LTC Properties, Inc. REIT    $ 2,656   
  98       Mack-Cali Realty Corp. REIT      2,517   
  107       Marcus & Millichap, Inc.(b)      2,507   
  185       Medical Properties Trust, Inc. REIT      2,579   
  191       Monmouth Real Estate Investment Corp. REIT      2,611   
  254       Monogram Residential Trust, Inc. REIT      2,677   
  34       National Health Investors, Inc. REIT      2,576   
  130       National Storage Affiliates Trust REIT      2,545   
  237       New Senior Investment Group, Inc. REIT      2,470   
  296       New York REIT, Inc. REIT      2,788   
  135       NexPoint Residential Trust, Inc. REIT      2,516   
  251       NorthStar Realty Europe Corp. REIT      2,482   
  111       One Liberty Properties, Inc. REIT      2,615   
  65       Parkway, Inc. REIT(b)      1,171   
  106       Pebblebrook Hotel Trust REIT      2,574   
  116       Pennsylvania Real Estate Investment Trust REIT      2,263   
  127       Physicians Realty Trust REIT      2,511   
  70       Potlatch Corp. REIT      2,688   
  205       Preferred Apartment Communities, Inc., Class A REIT      2,669   
  24       PS Business Parks, Inc. REIT      2,635   
  51       QTS Realty Trust, Inc., Class A REIT      2,344   
  847       RAIT Financial Trust REIT      2,583   
  146       Ramco-Gershenson Properties Trust REIT      2,532   
  63       RE/MAX Holdings, Inc., Class A      2,737   
  123       Retail Opportunity Investments Corp. REIT      2,474   
  119       Rexford Industrial Realty, Inc. REIT      2,506   
  129       RLJ Lodging Trust REIT      2,544   
  69       RMR Group, Inc. (The), Class A      2,370   
  56       Ryman Hospitality Properties, Inc. REIT      2,824   
  113       Sabra Health Care REIT, Inc. REIT      2,633   
  41       Saul Centers, Inc. REIT      2,480   
  100       Select Income REIT      2,474   
  53       Seritage Growth Properties, Class A REIT      2,414   
  152       Silver Bay Realty Trust Corp. REIT      2,546   
  149       St. Joe Co. (The)(b)      2,637   
  111       STAG Industrial, Inc., Class A REIT      2,561   
  113       Stratus Properties, Inc.(b)      2,735   
  207       Summit Hotel Properties, Inc. REIT      2,689   
  219       Sunstone Hotel Investors, Inc. REIT      2,751   
  113       Tejon Ranch Co.(b)      2,524   
  99       Terreno Realty Corp. REIT      2,584   
  174       Tier REIT, Inc. REIT      2,567   
  284       Trinity Place Holdings, Inc.(b)      2,743   
  227       UMH Properties, Inc. REIT      2,751   
  43       Universal Health Realty Income Trust REIT      2,524   
  96       Urban Edge Properties REIT      2,478   
  122       Urstadt Biddle Properties, Inc., Class A REIT      2,623   
  88       Washington REIT      2,589   
  221       Washington Prime Group, Inc. REIT      2,318   
  194       Whitestone REIT      2,580   
  181       Xenia Hotels & Resorts, Inc. REIT      2,825   
     

 

 

  
        276,978   
     

 

 

  
   Telecommunication Services—3.7%   
  361       ATN International, Inc.      24,418   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Telecommunication Services (continued)   
  2,504       Boingo Wireless, Inc.(b)    $ 24,339   
  1,192       Cincinnati Bell, Inc.(b)      23,423   
  670       Cogent Communications Group, Inc.      24,723   
  948       Consolidated Communications Holdings, Inc.      22,686   
  1,670       FairPoint Communications, Inc.(b)      26,052   
  1,808       General Communication, Inc.,
Class A(b)		      28,639   
  20,034       Globalstar, Inc.(b)      18,544   
  1,506       IDT Corp., Class B      26,942   
  1,467       Inteliquent, Inc.      24,631   
  3,128       Iridium Communications, Inc.(b)      25,493   
  1,668       Lumos Networks Corp.(b)      23,702   
  2,381       ORBCOMM, Inc.(b)      21,262   
  224       pdvWireless, Inc.(b)      5,286   
  892       Shenandoah Telecommunications Co.      23,549   
  1,383       Spok Holdings, Inc.      24,963   
  932       Straight Path Communications, Inc., Class B(b)(d)      22,629   
  3,651       Vonage Holdings Corp.(b)      25,046   
  2,351       Windstream Holdings, Inc.      18,455   
     

 

 

  
        434,782   
     

 

 

  
   Utilities—7.2%   
  398       ALLETE, Inc.      24,393   
  609       American States Water Co.      24,348   
  842       Artesian Resources Corp., Class A      23,761   
  9,658       Atlantic Power Corp.      22,213   
  1,275       Atlantica Yield PLC (Spain)      22,925   
  567       Avista Corp.      23,474   
  392       Black Hills Corp.      24,245   
  760       California Water Service Group      23,560   
  386       Chesapeake Utilities Corp.      24,723   
  478       Connecticut Water Service, Inc.      24,889   
  1,910       Dynegy, Inc.(b)      20,342   
  508       El Paso Electric Co.      23,470   
  711       Empire District Electric Co. (The)      24,338   
  311       IDACORP, Inc.      24,379   
  420       MGE Energy, Inc.      24,549   
  665       Middlesex Water Co.      24,007   
  733       New Jersey Resources Corp.      24,885   
  395       Northwest Natural Gas Co.      23,226   
  410       NorthWestern Corp.      23,596   
  1,414       NRG Yield, Inc., Class C      21,776   
  390       ONE Gas, Inc.      23,899   
  500       Ormat Technologies, Inc.      24,115   
  684       Otter Tail Corp.      24,590   
  1,054       Pattern Energy Group, Inc.      23,557   
  732       PNM Resources, Inc.      24,046   
  557       Portland General Electric Co.      24,307   
  547       SJW Corp.      27,749   
  813       South Jersey Industries, Inc.      24,105   
  336       Southwest Gas Corp.      24,347   
  368       Spire, Inc.      23,110   
  1,754       Talen Energy Corp.(b)      24,433   
  4,815       TerraForm Global, Inc., Class A      18,056   
  1,407       TerraForm Power, Inc., Class A(b)      17,461   
  624       Unitil Corp.      25,316   
  380       WGL Holdings, Inc.      23,967   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   24  

 

 

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Utilities (continued)   
  822       York Water Co. (The)    $ 25,975   
     

 

 

  
        852,132   
     

 

 

  
   Total Common Stocks and Other Equity Interests
(Cost $11,932,933)		      11,928,832   
     

 

 

  
     
   Money Market Fund—0.6%   
  66,463       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(e)
(Cost $66,463)		      66,463   
     

 

 

  
   Total Investments
(excluding investments purchased with cash collateral from securities on loan)
(Cost $11,999,396)—100.6%		      11,995,295   
     

 

 

  
     
   Investments Purchased with Cash Collateral from Securities on Loan    
     
   Money Market Fund—0.1%   
  15,300       Invesco Government & Agency Portfolio—Institutional Class,
0.29%(e)(f)
(Cost $15,300)		      15,300   
     

 

 

  
   Total Investments
(Cost $12,014,696)—100.7%		      12,010,595   
   Other assets less liabilities—(0.7)%      (81,948 ) 
     

 

 

  
   Net Assets—100.0%    $ 11,928,647   
     

 

 

  

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  Non-income producing security.
(c)  Affiliated company. The Fund’s Adviser and Invesco Mortgage Capital, Inc. REIT are wholly-owned subsidiaries of Invesco Ltd. and therefore, Invesco Ltd. and Invesco Mortgage Capital, Inc. REIT are considered to be affiliated with the Fund. See Note 4.
(d)  All or a portion of this security was out on loan at October 31, 2016.
(e)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
(f)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2H.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   25  

 

 

PowerShares Russell 2000 Pure Growth Portfolio (PXSG)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Information Technology      36.9   
Health Care      26.1   
Consumer Discretionary      15.1   
Industrials      11.7   
Consumer Staples      3.4   
Materials      2.9   
Real Estate      2.1   
Financials      1.5   
Telecommunication Services      0.3   
Money Market Funds Plus Other Assets Less Liabilities      0.0   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests—100.0%    
   Consumer Discretionary—15.1%   
  2,060       Asbury Automotive Group, Inc.(b)    $ 104,957   
  2,538       BJ’s Restaurants, Inc.(b)      91,622   
  1,352       Buffalo Wild Wings, Inc.(b)      196,919   
  356       Cavco Industries, Inc.(b)      32,894   
  822       Cheesecake Factory, Inc. (The)      43,722   
  781       Churchill Downs, Inc.      106,216   
  2,975       Core-Mark Holding Co., Inc.      105,166   
  3,136       Dave & Buster’s Entertainment, Inc.(b)      129,674   
  693       Dorman Products, Inc.(b)      44,518   
  2,487       Drew Industries, Inc.      222,711   
  2,384       Duluth Holdings, Inc., Class B(b)(c)      64,726   
  648       Etsy, Inc.(b)      8,411   
  3,982       Fox Factory Holding Corp.(b)      86,409   
  5,688       Francesca’s Holdings Corp.(b)      91,406   
  496       Gentherm, Inc.(b)      13,962   
  2,467       Grand Canyon Education, Inc.(b)      107,660   
  7,530       Habit Restaurants, Inc. (The), Class A(b)(c)      106,550   
  2,085       IMAX Corp.(b)      63,071   
  3,286       Installed Building Products, Inc.(b)      108,602   
  1,476       Lindblad Expeditions Holdings, Inc.(b)      12,089   
  6,247       MCBC Holdings, Inc.      69,592   
  296       Monro Muffler Brake, Inc.      16,280   
  4,744       Nautilus, Inc.(b)      83,494   
  4,276       Nexstar Broadcasting Group, Inc., Class A(c)      208,669   
  2,444       Ollie’s Bargain Outlet Holdings, Inc.(b)      66,843   
  701       Oxford Industries, Inc.      43,967   
  654       Papa John’s International, Inc.      49,344   
  2,001       Popeyes Louisiana Kitchen, Inc.(b)      106,813   
  5,316       Potbelly Corp.(b)      69,374   
  8,106       Select Comfort Corp.(b)      155,554   
  2,982       Shake Shack, Inc., Class A(b)(c)      95,096   
  623       Shutterfly, Inc.(b)      30,527   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Consumer Discretionary (continued)   
  5,969       Sinclair Broadcast Group, Inc., Class A    $ 149,822   
  8,742       Smith & Wesson Holding Corp.(b)(c)      231,051   
  1,844       Sturm Ruger & Co., Inc.      113,406   
  4,158       Taylor Morrison Home Corp., Class A(b)      70,936   
  58       Tenneco, Inc.(b)      3,194   
  3,895       Texas Roadhouse, Inc.      157,825   
  12,497       Tile Shop Holdings, Inc. (The)(b)      211,824   
  1,346       Universal Electronics, Inc.(b)      94,422   
  5,881       World Wrestling Entertainment, Inc., Class A      103,976   
  6,210       Zoe’s Kitchen, Inc.(b)(c)      140,781   
     

 

 

  
        4,014,075   
     

 

 

  
   Consumer Staples—3.4%   
  8,268       Amplify Snack Brands, Inc.(b)(c)      119,803   
  3,824       B&G Foods, Inc.      162,138   
  1,840       Calavo Growers, Inc.      108,836   
  157       Coca-Cola Bottling Co. Consolidated      22,184   
  383       Farmer Brothers Co.(b)      12,524   
  7,451       HRG Group, Inc.(b)      112,063   
  10,187       Lifevantage Corp.(b)      83,533   
  492       MGP Ingredients, Inc.      17,323   
  2,872       Natural Health Trends Corp.(c)      67,004   
  768       PriceSmart, Inc.      69,850   
  1,084       USANA Health Sciences, Inc.(b)      139,294   
     

 

 

  
        914,552   
     

 

 

  
   Financials—1.5%   
  2,983       Cohen & Steers, Inc.      110,908   
  263       Diamond Hill Investment Group, Inc.      47,869   
  866       Financial Engines, Inc.      23,945   
  340       Firstcash, Inc.      16,048   
  1,759       Moelis & Co., Class A      44,679   
  790       ServisFirst Bancshares, Inc.      42,771   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   26  

 

 

PowerShares Russell 2000 Pure Growth Portfolio (PXSG) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials (continued)   
  4,239       Trupanion, Inc.(b)    $ 68,629   
  561       Westwood Holdings Group, Inc.      28,919   
  4,178       WMIH Corp.(b)      8,774   
     

 

 

  
        392,542   
     

 

 

  
   Health Care—26.1%   
  740       Abaxis, Inc.      35,328   
  30,824       AcelRX Pharmaceuticals, Inc.(b)(c)      86,307   
  2,600       Achillion Pharmaceuticals, Inc.(b)(c)      16,328   
  1,411       Adeptus Health, Inc., Class A(b)      42,499   
  3,158       AMN Healthcare Services, Inc.(b)      103,582   
  3,026       Amphastar Pharmaceuticals, Inc.(b)      54,892   
  2,644       Ampio Pharmaceuticals, Inc.(b)      1,815   
  3,226       ANI Pharmaceuticals, Inc.(b)(c)      192,592   
  959       Aptevo Therapeutics, Inc.(b)      2,119   
  54,665       Arena Pharmaceuticals, Inc.(b)      80,904   
  3,368       Avinger, Inc.(b)(c)      11,788   
  2,799       BioSpecifics Technologies Corp.(b)      121,449   
  6,661       BioTelemetry, Inc.(b)      117,900   
  2,012       Cambrex Corp.(b)      81,084   
  1,787       Cantel Medical Corp.      127,288   
  5,183       Castlight Health, Inc., Class B(b)(c)      22,546   
  1,034       Cempra, Inc.(b)(c)      18,741   
  5,863       Cepheid, Inc.(b)      310,153   
  19,247       Chromadex Corp.(b)      53,122   
  683       Computer Programs & Systems, Inc.(c)      17,826   
  1,988       CorVel Corp.(b)      68,685   
  5,395       Cross Country Healthcare, Inc.(b)      60,262   
  2,453       Cynosure, Inc., Class A(b)      104,620   
  13,470       Cytokinetics, Inc.(b)      130,659   
  7,997       Depomed, Inc.(b)      178,813   
  6,134       Diplomat Pharmacy, Inc.(b)(c)      142,125   
  2,080       Eagle Pharmaceuticals, Inc.(b)(c)      116,230   
  819       Emergent BioSolutions, Inc.(b)      21,884   
  4,893       Endologix, Inc.(b)      51,181   
  2,954       Fluidigm Corp.(b)      13,677   
  5,401       GenMark Diagnostics, Inc.(b)      57,629   
  3,455       Genomic Health, Inc.(b)      102,994   
  25,913       Geron Corp.(b)(c)      47,939   
  1,298       Glaukos Corp.(b)      43,353   
  10,406       Halozyme Therapeutics, Inc.(b)      89,804   
  3,719       HealthEquity, Inc.(b)      123,582   
  549       HealthStream, Inc.(b)      14,807   
  7,967       ImmunoGen, Inc.(b)(c)      14,500   
  1,505       INC Research Holdings, Inc., Class A(b)      68,778   
  2,216       Inogen, Inc.(b)      118,933   
  6,615       Inovio Pharmaceuticals, Inc.(b)(c)      42,799   
  10       Insulet Corp.(b)      371   
  1,081       Intra-Cellular Therapies, Inc.(b)      13,404   
  1,983       iRadimed Corp.(b)      18,739   
  3,849       Ironwood Pharmaceuticals, Inc., Class A(b)      49,152   
  18,952       Keryx Biopharmaceuticals, Inc.(b)(c)      85,473   
  7,810       Lexicon Pharmaceuticals, Inc.(b)(c)      115,822   
  1,335       Ligand Pharmaceuticals, Inc.(b)      127,800   
  1,056       Masimo Corp.(b)      58,080   
  11,582       MediciNova, Inc.(b)(c)      78,642   
  3,748       Medidata Solutions, Inc.(b)      179,867   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Health Care (continued)   
  28,849       MiMedx Group, Inc.(b)(c)    $ 257,045   
  1,981       Myriad Genetics, Inc.(b)      39,045   
  2,494       Neogen Corp.(b)      131,409   
  7,811       NeoGenomics, Inc.(b)      62,957   
  531       Nevro Corp.(b)      48,810   
  12,640       Novavax, Inc.(b)(c)      19,213   
  2,134       Novocure Ltd.(b)      12,911   
  1,770       NuVasive, Inc.(b)      105,722   
  3,739       Ocular Therapeutix, Inc.(b)(c)      21,163   
  3,250       Omnicell, Inc.(b)      106,031   
  11,880       Pacific Biosciences of California, Inc.(b)      100,980   
  1,581       Paratek Pharmaceuticals, Inc.(b)      16,917   
  2,766       PAREXEL International Corp.(b)      161,147   
  3,778       PRA Health Sciences, Inc.(b)      201,065   
  1,851       Prothena Corp. PLC (Ireland)(b)      88,515   
  658       Providence Service Corp. (The)(b)      26,626   
  1,284       Radius Health, Inc.(b)(c)      55,109   
  6,166       RadNet, Inc.(b)      42,854   
  9,283       Repligen Corp.(b)      265,215   
  3,451       Spectranetics Corp. (The)(b)      74,887   
  1,490       STAAR Surgical Co.(b)      12,590   
  17,543       Sucampo Pharmaceuticals, Inc., Class A(b)      199,990   
  11,844       Supernus Pharmaceuticals, Inc.(b)      234,511   
  3,718       T2 Biosystems, Inc.(b)(c)      23,498   
  4,729       Tandem Diabetes Care, Inc.(b)      28,610   
  1,670       Team Health Holdings, Inc.(b)      71,559   
  6,747       Teligent, Inc.(b)      43,923   
  422       U.S. Physical Therapy, Inc.      24,012   
  8,426       Vanda Pharmaceuticals, Inc.(b)      125,126   
  3,155       Vascular Solutions, Inc.(b)      143,868   
  8,151       Zeltiq Aesthetics, Inc.(b)(c)      269,798   
  14,571       ZIOPHARM Oncology, Inc.(b)(c)      82,763   
     

 

 

  
        6,936,736   
     

 

 

  
   Industrials—11.7%   
  3,526       AAON, Inc.      105,604   
  4,374       Advanced Drainage Systems, Inc.      83,543   
  2,182       Advisory Board Co. (The)(b)      86,844   
  2       Allegiant Travel Co.      276   
  4,413       Allied Motion Technologies, Inc.      87,289   
  1,658       American Woodmark Corp.(b)      123,853   
  454       Apogee Enterprises, Inc.      18,501   
  260       Argan, Inc.      14,781   
  371       Astronics Corp.(b)      13,734   
  220       AZZ, Inc.      11,715   
  1,656       Barrett Business Services, Inc.      74,238   
  19,544       Builders FirstSource, Inc.(b)      188,990   
  1,430       Comfort Systems USA, Inc.      41,256   
  3,075       Continental Building Products, Inc.(b)      62,884   
  2,196       Dycom Industries, Inc.(b)      168,938   
  815       Forward Air Corp.      33,676   
  215       GP Strategies Corp.(b)      5,558   
  4,494       Hawaiian Holdings, Inc.(b)      202,342   
  4,910       Healthcare Services Group, Inc.      181,523   
  93       Heartland Express, Inc.      1,711   
  1,849       Insperity, Inc.      139,045   
  307       John Bean Technologies Corp.      24,514   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   27  

 

 

PowerShares Russell 2000 Pure Growth Portfolio (PXSG) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Industrials (continued)   
  8,028       Kforce, Inc.    $ 139,286   
  1,941       Masonite International Corp.(b)      110,443   
  4,986       Mistras Group, Inc.(b)      104,407   
  1,367       On Assignment, Inc.(b)      47,038   
  2,544       Patrick Industries, Inc.(b)      145,898   
  18,540       PGT, Inc.(b)      181,692   
  1,852       Proto Labs, Inc.(b)      82,784   
  552       RBC Bearings, Inc.(b)      39,385   
  4,726       TASER International, Inc.(b)      105,768   
  1,080       Trex Co., Inc.(b)      58,115   
  9,429       TriNet Group, Inc.(b)      176,982   
  5,705       Univar, Inc.(b)      126,936   
  3,235       US Ecology, Inc.      136,679   
     

 

 

  
        3,126,228   
     

 

 

  
   Information Technology—36.9%   
  1,321       3D Systems Corp.(b)(c)      18,322   
  16,290       8x8, Inc.(b)      232,133   
  18,661       A10 Networks, Inc.(b)      142,943   
  712       Acacia Communications, Inc.(b)      49,619   
  14,118       Aerohive Networks, Inc.(b)      74,684   
  5,761       Alarm.com Holdings, Inc.(b)(c)      168,106   
  17,477       Amber Road, Inc.(b)      166,556   
  5,452       Angie’s List, Inc.(b)      41,980   
  1,825       Apigee Corp.(b)      31,664   
  1,235       AppFolio, Inc., Class A(b)(c)      23,527   
  2,872       Aspen Technology, Inc.(b)      141,417   
  3,621       Badger Meter, Inc.      116,415   
  71       Benefitfocus, Inc.(b)      2,308   
  1,894       Blackbaud, Inc.      116,292   
  1,420       Box, Inc., Class A(b)      20,476   
  23,056       Brightcove, Inc.(b)      257,074   
  3,258       BroadSoft, Inc.(b)      135,370   
  4,649       CalAmp Corp.(b)      60,065   
  1,984       Callidus Software, Inc.(b)      36,208   
  1,296       Carbonite, Inc.(b)      22,097   
  754       Cardtronics PLC, Class A(b)      37,700   
  10,597       Care.com, Inc.(b)      96,221   
  4,598       Cavium, Inc.(b)      259,557   
  765       CEVA, Inc.(b)      22,988   
  971       Cimpress NV (Netherlands)(b)      80,836   
  2,104       Cirrus Logic, Inc.(b)      113,574   
  10,878       Clearfield, Inc.(b)(c)      182,207   
  1,632       CommVault Systems, Inc.(b)      87,312   
  2,533       comScore, Inc.(b)      72,925   
  820       Cornerstone OnDemand, Inc.(b)      33,866   
  605       Cvent, Inc.(b)      18,888   
  14,924       EarthLink Holdings Corp.      85,365   
  1,759       Ebix, Inc.(c)      98,504   
  54       Electronics for Imaging, Inc.(b)      2,297   
  2,528       Ellie Mae, Inc.(b)      267,690   
  9,568       Endurance International Group Holdings, Inc.(b)(c)      70,325   
  4,420       Envestnet, Inc.(b)      156,247   
  2,085       EPAM Systems, Inc.(b)      134,211   
  2,194       ExlService Holdings, Inc.(b)      96,602   
  49,234       Extreme Networks, Inc.(b)      207,275   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Information Technology (continued)   
  1,266       Fair Isaac Corp.    $ 152,781   
  12,384       Five9, Inc.(b)      177,339   
  2,908       Fleetmatics Group PLC(b)      174,189   
  1,920       Forrester Research, Inc.      71,520   
  6,794       Gigamon, Inc.(b)      375,708   
  5,003       Globant SA(b)      217,631   
  6,186       Gogo, Inc.(b)(c)      62,540   
  4,211       Hackett Group, Inc. (The)      67,881   
  1,421       Hortonworks, Inc.(b)      10,856   
  2,618       HubSpot, Inc.(b)      137,314   
  5,436       Imperva, Inc.(b)      200,588   
  1,584       inContact, Inc.(b)      22,033   
  5,161       Interactive Intelligence Group, Inc.(b)      311,982   
  423       j2 Global, Inc.      30,096   
  3,039       Jive Software, Inc.(b)      12,004   
  3,819       Lionbridge Technologies, Inc.(b)      18,446   
  79       Littelfuse, Inc.      11,021   
  3,677       LogMeIn, Inc.(c)      349,315   
  1,619       MACOM Technology Solutions Holdings, Inc.(b)      59,514   
  1,874       MAXIMUS, Inc.      97,560   
  9,496       MaxLinear, Inc., Class A(b)      177,670   
  1,179       Mesa Laboratories, Inc.      148,837   
  744       Microsemi Corp.(b)      31,345   
  1,152       MINDBODY, Inc., Class A(b)(c)      23,846   
  9,079       Mitek Systems, Inc.(b)      61,283   
  1,599       Monolithic Power Systems, Inc.      126,017   
  538       New Relic, Inc.(b)      19,610   
  684       NIC, Inc.      15,698   
  2,710       Nimble Storage, Inc.(b)      20,677   
  3,428       Paycom Software, Inc.(b)      177,330   
  739       Paylocity Holding Corp.(b)      32,139   
  6,383       Pegasystems, Inc.      197,235   
  2,219       Plantronics, Inc.      114,745   
  4,919       PROS Holdings, Inc.(b)      107,825   
  681       Q2 Holdings, Inc.(b)      19,136   
  18,574       Quotient Technology, Inc.(b)      196,884   
  1,475       Rapid7, Inc.(b)(c)      21,137   
  7,133       RealPage, Inc.(b)      194,018   
  978       RingCentral, Inc., Class A(b)      20,245   
  7,759       Sapiens International Corp. NV (Israel)      105,600   
  2,410       SPS Commerce, Inc.(b)      150,336   
  831       Stamps.com, Inc.(b)(c)      81,064   
  3,180       Synchronoss Technologies, Inc.(b)      116,738   
  3,172       Ubiquiti Networks, Inc.(b)      166,308   
  3,411       Universal Display Corp.(b)      176,349   
  5,090       Varonis Systems, Inc.(b)      145,320   
  25,858       VirnetX Holding Corp.(b)(c)      78,867   
  6,248       Web.com Group, Inc.(b)      100,593   
  2,649       WebMD Health Corp.(b)      130,145   
  1,350       Workiva, Inc., Class A(b)      22,343   
  2,045       Xactly Corp.(b)      26,381   
  5,105       XO Group, Inc.(b)      93,932   
  593       Zendesk, Inc.(b)      15,590   
  43,668       Zix Corp.(b)      177,729   
     

 

 

  
        9,835,136   
     

 

 

  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   28  

 

 

PowerShares Russell 2000 Pure Growth Portfolio (PXSG) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Materials—2.9%   
  1,644       AEP Industries, Inc.    $ 180,100   
  1,638       Balchem Corp.      124,324   
  1,373       Chase Corp.      93,845   
  73       Deltic Timber Corp.      4,101   
  1,020       Multi Packaging Solutions International Ltd.(b)      13,780   
  557       PolyOne Corp.      16,281   
  11,107       Real Industry, Inc.(b)      59,422   
  10,125       Summit Materials, Inc., Class A(b)      189,743   
  1,011       US Concrete, Inc.(b)      50,449   
  753       Worthington Industries, Inc.      35,391   
     

 

 

  
        767,436   
     

 

 

  
   Real Estate—2.1%   
  701       Altisource Portfolio Solutions SA(b)      18,051   
  2,109       CoreSite Realty Corp. REIT      155,517   
  3,817       DuPont Fabros Technology, Inc. REIT      155,772   
  2,584       HFF, Inc., Class A      68,812   
  2,993       Marcus & Millichap, Inc.(b)      70,126   
  472       Potlatch Corp. REIT      18,125   
  430       PS Business Parks, Inc. REIT      47,210   
  171       Ryman Hospitality Properties, Inc. REIT      8,622   
  443       Universal Health Realty Income Trust REIT      26,004   
     

 

 

  
        568,239   
     

 

 

  
   Telecommunication Services—0.3%   
  5,490       General Communication, Inc.,
Class A(b)		      86,962   
     

 

 

  
   Total Common Stocks and Other Equity Interests
(Cost $26,519,991)		      26,641,906   
     

 

 

  
     
   Money Market Fund—0.2%   
  65,437       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(d)
(Cost $65,437)		      65,437   
     

 

 

  
   Total Investments
(excluding investments purchased with cash collateral from securities on loan)
(Cost $26,585,428)—100.2%		      26,707,343   
     

 

 

  
     
   Investments Purchased with Cash Collateral from Securities on Loan    
     
   Money Market Fund—10.4%   
  2,769,956       Invesco Government & Agency Portfolio— Institutional Class, 0.29%(d)(e)
(Cost $2,769,956)		      2,769,956   
     

 

 

  
   Total Investments
(Cost $29,355,384)—110.6%		      29,477,299   
   Other assets less liabilities—(10.6)%      (2,834,140 ) 
     

 

 

  
   Net Assets—100.0%    $ 26,643,159   
     

 

 

  

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  Non-income producing security.
(c)  All or a portion of this security was out on loan at October 31, 2016.
(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2H.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   29  

 

 

PowerShares Russell 2000 Pure Value Portfolio (PXSV)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sector Breakdown
(% of the Fund’s Net Assets) 
as of October 31, 2016
  
Financials      38.5   
Energy      15.9   
Industrials      8.6   
Real Estate      8.6   
Information Technology      7.7   
Consumer Discretionary      7.6   
Materials      5.1   
Utilities      3.9   
Health Care      2.5   
Telecommunication Services      1.4   
Consumer Staples      0.2   
Money Market Funds Plus Other Assets Less Liabilities      0.0   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests—100.0%    
   Consumer Discretionary—7.6%   
  772       Abercrombie & Fitch Co., Class A    $ 11,279   
  34,204       Apollo Education Group, Inc., Class A(b)      300,653   
  10,637       Barnes & Noble, Inc.      109,561   
  48,557       Beazer Homes USA, Inc.(b)      496,738   
  33,680       Big 5 Sporting Goods Corp.      522,040   
  46,606       Bridgepoint Education, Inc.(b)      315,057   
  42,875       Career Education Corp.(b)      308,271   
  2,966       Cooper Tire & Rubber Co.      109,001   
  13,798       Del Taco Restaurants, Inc.(b)      185,031   
  1,054       Delta Apparel, Inc.(b)      17,391   
  16,847       DeVry Education Group, Inc.      382,427   
  8,191       Entercom Communications Corp., Class A      108,121   
  1,493       FTD Cos., Inc.(b)      30,039   
  26,497       Green Brick Partners, Inc.(b)      202,702   
  15,386       Guess?, Inc.      207,711   
  911       Haverty Furniture Cos., Inc.      16,170   
  6,796       International Speedway Corp., Class A      223,588   
  3,061       Monarch Casino & Resort, Inc.(b)      72,393   
  2,240       National CineMedia, Inc.      31,069   
  75,304       Office Depot, Inc.      237,208   
  2,712       Performance Sports Group Ltd.(b)(c)      2,359   
  5,509       Perry Ellis International, Inc.(b)      102,412   
  18,455       Regis Corp.(b)      234,009   
  1,783       Scholastic Corp.      68,200   
  18,049       Speedway Motorsports, Inc.      339,502   
  9,094       Stage Stores, Inc.(c)      46,289   
  2,811       Tuesday Morning Corp.(b)      13,914   
     

 

 

  
        4,693,135   
     

 

 

  
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Consumer Staples—0.2%   
  1,994       Universal Corp.    $ 108,075   
  426       Weis Markets, Inc.      23,698   
     

 

 

  
        131,773   
     

 

 

  
   Energy—15.9%   
  45,514       Alon USA Energy, Inc.      366,843   
  36,546       Archrock, Inc.      423,934   
  4,754       Ardmore Shipping Corp. (Ireland)      27,811   
  46,913       Bill Barrett Corp.(b)(c)      243,479   
  5,932       Bristow Group, Inc.      59,379   
  22,784       CARBO Ceramics, Inc.(c)      138,982   
  10,144       Clayton Williams Energy, Inc.(b)      885,673   
  50,985       Clean Energy Fuels Corp.(b)(c)      209,548   
  38,389       Cobalt International Energy, Inc.(b)      36,243   
  27,440       Contango Oil & Gas Co.(b)      214,855   
  39,309       Dawson Geophysical Co.(b)      257,474   
  18,471       Delek US Holdings, Inc.      312,160   
  77,094       Denbury Resources, Inc.(b)(c)      184,255   
  72,110       DHT Holdings, Inc.      293,488   
  20,377       Eclipse Resources Corp.(b)      55,833   
  9,279       Era Group, Inc.(b)      70,056   
  62,014       EXCO Resources, Inc.(b)(c)      66,975   
  11,798       Exterran Corp.(b)      186,526   
  6,845       Fairmount Santrol Holdings, Inc.(b)      58,799   
  7,573       Forum Energy Technologies, Inc.(b)      136,314   
  34,312       Frontline Ltd. (Norway)(c)      246,017   
  10,517       Gener8 Maritime, Inc.(b)      44,382   
  7,291       Geospace Technologies Corp.(b)      134,373   
  16,300       Golar LNG Ltd. (Bermuda)(c)      356,807   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   30  

 

 

PowerShares Russell 2000 Pure Value Portfolio (PXSV) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Energy (continued)   
  533       Green Plains, Inc.    $ 13,858   
  42,593       Helix Energy Solutions Group, Inc.(b)      371,411   
  30,133       Hornbeck Offshore Services, Inc.(b)(c)      119,628   
  35,930       Independence Contract Drilling, Inc.(b)      143,001   
  18,236       Jones Energy, Inc., Class A(b)(c)      74,768   
  63,776       McDermott International, Inc.(b)      327,809   
  2,311       Natural Gas Services Group, Inc.(b)      50,149   
  163,994       Navios Maritime Acquisition Corp.(c)      208,272   
  54,081       Newpark Resources, Inc.(b)      340,710   
  7,906       Oil States International, Inc.(b)      231,251   
  6,742       Overseas Shipholding Group, Inc., Class A      59,060   
  50,153       Pacific Ethanol, Inc.(b)      373,640   
  96,805       Parker Drilling Co.(b)      193,610   
  273       PDC Energy, Inc.(b)      16,743   
  58,478       Pioneer Energy Services Corp.(b)      207,597   
  2,606       Ring Energy, Inc.(b)      24,053   
  57,192       Scorpio Tankers, Inc. (Monaco)      219,045   
  4,933       SEACOR Holdings, Inc.(b)      243,246   
  101,253       Seadrill Ltd. (United Kingdom)(b)(c)      215,669   
  2,984       SemGroup Corp., Class A      96,234   
  9,376       Ship Finance International Ltd. (Norway)(c)      118,606   
  24,051       Teekay Corp. (Bermuda)(c)      157,053   
  44,080       Teekay Tankers Ltd., Class A (Bermuda)      93,890   
  38,370       Tesco Corp.      262,835   
  33,496       Tidewater, Inc.(c)      57,948   
  18,075       Unit Corp.(b)      309,625   
  64,379       W&T Offshore, Inc.(b)(c)      93,350   
  2,101       Western Refining, Inc.      60,614   
  80,420       Willbros Group, Inc.(b)      122,238   
     

 

 

  
        9,816,119   
     

 

 

  
   Financials—38.5%   
  6,817       1st Source Corp.      235,596   
  22,300       AG Mortgage Investment Trust, Inc. REIT      346,319   
  7,135       American Equity Investment Life Holding Co.      127,931   
  19,608       Apollo Commercial Real Estate Finance, Inc. REIT      331,767   
  18,199       Ares Commercial Real Estate Corp. REIT      238,771   
  1,447       Argo Group International Holdings Ltd.      80,453   
  19,593       Arlington Asset Investment Corp., Class A(c)      279,788   
  11,685       ARMOUR Residential REIT, Inc. REIT(c)      264,899   
  3,416       Arrow Financial Corp.      107,946   
  21,613       Astoria Financial Corp.      316,198   
  1,458       Baldwin & Lyons, Inc., Class B      35,867   
  1,961       BancFirst Corp.      140,604   
  24,652       Bank Mutual Corp.      192,286   
  5,174       Bank of Marin Bancorp      262,580   
  15,578       BankFinancial Corp.      195,815   
  4,938       Banner Corp.      222,901   
  7,441       Berkshire Hills Bancorp, Inc.      219,882   
  4,704       Boston Private Financial Holdings, Inc.      61,858   
  3,032       Calamos Asset Management, Inc., Class A      19,587   
  6,034       Camden National Corp.      199,243   
  22,320       Capitol Federal Financial, Inc.      327,434   
  39,633       Capstead Mortgage Corp. REIT      376,910   
  3,814       Cathay General Bancorp      114,229   
  4,151       Central Pacific Financial Corp.      106,390   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials (continued)   
  4,142       City Holding Co.    $ 216,502   
  10,056       Clifton Bancorp, Inc.      153,756   
  2,120       Columbia Banking System, Inc.      70,002   
  3,098       Community Bank System, Inc.      145,947   
  5,877       Community Trust Bancorp, Inc.      214,804   
  7,669       CVB Financial Corp.      128,686   
  47,790       CYS Investments, Inc. REIT      411,950   
  19,431       Dime Community Bancshares, Inc.      314,782   
  44,507       Dynex Capital, Inc. REIT      305,763   
  5,771       EMC Insurance Group, Inc.      140,524   
  2,452       Enterprise Financial Services Corp.      81,161   
  16       Equity Bancshares, Inc., Class A(b)      416   
  4,415       EverBank Financial Corp.      85,254   
  25,951       EZCORP, Inc., Class A(b)      253,022   
  21,289       F.N.B. Corp.      278,247   
  4,571       FBL Financial Group, Inc., Class A      289,344   
  7,171       Federal Agricultural Mortgage Corp., Class C      292,792   
  3,976       Fidelity & Guaranty Life(c)      87,870   
  13,794       Fidelity Southern Corp.      251,465   
  10,779       Financial Institutions, Inc.      289,416   
  11,090       First Bancorp/Southern Pines NC      219,249   
  341       First Citizens BancShares, Inc., Class A      99,231   
  1,671       First Community Bancshares, Inc.      37,848   
  6,779       First Defiance Financial Corp.      267,635   
  9,041       First Financial Bancorp      194,381   
  5,250       First Financial Corp.      210,525   
  11,347       First Financial Northwest, Inc.      180,417   
  2,407       First Internet Bancorp      63,184   
  5,102       First Interstate BancSystem, Inc., Class A      162,754   
  6,558       First Merchants Corp.      184,608   
  1,621       First Midwest Bancorp, Inc.      31,302   
  2,169       First NBC Bank Holding Co.(b)      11,713   
  410       First of Long Island Corp. (The)      13,099   
  16,308       Flagstar Bancorp, Inc.(b)      447,328   
  16,916       Flushing Financial Corp.      362,341   
  22,690       Fulton Financial Corp.      338,081   
  1,516       German American Bancorp, Inc.      59,018   
  1,421       Glacier Bancorp, Inc.      40,157   
  7,200       Great Southern Bancorp, Inc.      297,720   
  12,853       Greenlight Capital Re Ltd., Class A(b)      255,775   
  6,401       Guaranty Bancorp      121,619   
  3,814       Hancock Holding Co.      127,960   
  9,335       Hanmi Financial Corp.      233,375   
  2,091       Heartland Financial USA, Inc.      78,308   
  14,031       Heritage Financial Corp.      258,170   
  5,555       Heritage Insurance Holdings, Inc.      65,493   
  3,495       Hilltop Holdings, Inc.(b)      86,326   
  2,762       HomeStreet, Inc.(b)      76,093   
  1,381       Hope Bancorp, Inc.      22,289   
  717       IBERIABANK Corp.      47,071   
  17,626       Independent Bank Corp./MI      296,117   
  7,498       International Bancshares Corp.      231,313   
  5,877       INTL FCStone, Inc.(b)      210,984   
  22,523       Invesco Mortgage Capital, Inc. REIT(d)      336,268   
  2,951       James River Group Holdings Ltd.      111,076   
  7,067       Lake Sunapee Bank Group      128,761   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   31  

 

 

PowerShares Russell 2000 Pure Value Portfolio (PXSV) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials (continued)   
  11,005       Lakeland Bancorp, Inc.    $ 155,721   
  9,976       MainSource Financial Group, Inc.      249,001   
  27,797       Manning & Napier, Inc., Class A      191,799   
  4,151       Mercantile Bank Corp.      114,236   
  98       Meta Financial Group, Inc.      7,178   
  54,746       MGIC Investment Corp.(b)      446,727   
  19,658       Mtge Investment Corp. REIT      335,169   
  684       National Western Life Group, Inc., Class A      147,334   
  333       Navigators Group, Inc. (The)      31,036   
  11,978       NBT Bancorp, Inc.      403,778   
  4,120       Nelnet, Inc., Class A      161,422   
  13,791       New Residential Investment Corp. REIT      192,522   
  13,184       Old National Bancorp      193,805   
  14,756       On Deck Capital, Inc.(b)(c)      72,157   
  11,532       OneBeacon Insurance Group Ltd., Class A      158,450   
  8,475       Oppenheimer Holdings, Inc., Class A      118,650   
  450       Park National Corp.      43,619   
  10,420       Peapack-Gladstone Financial Corp.      220,383   
  17,054       PennyMac Financial Services, Inc., Class A(b)      291,623   
  4,406       Peoples Bancorp, Inc.      109,137   
  22,334       PHH Corp.(b)      324,290   
  4,869       Prosperity Bancshares, Inc.      270,083   
  6,530       Radian Group, Inc.      88,743   
  1,585       Redwood Trust, Inc. REIT      22,285   
  11,435       Republic Bancorp, Inc., Class A      361,803   
  3,578       Resource Capital Corp. REIT      44,331   
  7,150       S&T Bancorp, Inc.      224,439   
  276       Safety Insurance Group, Inc.      18,685   
  5,878       Sandy Spring Bancorp, Inc.      186,333   
  3,632       Selective Insurance Group, Inc.      134,202   
  12,888       Sierra Bancorp      230,180   
  13,457       Southwest Bancorp, Inc.      250,973   
  6,604       Stewart Information Services Corp.      296,850   
  7,286       Territorial Bancorp, Inc.      207,797   
  4,479       TowneBank      111,079   
  8,755       TriCo Bancshares      230,432   
  15,869       TrustCo Bank Corp. NY      111,083   
  7,704       Trustmark Corp.      213,247   
  5,580       Umpqua Holdings Corp.      85,262   
  7,547       Union Bankshares Corp.      210,788   
  5,704       United Bankshares, Inc.      215,041   
  1,784       United Community Banks, Inc.      38,481   
  8,985       Univest Corp. of Pennsylvania      213,394   
  13,773       Washington Federal, Inc.      375,314   
  1,585       Washington Trust Bancorp, Inc.      72,752   
  1,041       Webster Financial Corp.      42,056   
  8,922       WesBanco, Inc.      293,623   
  34,134       Western Asset Mortgage Capital Corp. REIT      345,777   
  1,721       Wintrust Financial Corp.      92,848   
     

 

 

  
        23,680,464   
     

 

 

  
   Health Care—2.5%   
  12,653       AngioDynamics, Inc.(b)      201,689   
  28,071       Chimerix, Inc.(b)      113,687   
  23,377       Community Health Systems, Inc.(b)(c)      123,431   
  6,738       Enanta Pharmaceuticals, Inc.(b)      158,478   
  3,297       Halyard Health, Inc.(b)      106,658   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Health Care (continued)   
  15,953       Invacare Corp.    $ 145,970   
  32,883       Kindred Healthcare, Inc.      323,898   
  828       PharMerica Corp.(b)      19,706   
  30,745       Tetraphase Pharmaceuticals, Inc.(b)      107,607   
  31,297       Zogenix, Inc.(b)(c)      255,071   
     

 

 

  
        1,556,195   
     

 

 

  
   Industrials—8.6%   
  10,113       AAR Corp.      325,335   
  3,276       Acacia Research Corp.      19,165   
  5,716       ACCO Brands Corp.(b)      63,448   
  61,957       ARC Document Solutions, Inc.(b)      212,512   
  1,923       ArcBest Corp.      38,268   
  837       Atlas Air Worldwide Holdings, Inc.(b)      35,028   
  89       Barnes Group, Inc.      3,546   
  1,296       CBIZ, Inc.(b)      14,321   
  2,083       Celadon Group, Inc.      13,539   
  21,055       Columbus McKinnon Corp.      410,362   
  20,852       Costamare, Inc. (Greece)(c)      135,538   
  1,740       Covenant Transportation Group, Inc., Class A(b)      27,823   
  4,813       DigitalGlobe, Inc.(b)      120,806   
  7,122       Dynamic Materials Corp.      77,274   
  15,556       Engility Holdings, Inc.(b)      446,924   
  4,032       Ennis, Inc.      59,069   
  495       Esterline Technologies Corp.(b)      36,358   
  1,436       GATX Corp.(c)      62,854   
  25,518       Hardinge, Inc.      247,525   
  6,967       Harsco Corp.      67,928   
  20,937       Joy Global, Inc.      582,677   
  5,034       Kennametal, Inc.      142,512   
  50,882       Kratos Defense & Security Solutions, Inc.(b)      285,957   
  63,971       Manitowoc Co., Inc. (The)      258,443   
  14,303       MRC Global, Inc.(b)      210,826   
  7,558       Powell Industries, Inc.      267,478   
  2,759       Saia, Inc.(b)      98,358   
  8,261       SPX FLOW, Inc.(b)      207,268   
  29,035       Sunrun, Inc.(b)(c)      151,272   
  29,247       Titan International, Inc.      298,027   
  16,886       Titan Machinery, Inc.(b)      156,871   
  9,391       TriMas Corp.(b)      168,568   
  4,824       Triton International Ltd. (Bermuda)      58,226   
     

 

 

  
        5,304,106   
     

 

 

  
   Information Technology—7.7%   
  1,009       Actua Corp.(b)      11,755   
  2,508       Alpha & Omega Semiconductor Ltd.(b)      52,994   
  19,088       AVX Corp.      267,614   
  40,764       Bankrate, Inc.(b)      317,959   
  12,327       Black Box Corp.      141,760   
  8,079       Cohu, Inc.      90,404   
  4,617       Comtech Telecommunications Corp.      48,017   
  10,714       Electro Scientific Industries, Inc.(b)      55,499   
  13,188       Glu Mobile, Inc.(b)(c)      26,112   
  15,065       Kopin Corp.(b)      31,486   
  49,467       Liquidity Services, Inc.(b)      437,783   
  7,075       ManTech International Corp., Class A      274,722   
  75,409       Marchex, Inc., Class B(b)      190,031   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   32  

 

 

PowerShares Russell 2000 Pure Value Portfolio (PXSV) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Information Technology (continued)   
  1,327       Maxwell Technologies, Inc.(b)    $ 6,423   
  4,389       MoneyGram International, Inc.(b)      30,767   
  135,779       Monster Worldwide, Inc.(b)      463,006   
  14,275       NCI, Inc., Class A      167,731   
  24,323       Photronics, Inc.(b)      235,933   
  17,002       QAD, Inc., Class A      408,898   
  54,691       RetailMeNot, Inc.(b)      494,954   
  3,926       Rofin-Sinar Technologies, Inc.(b)      127,791   
  9,177       Sanmina Corp.(b)      253,744   
  4,048       TTM Technologies, Inc.(b)      53,231   
  21,881       Veeco Instruments, Inc.(b)      474,818   
  10,759       Viavi Solutions, Inc.(b)      76,604   
     

 

 

  
        4,740,036   
     

 

 

  
   Materials—5.1%   
  26,833       AgroFresh Solutions, Inc.(b)      126,115   
  26,670       AK Steel Holding Corp.(b)(c)      138,684   
  12,445       Allegheny Technologies, Inc.(c)      169,750   
  9,202       Ampco-Pittsburgh Corp.      99,382   
  7,003       Carpenter Technology Corp.      221,365   
  16,672       Commercial Metals Co.      261,917   
  42,263       Ferroglobal PLC      390,933   
  910       Greif, Inc., Class A      42,643   
  12,668       Haynes International, Inc.      407,530   
  3,370       Hecla Mining Co.      20,186   
  3,389       LSB Industries, Inc.(b)(c)      17,928   
  14,719       Materion Corp.      445,986   
  2,514       Olympic Steel, Inc.      58,048   
  6,879       Stillwater Mining Co.(b)      91,628   
  40,554       SunCoke Energy, Inc.      414,056   
  69,955       TerraVia Holdings, Inc.(b)(c)      164,394   
  8,034       TimkenSteel Corp.(b)      82,348   
     

 

 

  
        3,152,893   
     

 

 

  
   Real Estate—8.6%   
  3,965       Agree Realty Corp. REIT      191,708   
  11,104       Ashford Hospitality Prime, Inc. REIT      143,908   
  76,426       Ashford Hospitality Trust, Inc. REIT      444,035   
  15,386       Bluerock Residential Growth REIT, Inc., Class A REIT      190,786   
  19,994       CatchMark Timber Trust, Inc., Class A REIT      210,737   
  9,279       Cedar Realty Trust, Inc. REIT      62,819   
  6,420       Colony Starwood Homes REIT      186,244   
  28,400       Cousins Properties, Inc. REIT      220,668   
  28,723       First Potomac Realty Trust REIT      256,209   
  937       Getty Realty Corp. REIT      21,298   
  7,168       Gladstone Commercial Corp. REIT      127,949   
  5,773       Global NET Lease, Inc. REIT(c)      42,778   
  6,380       Government Properties Income Trust REIT(c)      122,113   
  48,533       Independence Realty Trust, Inc. REIT      404,280   
  13,220       InfraREIT, Inc. REIT      219,716   
  19,186       Investors Real Estate Trust REIT      116,459   
  2,846       Kite Realty Group Trust REIT      70,951   
  5,227       LaSalle Hotel Properties REIT      124,141   
  17,540       Lexington Realty Trust REIT      177,856   
  7,848       Mack-Cali Realty Corp. REIT      201,537   
  1,270       New York REIT, Inc. REIT      11,963   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Real Estate (continued)   
  5,673       NorthStar Realty Europe Corp. REIT    $ 56,106   
  3,549       Parkway, Inc. REIT(b)      63,953   
  101,730       RAIT Financial Trust REIT      310,276   
  12,577       Ramco-Gershenson Properties Trust REIT      218,085   
  4,858       RE/MAX Holdings, Inc., Class A      211,080   
  2,453       Select Income REIT      60,687   
  5,934       Silver Bay Realty Trust Corp. REIT      99,395   
  7,921       Summit Hotel Properties, Inc. REIT      102,894   
  29,905       Sunstone Hotel Investors, Inc. REIT      375,607   
  833       Tejon Ranch Co.(b)      18,609   
  13,088       Tier REIT, Inc. REIT      193,048   
     

 

 

  
        5,257,895   
     

 

 

  
   Telecommunication Services—1.4%   
  45,144       Iridium Communications, Inc.(b)(c)      367,924   
  26,440       Leap Wireless Corp.(b)      66,629   
  59,525       NII Holdings, Inc.(b)      145,836   
  16,409       Spok Holdings, Inc.      296,182   
     

 

 

  
        876,571   
     

 

 

  
   Utilities—3.9%   
  731       ALLETE, Inc.      44,803   
  72,315       Atlantic Power Corp.      166,324   
  7,555       Avista Corp.      312,777   
  5,430       Consolidated Water Co. Ltd. (Cayman Islands)      60,816   
  20,806       Dynegy, Inc.(b)      221,584   
  1,161       Northwest Natural Gas Co.      68,267   
  1,605       NorthWestern Corp.      92,368   
  569       NRG Yield, Inc., Class C      8,763   
  2,472       Otter Tail Corp.      88,868   
  4,346       PNM Resources, Inc.      142,766   
  597       Portland General Electric Co.      26,053   
  5,910       South Jersey Industries, Inc.      175,232   
  4,234       Spire, Inc.      265,895   
  25,766       Talen Energy Corp.(b)      358,920   
  34,567       TerraForm Global, Inc., Class A(c)      129,626   
  11,087       TerraForm Power, Inc., Class A(b)(c)      137,590   
  26,500       Vivint Solar, Inc.(b)(c)      82,150   
     

 

 

  
        2,382,802   
     

 

 

  
   Total Common Stocks and Other Equity Interests
(Cost $61,341,475)		      61,591,989   
     

 

 

  
     
   Money Market Fund—0.1%   
  66,290       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(e)
(Cost $66,290)		      66,290   
     

 

 

  
   Total Investments
(excluding investments purchased with cash collateral from securities on loan)
(Cost $61,407,765)—100.1%		      61,658,279   
     

 

 

  
     
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   33  

 

 

PowerShares Russell 2000 Pure Value Portfolio (PXSV) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Investments Purchased with Cash Collateral from Securities on Loan    
     
   Money Market Fund—6.5%   
  4,030,820       Invesco Government & Agency Portfolio—Institutional Class, 0.29%(e)(f)
(Cost $4,030,820)		    $ 4,030,820   
     

 

 

  
   Total Investments
(Cost $65,438,585)—106.6%		      65,689,099   
   Other assets less liabilities—(6.6)%      (4,089,649 ) 
     

 

 

  
   Net Assets—100.0%    $ 61,599,450   
     

 

 

  

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  Non-income producing security.
(c)  All or a portion of this security was out on loan at October 31, 2016.
(d)  Affiliated company. The Fund’s Adviser and Invesco Mortgage Capital, Inc. REIT are wholly-owned subsidiaries of Invesco Ltd. and therefore, Invesco Ltd. and Invesco Mortgage Capital, Inc. REIT are considered to be affiliated with the Fund. See Note 4.
(e)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
(f)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2H.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   34  

 

 

PowerShares Russell Midcap Equal Weight Portfolio (EQWM)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sector Breakdown
(% of the Fund’s Net Assets) 
as of October 31, 2016		  
Information Technology      13.4   
Industrials      13.2   
Consumer Staples      11.7   
Energy      10.8   
Health Care      10.5   
Consumer Discretionary      10.4   
Utilities      8.9   
Materials      8.9   
Financials      6.0   
Real Estate      4.1   
Telecommunication Services      2.1   
Money Market Funds Plus Other Assets Less Liabilities      0.0   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests—100.0%    
   Consumer Discretionary—10.4%   
  59       Adient PLC(b)    $ 2,685   
  133       Advance Auto Parts, Inc.      18,631   
  394       AMC Networks, Inc., Class A(b)      19,278   
  532       Aramark      19,806   
  421       AutoNation, Inc.(b)      18,469   
  26       AutoZone, Inc.(b)      19,296   
  476       Bed Bath & Beyond, Inc.      19,240   
  524       Best Buy Co., Inc.      20,389   
  581       BorgWarner, Inc.      20,823   
  383       Brinker International, Inc.      18,859   
  406       Brunswick Corp.      17,661   
  240       Burlington Stores, Inc.(b)      17,986   
  383       Cabela’s, Inc.(b)      23,597   
  35       Cable One, Inc.      20,186   
  587       CalAtlantic Group, Inc.      18,972   
  373       CarMax, Inc.(b)      18,628   
  223       Carter’s, Inc.      19,254   
  48       Chipotle Mexican Grill, Inc.(b)      17,316   
  445       Choice Hotels International, Inc.      21,560   
  525       Cinemark Holdings, Inc.      20,895   
  3,314       Clear Channel Outdoor Holdings, Inc., Class A      19,055   
  562       Coach, Inc.      20,170   
  418       CST Brands, Inc.      20,072   
  668       D.R. Horton, Inc.      19,258   
  326       Darden Restaurants, Inc.      21,122   
  293       Delphi Automotive PLC (United Kingdom)      19,066   
  332       Dick’s Sporting Goods, Inc.      18,476   
  344       Dillard’s, Inc., Class A      21,087   
  760       Discovery Communications, Inc., Class A(b)      19,844   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Consumer Discretionary (continued)   
  280       Dollar General Corp.    $ 19,345   
  249       Dollar Tree, Inc.(b)      18,812   
  131       Domino’s Pizza, Inc.      22,170   
  399       Dunkin’ Brands Group, Inc.      19,296   
  177       Expedia, Inc., Class A      22,874   
  1,413       Extended Stay America, Inc.      20,206   
  295       Foot Locker, Inc.      19,697   
  731       GameStop Corp., Class A      17,581   
  900       Gap, Inc. (The)      24,831   
  409       Garmin Ltd.      19,779   
  1,146       Gentex Corp.      19,379   
  200       Genuine Parts Co.      18,118   
  629       Goodyear Tire & Rubber Co. (The)      18,260   
  41       Graham Holdings Co., Class B      19,475   
  5,729       Groupon, Inc., Class A(b)      22,859   
  881       H&R Block, Inc.      20,237   
  781       Hanesbrands, Inc.      20,072   
  385       Harley—Davidson, Inc.      21,953   
  241       Harman International Industries, Inc.      19,210   
  251       Hasbro, Inc.      20,936   
  870       Hilton Worldwide Holdings, Inc.      19,662   
  412       Hyatt Hotels Corp., Class A(b)      20,925   
  811       International Game Technology PLC      23,292   
  903       Interpublic Group of Cos., Inc. (The)      20,218   
  2,100       J.C. Penney Co., Inc.(b)      18,039   
  402       John Wiley & Sons, Inc., Class A      20,743   
  1,110       Kate Spade & Co.(b)      18,592   
  470       Kohl’s Corp.      20,562   
  275       L Brands, Inc.      19,852   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   35  

 

 

PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Consumer Discretionary (continued)   
  169       Lear Corp.    $ 20,750   
  415       Leggett & Platt, Inc.      19,040   
  469       Lennar Corp., Class A      19,553   
  275       Liberty Broadband Corp., Class C(b)      18,329   
  1,001       Liberty Interactive Corp. QVC Group, Series A(b)      18,508   
  604       Liberty Media Corp.-Liberty SiriusXM, Class C(b)      20,047   
  506       Liberty Ventures, Series A(b)      20,189   
  982       Lions Gate Entertainment Corp.      19,994   
  730       Live Nation Entertainment, Inc.(b)      20,199   
  566       LKQ Corp.(b)      18,270   
  311       Lululemon Athletica, Inc.(b)      17,805   
  548       Macy’s, Inc.      19,997   
  118       Madison Square Garden Co. (The), Class A(b)      19,528   
  299       Marriott International, Inc., Class A      20,541   
  639       Mattel, Inc.      20,148   
  784       MGM Resorts International(b)      20,517   
  416       Michael Kors Holdings Ltd.(b)      21,124   
  830       Michaels Cos., Inc. (The)(b)      19,297   
  99       Mohawk Industries, Inc.(b)      18,246   
  274       Murphy USA, Inc.(b)      18,846   
  383       Newell Brands, Inc.      18,392   
  1,436       News Corp., Class A      17,404   
  388       Nordstrom, Inc.      20,176   
  532       Norwegian Cruise Line Holdings Ltd.(b)      20,679   
  12       NVR, Inc.(b)      18,276   
  236       Omnicom Group, Inc.      18,838   
  74       O’Reilly Automotive, Inc.(b)      19,569   
  104       Panera Bread Co., Class A(b)      19,839   
  413       Penske Automotive Group, Inc.      18,482   
  267       Polaris Industries, Inc.      20,455   
  210       Pool Corp.      19,442   
  1,008       PulteGroup, Inc.      18,749   
  189       PVH Corp.      20,219   
  205       Ralph Lauren Corp., Class A      20,111   
  928       Regal Entertainment Group, Class A      19,961   
  311       Ross Stores, Inc.      19,450   
  270       Royal Caribbean Cruises Ltd.      20,755   
  712       Sally Beauty Holdings, Inc.(b)      18,469   
  323       Scripps Networks Interactive, Inc., Class A      20,788   
  750       Service Corp. International      19,200   
  589       ServiceMaster Global Holdings, Inc.(b)      21,080   
  268       Signet Jewelers Ltd.      21,778   
  4,820       Sirius XM Holdings, Inc.(b)      20,099   
  371       Six Flags Entertainment Corp.      20,646   
  905       Skechers U.S.A., Inc., Class A(b)      19,032   
  2,399       Staples, Inc.      17,753   
  639       Starz, Class A(b)      20,103   
  942       TEGNA, Inc.      18,482   
  269       Tempur Sealy International, Inc.(b)      14,545   
  234       Thor Industries, Inc.      18,559   
  280       Tiffany & Co.      20,558   
  684       Toll Brothers, Inc.(b)      18,769   
  291       Tractor Supply Co.      18,225   
  566       Tribune Media Co., Class A      18,452   
  312       TripAdvisor, Inc., Class A(b)      20,118   
  312       Tupperware Brands Corp.      18,570   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Consumer Discretionary (continued)   
  82       Ulta Salon, Cosmetics & Fragrance, Inc.(b)    $ 19,954   
  512       Under Armour, Inc., Class A(b)(c)      15,923   
  571       Urban Outfitters, Inc.(b)      19,100   
  129       Vail Resorts, Inc.      20,568   
  565       Viacom, Inc., Class B      21,221   
  505       Vista Outdoor, Inc.(b)      19,528   
  281       Visteon Corp.      19,841   
  1,855       Wendy’s Co. (The)      20,108   
  123       Whirlpool Corp.      18,428   
  397       Williams-Sonoma, Inc.      18,349   
  298       Wyndham Worldwide Corp.      19,620   
  199       Wynn Resorts Ltd.      18,815   
     

 

 

  
        2,457,062   
     

 

 

  
   Consumer Staples—11.7%   
  3,355       Blue Buffalo Pet Products, Inc.(b)      84,278   
  1,703       Brown-Forman Corp., Class B      78,628   
  1,353       Bunge Ltd.      83,900   
  1,470       Campbell Soup Co.      79,880   
  694       Casey’s General Stores, Inc.      78,415   
  1,675       Church & Dwight Co., Inc.      80,836   
  638       Clorox Co. (The)      76,573   
  1,854       ConAgra Foods, Inc.      89,326   
  855       Coty, Inc., Class A      19,656   
  886       Dr Pepper Snapple Group, Inc.      77,782   
  1,041       Edgewell Personal Care Co.(b)      78,491   
  1,716       Energizer Holdings, Inc.      79,811   
  5,307       Flowers Foods, Inc.      82,365   
  2,316       Hain Celestial Group, Inc. (The)(b)      84,233   
  1,312       Herbalife Ltd.(b)(c)      79,612   
  849       Hershey Co. (The)      86,989   
  2,100       Hormel Foods Corp.      80,850   
  618       Ingredion, Inc.      81,063   
  600       JM Smucker Co. (The)      78,786   
  1,037       Kellogg Co.      77,910   
  823       McCormick & Co., Inc.      78,901   
  1,045       Mead Johnson Nutrition Co.      78,135   
  747       Molson Coors Brewing Co., Class B      77,546   
  1,263       Nu Skin Enterprises, Inc., Class A      77,864   
  3,841       Pilgrim’s Pride Corp.      83,887   
  1,619       Pinnacle Foods, Inc.      83,249   
  1,019       Post Holdings, Inc.(b)      77,678   
  9,957       Rite Aid Corp.(b)      66,811   
  592       Spectrum Brands Holdings, Inc.      80,062   
  3,982       Sprouts Farmers Market, Inc.(b)      88,201   
  938       TreeHouse Foods, Inc.(b)      82,056   
  1,061       Tyson Foods, Inc., Class A      75,172   
  3,430       US Foods Holding Corp.(b)      77,518   
  1,464       WhiteWave Foods Co. (The)(b)      79,773   
  2,822       Whole Foods Market, Inc.      79,834   
     

 

 

  
        2,746,071   
     

 

 

  
   Energy—10.8%   
  1,868       Antero Resources Corp.(b)      49,446   
  1,024       Baker Hughes, Inc.      56,730   
  1,971       Cabot Oil & Gas Corp.      41,154   
  1,136       Cheniere Energy, Inc.(b)      42,827   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   36  

 

 

PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Energy (continued)   
  7,702       Chesapeake Energy Corp.(b)    $ 42,438   
  392       Cimarex Energy Co.      50,619   
  399       Concho Resources, Inc.(b)      50,649   
  2,625       CONSOL Energy, Inc.      44,494   
  1,106       Continental Resources, Inc.(b)      54,094   
  1,281       Devon Energy Corp.      48,537   
  2,997       Diamond Offshore Drilling, Inc.      49,421   
  555       Diamondback Energy, Inc.(b)      50,666   
  934       Dril-Quip, Inc.(b)      44,365   
  944       Energen Corp.      47,323   
  6,731       Ensco PLC, Class A      52,636   
  699       EQT Corp.      46,134   
  1,792       FMC Technologies, Inc.(b)      57,828   
  3,979       Frank’s International NV(c)      44,764   
  1,828       Gulfport Energy Corp.(b)      44,073   
  841       Helmerich & Payne, Inc.      53,076   
  1,025       Hess Corp.      49,169   
  2,015       HollyFrontier Corp.      50,274   
  8,462       Kosmos Energy Ltd.(b)      44,087   
  4,407       Laredo Petroleum, Inc.(b)      52,531   
  3,413       Marathon Oil Corp.      44,983   
  1,147       Marathon Petroleum Corp.      49,998   
  1,847       Murphy Oil Corp.      47,782   
  4,823       Nabors Industries Ltd.      57,394   
  1,435       National Oilwell Varco, Inc.      46,063   
  1,215       Newfield Exploration Co.(b)      49,317   
  8,740       Noble Corp. PLC (United Kingdom)      43,176   
  1,446       Noble Energy, Inc.      49,844   
  1,934       Oceaneering International, Inc.      46,029   
  983       ONEOK, Inc.      47,607   
  1,582       Parsley Energy, Inc., Class A(b)      52,048   
  2,605       Patterson-UTI Energy, Inc.      58,560   
  2,139       PBF Energy, Inc., Class A      46,630   
  2,702       QEP Resources, Inc.      43,421   
  1,298       Range Resources Corp.      43,859   
  1,919       Rice Energy, Inc.(b)      42,391   
  3,594       Rowan Cos. PLC, Class A      47,692   
  3,147       RPC, Inc.(b)      54,349   
  1,470       SM Energy Co.      49,436   
  3,654       Southwestern Energy Co.(b)      37,965   
  3,434       Superior Energy Services, Inc.      48,625   
  1,022       Targa Resources Corp.      44,866   
  579       Tesoro Corp.      49,198   
  5,094       Transocean Ltd.(b)      48,953   
  9,435       Weatherford International PLC(b)      45,477   
  6,792       Whiting Petroleum Corp.(b)      55,966   
  1,565       Williams Cos., Inc. (The)      45,698   
  1,048       World Fuel Services Corp.      42,182   
  4,151       WPX Energy, Inc.(b)      45,080   
     

 

 

  
        2,551,924   
     

 

 

  
   Financials—6.0%   
  93       Affiliated Managers Group, Inc.(b)      12,337   
  666       Agnc Investment Corp. REIT      13,360   
  25       Alleghany Corp.(b)      12,905   
  325       Allied World Assurance Co. Holdings AG      13,969   
  688       Ally Financial, Inc.      12,432   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials (continued)   
  178       American Financial Group, Inc.    $ 13,261   
  109       American National Insurance Co.      12,770   
  134       Ameriprise Financial, Inc.      11,844   
  504       AmTrust Financial Services, Inc.      13,301   
  1,210       Annaly Capital Management, Inc. REIT      12,536   
  164       Arch Capital Group Ltd. (Bermuda)(b)      12,787   
  259       Arthur J. Gallagher & Co.      12,492   
  492       Artisan Partners Asset Management, Inc., Class A      12,792   
  285       Aspen Insurance Holdings Ltd. (Bermuda)      13,751   
  682       Associated Banc-Corp.      13,845   
  145       Assurant, Inc.      11,675   
  496       Assured Guaranty Ltd.      14,825   
  240       Axis Capital Holdings Ltd.      13,673   
  183       Bank of Hawaii Corp.      13,752   
  438       BankUnited, Inc.      12,763   
  196       BOK Financial Corp.      13,920   
  351       Brown & Brown, Inc.      12,938   
  197       CBOE Holdings, Inc.      12,452   
  791       Chimera Investment Corp. REIT      12,395   
  175       Cincinnati Financial Corp.      12,387   
  371       CIT Group, Inc.      13,478   
  542       Citizens Financial Group, Inc.      14,276   
  398       CNA Financial Corp.      14,555   
  284       Comerica, Inc.      14,794   
  271       Commerce Bancshares, Inc.      13,501   
  68       Credit Acceptance Corp.(b)      12,519   
  190       Cullen/Frost Bankers, Inc.      14,438   
  520       Donnelley Financial Solutions, Inc.(b)      11,154   
  469       E*TRADE Financial Corp.(b)      13,207   
  365       East West Bancorp, Inc.      14,421   
  341       Eaton Vance Corp.      11,955   
  201       Endurance Specialty Holdings Ltd.      18,482   
  129       Erie Indemnity Co., Class A      13,208   
  69       Everest Re Group Ltd.      14,043   
  80       FactSet Research Systems, Inc.      12,378   
  442       Federated Investors, Inc., Class B      11,934   
  636       Fifth Third Bancorp      13,839   
  330       First American Financial Corp.      12,890   
  491       First Hawaiian, Inc.(b)      13,394   
  881       First Horizon National Corp.      13,576   
  170       First Republic Bank      12,653   
  354       FNF Group      12,712   
  175       Hanover Insurance Group, Inc. (The)      13,333   
  308       Hartford Financial Services Group, Inc. (The)      13,586   
  1,352       Huntington Bancshares, Inc.      14,331   
  372       Interactive Brokers Group, Inc., Class A      12,347   
  429       Invesco Ltd.(d)      12,051   
  1,084       KeyCorp      15,306   
  366       Lazard Ltd., Class A      13,344   
  395       Legg Mason, Inc.      11,344   
  702       Leucadia National Corp.      13,106   
  286       Lincoln National Corp.      14,040   
  326       Loews Corp.      14,028   
  455       LPL Financial Holdings, Inc.      14,087   
  114       M&T Bank Corp.      13,991   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   37  

 

 

PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials (continued)   
  15       Markel Corp.(b)    $ 13,161   
  77       MarketAxess Holdings, Inc.      11,609   
  239       Mercury General Corp.      13,018   
  1,752       MFA Financial, Inc. REIT      12,807   
  120       Moody’s Corp.      12,062   
  167       Morningstar, Inc.      11,795   
  154       MSCI, Inc.      12,349   
  192       Nasdaq, Inc.      12,282   
  909       Navient Corp.      11,617   
  908       New York Community Bancorp, Inc.      13,039   
  195       Northern Trust Corp.      14,122   
  1,040       NorthStar Asset Management Group, Inc.      14,248   
  738       Old Republic International Corp.      12,443   
  423       OneMain Holdings, Inc.(b)      11,988   
  310       PacWest Bancorp      13,451   
  841       People’s United Financial, Inc.      13,658   
  344       Popular, Inc.      12,487   
  261       Principal Financial Group, Inc.      14,251   
  253       ProAssurance Corp.      13,485   
  419       Progressive Corp. (The)      13,203   
  231       Raymond James Financial, Inc.      13,888   
  1,356       Regions Financial Corp.      14,523   
  122       Reinsurance Group of America, Inc.      13,159   
  109       RenaissanceRe Holdings Ltd. (Bermuda)      13,548   
  1,099       Santander Consumer USA Holdings, Inc.(b)      13,408   
  286       SEI Investments Co.      12,678   
  114       Signature Bank(b)      13,744   
  1,770       SLM Corp.(b)      12,479   
  570       Starwood Property Trust, Inc. REIT      12,677   
  304       SunTrust Banks, Inc.      13,750   
  123       SVB Financial Group(b)      15,039   
  474       Synchrony Financial      13,552   
  413       Synovus Financial Corp.      13,658   
  201       T. Rowe Price Group, Inc.      12,866   
  926       TCF Financial Corp.      13,242   
  404       TD Ameritrade Holding Corp.      13,821   
  735       TFS Financial Corp.      13,098   
  207       Torchmark Corp.      13,126   
  1,485       Two Harbors Investment Corp. REIT      12,370   
  378       Unum Group      13,381   
  264       Validus Holdings Ltd.      13,490   
  464       Voya Financial, Inc.      14,175   
  228       W.R. Berkley Corp.      13,019   
  356       Western Alliance Bancorp(b)      13,300   
  16       White Mountains Insurance Group Ltd.      13,276   
  390       XL Group Ltd. (Ireland)      13,533   
  433       Zions Bancorporation      13,947   
     

 

 

  
        1,417,285   
     

 

 

  
   Health Care—10.5%   
  297       ABIOMED, Inc.(b)      31,182   
  797       Acadia Healthcare Co., Inc.(b)      28,660   
  1,090       ACADIA Pharmaceuticals, Inc.(b)      25,408   
  822       Agilent Technologies, Inc.      35,815   
  704       Agios Pharmaceuticals, Inc.(b)      33,679   
  1,382       Akorn, Inc.(b)      33,099   
  881       Alere, Inc.(b)      39,363   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Health Care (continued)   
  406       Align Technology, Inc.(b)    $ 34,884   
  771       Alkermes PLC(b)      38,866   
  2,937       Allscripts Healthcare Solutions, Inc.(b)      35,273   
  492       Alnylam Pharmaceuticals, Inc.(b)      17,515   
  461       AmerisourceBergen Corp.      32,418   
  587       AmSurg Corp.(b)      35,073   
  310       athenahealth, Inc.(b)      32,029   
  396       BioMarin Pharmaceutical, Inc.(b)      31,886   
  243       Bio-Rad Laboratories, Inc., Class A(b)      38,413   
  351       Bio-Techne Corp.      36,500   
  2,214       Brookdale Senior Living, Inc.(b)      31,948   
  1,696       Bruker Corp.      34,751   
  168       C.R. Bard, Inc.      36,402   
  556       Centene Corp.(b)      34,739   
  618       Cerner Corp.(b)      36,202   
  457       Charles River Laboratories International, Inc.(b)      34,677   
  215       Cooper Cos., Inc. (The)      37,849   
  579       DaVita, Inc.(b)      33,941   
  645       DENTSPLY Sirona, Inc.      37,133   
  410       DexCom, Inc.(b)      32,078   
  317       Edwards Lifesciences Corp.(b)      30,185   
  1,704       Endo International PLC(b)      31,950   
  1,771       Envision Healthcare Holdings, Inc.(b)      35,030   
  234       Henry Schein, Inc.(b)      34,913   
  627       Hill-Rom Holdings, Inc.      34,742   
  990       Hologic, Inc.(b)      35,650   
  339       IDEXX Laboratories, Inc.(b)      36,320   
  213       Illumina, Inc.(b)      28,998   
  431       Incyte Corp.(b)      37,484   
  2,093       Inovalon Holdings, Inc., Class A(b)      28,465   
  223       Intercept Pharmaceuticals, Inc.(b)      27,594   
  1,398       Intrexon Corp.(b)      36,488   
  54       Intuitive Surgical, Inc.(b)      36,292   
  1,045       Ionis Pharmaceuticals, Inc.(b)      27,149   
  1,149       Juno Therapeutics, Inc.(b)(c)      27,909   
  279       Laboratory Corp. of America Holdings(b)      34,970   
  657       LifePoint Health, Inc.(b)      39,321   
  539       Mallinckrodt PLC(b)      31,941   
  590       MEDNAX, Inc.(b)      36,138   
  67       Mettler-Toledo International, Inc.(b)      27,073   
  719       Neurocrine Biosciences, Inc.(b)      31,471   
  3,430       OPKO Health, Inc.(b)(c)      32,311   
  1,289       Patheon NV(b)      32,728   
  836       Patterson Cos., Inc.      35,706   
  685       PerkinElmer, Inc.      34,860   
  397       Perrigo Co. PLC      33,026   
  1,196       Premier, Inc., Class A(b)      38,081   
  1,415       QIAGEN NV(b)      34,498   
  452       Quest Diagnostics, Inc.      36,811   
  482       Quintiles IMS Holdings, Inc.(b)      34,579   
  595       ResMed, Inc.      35,563   
  679       Seattle Genetics, Inc.(b)      35,104   
  480       St. Jude Medical, Inc.      37,363   
  228       Teleflex, Inc.      32,634   
  1,771       Tenet Healthcare Corp.(b)      34,906   
  315       United Therapeutics Corp.(b)      37,822   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   38  

 

 

PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Health Care (continued)   
  315       Universal Health Services, Inc., Class B    $ 38,024   
  388       Varian Medical Systems, Inc.(b)      35,203   
  572       VCA, Inc.(b)      35,155   
  927       Veeva Systems, Inc., Class A(b)      36,014   
  1,362       VWR Corp.(b)      37,469   
  167       Waters Corp.(b)      23,236   
  330       WellCare Health Plans, Inc.(b)      37,458   
  522       West Pharmaceutical Services, Inc.      39,688   
  300       Zimmer Biomet Holdings, Inc.      31,620   
  740       Zoetis, Inc.      35,372   
     

 

 

  
        2,475,097   
     

 

 

  
   Industrials—13.2%   
  540       A.O. Smith Corp.      24,392   
  177       Acuity Brands, Inc.      39,572   
  920       AECOM(b)      25,622   
  568       AGCO Corp.      29,013   
  966       Air Lease Corp.      29,231   
  403       Alaska Air Group, Inc.      29,105   
  386       Allegion PLC      24,642   
  959       Allison Transmission Holdings, Inc.      28,089   
  64       AMERCO      20,633   
  739       American Airlines Group, Inc.      30,003   
  559       AMETEK, Inc.      24,652   
  1,600       Arconic, Inc.      45,952   
  1,130       Armstrong World Industries, Inc.(b)      42,375   
  561       Avis Budget Group, Inc.(b)      18,154   
  527       B/E Aerospace, Inc.      31,367   
  682       BWX Technologies, Inc.      26,748   
  379       C.H. Robinson Worldwide, Inc.      25,817   
  261       Carlisle Cos., Inc.      27,366   
  992       Chicago Bridge & Iron Co. NV      31,764   
  235       Cintas Corp.      25,067   
  573       Clean Harbors, Inc.(b)      27,114   
  915       Colfax Corp.(b)      29,088   
  309       Copa Holdings SA, Class A (Panama)      28,499   
  492       Copart, Inc.(b)      25,815   
  1,747       Covanta Holding Corp.      26,205   
  428       Crane Co.      29,108   
  221       Cummins, Inc.      28,248   
  720       Donaldson Co., Inc.      26,294   
  383       Dover Corp.      25,619   
  98       Dun & Bradstreet Corp. (The)      12,235   
  99       Equifax, Inc.      12,273   
  517       Expeditors International of Washington, Inc.      26,610   
  1,147       Fastenal Co.      44,710   
  581       Flowserve Corp.      24,605   
  540       Fluor Corp.      28,075   
  340       Fortune Brands Home & Security, Inc.      18,574   
  402       Genesee & Wyoming, Inc., Class A(b)      27,312   
  363       Graco, Inc.      27,189   
  849       HD Supply Holdings, Inc.(b)      28,017   
  385       HEICO Corp.      26,011   
  829       Herc Holdings, Inc.(b)      24,945   
  483       Hertz Global Holdings, Inc.(b)      16,011   
  1,061       Hexcel Corp.      48,265   
  249       Hubbell, Inc.      26,025   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Industrials (continued)   
  173       Huntington Ingalls Industries, Inc.    $ 27,915   
  289       IDEX Corp.      24,981   
  695       Ingersoll-Rand PLC      46,767   
  767       ITT, Inc.      27,014   
  338       J.B. Hunt Transport Services, Inc.      27,584   
  524       Jacobs Engineering Group, Inc.(b)      27,028   
  1,535       JetBlue Airways Corp.(b)      26,832   
  591       Johnson Controls International PLC      23,829   
  290       Kansas City Southern      25,450   
  464       KAR Auction Services, Inc.      19,757   
  1,850       KBR, Inc.      27,398   
  449       Kirby Corp.(b)      26,469   
  174       L-3 Communications Holdings, Inc.      23,828   
  404       Landstar System, Inc.      28,745   
  294       Lennox International, Inc.      42,892   
  429       Lincoln Electric Holdings, Inc.      28,241   
  782       LSC Communications, Inc.(b)      18,956   
  320       Macquarie Infrastructure Corp.      26,179   
  1,630       Manitowoc Foodservice, Inc.(b)      24,629   
  377       ManpowerGroup, Inc.      28,954   
  1,330       Masco Corp.      41,070   
  213       Middleby Corp. (The)(b)      23,879   
  372       MSC Industrial Direct Co., Inc., Class A      27,082   
  375       Nielsen Holdings PLC      16,883   
  269       Nordson Corp.      26,935   
  397       Old Dominion Freight Line, Inc.(b)      29,648   
  347       Orbital ATK, Inc.      25,803   
  498       Oshkosh Corp.      26,643   
  860       Owens Corning      41,951   
  464       PACCAR, Inc.      25,483   
  217       Parker-Hannifin Corp.      26,637   
  433       Pentair PLC (United Kingdom)      23,871   
  1,506       Pitney Bowes, Inc.      26,867   
  990       Quanta Services, Inc.(b)      28,462   
  463       Regal Beloit Corp.      27,363   
  524       Republic Services, Inc.      27,578   
  698       Robert Half International, Inc.      26,119   
  230       Rockwell Automation, Inc.      27,536   
  312       Rockwell Collins, Inc.      26,308   
  924       Rollins, Inc.      28,478   
  148       Roper Technologies, Inc.      25,650   
  1,023       RR Donnelley & Sons Co.      18,158   
  415       Ryder System, Inc.      28,797   
  176       Snap-on, Inc.      27,122   
  2,400       SolarCity Corp.(b)(c)      47,040   
  603       Spirit AeroSystems Holdings, Inc., Class A(b)      30,367   
  634       Spirit Airlines, Inc.(b)      30,388   
  218       Stanley Black & Decker, Inc.      24,817   
  331       Stericycle, Inc.(b)      26,510   
  1,131       Terex Corp.      27,008   
  672       Textron, Inc.      26,934   
  1,370       Timken Co. (The)      45,278   
  563       Toro Co. (The)      26,956   
  92       TransDigm Group, Inc.      25,066   
  394       TransUnion(b)      12,309   
  1,116       Trinity Industries, Inc.      23,827   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   39  

 

 

PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Industrials (continued)   
  528       United Continental Holdings, Inc.(b)    $ 29,689   
  363       United Rentals, Inc.(b)      27,465   
  1,782       USG Corp.(b)      44,871   
  356       Valmont Industries, Inc.      45,550   
  327       Verisk Analytics, Inc.(b)      26,667   
  122       W.W. Grainger, Inc.      25,391   
  183       WABCO Holdings, Inc.(b)      18,018   
  340       Wabtec Corp.      26,285   
  333       Watsco, Inc.      45,718   
  454       WESCO International, Inc.(b)      24,607   
  511       Xylem, Inc.      24,697   
     

 

 

  
        3,109,640   
     

 

 

  
   Information Technology—13.4%   
  580       Akamai Technologies, Inc.(b)      40,293   
  62       Alliance Data Systems Corp.      12,677   
  526       Amdocs Ltd.      30,745   
  473       Amphenol Corp., Class A      31,185   
  479       Analog Devices, Inc.      30,704   
  332       ANSYS, Inc.(b)      30,328   
  354       Arista Networks, Inc.(b)      30,001   
  1,075       ARRIS International PLC(b)      29,863   
  482       Arrow Electronics, Inc.(b)      29,460   
  1,025       Atlassian Corp. PLC, Class A (Australia)(b)      27,531   
  425       Autodesk, Inc.(b)      30,719   
  754       Avnet, Inc.      31,630   
  760       Black Knight Financial Services, Inc., Class A(b)      29,906   
  843       Booz Allen Hamilton Holding Corp.      25,686   
  191       Broadridge Financial Solutions, Inc.      12,350   
  3,330       Brocade Communications Systems, Inc.      35,298   
  935       CA, Inc.      28,742   
  1,214       Cadence Design Systems, Inc.(b)      31,054   
  530       CDK Global, Inc.      28,943   
  669       CDW Corp.      30,045   
  358       Citrix Systems, Inc.(b)      30,358   
  585       Cognex Corp.      30,186   
  1,940       CommerceHub, Inc., Series C(b)      29,197   
  1,001       CommScope Holding, Inc.(b)      30,581   
  586       Computer Sciences Corp.      31,908   
  330       CoreLogic, Inc.(b)      14,045   
  121       CoStar Group, Inc.(b)      22,642   
  1,204       Cree, Inc.(b)      26,849   
  1,136       CSRA, Inc.      28,502   
  2,599       Cypress Semiconductor Corp.      25,912   
  562       Dolby Laboratories, Inc., Class A      26,746   
  259       DST Systems, Inc.      24,905   
  735       EchoStar Corp., Class A(b)      34,354   
  358       Electronic Arts, Inc.(b)      28,110   
  162       Euronet Worldwide, Inc.(b)      12,887   
  249       F5 Networks, Inc.(b)      34,414   
  169       Fidelity National Information Services, Inc.      12,492   
  2,066       FireEye, Inc.(b)      24,007   
  996       First Data Corp., Class A(b)      13,934   
  1,227       First Solar, Inc.(b)      49,681   
  131       Fiserv, Inc.(b)      12,901   
  1,213       Fitbit, Inc., Class A(b)(c)      16,084   
  77       FleetCor Technologies, Inc.(b)      13,498   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Information Technology (continued)   
  837       FLIR Systems, Inc.    $ 27,554   
  846       Fortinet, Inc.(b)      27,123   
  342       Gartner, Inc.(b)      29,426   
  1,137       Genpact Ltd.(b)      26,140   
  173       Global Payments, Inc.      12,546   
  890       GoDaddy, Inc., Class A(b)      31,853   
  508       Guidewire Software, Inc.(b)      29,185   
  333       Harris Corp.      29,707   
  488       IAC/InterActiveCorp.      31,447   
  886       Ingram Micro, Inc., Class A      32,959   
  368       IPG Photonics Corp.(b)      35,700   
  1,393       Jabil Circuit, Inc.      29,727   
  152       Jack Henry & Associates, Inc.      12,315   
  1,270       Juniper Networks, Inc.      33,452   
  854       Keysight Technologies, Inc.(b)      28,011   
  436       KLA-Tencor Corp.      32,748   
  330       Lam Research Corp.      31,964   
  700       Leidos Holdings, Inc.      29,099   
  772       Lexmark International, Inc., Class A      30,641   
  517       Linear Technology Corp.      31,051   
  159       LinkedIn Corp., Class A(b)      30,146   
  525       Manhattan Associates, Inc.(b)      26,586   
  2,333       Marvell Technology Group Ltd. (Bermuda)      30,399   
  1,726       Match Group, Inc., Class A(b)(c)      31,172   
  778       Maxim Integrated Products, Inc.      30,832   
  498       Microchip Technology, Inc.      30,154   
  1,696       Micron Technology, Inc.(b)      29,103   
  400       Motorola Solutions, Inc.      29,032   
  937       National Instruments Corp.      26,320   
  957       NCR Corp.(b)      33,543   
  864       NetApp, Inc.      29,324   
  278       NetSuite, Inc.(b)      25,887   
  2,104       Nuance Communications, Inc.(b)      29,498   
  459       NVIDIA Corp.      32,662   
  2,590       ON Semiconductor Corp.(b)      30,225   
  201       Palo Alto Networks, Inc.(b)      30,920   
  1,418       Pandora Media, Inc.(b)      16,066   
  441       Paychex, Inc.      24,343   
  689       PTC, Inc.(b)      32,686   
  559       Qorvo, Inc.(b)      31,108   
  967       Rackspace Hosting, Inc.(b)      30,886   
  386       Red Hat, Inc.(b)      29,896   
  1,108       Sabre Corp.      28,620   
  386       ServiceNow, Inc.(b)      33,933   
  413       Skyworks Solutions, Inc.      31,776   
  520       Splunk, Inc.(b)      31,299   
  1,118       Square, Inc., Class A(b)(c)      12,522   
  940       SS&C Technologies Holdings, Inc.      30,014   
  5,515       SunPower Corp.(b)      39,929   
  1,214       Symantec Corp.      30,386   
  512       Synopsys, Inc.(b)      30,367   
  557       Tableau Software, Inc., Class A(b)      26,764   
  1,004       Teradata Corp.(b)      27,068   
  1,442       Teradyne, Inc.      33,584   
  278       Total System Services, Inc.      13,867   
  944       Trimble, Inc.(b)      26,092   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   40  

 

 

PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Information Technology (continued)   
  448       Twilio, Inc., Class A(b)    $ 15,286   
  1,287       Twitter, Inc.(b)      23,102   
  178       Tyler Technologies, Inc.(b)      28,551   
  146       Ultimate Software Group, Inc.
(The)(b)		      30,805   
  234       Vantiv, Inc., Class A(b)      13,656   
  1,914       VeriFone Systems, Inc.(b)      29,629   
  388       VeriSign, Inc.(b)      32,600   
  519       Western Digital Corp.      30,330   
  650       Western Union Co. (The)      13,045   
  126       WEX, Inc.(b)      13,747   
  340       Workday, Inc., Class A(b)      29,471   
  2,652       Xerox Corp.      25,910   
  574       Xilinx, Inc.      29,199   
  733       Yelp, Inc., Class A(b)      23,940   
  386       Zebra Technologies Corp.,
Class A(b)		      25,414   
  369       Zillow Group, Inc., Class C(b)      12,310   
  10,602       Zynga, Inc., Class A(b)      29,792   
     

 

 

  
        3,167,797   
     

 

 

  
   Materials—8.9%   
  560       Albemarle Corp.      46,788   
  596       AptarGroup, Inc.      42,578   
  394       Ashland Global Holdings, Inc.      44,022   
  342       Avery Dennison Corp.      23,868   
  1,654       Axalta Coating Systems Ltd.(b)      41,548   
  582       Ball Corp.      44,855   
  916       Bemis Co., Inc.      44,628   
  1,014       Berry Plastics Group, Inc.(b)      44,362   
  886       Cabot Corp.      46,196   
  727       Celanese Corp., Series A      53,013   
  2,024       CF Industries Holdings, Inc.      48,596   
  639       Compass Minerals International, Inc.      45,912   
  827       Crown Holdings, Inc.(b)      44,865   
  1,269       Domtar Corp.      45,621   
  608       Eagle Materials, Inc.      49,230   
  707       Eastman Chemical Co.      50,840   
  958       FMC Corp.      44,921   
  4,537       Freeport-McMoRan, Inc.      50,724   
  3,343       Graphic Packaging Holding Co.      41,787   
  2,983       Huntsman Corp.      50,562   
  328       International Flavors & Fragrances, Inc.      42,896   
  975       International Paper Co.      43,904   
  259       Martin Marietta Materials, Inc.      48,013   
  1,931       Mosaic Co. (The)      45,436   
  113       NewMarket Corp.      45,303   
  1,204       Newmont Mining Corp.      44,596   
  944       Nucor Corp.      46,114   
  2,587       Owens-Illinois, Inc.(b)      49,929   
  574       Packaging Corp. of America      47,355   
  5,595       Platform Specialty Products Corp.(b)      40,788   
  643       Reliance Steel & Aluminum Co.      44,226   
  593       Royal Gold, Inc.      40,810   
  875       RPM International, Inc.      41,597   
  558       Scotts Miracle-Gro Co. (The), Class A      49,154   
  1,001       Sealed Air Corp.      45,676   
  925       Silgan Holdings, Inc.      47,129   
  877       Sonoco Products Co.      44,104   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Materials (continued)   
  1,801       Southern Copper Corp. (Peru)    $ 51,130   
  1,824       Steel Dynamics, Inc.      50,087   
  3,526       Tahoe Resources, Inc.      42,524   
  2,409       United States Steel Corp.(c)      46,590   
  436       Valspar Corp. (The)      43,426   
  406       Vulcan Materials Co.      45,959   
  632       W.R. Grace & Co.      42,319   
  919       Westlake Chemical Corp.      47,595   
  973       WestRock Co.      44,943   
     

 

 

  
        2,086,519   
     

 

 

  
   Real Estate—4.1%   
  117       Alexandria Real Estate Equities, Inc. REIT      12,614   
  257       American Campus Communities, Inc. REIT      13,392   
  609       American Homes 4 Rent, Class A REIT      12,856   
  279       Apartment Investment & Management Co., Class A REIT      12,296   
  711       Apple Hospitality REIT, Inc. REIT      12,819   
  72       AvalonBay Communities, Inc. REIT      12,325   
  95       Boston Properties, Inc. REIT      11,446   
  838       Brandywine Realty Trust REIT      12,989   
  462       Brixmor Property Group, Inc. REIT      11,744   
  152       Camden Property Trust REIT      12,379   
  459       Care Capital Properties, Inc. REIT      12,196   
  466       CBRE Group, Inc., Class A(b)      12,004   
  582       Columbia Property Trust, Inc. REIT      12,269   
  408       Communications Sales & Leasing, Inc. REIT      11,599   
  458       Corporate Office Properties Trust REIT      12,224   
  891       Corrections Corp. of America REIT      12,875   
  471       CubeSmart REIT      12,279   
  273       CyrusOne, Inc. REIT      12,179   
  269       DCT Industrial Trust, Inc. REIT      12,576   
  745       DDR Corp. REIT      11,391   
  136       Digital Realty Trust, Inc. REIT      12,706   
  353       Douglas Emmett, Inc. REIT      12,884   
  480       Duke Realty Corp. REIT      12,552   
  617       Empire State Realty Trust, Inc., Class A REIT      12,075   
  165       EPR Properties REIT      11,999   
  36       Equinix, Inc. REIT      12,862   
  429       Equity Commonwealth REIT(b)      12,960   
  167       Equity LifeStyle Properties, Inc. REIT      12,665   
  422       Equity One, Inc. REIT      12,027   
  58       Essex Property Trust, Inc. REIT      12,417   
  163       Extra Space Storage, Inc. REIT      11,923   
  83       Federal Realty Investment Trust REIT      12,054   
  564       Forest City Realty Trust, Inc., Class A REIT      12,177   
  390       Gaming and Leisure Properties, Inc. REIT      12,804   
  465       General Growth Properties, Inc. REIT      11,602   
  340       HCP, Inc. REIT      11,645   
  397       Healthcare Trust of America, Inc., Class A REIT      12,148   
  252       Highwoods Properties, Inc. REIT      12,507   
  447       Hospitality Properties Trust REIT      12,230   
  837       Host Hotels & Resorts, Inc. REIT      12,957   
  116       Howard Hughes Corp. (The)(b)      12,740   
  347       Iron Mountain, Inc. REIT      11,704   
  115       Jones Lang LaSalle, Inc.      11,138   
  192       Kilroy Realty Corp. REIT      13,791   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   41  

 

 

PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Real Estate (continued)   
  443       Kimco Realty Corp. REIT    $ 11,788   
  203       Lamar Advertising Co., Class A REIT      12,880   
  321       Liberty Property Trust REIT      12,978   
  142       Life Storage, Inc. REIT      11,452   
  161       Macerich Co. (The) REIT      11,396   
  137       Mid-America Apartment Communities, Inc. REIT      12,707   
  254       National Retail Properties, Inc. REIT      11,587   
  1,031       NorthStar Realty Finance Corp. REIT      14,970   
  363       OMEGA Healthcare Investors, Inc. REIT      11,554   
  572       Outfront Media, Inc. REIT      12,304   
  785       Paramount Group, Inc. REIT      12,207   
  606       Piedmont Office Realty Trust, Inc., Class A REIT      12,411   
  194       Post Properties, Inc. REIT      12,763   
  244       Prologis, Inc. REIT      12,727   
  492       Rayonier, Inc. REIT      13,195   
  512       Realogy Holdings Corp.      11,720   
  193       Realty Income Corp. REIT      11,433   
  168       Regency Centers Corp. REIT      12,108   
  782       Retail Properties of America, Inc., Class A REIT      12,176   
  570       Senior Housing Properties Trust REIT      12,124   
  119       SL Green Realty Corp. REIT      11,688   
  974       Spirit Realty Capital, Inc. REIT      11,600   
  440       STORE Capital Corp. REIT      12,008   
  163       Sun Communities, Inc. REIT      12,540   
  332       Tanger Factory Outlet Centers, Inc. REIT      11,554   
  174       Taubman Centers, Inc. REIT      12,608   
  359       UDR, Inc. REIT      12,554   
  183       Ventas, Inc. REIT      12,398   
  1,276       VEREIT, Inc. REIT      11,994   
  128       Vornado Realty Trust REIT      11,876   
  331       Weingarten Realty Investors REIT      11,986   
  174       Welltower, Inc. REIT      11,924   
  415       Weyerhaeuser Co. REIT      12,421   
  198       WP Carey, Inc. REIT      12,027   
     

 

 

  
        958,677   
     

 

 

  
   Telecommunication Services—2.1%   
  2,388       CenturyLink, Inc.      63,473   
  15,082       Frontier Communications Corp.      60,630   
  1,386       Level 3 Communications, Inc.(b)      77,824   
  273       SBA Communications Corp., Class A(b)      30,925   
  9,698       Sprint Corp.(b)      59,740   
  2,402       Telephone & Data Systems, Inc.      62,068   
  1,796       United States Cellular Corp.(b)      62,950   
  2,185       Zayo Group Holdings, Inc.(b)      70,313   
     

 

 

  
        487,923   
     

 

 

  
   Utilities—8.9%   
  5,006       AES Corp. (The)      58,921   
  1,648       Alliant Energy Corp.      62,706   
  1,291       Ameren Corp.      64,486   
  859       American Water Works Co., Inc.      63,600   
  2,096       Aqua America, Inc.      64,347   
  862       Atmos Energy Corp.      64,124   
  1,531       Avangrid, Inc.      60,337   
  4,853       Calpine Corp.(b)      57,751   
  2,739       CenterPoint Energy, Inc.      62,449   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Utilities (continued)   
  1,512       CMS Energy Corp.    $ 63,731   
  840       Consolidated Edison, Inc.      63,462   
  688       DTE Energy Co.      66,055   
  881       Edison International      64,736   
  822       Entergy Corp.      60,565   
  1,180       Eversource Energy      64,971   
  1,942       FirstEnergy Corp.      66,591   
  2,406       Great Plains Energy, Inc.      68,427   
  2,132       Hawaiian Electric Industries, Inc.      62,894   
  2,578       MDU Resources Group, Inc.      67,569   
  1,184       National Fuel Gas Co.      62,018   
  2,650       NiSource, Inc.      61,639   
  5,838       NRG Energy, Inc.      62,058   
  2,015       OGE Energy Corp.      62,546   
  833       Pinnacle West Capital Corp.      63,416   
  1,856       PPL Corp.      63,735   
  1,528       Public Service Enterprise Group, Inc.      64,298   
  883       SCANA Corp.      64,777   
  603       Sempra Energy      64,581   
  1,397       UGI Corp.      64,667   
  1,276       Vectren Corp.      64,196   
  1,060       WEC Energy Group, Inc.      63,303   
  1,156       Westar Energy, Inc.      66,262   
  1,544       Xcel Energy, Inc.      64,153   
     

 

 

  
        2,099,371   
     

 

 

  
   Total Common Stocks and Other Equity Interests
(Cost $24,432,865)		      23,557,366   
     

 

 

  
     
   Money Market Fund—0.3%   
  63,671       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(e)
(Cost $63,671)		      63,671   
     

 

 

  
   Total Investments
(excluding investments purchased with cash collateral from securities on loan)
(Cost $24,496,536)—100.3%		      23,621,037   
     

 

 

  
     
   Investments Purchased with Cash Collateral from Securities on Loan    
     
   Money Market Fund—1.3%   
  316,446       Invesco Government & Agency Portfolio—Institutional Class, 0.29%(e)(f)
(Cost $316,446)		      316,446   
     

 

 

  
   Total Investments
(Cost $24,812,982)—101.6%		      23,937,483   
   Other assets less liabilities—(1.6)%      (370,419 ) 
     

 

 

  
   Net Assets—100.0%    $ 23,567,064   
     

 

 

  

Investment Abbreviations:

REIT—Real Estate Investment Trust

 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   42  

 

 

PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)

October 31, 2016

(Unaudited)

 

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  Non-income producing security.
(c)  All or a portion of this security was out on loan at October 31, 2016.
(d)  Affiliated company. The Fund’s Adviser is a wholly-owned subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated with the Fund. See Note 4.
(e)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
(f)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2H.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   43  

 

 

PowerShares Russell Midcap Pure Growth Portfolio (PXMG)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Information Technology      35.6   
Health Care      22.1   
Consumer Discretionary      20.9   
Industrials      9.8   
Financials      6.3   
Real Estate      2.8   
Consumer Staples      2.4   
Telecommunication Services      0.1   
Money Market Funds Plus Other Assets Less Liabilities      (0.0)   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests—100.0%    
   Consumer Discretionary—20.9%   
  14,467       AMC Networks, Inc., Class A(b)    $ 707,870   
  853       Cable One, Inc.      491,959   
  5,526       Carter’s, Inc.      477,115   
  2,076       Delphi Automotive PLC (United Kingdom)      135,085   
  5,586       Dollar General Corp.      385,937   
  9,221       Dollar Tree, Inc.(b)      696,647   
  4,637       Domino’s Pizza, Inc.      784,766   
  8,498       Interpublic Group of Cos., Inc. (The)      190,270   
  9,679       Lululemon Athletica, Inc.(b)      554,123   
  1,066       Newell Brands, Inc.      51,189   
  406       NVR, Inc.(b)      618,338   
  3,084       O’Reilly Automotive, Inc.(b)      815,533   
  3,617       Panera Bread Co., Class A(b)      689,979   
  8,616       Pool Corp.      797,669   
  7,160       Ross Stores, Inc.      447,786   
  2,945       ServiceMaster Global Holdings,
Inc.(b)		      105,402   
  16,336       Tempur Sealy International, Inc.(b)      883,288   
  7,889       Tractor Supply Co.      494,088   
  4,344       Ulta Salon, Cosmetics & Fragrance, Inc.(b)      1,057,069   
  25,868       Under Armour, Inc., Class A(b)(c)      804,495   
  3,851       Vail Resorts, Inc.      614,003   
  10,997       Wyndham Worldwide Corp.      724,043   
     

 

 

  
        12,526,654   
     

 

 

  
   Consumer Staples—2.4%   
  40,374       Blue Buffalo Pet Products, Inc.(b)      1,014,195   
  20,763       Sprouts Farmers Market, Inc.(b)      459,900   
     

 

 

  
        1,474,095   
     

 

 

  
   Financials—6.3%   
  4,394       Eaton Vance Corp.      154,054   
  4,503       FactSet Research Systems, Inc.      696,704   
  7,130       MarketAxess Holdings, Inc.      1,074,919   
  812       Morningstar, Inc.      57,351   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials (continued)   
  10,246       MSCI, Inc.    $ 821,627   
  49,602       NorthStar Asset Management Group, Inc.      679,547   
  7,142       SEI Investments Co.      316,605   
     

 

 

  
        3,800,807   
     

 

 

  
   Health Care—22.1%   
  10,611       ABIOMED, Inc.(b)      1,114,049   
  6,380       Agios Pharmaceuticals, Inc.(b)      305,219   
  12,621       Akorn, Inc.(b)      302,273   
  9,630       Align Technology, Inc.(b)      827,410   
  5,298       Alkermes PLC(b)      267,072   
  10,177       AmerisourceBergen Corp.      715,647   
  8,238       athenahealth, Inc.(b)      851,150   
  1,955       BioMarin Pharmaceutical, Inc.(b)      157,417   
  420       C.R. Bard, Inc.      91,006   
  17,848       Cerner Corp.(b)      1,045,536   
  5,242       Charles River Laboratories International, Inc.(b)      397,763   
  6,020       DexCom, Inc.(b)      471,005   
  7,870       Edwards Lifesciences Corp.(b)      749,381   
  1,067       Henry Schein, Inc.(b)      159,196   
  3,524       Hologic, Inc.(b)      126,899   
  7,318       Illumina, Inc.(b)      996,272   
  12,776       Incyte Corp.(b)      1,111,129   
  8,529       Inovalon Holdings, Inc., Class A(b)      115,994   
  10,078       Intrexon Corp.(b)      263,036   
  296       Intuitive Surgical, Inc.(b)      198,936   
  14,270       Ionis Pharmaceuticals, Inc.(b)      370,735   
  1,409       Mettler-Toledo International, Inc.(b)      569,349   
  14,077       Seattle Genetics, Inc.(b)      727,781   
  8,964       Tenet Healthcare Corp.(b)      176,680   
  675       VCA, Inc.(b)      41,485   
  23,693       Veeva Systems, Inc., Class A(b)      920,473   
  2,075       West Pharmaceutical Services, Inc.      157,762   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   44  

 

 

PowerShares Russell Midcap Pure Growth Portfolio (PXMG) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Health Care (continued)   
  374       Zoetis, Inc.    $ 17,877   
     

 

 

  
        13,248,532   
     

 

 

  
   Industrials—9.8%   
  2,070       Acuity Brands, Inc.      462,790   
  4,511       B/E Aerospace, Inc.      268,495   
  3,097       C.H. Robinson Worldwide, Inc.      210,968   
  4,469       Cintas Corp.      476,708   
  17,535       Copart, Inc.(b)      920,062   
  589       Equifax, Inc.      73,018   
  8,609       HEICO Corp.      581,624   
  6,172       J.B. Hunt Transport Services, Inc.      503,697   
  6,805       Middleby Corp. (The)(b)      762,909   
  6,032       Nordson Corp.      603,984   
  4,662       Robert Half International, Inc.      174,452   
  8,623       Toro Co. (The)      412,869   
  377       Verisk Analytics, Inc.(b)      30,744   
  2,932       Watsco, Inc.      402,534   
     

 

 

  
        5,884,854   
     

 

 

  
   Information Technology—35.6%   
  2,905       Alliance Data Systems Corp.      593,985   
  7,880       Amphenol Corp., Class A      519,528   
  9,012       Arista Networks, Inc.(b)      763,767   
  16,405       Atlassian Corp. PLC, Class A (Australia)(b)      440,638   
  13,558       Black Knight Financial Services, Inc., Class A(b)      533,507   
  466       Broadridge Financial Solutions, Inc.      30,132   
  14,412       CDK Global, Inc.      787,039   
  3,318       Citrix Systems, Inc.(b)      281,366   
  2,125       CoStar Group, Inc.(b)      397,630   
  15,097       CSRA, Inc.      378,784   
  390       DST Systems, Inc.      37,502   
  6,632       Euronet Worldwide, Inc.(b)      527,576   
  3,065       F5 Networks, Inc.(b)      423,614   
  56,295       First Data Corp., Class A(b)      787,567   
  3,365       Fiserv, Inc.(b)      331,385   
  1,525       FleetCor Technologies, Inc.(b)      267,333   
  26,600       Fortinet, Inc.(b)      852,796   
  4,761       Gartner, Inc.(b)      409,637   
  11,174       Genpact Ltd.(b)      256,890   
  11,173       Global Payments, Inc.      810,266   
  10,097       GoDaddy, Inc., Class A(b)      361,372   
  3,042       Jack Henry & Associates, Inc.      246,463   
  4,796       LinkedIn Corp., Class A(b)      909,322   
  13,094       Manhattan Associates, Inc.(b)      663,080   
  15,022       Match Group, Inc., Class A(b)(c)      271,297   
  7,825       Microchip Technology, Inc.      473,804   
  12,586       NetSuite, Inc.(b)      1,172,008   
  13,144       NVIDIA Corp.      935,327   
  5,599       Palo Alto Networks, Inc.(b)      861,294   
  3,781       Paychex, Inc.      208,711   
  11,530       Red Hat, Inc.(b)      892,999   
  13,427       ServiceNow, Inc.(b)      1,180,368   
  4,973       Splunk, Inc.(b)      299,325   
  23,910       Square, Inc., Class A(b)      267,792   
  8,134       Tableau Software, Inc., Class A(b)      390,839   
  10,949       Total System Services, Inc.      546,136   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Information Technology (continued)   
  5,762       Tyler Technologies, Inc.(b)    $ 924,225   
  4,676       Ultimate Software Group, Inc. (The)(b)      986,589   
  3,762       Workday, Inc., Class A(b)      326,090   
     

 

 

  
        21,347,983   
     

 

 

  
   Real Estate—2.8%   
  2,391       Equinix, Inc. REIT      854,256   
  4,471       Extra Space Storage, Inc. REIT      327,054   
  14,805       Gaming and Leisure Properties, Inc. REIT      486,048   
     

 

 

  
        1,667,358   
     

 

 

  
   Telecommunication Services—0.1%   
  1,352       Zayo Group Holdings, Inc.(b)      43,507   
     

 

 

  
   Total Common Stocks and Other Equity Interests
(Cost $58,418,070)		      59,993,790   
     

 

 

  
     
   Money Market Fund—0.1%   
  78,206       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(d)
(Cost $78,206)		      78,206   
     

 

 

  
   Total Investments
(excluding investments purchased with cash collateral from securities on loan)
(Cost $58,496,276)—100.1%		      60,071,996   
     

 

 

  
     
   Investments Purchased with Cash Collateral from Securities on Loan    
     
   Money Market Fund—1.8%   
  1,051,355       Invesco Government & Agency Portfolio—Institutional Class, 0.29%(d)(e)
(Cost $1,051,355)		      1,051,355   
     

 

 

  
   Total Investments
(Cost $59,547,631)—101.9%		      61,123,351   
   Other assets less liabilities—(1.9)%      (1,140,571 ) 
     

 

 

  
   Net Assets—100.0%    $ 59,982,780   
     

 

 

  

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  Non-income producing security.
(c)  All or a portion of this security was out on loan at October 31, 2016.
(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2H.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   45  

 

 

PowerShares Russell Midcap Pure Value Portfolio (PXMV)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Financials      26.8   
Energy      17.0   
Utilities      15.0   
Real Estate      12.7   
Industrials      9.5   
Information Technology      6.2   
Consumer Discretionary      4.8   
Telecommunication Services      3.0   
Materials      2.7   
Health Care      2.3   
Money Market Funds Plus Other Assets Less Liabilities      0.0   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests—100.0%    
   Consumer Discretionary—4.8%   
  5,675       Best Buy Co., Inc.    $ 220,814   
  901       GameStop Corp., Class A(b)      21,669   
  5,559       Garmin Ltd.      268,833   
  161       Graham Holdings Co., Class B      76,475   
  22,328       J.C. Penney Co., Inc.(b)(c)      191,798   
  3,408       John Wiley & Sons, Inc., Class A      175,853   
  991       Liberty Broadband Corp., Class C(c)      66,050   
  42,297       News Corp., Class A      512,640   
  2,467       Penske Automotive Group, Inc.      110,398   
  1,399       PVH Corp.      149,665   
  59,880       Staples, Inc.      443,112   
     

 

 

  
        2,237,307   
     

 

 

  
   Energy—17.0%   
  8,753       Baker Hughes, Inc.      484,916   
  7,731       Cheniere Energy, Inc.(c)      291,459   
  22,085       CONSOL Energy, Inc.      374,341   
  15,805       Diamond Offshore Drilling, Inc.(b)      260,624   
  5,111       Energen Corp.      256,214   
  42,995       Ensco PLC, Class A      336,221   
  19,195       Frank’s International NV(b)      215,944   
  5,290       Helmerich & Payne, Inc.(b)      333,852   
  6,887       Hess Corp.      330,369   
  15,752       HollyFrontier Corp.      393,012   
  30,133       Marathon Oil Corp.      397,153   
  10,040       Murphy Oil Corp.      259,735   
  45,298       Nabors Industries Ltd.      539,046   
  7,015       National Oilwell Varco, Inc.      225,181   
  13,707       Noble Corp. PLC (United Kingdom)      67,713   
  10,746       Noble Energy, Inc.      370,415   
  20,886       Patterson-UTI Energy, Inc.      469,517   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Energy (continued)   
  12,345       QEP Resources, Inc.    $ 198,384   
  24,266       Superior Energy Services, Inc.      343,607   
  9,605       Targa Resources Corp.      421,660   
  56       Tesoro Corp.      4,758   
  43,595       Transocean Ltd.(c)      418,948   
  72,243       Weatherford International PLC(c)      348,211   
  27,044       Whiting Petroleum Corp.(c)      222,843   
  32,671       WPX Energy, Inc.(c)      354,807   
     

 

 

  
        7,918,930   
     

 

 

  
   Financials—26.8%   
  25,767       Agnc Investment Corp. REIT      516,886   
  873       American National Insurance Co.      102,281   
  52,806       Annaly Capital Management, Inc. REIT      547,070   
  1,296       Arch Capital Group Ltd. (Bermuda)(c)      101,049   
  1,399       Aspen Insurance Holdings Ltd. (Bermuda)      67,502   
  9,944       Associated Banc-Corp.      201,863   
  37       Assurant, Inc.      2,979   
  21,006       Assured Guaranty Ltd.      627,869   
  1,789       Bank of Hawaii Corp.      134,443   
  1,654       BankUnited, Inc.      48,198   
  7,167       BOK Financial Corp.(b)      509,000   
  36,044       Chimera Investment Corp. REIT      564,810   
  13,904       CIT Group, Inc.      505,132   
  11,182       Comerica, Inc.      582,470   
  164       Commerce Bancshares, Inc.      8,171   
  3,623       Cullen/Frost Bankers, Inc.      275,312   
  4,795       E*TRADE Financial Corp.(c)      135,027   
  4,031       East West Bancorp, Inc.      159,265   
  6,291       Endurance Specialty Holdings Ltd.      578,457   
  28,410       Fifth Third Bancorp      618,202   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   46  

 

 

PowerShares Russell Midcap Pure Value Portfolio (PXMV) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials (continued)   
  1,290       First American Financial Corp.    $ 50,387   
  8,936       Hartford Financial Services Group, Inc. (The)      394,167   
  2,805       Huntington Bancshares, Inc.      29,733   
  1,933       KeyCorp      27,294   
  647       M&T Bank Corp.      79,406   
  76,537       MFA Financial, Inc. REIT      559,485   
  13,679       Navient Corp.      174,818   
  33,071       New York Community Bancorp, Inc.      474,900   
  23,056       Old Republic International Corp.      388,724   
  10,572       PacWest Bancorp      458,719   
  17,914       Popular, Inc.      650,278   
  31       Principal Financial Group, Inc.      1,693   
  3,428       ProAssurance Corp.      182,712   
  38,831       Regions Financial Corp.      415,880   
  938       RenaissanceRe Holdings Ltd. (Bermuda)      116,584   
  48,939       SLM Corp.(c)      345,020   
  10,286       SunTrust Banks, Inc.      465,236   
  62,744       Two Harbors Investment Corp. REIT      522,658   
  5,199       Validus Holdings Ltd.      265,669   
  692       White Mountains Insurance Group Ltd.      574,166   
     

 

 

  
        12,463,515   
     

 

 

  
   Health Care—2.3%   
  2,228       Bio-Rad Laboratories, Inc., Class A(c)      352,202   
  34,040       Endo International PLC(c)      638,250   
  881       Perrigo Co. PLC      73,291   
     

 

 

  
        1,063,743   
     

 

 

  
   Industrials—9.5%   
  3,318       AGCO Corp.      169,483   
  19,862       Arconic, Inc.      570,437   
  3       Fluor Corp.      156   
  8,968       ITT, Inc.      315,853   
  7,087       Jacobs Engineering Group, Inc.(c)      365,547   
  32,713       KBR, Inc.      484,480   
  1,809       Macquarie Infrastructure Corp.      147,994   
  3,100       Oshkosh Corp.      165,850   
  190       Pentair PLC (United Kingdom)      10,475   
  6,486       Regal Beloit Corp.      383,323   
  4,210       Ryder System, Inc.      292,132   
  8,884       SolarCity Corp.(b)(c)      174,126   
  12,049       Terex Corp.      287,730   
  13,205       Timken Co. (The)      436,425   
  8,977       United Continental Holdings, Inc.(c)      504,777   
  2,338       WESCO International, Inc.(c)      126,720   
     

 

 

  
        4,435,508   
     

 

 

  
   Information Technology—6.2%   
  6,347       Avnet, Inc.      266,257   
  19,431       Brocade Communications Systems, Inc.      205,969   
  7,282       CA, Inc.      223,849   
  6,324       EchoStar Corp., Class A(c)      295,584   
  7,420       First Solar, Inc.(b)(c)      300,436   
  5,081       Ingram Micro, Inc., Class A      189,013   
  11,766       Lexmark International, Inc., Class A      466,992   
  11,576       Marvell Technology Group Ltd. (Bermuda)      150,835   
  21,046       SunPower Corp.(b)(c)      152,373   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Information Technology (continued)   
  1,941       Western Digital Corp.    $ 113,432   
  37,039       Xerox Corp.      361,871   
  47,787       Zynga, Inc., Class A(c)      134,281   
     

 

 

  
        2,860,892   
     

 

 

  
   Materials—2.7%   
  1,108       Ashland Global Holdings, Inc.      123,797   
  7,341       CF Industries Holdings, Inc.      176,258   
  17,520       Huntsman Corp.      296,964   
  4,780       Mosaic Co. (The)      112,473   
  10,610       United States Steel Corp.(b)      205,197   
  2,601       Westlake Chemical Corp.      134,706   
  3,931       WestRock Co.      181,573   
     

 

 

  
        1,230,968   
     

 

 

  
   Real Estate—12.7%   
  24,067       American Homes 4 Rent, Class A REIT      508,054   
  571       AvalonBay Communities, Inc. REIT      97,744   
  14,936       Brandywine Realty Trust REIT      231,508   
  8,736       Communications Sales & Leasing, Inc. REIT      248,364   
  16,558       Corporate Office Properties Trust REIT      441,933   
  4,536       Corrections Corp. of America REIT      65,545   
  6,132       DCT Industrial Trust, Inc. REIT      286,671   
  21,989       DDR Corp. REIT      336,212   
  14,531       Duke Realty Corp. REIT      379,986   
  980       EPR Properties REIT      71,266   
  13,449       Equity Commonwealth REIT(c)      406,294   
  24,939       Host Hotels & Resorts, Inc. REIT      386,056   
  8,121       Liberty Property Trust REIT      328,332   
  1,242       Macerich Co. (The) REIT      87,909   
  1,530       Mid-America Apartment Communities, Inc. REIT      141,907   
  38,795       NorthStar Realty Finance Corp. REIT      563,303   
  14,925       Paramount Group, Inc. REIT      232,084   
  1,655       Prologis, Inc. REIT      86,325   
  14,034       Rayonier, Inc. REIT      376,392   
  1,364       SL Green Realty Corp. REIT      133,972   
  3,614       Sun Communities, Inc. REIT      278,025   
  21,927       VEREIT, Inc. REIT      206,114   
  567       Weingarten Realty Investors REIT      20,531   
     

 

 

  
        5,914,527   
     

 

 

  
   Telecommunication Services—3.0%   
  3,648       CenturyLink, Inc.      96,964   
  84,451       Frontier Communications Corp.(b)      339,493   
  40,813       Sprint Corp.(b)(c)      251,408   
  11,435       Telephone & Data Systems, Inc.      295,480   
  11,140       United States Cellular Corp.(c)      390,457   
     

 

 

  
        1,373,802   
     

 

 

  
   Utilities—15.0%   
  20,306       AES Corp. (The)      239,002   
  6,350       Alliant Energy Corp.      241,617   
  9,428       Ameren Corp.      470,929   
  388       American Water Works Co., Inc.      28,728   
  5,468       Atmos Energy Corp.      406,765   
  1,630       CenterPoint Energy, Inc.      37,164   
  7,335       Consolidated Edison, Inc.      554,159   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   47  

 

 

PowerShares Russell Midcap Pure Value Portfolio (PXMV) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Utilities (continued)   
  856       DTE Energy Co.    $ 82,185   
  7,775       Edison International      571,307   
  5,005       Entergy Corp.      368,768   
  8,258       Eversource Energy      454,685   
  16,165       FirstEnergy Corp.      554,298   
  12,080       Hawaiian Electric Industries, Inc.      356,360   
  2,044       National Fuel Gas Co.      107,065   
  7,038       Pinnacle West Capital Corp.      535,803   
  8,852       PPL Corp.      303,978   
  8,381       Public Service Enterprise Group, Inc.      352,672   
  7,434       SCANA Corp.      545,358   
  675       Sempra Energy      72,292   
  1,774       UGI Corp.      82,118   
  1,394       WEC Energy Group, Inc.      83,250   
  12,084       Xcel Energy, Inc.      502,090   
     

 

 

  
        6,950,593   
     

 

 

  
   Total Common Stocks and Other Equity Interests
(Cost $46,504,663)		      46,449,785   
     

 

 

  
     
   Money Market Fund—0.1%   
  66,286       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(d)
(Cost $66,286)		      66,286   
     

 

 

  
   Total Investments
(excluding investments purchased with cash collateral from securities on loan)
(Cost $46,570,949)—100.1%		      46,516,071   
     

 

 

  
     
   Investments Purchased with Cash Collateral from Securities on Loan    
     
   Money Market Fund—4.7%   
  2,176,802       Invesco Government & Agency Portfolio—Institutional Class, 0.29%(d)(e)
(Cost $2,176,802)		      2,176,802   
     

 

 

  
   Total Investments
(Cost $48,747,751)—104.8%		      48,692,873   
   Other assets less liabilities—(4.8)%      (2,228,077 ) 
     

 

 

  
   Net Assets—100.0%    $ 46,464,796   
     

 

 

  

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  All or a portion of this security was out on loan at October 31, 2016.
(c)  Non-income producing security.
(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2H.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   48  

 

 

PowerShares Russell Top 200 Equal Weight Portfolio (EQWL)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Financials      15.9   
Information Technology      15.1   
Health Care      15.0   
Consumer Discretionary      12.2   
Industrials      11.6   
Consumer Staples      10.6   
Energy      7.3   
Materials      4.9   
Utilities      3.5   
Real Estate      2.4   
Telecommunication Services      1.4   
Money Market Fund Plus Other Assets Less Liabilities      0.1   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests—99.9%   
   Consumer Discretionary—12.2%   
  190       Amazon.com, Inc.(b)    $ 150,066   
  3,213       Carnival Corp.      157,758   
  2,985       CBS Corp., Class B      169,011   
  564       Charter Communications, Inc.,
Class A(b)		      140,938   
  2,348       Comcast Corp., Class A      145,153   
  2,859       DISH Network Corp., Class A(b)      167,423   
  12,969       Ford Motor Co.      152,256   
  4,917       General Motors Co.      155,377   
  1,225       Home Depot, Inc. (The)      149,462   
  2,731       Las Vegas Sands Corp.      158,070   
  2,173       Lowe’s Cos., Inc.      144,830   
  1,329       McDonald’s Corp.      149,606   
  1,601       Netflix, Inc.(b)      199,917   
  2,807       NIKE, Inc., Class B      140,855   
  107       Priceline Group, Inc. (The)(b)      157,743   
  2,867       Starbucks Corp.      152,152   
  2,275       Target Corp.      156,361   
  755       Tesla Motors, Inc.(b)      149,286   
  1,995       Time Warner, Inc.      177,535   
  2,065       TJX Cos., Inc. (The)      152,294   
  6,420       Twenty-First Century Fox, Inc.,
Class A		      168,653   
  2,746       VF Corp.      148,861   
  1,694       Walt Disney Co. (The)      157,017   
  1,729       Yum! Brands, Inc.      149,178   
     

 

 

  
        3,749,802   
     

 

 

  
   Consumer Staples—10.6%   
  2,454       Altria Group, Inc.      162,259   
  3,709       Archer-Daniels-Midland Co.      161,601   
  3,648       Coca-Cola Co. (The)      154,675   
  2,115       Colgate-Palmolive Co.      150,926   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Consumer Staples (continued)   
  936       Constellation Brands, Inc., Class A    $ 156,424   
  1,033       Costco Wholesale Corp.      152,750   
  1,716       CVS Health Corp.      144,316   
  1,738       Estee Lauder Cos., Inc. (The), Class A      151,432   
  2,431       General Mills, Inc.      150,673   
  1,236       Kimberly-Clark Corp.      141,411   
  1,741       Kraft Heinz Co. (The)      154,862   
  5,196       Kroger Co. (The)      160,972   
  3,600       Mondelez International, Inc., Class A      161,784   
  1,051       Monster Beverage Corp.(b)      151,701   
  1,445       PepsiCo, Inc.      154,904   
  1,564       Philip Morris International, Inc.      150,832   
  1,758       Procter & Gamble Co. (The)      152,594   
  3,244       Reynolds American, Inc.      178,680   
  3,155       Sysco Corp.      151,819   
  1,919       Walgreens Boots Alliance, Inc.      158,759   
  2,148       Wal-Mart Stores, Inc.      150,403   
     

 

 

  
        3,253,777   
     

 

 

  
   Energy—7.3%   
  2,666       Anadarko Petroleum Corp.      158,467   
  2,607       Apache Corp.      155,064   
  1,570       Chevron Corp.      164,458   
  3,940       ConocoPhillips      171,193   
  1,754       EOG Resources, Inc.      158,597   
  1,866       Exxon Mobil Corp.      155,475   
  3,794       Halliburton Co.      174,524   
  7,117       Kinder Morgan, Inc.      145,400   
  2,263       Occidental Petroleum Corp.      164,995   
  1,956       Phillips 66      158,730   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   49  

 

 

PowerShares Russell Top 200 Equal Weight Portfolio (EQWL) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Energy (continued)   
  899       Pioneer Natural Resources Co.    $ 160,939   
  2,062       Schlumberger Ltd.      161,310   
  3,740       Spectra Energy Corp.      156,369   
  2,824       Valero Energy Corp.      167,294   
     

 

 

  
        2,252,815   
     

 

 

  
   Financials—15.9%   
  2,145       Aflac, Inc.      147,726   
  2,252       Allstate Corp. (The)      152,911   
  2,417       American Express Co.      160,537   
  2,655       American International Group, Inc.      163,813   
  1,382       Aon PLC      153,167   
  10,161       Bank of America Corp.      167,656   
  3,933       Bank of New York Mellon Corp. (The)      170,181   
  4,154       BB&T Corp.      162,837   
  1,069       Berkshire Hathaway, Inc., Class B(b)      154,257   
  429       BlackRock, Inc.      146,392   
  2,164       Capital One Financial Corp.      160,223   
  5,056       Charles Schwab Corp. (The)      160,275   
  1,240       Chubb Ltd.      157,480   
  3,351       Citigroup, Inc.      164,702   
  1,470       CME Group, Inc., Class A      147,147   
  2,722       Discover Financial Services      153,330   
  4,488       Franklin Resources, Inc.      151,066   
  954       Goldman Sachs Group, Inc. (The)      170,041   
  568       Intercontinental Exchange, Inc.      153,581   
  2,341       JPMorgan Chase & Co.      162,138   
  2,305       Marsh & McLennan Cos., Inc.      146,114   
  3,551       MetLife, Inc.      166,755   
  4,956       Morgan Stanley      166,373   
  1,755       PNC Financial Services Group, Inc. (The)      167,778   
  1,926       Prudential Financial, Inc.      163,306   
  1,225       S&P Global, Inc.      149,266   
  2,217       State Street Corp.      155,656   
  3,791       Thomson Reuters Corp.      149,403   
  1,358       Travelers Cos., Inc. (The)      146,908   
  3,622       U.S. Bancorp      162,121   
  3,446       Wells Fargo & Co.      158,550   
     

 

 

  
        4,891,690   
     

 

 

  
   Health Care—15.0%   
  3,670       Abbott Laboratories      144,011   
  2,406       AbbVie, Inc.      134,207   
  1,342       Aetna, Inc.      144,064   
  1,233       Alexion Pharmaceuticals, Inc.(b)      160,906   
  649       Allergan PLC(b)      135,602   
  905       Amgen, Inc.      127,750   
  1,230       Anthem, Inc.      149,888   
  3,283       Baxter International, Inc.      156,238   
  868       Becton, Dickinson and Co.      145,746   
  494       Biogen, Inc.(b)      138,409   
  6,550       Boston Scientific Corp.(b)      144,100   
  2,787       Bristol-Myers Squibb Co.      141,886   
  1,988       Cardinal Health, Inc.      136,556   
  1,447       Celgene Corp.(b)      147,854   
  1,180       Cigna Corp.      140,219   
  2,001       Danaher Corp.      157,178   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Health Care (continued)   
  1,921       Eli Lilly & Co.    $ 141,847   
  2,195       Express Scripts Holding Co.(b)      147,943   
  1,960       Gilead Sciences, Inc.      144,315   
  2,068       HCA Holdings, Inc.(b)      158,264   
  877       Humana, Inc.      150,432   
  1,303       Johnson & Johnson      151,135   
  934       McKesson Corp.      118,777   
  1,793       Medtronic PLC      147,062   
  2,483       Merck & Co., Inc.      145,802   
  3,761       Mylan NV(b)      137,276   
  4,593       Pfizer, Inc.      145,644   
  369       Regeneron Pharmaceuticals, Inc.(b)      127,312   
  1,319       Stryker Corp.      152,147   
  978       Thermo Fisher Scientific, Inc.      143,795   
  1,104       UnitedHealth Group, Inc.      156,028   
  1,743       Vertex Pharmaceuticals, Inc.(b)      132,224   
     

 

 

  
        4,604,617   
     

 

 

  
   Industrials—11.6%   
  881       3M Co.      145,629   
  1,183       Boeing Co. (The)      168,495   
  1,875       Caterpillar, Inc.      156,487   
  5,245       CSX Corp.      160,025   
  1,871       Deere & Co.      165,209   
  3,962       Delta Air Lines, Inc.      165,493   
  2,450       Eaton Corp. PLC      156,237   
  2,998       Emerson Electric Co.      151,939   
  876       FedEx Corp.      152,704   
  3,010       Fortive Corp.      153,661   
  1,001       General Dynamics Corp.      150,891   
  5,200       General Electric Co.      151,320   
  1,346       Honeywell International, Inc.      147,629   
  1,306       Illinois Tool Works, Inc.      148,322   
  632       Lockheed Martin Corp.      155,712   
  1,644       Norfolk Southern Corp.      152,892   
  713       Northrop Grumman Corp.      163,277   
  1,117       Raytheon Co.      152,593   
  4,031       Southwest Airlines Co.      161,442   
  1,638       Union Pacific Corp.      144,439   
  1,412       United Parcel Service, Inc., Class B      152,157   
  1,518       United Technologies Corp.      155,140   
  2,432       Waste Management, Inc.      159,685   
     

 

 

  
        3,571,378   
     

 

 

  
   Information Technology—15.1%   
  1,338       Accenture PLC, Class A      155,529   
  3,514       Activision Blizzard, Inc.      151,699   
  1,416       Adobe Systems, Inc.(b)      152,234   
  198       Alphabet, Inc., Class C(b)      155,339   
  1,374       Apple, Inc.      156,004   
  5,242       Applied Materials, Inc.      152,437   
  1,747       Automatic Data Processing, Inc.      152,094   
  909       Broadcom Ltd. (Singapore)      154,785   
  4,935       Cisco Systems, Inc.      151,406   
  2,856       Cognizant Technology Solutions Corp., Class A(b)      146,656   
  6,659       Corning, Inc.      151,226   
  3,251       Dell Technologies, Inc., Class V(b)      159,592   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   50  

 

 

PowerShares Russell Top 200 Equal Weight Portfolio (EQWL) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Information Technology (continued)   
  4,864       eBay, Inc.(b)    $ 138,673   
  1,207       Facebook, Inc., Class A(b)      158,105   
  6,779       Hewlett Packard Enterprise Co.      152,324   
  10,128       HP, Inc.      146,755   
  4,179       Intel Corp.      145,722   
  991       International Business Machines Corp.      152,307   
  1,411       Intuit, Inc.      153,432   
  1,531       MasterCard, Inc., Class A      163,848   
  2,681       Microsoft Corp.      160,645   
  3,953       Oracle Corp.      151,874   
  3,784       PayPal Holdings, Inc.(b)      157,641   
  2,454       QUALCOMM, Inc.      168,639   
  2,218       salesforce.com, inc.(b)      166,705   
  2,237       Texas Instruments, Inc.      158,491   
  6,952       Versum Materials, Inc.(b)      157,810   
  1,891       Visa, Inc., Class A      156,026   
  2,111       VMware, Inc., Class A(b)      165,925   
  3,582       Yahoo!, Inc.(b)      148,832   
     

 

 

  
        4,642,755   
     

 

 

  
   Materials—4.9%   
  8,512       Advansix, Inc.(b)      135,851   
  1,130       Air Products & Chemicals, Inc.      150,765   
  2,955       Dow Chemical Co. (The)      159,009   
  2,310       E.I. du Pont de Nemours & Co.      158,905   
  1,296       Ecolab, Inc.      147,964   
  1,997       LyondellBasell Industries NV, Class A      158,861   
  1,519       Monsanto Co.      153,070   
  1,516       PPG Industries, Inc.      141,185   
  1,328       Praxair, Inc.      155,456   
  550       Sherwin-Williams Co. (The)      134,673   
     

 

 

  
        1,495,739   
     

 

 

  
   Real Estate—2.4%   
  1,380       American Tower Corp. REIT      161,722   
  1,636       Crown Castle International Corp. REIT      148,860   
  2,406       Equity Residential REIT      148,570   
  697       Public Storage REIT      148,963   
  730       Simon Property Group, Inc. REIT      135,751   
     

 

 

  
        743,866   
     

 

 

  
   Telecommunication Services—1.4%   
  3,747       AT&T, Inc.      137,852   
  3,313       T-Mobile US, Inc.(b)      164,755   
  2,960       Verizon Communications, Inc.      142,376   
     

 

 

  
        444,983   
     

 

 

  
   Utilities—3.5%   
  2,372       American Electric Power Co., Inc.      153,800   
  2,050       Dominion Resources, Inc.      154,160   
  1,908       Duke Energy Corp.      152,678   
  4,545       Exelon Corp.      154,848   
  1,225       NextEra Energy, Inc.      156,800   
  2,472       PG&E Corp.      153,561   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Utilities (continued)   
  2,940       Southern Co. (The)    $ 151,616   
     

 

 

  
        1,077,463   
     

 

 

  
   Total Common Stocks and Other Equity Interests
(Cost $30,078,770)		      30,728,885   
     

 

 

  
     
   Money Market Fund—0.2%   
  54,184       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(c)
(Cost $54,184)		      54,184   
     

 

 

  
   Total Investments
(Cost $30,132,954)—100.1%		      30,783,069   
   Other assets less liabilities—(0.1)%      (32,095 ) 
     

 

 

  
   Net Assets—100.0%    $ 30,750,974   
     

 

 

  

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  Non-income producing security.
(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   51  

 

 

PowerShares Russell Top 200 Pure Growth Portfolio (PXLG)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Consumer Discretionary      28.8   
Information Technology      26.3   
Health Care      17.7   
Consumer Staples      10.5   
Industrials      6.7   
Real Estate      4.7   
Materials      3.3   
Financials      1.9   
Money Market Funds Plus Other Assets Less Liabilities      0.1   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests—99.9%   
   Consumer Discretionary—28.8%   
  5,411       Amazon.com, Inc.(b)    $ 4,273,716   
  22,200       CBS Corp., Class B      1,256,964   
  3,053       Charter Communications, Inc., Class A(b)      762,914   
  18,594       Home Depot, Inc. (The)      2,268,654   
  17,514       Las Vegas Sands Corp.      1,013,710   
  41,213       Lowe’s Cos., Inc.      2,746,846   
  4,178       McDonald’s Corp.      470,318   
  37,913       Netflix, Inc.(b)      4,734,196   
  60,294       NIKE, Inc., Class B      3,025,553   
  3,092       Priceline Group, Inc. (The)(b)      4,558,319   
  64,398       Starbucks Corp.      3,417,602   
  17,609       Tesla Motors, Inc.(b)(c)      3,481,828   
  38,198       TJX Cos., Inc. (The)      2,817,103   
  24,524       VF Corp.      1,329,446   
  10,247       Walt Disney Co. (The)      949,794   
  24,725       Yum! Brands, Inc.      2,133,273   
     

 

 

  
        39,240,236   
     

 

 

  
   Consumer Staples—10.5%   
  1,539       Altria Group, Inc.      101,759   
  18,045       Constellation Brands, Inc., Class A      3,015,680   
  12,270       Costco Wholesale Corp.      1,814,365   
  25,849       Estee Lauder Cos., Inc. (The), Class A      2,252,223   
  3,029       General Mills, Inc.      187,738   
  71,580       Kroger Co. (The)      2,217,548   
  22,285       Monster Beverage Corp.(b)      3,216,617   
  31,604       Sysco Corp.      1,520,785   
     

 

 

  
        14,326,715   
     

 

 

  
   Financials—1.9%   
  7,078       Aon PLC      784,455   
  15,823       Marsh & McLennan Cos., Inc.      1,003,020   
  5,844       S&P Global, Inc.      712,091   
     

 

 

  
        2,499,566   
     

 

 

  
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Health Care—17.7%   
  52,902       AbbVie, Inc.    $ 2,950,874   
  11,832       Alexion Pharmaceuticals, Inc.(b)      1,544,076   
  9,526       Amgen, Inc.      1,344,690   
  14,150       Becton, Dickinson and Co.      2,375,926   
  8,040       Biogen, Inc.(b)      2,252,647   
  32,553       Boston Scientific Corp.(b)      716,166   
  5,453       Bristol-Myers Squibb Co.      277,612   
  36,889       Celgene Corp.(b)      3,769,318   
  3,174       Eli Lilly & Co.      234,368   
  13,571       Gilead Sciences, Inc.      999,233   
  4,663       McKesson Corp.      592,994   
  9,899       Regeneron Pharmaceuticals, Inc.(b)      3,415,353   
  12,994       Stryker Corp.      1,498,858   
  1,278       UnitedHealth Group, Inc.      180,620   
  26,149       Vertex Pharmaceuticals, Inc.(b)      1,983,663   
     

 

 

  
        24,136,398   
     

 

 

  
   Industrials—6.7%   
  6,750       3M Co.      1,115,775   
  22,312       Boeing Co. (The)      3,177,898   
  1,799       FedEx Corp.      313,602   
  2,591       Honeywell International, Inc.      284,181   
  3,815       Illinois Tool Works, Inc.      433,269   
  5,641       Lockheed Martin Corp.      1,389,830   
  2,084       Northrop Grumman Corp.      477,236   
  23,601       Southwest Airlines Co.      945,220   
  9,451       United Parcel Service, Inc., Class B      1,018,440   
     

 

 

  
        9,155,451   
     

 

 

  
   Information Technology—26.3%   
  19,376       Accenture PLC, Class A      2,252,266   
  23,100       Activision Blizzard, Inc.      997,227   
  21,607       Adobe Systems, Inc.(b)      2,322,969   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   52  

 

 

PowerShares Russell Top 200 Pure Growth Portfolio (PXLG) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Information Technology (continued)   
  3,145       Alphabet, Inc., Class C(b)    $ 2,467,378   
  23,946       Automatic Data Processing, Inc.      2,084,739   
  19,724       Broadcom Ltd. (Singapore)      3,358,603   
  20,240       Cognizant Technology Solutions Corp., Class A(b)      1,039,324   
  7,545       eBay, Inc.(b)      215,108   
  25,339       Facebook, Inc., Class A(b)      3,319,156   
  26,272       Intuit, Inc.      2,856,817   
  40,690       MasterCard, Inc., Class A      4,354,644   
  24,526       Microsoft Corp.      1,469,598   
  23,580       PayPal Holdings, Inc.(b)      982,343   
  47,189       salesforce.com, inc.(b)      3,546,725   
  11,990       Texas Instruments, Inc.      849,491   
  44,067       Visa, Inc., Class A      3,635,968   
     

 

 

  
        35,752,356   
     

 

 

  
   Materials—3.3%   
  104       Advansix, Inc.(b)      1,660   
  9,166       E.I. du Pont de Nemours & Co.      630,529   
  11,685       Ecolab, Inc.      1,334,076   
  19,668       PPG Industries, Inc.      1,831,681   
  2,794       Sherwin-Williams Co. (The)      684,139   
     

 

 

  
        4,482,085   
     

 

 

  
   Real Estate—4.7%   
  36,475       American Tower Corp. REIT      4,274,505   
  10,115       Public Storage REIT      2,161,778   
     

 

 

  
        6,436,283   
     

 

 

  
   Total Common Stocks and Other Equity Interests
(Cost $132,651,203)		      136,029,090   
     

 

 

  
     
   Money Market Fund—0.1%   
  110,859       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(d)
(Cost $110,859)		      110,859   
     

 

 

  
   Total Investments
(excluding investments purchased with cash collateral from securities on loan)
(Cost $132,762,062)—100.0%		      136,139,949   
     

 

 

  
     
   Investments Purchased with Cash Collateral from Securities on Loan    
     
   Money Market Fund—2.0%   
  2,726,460       Invesco Government & Agency Portfolio—Institutional Class,
0.29%(d)(e)
(Cost $2,726,460)		      2,726,460   
     

 

 

  
   Total Investments
(Cost $135,488,522)—102.0%		      138,866,409   
   Other assets less liabilities—(2.0)%      (2,743,239 ) 
     

 

 

  
   Net Assets—100.0%    $ 136,123,170   
     

 

 

  

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  Non-income producing security.
(c)  All or a portion of this security was out on loan at October 31, 2016.
(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2H.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   53  

 

 

PowerShares Russell Top 200 Pure Value Portfolio (PXLV)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sector Breakdown
(% of the Fund’s Net Assets) 
as of October 31, 2016		  
Financials      36.8   
Energy      18.1   
Utilities      14.0   
Information Technology      9.1   
Industrials      8.2   
Consumer Staples      4.8   
Consumer Discretionary      3.6   
Health Care      2.3   
Materials      1.6   
Telecommunication Services      1.2   
Real Estate      0.3   
Other Assets Less Liabilities      (0.0)   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests—100.0%    
   Consumer Discretionary—3.6%   
  17,676       Carnival Corp.    $ 867,892   
  80,945       Ford Motor Co.      950,294   
  14,974       General Motors Co.      473,178   
     

 

 

  
        2,291,364   
     

 

 

  
   Consumer Staples—4.8%   
  27,373       Archer-Daniels-Midland Co.      1,192,642   
  16,484       Mondelez International, Inc., Class A      740,791   
  8,004       Procter & Gamble Co. (The)      694,747   
  5,702       Wal-Mart Stores, Inc.      399,254   
     

 

 

  
        3,027,434   
     

 

 

  
   Energy—18.1%   
  24,056       Anadarko Petroleum Corp.      1,429,889   
  6,682       Chevron Corp.      699,939   
  37,361       ConocoPhillips      1,623,335   
  15,736       Exxon Mobil Corp.      1,311,124   
  2,305       Halliburton Co.      106,030   
  96,280       Kinder Morgan, Inc.      1,967,000   
  1,055       Occidental Petroleum Corp.      76,920   
  20,099       Phillips 66      1,631,034   
  731       Pioneer Natural Resources Co.      130,864   
  11,513       Schlumberger Ltd.      900,662   
  26,888       Valero Energy Corp.      1,592,845   
     

 

 

  
        11,469,642   
     

 

 

  
   Financials—36.8%   
  12,710       Aflac, Inc.      875,338   
  924       Allstate Corp. (The)      62,740   
  1,262       American Express Co.      83,822   
  15,881       American International Group, Inc.      979,858   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials (continued)   
  85,084       Bank of America Corp.    $ 1,403,886   
  15,387       Bank of New York Mellon Corp. (The)      665,795   
  22,619       BB&T Corp.      886,665   
  2,861       Berkshire Hathaway, Inc., Class B(b)      412,842   
  417       BlackRock, Inc.      142,297   
  7,805       Capital One Financial Corp.      577,882   
  7,763       Chubb Ltd.      985,901   
  35,801       Citigroup, Inc.      1,759,619   
  7,930       CME Group, Inc., Class A      793,793   
  25,294       Franklin Resources, Inc.      851,396   
  8,419       Goldman Sachs Group, Inc. (The)      1,500,603   
  23,917       JPMorgan Chase & Co.      1,656,491   
  16,673       MetLife, Inc.      782,964   
  54,014       Morgan Stanley      1,813,250   
  18,163       PNC Financial Services Group, Inc. (The)      1,736,383   
  7,857       Prudential Financial, Inc.      666,195   
  13,466       State Street Corp.      945,448   
  22,361       Thomson Reuters Corp.      881,247   
  5,861       Travelers Cos., Inc. (The)      634,043   
  25,141       U.S. Bancorp      1,125,311   
  23,267       Wells Fargo & Co.      1,070,515   
     

 

 

  
        23,294,284   
     

 

 

  
   Health Care—2.3%   
  6,581       Abbott Laboratories      258,238   
  7,700       Medtronic PLC      631,554   
  10,150       Merck & Co., Inc.      596,008   
     

 

 

  
        1,485,800   
     

 

 

  
   Industrials—8.2%   
  15,479       Caterpillar, Inc.      1,291,877   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   54  

 

 

PowerShares Russell Top 200 Pure Value Portfolio (PXLV) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Industrials (continued)   
  40,006       CSX Corp.    $ 1,220,583   
  25,784       Eaton Corp. PLC      1,644,246   
  5,130       Norfolk Southern Corp.      477,090   
  5,150       United Technologies Corp.      526,330   
     

 

 

  
        5,160,126   
     

 

 

  
   Information Technology—9.1%   
  12,102       Cisco Systems, Inc.      371,289   
  29,678       Corning, Inc.      673,987   
  91,199       Hewlett Packard Enterprise Co.      2,049,242   
  43,379       HP, Inc.      628,562   
  48,872       Yahoo!, Inc.(b)      2,030,632   
     

 

 

  
        5,753,712   
     

 

 

  
   Materials—1.6%   
  18,301       Dow Chemical Co. (The)      984,777   
     

 

 

  
   Real Estate—0.3%   
  2,729       Equity Residential REIT      168,516   
     

 

 

  
   Telecommunication Services—1.2%   
  20,531       AT&T, Inc.      755,335   
     

 

 

  
   Utilities—14.0%   
  27,517       American Electric Power Co., Inc.      1,784,202   
  24,236       Duke Energy Corp.      1,939,364   
  38,298       Exelon Corp.      1,304,813   
  8,614       NextEra Energy, Inc.      1,102,592   
  16,606       PG&E Corp.      1,031,565   
  32,961       Southern Co. (The)      1,699,799   
     

 

 

  
        8,862,335   
     

 

 

  
   Total Investments
(Cost $58,528,016)—100.0%		      63,253,325   
   Other assets less liabilities—(0.0)%      (4,657 ) 
     

 

 

  
   Net Assets—100.0%    $ 63,248,668   
     

 

 

  

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

(b) Non-income producing security.

 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   55  

 

 

PowerShares Zacks Micro Cap Portfolio (PZI)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Financials      40.1   
Industrials      11.8   
Information Technology      10.4   
Energy      9.2   
Consumer Discretionary      8.8   
Materials      7.2   
Real Estate      5.9   
Health Care      2.6   
Consumer Staples      1.4   
Telecommunication Services      1.4   
Utilities      1.1   
Pharmaceuticals      0.0   
Money Market Funds Plus Other Assets Less Liabilities      0.1   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests—99.9%   
   Consumer Discretionary—8.8%   
  7,732       A. H. Belo Corp., Series A    $ 49,098   
  1,609       America’s Car-Mart, Inc.(b)(c)      65,728   
  4,889       Beazer Homes USA, Inc.(c)      50,014   
  4,177       Big 5 Sporting Goods Corp.      64,744   
  133       Biglari Holdings, Inc.(c)      58,278   
  8,398       Career Education Corp.(c)      60,382   
  583       Cavco Industries, Inc.(c)      53,869   
  2,669       Century Communities, Inc.(c)      52,579   
  12,449       China XD Plastics Co. Ltd. (China)(c)      54,153   
  3,977       Eldorado Resorts, Inc.(b)(c)      48,122   
  4,457       Entercom Communications Corp., Class A      58,832   
  1,081       Flexsteel Industries, Inc.      45,294   
  4,543       Golden Entertainment, Inc.      52,063   
  3,446       Intrawest Resorts Holdings, Inc.(c)      56,549   
  1,569       Johnson Outdoors, Inc., Class A      56,453   
  4,023       K12, Inc.(c)      43,609   
  10,295       Kandi Technologies Group, Inc.
(China)(b)(c)		      51,475   
  24,899       Kingold Jewelry, Inc.(c)      49,051   
  2,964       Lumber Liquidators Holdings, Inc.(c)      45,972   
  2,453       M/I Homes, Inc.(c)      52,764   
  2,268       Marcus Corp. (The)      60,102   
  2,730       MarineMax, Inc.(c)      54,464   
  3,731       McClatchy Co. (The), Class A(c)      52,607   
  4,923       Modine Manufacturing Co.(c)      53,907   
  2,293       Monarch Casino & Resort, Inc.(c)      54,229   
  844       NACCO Industries, Inc., Class A      61,739   
  3,616       New Media Investment Group, Inc.      52,070   
  4,971       RCI Hospitality Holdings, Inc.      57,713   
  4,580       Regis Corp.(c)      58,074   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Consumer Discretionary (continued)   
  2,151       Shoe Carnival, Inc.    $ 54,571   
  2,146       SodaStream International Ltd. (Israel)(c)      55,538   
  5,968       Spartan Motors, Inc.      51,026   
  1,970       Superior Industries International, Inc.      48,265   
  6,365       Tilly’s, Inc., Class A(c)      59,067   
  9,762       Tuesday Morning Corp.(c)      48,322   
  10,075       Vince Holding Corp.(c)      54,909   
     

 

 

  
        1,945,632   
     

 

 

  
   Consumer Staples—1.4%   
  3,063       Alliance One International, Inc.(c)      45,485   
  6,859       Amira Nature Foods Ltd. (United Arab Emirates)(b)(c)      53,775   
  3,063       Craft Brew Alliance, Inc.(c)      49,161   
  2,420       Omega Protein Corp.(c)      53,966   
  2,017       Seneca Foods Corp., Class A(c)      59,300   
  8,109       SunOpta, Inc. (Canada)(c)      53,925   
     

 

 

  
        315,612   
     

 

 

  
   Energy—9.2%   
  5,839       Aegean Marine Petroleum Network, Inc. (Greece)      50,215   
  16,430       Approach Resources, Inc.(c)      46,826   
  3,763       ARC Logistics Partners LP      56,558   
  13,144       Baytex Energy Corp. (Canada)(c)      50,604   
  9,968       Bill Barrett Corp.(c)      51,734   
  11,170       Cloud Peak Energy, Inc.(c)      68,807   
  3,731       CNX Coal Resources LP      67,158   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   56  

 

 

PowerShares Zacks Micro Cap Portfolio (PZI) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Energy (continued)   
  3,502       Columbia Pipeline Partners LP    $ 56,032   
  3,142       Cone Midstream Partners LP      66,328   
  5,797       Contango Oil & Gas Co.(c)      45,391   
  7,506       Dawson Geophysical Co.(c)      49,164   
  3,609       Dynagas LNG Partners LP (Monaco)      51,500   
  17,337       Eclipse Resources Corp.(c)      47,503   
  15,788       Enduro Royalty Trust      56,837   
  2,028       Enviva Partners LP(b)      55,263   
  2,670       GasLog Partners LP (Monaco)      54,735   
  2,916       Geospace Technologies Corp.(c)      53,742   
  2,868       Golar LNG Partners LP (United
Kingdom)(b)		      58,966   
  18,715       Gran Tierra Energy, Inc. (Colombia)(c)      54,461   
  2,143       Green Plains, Inc.      55,718   
  7,109       Helix Energy Solutions Group, Inc.(c)      61,990   
  10,911       Independence Contract Drilling, Inc.(c)      43,426   
  7,617       JP Energy Partners LP      60,479   
  2,729       KNOT Offshore Partners LP (United Kingdom)      53,488   
  2,375       Natural Gas Services Group, Inc.(c)      51,538   
  5,352       Navios Maritime Midstream Partners LP (Monaco)(b)      65,455   
  7,916       Newpark Resources, Inc.(c)      49,871   
  8,448       Pacific Ethanol, Inc.(c)      62,938   
  14,529       Pioneer Energy Services Corp.(c)      51,578   
  6,843       Renewable Energy Group, Inc.(c)      59,876   
  671       REX American Resources Corp.(c)      53,002   
  7,191       Tesco Corp.      49,258   
  1,342       TransMontaigne Partners LP      52,365   
  4,576       Transocean Partners LLC      51,480   
  3,199       Unit Corp.(c)      54,799   
  3,090       USA Compression Partners LP      58,957   
  2,975       VTTI Energy Partners LP (United Kingdom)      52,658   
     

 

 

  
        2,030,700   
     

 

 

  
   Financials—40.1%   
  4,218       1st Constitution Bancorp      56,943   
  1,610       1st Source Corp.      55,642   
  2,143       ACNB Corp.      57,647   
  3,614       AG Mortgage Investment Trust, Inc. REIT      56,125   
  4,348       Alcentra Capital Corp.      55,654   
  3,119       Ambac Financial Group, Inc.(c)      57,546   
  9,436       America First Multifamily Investors LP      54,729   
  2,035       American National Bankshares, Inc.      55,047   
  11,441       Anworth Mortgage Asset Corp. REIT      56,175   
  7,417       Arbor Realty Trust, Inc. REIT      54,367   
  4,504       Ares Commercial Real Estate Corp. REIT      59,092   
  3,858       Arlington Asset Investment Corp., Class A      55,092   
  2,509       ARMOUR Residential REIT, Inc. REIT      56,879   
  5,552       ASTA Funding, Inc.(c)      54,410   
  9,043       Atlantic Coast Financial Corp.(c)      58,056   
  2,221       Baldwin & Lyons, Inc., Class B      54,637   
  7,700       Bank of Commerce Holdings      56,210   
  2,077       Berkshire Hills Bancorp, Inc.      61,375   
  6,826       BlackRock Capital Investment Corp.      51,332   
  3,832       Blue Hills Bancorp, Inc.      59,588   
  1,987       Bridge Bancorp, Inc.      54,742   
  4,702       Brookline Bancorp, Inc.      60,186   
  1,318       C&F Financial Corp.      55,092   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials (continued)   
  4,014       California First National Bancorp    $ 56,597   
  1,203       Camden National Corp.      39,723   
  1,771       Capital Bank Financial Corp., Class A      58,000   
  4,348       Capitala Finance Corp.      56,002   
  6,006       Capstead Mortgage Corp. REIT      57,117   
  3,220       Centerstate Banks, Inc.      60,150   
  2,285       Central Pacific Financial Corp.      58,565   
  3,609       Central Valley Community Bancorp      51,681   
  3,024       Centrue Financial Corp.(c)      58,968   
  3,294       Cherry Hill Mortgage Investment Corp. REIT      53,231   
  4,003       Civista Bancshares, Inc.      59,004   
  2,832       Commerce Union Bancshares, Inc.      57,376   
  16,335       Cowen Group, Inc., Class A(c)      53,089   
  3,368       Dime Community Bancshares, Inc.      54,562   
  3,500       Donegal Group, Inc., Class A      52,675   
  7,679       Dynex Capital, Inc. REIT      52,755   
  7,030       Eastern Virginia Bankshares, Inc.      57,997   
  3,380       Ellington Financial LLC      53,607   
  4,351       Ellington Residential Mortgage REIT      54,736   
  2,034       EMC Insurance Group, Inc.      49,528   
  1,813       Enterprise Financial Services Corp.      60,010   
  4,126       ESSA Bancorp, Inc.      55,618   
  5,233       EZCORP, Inc., Class A(c)      51,022   
  1,910       Farmers Capital Bank Corp.      59,974   
  5,383       Farmers National Banc Corp.      56,521   
  1,417       Federal Agricultural Mortgage Corp., Class C      57,856   
  3,577       Fidus Investment Corp.(b)      53,583   
  9,778       Fifth Street Finance Corp.      52,703   
  6,610       Fifth Street Senior Floating Rate Corp.      56,780   
  11,214       First BanCorp/Puerto Rico(c)      57,528   
  2,910       First Bancorp/Southern Pines NC      57,531   
  2,515       First Busey Corp.      58,122   
  5,686       First Commonwealth Financial Corp.      57,770   
  2,287       First Community Bancshares, Inc.      51,801   
  3,646       First Community Corp./SC      55,055   
  1,265       First Defiance Financial Corp.      49,942   
  1,409       First Financial Corp.      56,501   
  4,052       First Financial Northwest, Inc.      64,427   
  1,726       First of Long Island Corp. (The)      55,146   
  2,436       Flushing Financial Corp.      52,179   
  4,603       FNFV Group(c)      55,466   
  1,535       Franklin Financial Network, Inc.(c)      50,041   
  7,012       Gladstone Capital Corp.      54,553   
  6,386       Gladstone Investment Corp.      54,473   
  1,909       Global Indemnity PLC, Class A(c)      57,346   
  2,625       Goldman Sachs BDC, Inc.      57,960   
  3,062       Golub Capital BDC, Inc.      54,197   
  4,132       Great Ajax Corp. REIT      57,270   
  2,849       Greenlight Capital Re Ltd., Class A(c)      56,695   
  2,389       Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT      54,613   
  4,193       Hercules Capital, Inc.      57,486   
  3,166       Heritage Financial Corp.      58,254   
  2,274       HomeStreet, Inc.(c)      62,649   
  1,934       Horizon Bancorp      56,086   
  4,165       Horizon Technology Finance Corp.      53,728   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   57  

 

 

PowerShares Zacks Micro Cap Portfolio (PZI) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials (continued)   
  2,306       Houlihan Lokey, Inc., Class A    $ 56,197   
  3,358       Independence Holding Co.      58,933   
  1,304       Independent Bank Group, Inc.      62,983   
  1,481       INTL FCStone, Inc.(c)      53,168   
  3,368       Investment Technology Group, Inc.      51,564   
  571       Investors Title Co.      54,816   
  4,272       Ladder Capital Corp., Class A REIT      54,169   
  4,114       Lakeland Bancorp, Inc.      58,213   
  6,379       MBT Financial Corp.      56,135   
  7,359       Medley Capital Corp.      55,487   
  2,106       Mercantile Bank Corp.      57,957   
  3,675       Meridian Bancorp, Inc.      58,616   
  929       Meta Financial Group, Inc.      68,049   
  2,060       Middleburg Financial Corp.      62,459   
  3,111       MMA Capital Management LLC(c)      54,754   
  3,628       Monroe Capital Corp.      53,731   
  3,292       Mtge Investment Corp. REIT      56,129   
  2,428       National Bank Holdings Corp., Class A      59,098   
  4,105       New Mountain Finance Corp.(b)      54,596   
  9,404       New York Mortgage Trust, Inc. REIT(b)      55,578   
  6,045       NewStar Financial, Inc.(c)      58,818   
  7,536       NMI Holdings, Inc., Class A(c)      57,650   
  3,589       Northfield Bancorp, Inc.      59,039   
  2,945       OceanFirst Financial Corp.      60,903   
  5,779       OFG Bancorp      61,546   
  4,298       OFS Capital Corp.      56,519   
  2,725       Old Point Financial Corp.      55,862   
  5,403       Orchid Island Capital, Inc. REIT      56,894   
  2,816       Orrstown Financial Services, Inc.      58,854   
  3,346       Owens Realty Mortgage, Inc. REIT      61,064   
  2,170       Pacific Premier Bancorp, Inc.(c)      56,094   
  7,012       Park Sterling Corp.      60,373   
  3,699       Parke Bancorp, Inc.      57,704   
  4,262       Pennantpark Floating Rate Capital Ltd.      55,278   
  7,456       PennantPark Investment Corp.      56,144   
  3,340       PennyMac Financial Services, Inc., Class A(c)      57,114   
  2,757       Peoples Bancorp of North Carolina, Inc.      57,208   
  2,318       Peoples Bancorp, Inc.      57,417   
  2,833       People’s Utah Bancorp      56,802   
  3,977       PHH Corp.(c)      57,746   
  4,889       PICO Holdings, Inc.(c)      59,157   
  1,200       Piper Jaffray Cos.(c)      67,860   
  3,352       Premier Financial Bancorp, Inc.      56,381   
  3,611       Provident Bancorp, Inc.(c)      57,957   
  1,825       QCR Holdings, Inc.      59,312   
  2,664       Regional Management Corp.(c)      59,327   
  1,872       Republic Bancorp, Inc., Class A      59,230   
  4,450       Resource Capital Corp. REIT      55,135   
  846       Safety Insurance Group, Inc.      57,274   
  1,883       Sandy Spring Bancorp, Inc.      59,691   
  3,226       Saratoga Investment Corp.      58,713   
  3,546       Seacoast Banking Corp. of Florida(c)      61,736   
  7,030       Select Bancorp, Inc.(c)      56,943   
  4,860       Shore Bancshares, Inc.      62,062   
  4,295       SI Financial Group, Inc.      56,050   
  3,482       SmartFinancial, Inc.(c)      59,264   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials (continued)   
  2,777       Solar Capital Ltd.    $ 55,873   
  3,491       Solar Senior Capital Ltd.      54,110   
  1,785       Southside Bancshares, Inc.      58,227   
  5,195       Stellus Capital Investment Corp.      56,626   
  2,964       Summit Financial Group, Inc.      58,598   
  3,487       TCP Capital Corp.      55,757   
  5,918       THL Credit, Inc.      54,505   
  3,646       Timberland Bancorp, Inc.      60,013   
  2,852       Triangle Capital Corp.(b)      54,815   
  2,153       TriCo Bancshares      56,667   
  5,342       Triplepoint Venture Growth Bdc Corp.      57,213   
  3,611       TriState Capital Holdings, Inc.(c)      63,734   
  8,063       TrustCo Bank Corp. NY      56,441   
  7,949       United Community Financial Corp.      58,425   
  4,177       United Financial Bancorp, Inc.      61,444   
  3,374       United Insurance Holdings Corp.      48,923   
  4,547       Unity Bancorp, Inc.      55,928   
  2,424       Univest Corp. of Pennsylvania      57,570   
  2,318       WashingtonFirst Bankshares, Inc.      56,675   
  3,356       Waterstone Financial, Inc.      56,884   
  1,182       World Acceptance Corp.(c)      56,169   
  3,933       ZAIS Financial Corp. REIT      52,702   
     

 

 

  
        8,847,867   
     

 

 

  
   Health Care—2.6%   
  3,000       Amphastar Pharmaceuticals, Inc.(c)      54,420   
  3,323       AngioDynamics, Inc.(c)      52,969   
  3,246       CryoLife, Inc.      55,182   
  11,126       Digirad Corp.      48,954   
  2,410       Evolent Health, Inc., Class A(c)      50,730   
  2,161       Exactech, Inc.(c)      52,188   
  7,182       Lion Biotechnologies, Inc.(c)      44,888   
  4,117       Minerva Neurosciences, Inc.(c)      45,905   
  7,163       OraSure Technologies, Inc.(c)      53,794   
  5,602       SciClone Pharmaceuticals, Inc.(c)      50,138   
  2,628       Triple-S Management Corp.,
Class B(c)		      54,347   
     

 

 

  
        563,515   
     

 

 

  
   Industrials—11.8%   
  1,884       AAR Corp.      60,608   
  2,981       Aegion Corp.(c)      55,178   
  2,335       Aerovironment, Inc.(c)      56,017   
  3,997       Air Transport Services Group, Inc.(c)      52,880   
  875       Alamo Group, Inc.      56,805   
  1,390       American Railcar Industries, Inc.      51,124   
  6,322       Aqua Metals, Inc.(b)(c)      56,582   
  26,787       Ballard Power Systems, Inc. (Canada)(c)      52,770   
  5,110       CBIZ, Inc.(c)      56,465   
  5,190       CECO Environmental Corp.      51,381   
  1,761       Chart Industries, Inc.(c)      48,850   
  966       CIRCOR International, Inc.      51,951   
  9,916       Commercial Vehicle Group, Inc.(c)      45,019   
  2,077       CRA International, Inc.(c)      64,678   
  2,591       Ducommun, Inc.(c)      49,333   
  2,457       Echo Global Logistics, Inc.(c)      52,088   
  1,568       Encore Wire Corp.      53,547   
  3,750       ExOne Co. (The)(b)(c)      44,737   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   58  

 

 

PowerShares Zacks Micro Cap Portfolio (PZI) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Industrials (continued)   
  4,786       Gencor Industries, Inc.(c)    $ 57,911   
  5,219       Hardinge, Inc.      50,624   
  8,887       Hudson Technologies, Inc.(c)      54,211   
  9,898       Huttig Building Products, Inc.(c)      47,807   
  1,292       ICF International, Inc.(c)      59,949   
  3,305       IES Holdings, Inc.(c)      49,410   
  6,058       InnerWorkings, Inc.(c)      53,371   
  1,551       Insteel Industries, Inc.      41,722   
  1,089       Kadant, Inc.      56,247   
  2,995       Kelly Services, Inc., Class A      56,096   
  3,138       Kelly Services, Inc., Class B      57,425   
  5,253       KEYW Holding Corp. (The)(c)      55,104   
  8,324       Kratos Defense & Security Solutions, Inc.(c)      46,781   
  6,793       Layne Christensen Co.(c)      58,216   
  1,106       Lydall, Inc.(c)      51,706   
  2,703       Marten Transport Ltd.      55,412   
  2,418       Mistras Group, Inc.(c)      50,633   
  2,844       Navigant Consulting, Inc.(c)      66,550   
  14,382       NL Industries, Inc.(c)      46,022   
  1,751       NV5 Global, Inc.(c)      50,079   
  1,547       Park-Ohio Holdings Corp.      49,427   
  1,437       Powell Industries, Inc.      50,855   
  1,303       Preformed Line Products Co.      56,055   
  2,830       SPX Corp.(c)      53,798   
  7,388       Sterling Construction Co., Inc.(c)      53,785   
  2,962       Supreme Industries, Inc., Class A      36,107   
  5,646       Titan International, Inc.      57,533   
  1,153       Veritiv Corp.(c)      62,204   
  1,693       VSE Corp.      48,826   
  3,930       Wabash National Corp.(c)      44,213   
  2,439       Willis Lease Finance Corp.(c)      64,902   
     

 

 

  
        2,602,994   
     

 

 

  
   Information Technology—10.4%   
  2,989       ADTRAN, Inc.      54,250   
  2,586       Alpha & Omega Semiconductor
Ltd.(c)		      54,642   
  10,525       AudioCodes Ltd. (Israel)(c)      54,941   
  11,441       AXT, Inc.(c)      58,921   
  5,703       Care.com, Inc.(c)      51,783   
  24,789       Ceragon Networks Ltd. (Israel)(c)      63,708   
  1,607       CEVA, Inc.(c)      48,290   
  4,687       Control4 Corp.(c)      52,916   
  2,336       Cyberoptics Corp.(c)      56,414   
  5,327       Datalink Corp.(c)      50,500   
  9,951       Demand Media, Inc.(c)      57,716   
  10,202       Electro Scientific Industries, Inc.(c)      52,846   
  6,245       Exar Corp.(c)      56,330   
  15,359       EXFO, Inc. (Canada)(c)      66,812   
  5,253       FormFactor, Inc.(c)      47,146   
  24,789       GigPeak, Inc.(c)      58,750   
  4,416       Kulicke & Soffa Industries, Inc. (Singapore)(c)      58,468   
  8,722       Lattice Semiconductor Corp.(c)      52,943   
  5,238       Liquidity Services, Inc.(c)      46,356   
  9,235       MeetMe, Inc.(c)      45,159   
  7,669       Mitel Networks Corp.(c)      51,306   
  2,576       Nanometrics, Inc.(c)      53,813   
  3,467       NeoPhotonics Corp.(c)      48,538   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Information Technology (continued)   
  3,311       Novanta, Inc.(c)    $ 57,777   
  2,712       PCM, Inc.(c)      57,494   
  3,199       PDF Solutions, Inc.(c)      63,180   
  2,849       Perficient, Inc.(c)      53,020   
  5,590       Photronics, Inc.(c)      54,223   
  10,745       Radisys Corp.(c)      44,807   
  5,809       RetailMeNot, Inc.(c)      52,571   
  6,280       Rightside Group Ltd.(c)      52,815   
  1,758       Rofin-Sinar Technologies, Inc.(c)      57,223   
  3,202       Rudolph Technologies, Inc.(c)      57,956   
  1,571       ScanSource, Inc.(c)      54,985   
  1,398       Silicom Ltd. (Israel)      52,006   
  7,312       Sonus Networks, Inc.(c)      42,336   
  4,958       TTM Technologies, Inc.(c)      65,198   
  7,983       Ultra Clean Holdings, Inc.(c)      67,856   
  2,483       Ultratech, Inc.(c)      52,863   
  9,829       USA Technologies, Inc.(c)      44,230   
  3,530       Vishay Precision Group, Inc.(c)      55,421   
  14,237       YuMe, Inc.(c)      53,389   
     

 

 

  
        2,281,898   
     

 

 

  
   Materials—7.2%   
  3,528       American Vanguard Corp.      53,626   
  13,718       Asanko Gold, Inc. (Canada)(c)      50,757   
  27,304       Avino Silver & Gold Mines Ltd. (Canada)(c)      53,243   
  8,287       Century Aluminum Co.(c)      60,578   
  1,860       Ciner Resources LP      55,930   
  5,887       Dominion Diamond Corp. (Canada)      50,098   
  7,690       Fortuna Silver Mines, Inc.
(Canada)(c)		      52,600   
  5,124       FutureFuel Corp.      56,159   
  7,265       Gold Resource Corp.      41,265   
  21,822       Gold Standard Ventures Corp. (Canada)(c)      52,155   
  26,914       Gulf Resources, Inc. (China)(c)      58,134   
  3,746       Hi-Crush Partners LP(c)      63,495   
  15,317       Hudbay Minerals, Inc. (Canada)      65,097   
  2,023       KMG Chemicals, Inc.      54,904   
  1,639       Kraton Corp.(c)      42,008   
  18,351       Nevsun Resources Ltd. (Canada)      53,401   
  2,628       Olympic Steel, Inc.      60,681   
  7,021       OMNOVA Solutions, Inc.(c)      53,360   
  20,258       Platinum Group Metals Ltd. (Canada)(c)      35,046   
  5,530       Richmont Mines, Inc. (Canada)(c)      51,982   
  11,192       Sandstorm Gold Ltd. (Canada)(c)      53,945   
  2,702       Schnitzer Steel Industries, Inc., Class A      65,253   
  5,051       Seabridge Gold, Inc. (Canada)(c)      55,308   
  3,709       SunCoke Energy Partners LP(b)      64,166   
  7,437       SunCoke Energy, Inc.      75,932   
  5,466       TimkenSteel Corp.(c)      56,026   
  3,094       Tredegar Corp.      57,239   
  6,130       Tronox Ltd., Class A      49,653   
  2,520       Westlake Chemical Partners LP      53,172   
     

 

 

  
        1,595,213   
     

 

 

  
   Pharmaceuticals—0.0%   
  27,615       Chelsea Therapeutics International Ltd.(c)      2,209   
     

 

 

  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   59  

 

 

PowerShares Zacks Micro Cap Portfolio (PZI) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Real Estate—5.9%   
  4,141       Armada Hoffler Properties, Inc. REIT    $ 55,614   
  9,547       Ashford Hospitality Trust, Inc. REIT      55,468   
  3,415       AV Homes, Inc.(c)      54,469   
  4,318       Bluerock Residential Growth REIT, Inc., Class A REIT      53,543   
  6,961       BRT Realty Trust REIT(c)      53,600   
  4,856       CatchMark Timber Trust, Inc., Class A REIT      51,182   
  7,742       Cedar Realty Trust, Inc. REIT      52,413   
  2,587       Community Healthcare Trust, Inc. REIT      57,897   
  1,913       CorEnergy Infrastructure Trust, Inc. REIT      51,804   
  2,936       Easterly Government Properties, Inc. REIT      55,696   
  5,037       Farmland Partners, Inc. REIT(b)      53,594   
  4,827       Forestar Group, Inc.(c)      53,097   
  2,356       Getty Realty Corp. REIT      53,552   
  3,003       Gladstone Commercial Corp. REIT      53,604   
  6,117       Independence Realty Trust, Inc. REIT      50,955   
  5,317       iStar, Inc. REIT(c)      59,178   
  7,118       Nam Tai Property, Inc. (China)      57,656   
  2,677       National Storage Affiliates Trust REIT      52,416   
  2,857       NexPoint Residential Trust, Inc. REIT      53,254   
  2,322       One Liberty Properties, Inc. REIT      54,706   
  4,177       Preferred Apartment Communities, Inc., Class A REIT      54,384   
  3,149       Silver Bay Realty Trust Corp. REIT      52,746   
  3,649       Tier REIT, Inc. REIT      53,823   
  4,017       Whitestone REIT      53,426   
     

 

 

  
        1,298,077   
     

 

 

  
   Telecommunication Services—1.4%   
  2,542       Hawaiian Telcom Holdco, Inc.(c)      52,162   
  4,348       Internet Gold-Golden Lines Ltd. (Israel)(c)      52,220   
  7,100       Iridium Communications, Inc.(c)      57,865   
  5,541       ORBCOMM, Inc.(c)      49,481   
  3,267       Spok Holdings, Inc.      58,969   
  5,477       Windstream Holdings, Inc.      42,994   
     

 

 

  
        313,691   
     

 

 

  
   Utilities—1.1%   
  3,901       8point3 Energy Partners LP, Class A      59,686   
  1,130       Connecticut Water Service, Inc.      58,839   
  1,593       Middlesex Water Co.      57,507   
  1,293       SJW Corp.      65,594   
     

 

 

  
        241,626   
     

 

 

  
   Total Common Stocks and Other Equity Interests
(Cost $20,625,288)		      22,039,034   
     

 

 

  
     
   Money Market Fund—0.4%   
  77,773       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(d)
(Cost $77,773)		      77,773   
     

 

 

  
   Total Investments
(excluding investments purchased with cash collateral from securities on loan)
(Cost $20,703,061)—100.3%		      22,116,807   
     

 

 

  
     
Number
of Shares		           Value  
   Investments Purchased with Cash Collateral from Securities on Loan    
     
   Money Market Fund—2.2%   
  488,643       Invesco Government & Agency Portfolio—Institutional Class,
0.29%(d)(e)
(Cost $488,643)		    $ 488,643   
     

 

 

  
   Total Investments
(Cost $21,191,704)—102.5%		      22,605,450   
   Other assets less liabilities—(2.5)%      (559,775 ) 
     

 

 

  
   Net Assets—100.0%    $ 22,045,675   
     

 

 

  

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  All or a portion of this security was out on loan at October 31, 2016.
(c)  Non-income producing security.
(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2H.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   60  

 

 

 

(This Page Intentionally Left Blank)

 

Statements of Assets and Liabilities

October 31, 2016

(Unaudited)

 

    PowerShares
Dynamic Large
Cap Growth
Portfolio (PWB)		      PowerShares
Dynamic Large
Cap Value
Portfolio (PWV)		      PowerShares
Russell 2000
Equal Weight
Portfolio (EQWS)		      PowerShares
Russell 2000
Pure Growth
Portfolio (PXSG)		  
Assets:           

Unaffiliated investments, at value(a)

   $ 418,944,592       $ 1,001,381,413       $ 11,926,174       $ 26,641,906   

Affiliated investments, at value

     285,266         —         84,421         2,835,393   
 

 

 

     

 

 

     

 

 

     

 

 

  

Total investments, at value

     419,229,858         1,001,381,413         12,010,595         29,477,299   
 

 

 

     

 

 

     

 

 

     

 

 

  

Receivables:

           

Dividends

     333,137         1,252,946         4,113         556   

Expenses absorbed

     —         —         7,212         244   

Investments sold

     —         —         3,996         —   

Foreign tax reclaims

     —         —         —         —   

Securities lending

     —         —         —         5,738   

Other assets

     848         2,515         1,365         978   
 

 

 

     

 

 

     

 

 

     

 

 

  

Total Assets

     419,563,843         1,002,636,874         12,027,281         29,484,815   
 

 

 

     

 

 

     

 

 

     

 

 

  
Liabilities:           

Due to custodian

     —         413,539         —         —   

Payables:

           

Investments purchased

     —         —         16,022         —   

Collateral upon return of securities loaned

     —         —         15,300         2,769,956   

Shares repurchased

     —         —         —         —   

Expenses recaptured

     —         —         —         —   

Accrued advisory fees

     179,795         425,338         —         —   

Accrued trustees’ and officer’s fees

     34,592         46,965         15,625         17,013   

Accrued expenses

     141,200         296,369         51,687         54,687   
 

 

 

     

 

 

     

 

 

     

 

 

  

Total Liabilities

     355,587         1,182,211         98,634         2,841,656   
 

 

 

     

 

 

     

 

 

     

 

 

  
Net Assets   $ 419,208,256       $ 1,001,454,663       $ 11,928,647       $ 26,643,159   
 

 

 

     

 

 

     

 

 

     

 

 

  
Net Assets Consist of:           

Shares of beneficial interest

   $ 635,502,855       $ 1,157,626,824       $ 22,153,416       $ 61,608,270   

Undistributed net investment income

     404,669         2,458,785         15,587         541   

Undistributed net realized gain (loss)

     (242,626,785 )       (205,511,722 )       (10,236,255 )       (35,087,567 ) 

Net unrealized appreciation (depreciation)

     25,927,517         46,880,776         (4,101 )       121,915   
 

 

 

     

 

 

     

 

 

     

 

 

  
Net Assets   $ 419,208,256       $ 1,001,454,663       $ 11,928,647       $ 26,643,159   
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding (unlimited amount authorized, $0.01 par value)

     13,500,000         32,300,000         350,000         1,100,000   

Net asset value

   $ 31.05       $ 31.00       $ 34.08       $ 24.22   
 

 

 

     

 

 

     

 

 

     

 

 

  

Market price

   $ 31.08       $ 31.03       $ 34.12       $ 24.24   
 

 

 

     

 

 

     

 

 

     

 

 

  

Unaffiliated investments, at cost

   $ 393,017,075       $ 954,500,637       $ 11,930,158       $ 26,519,991   
 

 

 

     

 

 

     

 

 

     

 

 

  

Affiliated investments, at cost

   $ 285,266       $ —       $ 84,538       $ 2,835,393   
 

 

 

     

 

 

     

 

 

     

 

 

  

Total investments, at cost

   $ 393,302,341       $ 954,500,637       $ 12,014,696       $ 29,355,384   
 

 

 

     

 

 

     

 

 

     

 

 

  

(a) Includes securities on loan with an aggregate value of

   $ —       $ —       $ 14,568       $ 2,702,458   
 

 

 

     

 

 

     

 

 

     

 

 

  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   62  

 

 

 

PowerShares
Russell 2000
Pure Value
Portfolio (PXSV)		     PowerShares
Russell Midcap
Equal Weight
Portfolio (EQWM)		     PowerShares
Russell Midcap
Pure Growth
Portfolio (PXMG)		     PowerShares
Russell Midcap
Pure Value
Portfolio (PXMV)		     PowerShares
Russell Top 200
Equal Weight
Portfolio (EQWL)		     PowerShares
Russell Top 200
Pure Growth
Portfolio (PXLG)		     PowerShares
Russell Top 200
Pure Value
Portfolio (PXLV)		     PowerShares
Zacks Micro Cap
Portfolio (PZI)		  
             
$ 61,255,721      $ 23,545,315      $ 59,993,790      $ 46,449,785      $ 30,728,885      $ 136,029,090      $ 63,253,325      $ 22,039,034   
  4,433,378        392,168        1,129,561        2,243,088        54,184        2,837,319        —        566,416   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  65,689,099        23,937,483        61,123,351        48,692,873        30,783,069        138,866,409        63,253,325        22,605,450   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
             
  29,000        12,567        3,664        23,465        28,614        101,418        86,401        10,327   
  —        1,685        —        —        2,087        —        —        —   
  —        —        —        —        —        1,665,383        —        1,994   
  326        —        —        —        744        —        —        —   
  11,288        1,491        1,908        2,927        —        3,888        —        1,301   
  989        199        1,360        993        977        1,042        1,011        887   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  65,730,702        23,953,425        61,130,283        48,720,258        30,815,491        140,638,140        63,340,737        22,619,959   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
             
  —        —        —        —        —        —        11,355        —   
             
  —        —        —        —        —        —        —        —   
  4,030,820        316,446        1,051,355        2,176,802        —        2,726,460        —        488,643   
  —        —        —        —        —        1,666,414        —        —   
  —        —        —        —        —        734        —        —   
  9,225        —        10,762        5,735        —        34,430        10,996        2,666   
  18,969        16,137        24,049        17,687        16,762        13,331        11,377        18,361   
  72,238        53,778        61,337        55,238        47,755        73,601        58,341        64,614   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  4,131,252        386,361        1,147,503        2,255,462        64,517        4,514,970        92,069        574,284   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
$ 61,599,450      $ 23,567,064      $ 59,982,780      $ 46,464,796      $ 30,750,974      $ 136,123,170      $ 63,248,668      $ 22,045,675   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
             
$ 103,597,424      $ 36,353,631      $ 227,740,366      $ 84,668,448      $ 40,908,822      $ 139,299,993      $ 59,173,888      $ 89,905,164   
  435,322        55,944        9,823        231,494        62,731        137,595        250,394        2,611   
  (42,683,787 )      (11,967,012 )      (169,343,129 )      (38,380,268 )      (10,870,694 )      (6,692,305 )      (900,923 )      (69,275,846 ) 
  250,491        (875,499 )      1,575,720        (54,878 )      650,115        3,377,887        4,725,309        1,413,746   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
$ 61,599,450      $ 23,567,064      $ 59,982,780      $ 46,464,796      $ 30,750,974      $ 136,123,170      $ 63,248,668      $ 22,045,675   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  2,450,000        600,000        2,000,000        1,650,000        750,000        4,100,000        2,000,000        1,350,000   
$ 25.14      $ 39.28      $ 29.99      $ 28.16      $ 41.00      $ 33.20      $ 31.62      $ 16.33   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
$ 25.18      $ 39.31      $ 30.01      $ 28.18      $ 41.03      $ 33.22      $ 31.65      $ 16.32   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
$ 61,002,813      $ 24,416,206      $ 58,418,070      $ 46,504,663      $ 30,078,770      $ 132,651,203      $ 58,528,016      $ 20,625,288   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
$ 4,435,772      $ 396,776      $ 1,129,561      $ 2,243,088      $ 54,184      $ 2,837,319      $ —      $ 566,416   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
$ 65,438,585      $ 24,812,982      $ 59,547,631      $ 48,747,751      $ 30,132,954      $ 135,488,522      $ 58,528,016      $ 21,191,704   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
$ 3,820,776      $ 305,867      $ 1,021,967      $ 2,103,067      $ —      $ 2,642,661      $ —      $ 471,883   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

 

   63  

 

 

Statements of Operations

For the six months ended October 31, 2016

(Unaudited)

 

    PowerShares
Dynamic Large
Cap Growth
Portfolio (PWB)		      PowerShares
Dynamic Large
Cap Value
Portfolio (PWV)		      PowerShares
Russell 2000
Equal Weight
Portfolio (EQWS)		      PowerShares
Russell 2000
Pure Growth
Portfolio (PXSG)		  
Investment Income:           

Unaffiliated dividend income

   $ 3,164,260       $ 14,372,214       $ 83,955       $ 51,365   

Affiliated dividend income

     494         1,328         275         121   

Securities lending income

     —         —         —         43,853   

Foreign withholding tax

     (795 )       —         (41 )       —   
 

 

 

     

 

 

     

 

 

     

 

 

  

Total Income

     3,163,959         14,373,542         84,189         95,339   
 

 

 

     

 

 

     

 

 

     

 

 

  
Expenses:           

Advisory fees

     1,101,811         2,537,231         16,584         40,511   

Sub-licensing fees

     66,108         152,232         1,160         2,835   

Accounting & administration fees

     40,095         93,591         18,015         18,053   

Professional fees

     14,757         18,759         13,832         14,022   

Trustees’ and officer’s fees

     7,734         12,765         3,942         4,066   

Custodian & transfer agent fees

     4,466         16,036         14,582         9,174   

Recapture (Note 3)

     —         —         —         —   

Other expenses

     19,257         32,964         6,193         7,106   
 

 

 

     

 

 

     

 

 

     

 

 

  

Total Expenses

     1,254,228         2,863,578         74,308         95,767   
 

 

 

     

 

 

     

 

 

     

 

 

  

Less: Waivers

     (252 )       (697 )       (57,772 )       (41,343 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Net Expenses

     1,253,976         2,862,881         16,536         54,424   
 

 

 

     

 

 

     

 

 

     

 

 

  

Net Investment Income

     1,909,983         11,510,661         67,653         40,915   
 

 

 

     

 

 

     

 

 

     

 

 

  
Realized and Unrealized Gain (Loss):           

Net realized gain (loss) from:

           

Investment securities

     (9,219,897 )       (18,206,580 )       (258,909 )       (3,699,095 ) 

In-kind redemptions

     22,870,220         52,780,198         392,448         1,548,497   

Foreign currencies

     —         —         —         —   
 

 

 

     

 

 

     

 

 

     

 

 

  

Net realized gain (loss)

     13,650,323         34,573,618         133,539         (2,150,598 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Change in net unrealized appreciation (depreciation) on:

           

Investment securities

     (10,106,043 )       (1,550,676 )       504,866         3,109,786   

Foreign currencies

     —         —         —         —   
 

 

 

     

 

 

     

 

 

     

 

 

  

Net change in unrealized appreciation (depreciation)

     (10,106,043 )       (1,550,676 )       504,866         3,109,786   
 

 

 

     

 

 

     

 

 

     

 

 

  

Net realized and unrealized gain

     3,544,280         33,022,942         638,405         959,188   
 

 

 

     

 

 

     

 

 

     

 

 

  

Net increase in net assets resulting from operations

   $ 5,454,263       $ 44,533,603       $ 706,058       $ 1,000,103   
 

 

 

     

 

 

     

 

 

     

 

 

  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   64  

 

 

 

PowerShares
Russell 2000
Pure Value
Portfolio (PXSV)		     PowerShares
Russell Midcap
Equal Weight
Portfolio (EQWM)		     PowerShares
Russell Midcap
Pure Growth
Portfolio (PXMG)		     PowerShares
Russell Midcap
Pure Value
Portfolio (PXMV)		     PowerShares
Russell Top 200
Equal Weight
Portfolio (EQWL)		     PowerShares
Russell Top 200
Pure Growth
Portfolio (PXLG)		     PowerShares
Russell Top 200
Pure Value
Portfolio (PXLV)		     PowerShares
Zacks Micro Cap
Portfolio (PZI)		  
             
$ 802,883      $ 196,488      $ 160,247      $ 594,661      $ 339,309      $ 865,820      $ 974,469      $ 250,049   
  16,961        363        158        90        129        332        110        142   
  80,451        9,193        8,929        19,477        —        3,888        —        11,356   
  (86 )      (205 )      —        (558 )      (400 )      —        (1,977 )      (512 ) 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  900,209        205,839        169,334        613,670        339,038        870,040        972,602        261,035   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
             
  89,457        30,129        91,800        67,079        40,450        216,369        96,508        55,284   
  6,267        2,108        6,423        4,698        2,830        15,629        10,269        11,057   
  18,141        18,108        18,058        18,088        18,054        18,022        18,052        17,978   
  13,729        13,725        13,823        13,589        13,903        14,195        13,754        14,435   
  4,355        4,042        4,395        4,228        4,130        5,140        4,421        4,027   
  14,454        8,448        4,261        6,799        4,958        3,621        3,968        8,716   
  —        —        —        —        —        9,642        —        —   
  9,185        6,832        8,776        7,882        6,888        8,374        6,688        7,347   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  155,588        83,392        147,536        122,363        91,213        290,992        153,660        118,844   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  (35,357 )      (53,319 )      (24,151 )      (32,199 )      (50,823 )      (163 )      (23,926 )      (41,515 ) 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  120,231        30,073        123,385        90,164        40,390        290,829        129,734        77,329   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  779,978        175,766        45,949        523,506        298,648        579,211        842,868        183,706   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
             
             
  (8,000,454 )      (738,430 )      (8,801,527 )      (3,613,230 )      (455,890 )      (9,756,506 )      (2,116,703 )      212,433   
  4,556,053        —        1,558,047        3,176,847        727,972        5,606,446        2,519,327        994,913   
  (6 )      —        —        —        —        —        —        —   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  (3,444,407 )      (738,430 )      (7,243,480 )      (436,383 )      272,082        (4,150,060 )      402,624        1,207,346   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
             
  5,472,581        940,694        8,551,612        1,351,554        679,689        4,668,875        3,278,988        (126,873 ) 
  (23 )      —        —        —        —        —        —        —   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  5,472,558        940,694        8,551,612        1,351,554        679,689        4,668,875        3,278,988        (126,873 ) 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  2,028,151        202,264        1,308,132        915,171        951,771        518,815        3,681,612        1,080,473   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
$ 2,808,129      $ 378,030      $ 1,354,081      $ 1,438,677      $ 1,250,419      $ 1,098,026      $ 4,524,480      $ 1,264,179   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

 

   65  

 

 

Statements of Changes in Net Assets

For the six months ended October 31, 2016 and the year ended April 30, 2016

(Unaudited)

 

    PowerShares Dynamic
Large Cap Growth Portfolio (PWB)		      PowerShares Dynamic
Large Cap Value Portfolio (PWV)		  
    October 31, 2016      April 30, 2016      October 31, 2016      April 30, 2016  
Operations:           

Net investment income

   $ 1,909,983       $ 2,394,933       $ 11,510,661       $ 24,237,976   

Net realized gain (loss)

     13,650,323         6,768,820         34,573,618         (23,521,415 ) 

Net change in unrealized appreciation (depreciation)

     (10,106,043 )       1,296,040         (1,550,676 )       (24,474,487 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets resulting from operations

     5,454,263         10,459,793         44,533,603         (23,757,926 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
Distributions to Shareholders from:           

Net investment income

     (2,044,658 )       (2,182,044 )       (12,537,869 )       (23,938,985 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
Shareholder Transactions:           

Proceeds from shares sold

     158,465,073         266,442,635         558,440,647         396,601,556   

Value of shares repurchased

     (186,418,290 )       (158,547,925 )       (564,280,540 )       (460,948,721 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets resulting from shares transactions

     (27,953,217 )       107,894,710         (5,839,893 )       (64,347,165 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Increase (Decrease) in Net Assets

     (24,543,612 )       116,172,459         26,155,841         (112,044,076 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
Net Assets:           

Beginning of period

     443,751,868         327,579,409         975,298,822         1,087,342,898   
 

 

 

     

 

 

     

 

 

     

 

 

  

End of period

   $ 419,208,256       $ 443,751,868       $ 1,001,454,663       $ 975,298,822   
 

 

 

     

 

 

     

 

 

     

 

 

  

Undistributed net investment income at end of period

   $ 404,669       $ 539,344       $ 2,458,785       $ 3,485,993   
 

 

 

     

 

 

     

 

 

     

 

 

  
Changes in Shares Outstanding:           

Shares sold

     5,000,000         8,650,000         17,900,000         13,300,000   

Shares repurchased

     (5,900,000 )       (5,100,000 )       (18,100,000 )       (15,400,000 ) 

Shares outstanding, beginning of period

     14,400,000         10,850,000         32,500,000         34,600,000   
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding, end of period

     13,500,000         14,400,000         32,300,000         32,500,000   
 

 

 

     

 

 

     

 

 

     

 

 

  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   66  

 

 

 

PowerShares Russell 2000
Equal Weight Portfolio (EQWS)		      PowerShares Russell 2000
Pure Growth Portfolio (PXSG)		      PowerShares Russell 2000
Pure Value Portfolio (PXSV)		      PowerShares Russell Midcap
Equal Weight Portfolio (EQWM)		  
October 31, 2016      April 30, 2016     

October 31, 2016

      April 30, 2016      October 31, 2016      April 30, 2016      October 31, 2016      April 30, 2016  
                    
$ 67,653       $ 127,115       $ 40,915       $ 80,568       $ 779,978       $ 1,724,311       $ 175,766       $ 426,021   
  133,539         1,476,128         (2,150,598 )       5,313,096         (3,444,407 )       8,397,908         (738,430 )       5,053,874   
  504,866         (2,766,711 )       3,109,786         (8,134,006 )       5,472,558         (14,486,084 )       940,694         (6,753,851 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  706,058         (1,163,468 )       1,000,103         (2,740,342 )       2,808,129         (4,363,865 )       378,030         (1,273,956 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
                    
  (66,651 )       (138,899 )       (55,371 )       (145,600 )       (667,207 )       (1,647,876 )       (168,300 )       (425,755 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
                    
  —         12,873,920         6,009,885         35,117,426         25,911,038         68,582,873         —         24,737,975   
  (1,786,067 )       (14,648,979 )       (7,030,693 )       (38,302,893 )       (26,120,125 )       (74,996,370 )       —         (33,973,183 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  (1,786,067 )       (1,775,059 )       (1,020,808 )       (3,185,467 )       (209,087 )       (6,413,497 )       —         (9,235,208 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  (1,146,660 )       (3,077,426 )       (76,076 )       (6,071,409 )       1,931,835         (12,425,238 )       209,730         (10,934,919 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
                    
  13,075,307         16,152,733         26,719,235         32,790,644         59,667,615         72,092,853         23,357,334         34,292,253   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 11,928,647       $ 13,075,307       $ 26,643,159       $ 26,719,235       $ 61,599,450       $ 59,667,615       $ 23,567,064       $ 23,357,334   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 15,587       $ 14,585       $ 541       $ 14,997       $ 435,322       $ 322,551       $ 55,944       $ 48,478   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
                    
  —         350,000         250,000         1,350,000         1,050,000         2,600,000         —         600,000   
  (50,000 )       (400,000 )       (300,000 )       (1,500,000 )       (1,100,000 )       (2,900,000 )       —         (850,000 ) 
  400,000         450,000         1,150,000         1,300,000         2,500,000         2,800,000         600,000         850,000   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  350,000         400,000         1,100,000         1,150,000         2,450,000         2,500,000         600,000         600,000   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

   67  

 

 

Statements of Changes in Net Assets (continued)

For the six months ended October 31, 2016 and the year ended April 30, 2016

(Unaudited)

 

    PowerShares Russell
Midcap Pure Growth Portfolio (PXMG)		      PowerShares Russell
Midcap Pure Value Portfolio (PXMV)		  
    October 31, 2016      April 30, 2016      October 31, 2016      April 30, 2016  
Operations:           

Net investment income

   $ 45,949       $ 192,398       $ 523,506       $ 1,160,598   

Net realized gain (loss)

     (7,243,480 )       16,044,559         (436,383 )       10,092,452   

Net change in unrealized appreciation (depreciation)

     8,551,612         (24,188,266 )       1,351,554         (11,073,689 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets resulting from operations

     1,354,081         (7,951,309 )       1,438,677         179,361   
 

 

 

     

 

 

     

 

 

     

 

 

  
Distributions to Shareholders from:           

Net investment income

     (52,993 )       (409,368 )       (485,740 )       (1,090,750 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
Shareholder Transactions:           

Proceeds from shares sold

     12,023,199         91,126,421         18,286,854         43,244,079   

Value of shares repurchased

     (20,356,501 )       (103,621,188 )       (23,138,591 )       (44,306,740 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets resulting from shares transactions

     (8,333,302 )       (12,494,767 )       (4,851,737 )       (1,062,661 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Increase (Decrease) in Net Assets

     (7,032,214 )       (20,855,444 )       (3,898,800 )       (1,974,050 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
Net Assets:           

Beginning of period

     67,014,994         87,870,438         50,363,596         52,337,646   
 

 

 

     

 

 

     

 

 

     

 

 

  

End of period

   $ 59,982,780       $ 67,014,994       $ 46,464,796       $ 50,363,596   
 

 

 

     

 

 

     

 

 

     

 

 

  

Undistributed net investment income at end of period

   $ 9,823       $ 16,867       $ 231,494       $ 193,728   
 

 

 

     

 

 

     

 

 

     

 

 

  
Changes in Shares Outstanding:           

Shares sold

     400,000         2,800,000         650,000         1,550,000   

Shares repurchased

     (700,000 )       (3,250,000 )       (850,000 )       (1,600,000 ) 

Shares outstanding, beginning of period

     2,300,000         2,750,000         1,850,000         1,900,000   
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding, end of period

     2,000,000         2,300,000         1,650,000         1,850,000   
 

 

 

     

 

 

     

 

 

     

 

 

  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   68  

 

 

 

PowerShares Russell Top 200
Equal Weight Portfolio (EQWL)		      PowerShares Russell Top 200
Pure Growth Portfolio (PXLG)		      PowerShares Russell Top 200
Pure Value Portfolio (PXLV)		      PowerShares Zacks
Micro Cap Portfolio (PZI)		  
October 31, 2016      April 30, 2016      October 31, 2016      April 30, 2016      October 31, 2016      April 30, 2016      October 31, 2016      April 30, 2016  
                    
$ 298,648       $ 735,628       $ 579,211       $ 1,176,283       $ 842,868       $ 1,194,351       $ 183,706       $ 344,756   
  272,082         7,178,998         (4,150,060 )       31,202,722         402,624         2,691,966         1,207,346         (1,028,304 ) 
  679,689         (8,004,214 )       4,668,875         (32,667,566 )       3,278,988         (1,493,930 )       (126,873 )       22,641   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  1,250,419         (89,588 )       1,098,026         (288,561 )       4,524,480         2,392,387         1,264,179         (660,907 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
                    
  (317,280 )       (736,635 )       (744,030 )       (1,168,868 )       (765,865 )       (1,133,932 )       (274,792 )       (314,529 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
                    
  2,088,331         30,707,855         28,233,747         179,576,353         16,609,806         57,153,056         5,896,979         –   
  (6,075,183 )       (38,325,557 )       (43,879,335 )       (172,206,268 )       (25,148,282 )       (31,730,490 )       (5,864,976 )       (6,919,902 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  (3,986,852 )       (7,617,702 )       (15,645,588 )       7,370,085         (8,538,476 )       25,422,566         32,003         (6,919,902 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  (3,053,713 )       (8,443,925 )       (15,291,592 )       5,912,656         (4,779,861 )       26,681,021         1,021,390         (7,895,338 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
                    
  33,804,687         42,248,612         151,414,762         145,502,106         68,028,529         41,347,508         21,024,285         28,919,623   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 30,750,974       $ 33,804,687       $ 136,123,170       $ 151,414,762       $ 63,248,668       $ 68,028,529       $ 22,045,675       $ 21,024,285   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 62,731       $ 81,363       $ 137,595       $ 302,414       $ 250,394       $ 173,391       $ 2,611       $ 93,697   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
                    
  50,000         750,000         850,000         5,350,000         550,000         2,000,000         350,000         –   
  (150,000 )       (950,000 )       (1,350,000 )       (5,050,000 )       (850,000 )       (1,050,000 )       (350,000 )       (450,000 ) 
  850,000         1,050,000         4,600,000         4,300,000         2,300,000         1,350,000         1,350,000         1,800,000   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  750,000         850,000         4,100,000         4,600,000         2,000,000         2,300,000         1,350,000         1,350,000   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

   69  

 

 

Financial Highlights

 

PowerShares Dynamic Large Cap Growth Portfolio (PWB)

 

     Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
       2016      2015      2014      2013      2012  
Per Share Operating Performance:                 

Net asset value at beginning of period

    $ 30.82      $ 30.19       $ 25.62       $ 21.29      $ 18.73      $ 17.63  

Net investment income(a)

      0.14        0.19         0.18         0.10        0.21         0.15   

Net realized and unrealized gain on investments

      0.24        0.62         4.56         4.34        2.55         1.09   

Total from investment operations

      0.38        0.81         4.74         4.44        2.76        1.24  

Distributions to shareholders from:

                 

Net investment income

      (0.15 )      (0.18 )       (0.17 )       (0.11 )       (0.20 )       (0.14 ) 

Net asset value at end of period

    $ 31.05      $ 30.82       $ 30.19      $ 25.62      $ 21.29      $ 18.73  

Market price at end of period(b)

    $ 31.08      $ 30.81       $ 30.17      $ 25.62      $ 21.28      $ 18.72  
Net Asset Value Total Return(c)      1.22 %      2.70 %       18.52 %       20.91 %       14.91 %       7.18 % 
Market Price Total Return(c)      1.35 %      2.73 %       18.44 %       20.96 %       14.92 %       7.12 % 
Ratios/Supplemental Data:                 

Net assets at end of period (000’s omitted)

    $ 419,208      $ 443,752       $ 327,579       $ 285,675      $ 212,897       $ 191,013   

Ratio to average net assets of:

                 

Expenses, after Waivers

      0.57 %(d)      0.57 %       0.58 %       0.58 %       0.59 %       0.61 % 

Expenses, prior to Waivers

      0.57 %(d)      0.57 %       0.58 %       0.58 %       0.59 %       0.62 % 

Net investment income, after Waivers

      0.87 %(d)      0.64 %       0.63 %       0.43 %       1.08 %       0.89 % 

Portfolio turnover rate(e)

      60 %      97 %       143 %       123 %       47 %       64 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares Dynamic Large Cap Value Portfolio (PWV)

 

     Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
       2016     2015      2014      2013      2012  
Per Share Operating Performance:                

Net asset value at beginning of period

    $ 30.01      $ 31.43      $ 29.51       $ 25.21      $ 20.73      $ 20.35  

Net investment income(a)

      0.35        0.73        0.64         0.55        0.52         0.46   

Net realized and unrealized gain (loss) on investments

      1.03        (1.43 )      1.88         4.30        4.48         0.38   

Total from investment operations

      1.38        (0.70 )      2.52         4.85        5.00        0.84  

Distributions to shareholders from:

                

Net investment income

      (0.39 )      (0.72 )      (0.60 )       (0.55 )       (0.52 )       (0.46 ) 

Net asset value at end of period

    $ 31.00      $ 30.01      $ 31.43       $ 29.51      $ 25.21      $ 20.73  

Market price at end of period(b)

    $ 31.03      $ 30.00      $ 31.42       $ 29.49      $ 25.22      $ 20.71  
Net Asset Value Total Return(c)      4.62 %      (2.17 )%      8.56 %       19.48 %       24.55 %       4.34 % 
Market Price Total Return(c)      4.76 %      (2.18 )%      8.60 %       19.35 %       24.72 %       4.20 % 
Ratios/Supplemental Data:                

Net assets at end of period(000’s omitted)

    $ 1,001,455      $ 975,299      $ 1,087,343       $ 801,088      $ 574,825       $ 419,740   

Ratio to average net assets of:

                

Expenses, after Waivers

      0.56 %(d)      0.57 %      0.57 %       0.57 %       0.59 %       0.59 % 

Expenses, prior to Waivers

      0.56 %(d)      0.57 %      0.57 %       0.57 %       0.59 %       0.59 % 

Net investment income, after Waivers

      2.27 %(d)      2.44 %      2.10 %       2.04 %       2.36 %       2.39 % 

Portfolio turnover rate(e)

      65 %      98 %      82 %       103 %       58 %       41 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   70  

 

 

Financial Highlights (continued)

 

PowerShares Russell 2000 Equal Weight Portfolio (EQWS)

 

     Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
       2016     2015     2014      2013      2012  
Per Share Operating Performance:               

Net asset value at beginning of period

    $ 32.69      $ 35.89      $ 32.85      $ 27.80       $ 24.21      $ 25.32  

Net investment income(a)

      0.18        0.31        0.41        0.33         0.46         0.22   

Net realized and unrealized gain (loss) on investments

      1.39        (3.17 )      3.03        5.12         3.60         (1.18 ) 

Total from investment operations

      1.57        (2.86 )      3.44        5.45         4.06        (0.96 ) 

Distributions to shareholders from:

               

Net investment income

      (0.18 )      (0.34 )      (0.40 )      (0.40 )       (0.47 )       (0.15 ) 

Net asset value at end of period

    $ 34.08      $ 32.69      $ 35.89     $ 32.85       $ 27.80      $ 24.21  

Market price at end of period(b)

    $ 34.12      $ 32.71      $ 35.90     $ 32.84       $ 27.76      $ 24.18  
Net Asset Value Total Return(c)      4.80 %      (8.00 )%      10.53 %      19.76 %       17.05 %       (3.70 )% 
Market Price Total Return(c)      4.86 %      (7.97 )%      10.59 %      19.90 %       17.03 %       (3.85 )% 
Ratios/Supplemental Data:               

Net assets at end of period (000’s omitted)

    $ 11,929      $ 13,075      $ 16,153      $ 14,784       $ 15,290       $ 15,735   

Ratio to average net assets of:

               

Expenses, after Waivers

      0.25 %(d)      0.26 %(e)      0.39 %(e)      0.39 %       0.39 %       0.43 % 

Expenses, prior to Waivers

      1.12 %(d)      1.17 %(e)      0.98 %(e)      0.94 %       1.22 %       1.25 % 

Net investment income, after Waivers

      1.02 %(d)      0.94 %      1.20 %      1.06 %       1.88 %       0.97 % 

Portfolio turnover rate(f)

      27 %      143 %      7 %      50 %       45 %       97 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment companies’ expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies the Fund invests in. The effect of the estimated investment companies’ expenses that the Fund bears indirectly is included in the Fund’s total return.
(f)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   71  

 

 

Financial Highlights (continued)

 

PowerShares Russell 2000 Pure Growth Portfolio (PXSG)

 

     Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
       2016     2015     2014     2013     2012  
Per Share Operating Performance:             

Net asset value at beginning of period

    $ 23.23      $ 25.22      $ 23.90      $ 19.74      $ 17.66     $ 19.03  

Net investment income(a)

      0.04        0.06        0.25        0.20        0.13        0.07   

Net realized and unrealized gain (loss) on investments

      1.00        (1.93 )      1.39        4.17        2.08        (1.44 ) 

Total from investment operations

      1.04        (1.87 )      1.64        4.37        2.21       (1.37 ) 

Distributions to shareholders from:

             

Net investment income

      (0.05 )      (0.12 )      (0.32 )      (0.21 )      (0.13 )      —   

Net asset value at end of period

    $ 24.22      $ 23.23      $ 25.22      $ 23.90      $ 19.74     $ 17.66  

Market price at end of period(b)

    $ 24.24      $ 23.26      $ 25.21      $ 23.89      $ 19.72     $ 17.64  
Net Asset Value Total Return(c)      4.47 %      (7.47 )%      6.92 %      22.31 %      12.63 %      (7.20 )% 
Market Price Total Return(c)      4.42 %      (7.31 )%      6.92 %      22.38 %      12.65 %      (7.40 )% 
Ratios/Supplemental Data:             

Net assets at end of period (000’s omitted)

    $ 26,643      $ 26,719      $ 32,791      $ 29,872      $ 26,646      $ 30,913   

Ratio to average net assets of:

             

Expenses, after Waivers

      0.39 %(d)      0.39 %(e)      0.39 %(e)      0.39 %(e)      0.39 %(e)      0.48 % 

Expenses, prior to Waivers

      0.69 %(d)      0.67 %(e)      0.69 %(e)      0.70 %(e)      0.92 %(e)      0.69 % 

Net investment income, after Waivers

      0.29 %(d)      0.27 %      1.02 %      0.90 %      0.72 %      0.41 % 

Portfolio turnover rate(f)

      48 %      144 %      6 %      39 %      39 %      189 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net assets value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning at the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment companies’ expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies the Fund invests in. The effect of the estimated investment companies’ expenses that the Fund bears indirectly is included in the Fund’s total return.
(f) Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   72  

 

 

Financial Highlights (continued)

 

PowerShares Russell 2000 Pure Value Portfolio (PXSV)

 

     Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
       2016     2015      2014      2013      2012  
Per Share Operating Performance:                

Net asset value at beginning of period

    $ 23.87      $ 25.75      $ 24.67       $ 19.63      $ 16.35      $ 17.07  

Net investment income(a)

      0.32        0.63        0.42         0.30        0.32         0.19   

Net realized and unrealized gain (loss) on investments

      1.22        (1.91 )      1.03         5.03        3.31        (0.72 ) 

Total from investment operations

      1.54        (1.28 )      1.45         5.33        3.63        (0.53 ) 

Distributions to shareholders from:

                

Net investment income

      (0.27 )      (0.60 )      (0.37 )       (0.29 )       (0.35 )       (0.19 ) 

Net asset value at end of period

    $ 25.14      $ 23.87      $ 25.75      $ 24.67      $ 19.63      $ 16.35  

Market price at end of period(b)

    $ 25.18      $ 23.88      $ 25.75      $ 24.68      $ 19.61      $ 16.33  
Net Asset Value Total Return(c)      6.49 %      (4.93 )%      5.91 %       27.29 %       22.56 %       (3.01 )% 
Market Price Total Return(c)      6.61 %      (4.90 )%      5.87 %       27.47 %       22.58 %       (3.18 )% 
Ratios/Supplemental Data:                

Net assets at end of period (000’s omitted)

    $ 61,599      $ 59,668      $ 72,093       $ 65,376      $ 48,084       $ 52,312   

Ratio to average net assets of:

                

Expenses, after Waivers

      0.39 %(d)      0.39 %      0.39 %       0.39 %       0.39 %       0.43 % 

Expenses, prior to Waivers

      0.50 %(d)      0.50 %      0.55 %       0.54 %       0.70 %       0.64 % 

Net investment income, after Waivers

      2.53 %(d)      2.67 %      1.65 %       1.31 %       1.87 %       1.28 % 

Portfolio turnover rate(e)

      54 %      137 %      5 %       43 %       31 %       109 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

PowerShares Russell Midcap Equal Weight Portfolio (EQWM)

 

     Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
       2016     2015      2014      2013      2012  
Per Share Operating Performance:                

Net asset value at beginning of period

    $ 38.93      $ 40.34      $ 36.31       $ 30.41      $ 26.60      $ 27.15  

Net investment income(a)

      0.29        0.56        0.50         0.40        0.43         0.29   

Net realized and unrealized gain (loss) on investments

      0.34        (1.41 )      4.03         5.90        3.80         (0.57 ) 

Total from investment operations

      0.63        (0.85 )      4.53         6.30        4.23        (0.28 ) 

Distributions to shareholders from:

                

Net investment income

      (0.28 )      (0.56 )      (0.50 )       (0.40 )       (0.42 )       (0.27 ) 

Net asset value at end of period

    $ 39.28      $ 38.93      $ 40.34      $ 36.31      $ 30.41      $ 26.60  

Market price at end of period(b)

    $ 39.31      $ 38.89      $ 40.35      $ 36.25      $ 30.39      $ 26.62  
Net Asset Value Total Return(c)      1.62 %      (2.02 )%      12.52 %       20.85 %       16.16 %       (0.93 )% 
Market Price Total Return(c)      1.80 %      (2.14 )%      12.73 %       20.73 %       16.00 %       (0.85 )% 
Ratios/Supplemental Data:                

Net assets at end of period (000’s omitted)

    $ 23,567      $ 23,357      $ 34,292       $ 30,867      $ 19,768       $ 18,623   

Ratio to average net assets of:

                

Expenses, after Waivers

      0.25 %(d)      0.26 %      0.39 %       0.39 %       0.39 %       0.43 % 

Expenses, prior to Waivers

      0.69 %(d)      0.69 %      0.66 %       0.69 %       1.00 %       1.01 % 

Net investment income, after Waivers

      1.46 %(d)      1.50 %      1.31 %       1.19 %       1.58 %       1.16 % 

Portfolio turnover rate(e)

      21 %      135 %      5 %       50 %       38 %       83 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   73  

 

 

Financial Highlights (continued)

 

PowerShares Russell Midcap Pure Growth Portfolio (PXMG)

 

     Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
       2016     2015      2014      2013      2012  
Per Share Operating Performance:                

Net asset value at beginning of period

    $ 29.14      $ 31.95      $ 30.02       $ 26.06      $ 22.65      $ 24.13  

Net investment income(a)

      0.02        0.07        0.47         0.33        0.26         0.13   

Net realized and unrealized gain (loss) on investments

      0.86        (2.72 )      1.92         4.01        3.38         (1.53 ) 

Total from investment operations

      0.88        (2.65 )      2.39         4.34        3.64        (1.40 ) 

Distributions to shareholders from:

                

Net investment income

      (0.03 )      (0.16 )      (0.46 )       (0.38 )       (0.23 )       (0.08 ) 

Net asset value at end of period

    $ 29.99      $ 29.14      $ 31.95       $ 30.02      $ 26.06      $ 22.65  

Market price at end of period(b)

    $ 30.01      $ 29.12      $ 31.95       $ 29.99      $ 26.04      $ 22.63  
Net Asset Value Total Return(c)      3.01 %      (8.34 )%      7.98 %       16.80 %       16.23 %       (5.74 )% 
Market Price Total Return(c)      3.15 %      (8.40 )%      8.09 %       16.77 %       16.25 %       (5.83 )% 
Ratios/Supplemental Data:                

Net assets at end of period (000’s omitted)

    $ 59,983      $ 67,015      $ 87,870       $ 91,555      $ 82,101       $ 87,203   

Ratio to average net assets of:

                

Expenses, after Waivers

      0.39 %(d)      0.39 %      0.39 %       0.39 %       0.39 %       0.43 % 

Expenses, prior to Waivers

      0.47 %(d)      0.44 %      0.46 %       0.45 %       0.54 %       0.55 % 

Net investment income, after Waivers

      0.15 %(d)      0.25 %      1.51 %       1.19 %       1.14 %       0.61 % 

Portfolio turnover rate(e)

      45 %      147 %      3 %       33 %       33 %       75 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   74  

 

 

Financial Highlights (continued)

 

PowerShares Russell Midcap Pure Value Portfolio (PXMV)

 

     Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
       2016     2015     2014      2013      2012  
Per Share Operating Performance:               

Net asset value at beginning of period

    $ 27.22      $ 27.55      $ 25.88      $ 20.98      $ 17.06      $ 17.07  

Net investment income(a)

      0.32        0.68        0.43        0.37        0.37         0.25   

Net realized and unrealized gain (loss) on investments

      0.92        (0.37 )      1.63        4.87        3.94         (0.03 ) 

Total from investment operations

      1.24        0.31        2.06        5.24        4.31        0.22  

Distributions to shareholders from:

               

Net investment income

      (0.30 )      (0.64 )      (0.39 )      (0.34 )       (0.39 )       (0.23 ) 

Net asset value at end of period

    $ 28.16      $ 27.22      $ 27.55     $ 25.88      $ 20.98      $ 17.06  

Market price at end of period(b)

    $ 28.18      $ 27.21      $ 27.53     $ 25.87      $ 20.98      $ 17.04  
Net Asset Value Total Return(c)      4.57 %      1.35 %      7.98 %      25.19 %       25.74 %       1.42 % 
Market Price Total Return(c)      4.68 %      1.39 %      7.94 %      25.14 %       25.89 %       1.30 % 
Ratios/Supplemental Data:               

Net assets at end of period (000’s omitted)

    $ 46,465      $ 50,364      $ 52,338      $ 42,709      $ 28,321       $ 32,408   

Ratio to average net assets of:

               

Expenses, after Waivers

      0.39 %(d)      0.39 %(e)      0.39 %(e)      0.39 %       0.39 %       0.43 % 

Expenses, prior to Waivers

      0.53 %(d)      0.54 %(e)      0.56 %(e)      0.62 %       0.82 %       0.79 % 

Net investment income, after Waivers

      2.26 %(d)      2.62 %      1.58 %      1.56 %       2.08 %       1.57 % 

Portfolio turnover rate(f)

      41 %      131 %      4 %      33 %       25 %       83 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d) Annualized.
(e)  In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment companies’ expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies the Fund invests in. The effect of the estimated investment companies’ expenses that the Fund bears indirectly is included in the Fund’s total return.
(f)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

PowerShares Russell Top 200 Equal Weight Portfolio (EQWL)

 

     Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
       2016      2015      2014      2013      2012  
Per Share Operating Performance:                 

Net asset value at beginning of period

    $ 39.77      $ 40.24       $ 37.06       $ 30.97      $ 26.66      $ 26.42  

Net investment income(a)

      0.38        0.78         0.75         0.63        0.65         0.57   

Net realized and unrealized gain (loss) on investments

      1.25        (0.48 )       3.14         6.03        4.35         0.32   

Total from investment operations

      1.63        0.30         3.89         6.66        5.00        0.89  

Distributions to shareholders from:

                 

Net investment income

      (0.40 )      (0.77 )       (0.71 )       (0.57 )       (0.69 )       (0.65 ) 

Net asset value at end of period

    $ 41.00      $ 39.77       $ 40.24      $ 37.06      $ 30.97      $ 26.66  

Market price at end of period(b)

    $ 41.03      $ 39.73       $ 40.21      $ 37.08      $ 30.98      $ 26.66  
Net Asset Value Total Return(c)      4.11 %      0.81 %       10.52 %       21.69 %       19.10 %       3.64 % 
Market Price Total Return(c)      4.29 %      0.78 %       10.38 %       21.72 %       19.15 %       3.64 % 
Ratios/Supplemental Data:                 

Net assets at end of period (000’s omitted)

    $ 30,751      $ 33,805       $ 42,249       $ 40,770      $ 27,874       $ 25,326   

Ratio to average net assets of:

                 

Expenses, after Waivers

      0.25 %(d)      0.26 %       0.39 %       0.39 %       0.39 %       0.43 % 

Expenses, prior to Waivers

      0.56 %(d)      0.54 %       0.57 %       0.60 %       0.80 %       0.90 % 

Net investment income, after Waivers

      1.85 %(d)      1.99 %       1.92 %       1.85 %       2.38 %       2.32 % 

Portfolio turnover rate(e)

      17 %      101 %       3 %       38 %       43 %       58 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d) Annualized.
(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   75  

 

 

Financial Highlights (continued)

 

PowerShares Russell Top 200 Pure Growth Portfolio (PXLG)

 

     Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,      For the Period
June 13, 2011(a)
Through
April 30, 2012		  
       2016     2015      2014      2013     
Per Share Operating Performance:                

Net asset value at beginning of period

    $ 32.92      $ 33.84      $ 29.53       $ 25.10      $ 22.20      $ 20.00  

Net investment income(b)

      0.13        0.28        0.55         0.50        0.39         0.28   

Net realized and unrealized gain (loss) on investments

      0.32        (0.91 )      4.29         4.57        2.87         2.09   

Total from investment operations

      0.45        (0.63 )      4.84         5.07        3.26        2.37  

Distributions to shareholders from:

                

Net investment income

      (0.17 )      (0.29 )      (0.53 )       (0.62 )       (0.36 )       (0.17 ) 

Net realized gains

      —        —        —         (0.02 )       —         —   

Total distributions

      (0.17 )      (0.29 )      (0.53 )       (0.64 )       (0.36 )       (0.17 ) 

Net asset value at end of period

    $ 33.20      $ 32.92      $ 33.84      $ 29.53      $ 25.10      $ 22.20  

Market price at end of period(c)

    $ 33.22      $ 32.92      $ 33.82      $ 29.52      $ 25.08      $ 22.19  
Net Asset Value Total Return(d)      1.37 %      (1.89 )%      16.49 %       20.54 %       14.87 %       11.99 %(e) 
Market Price Total Return(d)      1.43 %      (1.83 )%      16.46 %       20.59 %       14.83 %       11.94 %(e) 
Ratios/Supplemental Data:                

Net assets at end of period (000’s omitted)

    $ 136,123      $ 151,415      $ 145,502       $ 106,322      $ 82,816       $ 4,440   

Ratio to average net assets of:

                

Expenses, after Waivers

      0.39 %(f)      0.39 %      0.39 %       0.39 %       0.39 %       0.39 %(f) 

Expenses, prior to Waivers

      0.39 %(f)      0.39 %      0.43 %       0.45 %       0.79 %       7.69 %(f) 

Net investment income, after Waivers

      0.78 %(f)      0.85 %      1.73 %       1.84 %       1.63 %       1.54 %(f) 

Portfolio turnover rate(g)

      28 %      105 %      2 %       22 %       90 %       3 % 

 

(a)  Commencement of investment operations.
(b)  Based on average shares outstanding.
(c)  The mean between the last bid and ask prices.
(d)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(e)  The net asset value total return from Fund Inception (June 16, 2011, the first day of trading on the exchange) to April 30, 2012 was 13.81%. The market price total return from Fund Inception to April 30, 2012 was 13.87%.
(f)  Annualized.
(g)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   76  

 

 

Financial Highlights (continued)

 

PowerShares Russell Top 200 Pure Value Portfolio (PXLV)

 

     Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,      For the Period
June 13, 2011(a)
Through
April 30, 2012		  
       2016     2015      2014      2013     
Per Share Operating Performance:                

Net asset value at beginning of period

    $ 29.58      $ 30.63      $ 29.40       $ 25.16      $ 20.37      $ 20.00  

Net investment income(b)

      0.39        0.80        0.72         0.63        0.52         0.39   

Net realized and unrealized gain (loss) on investments

      2.02        (1.09 )      1.16         4.17        4.77         0.33   

Total from investment operations

      2.41        (0.29 )      1.88         4.80        5.29        0.72  

Distributions to shareholders from:

                

Net investment income

      (0.37 )      (0.76 )      (0.65 )       (0.54 )       (0.50 )       (0.35 ) 

Net realized gains

      —        —        —         (0.02 )       —         —   

Total distributions

      (0.37 )      (0.76 )      (0.65 )       (0.56 )       (0.50 )       (0.35 ) 

Net asset value at end of period

    $ 31.62      $ 29.58      $ 30.63      $ 29.40      $ 25.16      $ 20.37  

Market price at end of period(c)

    $ 31.65      $ 29.55      $ 30.62      $ 29.39      $ 25.16      $ 20.35  
Net Asset Value Total Return(d)      8.19 %      (0.84 )%      6.41 %       19.27 %       26.41 %       3.80 %(e) 
Market Price Total Return(d)      8.40 %      (0.92 )%      6.41 %       19.23 %       26.53 %       3.70 %(e) 
Ratios/Supplemental Data:                

Net assets at end of period (000’s omitted)

    $ 63,249      $ 68,029      $ 41,348       $ 14,701      $ 7,549       $ 8,148   

Ratio to average net assets of:

                

Expenses, after Waivers

      0.39 %(f)      0.39 %      0.39 %       0.39 %       0.39 %       0.39 %(f) 

Expenses, prior to Waivers

      0.46 %(f)      0.55 %      0.62 %       1.05 %       2.10 %       2.87 %(f) 

Net investment income, after Waivers

      2.53 %(f)      2.78 %      2.37 %       2.32 %       2.43 %       2.38 %(f) 

Portfolio turnover rate(g)

      28 %      77 %      2 %       23 %       9 %       2 % 

 

(a)  Commencement of investment operations.
(b)  Based on average shares outstanding.
(c)  The mean between the last bid and ask prices.
(d)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(e)  The net asset value total return from Fund Inception (June 16, 2011, the first day of trading on the exchange) to April 30, 2012 was 5.17%. The market price total return from Fund Inception to April 30, 2012 was 5.23%.
(f)  Annualized.
(g)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   77  

 

 

Financial Highlights (continued)

 

PowerShares Zacks Micro Cap Portfolio (PZI)

 

     Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
       2016     2015      2014      2013      2012  
Per Share Operating Performance:                

Net asset value at beginning of period

    $ 15.57      $ 16.07      $ 16.26       $ 13.57      $ 11.34      $ 12.53  

Net investment income(a)

     
 0.14
   
     0.21        0.21         0.20        0.20         0.10   

Net realized and unrealized gain (loss) on investments

     
 0.82
   
     (0.52 )      (0.09 )       2.65        2.25         (1.16 ) 

Total from investment operations

     
 0.96
   
     (0.31 )      0.12        2.85        2.45        (1.06 ) 

Distributions to shareholders from:

                

Net investment income

     
 (0.20
 ) 
     (0.19 )      (0.31 )      (0.16 )       (0.22 )       (0.13 ) 

Net asset value at end of period

    $ 16.33      $ 15.57      $ 16.07      $ 16.26      $ 13.57      $ 11.34  

Market price at end of period(b)

    $ 16.32      $ 15.57      $ 16.05      $ 16.25      $ 13.54      $ 11.32  
Net Asset Value Total Return(c)      6.22 %      (1.94 )%      0.71 %       21.06 %       21.95 %       (8.34 )% 
Market Price Total Return(c)      6.16 %      (1.82 )%      0.64 %       21.25 %       21.90 %       (8.42 )% 
Ratios/Supplemental Data:                

Net assets at end of period (000’s omitted)

    $ 22,046      $ 21,024      $ 28,920       $ 61,782      $ 42,055       $ 34,019   

Ratio to average net assets of:

                

Expenses, after Waivers(d)

      0.70 %(e)      0.70 %      0.70 %       0.70 %       0.70 %       0.70 % 

Expenses, prior to Waivers(d)

      1.07 %(e)      1.00 %      0.90 %       0.79 %       0.98 %       0.92 % 

Net investment income, after Waivers

      1.66 %(e)      1.37 %      1.28 %       1.29 %       1.72 %       0.92 % 

Portfolio turnover rate(f)

      69 %      134 %      115 %       123 %       96 %       67 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment companies’ expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies the Fund invests in. The effect of the estimated investment companies’ expenses that the Fund bears indirectly is included in the Fund’s total return.
(e)  Annualized.
(f)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   78  

 

 

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

October 31, 2016

(Unaudited)

 

Note 1. Organization

PowerShares Exchange-Traded Fund Trust (the “Trust”) was organized as a Massachusetts business trust on June 9, 2000 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of October 31, 2016, the Trust offered fifty-three portfolios. This report includes the following portfolios:

 

Full Name

   

Short Name

PowerShares Dynamic Large Cap Growth Portfolio (PWB)    “Dynamic Large Cap Growth Portfolio”
PowerShares Dynamic Large Cap Value Portfolio (PWV)    “Dynamic Large Cap Value Portfolio”
PowerShares Russell 2000 Equal Weight Portfolio (EQWS)    “Russell 2000 Equal Weight Portfolio”
PowerShares Russell 2000 Pure Growth Portfolio (PXSG)    “Russell 2000 Pure Growth Portfolio”
PowerShares Russell 2000 Pure Value Portfolio (PXSV)    “Russell 2000 Pure Value Portfolio”
PowerShares Russell Midcap Equal Weight Portfolio (EQWM)    “Russell Midcap Equal Weight Portfolio”
PowerShares Russell Midcap Pure Growth Portfolio (PXMG)    “Russell Midcap Pure Growth Portfolio”
PowerShares Russell Midcap Pure Value Portfolio (PXMV)    “Russell Midcap Pure Value Portfolio”
PowerShares Russell Top 200 Equal Weight Portfolio (EQWL)    “Russell Top 200 Equal Weight Portfolio”
PowerShares Russell Top 200 Pure Growth Portfolio (PXLG)    “Russell Top 200 Pure Growth Portfolio”
PowerShares Russell Top 200 Pure Value Portfolio (PXLV)    “Russell Top 200 Pure Value Portfolio”
PowerShares Zacks Micro Cap Portfolio (PZI)    “Zacks Micro Cap Portfolio”

Each portfolio (each, a “Fund”, and collectively, the “Funds”) represents a separate series of the Trust. The shares of the Funds are referred to herein as “Shares” or “Fund’s Shares.” Each Fund’s Shares are listed and traded on NYSE Arca, Inc.

The market price of each Share may differ to some degree from the Fund’s net asset value (“NAV”). Unlike conventional mutual funds, each Fund issues and redeems Shares on a continuous basis, at NAV, only in a large specified number of Shares, each called a “Creation Unit.” Creation Units are issued and redeemed principally in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”). Except when aggregated in Creation Units by Authorized Participants, the Shares are not individually redeemable securities of the Funds.

The investment objective of each Fund is to seek investment results that generally correspond (before fees and expenses) to the price and yield of its respective index listed below (each, an “Underlying Index”):

 

Fund

   

Underlying Index

Dynamic Large Cap Growth Portfolio    Dynamic Large Cap Growth IntellidexSM Index
Dynamic Large Cap Value Portfolio    Dynamic Large Cap Value IntellidexSM Index
Russell 2000 Equal Weight Portfolio    Russell 2000® Equal Weight Index
Russell 2000 Pure Growth Portfolio    Russell 2000® Pure Growth Index
Russell 2000 Pure Value Portfolio    Russell 2000® Pure Value Index
Russell Midcap Equal Weight Portfolio    Russell Midcap® Equal Weight Index
Russell Midcap Pure Growth Portfolio    Russell Midcap® Pure Growth Index
Russell Midcap Pure Value Portfolio    Russell Midcap® Pure Value Index
Russell Top 200 Equal Weight Portfolio    Russell Top 200® Equal Weight Index
Russell Top 200 Pure Growth Portfolio    Russell Top 200® Pure Growth Index
Russell Top 200 Pure Value Portfolio    Russell Top 200® Pure Value Index
Zacks Micro Cap Portfolio    Zacks Micro Cap IndexTM

Note 2. Significant Accounting Policies

The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements, including estimates and assumptions related to taxation. Actual results could differ from these estimates. In addition, the

 

 

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Funds monitor for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. The following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.

A. Security Valuation

Securities, including restricted securities, are valued according to the following policies:

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining NAV per Share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day NAV per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts’) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the London world markets. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that Invesco PowerShares Capital Management LLC (the “Adviser”) determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith following procedures approved by the Board of Trustees. Issuer-specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

Each Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

 

 

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Valuations change in response to many factors, including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Other Risks

Index Risk. Unlike many investment companies, the Funds do not utilize investing strategies that seek returns in excess of their Underlying Indexes. Therefore, a Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.

Equity Risk. Equity risk is the risk that the value of the securities that each Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities that a Fund holds participate or factors relating to specific companies in which the Fund invests. For example, an adverse event, such as an unfavorable earnings report, may depress the value of securities a Fund holds; the price of securities may be particularly sensitive to general movements in the stock market; or a drop in the stock market may depress the price of most or all of the securities a Fund holds. In addition, securities of an issuer in the Fund’s portfolio may decline in price if the issuer fails to make anticipated dividend payments because, among other reasons, the issuer of the security experiences a decline in its financial condition.

Industry Concentration Risk. In following its methodology, each Fund’s Underlying Index from time to time will be concentrated to a significant degree in securities of issuers located in a single industry or a sector. To the extent that an Underlying Index concentrates in the securities of issuers in a particular industry or sector, each Fund will also concentrate its investments to approximately the same extent. By concentrating its investments in an industry or sector, a Fund may face more risks than if it were diversified broadly over numerous industries or sectors. In addition, at times, an industry or sector may be out of favor and underperform other industries or the market as a whole. Any factors detrimental to the performance of such industry or sector will disproportionately impact a Fund’s NAV.

Non-Diversified Fund Risk. Russell Top 200 Pure Growth Portfolio and Russell Top 200 Pure Value Portfolio are non-diversified and can invest a greater portion of their assets in securities of individual issuers than diversified funds. As a result, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund. This may increase a Fund’s volatility and cause the performance of a relatively small number of issuers to have a greater impact on a Fund’s performance.

Non-Correlation Risk. Each Fund’s return may not match the return of its Underlying Index for a number of reasons. For example, each Fund incurs operating expenses not applicable to its Underlying Index, and incurs costs in buying and selling securities, especially when rebalancing the Fund’s securities holdings to reflect changes in the composition of its Underlying Index. In addition, the performance of each Fund and its Underlying Index may vary due to asset valuation differences and differences between each Fund’s portfolio and its Underlying Index resulting from legal restrictions, cost or liquidity constraints.

Small- and Mid-Capitalization Company Risk. For Russell 2000 Equal Weight Portfolio, Russell 2000 Pure Growth Portfolio, Russell 2000 Pure Value Portfolio, Russell Midcap Equal Weight Portfolio, Russell Midcap Pure Growth Portfolio and Russell Midcap Pure Value Portfolio, investing in securities of small- and mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established companies. These companies’ securities may be more volatile and less liquid than those of more established companies. These securities may have returns that vary, sometimes significantly, from the overall securities market. Often small- and mid-capitalization companies and the industries in which they focus are still evolving and, as a result, they may be more sensitive to changing market conditions.

Growth Risk. For Dynamic Large Cap Growth Portfolio, Russell 2000 Pure Growth Portfolio, Russell Midcap Pure Growth Portfolio and Russell Top 200 Pure Growth Portfolio, the market values of “growth” securities may be more volatile than other types of investments. The returns on “growth” securities may or may not move in tandem with the returns on other styles of investing or the overall stock market. Thus, the value of each Fund’s investments will vary and at times may be lower or higher than that of other types of investments.

Micro Capitalization Company Risk. Zacks Micro Cap Portfolio’s investments in the securities of micro capitalization companies involve substantially greater risks of loss and price fluctuations. Micro capitalization companies carry additional risks because their earnings and revenues tend to be less predictable (and some companies may be experiencing significant losses), and their share prices tend to be more volatile and their markets less liquid than companies with larger market capitalizations. Also, it may take a long time before the Fund realizes a gain, if any, on an investment in a micro capitalization company.

Value Risk. For Dynamic Large Cap Value Portfolio, Russell 2000 Pure Value Portfolio, Russell Midcap Pure Value Portfolio and Russell Top 200 Pure Value Portfolio, “value” securities are subject to the risk that the valuations never improve or that the returns on “value” securities are less than returns on other styles of investing or the overall stock market. Thus, the value of each Fund’s investments will vary and at times may be lower or higher than that of other types of investments.

 

 

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C. Federal Income Taxes

Each Fund intends to comply with the provisions of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute substantially all of the Fund’s taxable earnings to its shareholders. As such, the Funds will not be subject to federal income taxes on otherwise taxable income (including net realized gains) that is distributed to the shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

Each Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed each Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing book and tax treatments for in-kind transactions, losses deferred due to wash sales, and passive foreign investment company adjustments, if any.

The Funds file U.S. federal tax returns and tax returns in certain other jurisdictions. Generally, a Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.

D. Investment Transactions and Investment Income

Investment transactions are accounted for on a trade date basis. Realized gains and losses from the sale or disposition of securities are computed on the specific identified cost basis. Interest income is recorded on the accrual basis. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Realized gains, dividends and interest received by a Fund may give rise to withholding and other taxes imposed by foreign countries. Tax conventions between certain countries and the United States may reduce or eliminate such taxes.

The Funds may periodically participate in litigation related to each Fund’s investments. As such, the Funds may receive proceeds from litigation settlements. Any proceeds received are included in the Statements of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Corporate actions (including cash dividends) are recorded net of non-reclaimable foreign tax withholdings on the ex-date.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statements of Operations and the Statements of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of each Fund’s net asset value and, accordingly, they reduce each Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statements of Operations and the Statements of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between each Fund and the Adviser.

E. Country Determination

For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the Adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

F. Expenses

Expenses of the Trust that are directly identifiable to a specific Fund are applied to that Fund. Expenses of the Trust that are not readily identifiable to a specific Fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative net assets of each Fund.

Each Fund is responsible for all of its expenses, including the investment advisory fees, costs of transfer agency, custody, fund administration, legal, audit and other services, interest, taxes, brokerage commissions and other expenses connected with executions of portfolio transactions, sub-licensing fees related to its respective Underlying Index, any distribution fees or expenses, litigation expenses, fees payable to the Trust’s Board members who are not “interested persons” (as defined in the 1940 Act) of the Trust (the “Independent Trustees”), any Trustee who is not an affiliate of the Adviser or Distributor (or any of their affiliates) and who is otherwise an “interested person” of the Trust under the 1940 Act (an “Unaffiliated Trustee”) or the Adviser, expenses incurred in connection with

the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees and any Unaffiliated Trustee, acquired fund fees and expenses, if any, and extraordinary expenses.

 

 

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To the extent a Fund invests in other investment companies, the expenses shown in the accompanying financial statements reflect the expenses of the Fund and do not include any expenses of the investment companies in which it invests. The effects of such investment companies’ expenses are included in the realized and unrealized gain or loss on the investments in the investment companies.

G. Dividends and Distributions to Shareholders

Each Fund declares and pays dividends from net investment income, if any, to its shareholders quarterly and records such dividends on ex-dividend date. Generally, each Fund distributes net realized taxable capital gains, if any, annually in cash and records them on ex-dividend date. Such distributions on a tax basis are determined in conformity with federal income tax regulations, which may differ from GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in such Fund’s financial statements as a tax return of capital at fiscal year-end.

H. Securities Lending

During the six-month period ended October 31, 2016, Russell 2000 Equal Weight Portfolio, Russell 2000 Pure Growth Portfolio, Russell 2000 Pure Value Portfolio, Russell Midcap Equal Weight Portfolio, Russell Midcap Pure Growth Portfolio, Russell Midcap Pure Value Portfolio, Russell Top 200 Pure Growth Portfolio and Zacks Micro Cap Portfolio participated in securities lending. Each Fund loaned portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% (105% for international securities) of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is invested in an affiliated money market fund and is shown as such on the Schedules of Investments. Each Fund bears the risk of loss with respect to the investment of collateral. It is the policy of these Funds to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, each Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to each Fund if, and to the extent that, the market value of the securities loaned were to increase, and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or each Fund. Upon termination, the borrower will return to each Fund the securities loaned and each Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. Each Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to each Fund. Some of these losses may be indemnified by the lending agent. Each Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Securities lending income on the Statements of Operations. The aggregate value of securities out on loan, if any, is shown on the Statements of Assets and Liabilities.

Note 3. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with the Adviser on behalf of each Fund, pursuant to which the Adviser has overall responsibility for the selection and ongoing monitoring of the Funds’ investments, managing the Funds’ business affairs and providing certain clerical, bookkeeping and other administrative services. Pursuant to that Investment Advisory Agreement, each Fund (except for Dynamic Large Cap Growth Portfolio, Dynamic Large Cap Value Portfolio, Russell 2000 Equal Weight Portfolio, Russell Midcap Equal Weight Portfolio, Russell Top 200 Equal Weight Portfolio and Zacks Micro Cap Portfolio) has agreed to pay the Adviser an annual fee of 0.29% of the Fund’s average daily net assets. Each of Russell 2000 Equal Weight Portfolio, Russell Midcap Equal Weight Portfolio and Russell Top 200 Equal Weight Portfolio has agreed to pay the Adviser an annual fee of 0.25% of the Fund’s average daily net assets. Each of Dynamic Large Cap Growth Portfolio, Dynamic Large Cap Value Portfolio and Zacks Micro Cap Portfolio has agreed to pay the Adviser an annual fee of 0.50% of the Fund’s average daily net assets.

The Trust also has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Adviser on behalf of each Fund, pursuant to which the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses (excluding interest expenses, brokerage commissions and other trading expenses, offering costs, taxes, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund (except for Dynamic Large Cap Growth Portfolio, Dynamic Large Cap Value Portfolio, Russell 2000 Equal Weight Portfolio, Russell Midcap Equal Weight Portfolio, Russell Top 200 Equal Weight Portfolio and Zacks Micro Cap Portfolio) from exceeding 0.39% of the Fund’s average daily net assets per year (the “Expense Cap”), through at least August 31, 2017. The Expense Cap for each of Russell 2000 Equal Weight Portfolio, Russell Midcap Equal Weight Portfolio and Russell Top 200 Equal Weight Portfolio is 0.25% of the Fund’s average daily net assets per year, through at least August 31, 2017. The Expense Cap for each of Dynamic Large Cap Growth Portfolio, Dynamic Large Cap Value Portfolio and Zacks Micro Cap Portfolio is 0.60% of the Fund’s average daily net assets per year, through at least August 31, 2017, and sub-licensing fees are excluded from the expenses subject to the Expense Cap for these Funds in addition to the excluded expenses above. Offering costs excluded from each Expense Cap for each Fund are: (a) initial legal fees pertaining to the Funds’ Shares offered for sale; (b) initial Securities and Exchange Commission and state registration fees; and (c) initial fees paid to be listed on an exchange. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2017. During its term, the Expense Agreement cannot be terminated

 

 

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or amended to increase the Expense Cap without approval of the Board of Trustees. The Adviser did not waive fees and/or pay Fund expenses during the period under this Expense Cap for Dynamic Large Cap Growth Portfolio, Dynamic Large Cap Value Portfolio and Russell Top 200 Pure Growth Portfolio.

Further, through August 31, 2018, the Adviser has contractually agreed to waive a portion of each Fund’s management fee in an amount equal to 100% of the net advisory fees an affiliate of the Adviser receives that are attributable to certain of the Fund’s investments in money market funds managed by that affiliate (excluding investments of cash collateral from securities lending). The Adviser cannot discontinue this waiver prior to its expiration. This agreement is not subject to recapture by the Adviser.

For the six-month period ended October 31, 2016, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:

 

Dynamic Large Cap Growth Portfolio    $ 252   
Dynamic Large Cap Value Portfolio      697   
Russell 2000 Equal Weight Portfolio      57,772   
Russell 2000 Pure Growth Portfolio      41,343   
Russell 2000 Pure Value Portfolio      35,357   
Russell Midcap Equal Weight Portfolio      53,319   
Russell Midcap Pure Growth Portfolio      24,151   
Russell Midcap Pure Value Portfolio      32,199   
Russell Top 200 Equal Weight Portfolio      50,823   
Russell Top 200 Pure Growth Portfolio      163   
Russell Top 200 Pure Value Portfolio      23,926   
Zacks Micro Cap Portfolio      41,515   

The Expense Agreement provides that the fees waived or expenses borne by the Adviser are subject to recapture by the Adviser for up to three years from the date the fee was waived or expense was borne by the Adviser, but no recapture payment will be made by a Fund if it would result in the Fund exceeding its Expense Cap as specified above.

For the following Funds, the amounts available for potential future recapture by the Adviser under the Expense Agreement and the expiration schedule at October 31, 2016 are as follows:

 

     Total
Potential
Recapture
Amounts		      Potential Recapture Amounts
Expiring		  
        4/30/17      4/30/18      4/30/19      10/31/19  
Russell 2000 Equal Weight Portfolio    $ 358,431       $ 86,766       $ 91,595       $ 122,351       $ 57,719   
Russell 2000 Pure Growth Portfolio      308,263         88,188         93,101         85,694         41,280   
Russell 2000 Pure Value Portfolio      301,782         88,541         108,992         68,966         35,283   
Russell Midcap Equal Weight Portfolio      334,190         79,739         80,056         121,137         53,258   
Russell Midcap Pure Growth Portfolio      183,902         52,601         64,245         42,984         24,072   
Russell Midcap Pure Value Portfolio      271,037         84,721         86,833         67,330         32,153   
Russell Top 200 Equal Weight Portfolio      303,417         72,372         76,197         104,089         50,759   
Russell Top 200 Pure Growth Portfolio      91,463         45,970         45,493         —         —   
Russell Top 200 Pure Value Portfolio      252,929         81,582         79,809         67,669         23,869   
Zacks Micro Cap Portfolio      244,799         50,214         77,042         76,103         41,440   

The Trust has entered into a Distribution Agreement with Invesco Distributors, Inc. (the “Distributor”), which serves as the distributor of Creation Units for each Fund. The Distributor does not maintain a secondary market in the Shares. The Funds are not charged any fees pursuant to the Distribution Agreement. The Distributor is an affiliate of the Adviser.

The Adviser has entered into a licensing agreement for each Fund with the following entities (each, a “Licensor”):

 

Fund

   

Licensor

Dynamic Large Cap Growth Portfolio    NYSE Group, Inc.
Dynamic Large Cap Value Portfolio    NYSE Group, Inc.
Russell 2000 Equal Weight Portfolio    Frank Russell Company
Russell 2000 Pure Growth Portfolio    Frank Russell Company

 

 

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Fund

   

Licensor

Russell 2000 Pure Value Portfolio    Frank Russell Company
Russell Midcap Equal Weight Portfolio    Frank Russell Company
Russell Midcap Pure Growth Portfolio    Frank Russell Company
Russell Midcap Pure Value Portfolio    Frank Russell Company
Russell Top 200 Equal Weight Portfolio    Frank Russell Company
Russell Top 200 Pure Growth Portfolio    Frank Russell Company
Russell Top 200 Pure Value Portfolio    Frank Russell Company
Zacks Micro Cap Portfolio    Zacks Investment Research

Each Underlying Index name trademark is owned by its respective Licensor. These trademarks have been licensed to the Adviser for use by the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust’s sub-licensing agreement with the Adviser. The Funds are required to pay the sub-licensing fees that are shown on the Statements of Operations. The Funds are not sponsored, endorsed, sold or promoted by the Licensors, and the Licensors make no representation regarding the advisability of investing in any of the Funds.

The Trust has entered into service agreements whereby The Bank of New York Mellon, a wholly-owned subsidiary of The Bank of New York Mellon Corporation, serves as the administrator, custodian, fund accountant and transfer agent for each Fund.

Note 4. Investments in Affiliates

The Adviser and Invesco Mortgage Capital, Inc. REIT are wholly-owned subsidiaries of Invesco Ltd. and therefore, Invesco Ltd. and Invesco Mortgage Capital, Inc. REIT are considered to be affiliated with the Funds. The table below shows certain Funds’ transactions in, and earnings from, investments in affiliates for the six-month period ended October 31, 2016.

Russell 2000 Equal Weight Portfolio

 

     Value
April 30, 2016		      Purchases
at Cost		      Proceeds
from
Sales		      Change in
Unrealized
Appreciation		      Realized
Gain (Loss)		      Value
October 31, 2016		      Dividend
Income		  
Invesco Mortgage Capital, Inc. REIT    $ 3,238       $ 46       $ (1,113 )     $ 508       $ (21 )     $ 2,658       $ 171   

Russell 2000 Pure Value Portfolio

 

     Value
April 30, 2016		      Purchases
at Cost		      Proceeds
from
Sales		      Change in
Unrealized
Appreciation		      Realized
Gain (Loss)		      Value
October 31, 2016		      Dividend
Income		  
Invesco Mortgage Capital, Inc. REIT    $ 257,964       $ 135,100       $ (99,704 )     $ 55,868       $ (12,960 )     $ 336,268       $ 16,813   

Russell Midcap Equal Weight Portfolio

 

     Value
April 30, 2016		      Purchases
at Cost		      Proceeds
from
Sales		      Change in
Unrealized
Appreciation
(Depreciation)		      Realized
Gain (Loss)		      Value
October 31, 2016		      Dividend
Income		  
Invesco Ltd.    $ 12,559       $ 1,305       $ (844 )     $ (716 )     $ (253 )     $ 12,051       $ 241   

Note 5. Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

 

  Level 1 — Prices are determined using quoted prices in an active market for identical assets.

 

  Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

 

 

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  Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect a Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

Except for the Funds listed below, as of October 31, 2016, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedules of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

     Investments in Securities  
     Level 1      Level 2      Level 3      Total  
Russell 2000 Equal Weight Portfolio            

Equity Securities

    $ 12,006,652       $ 2,806       $ 1,137       $ 12,010,595   
  

 

 

     

 

 

     

 

 

     

 

 

  
Russell 2000 Pure Value Portfolio            

Equity Securities

    $ 65,620,111       $ —       $ 68,988       $ 65,689,099   
  

 

 

     

 

 

     

 

 

     

 

 

  
Zacks Micro Cap Portfolio            

Equity Securities

    $ 22,603,241       $ —       $ 2,209       $ 22,605,450   
  

 

 

     

 

 

     

 

 

     

 

 

  

Note 6. Tax Information

The amount and character of income and gains to be distributed are determined in accordance with federal income tax regulations, which may differ from GAAP. Reclassifications are made to the Funds’ capital accounts to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Funds’ fiscal year-end.

Capital loss carryforwards are calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforwards actually available for the Funds to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Funds had capital loss carryforwards as of April 30, 2016, which expire as follows:

 

                      Post-effective/no
expiration		              
    2017     2018     2019     Short-Term     Long-Term     Total*     Expired  
Dynamic Large Cap Growth Portfolio   $ 68,715,641      $ 131,638,879      $ 15,986,258      $ 29,903,540      $ —      $ 246,244,318      $ 14,024,455   
Dynamic Large Cap Value Portfolio     22,558,581        56,819,182        17,964,198        89,975,320        12,540,114        199,857,395        2,783,761   
Russell 2000 Equal Weight Portfolio     2,738,120        2,009,294        2,491,519        1,616,951        737,121        9,593,005        1,028,299   
Russell 2000 Pure Growth Portfolio     9,888,431        10,392,627        4,547,805        5,052,782        2,888,048        32,769,693        6,666,558   
Russell 2000 Pure Value Portfolio     16,547,947        9,588,502        5,376,983        1,312,125        4,553,244        37,378,801        8,615,687   
Russell Midcap Equal Weight Portfolio     3,815,763        3,611,366        741,893        1,442,431        983,110        10,594,563        628,828   
Russell Midcap Pure Growth Portfolio     54,769,394        82,364,246        12,021,724        7,498,360        5,214,028        161,867,752        5,112,579   
Russell Midcap Pure Value Portfolio     12,697,113        18,996,863        2,751,107        2,459,036        947,967        37,852,086        5,347,255   
Russell Top 200 Equal Weight Portfolio     2,328,337        5,621,834        1,626,267        951,778        268,972        10,797,188        87,112   
Russell Top 200 Pure Growth Portfolio     —        —        —        921,324        1,419,515        2,340,839        —   
Russell Top 200 Pure Value Portfolio     —        —        —        377,191        503,025        880,216        —   
Zacks Micro Cap Portfolio     28,782,755        12,380,833        7,234,973        19,513,243        1,761,642        69,673,446        14,330,930   

 

* Capital loss carryforwards as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

 

 

   86  

 

 

 

Note 7. Investment Transactions

For the six-month period ended October 31, 2016, the cost of securities purchased and proceeds from sales of securities (other than short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, if any) were as follows:

 

     Purchases      Sales  
Dynamic Large Cap Growth Portfolio    $ 260,881,379       $ 260,920,927   
Dynamic Large Cap Value Portfolio      646,961,010         650,863,379   
Russell 2000 Equal Weight Portfolio      3,549,477         3,552,683   
Russell 2000 Pure Growth Portfolio      13,595,055         13,297,786   
Russell 2000 Pure Value Portfolio      33,318,881         32,786,225   
Russell Midcap Equal Weight Portfolio      4,939,548         4,933,622   
Russell Midcap Pure Growth Portfolio      28,497,333         28,733,811   
Russell Midcap Pure Value Portfolio      19,347,335         19,293,197   
Russell Top 200 Equal Weight Portfolio      5,492,688         5,511,005   
Russell Top 200 Pure Growth Portfolio      41,533,992         41,894,779   
Russell Top 200 Pure Value Portfolio      18,590,249         19,032,096   
Zacks Micro Cap Portfolio      15,167,148         15,482,175   

For the six-month period ended October 31, 2016, in-kind transactions associated with creations and redemptions were as follows:

 

     Cost of
Securities
Received		      Value of
Securities
Delivered		  
Dynamic Large Cap Growth Portfolio    $ 158,393,739       $ 186,609,999   
Dynamic Large Cap Value Portfolio      558,130,845         561,272,150   
Russell 2000 Equal Weight Portfolio      —         1,776,657   
Russell 2000 Pure Growth Portfolio      6,008,356         7,324,985   
Russell 2000 Pure Value Portfolio      25,832,760         26,284,156   
Russell Midcap Equal Weight Portfolio      —         —   
Russell Midcap Pure Growth Portfolio      12,026,349         20,184,973   
Russell Midcap Pure Value Portfolio      18,225,118         23,008,812   
Russell Top 200 Equal Weight Portfolio      2,089,459         6,070,895   
Russell Top 200 Pure Growth Portfolio      28,230,071         43,705,881   
Russell Top 200 Pure Value Portfolio      16,605,019         24,593,433   
Zacks Micro Cap Portfolio      5,839,247         5,517,366   

Gains (losses) on in-kind transactions are generally not considered taxable gains (losses) for federal income tax purposes.

At October 31, 2016, the cost of investments on a tax basis includes adjustments for financial reporting purposes, as of the most recently completed federal income tax reporting period-end:

 

     Gross
Unrealized
Appreciation		      Gross
Unrealized
(Depreciation)		      Net
Unrealized
Appreciation
(Depreciation)		      Cost  
Dynamic Large Cap Growth Portfolio    $ 36,732,395       $ (11,690,901 )     $ 25,041,494       $ 394,188,364   
Dynamic Large Cap Value Portfolio      64,785,859         (25,027,172 )       39,758,687         961,622,726   
Russell 2000 Equal Weight Portfolio      1,504,266         (1,630,669 )       (126,403 )       12,136,998   
Russell 2000 Pure Growth Portfolio      2,791,633         (2,836,143 )       (44,510 )       29,521,809   
Russell 2000 Pure Value Portfolio      6,229,270         (6,390,570 )       (161,300 )       65,850,399   
Russell Midcap Equal Weight Portfolio      1,827,608         (2,926,436 )       (1,098,828 )       25,036,311   
Russell Midcap Pure Growth Portfolio      5,495,119         (4,151,296 )       1,343,823         59,779,528   
Russell Midcap Pure Value Portfolio      3,268,792         (3,415,469 )       (146,677 )       48,839,550   
Russell Top 200 Equal Weight Portfolio      2,352,838         (1,886,927 )       465,911         30,317,158   
Russell Top 200 Pure Growth Portfolio      11,436,187         (8,254,214 )       3,181,973         135,684,436   
Russell Top 200 Pure Value Portfolio      5,172,675         (870,697 )       4,301,978         58,951,347   
Zacks Micro Cap Portfolio      2,246,378         (890,902 )       1,355,476         21,249,974   

 

 

   87  

 

 

 

Note 8. Trustees’ and Officer’s Fees

Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to the Independent Trustees, any Unaffiliated Trustee, and an Officer of the Trust. The Trustee who is an “interested person” of the Trust does not receive any Trustees’ fees.

The Trust has adopted a deferred compensation plan (the “Plan”). Under the Plan, each Independent Trustee or Unaffiliated Trustee who has executed a Deferred Fee Agreement (a “Participating Trustee”) may defer receipt of all or a portion of his compensation (“Deferral Fees”). Such Deferral Fees are deemed to be invested in select PowerShares Funds. The Deferral Fees payable to the Participating Trustee are valued as of the date such Deferral Fees would have been paid to the Participating Trustee. The value increases with contributions or with increases in the value of the Shares selected, and the value decreases with distributions or with declines in the value of the Shares selected. Obligations under the Plan represent unsecured claims against the general assets of the Funds.

Note 9. Capital

Shares are created and redeemed by each Fund only in Creation Units of 50,000 Shares. Only Authorized Participants are permitted to purchase or redeem Creation Units from the Funds. Such transactions are principally permitted in exchange for Deposit Securities, with a balancing cash component to equate the transaction to the NAV per Share of a Fund of the Trust on the transaction date. However, for all Funds, cash in an amount equivalent to the value of certain securities may be substituted, generally when the securities are not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances.

To the extent that the Funds permit transactions in exchange for Deposit Securities, each Fund may issue Shares in advance of receipt of Deposit Securities subject to various conditions, including a requirement to maintain on deposit with the Trust cash at least equal to 105% of the market value of the missing Deposit Securities. In accordance with the Trust’s Participant Agreement, Creation Units will be issued to an Authorized Participant, notwithstanding the fact that the corresponding Deposit Securities have not been received in part or in whole, in reliance on the undertaking of the Authorized Participant to deliver the missing Deposit Securities as soon as possible, which undertaking shall be secured by the Authorized Participant’s delivery and maintenance of collateral consisting of cash in the form of U.S. dollars in immediately available funds having a value (marked-to-market daily) at least equal to 105%, which the Adviser may change from time to time, of the value of the missing Deposit Securities.

Certain transaction fees may be charged by the Funds for creations and redemptions, which are treated as increases in capital.

Transactions in each Fund’s Shares are disclosed in detail in the Statements of Changes in Net Assets.

Note 10. Indemnifications

Under the Trust’s organizational documents, its officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. Each Independent Trustee and Unaffiliated Trustee is also indemnified against certain liabilities arising out of the performance of his duties to the Trust pursuant to an Indemnification Agreement between such trustee and the Trust. Additionally, in the normal course of business, the Trust enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred. However, based on experience, the Trust believes the risk of loss to be remote.

 

 

   88  

 

 

Fees and Expenses

 

As a shareholder of a Fund of the PowerShares Exchange-Traded Fund Trust, you incur advisory fees and other Fund expenses. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended October 31, 2016.

In addition to the fees and expenses which the PowerShares Zacks Micro Cap Portfolio (the “Portfolio”) bears directly, the Portfolio indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Portfolio invests. The amount of fees and expenses incurred indirectly by the Portfolio will vary because the investment companies have varied expenses and fee levels and the Portfolio may own different proportions of the investment companies at different times. Estimated investment companies’ expenses are not expenses that are incurred directly by the Portfolio. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies the Portfolio invests in. The effect of the estimated investment companies’ expenses that the Portfolio bears indirectly is included in the Portfolio’s total return.

Actual Expenses

The first line in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line in the following table provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed annualized rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs, such as sales charges and brokerage commissions. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, expenses shown in the table do not include the expenses of the underlying funds, which are borne indirectly by the Fund. If transaction costs and indirect expenses were included, your costs would have been higher.

 

    Beginning
Account Value
May 1, 2016		     Ending
Account Value
October 31, 2016		     Annualized
Expense Ratio
Based on the
Six-Month Period		     Expenses Paid
During the
Six-Month  Period(1)		  
PowerShares Dynamic Large Cap Growth Portfolio (PWB)        

Actual

   $ 1,000.00      $ 1,012.23        0.57 %    $ 2.89   

Hypothetical (5% return before expenses)

     1,000.00        1,022.33        0.57        2.91   
PowerShares Dynamic Large Cap Value Portfolio (PWV)        

Actual

     1,000.00        1,046.22        0.56        2.89   

Hypothetical (5% return before expenses)

     1,000.00        1,022.38        0.56        2.85   
PowerShares Russell 2000 Equal Weight Portfolio (EQWS)        

Actual

     1,000.00        1,048.03        0.25        1.29   

Hypothetical (5% return before expenses)

     1,000.00        1,023.95        0.25        1.28   
PowerShares Russell 2000 Pure Growth Portfolio (PXSG)        

Actual

     1,000.00        1,044.73        0.39        2.01   

Hypothetical (5% return before expenses)

     1,000.00        1,023.24        0.39        1.99   

 

 

   89  

 

 

Fees and Expenses (continued)

 

    Beginning
Account Value
May 1, 2016		     Ending
Account Value
October 31, 2016		     Annualized
Expense Ratio
Based on the
Six-Month Period		     Expenses Paid
During the
Six-Month  Period(1)		  
PowerShares Russell 2000 Pure Value Portfolio (PXSV)        

Actual

   $ 1,000.00      $ 1,064.88        0.39 %    $ 2.03   

Hypothetical (5% return before expenses)

     1,000.00        1,023.24        0.39        1.99   
PowerShares Russell Midcap Equal Weight Portfolio (EQWM)        

Actual

     1,000.00        1,016.17        0.25        1.27   

Hypothetical (5% return before expenses)

     1,000.00        1,023.95        0.25        1.28   
PowerShares Russell Midcap Pure Growth Portfolio (PXMG)        

Actual

     1,000.00        1,030.07        0.39        2.00   

Hypothetical (5% return before expenses)

     1,000.00        1,023.24        0.39        1.99   
PowerShares Russell Midcap Pure Value Portfolio (PXMV)        

Actual

     1,000.00        1,045.72        0.39        2.01   

Hypothetical (5% return before expenses)

     1,000.00        1,023.24        0.39        1.99   
PowerShares Russell Top 200 Equal Weight Portfolio (EQWL)        

Actual

     1,000.00        1,041.11        0.25        1.29   

Hypothetical (5% return before expenses)

     1,000.00        1,023.95        0.25        1.28   
PowerShares Russell Top 200 Pure Growth Portfolio (PXLG)        

Actual

     1,000.00        1,013.70        0.39        1.98   

Hypothetical (5% return before expenses)

     1,000.00        1,023.24        0.39        1.99   
PowerShares Russell Top 200 Pure Value Portfolio (PXLV)        

Actual

     1,000.00        1,081.91        0.39        2.05   

Hypothetical (5% return before expenses)

     1,000.00        1,023.24        0.39        1.99   
PowerShares Zacks Micro Cap Portfolio (PZI)        

Actual

     1,000.00        1,062.22        0.70        3.64   

Hypothetical (5% return before expenses)

     1,000.00        1,021.68        0.70        3.57   

 

(1)  Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six-month period ended October 31, 2016. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 184/365.

 

 

   90  

 

Proxy Voting Policies and Procedures

A description of the Trust’s proxy voting policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available, without charge and upon request, by calling (800) 983-0903. This information is also available on the Securities and Exchange Commission’s (“Commission”) website at www.sec.gov.

Information regarding how each Fund voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended June 30, is also available, without charge and upon request, by (i) calling (800) 983-0903; or (ii) accessing the Trust’s Form N-PX on the Commission’s website at www.sec.gov.

Quarterly Portfolios

The Trust files its complete schedule of portfolio holdings for the Funds with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Trust’s Forms N-Q are available on the Commission’s website at www.sec.gov. The Trust’s Forms N-Q may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330.

Frequency Distribution of Discounts and Premiums

A table showing the number of days the market price of each Fund’s shares was greater than the Fund’s net asset value, and the number of days it was less than the Fund’s net asset value (i.e., premium or discount) for the most recently completed calendar year, and the calendar quarters since that year end (or the life of the Fund, if shorter) may be found at the Fund’s website at www.invescopowershares.com.

P-PS-SAR-5    LOGO

©2016 Invesco PowerShares Capital Management LLC

3500 Lacey Road, Suite 700

Downers Grove, IL 60515

   
powershares.com    800 983 0903   LOGO   @PowerShares   

LOGO

 

     October 31, 2016

2016 Semi-Annual Report to Shareholders

 

PPA    PowerShares Aerospace & Defense Portfolio
PZD    PowerShares CleantechTM Portfolio
PDP    PowerShares DWA Momentum Portfolio
PSP    PowerShares Global Listed Private Equity Portfolio
PGJ    PowerShares Golden Dragon China Portfolio
PBP    PowerShares S&P 500 BuyWrite Portfolio
SPHQ   

PowerShares S&P 500® Quality Portfolio

PHO    PowerShares Water Resources Portfolio
PBW    PowerShares WilderHill Clean Energy Portfolio
PUW    PowerShares WilderHill Progressive Energy Portfolio

 

Table of Contents

 

Specialty Portfolios   
Schedules of Investments   

PowerShares Aerospace & Defense Portfolio (PPA)

      3   

PowerShares CleantechTM Portfolio (PZD)

     5   

PowerShares DWA Momentum Portfolio (PDP)

      7   

PowerShares Global Listed Private Equity Portfolio (PSP)

      9   

PowerShares Golden Dragon China Portfolio (PGJ)

      11   

PowerShares S&P 500 BuyWrite Portfolio (PBP)

      13   

PowerShares S&P 500® Quality Portfolio (SPHQ)

     19   

PowerShares Water Resources Portfolio (PHO)

      21   

PowerShares WilderHill Clean Energy Portfolio (PBW)

      23   

PowerShares WilderHill Progressive Energy Portfolio (PUW)

      25   
Statements of Assets and Liabilities      28   
Statements of Operations      30   
Statements of Changes in Net Assets      32   
Financial Highlights      36   
Notes to Financial Statements      42   
Fees and Expenses      55   

 

 

   2  

 

 

PowerShares Aerospace & Defense Portfolio (PPA)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Industry Breakdown (% of the Fund’s Net Assets)
as of October 31, 2016		  
Aerospace & Defense      70.6   
IT Services      7.5   
Industrial Conglomerates      6.5   
Communications Equipment      5.1   
Containers & Packaging      3.9   
Machinery      2.6   
Electronic Equipment, Instruments & Components      2.0   
Construction & Engineering      0.7   
Software      0.7   
Trading Companies & Distributors      0.4   
Chemicals      0.0   
Other Assets Less Liabilities      (0.0)   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks—100.0%   
   Aerospace & Defense—70.6%   
  32,894       AAR Corp.    $ 1,058,200   
  66,992       Aerojet Rocketdyne Holdings, Inc.(b)      1,179,059   
  22,511       Aerovironment, Inc.(b)      540,039   
  146,770       Boeing Co. (The)      20,904,451   
  99,539       BWX Technologies, Inc.      3,903,920   
  25,980       Cubic Corp.      1,109,346   
  42,758       Curtiss-Wright Corp.      3,831,972   
  60,310       DigitalGlobe, Inc.(b)      1,513,781   
  35,395       Engility Holdings, Inc.(b)      1,016,898   
  28,295       Esterline Technologies Corp.(b)      2,078,268   
  120,514       General Dynamics Corp.      18,166,280   
  64,733       HEICO Corp.      4,373,362   
  89,027       Hexcel Corp.      4,049,838   
  45,035       Huntington Ingalls Industries, Inc.      7,266,848   
  39,420       KEYW Holding Corp. (The)(b)      413,516   
  58,171       Kratos Defense & Security Solutions, Inc.(b)      326,921   
  74,345       L-3 Communications Holdings, Inc.      10,180,804   
  78,675       Lockheed Martin Corp.      19,383,947   
  38,851       Mercury Systems, Inc.(b)      1,079,281   
  34,532       Moog, Inc., Class A(b)      2,005,273   
  70,496       Northrop Grumman Corp.      16,143,584   
  56,363       Orbital ATK, Inc.      4,191,153   
  116,494       Raytheon Co.      15,914,245   
  125,062       Rockwell Collins, Inc.      10,545,228   
  9,471       Sparton Corp.(b)      226,641   
  50,237       TASER International, Inc.(b)      1,124,304   
  33,358       Teledyne Technologies, Inc.(b)      3,591,989   
  259,366       Textron, Inc.      10,395,389   
  39,283       TransDigm Group, Inc.      10,703,046   
Number
of Shares		           Value  
   Common Stocks (continued)   
   Aerospace & Defense (continued)   
  47,673       Triumph Group, Inc.    $ 1,129,850   
  188,586       United Technologies Corp.      19,273,489   
  10,328       Vectrus, Inc.(b)      173,201   
     

 

 

  
        197,794,123   
     

 

 

  
   Chemicals—0.0%   
  6,671       Advansix, Inc.(b)      106,469   
     

 

 

  
   Communications Equipment—5.1%   
  22,442       Comtech Telecommunications Corp.      233,397   
  118,945       Harris Corp.      10,611,084   
  47,440       ViaSat, Inc.(b)      3,352,110   
     

 

 

  
        14,196,591   
     

 

 

  
   Construction & Engineering—0.7%   
  137,136       KBR, Inc.      2,030,984   
     

 

 

  
   Containers & Packaging—3.9%   
  142,673       Ball Corp.      10,995,808   
     

 

 

  
   Electronic Equipment, Instruments & Components—2.0%   
  132,137       FLIR Systems, Inc.      4,349,950   
  18,246       OSI Systems, Inc.(b)      1,279,592   
     

 

 

  
        5,629,542   
     

 

 

  
   Industrial Conglomerates—6.5%   
  166,765       Honeywell International, Inc.      18,290,785   
     

 

 

  
   IT Services—7.5%   
  142,985       Booz Allen Hamilton Holding Corp.      4,356,753   
  23,412       CACI International, Inc., Class A(b)      2,290,864   
  157,496       CSRA, Inc.      3,951,575   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   3  

 

 

PowerShares Aerospace & Defense Portfolio (PPA) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks (continued)   
   IT Services (continued)   
  144,072       Leidos Holdings, Inc.    $ 5,989,073   
  36,803       ManTech International Corp., Class A      1,429,060   
  42,566       Science Applications International Corp.      2,933,223   
     

 

 

  
        20,950,548   
     

 

 

  
   Machinery—2.6%   
  70,731       Oshkosh Corp.      3,784,109   
  59,177       Woodward, Inc.      3,490,259   
     

 

 

  
        7,274,368   
     

 

 

  
   Software—0.7%   
  163,319       FireEye, Inc.(b)      1,897,767   
     

 

 

  
   Trading Companies & Distributors—0.4%   
  26,076       Kaman Corp.      1,138,478   
     

 

 

  
   Total Investments
(Cost $259,845,731)—100.0%		      280,305,463   
   Other assets less liabilities—(0.0)%      (44,533 ) 
     

 

 

  
   Net Assets—100.0%    $ 280,260,930   
     

 

 

  

Notes to Schedule of Investments:

(a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b) Non-income producing security.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   4  

 

 

PowerShares CleantechTM Portfolio (PZD)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Electrical Equipment      18.3   
Machinery      12.6   
Electronic Equipment, Instruments & Components      9.1   
Semiconductors & Semiconductor Equipment      8.0   
Professional Services      7.4   
Software      7.2   
Industrial Conglomerates      7.0   
Chemicals      6.2   
Building Products      5.6   
Independent Power & Renewable Electricity Producers      3.8   
Auto Components      3.2   
Life Sciences Tools & Services      3.1   
Aerospace & Defense      2.9   
Commercial Services & Supplies      2.1   
Communications Equipment      1.4   
Mortgage REITs      1.2   
Construction & Engineering      0.9   
Money Market Fund Plus Other Assets Less Liabilities      (0.0)   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
  

Common Stocks and Other Equity

Interests—100.0%

  

  

   Aerospace & Defense—2.9%   
  46,727       Hexcel Corp.    $ 2,125,611   
     

 

 

  
   Auto Components—3.2%   
  66,343       BorgWarner, Inc.      2,377,733   
     

 

 

  
   Building Products—5.6%   
  58,402       Johnson Controls International PLC      2,354,769   
  74,703       Kingspan Group PLC (Ireland)      1,826,135   
     

 

 

  
        4,180,904   
     

 

 

  
   Chemicals—6.2%   
  605       Gurit Holding AG (Switzerland)      512,681   
  52,793       Novozymes A/S, Class B (Denmark)      1,958,105   
  35,213       Umicore SA (Belgium)      2,138,082   
     

 

 

  
        4,608,868   
     

 

 

  
   Commercial Services & Supplies—2.1%   
  49,471       CECO Environmental Corp.      489,763   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Commercial Services & Supplies (continued)   
  99,782       Tomra Systems ASA (Norway)    $ 1,085,316   
     

 

 

  
        1,575,079   
     

 

 

  
   Communications Equipment—1.4%   
  41,740       CalAmp Corp.(b)      539,281   
  150,426       Telit Communications PLC (United Kingdom)      472,912   
     

 

 

  
        1,012,193   
     

 

 

  
   Construction & Engineering—0.9%   
  36,733       Aegion Corp.(b)      679,928   
     

 

 

  
   Electrical Equipment—18.3%   
  102,198       ABB Ltd. (Switzerland)      2,108,240   
  27,223       EnerSys      1,773,034   
  90,027       Gamesa Corp. Tecnologica SA (Spain)      2,079,842   
  38,221       Lumenpulse, Inc. (Canada)(b)      473,681   
  32,966       Schneider Electric SE (France)      2,209,437   
  56,084       Sensata Technologies Holding NV(b)      2,003,881   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   5  

 

 

PowerShares CleantechTM Portfolio (PZD) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Electrical Equipment (continued)   
  53,584       SGL Carbon SE (Germany)(b)(c)    $ 667,273   
  28,047       Vestas Wind Systems A/S (Denmark)      2,246,273   
     

 

 

  
        13,561,661   
     

 

 

  
   Electronic Equipment, Instruments & Components—9.1%   
  23,006       Badger Meter, Inc.      739,643   
  26,165       Horiba Ltd. (Japan)      1,249,924   
  23,630       Itron, Inc.(b)      1,273,657   
  483,077       Opus Group AB (Sweden)      356,090   
  108,185       Pure Technologies Ltd. (Canada)      392,299   
  77,988       Trimble, Inc.(b)      2,155,588   
  16,575       Vaisala OYJ, Class A (Finland)      563,074   
     

 

 

  
        6,730,275   
     

 

 

  
   Independent Power & Renewable Electricity Producers—3.8%   
  10,487,530       Energy Development Corp. (Philippines)      1,277,845   
  31,553       Ormat Technologies, Inc.      1,521,801   
     

 

 

  
        2,799,646   
     

 

 

  
   Industrial Conglomerates—7.0%   
  34,611       Raven Industries, Inc.      742,406   
  12,926       Roper Technologies, Inc.      2,240,205   
  19,544       Siemens AG (Germany)      2,216,327   
     

 

 

  
        5,198,938   
     

 

 

  
   Life Sciences Tools & Services—3.1%   
  5,076       Eurofins Scientific SE (Luxembourg)      2,303,069   
     

 

 

  
   Machinery—12.6%   
  28,902       CLARCOR, Inc.      1,797,993   
  55,458       Donaldson Co., Inc.      2,025,326   
  13,066       Kadant, Inc.      674,859   
  10,614       Lindsay Corp.(c)      831,076   
  31,257       Woodward, Inc.      1,843,538   
  45,160       Xylem, Inc.      2,182,583   
     

 

 

  
        9,355,375   
     

 

 

  
   Mortgage REITs—1.2%   
  39,853       Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT      911,040   
     

 

 

  
   Professional Services—7.4%   
  50,693       Intertek Group PLC (United Kingdom)      2,115,437   
  27,793       Mistras Group, Inc.(b)      581,985   
  56,122       Ricardo PLC (United Kingdom)      634,147   
  1,042       SGS SA (Switzerland)      2,113,714   
     

 

 

  
        5,445,283   
     

 

 

  
   Semiconductors & Semiconductor Equipment—8.0%   
  24,869       Advanced Energy Industries, Inc.(b)      1,186,251   
  63,397       Cree, Inc.(b)      1,413,753   
  144,575       Meyer Burger Technology AG (Switzerland)(b)(c)      473,681   
  18,701       Power Integrations, Inc.      1,205,280   
  18,902       SMA Solar Technology AG (Germany)(c)      484,235   
  41,791       SolarEdge Technologies, Inc.(b)(c)      572,537   
  81,971       SunPower Corp.(b)(c)      593,470   
     

 

 

  
        5,929,207   
     

 

 

  
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Software—7.2%   
  25,221       ANSYS, Inc.(b)    $ 2,303,938   
  32,482       Autodesk, Inc.(b)      2,347,799   
  48,941       Silver Spring Networks, Inc.(b)      688,111   
     

 

 

  
        5,339,848   
     

 

 

  
   Total Investments
(excluding investments purchased with cash collateral from securities on loan)
(Cost $59,091,975)—100.0%		      74,134,658   
     

 

 

  
     
   Investments Purchased with Cash Collateral from Securities on Loan    
     
   Money Market Fund—3.7%   
  2,725,262       Invesco Government & Agency Portfolio—Institutional Class,
0.29%(d)(e)
(Cost $2,725,262)		      2,725,262   
     

 

 

  
   Total Investments
(Cost $61,817,237)—103.7%		      76,859,920   
   Other assets less liabilities—(3.7)%      (2,750,198 ) 
     

 

 

  
   Net Assets—100.0%    $ 74,109,722   
     

 

 

  

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

(a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b) Non-income producing security.
(c) All or a portion of this security was out on loan at October 31, 2016.
(d) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
(e) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   6  

 

 

PowerShares DWA Momentum Portfolio (PDP)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sector Breakdown (% of the Fund’s Net Assets)
as of October 31, 2016		  
Industrials      17.8   
Consumer Discretionary      15.3   
Information Technology      15.1   
Financials      11.4   
Health Care      10.4   
Real Estate      8.9   
Consumer Staples      8.3   
Materials      7.3   
Utilities      3.8   
Energy      1.7   
Other Assets Less Liabilities      (0.0)   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests—100.0%    
   Consumer Discretionary—15.3%   
  24,711       Amazon.com, Inc.(b)    $ 19,517,242   
  89,566       Carter’s, Inc.      7,733,128   
  197,339       CBS Corp., Class B      11,173,334   
  30,896       Charter Communications, Inc.,
Class A(b)		      7,720,601   
  234,190       Domino’s Pizza, Inc.      39,634,316   
  57,736       Home Depot, Inc. (The)      7,044,369   
  144,743       Newell Brands, Inc.      6,950,559   
  138,259       O’Reilly Automotive, Inc.(b)      36,561,210   
  41,799       Panera Bread Co., Class A(b)      7,973,577   
  27,900       Priceline Group, Inc. (The)(b)      41,131,017   
  175,819       Texas Roadhouse, Inc.      7,124,186   
  114,825       TJX Cos., Inc. (The)      8,468,344   
  46,663       Vail Resorts, Inc.      7,439,949   
     

 

 

  
        208,471,832   
     

 

 

  
   Consumer Staples—8.3%   
  331,549       Altria Group, Inc.      21,922,020   
  63,501       Casey’s General Stores, Inc.      7,174,978   
  560,551       Church & Dwight Co., Inc.      27,052,191   
  76,813       Constellation Brands, Inc., Class A      12,836,988   
  94,635       JM Smucker Co. (The)      12,426,522   
  125,158       Monster Beverage Corp.(b)      18,065,306   
  55,048       Spectrum Brands Holdings, Inc.      7,444,691   
  96,149       Tyson Foods, Inc., Class A      6,812,157   
     

 

 

  
        113,734,853   
     

 

 

  
   Energy—1.7%   
  258,142       Cheniere Energy, Inc.(b)      9,731,953   
  1,150,739       Chesapeake Energy Corp.(b)      6,340,572   
  82,602       Diamondback Energy, Inc.(b)      7,540,737   
     

 

 

  
        23,613,262   
     

 

 

  
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials—11.4%   
  105,151       American Financial Group, Inc.    $ 7,833,750   
  361,587       Arch Capital Group Ltd. (Bermuda)(b)      28,192,939   
  82,415       Chubb Ltd.      10,466,705   
  10,766       Markel Corp.(b)      9,446,411   
  192,449       MarketAxess Holdings, Inc.      29,013,611   
  130,725       RenaissanceRe Holdings Ltd. (Bermuda)      16,247,810   
  202,031       RLI Corp.      11,261,208   
  433,477       W.R. Berkley Corp.      24,751,537   
  231,837       Western Alliance Bancorp(b)      8,661,430   
  12,497       White Mountains Insurance Group Ltd.      10,369,011   
     

 

 

  
        156,244,412   
     

 

 

  
   Health Care—10.4%   
  120,077       ABIOMED, Inc.(b)      12,606,884   
  56,048       Becton, Dickinson and Co.      9,411,020   
  67,601       Cooper Cos., Inc. (The)      11,900,480   
  95,522       Danaher Corp.      7,503,253   
  192,156       DexCom, Inc.(b)      15,034,285   
  191,038       Henry Schein, Inc.(b)      28,502,870   
  46,380       McKesson Corp.      5,898,145   
  32,488       Mettler-Toledo International, Inc.(b)      13,127,751   
  108,810       NuVasive, Inc.(b)      6,499,221   
  51,495       Waters Corp.(b)      7,165,014   
  316,356       West Pharmaceutical Services, Inc.      24,052,547   
     

 

 

  
        141,701,470   
     

 

 

  
   Industrials—17.8%   
  246,713       A.O. Smith Corp.      11,144,026   
  34,338       Acuity Brands, Inc.      7,676,947   
  205,523       Copart, Inc.(b)      10,783,792   
  106,998       Deluxe Corp.      6,548,277   
  65,109       Equifax, Inc.      8,071,563   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   7  

 

 

PowerShares DWA Momentum Portfolio (PDP) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Industrials (continued)   
  49,502       Huntington Ingalls Industries, Inc.    $ 7,987,643   
  119,959       IDEX Corp.      10,369,256   
  92,385       Lockheed Martin Corp.      22,761,816   
  453,041       Macquarie Infrastructure Corp.      37,063,284   
  107,856       Middleby Corp. (The)(b)      12,091,736   
  66,478       Northrop Grumman Corp.      15,223,462   
  141,995       Old Dominion Freight Line, Inc.(b)      10,604,187   
  896,371       Rollins, Inc.      27,626,154   
  134,366       Roper Technologies, Inc.      23,286,971   
  66,388       Stanley Black & Decker, Inc.      7,557,610   
  157,910       Toro Co. (The)      7,560,731   
  61,080       TransDigm Group, Inc.      16,641,857   
     

 

 

  
        242,999,312   
     

 

 

  
   Information Technology—15.1%   
  312,931       Amphenol Corp., Class A      20,631,541   
  322,099       Cadence Design Systems, Inc.(b)      8,239,292   
  35,987       CoStar Group, Inc.(b)      6,733,887   
  111,368       Electronic Arts, Inc.(b)      8,744,615   
  72,060       Facebook, Inc., Class A(b)      9,439,139   
  65,448       Fair Isaac Corp.      7,898,265   
  166,145       Fiserv, Inc.(b)      16,361,960   
  46,162       FleetCor Technologies, Inc.(b)      8,092,199   
  129,412       Gartner, Inc.(b)      11,134,609   
  91,541       Jack Henry & Associates, Inc.      7,416,652   
  284,645       Manhattan Associates, Inc.(b)      14,414,423   
  278,281       MasterCard, Inc., Class A      29,781,633   
  107,941       Monolithic Power Systems, Inc.      8,506,830   
  118,952       NVIDIA Corp.      8,464,624   
  164,302       Take-Two Interactive Software,
Inc.(b)		      7,293,366   
  63,041       Tyler Technologies, Inc.(b)      10,111,776   
  70,982       Ultimate Software Group, Inc.
(The)(b)		      14,976,492   
  92,092       Visa, Inc., Class A      7,598,511   
     

 

 

  
        205,839,814   
     

 

 

  
   Materials—7.3%   
  52,413       Air Products & Chemicals, Inc.      6,992,942   
  385,449       Ball Corp.      29,706,554   
  89,645       Ecolab, Inc.      10,234,770   
  86,023       International Flavors & Fragrances, Inc.      11,250,088   
  484,511       PolyOne Corp.      14,162,256   
  167,205       RPM International, Inc.      7,948,926   
  78,681       Sherwin-Williams Co. (The)      19,265,830   
     

 

 

  
        99,561,366   
     

 

 

  
   Real Estate—8.9%   
  380,067       American Tower Corp. REIT      44,540,052   
  158,712       Apartment Investment & Management Co., Class A REIT      6,994,438   
  78,711       Crown Castle International Corp. REIT      7,161,914   
  21,730       Equinix, Inc. REIT      7,763,694   
  119,293       Equity LifeStyle Properties, Inc. REIT      9,047,181   
  269,399       First Industrial Realty Trust, Inc. REIT      7,114,828   
  1,207,700       General Growth Properties, Inc. REIT      30,132,115   
  143,547       Realty Income Corp. REIT      8,503,724   
     

 

 

  
        121,257,946   
     

 

 

  
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Utilities—3.8%   
  259,968       Aqua America, Inc.    $ 7,981,018   
  98,521       Atmos Energy Corp.      7,328,977   
  209,246       CMS Energy Corp.      8,819,719   
  81,894       Sempra Energy      8,770,847   
  400,547       UGI Corp.      18,541,321   
     

 

 

  
        51,441,882   
     

 

 

  
   Total Investments
(Cost $1,257,449,066)—100.0%		      1,364,866,149   
   Other assets less liabilities—(0.0)%      (233,402 ) 
     

 

 

  
   Net Assets—100.0%    $ 1,364,632,747   
     

 

 

  

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  Non-income producing security.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   8  

 

 

PowerShares Global Listed Private Equity Portfolio (PSP)

October 31, 2016

(Unaudited)

 

Portfolio Composition

  

Industry Breakdown (% of the Fund’s Net Assets)
as of October 31, 2016

  
Capital Markets      51.9   
Diversified Financial Services      23.5   
Internet Software & Services      4.2   
Industrial Conglomerates      3.7   
Electrical Equipment      1.9   
Health Care Providers & Services      1.4   
Food Products      1.2   
Money Market Funds Plus Other Assets Less Liabilities      12.2   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity
Interests—87.8%		    
   Capital Markets—51.9%   
  1,685,738       3i Group PLC (United Kingdom)    $ 13,809,967   
  113,065       Alaris Royalty Corp. (Canada)(b)      1,662,758   
  456,094       Allied Minds PLC (United Kingdom)(c)      1,893,273   
  152,257       Altamir (France)      1,942,765   
  342,234       American Capital Ltd.(c)      5,814,556   
  321,380       Apollo Global Management LLC, Class A      5,874,826   
  439,963       Apollo Investment Corp.(b)      2,600,181   
  455,361       Ares Capital Corp.(b)      6,967,023   
  93,987       AURELIUS Equity Opportunities SE & Co. KGaA (Germany)      5,592,391   
  186,829       BlackRock Capital Investment Corp.      1,404,954   
  1,015,233       Brait SE (South Africa)(c)      6,746,132   
  165,950       Bure Equity AB (Sweden)      1,821,100   
  288,294       Carlyle Group LP (The)(b)      4,468,557   
  57,527       Deutsche Beteiligungs AG (Germany)      1,939,445   
  298,191       Fifth Street Finance Corp.      1,607,250   
  479,471       FS Investment Corp.(b)      4,602,922   
  73,847       Gimv NV (Belgium)      3,966,604   
  72,151       Goldman Sachs BDC, Inc.(b)      1,593,094   
  103,077       Golub Capital BDC, Inc.(b)      1,824,463   
  309,898       GP Investments Ltd., Class A BDR (Brazil)(c)      679,341   
  193,849       Hercules Capital, Inc.      2,657,670   
  673,151       Intermediate Capital Group PLC (United Kingdom)      4,976,302   
  1,589,637       IP Group PLC (United Kingdom)(c)      2,920,885   
  146,710       JAFCO Co. Ltd. (Japan)      4,879,397   
  112,813       Main Street Capital Corp.(b)      3,786,004   
  138,429       Medley Capital Corp.(b)      1,043,755   
  131,734       New Mountain Finance Corp.(b)      1,752,062   
  28,315       Partners Group Holding AG (Switzerland)      14,345,045   
  170,066       PennantPark Investment Corp.(b)      1,280,597   
  278,833       Princess Private Equity Holding Ltd. (Guernsey)      2,558,348   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Capital Markets (continued)   
  628,821       Prospect Capital Corp.(b)    $ 4,961,398   
  847,063       Ratos AB, Class B (Sweden)      3,485,338   
  68,729       Safeguard Scientifics, Inc.(c)      811,002   
  88,426       Solar Capital Ltd.      1,779,131   
  99,111       Triangle Capital Corp.      1,904,913   
  3,623,723       Zeder Investments Ltd. (South Africa)      1,792,711   
     

 

 

  
        131,746,160   
     

 

 

  
   Diversified Financial Services—23.5%   
  49,793       Ackermans & van Haaren NV (Belgium)      6,907,492   
  1,078,141       Better Capital PCC Ltd. (United Kingdom)      1,276,813   
  852,023       China Merchants China Direct Investments Ltd. (China)      1,250,317   
  152,733       Compass Diversified Holdings(b)      2,795,014   
  101,881       Electra Private Equity PLC (United Kingdom)      5,354,839   
  144,258       Eurazeo SA (France)      8,291,053   
  148,401       FNFV Group(c)      1,788,232   
  137,563       HgCapital Trust PLC (United Kingdom)      2,433,605   
  403,890       Leucadia National Corp.      7,540,626   
  210,209       Onex Corp. (Canada)      13,607,710   
  73,242       Wendel SA (France)      8,414,172   
     

 

 

  
        59,659,873   
     

 

 

  
   Electrical Equipment—1.9%   
  2,364,537       Melrose Industries PLC (United Kingdom)      4,871,581   
     

 

 

  
   Food Products—1.2%   
  48,959       Schouw & Co. (Denmark)      3,105,863   
     

 

 

  
   Health Care Providers & Services—1.4%   
  141,467       Lifco AB, Class B (Sweden)      3,584,698   
     

 

 

  
   Industrial Conglomerates—3.7%   
  6,418,698       Fosun International Ltd. (China)      9,319,915   
     

 

 

  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   9  

 

 

PowerShares Global Listed Private Equity Portfolio (PSP) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Internet Software & Services—4.2%   
  104,666       IAC/InterActiveCorp.    $ 6,744,677   
  181,095       Rocket Internet SE (Germany)(b)(c)(d)      3,946,506   
     

 

 

  
        10,691,183   
     

 

 

  
   Total Common Stocks and Other Equity Interests
(Cost $233,589,000)		      222,979,273   
     

 

 

  
     
   Money Market Fund—10.0%   
  25,262,998       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(e)
(Cost $25,262,998)		      25,262,998   
     

 

 

  
   Total Investments
(excluding investments purchased with cash collateral from securities on loan)
(Cost $258,851,998)—97.8%		      248,242,271   
     

 

 

  
     
   Investments Purchased with Cash Collateral from Securities on Loan    
     
   Money Market Fund—11.4%   
  28,901,305       Invesco Government & Agency Portfolio—Institutional Class, 0.29%(e)(f)
(Cost $28,901,305)		      28,901,305   
     

 

 

  
   Total Investments
(Cost $287,753,303)—109.2%		      277,143,576   
   Other assets less liabilities—(9.2)%      (23,342,883 ) 
     

 

 

  
   Net Assets—100.0%    $ 253,800,693   
     

 

 

  

Investment Abbreviations:

BDR—Brazilian Depositary Receipt

Notes to Schedule of Investments:

(a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b) All or a portion of this security was out on loan at October 31, 2016.
(c) Non-income producing security.
(d) Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The value of this security at October 31, 2016 represented 1.55% of the Fund’s Net Assets.
(e) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
(f) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J.

This Fund has holdings greater than 10% of net assets in the following country:

 

United Kingdom     14.8 % 
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   10  

 

 

PowerShares Golden Dragon China Portfolio (PGJ)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sector Breakdown (% of the Fund’s Net Assets)
as of October 31, 2016		  
Information Technology      44.2   
Consumer Discretionary      35.9   
Telecommunication Services      7.0   
Health Care      5.4   
Energy      3.4   
Industrials      1.9   
Financials      1.7   
Real Estate      0.3   
Utilities      0.2   
Money Market Funds Plus Other Assets Less Liabilities      (0.0)   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests—100.0%    
   Consumer Discretionary—35.9%   
  57,898       500.com Ltd., Class A ADR (China)(b)(c)    $ 980,792   
  44,181       China Distance Education Holdings Ltd. ADR (China)      587,607   
  64,197       China Lodging Group Ltd. ADR (China)      2,761,113   
  268,599       Ctrip.com International Ltd. ADR
(China)(c)		      11,858,646   
  500,517       JD.Com, Inc., Class A ADR (China)(c)      12,988,416   
  184,217       Jumei International Holding Ltd., Class A ADR (China)(c)      941,349   
  96,577       Kandi Technologies Group, Inc.
(China)(b)(c)		      482,885   
  133,695       Kingold Jewelry, Inc.(b)(c)      263,379   
  161,073       New Oriental Education & Technology Group, Inc. ADR (China)(c)      8,074,590   
  133,175       Qunar Cayman Islands Ltd., Class B ADR (China)(b)(c)      3,937,985   
  91,038       TAL Education Group, Class A ADR (China)(b)(c)      7,414,135   
  59,036       Tarena International, Inc., Class A ADR (China)      953,431   
  63,610       Tuniu Corp., Class A ADR (China)(b)(c)      571,854   
  449,088       Vipshop Holdings Ltd., Class A ADR (China)(c)      6,139,033   
     

 

 

  
        57,955,215   
     

 

 

  
   Energy—3.4%   
  23,302       China Petroleum & Chemical Corp.,
H-Shares ADR (China)		      1,687,531   
  21,748       CNOOC Ltd. ADR (China)      2,728,939   
  16,771       PetroChina Co. Ltd., H-Shares ADR (China)      1,135,900   
  26,179       Sino Clean Energy, Inc. (China)(c)      0   
     

 

 

  
        5,552,370   
     

 

 

  
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials—1.7%   
  54,482       China Life Insurance Co. Ltd., H-Shares ADR (China)    $ 672,853   
  73,264       CNinsure, Inc. ADR (China)(c)      600,032   
  50,194       Noah Holdings Ltd. ADR (China)(b)(c)      1,182,570   
  15,189       Yintech Investment Holdings Ltd. ADR (China)(c)      276,440   
     

 

 

  
        2,731,895   
     

 

 

  
   Health Care—5.4%   
  54,462       China Biologic Products, Inc. (China)(c)      6,432,507   
  91,654       iKang Healthcare Group, Inc., Class A ADR (China)(c)      1,667,186   
  115,240       Sinovac Biotech Ltd. (China)(c)      713,336   
     

 

 

  
        8,813,029   
     

 

 

  
   Industrials—1.9%   
  54,260       51job, Inc. ADR (China)(c)      1,844,840   
  57,884       eHi Car Services Ltd., Class A ADR (China)(b)(c)      578,840   
  40,458       Zhaopin Ltd., Class A ADR (China)(b)(c)      595,137   
     

 

 

  
        3,018,817   
     

 

 

  
   Information Technology—44.2%   
  115,285       21Vianet Group, Inc., Class A ADR (China)(b)(c)      842,733   
  139,761       58.com, Inc., Class A ADR (China)(b)(c)      5,848,998   
  93,237       Autohome, Inc., Class A ADR (China)(c)      2,186,408   
  74,343       Baidu, Inc., Class A ADR (China)(c)      13,148,303   
  44,720       Baozun, Inc. ADR (China)(b)(c)      592,093   
  55,220       Bitauto Holdings Ltd. ADR (China)(b)(c)      1,409,767   
  117,024       Canadian Solar, Inc. (Canada)(b)(c)      1,689,827   
  37,509       Changyou.com Ltd., Class A ADR (China)(c)      992,113   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   11  

 

 

PowerShares Golden Dragon China Portfolio (PGJ) (continued)

October 31, 2016

(Unaudited)

 

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Information Technology (continued)   
  74,433       Cheetah Mobile, Inc., Class A ADR (China)(b)(c)    $ 796,433   
  37,119       China Customer Relations Center, Inc. (China)(b)(c)      498,137   
  35,860       ChinaCache International Holdings Ltd. ADR (China)(c)      120,490   
  14,517       Daqo New Energy Corp. ADR (China)(b)(c)      328,229   
  602,562       Fang Holdings Ltd. ADR (China)(c)      2,006,531   
  120,692       Hollysys Automation Technologies Ltd. (China)      2,402,978   
  81,584       JA Solar Holdings Co. Ltd. ADR (China)(b)(c)      474,819   
  45,342       JinkoSolar Holding Co. Ltd. ADR (China)(b)(c)      698,720   
  71,292       KongZhong Corp. ADR (China)(c)      476,231   
  41,481       Leju Holdings Ltd. ADR (China)(b)(c)      157,628   
  99,966       Momo, Inc., Class A ADR (China)(c)      2,407,181   
  60,000       NetEase, Inc. ADR (China)      15,419,400   
  170,038       NQ Mobile, Inc., Class A ADR (China)(b)(c)      588,331   
  62,936       Phoenix New Media Ltd., Class A ADR (China)(c)      227,199   
  146,498       Renren, Inc., Class A ADR (China)(c)      287,136   
  83,125       SINA Corp. (China)(c)      5,996,637   
  78,415       Sohu.com, Inc. (China)(c)      2,935,073   
  127,169       SPI Energy Co. Ltd. ADR (China)(b)(c)      278,500   
  96,498       Weibo Corp., Class A ADR (China)(b)(c)      4,439,873   
  15,189       Yirendai Ltd. ADR (China)(b)(c)      440,481   
  76,611       YY, Inc., Class A ADR (China)(c)      3,682,691   
     

 

 

  
        71,372,940   
     

 

 

  
   Real Estate—0.3%   
  79,480       Xinyuan Real Estate Co. Ltd. ADR (China)      428,397   
     

 

 

  
   Telecommunication Services—7.0%   
  174,076       China Mobile Ltd. ADR (China)      9,997,185   
  10,897       China Telecom Corp. Ltd., H-Shares ADR (China)      561,740   
  63,580       China Unicom (Hong Kong) Ltd. ADR (China)(b)      745,157   
     

 

 

  
        11,304,082   
     

 

 

  
   Utilities—0.2%   
  14,735       Huaneng Power International, Inc.,
H-Shares ADR (China)		      362,776   
     

 

 

  
   Total Common Stocks and Other Equity Interests
(Cost $155,227,560)		      161,539,521   
     

 

 

  
     
   Money Market Fund—0.1%   
  124,945       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(d)
(Cost $124,945)		      124,945   
     

 

 

  
   Total Investments
(excluding investments purchased with cash collateral from securities on loan)
(Cost $155,352,505)—100.1%		      161,664,466   
     

 

 

  
Number
of Shares		          Value  
   Investments Purchased with Cash Collateral from Securities on Loan    
    
   Money Market Fund—12.9%   
  20,822,537       Invesco Government & Agency Portfolio—Institutional Class,
0.29%(d)(e)
(Cost $20,822,537)		   $ 20,822,537   
    

 

 

  
   Total Investments
(Cost $176,175,042)—113.0%		     182,487,003   
   Other assets less liabilities—(13.0)%     (21,049,847 ) 
    

 

 

  
   Net Assets—100.0%   $ 161,437,156   
    

 

 

  

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  All or a portion of this security was out on loan at October 31, 2016.
(c)  Non-income producing security.
(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J.

This Fund has holdings greater than 10% of net assets in the following country:

 

China     98.9 % 
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   12  

 

 

PowerShares S&P 500 BuyWrite Portfolio (PBP)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sector Breakdown (% of the Fund’s Net Assets)
as of October 31, 2016		  
Information Technology      21.9   
Health Care      14.1   
Financials      13.4   
Consumer Discretionary      12.4   
Consumer Staples      10.1   
Industrials      10.1   
Energy      7.3   
Utilities      3.4   
Real Estate      3.0   
Materials      2.8   
Telecommunication Services      2.5   
Other Assets Less Liabilities      (1.0)   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity
Interests—101.0%(b)		    
   Consumer Discretionary—12.4%   
  1,133       Advance Auto Parts, Inc.    $ 158,711   
  6,056       Amazon.com, Inc.(c)      4,783,150   
  1,022       AutoNation, Inc.(c)      44,835   
  451       AutoZone, Inc.(c)      334,714   
  2,376       Bed Bath & Beyond, Inc.      96,038   
  4,248       Best Buy Co., Inc.      165,290   
  3,100       BorgWarner, Inc.      111,104   
  2,947       CarMax, Inc.(c)      147,173   
  6,662       Carnival Corp.      327,104   
  6,262       CBS Corp., Class B      354,554   
  3,336       Charter Communications, Inc., Class A(c)      833,633   
  449       Chipotle Mexican Grill, Inc.(c)      161,981   
  4,293       Coach, Inc.      154,076   
  36,975       Comcast Corp., Class A      2,285,795   
  5,214       D.R. Horton, Inc.      150,320   
  1,943       Darden Restaurants, Inc.      125,887   
  4,199       Delphi Automotive PLC (United Kingdom)      273,229   
  2,322       Discovery Communications, Inc., Class A(c)      60,627   
  3,451       Discovery Communications, Inc., Class C(c)      86,655   
  3,990       Dollar General Corp.      275,669   
  3,629       Dollar Tree, Inc.(c)      274,171   
  1,855       Expedia, Inc., Class A      239,722   
  2,083       Foot Locker, Inc.      139,082   
  60,062       Ford Motor Co.      705,128   
  3,373       Gap, Inc. (The)      93,061   
  1,773       Garmin Ltd.      85,742   
  21,876       General Motors Co.      691,282   
  2,292       Genuine Parts Co.      207,632   
  4,039       Goodyear Tire & Rubber Co. (The)      117,252   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Consumer Discretionary (continued)   
  3,372       H&R Block, Inc.    $ 77,455   
  5,814       Hanesbrands, Inc.      149,420   
  2,752       Harley-Davidson, Inc.      156,919   
  1,075       Harman International Industries, Inc.      85,688   
  1,737       Hasbro, Inc.      144,883   
  19,017       Home Depot, Inc. (The)      2,320,264   
  6,167       Interpublic Group of Cos., Inc. (The)      138,079   
  2,764       Kohl’s Corp.      120,925   
  3,698       L Brands, Inc.      266,959   
  2,057       Leggett & Platt, Inc.      94,375   
  2,891       Lennar Corp., Class A      120,526   
  4,727       LKQ Corp.(c)      152,588   
  13,462       Lowe’s Cos., Inc.      897,242   
  4,747       Macy’s, Inc.      173,218   
  4,923       Marriott International, Inc., Class A      338,210   
  5,242       Mattel, Inc.      165,280   
  13,134       McDonald’s Corp.      1,478,494   
  2,601       Michael Kors Holdings Ltd.(c)      132,079   
  970       Mohawk Industries, Inc.(c)      178,771   
  6,598       Netflix, Inc.(c)      823,892   
  7,421       Newell Brands, Inc.      356,356   
  5,857       News Corp., Class A      70,987   
  1,843       News Corp., Class B      22,853   
  20,752       NIKE, Inc., Class B      1,041,335   
  1,789       Nordstrom, Inc.      93,028   
  3,641       Omnicom Group, Inc.      290,625   
  1,461       O’Reilly Automotive, Inc.(c)      386,347   
  764       Priceline Group, Inc. (The)(c)      1,126,312   
  4,760       PulteGroup, Inc.      88,536   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   13  

 

 

PowerShares S&P 500 BuyWrite Portfolio (PBP) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Consumer Discretionary (continued)   
  1,235       PVH Corp.    $ 132,120   
  868       Ralph Lauren Corp., Class A      85,151   
  6,103       Ross Stores, Inc.      381,682   
  2,585       Royal Caribbean Cruises Ltd.      198,709   
  1,465       Scripps Networks Interactive, Inc., Class A      94,287   
  1,164       Signet Jewelers Ltd.      94,587   
  10,011       Staples, Inc.      74,081   
  22,572       Starbucks Corp.      1,197,896   
  8,847       Target Corp.      608,054   
  3,299       TEGNA, Inc.      64,726   
  1,654       Tiffany & Co.      121,437   
  11,972       Time Warner, Inc.      1,065,388   
  10,106       TJX Cos., Inc. (The)      745,318   
  2,057       Tractor Supply Co.      128,830   
  1,759       TripAdvisor, Inc., Class A(c)      113,420   
  16,376       Twenty-First Century Fox, Inc.,
Class A		      430,198   
  7,497       Twenty-First Century Fox, Inc.,
Class B		      197,846   
  903       Ulta Salon, Cosmetics & Fragrance, Inc.(c)      219,736   
  2,822       Under Armour, Inc., Class A(c)      87,764   
  2,837       Under Armour, Inc., Class C(c)      73,365   
  1,371       Urban Outfitters, Inc.(c)      45,860   
  5,106       VF Corp.      276,796   
  5,344       Viacom, Inc., Class B      200,721   
  22,756       Walt Disney Co. (The)      2,109,254   
  1,162       Whirlpool Corp.      174,091   
  1,691       Wyndham Worldwide Corp.      111,335   
  1,223       Wynn Resorts Ltd.      115,635   
  5,366       Yum! Brands, Inc.      462,978   
     

 

 

  
        34,586,528   
     

 

 

  
   Consumer Staples—10.1%   
  30,072       Altria Group, Inc.      1,988,361   
  8,954       Archer-Daniels-Midland Co.      390,126   
  2,807       Brown-Forman Corp., Class B      129,599   
  2,993       Campbell Soup Co.      162,640   
  3,964       Church & Dwight Co., Inc.      191,303   
  1,993       Clorox Co. (The)      239,200   
  59,785       Coca-Cola Co. (The)      2,534,884   
  13,720       Colgate-Palmolive Co.      979,059   
  6,415       ConAgra Foods, Inc.      309,075   
  2,727       Constellation Brands, Inc., Class A      455,736   
  6,742       Costco Wholesale Corp.      996,940   
  7,261       Coty, Inc., Class A      166,930   
  16,410       CVS Health Corp.      1,380,081   
  2,854       Dr Pepper Snapple Group, Inc.      250,553   
  3,400       Estee Lauder Cos., Inc. (The), Class A      296,242   
  9,188       General Mills, Inc.      569,472   
  2,161       Hershey Co. (The)      221,416   
  4,159       Hormel Foods Corp.      160,121   
  1,792       JM Smucker Co. (The)      235,307   
  3,881       Kellogg Co.      291,580   
  5,535       Kimberly-Clark Corp.      633,259   
  9,170       Kraft Heinz Co. (The)      815,671   
  14,606       Kroger Co. (The)      452,494   
  1,770       McCormick & Co., Inc.      169,690   
  2,843       Mead Johnson Nutrition Co.      212,571   
  2,835       Molson Coors Brewing Co., Class B      294,301   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Consumer Staples (continued)   
  23,941       Mondelez International, Inc., Class A    $ 1,075,909   
  2,081       Monster Beverage Corp.(c)      300,372   
  22,150       PepsiCo, Inc.      2,374,480   
  23,877       Philip Morris International, Inc.      2,302,698   
  41,075       Procter & Gamble Co. (The)      3,565,310   
  12,741       Reynolds American, Inc.      701,774   
  7,860       Sysco Corp.      378,223   
  4,578       Tyson Foods, Inc., Class A      324,351   
  13,159       Walgreens Boots Alliance, Inc.      1,088,644   
  23,328       Wal-Mart Stores, Inc.      1,633,427   
  4,907       Whole Foods Market, Inc.      138,819   
     

 

 

  
        28,410,618   
     

 

 

  
   Energy—7.3%   
  8,399       Anadarko Petroleum Corp.      499,237   
  5,840       Apache Corp.      347,363   
  6,585       Baker Hughes, Inc.      364,809   
  7,159       Cabot Oil & Gas Corp.      149,480   
  11,471       Chesapeake Energy Corp.(c)      63,205   
  29,036       Chevron Corp.      3,041,521   
  1,462       Cimarex Energy Co.      188,788   
  2,188       Concho Resources, Inc.(c)      277,745   
  19,061       ConocoPhillips      828,200   
  8,058       Devon Energy Corp.      305,318   
  8,475       EOG Resources, Inc.      766,310   
  2,659       EQT Corp.      175,494   
  63,822       Exxon Mobil Corp.      5,317,649   
  3,472       FMC Technologies, Inc.(c)      112,041   
  13,253       Halliburton Co.      609,638   
  1,664       Helmerich & Payne, Inc.      105,015   
  4,143       Hess Corp.      198,740   
  29,547       Kinder Morgan, Inc.      603,645   
  13,040       Marathon Oil Corp.      171,867   
  8,138       Marathon Petroleum Corp.      354,735   
  2,492       Murphy Oil Corp.      64,468   
  5,812       National Oilwell Varco, Inc.      186,565   
  3,057       Newfield Exploration Co.(c)      124,084   
  6,613       Noble Energy, Inc.      227,950   
  11,757       Occidental Petroleum Corp.      857,203   
  3,239       ONEOK, Inc.      156,865   
  6,840       Phillips 66      555,066   
  2,610       Pioneer Natural Resources Co.      467,242   
  2,893       Range Resources Corp.      97,755   
  21,404       Schlumberger Ltd.      1,674,435   
  7,594       Southwestern Energy Co.(c)      78,902   
  10,791       Spectra Energy Corp.      451,172   
  1,828       Tesoro Corp.      155,325   
  5,286       Transocean Ltd.(c)      50,798   
  7,100       Valero Energy Corp.      420,604   
  10,512       Williams Cos., Inc. (The)      306,950   
     

 

 

  
        20,356,184   
     

 

 

  
   Financials—13.4%   
  829       Affiliated Managers Group, Inc.(c)      109,975   
  6,303       Aflac, Inc.      434,088   
  5,717       Allstate Corp. (The)      388,184   
  11,943       American Express Co.      793,254   
  15,655       American International Group, Inc.      965,913   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   14  

 

 

PowerShares S&P 500 BuyWrite Portfolio (PBP) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials (continued)   
  2,484       Ameriprise Financial, Inc.    $ 219,561   
  4,088       Aon PLC      453,073   
  2,725       Arthur J. Gallagher & Co.      131,427   
  927       Assurant, Inc.      74,642   
  157,064       Bank of America Corp.      2,591,556   
  16,432       Bank of New York Mellon Corp. (The)      711,013   
  12,536       BB&T Corp.      491,411   
  29,222       Berkshire Hathaway, Inc., Class B(c)      4,216,735   
  1,878       BlackRock, Inc.      640,849   
  7,789       Capital One Financial Corp.      576,698   
  18,530       Charles Schwab Corp. (The)      587,401   
  7,157       Chubb Ltd.      908,939   
  2,305       Cincinnati Financial Corp.      163,148   
  44,717       Citigroup, Inc.      2,197,841   
  7,995       Citizens Financial Group, Inc.      210,588   
  5,215       CME Group, Inc., Class A      522,021   
  2,677       Comerica, Inc.      139,445   
  6,212       Discover Financial Services      349,922   
  4,213       E*TRADE Financial Corp.(c)      118,638   
  11,795       Fifth Third Bancorp      256,659   
  5,409       Franklin Resources, Inc.      182,067   
  5,803       Goldman Sachs Group, Inc. (The)      1,034,327   
  5,940       Hartford Financial Services Group, Inc. (The)      262,013   
  16,707       Huntington Bancshares, Inc.      177,094   
  1,834       Intercontinental Exchange, Inc.      495,895   
  6,309       Invesco Ltd.(d)      177,220   
  55,592       JPMorgan Chase & Co.      3,850,302   
  16,656       KeyCorp      235,183   
  1,419       Legg Mason, Inc.      40,754   
  4,992       Leucadia National Corp.      93,201   
  3,583       Lincoln National Corp.      175,889   
  4,254       Loews Corp.      183,050   
  2,413       M&T Bank Corp.      296,147   
  7,976       Marsh & McLennan Cos., Inc.      505,599   
  16,913       MetLife, Inc.      794,234   
  2,575       Moody’s Corp.      258,839   
  22,657       Morgan Stanley      760,595   
  1,757       Nasdaq, Inc.      112,395   
  4,879       Navient Corp.      62,354   
  3,279       Northern Trust Corp.      237,465   
  4,786       People’s United Financial, Inc.      77,725   
  7,563       PNC Financial Services Group, Inc. (The)      723,023   
  4,116       Principal Financial Group, Inc.      224,734   
  8,956       Progressive Corp. (The)      282,204   
  6,725       Prudential Financial, Inc.      570,213   
  19,319       Regions Financial Corp.      206,906   
  4,064       S&P Global, Inc.      495,198   
  5,643       State Street Corp.      396,195   
  7,717       SunTrust Banks, Inc.      349,040   
  12,193       Synchrony Financial      348,598   
  3,825       T. Rowe Price Group, Inc.      244,838   
  1,715       Torchmark Corp.      108,748   
  4,437       Travelers Cos., Inc. (The)      479,995   
  24,761       U.S. Bancorp      1,108,302   
  3,611       Unum Group      127,829   
  69,891       Wells Fargo & Co.      3,215,685   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials (continued)   
  1,998       Willis Towers Watson PLC    $ 251,548   
  4,232       XL Group Ltd. (Ireland)      146,850   
  3,157       Zions Bancorporation      101,687   
     

 

 

  
        37,646,922   
     

 

 

  
   Health Care—14.1%   
  22,625       Abbott Laboratories      887,805   
  25,064       AbbVie, Inc.      1,398,070   
  5,400       Aetna, Inc.      579,690   
  5,010       Agilent Technologies, Inc.      218,286   
  3,451       Alexion Pharmaceuticals, Inc.(c)      450,355   
  6,094       Allergan PLC(c)      1,273,280   
  2,783       AmerisourceBergen Corp.      195,701   
  11,518       Amgen, Inc.      1,625,881   
  4,051       Anthem, Inc.      493,655   
  7,534       Baxter International, Inc.      358,543   
  3,278       Becton, Dickinson and Co.      550,409   
  3,373       Biogen, Inc.(c)      945,047   
  20,943       Boston Scientific Corp.(c)      460,746   
  25,716       Bristol-Myers Squibb Co.      1,309,202   
  1,131       C.R. Bard, Inc.      245,065   
  4,904       Cardinal Health, Inc.      336,856   
  11,930       Celgene Corp.(c)      1,219,007   
  2,628       Centene Corp.(c)      164,197   
  4,626       Cerner Corp.(c)      270,991   
  3,949       Cigna Corp.      469,260   
  751       Cooper Cos., Inc. (The)      132,206   
  9,352       Danaher Corp.      734,600   
  2,547       DaVita, Inc.(c)      149,305   
  3,586       DENTSPLY Sirona, Inc.      206,446   
  3,277       Edwards Lifesciences Corp.(c)      312,036   
  14,950       Eli Lilly & Co.      1,103,908   
  3,051       Endo International PLC(c)      57,206   
  9,699       Express Scripts Holding Co.(c)      653,713   
  20,311       Gilead Sciences, Inc.      1,495,499   
  4,545       HCA Holdings, Inc.(c)      347,829   
  1,259       Henry Schein, Inc.(c)      187,843   
  4,270       Hologic, Inc.(c)      153,763   
  2,295       Humana, Inc.      393,661   
  2,256       Illumina, Inc.(c)      307,132   
  593       Intuitive Surgical, Inc.(c)      398,543   
  42,107       Johnson & Johnson      4,883,991   
  1,575       Laboratory Corp. of America Holdings(c)      197,410   
  1,658       Mallinckrodt PLC(c)      98,253   
  3,473       McKesson Corp.      441,661   
  21,270       Medtronic PLC      1,744,565   
  42,560       Merck & Co., Inc.      2,499,123   
  408       Mettler-Toledo International, Inc.(c)      164,865   
  7,080       Mylan NV(c)      258,420   
  1,283       Patterson Cos., Inc.      54,797   
  1,684       PerkinElmer, Inc.      85,699   
  2,206       Perrigo Co. PLC      183,517   
  93,357       Pfizer, Inc.      2,960,350   
  2,140       Quest Diagnostics, Inc.      174,282   
  1,162       Regeneron Pharmaceuticals, Inc.(c)      400,913   
  4,385       St. Jude Medical, Inc.      341,328   
  4,782       Stryker Corp.      551,604   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   15  

 

 

PowerShares S&P 500 BuyWrite Portfolio (PBP) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Health Care (continued)   
  6,068       Thermo Fisher Scientific, Inc.    $ 892,178   
  14,658       UnitedHealth Group, Inc.      2,071,615   
  1,387       Universal Health Services, Inc., Class B      167,425   
  1,438       Varian Medical Systems, Inc.(c)      130,470   
  3,813       Vertex Pharmaceuticals, Inc.(c)      289,254   
  1,241       Waters Corp.(c)      172,673   
  3,079       Zimmer Biomet Holdings, Inc.      324,527   
  7,619       Zoetis, Inc.      364,188   
     

 

 

  
        39,538,844   
     

 

 

  
   Industrials—10.1%   
  9,302       3M Co.      1,537,621   
  676       Acuity Brands, Inc.      151,133   
  1,895       Alaska Air Group, Inc.      136,857   
  1,476       Allegion PLC      94,228   
  8,155       American Airlines Group, Inc.      331,093   
  3,577       AMETEK, Inc.      157,746   
  6,749       Arconic, Inc.      193,831   
  8,929       Boeing Co. (The)      1,271,757   
  2,196       C.H. Robinson Worldwide, Inc.      149,592   
  8,991       Caterpillar, Inc.      750,389   
  1,315       Cintas Corp.      140,271   
  14,559       CSX Corp.      444,195   
  2,388       Cummins, Inc.      305,234   
  4,452       Deere & Co.      393,112   
  11,526       Delta Air Lines, Inc.      481,441   
  2,389       Dover Corp.      159,800   
  559       Dun & Bradstreet Corp. (The)      69,791   
  6,998       Eaton Corp. PLC      446,262   
  9,904       Emerson Electric Co.      501,935   
  1,837       Equifax, Inc.      227,733   
  2,787       Expeditors International of Washington, Inc.      143,447   
  4,447       Fastenal Co.      173,344   
  3,759       FedEx Corp.      655,269   
  2,007       Flowserve Corp.      84,996   
  2,144       Fluor Corp.      111,467   
  4,628       Fortive Corp.      236,259   
  2,369       Fortune Brands Home & Security, Inc.      129,418   
  4,417       General Dynamics Corp.      665,819   
  137,924       General Electric Co.      4,013,588   
  11,710       Honeywell International, Inc.      1,284,353   
  4,917       Illinois Tool Works, Inc.      558,424   
  3,971       Ingersoll-Rand PLC      267,209   
  1,354       J.B. Hunt Transport Services, Inc.      110,500   
  1,869       Jacobs Engineering Group, Inc.(c)      96,403   
  14,528       Johnson Controls International PLC      585,769   
  1,662       Kansas City Southern      145,857   
  1,189       L-3 Communications Holdings, Inc.      162,822   
  3,885       Lockheed Martin Corp.      957,186   
  5,082       Masco Corp.      156,932   
  5,170       Nielsen Holdings PLC      232,753   
  4,518       Norfolk Southern Corp.      420,174   
  2,748       Northrop Grumman Corp.      629,292   
  5,394       PACCAR, Inc.      296,238   
  2,062       Parker-Hannifin Corp.      253,110   
  2,565       Pentair PLC (United Kingdom)      141,408   
  2,857       Pitney Bowes, Inc.      50,969   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Industrials (continued)   
  2,325       Quanta Services, Inc.(c)    $ 66,844   
  4,541       Raytheon Co.      620,346   
  3,588       Republic Services, Inc.      188,836   
  2,004       Robert Half International, Inc.      74,990   
  1,992       Rockwell Automation, Inc.      238,482   
  2,000       Rockwell Collins, Inc.      168,640   
  1,560       Roper Technologies, Inc.      270,364   
  823       Ryder System, Inc.      57,108   
  894       Snap-on, Inc.      137,765   
  9,546       Southwest Airlines Co.      382,317   
  2,315       Stanley Black & Decker, Inc.      263,540   
  1,309       Stericycle, Inc.(c)      104,838   
  4,147       Textron, Inc.      166,212   
  771       TransDigm Group, Inc.      210,067   
  12,820       Union Pacific Corp.      1,130,468   
  4,516       United Continental Holdings, Inc.(c)      253,935   
  10,639       United Parcel Service, Inc., Class B      1,146,459   
  1,326       United Rentals, Inc.(c)      100,325   
  11,980       United Technologies Corp.      1,224,356   
  2,419       Verisk Analytics, Inc.(c)      197,269   
  856       W.W. Grainger, Inc.      178,151   
  6,263       Waste Management, Inc.      411,229   
  2,758       Xylem, Inc.      133,294   
     

 

 

  
        28,232,862   
     

 

 

  
   Information Technology—21.9%   
  9,582       Accenture PLC, Class A      1,113,812   
  10,499       Activision Blizzard, Inc.      453,242   
  7,668       Adobe Systems, Inc.(c)      824,387   
  2,689       Akamai Technologies, Inc.(c)      186,805   
  901       Alliance Data Systems Corp.      184,227   
  4,538       Alphabet, Inc., Class A(c)      3,675,326   
  4,548       Alphabet, Inc., Class C(c)      3,568,088   
  4,751       Amphenol Corp., Class A      313,233   
  4,732       Analog Devices, Inc.      303,321   
  82,934       Apple, Inc.      9,416,326   
  16,636       Applied Materials, Inc.      483,775   
  3,006       Autodesk, Inc.(c)      217,274   
  7,020       Automatic Data Processing, Inc.      611,161   
  6,087       Broadcom Ltd. (Singapore)      1,036,494   
  4,836       CA, Inc.      148,659   
  77,413       Cisco Systems, Inc.      2,375,031   
  2,397       Citrix Systems, Inc.(c)      203,266   
  9,341       Cognizant Technology Solutions Corp., Class A(c)      479,660   
  15,958       Corning, Inc.      362,406   
  2,242       CSRA, Inc.      56,252   
  16,160       eBay, Inc.(c)      460,722   
  4,629       Electronic Arts, Inc.(c)      363,469   
  1,020       F5 Networks, Inc.(c)      140,974   
  35,752       Facebook, Inc., Class A(c)      4,683,154   
  5,046       Fidelity National Information Services, Inc.      373,000   
  1,182       First Solar, Inc.(c)      47,859   
  3,383       Fiserv, Inc.(c)      333,158   
  2,113       FLIR Systems, Inc.      69,560   
  2,365       Global Payments, Inc.      171,510   
  1,912       Harris Corp.      170,570   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   16  

 

 

PowerShares S&P 500 BuyWrite Portfolio (PBP) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Information Technology (continued)   
  25,576       Hewlett Packard Enterprise Co.    $ 574,693   
  26,332       HP, Inc.      381,551   
  72,816       Intel Corp.      2,539,094   
  13,387       International Business Machines Corp.      2,057,448   
  3,772       Intuit, Inc.      410,167   
  5,895       Juniper Networks, Inc.      155,274   
  2,401       KLA-Tencor Corp.      180,339   
  2,467       Lam Research Corp.      238,954   
  3,689       Linear Technology Corp.      221,561   
  14,759       MasterCard, Inc., Class A      1,579,508   
  3,313       Microchip Technology, Inc.      200,602   
  15,981       Micron Technology, Inc.(c)      274,234   
  119,936       Microsoft Corp.      7,186,565   
  2,567       Motorola Solutions, Inc.      186,313   
  4,289       NetApp, Inc.      145,569   
  8,233       NVIDIA Corp.      585,860   
  46,320       Oracle Corp.      1,779,614   
  4,939       Paychex, Inc.      272,633   
  17,275       PayPal Holdings, Inc.(c)      719,676   
  1,969       Qorvo, Inc.(c)      109,575   
  22,681       QUALCOMM, Inc.      1,558,638   
  2,788       Red Hat, Inc.(c)      215,931   
  9,910       salesforce.com, inc.(c)      744,836   
  4,596       Seagate Technology PLC      157,689   
  2,886       Skyworks Solutions, Inc.      222,049   
  9,474       Symantec Corp.      237,134   
  5,473       TE Connectivity Ltd. (Switzerland)      344,088   
  2,008       Teradata Corp.(c)      54,136   
  15,440       Texas Instruments, Inc.      1,093,924   
  2,546       Total System Services, Inc.      126,994   
  1,430       VeriSign, Inc.(c)      120,149   
  29,034       Visa, Inc., Class A      2,395,595   
  4,375       Western Digital Corp.      255,675   
  7,506       Western Union Co. (The)      150,645   
  13,101       Xerox Corp.      127,997   
  3,901       Xilinx, Inc.      198,444   
  13,477       Yahoo!, Inc.(c)      559,969   
     

 

 

  
        61,189,844   
     

 

 

  
   Materials—2.8%   
  3,333       Air Products & Chemicals, Inc.      444,689   
  1,730       Albemarle Corp.      144,541   
  1,368       Avery Dennison Corp.      95,473   
  2,682       Ball Corp.      206,702   
  3,588       CF Industries Holdings, Inc.      86,148   
  17,343       Dow Chemical Co. (The)      933,227   
  13,457       E.I. du Pont de Nemours & Co.      925,707   
  2,273       Eastman Chemical Co.      163,451   
  4,039       Ecolab, Inc.      461,133   
  2,059       FMC Corp.      96,547   
  18,808       Freeport-McMoRan, Inc.      210,273   
  1,226       International Flavors & Fragrances, Inc.      160,336   
  6,329       International Paper Co.      284,995   
  5,246       LyondellBasell Industries NV,
Class A		      417,319   
  977       Martin Marietta Materials, Inc.      181,116   
  6,734       Monsanto Co.      678,585   
  5,389       Mosaic Co. (The)      126,803   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Materials (continued)   
  8,165       Newmont Mining Corp.    $ 302,432   
  4,899       Nucor Corp.      239,316   
  2,495       Owens-Illinois, Inc.(c)      48,154   
  4,098       PPG Industries, Inc.      381,647   
  4,390       Praxair, Inc.      513,893   
  3,028       Sealed Air Corp.      138,168   
  1,235       Sherwin-Williams Co. (The)      302,402   
  2,048       Vulcan Materials Co.      231,834   
  3,871       WestRock Co.      178,801   
     

 

 

  
        7,953,692   
     

 

 

  
   Real Estate—3.0%   
  6,549       American Tower Corp. REIT      767,477   
  2,410       Apartment Investment & Management Co., Class A REIT      106,209   
  2,113       AvalonBay Communities, Inc. REIT      361,703   
  2,366       Boston Properties, Inc. REIT      285,056   
  4,597       CBRE Group, Inc., Class A(c)      118,419   
  5,196       Crown Castle International Corp. REIT      472,784   
  2,260       Digital Realty Trust, Inc. REIT      211,152   
  1,094       Equinix, Inc. REIT      390,864   
  5,626       Equity Residential REIT      347,405   
  1,009       Essex Property Trust, Inc. REIT      216,017   
  1,937       Extra Space Storage, Inc. REIT      141,692   
  1,092       Federal Realty Investment Trust REIT      158,591   
  8,987       General Growth Properties, Inc. REIT      224,226   
  7,196       HCP, Inc. REIT      246,463   
  11,427       Host Hotels & Resorts, Inc. REIT      176,890   
  3,769       Iron Mountain, Inc. REIT      127,128   
  6,465       Kimco Realty Corp. REIT      172,034   
  1,858       Macerich Co. (The) REIT      131,509   
  8,110       Prologis, Inc. REIT      423,018   
  2,296       Public Storage REIT      490,701   
  3,980       Realty Income Corp. REIT      235,775   
  4,837       Simon Property Group, Inc. REIT      899,488   
  1,544       SL Green Realty Corp. REIT      151,652   
  4,110       UDR, Inc. REIT      143,727   
  5,408       Ventas, Inc. REIT      366,392   
  2,645       Vornado Realty Trust REIT      245,403   
  5,509       Welltower, Inc. REIT      377,532   
  11,523       Weyerhaeuser Co. REIT      344,883   
     

 

 

  
        8,334,190   
     

 

 

  
   Telecommunication Services—2.5%   
  94,686       AT&T, Inc.      3,483,498   
  8,403       CenturyLink, Inc.      223,352   
  18,055       Frontier Communications Corp.      72,581   
  4,483       Level 3 Communications, Inc.(c)      251,720   
  62,738       Verizon Communications, Inc.      3,017,698   
     

 

 

  
        7,048,849   
     

 

 

  
   Utilities—3.4%   
  10,144       AES Corp. (The)      119,395   
  3,499       Alliant Energy Corp.      133,137   
  3,734       Ameren Corp.      186,513   
  7,568       American Electric Power Co., Inc.      490,709   
  2,738       American Water Works Co., Inc.      202,721   
  6,629       CenterPoint Energy, Inc.      151,141   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   17  

 

 

PowerShares S&P 500 BuyWrite Portfolio (PBP) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Utilities (continued)   
  4,295       CMS Energy Corp.    $ 181,034   
  4,685       Consolidated Edison, Inc.      353,952   
  9,630       Dominion Resources, Inc.      724,176   
  2,762       DTE Energy Co.      265,180   
  10,603       Duke Energy Corp.      848,452   
  5,014       Edison International      368,429   
  2,755       Entergy Corp.      202,988   
  4,882       Eversource Energy      268,803   
  14,203       Exelon Corp.      483,896   
  6,544       FirstEnergy Corp.      224,394   
  7,189       NextEra Energy, Inc.      920,192   
  4,958       NiSource, Inc.      115,323   
  4,853       NRG Energy, Inc.      51,587   
  7,673       PG&E Corp.      476,647   
  1,712       Pinnacle West Capital Corp.      130,335   
  10,436       PPL Corp.      358,372   
  7,786       Public Service Enterprise Group, Inc.      327,635   
  2,199       SCANA Corp.      161,319   
  3,845       Sempra Energy      411,799   
  15,063       Southern Co. (The)      776,799   
  4,858       WEC Energy Group, Inc.      290,120   
  7,818       Xcel Energy, Inc.      324,838   
     

 

 

  
        9,549,886   
     

 

 

  
   Total Investments
(Cost $272,911,791)—101.0%		      282,848,419   
   Other assets less liabilities—(1.0)%      (2,830,668 ) 
     

 

 

  
   Net Assets—100.0%    $ 280,017,751   
     

 

 

  

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

(a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  A portion of the securities in the Fund are subject to call options written. See Note 2H and Note 6.
(c) Non-income producing security.
(d) Affiliated company. The Fund’s Adviser is a wholly-owned subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated with the Fund. See Note 4.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   18  

 

 

PowerShares S&P 500® Quality Portfolio (SPHQ)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sector Breakdown (% of the Fund’s Net Assets)
as of October 31, 2016		  
Consumer Discretionary      19.7   
Industrials      19.2   
Consumer Staples      18.4   
Information Technology      17.7   
Materials      8.0   
Health Care      6.0   
Financials      5.0   
Telecommunication Services      4.7   
Real Estate      0.9   
Utilities      0.2   
Energy      0.2   
Other Assets Less Liabilities      0.0   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests—100.0%    
   Consumer Discretionary—19.7%   
  103,191       CBS Corp., Class B    $ 5,842,674   
  43,618       Darden Restaurants, Inc.      2,826,010   
  100,349       Gap, Inc. (The)      2,768,629   
  39,871       Genuine Parts Co.      3,611,914   
  415,390       Home Depot, Inc. (The)      50,681,734   
  37,464       Leggett & Platt, Inc.      1,718,848   
  237,584       Lowe’s Cos., Inc.      15,834,974   
  335,908       McDonald’s Corp.      37,813,164   
  43,317       Michael Kors Holdings Ltd.(b)      2,199,637   
  328,148       NIKE, Inc., Class B      16,466,467   
  67,571       Nordstrom, Inc.      3,513,692   
  69,340       Omnicom Group, Inc.      5,534,719   
  26,356       O’Reilly Automotive, Inc.(b)      6,969,581   
  101,501       Ross Stores, Inc.      6,347,872   
  159,288       Target Corp.      10,947,864   
  71,961       TEGNA, Inc.      1,411,875   
  160,038       TJX Cos., Inc. (The)      11,802,802   
  286,326       Twenty-First Century Fox, Inc., Class A      7,521,784   
  41,298       Urban Outfitters, Inc.(b)      1,381,418   
  98,934       Viacom, Inc., Class B      3,715,961   
  34,842       Wyndham Worldwide Corp.      2,293,997   
  104,006       Yum! Brands, Inc.      8,973,638   
     

 

 

  
        210,179,254   
     

 

 

  
   Consumer Staples—18.4%   
  708,603       Altria Group, Inc.      46,852,830   
  62,174       Brown-Forman Corp., Class B      2,870,574   
  81,879       Campbell Soup Co.      4,449,305   
  48,875       Clorox Co. (The)      5,865,977   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Consumer Staples (continued)   
  48,413       Dr Pepper Snapple Group, Inc.    $ 4,250,177   
  58,505       Estee Lauder Cos., Inc. (The), Class A      5,097,541   
  144,978       General Mills, Inc.      8,985,736   
  47,192       Hershey Co. (The)      4,835,292   
  372,103       Mondelez International, Inc., Class A      16,722,309   
  390,553       PepsiCo, Inc.      41,867,282   
  623,209       Procter & Gamble Co. (The)      54,094,541   
     

 

 

  
        195,891,564   
     

 

 

  
   Energy—0.2%   
  61,131       FMC Technologies, Inc.(b)      1,972,697   
     

 

 

  
   Financials—5.0%   
  101,788       Aflac, Inc.      7,010,140   
  251,435       American Express Co.      16,700,313   
  19,548       Assurant, Inc.      1,574,005   
  102,559       E*TRADE Financial Corp.(b)      2,888,061   
  156,731       Franklin Resources, Inc.      5,275,565   
  107,517       State Street Corp.      7,548,769   
  130,211       SunTrust Banks, Inc.      5,889,444   
  67,346       T. Rowe Price Group, Inc.      4,310,817   
  34,018       Torchmark Corp.      2,157,081   
     

 

 

  
        53,354,195   
     

 

 

  
   Health Care—6.0%   
  91,255       Agilent Technologies, Inc.      3,975,980   
  73,456       AmerisourceBergen Corp.      5,165,426   
  153,453       Baxter International, Inc.      7,302,828   
  19,005       C.R. Bard, Inc.      4,118,003   
  79,430       Cardinal Health, Inc.      5,456,047   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   19  

 

 

PowerShares S&P 500® Quality Portfolio (SPHQ) (continued)

October 31, 2016

(Unaudited)

 

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Health Care (continued)   
  356,488       Gilead Sciences, Inc.    $ 26,248,212   
  95,400       Stryker Corp.      11,004,390   
     

 

 

  
        63,270,886   
     

 

 

  
   Industrials—19.2%   
  173,306       American Airlines Group, Inc.      7,036,224   
  259,511       Boeing Co. (The)      36,962,152   
  43,103       C.H. Robinson Worldwide, Inc.      2,936,176   
  30,505       Cintas Corp.      3,253,968   
  204,884       Delta Air Lines, Inc.      8,558,005   
  159,021       Emerson Electric Co.      8,059,184   
  49,743       Expeditors International of Washington, Inc.      2,560,272   
  74,290       General Dynamics Corp.      11,198,475   
  1,775,764       General Electric Co.      51,674,732   
  93,724       Illinois Tool Works, Inc.      10,644,235   
  42,042       Northrop Grumman Corp.      9,627,618   
  63,550       Pitney Bowes, Inc.      1,133,732   
  52,474       Quanta Services, Inc.(b)      1,508,628   
  37,859       Rockwell Automation, Inc.      4,532,479   
  33,685       Rockwell Collins, Inc.      2,840,319   
  192,656       United Parcel Service, Inc., Class B      20,760,611   
  211,797       United Technologies Corp.      21,645,653   
     

 

 

  
        204,932,463   
     

 

 

  
   Information Technology—17.7%   
  75,927       Amphenol Corp., Class A      5,005,867   
  165,409       Automatic Data Processing, Inc.      14,400,508   
  90,197       Broadcom Ltd. (Singapore)      15,358,745   
  38,817       Citrix Systems, Inc.(b)      3,291,682   
  407,534       eBay, Inc.(b)      11,618,794   
  19,953       F5 Networks, Inc.(b)      2,757,704   
  286,522       International Business Machines Corp.      44,035,566   
  100,544       Intuit, Inc.      10,933,155   
  69,790       KLA-Tencor Corp.      5,241,927   
  284,436       MasterCard, Inc., Class A      30,440,341   
  62,241       Microchip Technology, Inc.      3,768,693   
  88,183       NetApp, Inc.      2,992,931   
  95,530       Paychex, Inc.      5,273,256   
  257,549       Symantec Corp.      6,446,451   
  88,121       TE Connectivity Ltd. (Switzerland)      5,540,167   
  42,860       Teradata Corp.(b)      1,155,506   
  248,687       Texas Instruments, Inc.      17,619,474   
  150,879       Western Union Co. (The)      3,028,141   
     

 

 

  
        188,908,908   
     

 

 

  
   Materials—8.0%   
  25,601       Avery Dennison Corp.      1,786,694   
  271,560       Dow Chemical Co. (The)      14,612,644   
  232,353       E.I. du Pont de Nemours & Co.      15,983,563   
  101,357       International Paper Co.      4,564,106   
  130,522       LyondellBasell Industries NV,
Class A		      10,383,025   
  117,441       Monsanto Co.      11,834,529   
  66,083       PPG Industries, Inc.      6,154,310   
  71,883       Praxair, Inc.      8,414,624   
  60,143       Sealed Air Corp.      2,744,325   
  33,447       Sherwin-Williams Co. (The)      8,189,832   
     

 

 

  
        84,667,652   
     

 

 

  
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Real Estate—0.9%   
  101,353       Equity Residential REIT    $ 6,258,548   
  41,454       Macerich Co. (The) REIT      2,934,114   
     

 

 

  
        9,192,662   
     

 

 

  
   Telecommunication Services—4.7%   
  1,044,797       Verizon Communications, Inc.      50,254,736   
     

 

 

  
   Utilities—0.2%   
  102,476       NiSource, Inc.      2,383,592   
     

 

 

  
   Total Investments
(Cost $1,057,482,151)—100.0%		      1,065,008,609   
   Other assets less liabilities—0.0%      368,122   
     

 

 

  
   Net Assets—100.0%    $ 1,065,376,731   
     

 

 

  

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  Non-income producing security.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   20  

 

 

PowerShares Water Resources Portfolio (PHO)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Industry Breakdown (% of the Fund’s Net Assets)
as of October 31, 2016		  
Machinery      30.6   
Water Utilities      22.7   
Chemicals      8.5   
Industrial Conglomerates      8.1   
Health Care Equipment & Supplies      8.0   
Building Products      5.3   
Construction & Engineering      4.3   
Trading Companies & Distributors      3.8   
Life Sciences Tools & Services      3.6   
Electronic Equipment, Instruments & Components      2.9   
Commercial Services & Supplies      2.2   
Money Market Fund Plus Other Assets Less Liabilities      (0.0)   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests—100.0%    
   Building Products—5.3%   
  596,947       A.O. Smith Corp.    $ 26,964,096   
  529,503       Advanced Drainage Systems, Inc.      10,113,507   
     

 

 

  
        37,077,603   
     

 

 

  
   Chemicals—8.5%   
  383,282       Calgon Carbon Corp.      6,055,856   
  468,047       Ecolab, Inc.      53,436,926   
     

 

 

  
        59,492,782   
     

 

 

  
   Commercial Services & Supplies—2.2%   
  394,270       Tetra Tech, Inc.      15,159,682   
     

 

 

  
   Construction & Engineering—4.3%   
  268,686       Aegion Corp.(b)      4,973,378   
  218,688       Layne Christensen Co.(b)      1,874,156   
  183,923       Valmont Industries, Inc.      23,532,948   
     

 

 

  
        30,380,482   
     

 

 

  
   Electronic Equipment, Instruments & Components—2.9%   
  227,722       Badger Meter, Inc.      7,321,263   
  237,598       Itron, Inc.(b)      12,806,532   
     

 

 

  
        20,127,795   
     

 

 

  
   Health Care Equipment & Supplies—8.0%   
  707,448       Danaher Corp.      55,570,040   
     

 

 

  
   Industrial Conglomerates—8.1%   
  324,379       Roper Technologies, Inc.      56,218,124   
     

 

 

  
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Life Sciences Tools & Services—3.6%   
  183,055       Waters Corp.(b)    $ 25,470,273   
     

 

 

  
   Machinery—30.6%   
  665,237       Energy Recovery, Inc.(b)      8,122,544   
  256,125       Franklin Electric Co., Inc.      9,335,756   
  62,737       Gorman-Rupp Co. (The)      1,506,943   
  308,182       IDEX Corp.      26,639,252   
  141,898       Lindsay Corp.      11,110,613   
  192,068       Mueller Industries, Inc.      5,817,740   
  1,430,998       Mueller Water Products, Inc., Class A      17,629,895   
  899,193       Pentair PLC (United Kingdom)      49,572,510   
  846,340       Rexnord Corp.(b)      16,833,703   
  592,831       Toro Co. (The)      28,384,748   
  182,065       Watts Water Technologies, Inc., Class A      10,923,900   
  566,197       Xylem, Inc.      27,364,301   
     

 

 

  
        213,241,905   
     

 

 

  
   Trading Companies & Distributors—3.8%   
  797,473       HD Supply Holdings, Inc.(b)      26,316,609   
     

 

 

  
   Water Utilities—22.7%   
  225,269       American States Water Co.      9,006,255   
  778,392       American Water Works Co., Inc.      57,632,144   
  946,947       Aqua America, Inc.      29,071,273   
  50,896       Artesian Resources Corp., Class A      1,436,285   
  377,289       California Water Service Group      11,695,959   
  3,181,951       Cia de Saneamento Basico do Estado de Sao Paulo ADR (Brazil)      33,474,124   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   21  

 

 

PowerShares Water Resources Portfolio (PHO) (continued)

October 31, 2016

(Unaudited)

 

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Water Utilities (continued)   
  74,546       Connecticut Water Service, Inc.    $ 3,881,610   
  89,984       Consolidated Water Co. Ltd. (Cayman Islands)      1,007,821   
  54,992       Global Water Resources, Inc.      430,037   
  146,439       Middlesex Water Co.      5,286,448   
  102,027       SJW Corp.      5,175,830   
     

 

 

  
        158,097,786   
     

 

 

  
   Total Common Stocks and Other Equity Interests
(Cost $553,417,462)		      697,153,081   
     

 

 

  
     
   Money Market Fund—0.1%   
  393,234       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(c)
(Cost $393,234)		      393,234   
     

 

 

  
   Total Investments
(Cost $553,810,696)—100.1%		      697,546,315   
   Other assets less liabilities—(0.1)%      (462,468 ) 
     

 

 

  
   Net Assets—100.0%    $ 697,083,847   
     

 

 

  

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

(a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b) Non-income producing security.
(c) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   22  

 

 

PowerShares WilderHill Clean Energy Portfolio (PBW)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Semiconductors & Semiconductor Equipment      31.3   
Electrical Equipment      17.0   
Independent Power & Renewable Electricity Producers      15.9   
Chemicals      6.8   
Electronic Equipment, Instruments & Components      6.2   
Construction & Engineering      6.1   
Aerospace & Defense      3.8   
Software      3.6   
Automobiles      3.2   
Oil, Gas & Consumable Fuels      3.1   
Auto Components      3.0   
Money Market Funds Plus Other Assets Less Liabilities      0.0   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests—100.0%    
   Aerospace & Defense—3.8%   
  71,476       Hexcel Corp.    $ 3,251,443   
     

 

 

  
   Auto Components—3.0%   
  92,355       Gentherm, Inc.(b)      2,599,793   
     

 

 

  
   Automobiles—3.2%   
  14,066       Tesla Motors, Inc.(b)      2,781,270   
     

 

 

  
   Chemicals—6.8%   
  18,587       Air Products & Chemicals, Inc.      2,479,878   
  116,162       Sociedad Quimica y Minera de Chile SA ADR (Chile)      3,398,900   
     

 

 

  
        5,878,778   
     

 

 

  
   Construction & Engineering—6.1%   
  501,747       Ameresco, Inc., Class A(b)      2,408,385   
  101,077       Quanta Services, Inc.(b)      2,905,964   
     

 

 

  
        5,314,349   
     

 

 

  
   Electrical Equipment—17.0%   
  67,458       American Superconductor Corp.(b)(c)      432,406   
  1,428,275       Ballard Power Systems, Inc.
(Canada)(b)(c)		      2,813,702   
  383,945       Enphase Energy, Inc.(b)(c)      383,945   
  87,095       FuelCell Energy, Inc.(b)(c)      291,768   
  74,673       Hydrogenics Corp. (Canada)(b)(c)      406,968   
  253,514       LSI Industries, Inc.      2,180,220   
  1,752,484       Plug Power, Inc.(b)(c)      2,681,301   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Electrical Equipment (continued)   
  151,662       SolarCity Corp.(b)(c)    $ 2,972,575   
  482,525       Sunrun, Inc.(b)(c)      2,513,955   
     

 

 

  
        14,676,840   
     

 

 

  
   Electronic Equipment, Instruments & Components—6.2%   
  48,019       Itron, Inc.(b)      2,588,224   
  88,773       Maxwell Technologies, Inc.(b)      429,662   
  45,039       Universal Display Corp.(b)      2,328,516   
     

 

 

  
        5,346,402   
     

 

 

  
   Independent Power & Renewable Electricity Producers—15.9%   
  150,345       Atlantica Yield PLC (Spain)      2,703,203   
  61,988       Ormat Technologies, Inc.      2,989,681   
  119,923       Pattern Energy Group, Inc.      2,680,279   
  156,712       Sky Solar Holdings Ltd. ADR (Hong Kong)(b)(c)      416,854   
  680,131       TerraForm Global, Inc., Class A      2,550,491   
  197,275       TerraForm Power, Inc., Class A(b)(c)      2,448,183   
     

 

 

  
        13,788,691   
     

 

 

  
   Oil, Gas & Consumable Fuels—3.1%   
  306,413       Renewable Energy Group, Inc.(b)      2,681,114   
     

 

 

  
   Semiconductors & Semiconductor Equipment—31.3%   
  61,857       Advanced Energy Industries, Inc.(b)      2,950,579   
  239,965       Canadian Solar, Inc. (Canada)(b)(c)      3,465,095   
  106,095       Cree, Inc.(b)      2,365,918   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   23  

 

 

PowerShares WilderHill Clean Energy Portfolio (PBW) (continued)

October 31, 2016

(Unaudited)

 

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Semiconductors & Semiconductor Equipment (continued)   
  148,588       Daqo New Energy Corp. ADR (China)(b)(c)    $ 3,359,575   
  83,916       First Solar, Inc.(b)      3,397,759   
  276,932       Hanwha Q CELLS Co. Ltd. ADR (South Korea)(b)(c)      3,096,100   
  516,603       JA Solar Holdings Co. Ltd. ADR (China)(b)(c)      3,006,629   
  460,734       ReneSola Ltd. ADR (China)(b)      437,697   
  174,820       SolarEdge Technologies, Inc.(b)(c)      2,395,034   
  365,018       SunPower Corp.(b)(c)      2,642,730   
     

 

 

  
        27,117,116   
     

 

 

  
   Software—3.6%   
  81,401       EnerNOC, Inc.(b)      423,285   
  189,637       Silver Spring Networks, Inc.(b)      2,666,297   
     

 

 

  
        3,089,582   
     

 

 

  
   Total Common Stocks and Other Equity Interests
(Cost $94,355,661)		      86,525,378   
     

 

 

  
     
   Money Market Fund—0.1%   
  45,049       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(d)
(Cost $45,049)		      45,049   
     

 

 

  
   Total Investments
(excluding investments purchased with cash collateral from securities on loan)
(Cost $94,400,710)—100.1%		      86,570,427   
     

 

 

  
     
   Investments Purchased with Cash Collateral from Securities on Loan    
     
   Money Market Fund—29.9%   
  25,944,332       Invesco Government & Agency Portfolio—Institutional Class, 0.29%(d)(e)
(Cost $25,944,332)		      25,944,332   
     

 

 

  
   Total Investments
(Cost $120,345,042)—130.0%		      112,514,759   
   Other assets less liabilities—(30.0)%      (25,981,982 ) 
     

 

 

  
   Net Assets—100.0%    $ 86,532,777   
     

 

 

  

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

(a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b) Non-income producing security.
(c) All or a portion of this security was out on loan at October 31, 2016.
(d) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
(e) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   24  

 

 

PowerShares WilderHill Progressive Energy Portfolio (PUW)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Oil, Gas & Consumable Fuels      19.4   
Electrical Equipment      15.5   
Machinery      12.7   
Chemicals      8.3   
Building Products      7.5   
Construction & Engineering      5.3   
Independent Power & Renewable Electricity Producers      4.4   
Commercial Services & Supplies      3.3   
Energy Equipment & Services      3.3   
Auto Components      3.2   
Food & Staples Retailing      3.2   
Semiconductors & Semiconductor Equipment      2.9   
Electronic Equipment, Instruments & Components      2.9   
Electric Utilities      2.8   
Automobiles      2.8   
Mortgage REITs      2.5   
Money Market Funds Plus Other Assets Less Liabilities      (0.0)   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests—100.0%    
   Auto Components—3.2%   
  19,909       Kandi Technologies Group, Inc. (China)(b)(c)    $ 99,545   
  11,167       Tenneco, Inc.(c)      614,967   
     

 

 

  
        714,512   
     

 

 

  
   Automobiles—2.8%   
  15,736       Tata Motors Ltd. ADR (India)      620,156   
     

 

 

  
   Building Products—7.5%   
  12,749       A.O. Smith Corp.      575,872   
  13,992       Apogee Enterprises, Inc.      570,174   
  10,528       Owens Corning      513,556   
     

 

 

  
        1,659,602   
     

 

 

  
   Chemicals—8.3%   
  6,675       Albemarle Corp.      557,696   
  11,093       FMC Corp.      520,151   
  20,997       Methanex Corp. (Canada)      763,241   
     

 

 

  
        1,841,088   
     

 

 

  
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Commercial Services & Supplies—3.3%   
  10,227       CECO Environmental Corp.    $ 101,247   
  35,460       Covanta Holding Corp.      531,900   
  8,361       Heritage-Crystal Clean, Inc.(c)      109,529   
     

 

 

  
        742,676   
     

 

 

  
   Construction & Engineering—5.3%   
  20,217       Chicago Bridge & Iron Co. NV      647,348   
  18,879       MasTec, Inc.(c)      538,996   
     

 

 

  
        1,186,344   
     

 

 

  
   Electric Utilities—2.8%   
  207,175       Cia Energetica de Minas Gerais ADR (Brazil)      625,669   
     

 

 

  
   Electrical Equipment—15.5%   
  2,378       Acuity Brands, Inc.      531,649   
  8,868       Eaton Corp. PLC      565,512   
  11,895       Emerson Electric Co.      602,839   
  7,945       EnerSys      517,458   
  43,128       General Cable Corp.      603,792   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   25  

 

 

PowerShares WilderHill Progressive Energy Portfolio (PUW) (continued)

October 31, 2016

(Unaudited)

 

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Electrical Equipment (continued)   
  10,518       Regal Beloit Corp.    $ 621,614   
     

 

 

  
        3,442,864   
     

 

 

  
   Electronic Equipment, Instruments & Components—2.9%   
  27,902       Corning, Inc.      633,654   
     

 

 

  
   Energy Equipment & Services—3.3%   
  140,667       McDermott International, Inc.(c)      723,028   
     

 

 

  
   Food & Staples Retailing—3.2%   
  18,586       Andersons, Inc. (The)      707,197   
     

 

 

  
   Independent Power & Renewable Electricity Producers—4.4%   
  40,392       Calpine Corp.(c)      480,665   
  32,119       NRG Yield, Inc., Class C      494,632   
     

 

 

  
        975,297   
     

 

 

  
   Machinery—12.7%   
  19,374       Altra Industrial Motion Corp.      571,533   
  17,359       Chart Industries, Inc.(c)      481,539   
  13,313       ESCO Technologies, Inc.      593,094   
  9,420       Luxfer Holdings PLC ADR (United Kingdom)      88,454   
  4,956       WABCO Holdings, Inc.(c)      487,968   
  10,072       Woodward, Inc.      594,046   
     

 

 

  
        2,816,634   
     

 

 

  
   Mortgage REITs—2.5%   
  23,830       Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT      544,754   
     

 

 

  
   Oil, Gas & Consumable Fuels—19.4%   
  97,385       Chesapeake Energy Corp.(c)      536,591   
  150,154       Clean Energy Fuels Corp.(b)(c)      617,133   
  93,710       Cosan Ltd., Class A (Brazil)      834,019   
  26,447       Golar LNG Ltd. (Bermuda)(b)      578,925   
  25,796       Green Plains, Inc.      670,696   
  16,920       Range Resources Corp.      571,727   
  46,585       Southwestern Energy Co.(c)      484,018   
     

 

 

  
        4,293,109   
     

 

 

  
   Semiconductors & Semiconductor Equipment—2.9%   
  29,288       Veeco Instruments, Inc.(c)      635,550   
     

 

 

  
   Total Common Stocks and Other Equity Interests
(Cost $18,924,102)		      22,162,134   
     

 

 

  
     
   Money Market Fund—0.1%   
  11,620       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(d)
(Cost $11,620)		      11,620   
     

 

 

  
   Total Investments
(excluding investments purchased with cash collateral from securities on loan)
(Cost $18,935,722)—100.1%		      22,173,754   
     

 

 

  
     
Number
of Shares		           Value  
   Investments Purchased with Cash Collateral from Securities on Loan    
     
   Money Market Fund—4.2%   
  933,183       Invesco Government & Agency Portfolio—Institutional Class,
0.29%(d)(e)
(Cost $933,183)		    $ 933,183   
     

 

 

  
   Total Investments
(Cost $19,868,905)—104.3%		      23,106,937   
   Other assets less liabilities—(4.3)%      (946,693 ) 
     

 

 

  
   Net Assets—100.0%    $ 22,160,244   
     

 

 

  

Investment Abbreviations:

ADR—American Depositary Receipt

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

(a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b) All or a portion of this security was out on loan at October 31, 2016.
(c) Non-income producing security.
(d) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
(e) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2J.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   26  

 

 

 

(This Page Intentionally Left Blank)

 

Statements of Assets and Liabilities

October 31, 2016

(Unaudited)

 

    PowerShares
Aerospace &
Defense
Portfolio (PPA)		      PowerShares
Cleantech™
Portfolio (PZD)		      PowerShares
DWA
Momentum
Portfolio (PDP)		      PowerShares
Global Listed
Private Equity
Portfolio (PSP)		  
Assets:           

Unaffiliated investments, at value(a)

   $ 280,305,463       $ 74,134,658       $ 1,364,866,149       $ 222,979,273   

Affiliated investments, at value

     —         2,725,262         —         54,164,303   
 

 

 

     

 

 

     

 

 

     

 

 

  

Total investments, at value

     280,305,463         76,859,920         1,364,866,149         277,143,576   

Foreign currencies, at value

     —         —         —         7,705   

Receivables:

           

Dividends

     1,148,971         23,791         1,704,076         88,507   

Investments sold

     —         241,061         8,194,412         5,199,510   

Foreign tax reclaims

     —         96,948         —         926,636   

Securities lending

     —         13,120         —         43,698   

Receivable for swaps

     —         —         —         202,844   

Shares sold

     —         —         —         —   

Settlement proceeds

     —         26,267         —         —   

Other assets

     659         602         2,287         1,101   
 

 

 

     

 

 

     

 

 

     

 

 

  

Total Assets

     281,455,093         77,261,709         1,374,766,924         283,613,577   
 

 

 

     

 

 

     

 

 

     

 

 

  
Liabilities:           

Due to custodian

     916,777         86,697         536,313         —   

Payables:

           

Collateral upon return of securities loaned

     —         2,725,262         —         28,901,305   

Shares repurchased

     —         —         8,193,002         —   

Investments purchased

     —         231,826         —         532   

Payable for swaps

     —         —         —         55,384   

Unrealized depreciation on swap agreements

     —         —         —         488,081   

Open written options, at value

     —         —         —         —   

Accrued advisory fees

     121,164         29,668         596,891         104,896   

Accrued trustees’ and officer’s fees

     24,268         21,255         57,356         33,713   

Accrued expenses

     131,954         57,279         750,615         228,973   
 

 

 

     

 

 

     

 

 

     

 

 

  

Total Liabilities

     1,194,163         3,151,987         10,134,177         29,812,884   
 

 

 

     

 

 

     

 

 

     

 

 

  
Net Assets   $ 280,260,930       $ 74,109,722       $ 1,364,632,747       $ 253,800,693   
 

 

 

     

 

 

     

 

 

     

 

 

  
Net Assets Consist of:           

Shares of beneficial interest

   $ 276,322,222       $ 139,995,707       $ 1,616,133,554       $ 393,690,157   

Undistributed net investment income

     929,159         282,718         2,596,417         (11,618,165 ) 

Undistributed net realized gain (loss)

     (17,450,183 )       (81,206,962 )       (361,514,307 )       (117,094,713 ) 

Net unrealized appreciation (depreciation)

     20,459,732         15,038,259         107,417,083         (11,176,586 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
Net Assets   $ 280,260,930       $ 74,109,722       $ 1,364,632,747       $ 253,800,693   
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding (unlimited amount authorized, $0.01 par value)

     7,300,000         2,350,000         33,150,000         23,900,000   

Net asset value

   $ 38.39       $ 31.54       $ 41.17       $ 10.62   
 

 

 

     

 

 

     

 

 

     

 

 

  

Market price

   $ 38.43       $ 31.54       $ 41.20       $ 10.60   
 

 

 

     

 

 

     

 

 

     

 

 

  

Unaffiliated investments, at cost

   $ 259,845,731       $ 59,091,975       $ 1,257,449,066       $ 233,589,000   
 

 

 

     

 

 

     

 

 

     

 

 

  

Affiliated investments, at cost

   $ —       $ 2,725,262       $ —       $ 54,164,303   
 

 

 

     

 

 

     

 

 

     

 

 

  

Total investments, at cost

   $ 259,845,731       $ 61,817,237       $ 1,257,449,066       $ 287,753,303   
 

 

 

     

 

 

     

 

 

     

 

 

  

Foreign currencies, at cost

   $ —       $ —       $ —       $ 7,687   
 

 

 

     

 

 

     

 

 

     

 

 

  

Premium received on written options

   $ —       $ —       $ —       $ —   
 

 

 

     

 

 

     

 

 

     

 

 

  

(a) Includes securities on loan with an aggregate value of

   $ —       $ 2,441,762       $ —       $ 27,697,411   
 

 

 

     

 

 

     

 

 

     

 

 

  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   28  

 

 

 

PowerShares
Golden
Dragon China
Portfolio (PGJ)		      PowerShares
S&P 500
BuyWrite
Portfolio (PBP)		      PowerShares
S&P 500®
Quality
Portfolio  (SPHQ)		      PowerShares
Water
Resources
Portfolio (PHO)		      PowerShares
WilderHill Clean
Energy
Portfolio (PBW)		      PowerShares
WilderHill
Progressive Energy
Portfolio (PUW)		  
              
$ 161,539,521       $ 282,671,199       $ 1,065,008,609       $ 697,153,081       $ 86,525,378       $ 22,162,134   
  20,947,482         177,220         —         393,234         25,989,381         944,803   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  182,487,003         282,848,419         1,065,008,609         697,546,315         112,514,759         23,106,937   
  —         —         —         —         —         —   
              
  28,745         278,508         1,557,517         374,156         23,355         41,233   
  —         66,158         —         —         —         —   
  —         —         —         —         8,054         18,094   
  58,681         —         —         —         160,231         1,126   
  —         —         —         —         —         —   
  —         —         —         —         184,458         —   
  —         —         —         —         —         —   
  684         —         571         1,255         2,437         984   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  182,575,113         283,193,085         1,066,566,697         697,921,726         112,893,294         23,168,374   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
              
  —         119,947         464,483         590         —         —   
              
  20,822,537         —         —         —         25,944,332         933,183   
  —         —         —         —         —         —   
  —         —         —         —         184,507         —   
  —         —         —         —         —         —   
  —         —         —         —         —         —   
  —         2,877,285         —         —         —         —   
  66,967         178,102         192,789         297,010         29,675         3,483   
  35,832         —         29,736         91,830         47,533         17,634   
  212,621         —         502,958         448,449         154,470         53,830   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  21,137,957         3,175,334         1,189,966         837,879         26,360,517         1,008,130   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 161,437,156       $ 280,017,751       $ 1,065,376,731       $ 697,083,847       $ 86,532,777       $ 22,160,244   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
              
$ 458,735,860       $ 277,298,589       $ 1,139,579,006       $ 1,224,804,227       $ 1,489,973,803       $ 61,561,150   
  389,219         370,063         3,375,992         1,016,580         (145,562 )       84,464   
  (303,999,884 )       (8,007,172 )       (85,104,725 )       (672,472,579 )       (1,395,465,181 )       (42,723,402 ) 
  6,311,961         10,356,271         7,526,458         143,735,619         (7,830,283 )       3,238,032   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 161,437,156       $ 280,017,751       $ 1,065,376,731       $ 697,083,847       $ 86,532,777       $ 22,160,244   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  5,000,000         13,300,000         43,000,000         29,500,000         23,650,000         950,000   
$ 32.29       $ 21.05       $ 24.78       $ 23.63       $ 3.66       $ 23.33   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 32.28       $ 21.08       $ 24.79       $ 23.64       $ 3.66       $ 23.32   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 155,227,560       $ 272,680,762       $ 1,057,482,151       $ 553,417,462       $ 94,355,661       $ 18,924,102   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 20,947,482       $ 231,029       $ —       $ 393,234       $ 25,989,381       $ 944,803   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 176,175,042       $ 272,911,791       $ 1,057,482,151       $ 553,810,696       $ 120,345,042       $ 19,868,905   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ —       $ —       $ —       $ —       $ —       $ —   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ —       $ 3,296,928       $ —       $ —       $ —       $ —   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 19,756,912       $ —       $ —       $ —       $ 23,423,701       $ 890,198   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

   29  

 

 

Statements of Operations

For the six months ended October 31, 2016

(Unaudited)

 

    PowerShares
Aerospace &
Defense
Portfolio (PPA)		      PowerShares
Cleantech™
Portfolio (PZD)		      PowerShares
DWA
Momentum
Portfolio (PDP)		      PowerShares
Global Listed
Private Equity
Portfolio (PSP)		  
Investment Income:           

Unaffiliated dividend income

   $ 4,741,780       $ 772,141       $ 10,114,705       $ 6,375,443   

Affiliated dividend income

     536         112         2,028         50,050   

Securities lending income

     —         74,556         —         400,983   

Foreign withholding tax

     —         (23,593 )       (10,433 )       (349,890 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Total Income

     4,742,316         823,216         10,106,300         6,476,586   
 

 

 

     

 

 

     

 

 

     

 

 

  
Expenses:           

Advisory fees

     787,057         186,229         3,536,852         709,304   

Sub-licensing fees

     94,446         27,934         707,368         141,860   

Accounting & administration fees

     27,791         18,034         145,032         32,415   

Professional fees

     14,218         13,823         24,348         17,822   

Trustees’ and officer’s fees

     6,546         4,467         16,594         6,663   

Custodian & transfer agent fees

     3,729         7,994         11,481         22,721   

Other expenses

     20,580         9,621         68,302         38,761   
 

 

 

     

 

 

     

 

 

     

 

 

  

Total Expenses

     954,367         268,102         4,509,977         969,546   
 

 

 

     

 

 

     

 

 

     

 

 

  

Less: Waivers

     (283 )       (16,726 )       (1,021 )       (24,899 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Net Expenses

     954,084         251,376         4,508,956         944,647   
 

 

 

     

 

 

     

 

 

     

 

 

  

Net Investment Income

     3,788,232         571,840         5,597,344         5,531,939   
 

 

 

     

 

 

     

 

 

     

 

 

  
Realized and Unrealized Gain (Loss):           

Net realized gain (loss) from:

           

Investment securities

     (1,580,039 )       1,281,835         (16,012,365 )       (15,654,039 ) 

In-kind redemptions

     15,939,276         —         47,124,671         5,973,890   

Swap agreements

     —         —         —         (10,633 ) 

Written options

     —         —         —         —   

Foreign currencies

     —         (5,011 )       —         (72,554 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Net realized gain (loss)

     14,359,237         1,276,824         31,112,306         (9,763,336 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Change in net unrealized appreciation (depreciation) on:

           

Investment securities

     1,686,291         1,270,727         (10,295,306 )       14,475,665   

Swap agreements

     —         —         —         738,315   

Written options

     —         —         —         —   

Foreign currencies

     —         (4,369 )       —         (55,529 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Net change in unrealized appreciation (depreciation)

     1,686,291         1,266,358         (10,295,306 )       15,158,451   
 

 

 

     

 

 

     

 

 

     

 

 

  

Net realized and unrealized gain (loss)

     16,045,528         2,543,182         20,817,000         5,395,115   
 

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets resulting from operations

   $ 19,833,760       $ 3,115,022       $ 26,414,344       $ 10,927,054   
 

 

 

     

 

 

     

 

 

     

 

 

  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   30  

 

 

 

PowerShares
Golden
Dragon China
Portfolio (PGJ)		      PowerShares
S&P 500
BuyWrite
Portfolio (PBP)		      PowerShares
S&P 500®
Quality
Portfolio  (SPHQ)		      PowerShares
Water
Resources
Portfolio (PHO)		      PowerShares
WilderHill Clean
Energy
Portfolio (PBW)		      PowerShares
WilderHill
Progressive Energy
Portfolio (PUW)		  
              
$ 1,201,581       $ 3,123,917       $ 12,628,191       $ 4,038,609       $ 202,563       $ 228,268   
  255         3,815         791         1,002         245         28   
  360,702         —         —         —         1,112,398         7,939   
  (46,327 )       —         —         —         (16,510 )       (9,600 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  1,516,211         3,127,732         12,628,982         4,039,611         1,298,696         226,635   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
              
  390,499         1,069,779         1,493,438         1,755,258         231,150         58,739   
  78,100         —         238,947         263,289         46,230         11,748   
  18,211         —         78,781         64,389         18,024         18,055   
  16,267         —         15,875         17,415         13,433         12,877   
  5,205         —         11,957         9,820         4,678         4,026   
  50,114         —         10,879         5,068         42,056         6,650   
  14,667         —         24,914         40,475         22,510         7,314   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  573,063         1,069,779         1,874,791         2,155,714         378,081         119,409   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  (26,480 )       (74 )       (381,746 )       (518 )       (54,592 )       (37,189 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  546,583         1,069,705         1,493,045         2,155,196         323,489         82,220   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  969,628         2,058,027         11,135,937         1,884,415         975,207         144,415   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
              
              
  (3,798,633 )       (620,389 )       (15,631,182 )       (9,083,348 )       (9,194,891 )       (2,146,778 ) 
  7,301,112         6,132,560         31,565,036         12,158,451         830,313         1,222,145   
  —         —         —         —         —         —   
  —         2,926,323         —         —         —         —   
  —         —         —         —         —         —   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  3,502,479         8,438,494         15,933,854         3,075,103         (8,364,578 )       (924,633 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
              
  4,023,254         3,195,846         (19,168,555 )       15,018,909         (2,329,174 )       1,948,645   
  —         —         —         —         —         —   
  —         (1,211,615 )       —         —         —         —   
  —         —         —         —         —         —   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  4,023,254         1,984,231         (19,168,555 )       15,018,909         (2,329,174 )       1,948,645   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  7,525,733         10,422,725         (3,234,701 )       18,094,012         (10,693,752 )       1,024,012   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 8,495,361       $ 12,480,752       $ 7,901,236       $ 19,978,427       $ (9,718,545 )     $ 1,168,427   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

   31  

 

 

Statements of Changes in Net Assets

For the six months ended October 31, 2016 and the year ended April 30, 2016

(Unaudited)

 

    PowerShares Aerospace & Defense
Portfolio (PPA)		      PowerShares Cleantech™
Portfolio (PZD)		  
    October 31, 2016      April 30, 2016      October 31, 2016      April 30, 2016  
Operations:           

Net investment income

   $ 3,788,232       $ 4,037,803       $ 571,840       $ 544,679   

Net realized gain (loss)

     14,359,237         14,051,317         1,276,824         1,899,628   

Net change in unrealized appreciation (depreciation)

     1,686,291         (10,888,996 )       1,266,358         (2,560,492 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets resulting from operations

     19,833,760         7,200,124         3,115,022         (116,185 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
Distributions to Shareholders from:           

Net investment income

     (3,213,351 )       (3,934,869 )       (471,175 )       (576,797 ) 

Return of capital

     —         —         —         —   
 

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions to shareholders

     (3,213,351 )       (3,934,869 )       (471,175 )       (576,797 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
Shareholder Transactions:           

Proceeds from shares sold

     28,168,117         110,857,357         —         —   

Value of shares repurchased

     (63,262,382 )       (78,000,522 )       —         (4,353,113 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets resulting from shares transactions

     (35,094,265 )       32,856,835         —         (4,353,113 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Increase (Decrease) in Net Assets

     (18,473,856 )       36,122,090         2,643,847         (5,046,095 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
Net Assets:           

Beginning of period

     298,734,786         262,612,696         71,465,875         76,511,970   
 

 

 

     

 

 

     

 

 

     

 

 

  

End of period

   $ 280,260,930       $ 298,734,786       $ 74,109,722       $ 71,465,875   
 

 

 

     

 

 

     

 

 

     

 

 

  

Undistributed net investment income at end of period

   $ 929,159       $ 354,278       $ 282,718       $ 182,053   
 

 

 

     

 

 

     

 

 

     

 

 

  
Changes in Shares Outstanding:           

Shares sold

     750,000         3,150,000         —         —   

Shares repurchased

     (1,650,000 )       (2,300,000 )       —         (150,000 ) 

Shares outstanding, beginning of period

     8,200,000         7,350,000         2,350,000         2,500,000   
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding, end of period

     7,300,000         8,200,000         2,350,000         2,350,000   
 

 

 

     

 

 

     

 

 

     

 

 

  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   32  

 

 

 

PowerShares DWA Momentum
Portfolio (PDP)		      PowerShares Global Listed Private
Equity Portfolio (PSP)		      PowerShares Golden Dragon
China Portfolio (PGJ)		  
October 31, 2016      April 30, 2016      October 31, 2016      April 30, 2016      October 31, 2016      April 30, 2016  
              
$ 5,597,344       $ 5,251,402       $ 5,531,939       $ 22,814,219       $ 969,628       $ 326,329   
  31,112,306         11,667,965         (9,763,336 )       (5,143,054 )       3,502,479         5,207,596   
  (10,295,306 )       (151,181,845 )       15,158,451         (60,132,281 )       4,023,254         (28,892,998 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  26,414,344         (134,262,478 )       10,927,054         (42,461,116 )       8,495,361         (23,359,073 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
              
  (4,886,549 )       (5,095,535 )       (5,852,205 )       (22,461,093 )       (376,399 )       (604,271 ) 
  —         —         —         —         —         (172,929 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  (4,886,549 )       (5,095,535 )       (5,852,205 )       (22,461,093 )       (376,399 )       (777,200 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
              
  220,668,438         825,218,576         12,017,559         27,886,163         11,573,034         31,179,637   
  (315,585,939 )       (1,119,618,364 )       (89,216,244 )       (113,645,852 )       (21,503,074 )       (74,425,765 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  (94,917,501 )       (294,399,788 )       (77,198,685 )       (85,759,689 )       (9,930,040 )       (43,246,128 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  (73,389,706 )       (433,757,801 )       (72,123,836 )       (150,681,898 )       (1,811,078 )       (67,382,401 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
              
  1,438,022,453         1,871,780,254         325,924,529         476,606,427         163,248,234         230,630,635   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 1,364,632,747       $ 1,438,022,453       $ 253,800,693       $ 325,924,529       $ 161,437,156       $ 163,248,234   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 2,596,417       $ 1,885,622       $ (11,618,165 )     $ (11,297,899 )     $ 389,219       $ (204,010 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
              
  5,200,000         19,600,000         1,100,000         2,400,000         350,000         950,000   
  (7,550,000 )       (28,200,000 )       (8,400,000 )       (11,100,000 )       (700,000 )       (2,450,000 ) 
  35,500,000         44,100,000         31,200,000         39,900,000         5,350,000         6,850,000   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  33,150,000         35,500,000         23,900,000         31,200,000         5,000,000         5,350,000   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

   33  

 

 

Statements of Changes in Net Assets (continued)

For the six months ended October 31, 2016 and the year ended April 30, 2016

(Unaudited)

 

    PowerShares S&P 500
BuyWrite Portfolio (PBP)		      PowerShares S&P 500®
Quality Portfolio (SPHQ)		  
    October 31, 2016      April 30, 2016      October 31, 2016      April 30, 2016  
Operations:           

Net investment income

   $ 2,058,027       $ 4,832,789       $ 11,135,937       $ 11,619,554   

Net realized gain (loss)

     8,438,494         48,746,477         15,933,854         95,897,301   

Net change in unrealized appreciation (depreciation)

     1,984,231         (52,833,355 )       (19,168,555 )       (44,054,301 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets resulting from operations

     12,480,752         745,911         7,901,236         63,462,554   
 

 

 

     

 

 

     

 

 

     

 

 

  
Distributions to Shareholders from:           

Net investment income

     (2,495,274 )       (5,351,930 )       (9,652,678 )       (10,888,763 ) 

Net realized gains

     —         (12,062,642 )       —         —   
 

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions to shareholders

     (2,495,274 )       (17,414,572 )       (9,652,678 )       (10,888,763 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
Shareholder Transactions:           

Proceeds from shares sold

     10,440,703         113,491,101         529,414,832         927,220,372   

Value of shares repurchased

     (38,303,598 )       (203,197,290 )       (361,364,549 )       (614,252,831 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets resulting from shares transactions

     (27,862,895 )       (89,706,189 )       168,050,283         312,967,541   
 

 

 

     

 

 

     

 

 

     

 

 

  

Increase (Decrease) in Net Assets

     (17,877,417 )       (106,374,850 )       166,298,841         365,541,332   
 

 

 

     

 

 

     

 

 

     

 

 

  
Net Assets:           

Beginning of period

     297,895,168         404,270,018         899,077,890         533,536,558   
 

 

 

     

 

 

     

 

 

     

 

 

  

End of period

   $ 280,017,751       $ 297,895,168       $ 1,065,376,731       $ 899,077,890   
 

 

 

     

 

 

     

 

 

     

 

 

  

Undistributed net investment income at end of period

   $ 370,063       $ 807,310       $ 3,375,992       $ 1,892,733   
 

 

 

     

 

 

     

 

 

     

 

 

  
Changes in Shares Outstanding:           

Shares sold

     500,000         5,400,000         21,250,000         39,250,000   

Shares repurchased

     (1,850,000 )       (9,800,000 )       (14,650,000 )       (25,800,000 ) 

Shares outstanding, beginning of period

     14,650,000         19,050,000         36,400,000         22,950,000   
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding, end of period

     13,300,000         14,650,000         43,000,000         36,400,000   
 

 

 

     

 

 

     

 

 

     

 

 

  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   34  

 

 

 

PowerShares Water Resources
Portfolio (PHO)		      PowerShares WilderHill Clean
Energy Portfolio (PBW)		      PowerShares WilderHill Progressive
Energy Portfolio (PUW)		  
October 31, 2016      April 30, 2016      October 31, 2016      April 30, 2016      October 31, 2016      April 30, 2016  
              
$ 1,884,415       $ 4,118,173       $ 975,207       $ 2,660,810       $ 144,415       $ 330,986   
  3,075,103         (42,964,308 )       (8,364,578 )       (38,371,622 )       (924,633 )       (5,276,031 ) 
  15,018,909         (35,442,735 )       (2,329,174 )       (2,472,953 )       1,948,645         (1,905,394 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  19,978,427         (74,288,870 )       (9,718,545 )       (38,183,765 )       1,168,427         (6,850,439 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
              
  (1,193,447 )       (5,414,109 )       (1,367,044 )       (2,346,665 )       (107,387 )       (367,721 ) 
  —         —         —         —         —         —   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  (1,193,447 )       (5,414,109 )       (1,367,044 )       (2,346,665 )       (107,387 )       (367,721 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
              
  37,972,560         149,177,885         569,984         5,301,285         1,056,359         —   
  (40,136,401 )       (244,171,049 )       (4,206,705 )       (7,305,808 )       (3,444,211 )       (3,464,537 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  (2,163,841 )       (94,993,164 )       (3,636,721 )       (2,004,523 )       (2,387,852 )       (3,464,537 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  16,621,139         (174,696,143 )       (14,722,310 )       (42,534,953 )       (1,326,812 )       (10,682,697 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
              
  680,462,708         855,158,851         101,255,087         143,790,040         23,487,056         34,169,753   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 697,083,847       $ 680,462,708       $ 86,532,777       $ 101,255,087       $ 22,160,244       $ 23,487,056   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 1,016,580       $ 325,612       $ (145,562 )     $ 246,275       $ 84,464       $ 47,436   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
              
  1,600,000         6,650,000         150,000         1,250,000         50,000         —   
  (1,700,000 )       (11,000,000 )       (1,150,000 )       (1,550,000 )       (150,000 )       (150,000 ) 
  29,600,000         33,950,000         24,650,000         24,950,000         1,050,000         1,200,000   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  29,500,000         29,600,000         23,650,000         24,650,000         950,000         1,050,000   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

   35  

 

 

Financial Highlights

 

PowerShares Aerospace & Defense Portfolio (PPA)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016     2015      2014      2013      2012  
Per Share Operating Performance:               

Net asset value at beginning of period

   $ 36.43      $ 35.73     $ 32.16      $ 23.22      $ 19.99      $ 20.57  

Net investment income(a)

     0.46        0.53 (b)      0.32         0.33          0.44         0.21   

Net realized and unrealized gain (loss) on investments

     1.89        0.67       3.52         9.00        3.22         (0.60 ) 

Total from investment operations

     2.35        1.20       3.84         9.33        3.66        (0.39 ) 

Distributions to shareholders from:

               

Net investment income

     (0.39 )      (0.50 )     (0.27 )       (0.39 )      (0.43 )       (0.19 ) 

Net asset value at end of period

   $ 38.39      $ 36.43     $ 35.73      $ 32.16      $ 23.22      $ 19.99  

Market price at end of period(c)

   $ 38.43      $ 36.42     $ 35.71      $ 32.15      $ 23.20      $ 19.98  
Net Asset Value Total Return(d)     6.49 %      3.43 %      11.99 %       40.52 %       18.69 %       (1.82 )% 
Market Price Total Return(d)     6.62 %      3.46 %      11.96 %       40.59 %       18.65 %       (1.87 )% 
Ratios/Supplemental Data:               

Net assets at end of period (000’s omitted)

   $ 280,261      $ 298,735     $ 262,613      $ 98,086      $ 47,607       $ 54,967   

Ratio to average net assets of:

               

Expenses, after Waivers

     0.61 %(e)      0.64 %      0.66 %       0.66 %       0.66 %       0.66 % 

Expenses, prior to Waivers

     0.61 %(e)      0.64 %      0.66 %       0.69 %       0.74 %       0.76 % 

Net investment income, after Waivers

     2.41 %(e)      1.50 %(b)      0.94 %       1.13 %       2.18 %       1.09 % 

Portfolio turnover rate(f)

     5 %      16 %      13 %       8 %       17 %       25 % 

 

(a)  Based on average shares outstanding.
(b)  Net Investment income per share and the ratio of net investment income to average net assets include a significant dividend received during the year. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividends are $0.33 and 0.93%, respectively.
(c)  The mean between the last bid and ask prices.
(d)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(e)  Annualized.
(f)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares CleantechTM Portfolio (PZD)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016     2015     2014      2013      2012  
Per Share Operating Performance:              

Net asset value at beginning of period

   $ 30.41      $ 30.60     $ 31.90     $ 25.47      $ 23.06       $ 30.10   

Net investment income(a)

     0.24        0.22       0.27        0.17        0.26         0.24   

Net realized and unrealized gain (loss) on investments

     1.09        (0.18 )     (1.33 )      6.53        2.37         (7.07 ) 

Total from investment operations

     1.33       0.04       (1.06 )      6.70        2.63         (6.83 ) 

Distributions to shareholders from:

              

Net investment income

     (0.20 )      (0.23 )     (0.24 )      (0.27 )      (0.22 )       (0.21 ) 

Net asset value at end of period

   $ 31.54      $ 30.41     $ 30.60     $ 31.90      $ 25.47       $ 23.06   

Market price at end of period(b)

   $ 31.54      $ 30.29     $ 30.54     $ 31.92      $ 25.36       $ 22.98   
Net Asset Value Total Return(c)     4.39 %      0.15 %      (3.36 )%      26.52 %       11.59 %       (22.65 )% 
Market Price Total Return(c)     4.80 %      (0.05 )%      (3.61 )%      27.15 %       11.50 %       (22.87 )% 
Ratios/Supplemental Data:              

Net assets at end of period (000’s omitted)

   $ 74,110      $ 71,466     $ 76,512     $ 84,535      $ 71,314       $ 100,305   

Ratio to average net assets of:

              

Expenses, after Waivers

     0.67 %(d)      0.67 %      0.67 %      0.67 %       0.67 %       0.67 % 

Expenses, prior to Waivers

     0.72 %(d)      0.73 %      0.72 %      0.72 %       0.76 %       0.74 % 

Net investment income, after Waivers

     1.54 %(d)      0.76 %      0.89 %      0.58 %       1.16 %       0.97 % 

Portfolio turnover rate(e)

     17 %      25 %      22 %      24 %       22 %       27 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   36  

 

 

Financial Highlights (continued)

 

PowerShares DWA Momentum Portfolio (PDP)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016     2015     2014     2013     2012  
Per Share Operating Performance:            

Net asset value at beginning of period

   $ 40.51      $ 42.44     $ 36.96     $ 31.77     $ 27.86     $ 26.52   

Net investment income(a)

     0.17        0.12       0.16        0.06       0.23        0.07   

Net realized and unrealized gain (loss) on investments

     0.64        (1.94 )     5.43        5.23       3.92        1.31   

Total from investment operations

     0.81        (1.82 )     5.59        5.29       4.15       1.38   

Distributions to shareholders from:

            

Net investment income

     (0.15 )      (0.11 )     (0.11 )      (0.10 )     (0.24 )      (0.04 ) 

Net asset value at end of period

   $ 41.17     $ 40.51     $ 42.44     $ 36.96     $ 31.77     $ 27.86   

Market price at end of period(b)

   $ 41.20     $ 40.50     $ 42.43     $ 36.93     $ 31.76     $ 27.86   
Net Asset Value Total Return(c)     1.98 %      (4.29 )%      15.13 %      16.71 %      15.02 %      5.22 % 
Market Price Total Return(c)     2.08 %      (4.29 )%      15.19 %      16.65 %      14.98 %      5.15 % 
Ratios/Supplemental Data:            

Net assets at end of period (000’s omitted)

   $ 1,364,633      $ 1,438,022     $ 1,871,780     $ 1,260,444     $ 876,929      $ 571,078   

Ratio to average net assets of:

            

Expenses, after Waivers

     0.64 %(d)      0.64 %      0.63 %(e)      0.64 %(e)      0.67 %(e)      0.65 % 

Expenses, prior to Waivers

     0.64 %(d)      0.64 %      0.63 %(e)      0.64 %(e)      0.67 %(e)      0.65 % 

Net investment income, after Waivers

     0.79 %(d)      0.29 %      0.39 %      0.17 %      0.82 %      0.29 % 

Portfolio turnover rate(f)

     29 %      100 %      73 %      75 %      66 %      96 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment companies’ expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies the Fund invests in. The effect of the estimated investment companies’ expenses that the Fund bears indirectly is included in the Fund’s total return.
(f)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   37  

 

 

Financial Highlights (continued)

 

PowerShares Global Listed Private Equity Portfolio (PSP)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016     2015      2014     2013      2012   
Per Share Operating Performance:              

Net asset value at beginning of period

   $ 10.45      $ 11.95     $ 11.79      $ 11.70     $ 9.22      $ 12.17   

Net investment income(a)

     0.21        0.60 (b)      0.35         0.38 (c)      0.24         0.26   

Net realized and unrealized gain (loss) on investments

     0.20        (1.53 )     0.41         1.38       2.64         (2.58 ) 

Total from investment operations

     0.41        (0.93 )     0.76         1.76       2.88        (2.32 ) 

Distributions to shareholders from:

              

Net investment income

     (0.24 )      (0.57 )     (0.60 )       (1.67 )     (0.40 )       (0.56 ) 

Return of capital

     —        —        —         —       —         (0.07 ) 

Total distributions

     (0.24 )      (0.57 )     (0.60 )       (1.67 )     (0.40 )       (0.63 ) 

Net asset value at end of period

   $ 10.62      $ 10.45     $ 11.95      $ 11.79     $ 11.70      $ 9.22   

Market price at end of period(d)

   $ 10.60      $ 10.39     $ 11.93      $ 11.85     $ 11.75      $ 9.25   
Net Asset Value Total Return(e)     3.93 %      (8.09 )%      6.79 %       16.20 %      31.87 %       (19.51 )% 
Market Price Total Return(e)     4.33 %      (8.47 )%      6.09 %       16.31 %      32.00 %       (19.80 )% 
Ratios/Supplemental Data:              

Net assets at end of period (000’s omitted)

   $ 253,801      $ 325,925     $ 476,606      $ 583,601     $ 408,492       $ 296,744   

Ratio to average net assets of:

              

Expenses, after Waivers(f)

     0.67 %(g)      0.64 %      0.64 %       0.69 %      0.70 %       0.71 % 

Expenses, prior to Waivers(f)

     0.68 %(g)      0.66 %      0.66 %       0.70 %      0.70 %       0.76 % 

Net investment income, after Waivers

     3.90 %(g)      5.51 %(b)      3.04 %       3.20 %(c)      2.47 %       2.79 % 

Portfolio turnover rate(h)

     19 %      35 %      30 %       53 %      53 %       88 % 

 

(a)  Based on average shares outstanding.
(b)  Net Investment income per share and the ratio of net investment income to average net assets include a significant dividend received during the year. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividends are $0.34 and 3.12%, respectively.
(c)  Net Investment income per share and the ratio of net investment income to average net assets include a significant dividend received during the year. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividends are $0.28 and 2.39%, respectively.
(d)  The mean between the last bid and ask prices.
(e)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(f)  In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment companies’ expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies the Fund invests in. The effect of the estimated investment companies’ expenses that the Fund bears indirectly is included in the Fund’s total return.
(g)  Annualized.
(h)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   38  

 

 

Financial Highlights (continued)

 

PowerShares Golden Dragon China Portfolio (PGJ)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016     2015      2014      2013     2012  
Per Share Operating Performance:              

Net asset value at beginning of period

   $ 30.51      $ 33.67      $ 27.65      $ 19.65      $ 21.56     $ 28.98  

Net investment income(a)

     0.19        0.06        0.21        0.21        0.34        0.48   

Net realized and unrealized gain (loss) on investments

     1.66        (3.10 )      6.06        8.08        (1.81 )      (7.43 ) 

Total from investment operations

     1.85        (3.04 )      6.27        8.29        (1.47 )      (6.95 ) 

Distributions to shareholders from:

              

Net investment income

     (0.07 )      (0.09 )      (0.25 )      (0.29 )      (0.44 )      (0.47 ) 

Return of capital

     —        (0.03 )      —         —         —        —   

Total distributions

     (0.07 )      (0.12 )      (0.25 )       (0.29 )       (0.44 )      (0.47 ) 

Net asset value at end of period

   $ 32.29      $ 30.51     $ 33.67      $ 27.65      $ 19.65     $ 21.56  

Market price at end of period(b)

   $ 32.28      $ 30.49     $ 33.62      $ 27.60      $ 19.59     $ 21.49  
Net Asset Value Total Return(c)     6.10 %      (9.04 )%      22.79 %       42.28 %       (6.73 )%(d)      (23.98 )% 
Market Price Total Return(c)     6.14 %      (8.97 )%      22.83 %       42.46 %       (6.70 )%      (23.93 )% 
Ratios/Supplemental Data:              

Net assets at end of period (000’s omitted)

   $ 161,437      $ 163,248      $ 230,631      $ 258,569      $ 181,744      $ 245,838   

Ratio to average net assets of:

              

Expenses, after Waivers

     0.70 %(e)      0.70 %      0.70 %       0.70 %       0.70 %      0.69 % 

Expenses, prior to Waivers

     0.73 %(e)      0.70 %      0.70 %       0.70 %       0.75 %      0.71 % 

Net investment income, after Waivers

     1.24 %(e)      0.18 %      0.68 %       0.75 %       1.78 %      2.08 % 

Portfolio turnover rate(f)

     17 %      47 %      25 %       37 %       63 %      23 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Amount includes the effect of the Adviser pay-in for an economic loss of $0.004 per share. Had the pay-in not been made, the net asset value total return would have been (6.77)%.
(e)  Annualized.
(f)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares S&P 500 BuyWrite Portfolio (PBP)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016      2015      2014      2013      2012  
Per Share Operating Performance:                

Net asset value at beginning of period

   $ 20.33      $ 21.22       $ 21.32      $ 20.83       $ 20.60      $ 21.52  

Net investment income(a)

     0.15        0.30         0.28        0.28         0.33         0.29   

Net realized and unrealized gain (loss) on investments

     0.75        (0.11 )       0.65        1.57         0.70         1.00   

Total from investment operations

     0.90        0.19         0.93        1.85         1.03        1.29  

Distributions to shareholders from:

                

Net investment income

     (0.18 )      (0.34 )       (0.86 )      (1.35 )       (0.65 )       (2.10 ) 

Net realized gains

     —        (0.74 )       (0.17 )      (0.01 )       (0.15 )       (0.11 ) 

Total distributions

     (0.18 )      (1.08 )       (1.03 )      (1.36 )       (0.80 )       (2.21 ) 

Net asset value at end of period

   $ 21.05      $ 20.33       $ 21.22      $ 21.32       $ 20.83      $ 20.60  

Market price at end of period(b)

   $ 21.08      $ 20.29      $ 21.22      $ 21.35       $ 20.83      $ 20.65  
Net Asset Value Total Return(c)     4.45 %      0.90 %       4.48 %       9.34 %       5.22 %       6.74 % 
Market Price Total Return(c)     4.81 %      0.67 %       4.32 %       9.50 %       4.97 %       7.02 % 
Ratios/Supplemental Data:                

Net assets at end of period (000’s omitted)

   $ 280,018      $ 297,895       $ 404,270      $ 249,458       $ 205,222       $ 154,528   

Ratio to average net assets of:

                

Expenses

     0.75 %(d)      0.75 %       0.75 %       0.75 %       0.75 %       0.75 % 

Net investment income

     1.44 %(d)      1.47 %       1.33 %       1.37 %       1.61 %       1.42 % 

Portfolio turnover rate(e)

     17 %      43 %       50 %       32 %       22 %       58 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   39  

 

 

Financial Highlights (continued)

 

PowerShares S&P 500® Quality Portfolio (SPHQ)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016      2015      2014      2013      2012  
Per Share Operating Performance:                

Net asset value at beginning of period

   $ 24.70      $ 23.25      $ 20.90      $ 17.87       $ 15.33      $ 14.64  

Net investment income(a)

     0.27        0.45         0.41         0.36         0.33         0.26   

Net realized and unrealized gain on investments

     0.01        1.46         2.33         3.03         2.52         0.74   

Total from investment operations

     0.28        1.91         2.74         3.39         2.85        1.00  

Distributions to shareholders from:

                

Net investment income

     (0.20 )      (0.46 )       (0.39 )       (0.36 )       (0.31 )       (0.31 ) 

Net asset value at end of period

   $ 24.78      $ 24.70      $ 23.25      $ 20.90       $ 17.87      $ 15.33  

Market price at end of period(b)

   $ 24.79      $ 24.70       $ 23.24      $ 20.89       $ 17.87      $ 15.33  
Net Asset Value Total Return(c)     1.15 %      8.39 %       13.17 %       19.15 %       18.86 %       7.04 % 
Market Price Total Return(c)     1.20 %      8.43 %       13.18 %       19.09 %       18.86 %       7.04 % 
Ratios/Supplemental Data:                

Net assets at end of period (000’s omitted)

   $ 1,065,377      $ 899,078      $ 533,537      $ 365,686       $ 228,736       $ 146,421   

Ratio to average net assets of:

                

Expenses, after Waivers

     0.29 %(d)      0.29 %       0.29 %       0.29 %       0.39 %       0.50 % 

Expenses, prior to Waivers

     0.36 %(d)      0.38 %       0.38 %       0.39 %       0.55 %       0.70 % 

Net investment income, after Waivers

     2.16 %(d)      1.92 %       1.83 %       1.87 %       2.06 %       1.82 % 

Portfolio turnover rate(e)

     37 %      102 %       18 %       13 %       17 %       14 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

PowerShares Water Resources Portfolio (PHO)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016     2015     2014      2013      2012  
Per Share Operating Performance:              

Net asset value at beginning of period

   $ 22.99      $ 25.19     $ 25.92     $ 22.06      $ 18.78      $ 20.25  

Net investment income(a)

     0.06        0.13        0.14        0.16        0.16         0.14   

Net realized and unrealized gain (loss) on investments

     0.62        (2.17 )      (0.72 )      3.83        3.28         (1.48 ) 

Total from investment operations

     0.68       (2.04 )      (0.58 )      3.99        3.44        (1.34 ) 

Distributions to shareholders from:

              

Net investment income

     (0.04 )      (0.16 )      (0.15 )      (0.13 )      (0.16 )       (0.13 ) 

Net asset value at end of period

   $ 23.63      $ 22.99     $ 25.19     $ 25.92      $ 22.06      $ 18.78  

Market price at end of period(b)

   $ 23.64      $ 22.98     $ 25.17     $ 25.91      $ 22.05      $ 18.77  
Net Asset Value Total Return(c)     2.96 %      (8.09 )%      (2.25 )%      18.16 %       18.48 %       (6.59 )% 
Market Price Total Return(c)     3.05 %      (8.06 )%      (2.29 )%      18.17 %       18.49 %       (6.59 )% 
Ratios/Supplemental Data:              

Net assets at end of period (000’s omitted)

   $ 697,084      $ 680,463     $ 855,159     $ 990,247      $ 877,064       $ 825,510   

Ratio to average net assets of:

              

Expenses, after Waivers

     0.61 %(d)      0.61 %      0.61 %      0.61 %       0.62 %       0.62 % 

Expenses, prior to Waivers

     0.61 %(d)      0.61 %      0.61 %      0.61 %       0.62 %       0.62 % 

Net investment income, after Waivers

     0.54 %(d)      0.58 %      0.56 %      0.66 %       0.81 %       0.77 % 

Portfolio turnover rate(e)

     30 %      89 %      25 %      34 %       31 %       44 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   40  

 

 

Financial Highlights (continued)

 

PowerShares WilderHill Clean Energy Portfolio (PBW)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016     2015     2014      2013     2012  
Per Share Operating Performance:             

Net asset value at beginning of period

   $ 4.11      $ 5.76      $ 6.59     $ 4.79      $ 5.08     $ 10.35  

Net investment income(a)

     0.04        0.11        0.14        0.10        0.11        0.20   

Net realized and unrealized gain (loss) on investments

     (0.43 )      (1.66 )      (0.82 )      1.85        (0.26 )      (5.33 ) 

Total from investment operations

     (0.39 )      (1.55 )      (0.68 )      1.95        (0.15 )      (5.13 ) 

Distributions to shareholders from:

             

Net investment income

     (0.06 )      (0.10 )      (0.15 )      (0.15 )      (0.14 )      (0.14 ) 

Net asset value at end of period

   $ 3.66      $ 4.11     $ 5.76     $ 6.59      $ 4.79     $ 5.08  

Market price at end of period(b)

   $ 3.66      $ 4.11     $ 5.76     $ 6.59      $ 4.79     $ 5.08  
Net Asset Value Total Return(c)     (9.57 )%      (27.19 )%      (10.36 )%      41.23 %       (2.64 )%      (49.78 )% 
Market Price Total Return(c)     (9.57 )%      (27.19 )%      (10.36 )%      41.23 %       (2.65 )%      (49.68 )% 
Ratios/Supplemental Data:             

Net assets at end of period (000’s omitted)

   $ 86,533      $ 101,255     $ 143,790     $ 218,101      $ 142,494      $ 178,016   

Ratio to average net assets of:

             

Expenses, after Waivers

     0.70 %(d)      0.70 %      0.70 %      0.70 %       0.70 %      0.70 % 

Expenses, prior to Waivers

     0.82 %(d)      0.76 %      0.72 %      0.70 %       0.70 %      0.76 % 

Net investment income (loss), after Waivers

     2.11 %(d)      2.37 %      2.39 %      1.55 %       2.48 %      2.98 % 

Portfolio turnover rate(e)

     39 %      60 %      48 %      57 %       52 %      46 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares WilderHill Progressive Energy Portfolio (PUW)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016     2015     2014      2013      2012  
Per Share Operating Performance:              

Net asset value at beginning of period

   $ 22.37      $ 28.47      $ 32.73     $ 27.56      $ 25.87      $ 30.68  

Net investment income(a)

     0.14        0.30        0.50        0.24        0.35         0.14   

Net realized and unrealized gain (loss) on investments

     0.92        (6.07 )      (4.27 )      5.27        1.54         (4.71 ) 

Total from investment operations

     1.06       (5.77 )      (3.77 )      5.51        1.89        (4.57 ) 

Distributions to shareholders from:

              

Net investment income

     (0.10 )      (0.33 )      (0.49 )      (0.34 )      (0.20 )       (0.24 ) 

Net asset value at end of period

   $ 23.33      $ 22.37     $ 28.47     $ 32.73      $ 27.56      $ 25.87  

Market price at end of period(b)

   $ 23.32      $ 22.36     $ 28.47     $ 32.71      $ 27.55      $ 25.86  
Net Asset Value Total Return(c)     4.78 %      (20.29 )%      (11.59 )%      20.24 %       7.38 %       (14.84 )% 
Market Price Total Return(c)     4.78 %      (20.32 )%      (11.54 )%      20.21 %       7.38 %       (14.93 )% 
Ratios/Supplemental Data:              

Net assets at end of period (000’s omitted)

   $ 22,160      $ 23,487     $ 34,170     $ 45,819      $ 38,584       $ 47,859   

Ratio to average net assets of:

              

Expenses, after Waivers

     0.70 %(d)      0.70 %      0.70 %      0.70 %       0.70 %       0.71 % 

Expenses, prior to Waivers

     1.02 %(d)      0.99 %      0.86 %      0.84 %       0.87 %       0.86 % 

Net investment income, after Waivers

     1.23 %(d)      1.34 %      1.69 %      0.78 %       1.40 %       0.56 % 

Portfolio turnover rate(e)

     20 %      40 %      41 %      37 %       32 %       36 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

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Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

October 31, 2016

(Unaudited)

 

Note 1. Organization

PowerShares Exchange-Traded Fund Trust (the “Trust”) was organized as a Massachusetts business trust on June 9, 2000 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of October 31, 2016, the Trust offered fifty-three portfolios. This report includes the following portfolios:

 

Full Name

   

Short Name

PowerShares Aerospace & Defense Portfolio (PPA)    “Aerospace & Defense Portfolio”
PowerShares CleantechTM Portfolio (PZD)    “CleantechTM Portfolio”
PowerShares DWA Momentum Portfolio (PDP)    “DWA Momentum Portfolio”
PowerShares Global Listed Private Equity Portfolio (PSP)    “Global Listed Private Equity Portfolio”
PowerShares Golden Dragon China Portfolio (PGJ)    “Golden Dragon China Portfolio”
PowerShares S&P 500 BuyWrite Portfolio (PBP)    “S&P 500 BuyWrite Portfolio”
PowerShares S&P 500® Quality Portfolio (SPHQ)
(formerly, PowerShares S&P 500® High Quality Portfolio)		    “S&P 500® Quality Portfolio”
PowerShares Water Resources Portfolio (PHO)    “Water Resources Portfolio”
PowerShares WilderHill Clean Energy Portfolio (PBW)    “WilderHill Clean Energy Portfolio”
PowerShares WilderHill Progressive Energy Portfolio (PUW)    “WilderHill Progressive Energy Portfolio”

Each portfolio (each, a “Fund”, and collectively, the “Funds”) represents a separate series of the Trust. The shares of the Funds are referred to herein as “Shares” or “Fund’s Shares.” Each Fund’s Shares are listed and traded on NYSE Arca, Inc.

The market price of each Share may differ to some degree from the Fund’s net asset value (“NAV”). Unlike conventional mutual funds, each Fund issues and redeems Shares on a continuous basis, at NAV, only in a large specified number of Shares, each called a “Creation Unit.” Creation Units are issued and redeemed principally in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”). Except when aggregated in Creation Units by Authorized Participants, the Shares are not individually redeemable securities of the Funds.

The investment objective of each Fund is to seek investment results that generally correspond (before fees and expenses) to the price and yield of its respective index listed below (each, an “Underlying Index”):

 

Fund

   

Underlying Index

Aerospace & Defense Portfolio    SPADETM Defense Index
CleantechTM Portfolio    The Cleantech IndexTM
DWA Momentum Portfolio    Dorsey Wright® Technical Leaders Index
Global Listed Private Equity Portfolio    Red Rocks Global Listed Private Equity Index
Golden Dragon China Portfolio    NASDAQ Golden Dragon China Index
S&P 500 BuyWrite Portfolio    CBOE S&P 500 BuyWriteSM Index
S&P 500® Quality Portfolio    S&P 500® Quality Index
Water Resources Portfolio    NASDAQ OMX US Water IndexSM
WilderHill Clean Energy Portfolio    WilderHill Clean Energy Index
WilderHill Progressive Energy Portfolio    WilderHill Progressive Energy Index

Note 2. Significant Accounting Policies

The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements, including estimates and assumptions related to taxation. Actual results could differ from these estimates. In addition, the Funds monitor for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. The following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.

 

 

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A. Security Valuation

Securities, including restricted securities, are valued according to the following policies:

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining NAV per Share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day NAV per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts’) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the London world markets. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that Invesco PowerShares Capital Management LLC (the “Adviser”) determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts (“ADRs”) and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Swap agreements are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end of day net present values, spreads, ratings, industry, and company performance.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith following procedures approved by the Board of Trustees. Issuer-specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

Each Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

 

 

   43  

 

 

 

Valuations change in response to many factors, including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Other Risks

Index Risk. Unlike many investment companies, the Funds do not utilize investing strategies that seek returns in excess of their Underlying Indexes. Therefore, a Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.

Equity Risk. Equity risk is the risk that the value of the securities that each Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities that a Fund holds participate or factors relating to specific companies in which the Fund invests. For example, an adverse event, such as an unfavorable earnings report, may depress the value of securities a Fund holds; the price of securities may be particularly sensitive to general movements in the stock market; or a drop in the stock market may depress the price of most or all of the securities a Fund holds. In addition, securities of an issuer in the Fund’s portfolio may decline in price if the issuer fails to make anticipated dividend payments because, among other reasons, the issuer of the security experiences a decline in its financial condition.

Industry Concentration Risk. In following its methodology, each Fund’s Underlying Index from time to time will be concentrated to a significant degree in securities of issuers located in a single industry or a sector. To the extent that an Underlying Index concentrates in the securities of issuers in a particular industry or sector, each Fund will also concentrate its investments to approximately the same extent. By concentrating its investments in an industry or sector, a Fund may face more risks than if it were diversified broadly over numerous industries or sectors. In addition, at times, an industry or sector may be out of favor and underperform other industries or the market as a whole. Any factors detrimental to the performance of such industry or sector will disproportionately impact a Fund’s NAV.

Momentum Investing Risk. For DWA Momentum Portfolio, the Fund employs a “momentum” style of investing that is subject to the risk that the securities may be more volatile than the market as a whole, or that the returns on securities that have previously exhibited price momentum are less than returns on other styles of investing. Momentum can turn quickly, and stocks that previously exhibited high momentum may not experience continued positive momentum. In addition, there may be periods when the momentum style of investing is out of favor and therefore, the investment performance of the Fund may suffer.

Non-Diversified Fund Risk. Each Fund (except for CleantechTM Portfolio, DWA Momentum Portfolio, Global Listed Private Equity Portfolio, S&P 500 BuyWrite Portfolio, S&P 500® Quality Portfolio, WilderHill Clean Energy Portfolio and WilderHill Progressive Energy Portfolio) is non-diversified and can invest a greater portion of its assets in securities of individual issuers than diversified funds. As a result, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund. This may increase a Fund’s volatility and cause the performance of a relatively small number of issuers to have a greater impact on a Fund’s performance.

Non-Correlation Risk. Each Fund’s return may not match the return of its Underlying Index for a number of reasons. For example, each Fund incurs operating expenses not applicable to its Underlying Index, and incurs costs in buying and selling securities, especially when rebalancing the Fund’s securities holdings to reflect changes in the composition of its Underlying Index. In addition, the performance of each Fund and its Underlying Index may vary due to asset valuation differences and differences between each Fund’s portfolio and its Underlying Index resulting from legal restrictions, cost or liquidity constraints.

Small- and Mid-Capitalization Company Risk. Investing in securities of small- and mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established companies. These companies’ securities may be more volatile and less liquid than those of more established companies. These securities may have returns that vary, sometimes significantly, from the overall securities market. Often small- and mid-capitalization companies and the industries in which they focus are still evolving and, as a result, they may be more sensitive to changing market conditions.

Foreign Investment Risk. For CleantechTM Portfolio and Golden Dragon China Portfolio, investments in the securities of non-U.S. issuers involve risks beyond those associated with investments in U.S. securities. Foreign securities may have relatively low market liquidity, greater market volatility, decreased publicly available information and less reliable financial information about issuers. Foreign securities also are subject to the risks of expropriation, nationalization, political instability, local taxation, potential currency transfer restrictions or other adverse political or economic developments and the difficulty of enforcing obligations in other countries. As the Fund may invest in securities denominated in foreign currencies, fluctuations in the value of the U.S. dollar relative to the values of other currencies may adversely affect investments in foreign securities and may negatively impact the Fund’s returns.

Foreign Securities Risk. For CleantechTM Portfolio, Global Listed Private Equity Portfolio, Golden Dragon China Portfolio and Water Resources Portfolio, since their Underlying Indexes may include ADRs and/or global depositary receipts (“GDRs”), investing in these Funds involve risks of investing in foreign securities, in addition to the risks associated with domestic securities. In general, foreign

 

 

   44  

 

 

 

companies are not subject to the regulatory requirements of U.S. companies and, as such, there may be less publicly available information about these companies. Moreover, foreign companies often are subject to less stringent requirements regarding accounting, auditing, financial reporting and record-keeping than are U.S. companies. Therefore, not all material information regarding these companies will be available.

Risk of Investing in Listed Private Equity Companies. For Global Listed Private Equity Portfolio, there are certain risks inherent in investing in listed private equity companies, which encompass business development companies (“BDCs”), and other financial institutions or vehicles whose principal business is to invest in and lend capital to, or provide services to privately held companies. The 1940 Act imposes certain restraints upon the operations of BDCs. For example, BDCs are required to invest at least 70% of their total assets primarily in securities of private companies or thinly traded U.S. public companies, cash, cash equivalents, U.S. government securities and high quality debt investments that mature in one year or less. Generally, little public information exists for private and thinly traded companies, and there is a risk that investors may not be able to make a fully informed investment decision. With investments in debt instruments, there is a risk that the issuer may default on its payments or declare bankruptcy. Additionally, a BDC may incur indebtedness only in amounts such that the BDC’s asset coverage equals at least 200% after such incurrence. These limitations on asset mix and leverage may prohibit the way that the BDC raises capital. BDCs generally invest in less mature private companies, which involve greater risk than well-established, publicly-traded companies.

C. Federal Income Taxes

Each Fund intends to comply with the provisions of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute substantially all of the Fund’s taxable earnings to its shareholders. As such, the Funds will not be subject to federal income taxes on otherwise taxable income (including net realized gains) that is distributed to the shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

Each Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed each Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing book and tax treatments for in-kind transactions, losses deferred due to wash sales, and passive foreign investment company adjustments, if any.

The Funds file U.S. federal tax returns and tax returns in certain other jurisdictions. Generally, a Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.

D. Investment Transactions and Investment Income

Investment transactions are accounted for on a trade date basis. Realized gains and losses from the sale or disposition of securities are computed on the specific identified cost basis. Interest income is recorded on the accrual basis. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Realized gains, dividends and interest received by a Fund may give rise to withholding and other taxes imposed by foreign countries. Tax conventions between certain countries and the United States may reduce or eliminate such taxes.

The Funds may periodically participate in litigation related to each Fund’s investments. As such, the Funds may receive proceeds from litigation settlements. Any proceeds received are included in the Statements of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Corporate actions (including cash dividends) are recorded net of non-reclaimable foreign tax withholdings on the ex-date.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statements of Operations and the Statements of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of each Fund’s net asset value and, accordingly, they reduce each Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statements of Operations and the Statements of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between each Fund and the Adviser.

E. Country Determination

For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the Adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the

 

 

   45  

 

 

 

country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

F. Expenses

Expenses of the Trust that are directly identifiable to a specific Fund are applied to that Fund. Expenses of the Trust that are not readily identifiable to a specific Fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative net assets of each Fund.

Each Fund (except for S&P 500 BuyWrite Portfolio) is responsible for all of its expenses, including the investment advisory fees, costs of transfer agency, custody, fund administration, legal, audit and other services, interest, taxes, brokerage commissions and other expenses connected with executions of portfolio transactions, sub-licensing fees related to its respective Underlying Index, any distribution fees or expenses, litigation expenses, fees payable to the Trust’s Board members who are not “interested persons” (as defined in the 1940 Act) of the Trust (the “Independent Trustees”), any Trustee who is not an affiliate of the Adviser or Distributor (or any of their affiliates) and who is otherwise an “interested person” of the Trust under the 1940 Act (an “Unaffiliated Trustee”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees and any Unaffiliated Trustee, acquired fund fees and expenses, if any, and extraordinary expenses.

S&P 500 BuyWrite Portfolio has agreed to pay an annual unitary management fee to the Adviser. Out of the unitary management fee, the Adviser has agreed to pay for substantially all expenses of the Fund, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, acquired fund fees and expenses, if any, litigation expenses and other extraordinary expenses.

To the extent a Fund invests in other investment companies, the expenses shown in the accompanying financial statements reflect the expenses of the Fund and do not include any expenses of the investment companies in which it invests. The effects of such investment companies’ expenses are included in the realized and unrealized gain or loss on the investments in the investment companies.

G. Dividends and Distributions to Shareholders

Each Fund declares and pays dividends from net investment income, if any, to its shareholders quarterly and records such dividends on ex-dividend date. Generally, each Fund distributes net realized taxable capital gains, if any, annually in cash and records them on ex-dividend date. Such distributions on a tax basis are determined in conformity with federal income tax regulations, which may differ from GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in such Fund’s financial statements as a tax return of capital at fiscal year-end.

H. Option Contracts Written

S&P 500 BuyWrite Portfolio engaged in certain strategies involving options to manage or minimize the risk of its investments or for investment purposes. A call option gives the purchaser of such option the right to buy, and the writer (the Fund) the obligation to sell, the underlying security at the stated exercise price during the option period. When the Fund writes (sells) call options, the amount of the premium received is recorded as a liability in the Statements of Assets and Liabilities and is subsequently “marked-to-market” to reflect the current value of the option written. The difference between the premium received and the current value of the option is recorded as unrealized appreciation or depreciation. The net change in unrealized appreciation (depreciation) is reported in the Statements of Operations. If a written call option expires, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written option is exercised, the Fund realizes a gain or loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. The primary risk in writing a call option is market risk. The Fund gives up the opportunity for profit if the market price of the underlying security increases and the option is exercised but will continue to bear the risk of loss should the price of the underlying security decline. There is also a risk the Fund may not be able to enter into a closing transaction because of an illiquid market.

Writing Covered Call Option Risk. By writing covered call options in return for the receipt of premiums, the S&P 500 BuyWrite Portfolio will give up the opportunity to benefit from potential increases in the value of the S&P 500® Index above the exercise prices of the written options, but will continue to bear the risk of declines in the value of the S&P 500® Index. The premiums received from the options may not be sufficient to offset any losses sustained from the volatility of the underlying stocks over time. In addition, the Fund’s ability to sell the underlying securities will be limited while the option is in effect unless the Fund extinguishes the option position through the purchase of an offsetting identical option prior to the expiration of the written option. If trading of options is suspended, the Fund may be unable to write options at times that may be desirable or advantageous to the Fund to do so.

I. Swap Agreements

Global Listed Private Equity Portfolio may enter into various swap transactions, including interest rate, total return, index, currency exchange rate and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency or credit risk.

 

 

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Such transactions are agreements between two parties (“Counterparties”). These agreements may contain, among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s NAV over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any.

Interest rate, total return, index and currency exchange rate swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index.

Changes in the value of swap agreements are recognized as unrealized gains (losses) in the Statements of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Statements of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Statements of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Statements of Operations. The Fund segregates cash or liquid securities having a value at least equal to the amount of the potential obligation of the Fund under any swap transaction. Cash held as collateral is recorded as deposits with brokers on the Statements of Assets and Liabilities. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and counterparty risk in excess of amounts recognized on the Statements of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate, the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements.

J. Securities Lending

During the six-month period ended October 31, 2016, CleantechTM Portfolio, Global Listed Private Equity Portfolio, Golden Dragon China Portfolio, WilderHill Clean Energy Portfolio and WilderHill Progressive Energy Portfolio participated in securities lending. Each Fund loaned portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% (105% for international securities) of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is invested in an affiliated money market fund and is shown as such on the Schedules of Investments. Each Fund bears the risk of loss with respect to the investment of collateral. It is the policy of these Funds to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, each Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to each Fund if, and to the extent that, the market value of the securities loaned were to increase, and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or each Fund. Upon termination, the borrower will return to each Fund the securities loaned and each Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. Each Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to each Fund. Some of these losses may be indemnified by the lending agent. Each Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to Counterparties, are included in Securities lending income on the Statements of Operations. The aggregate value of securities out on loan, if any, is shown on the Statements of Assets and Liabilities.

Note 3. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with the Adviser on behalf of each Fund, pursuant to which the Adviser has overall responsibility for the selection and ongoing monitoring of the Funds’ investments, managing the Funds’ business affairs and providing certain clerical, bookkeeping and other administrative services. Pursuant to that Investment Advisory Agreement, each Fund (except for S&P 500 BuyWrite Portfolio and S&P 500® Quality Portfolio) has agreed to pay the Adviser an annual fee of 0.50% of the Fund’s average daily net assets. S&P 500® Quality Portfolio has agreed to pay the Adviser an annual fee of 0.29% of the Fund’s average daily net assets.

As compensation for its services, S&P 500 BuyWrite Portfolio has agreed to pay the Adviser an annual unitary management fee of 0.75% of the Fund’s average daily net assets. Out of the unitary management fee, the Adviser has agreed to pay for substantially all expenses of S&P 500 BuyWrite Portfolio, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, acquired fund fees and expenses, if any, litigation expenses and other extraordinary expenses.

 

 

   47  

 

 

 

The Trust also has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Adviser on behalf of each Fund (except S&P 500 BuyWrite Portfolio), pursuant to which the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses (excluding interest expenses, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund (except for S&P 500® Quality Portfolio and S&P 500 BuyWrite Portfolio) from exceeding 0.60% of the Fund’s average daily net assets per year (the “Expense Cap”), through at least August 31, 2017. The Expense Cap (including sub-licensing fees) for S&P 500® Quality Portfolio is 0.29% of the Fund’s average daily net assets per year through at least August 31, 2017. Offering costs excluded from each Expense Cap for each Fund are: (a) initial legal fees pertaining to the Funds’ Shares offered for sale; (b) initial Securities and Exchange Commission and state registration fees; and (c) initial fees paid to be listed on an exchange. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2017. During its term, the Expense Agreement cannot be terminated or amended to increase the Expense Cap without approval of the Board of Trustees. The Adviser did not waive fees and/or pay Fund expenses during the period under this Expense Cap for Aerospace & Defense Portfolio, DWA Momentum Portfolio, Global Listed Private Equity Portfolio and Water Resources Portfolio.

Further, through August 31, 2018, the Adviser has contractually agreed to waive a portion of each Fund’s management fee in an amount equal to 100% of the net advisory fees an affiliate of the Adviser receives that are attributable to certain of the Fund’s investments in money market funds managed by that affiliate (excluding investments of cash collateral from securities lending). The Adviser cannot discontinue this waiver prior to its expiration. This agreement is not subject to recapture by the Adviser.

For the six-month period ended October 31, 2016, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:

 

Aerospace & Defense Portfolio    $ 283  
CleantechTM Portfolio      16,726  
DWA Momentum Portfolio      1,021  
Global Listed Private Equity Portfolio      24,899  
Golden Dragon China Portfolio      26,480  
S&P 500 BuyWrite Portfolio      74  
S&P 500® Quality Portfolio      381,746  
Water Resources Portfolio      518  
WilderHill Clean Energy Portfolio      54,592  
WilderHill Progressive Energy Portfolio      37,189  

The Expense Agreement provides that the fees waived or expenses borne by the Adviser are subject to recapture by the Adviser for up to three years from the date the fee was waived or expense was borne by the Adviser, but no recapture payment will be made by a Fund if it would result in the Fund exceeding its Expense Cap as specified above. The Expense Agreement does not apply to S&P 500 BuyWrite Portfolio.

For the following Funds, the amounts available for potential future recapture by the Adviser under the Expense Agreement and the expiration schedule at October 31, 2016 are as follows:

 

     Total
Potential
Recapture
Amounts		      Potential Recapture Amounts
Expiring		  
      04/30/17      04/30/18      04/30/19      10/31/19  
CleantechTM Portfolio    $ 128,627       $ 34,174       $ 35,420       $ 42,340       $ 16,693   
Golden Dragon China Portfolio      35,156         —         —         8,803         26,353   
S&P 500® Quality Portfolio      1,584,067         286,999         392,147         523,569         381,352   
WilderHill Clean Energy Portfolio      151,706         —         34,402         62,834         54,470   
WilderHill Progressive Energy Portfolio      225,485         55,938         60,563         71,809         37,175   

The Trust has entered into a Distribution Agreement with Invesco Distributors, Inc. (the “Distributor”), which serves as the distributor of Creation Units for each Fund. The Distributor does not maintain a secondary market in the Shares. The Funds are not charged any fees pursuant to the Distribution Agreement. The Distributor is an affiliate of the Adviser.

 

 

   48  

 

 

 

The Adviser has entered into a licensing agreement for each Fund with the following entities (each, a “Licensor”):

 

Fund

   

Licensor

Aerospace & Defense Portfolio    ISBC LLC
CleantechTM Portfolio    Cleantech Indices LLC
DWA Momentum Portfolio    Dorsey Wright & Associates, LLC
Global Listed Private Equity Portfolio    Red Rocks Capital, LLC
Golden Dragon China Portfolio    Nasdaq, Inc.
S&P 500 BuyWrite Portfolio    S&P Dow Jones Indices LLC
S&P 500® Quality Portfolio    S&P Dow Jones Indices LLC
Water Resources Portfolio    Nasdaq, Inc.
WilderHill Clean Energy Portfolio    WilderHill
WilderHill Progressive Energy Portfolio    Progressive Energy Index LLC

Each Underlying Index name trademark is owned by its respective Licensor. These trademarks have been licensed to the Adviser for use by the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust’s sub-licensing agreement with the Adviser. The Funds (except for S&P 500 BuyWrite Portfolio) are required to pay the sub-licensing fees that are shown on the Statements of Operations. The Funds are not sponsored, endorsed, sold or promoted by the Licensors, and the Licensors make no representation regarding the advisability of investing in any of the Funds.

The Trust has entered into service agreements whereby The Bank of New York Mellon, a wholly-owned subsidiary of The Bank of New York Mellon Corporation, serves as the administrator, custodian, fund accountant and transfer agent for each Fund.

Note 4. Investments in Affiliates

The Adviser is a wholly-owned subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated with the Funds. The table below shows S&P 500 BuyWrite Portfolio’s transactions in, and earnings from, its investment in affiliates for the six-month period ended October 31, 2016.

S&P 500 BuyWrite Portfolio

 

     Value
April 30, 2016		      Purchases
at Cost		      Proceeds
from Sales		      Change in
Unrealized
Appreciation
(Depreciation)		      Realized
Gain (Loss)		      Value
October 31, 2016		      Dividend
Income		  
Invesco Ltd.    $ 214,744       $ 15,896       $ (32,033 )     $ (14,909 )     $ (6,478 )     $ 177,220       $ 3,653   

Note 5. Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

 

  Level 1 — Prices are determined using quoted prices in an active market for identical assets.

 

  Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

 

  Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect a Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

Except for the Funds listed below, as of October 31, 2016, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedules of Investments for security categories). The appreciation (depreciation) on options held in S&P 500 BuyWrite Portfolio was based on Level 1 inputs. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

 

   49  

 

 

 

 

     Investments in Securities  
     Level 1      Level 2      Level 3      Total  
Global Listed Private Equity Portfolio            

Equity Securities

    $ 277,143,576      $ —      $ —      $ 277,143,576  

Swap Agreements*

      —         (488,081 )       —         (488,081 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Investments

    $ 277,143,576      $ (488,081 )     $ —      $ 276,655,495   
  

 

 

     

 

 

     

 

 

     

 

 

  
Golden Dragon China Portfolio            

Equity Securities

    $ 182,487,003      $ —      $ 0      $ 182,487,003   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

* Unrealized appreciation (depreciation).

Note 6. Derivative Investments

The Funds may enter into an International Swaps and Derivatives Association Master Agreement (“ISDA Master Agreement”) under which a Fund may trade OTC derivatives. An OTC transaction entered into under an ISDA Master Agreement typically involves a collateral posting arrangement, payment netting provisions and close-out netting provisions. These netting provisions allow for reduction of credit risk through netting of contractual obligations. The enforceability of the netting provisions of the ISDA Master Agreement depends on the governing law of the ISDA Master Agreement, among other factors.

For financial reporting purposes, the Funds do not offset OTC derivative assets or liabilities that are subject to ISDA Master Agreements in the Statements of Assets and Liabilities.

Value of Derivative Investments at Period-End

The table below summarizes the value of each Fund’s derivative investments, detailed by primary risk exposure, held as of October 31, 2016:

 

     Value  
     Global Listed
Private Equity
Portfolio		      S&P 500
BuyWrite
Portfolio		  

Derivative Liabilities

    Equity Risk  
Unrealized depreciation on swap agreements — OTC    $ (488,081 )     $ —   
Options written, at value — Exchange-Traded      —         (2,877,285 ) 
  

 

 

     

 

 

  
Total Derivative Liabilities    $ (488,081 )     $ (2,877,285 ) 
  

 

 

     

 

 

  
Derivatives not subject to master netting agreements      —         2,877,285   
  

 

 

     

 

 

  
Total Derivative Liabilities subject to master netting agreements    $ (488,081 )     $ —   
  

 

 

     

 

 

  

Offsetting Assets and Liabilities

The table below reflects the Fund’s exposure to Counterparties subject to either an ISDA Master Agreement or other agreement for OTC derivative transactions as of October 31, 2016:

Global Listed Private Equity Portfolio

 

     Financial Derivative
Assets		      Financial Derivative
Liabilities		             Collateral
(Received)/Pledged		         

Counterparty

    Swap agreements      Swap agreements      Net value of
derivatives		      Non-Cash      Cash      Net
amount		  
Citibank, N.A.    $ —       $ (485,303 )     $ (485,303 )     $ —       $ —       $ (485,303 ) 
Morgan Stanley Capital Services LLC      —         (2,778 )       (2,778 )       —         —         (2,778 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ —       $ (488,081 )     $ (488,081 )     $ —       $ —       $ (488,081 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

   50  

 

 

 

Effect of Derivative Investments for the Six-Month Period Ended October 31, 2016

The table below summarizes the gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:

 

     Location of Gain (Loss) on
Statements of Operations		  
     Global Listed
Private Equity
Portfolio		      S&P 500
BuyWrite
Portfolio		  
     Equity Risk  
Realized Gain (Loss):      

Options written

    $ —       $ 2,926,323   

Swap agreements

      (10,633 )       —   
Change in Net Unrealized Appreciation (Depreciation):      

Options written

      —         (1,211,615 ) 

Swap agreements

      738,315         —   
  

 

 

     

 

 

  

Total

    $ 727,682       $ 1,714,708   
  

 

 

     

 

 

  

The table below summarizes the average notional value of swap agreements and options outstanding during the period.

 

     Average Notional Value  
     Global Listed
Private Equity
Portfolio		      S&P 500
BuyWrite
Portfolio		  
Swap agreements    $ 26,762,608       $ —   
Options written      —         283,119,583   

Global Listed Private Equity Portfolio

 

Open Over-The-Counter Total Return Swap Agreements

  

Counterparty

   Pay/Receive  

Reference Entity

  

Rate

   Termination
Date		     Notional
Value(a)		     Unrealized
Appreciation
(Depreciation)		  
Citibank, N.A.   Receive   The Blackstone Group LP   1-Month LIBOR plus 75 basis points     October-2017        $        9,872,431      $ (6,055 ) 
Citibank, N.A.   Receive   Brookfield Business Partners LP   1-Month LIBOR plus 65 basis points     October-2017          1,744,709        (4,556 ) 
Citibank, N.A.   Receive   KKR & Co. LP   1-Month LIBOR plus 75 basis points     October-2017          10,191,961        (474,692 ) 
Morgan Stanley Capital Services LLC   Receive   Riverstone Energy Ltd.   1-Month LIBOR plus 85 basis points     August-2018        GBP        2,565,251        (2,778 ) 
             

 

 

  
Total Open Over-The-Counter Total Return Swap Agreements — Equity Risk         $ (488,081 ) 
             

 

 

  

Investment Abbreviations:

GBP—Pound Sterling

LIBOR—London Interbank Offered Rate

 

(a)  Notional Value is denominated in U.S. Dollars unless otherwise noted.

S&P 500 BuyWrite Portfolio

 

Open Options Written—Equity Risk

  
     Contract
Month		      Strike
Price		      Number of
Contracts		      Premiums
Received		      Unrealized
Appreciation		      Notional Value*      Value  
Call Option S&P 500 Index      November-2016       $ 2,140         1,329       $ (3,296,928 )     $ 419,643       $ 284,406,000       $ (2,877,285 ) 

 

* Notional Value is calculated by multiplying the Number of Contracts by the Strike Price by the multiplier.

 

Options Written Transactions During the Period

  
     Call Option Contracts  
     Number of
Contracts		      Premiums
Received		  
Beginning of period      1,452       $ 3,729,398   
Written      8,105         21,563,095   
Closed      (4,196 )       (11,714,068 ) 
Expired      (4,032 )       (10,281,497 ) 
  

 

 

     

 

 

  
End of period      1,329       $ 3,296,928   
  

 

 

     

 

 

  

 

 

   51  

 

 

 

Note 7. Tax Information

The amount and character of income and gains to be distributed are determined in accordance with federal income tax regulations, which may differ from GAAP. Reclassifications are made to the Funds’ capital accounts to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Funds’ fiscal year-end.

Capital loss carryforwards are calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforwards actually available for the Funds to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Funds had capital loss carryforwards as of April 30, 2016, which expire as follows:

 

                      Post-effective/no
expiration		              
    2017     2018     2019     Short-Term     Long-Term     Total*     Expired  
Aerospace & Defense Portfolio   $ 7,470,897      $ 6,428,813      $ 9,464,875      $ 222,565      $ 3,358,504      $ 26,945,654      $ 2,374,303   
CleantechTM Portfolio     14,341,075        25,186,026        12,098,616        2,005,428        28,096,600        81,727,745        1,171,839   
DWA Momentum Portfolio     92,771,702        60,219,842        10,496,532        141,229,618        —        304,717,694        5,046,566   
Global Listed Private Equity Portfolio     7,687,052        47,149,399        —        17,958,447        15,135,226        87,930,124        796,018   
Golden Dragon China Portfolio     22,836,421        74,072,167        35,483,714        17,263,381        145,699,291        295,354,974        1,235,904   
S&P 500 BuyWrite Portfolio     —        —        —        —        —        —        —   
S&P 500® Quality Portfolio     37,241,965        42,466,537        9,869,908        —        —        89,578,410        19,599,607   
Water Resources Portfolio     93,208,162        265,948,030        33,978,301        90,981,849        122,708,128        606,824,470        3,553,481   
WilderHill Clean Energy Portfolio     261,712,498        460,657,845        241,008,862        73,921,396        332,312,916        1,369,613,517        44,707,703   
WilderHill Progressive Energy Portfolio     8,319,827        12,433,887        2,282,887        4,871,192        9,684,931        37,592,724        179,432   

 

* Capital loss carryforwards as of the date listed above are reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

Note 8. Investment Transactions

For the six-month period ended October 31, 2016, the cost of securities purchased and proceeds from sales of securities (other than short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, if any) were as follows:

 

     Purchases      Sales  
Aerospace & Defense Portfolio    $ 16,213,175       $ 15,960,005   
CleantechTM Portfolio      12,515,765         12,166,043   
DWA Momentum Portfolio      407,789,730         406,345,781   
Global Listed Private Equity Portfolio      47,850,265         53,090,886   
Golden Dragon China Portfolio      27,063,364         25,994,324   
S&P 500 BuyWrite Portfolio      51,507,716         48,803,189   
S&P 500® Quality Portfolio      381,043,223         377,494,598   
Water Resources Portfolio      210,903,130         209,741,077   
WilderHill Clean Energy Portfolio      36,414,099         36,528,790   
WilderHill Progressive Energy Portfolio      5,310,718         4,754,548   

 

 

   52  

 

 

 

For the six-month period ended October 31, 2016, in-kind transactions associated with creations and redemptions were as follows:

 

     Cost of
Securities
Received		      Value of
Securities
Delivered		  
Aerospace & Defense Portfolio    $ 28,162,178       $ 62,820,586   
CleantechTM Portfolio      —         —   
DWA Momentum Portfolio      220,575,450         315,832,202   
Global Listed Private Equity Portfolio      10,556,719         77,142,250   
Golden Dragon China Portfolio      11,575,412         21,927,845   
S&P 500 BuyWrite Portfolio      10,530,177         39,122,346   
S&P 500® Quality Portfolio      529,075,284         363,256,816   
Water Resources Portfolio      37,969,919         40,450,320   
WilderHill Clean Energy Portfolio      489,856         4,206,963   
WilderHill Progressive Energy Portfolio      1,056,164         3,959,906   

Gains (losses) on in-kind transactions are generally not considered taxable gains (losses) for federal income tax purposes.

At October 31, 2016, the cost of investments on a tax basis includes adjustments for financial reporting purposes, as of the most recently completed federal income tax reporting period-end:

 

     Gross
Unrealized
Appreciation		      Gross
Unrealized
(Depreciation)		      Net
Unrealized
Appreciation
(Depreciation)		      Cost  
Aerospace & Defense Portfolio    $ 29,918,032       $ (11,295,913 )     $ 18,622,119       $ 261,683,344   
CleantechTM Portfolio      20,194,503         (5,907,861 )       14,286,642         62,573,278   
DWA Momentum Portfolio      136,239,624         (32,210,037 )       104,029,587         1,260,836,562   
Global Listed Private Equity Portfolio      23,298,649         (58,068,301 )       (34,769,652 )       311,913,228   
Golden Dragon China Portfolio      31,858,323         (29,089,657 )       2,768,666         179,718,337   
S&P 500 BuyWrite Portfolio      25,002,287         (21,806,441 )       3,195,846         279,652,573   
S&P 500® Quality Portfolio      44,467,677         (38,017,133 )       6,450,544         1,058,558,065   
Water Resources Portfolio      150,351,124         (11,063,423 )       139,287,701         558,258,614   
WilderHill Clean Energy Portfolio      9,356,523         (22,483,840 )       (13,127,317 )       125,642,076   
WilderHill Progressive Energy Portfolio      4,355,601         (1,420,029 )       2,935,572         20,171,365   

Note 9. Trustees’ and Officer’s Fees

Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to the Independent Trustees, any Unaffiliated Trustee, and an Officer of the Trust. The Adviser, as a result of the unitary management fee, pays for such compensation for S&P 500 BuyWrite Portfolio. The Trustee who is an “interested person” of the Trust does not receive any Trustees’ fees.

The Trust has adopted a deferred compensation plan (the “Plan”). Under the Plan, each Independent Trustee or Unaffiliated Trustee who has executed a Deferred Fee Agreement (a “Participating Trustee”) may defer receipt of all or a portion of his compensation (“Deferral Fees”). Such Deferral Fees are deemed to be invested in select PowerShares Funds. The Deferral Fees payable to the Participating Trustee are valued as of the date such Deferral Fees would have been paid to the Participating Trustee. The value increases with contributions or with increases in the value of the Shares selected, and the value decreases with distributions or with declines in the value of the Shares selected. Obligations under the Plan represent unsecured claims against the general assets of the Funds.

Note 10. Capital

Shares are created and redeemed by each Fund only in Creation Units of 50,000 Shares. Only Authorized Participants are permitted to purchase or redeem Creation Units from the Funds. Such transactions are principally permitted in exchange for Deposit Securities, with a balancing cash component to equate the transaction to the NAV per Share of a Fund of the Trust on the transaction date. However, for all Funds, cash in an amount equivalent to the value of certain securities may be substituted, generally when the securities are not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances.

To the extent that the Funds permit transactions in exchange for Deposit Securities, each Fund may issue Shares in advance of receipt of Deposit Securities subject to various conditions, including a requirement to maintain on deposit with the Trust cash at least equal to

 

 

   53  

 

 

 

105% of the market value of the missing Deposit Securities. In accordance with the Trust’s Participant Agreement, Creation Units will be issued to an Authorized Participant, notwithstanding the fact that the corresponding Deposit Securities have not been received in part or in whole, in reliance on the undertaking of the Authorized Participant to deliver the missing Deposit Securities as soon as possible, which undertaking shall be secured by the Authorized Participant’s delivery and maintenance of collateral consisting of cash in the form of U.S. dollars in immediately available funds having a value (marked-to-market daily) at least equal to 105%, which the Adviser may change from time to time, of the value of the missing Deposit Securities.

Certain transaction fees may be charged by the Funds for creations and redemptions, which are treated as increases in capital.

Transactions in each Fund’s Shares are disclosed in detail in the Statements of Changes in Net Assets.

Note 11. Indemnifications

Under the Trust’s organizational documents, its officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. Each Independent Trustee and Unaffiliated Trustee is also indemnified against certain liabilities arising out of the performance of his duties to the Trust pursuant to an Indemnification Agreement between such trustee and the Trust. Additionally, in the normal course of business, the Trust enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred. However, based on experience, the Trust believes the risk of loss to be remote.

Note 12. Subsequent Event

Effective December 7, 2016, each of DWA Momentum Portfolio, Golden Dragon China Portfolio and Water Resources Portfolio’s Shares were listed and began trading on The NASDAQ Stock Market LLC.

 

 

   54  

 

 

Fees and Expenses

 

As a shareholder of a Fund of the PowerShares Exchange-Traded Fund Trust, (excluding PowerShares S&P 500 BuyWrite Portfolio), you incur advisory fees and other Fund expenses. As a shareholder of a Fund of the PowerShares S&P 500 BuyWrite Portfolio, you incur a unitary management fee. In addition to the unitary management fee, a shareholder may pay distribution fees, if any, brokerage expenses, taxes, interest, acquired fund fees and expenses, if any, litigation expenses and other extraordinary expenses. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended October 31, 2016.

In addition to the fees and expenses which the PowerShares Global Listed Private Equity Portfolio (the “Portfolio”) bears directly, the Portfolio indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Portfolio invests. The amount of fees and expenses incurred indirectly by the Portfolio will vary because the investment companies have varied expenses and fee levels and the Portfolio may own different proportions of the investment companies at different times. Estimated investment companies’ expenses are not expenses that are incurred directly by the Portfolio. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies the Portfolio invests in. The effect of the estimated investment companies’ expenses that the Portfolio bears indirectly is included in the Portfolio’s total return.

Actual Expenses

The first line in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line in the following table provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed annualized rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs, such as sales charges and brokerage commissions. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, expenses shown in the table do not include the expenses of the underlying funds, which are borne indirectly by a Fund. If transaction costs and indirect expenses were included, your costs would have been higher.

 

    Beginning
Account Value
May 1, 2016		     Ending
Account Value
October 31, 2016		     Annualized
Expense Ratio
Based on the
Six-Month Period		     Expenses Paid
During the
Six-Month Period(1)		  
PowerShares Aerospace & Defense Portfolio (PPA)        

Actual

   $ 1,000.00      $ 1,064.86        0.61 %    $ 3.17   

Hypothetical (5% return before expenses)

     1,000.00        1,022.13        0.61        3.11   
PowerShares CleantechTM Portfolio (PZD)        

Actual

     1,000.00        1,043.91        0.67        3.45   

Hypothetical (5% return before expenses)

     1,000.00        1,021.83        0.67        3.41   
PowerShares DWA Momentum Portfolio (PDP)        

Actual

     1,000.00        1,019.82        0.64        3.26   

Hypothetical (5% return before expenses)

     1,000.00        1,021.98        0.64        3.26   
PowerShares Global Listed Private Equity Portfolio (PSP)        

Actual

     1,000.00        1,039.27        0.67        3.44   

Hypothetical (5% return before expenses)

     1,000.00        1,021.83        0.67        3.41   

 

 

   55  

 

 

Fees and Expenses (continued)

 

 

    Beginning
Account Value
May 1, 2016		     Ending
Account Value
October 31, 2016		     Annualized
Expense Ratio
Based on the
Six-Month Period		     Expenses Paid
During the
Six-Month Period(1)		  
PowerShares Golden Dragon China Portfolio (PGJ)        

Actual

   $ 1,000.00      $ 1,061.02        0.70 %    $ 3.64   

Hypothetical (5% return before expenses)

     1,000.00        1,021.68        0.70        3.57   
PowerShares S&P 500 BuyWrite Portfolio (PBP)        

Actual

     1,000.00        1,044.50        0.75        3.86   

Hypothetical (5% return before expenses)

     1,000.00        1,021.42        0.75        3.82   
PowerShares S&P 500® Quality Portfolio (SPHQ)        

Actual

     1,000.00        1,011.52        0.29        1.47   

Hypothetical (5% return before expenses)

     1,000.00        1,023.74        0.29        1.48   
PowerShares Water Resources Portfolio (PHO)        

Actual

     1,000.00        1,029.58        0.61        3.12   

Hypothetical (5% return before expenses)

     1,000.00        1,022.13        0.61        3.11   
PowerShares WilderHill Clean Energy Portfolio (PBW)        

Actual

     1,000.00        904.30        0.70        3.36   

Hypothetical (5% return before expenses)

     1,000.00        1,021.68        0.70        3.57   
PowerShares WilderHill Progressive Energy Portfolio (PUW)        

Actual

     1,000.00        1,047.77        0.70        3.61   

Hypothetical (5% return before expenses)

     1,000.00        1,021.68        0.70        3.57   

 

(1)  Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six-month period ended October 31, 2016. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 184/365.

 

 

   56  

 

 

 

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(This Page Intentionally Left Blank)

Proxy Voting Policies and Procedures

A description of the Trust’s proxy voting policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available, without charge and upon request, by calling (800) 983-0903. This information is also available on the Securities and Exchange Commission’s (“Commission”) website at www.sec.gov.

Information regarding how each Fund voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended June 30, is also available, without charge and upon request, by (i) calling (800) 983-0903; or (ii) accessing the Trust’s Form N-PX on the Commission’s website at www.sec.gov.

Quarterly Portfolios

The Trust files its complete schedule of portfolio holdings for the Funds with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Trust’s Forms N-Q are available on the Commission’s website at www.sec.gov. The Trust’s Forms N-Q may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330.

Frequency Distribution of Discounts and Premiums

A table showing the number of days the market price of each Fund’s shares was greater than the Fund’s net asset value, and the number of days it was less than the Fund’s net asset value (i.e., premium or discount) for the most recently completed calendar year, and the calendar quarters since that year end (or the life of the Fund, if shorter) may be found at the Fund’s website at www.invescopowershares.com.

P-PS-SAR-4    LOGO

©2016 Invesco PowerShares Capital Management LLC

3500 Lacey Road, Suite 700

Downers Grove, IL 60515

   
powershares.com    800 983 0903   LOGO   @PowerShares   

LOGO

 

     October 31, 2016

2016 Semi-Annual Report to Shareholders

 

PKW    PowerShares BuyBack AchieversTM Portfolio
PFM    PowerShares Dividend AchieversTM Portfolio
PGF    PowerShares Financial Preferred Portfolio
PEY    PowerShares High Yield Equity Dividend AchieversTM Portfolio
PID    PowerShares International Dividend AchieversTM Portfolio

 

Table of Contents

 

Dividend Income Portfolios   
Schedules of Investments   

PowerShares BuyBack AchieversTM Portfolio (PKW)

      3   

PowerShares Dividend AchieversTM Portfolio (PFM)

      7   

PowerShares Financial Preferred Portfolio (PGF)

      11   

PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY)

      13   

PowerShares International Dividend AchieversTM Portfolio (PID)

      15   
Statements of Assets and Liabilities      17   
Statements of Operations      18   
Statements of Changes in Net Assets      20   
Financial Highlights      22   
Notes to Financial Statements      25   
Fees and Expenses      34   

 

 

   2  

 

 

PowerShares BuyBack Achievers™ Portfolio (PKW)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Industrials      23.3   
Consumer Discretionary      22.0   
Financials      17.4   
Information Technology      15.5   
Health Care      8.2   
Consumer Staples      5.7   
Materials      4.3   
Energy      2.5   
Utilities      0.8   
Real Estate      0.3   
Telecommunication Services      0.0   
Money Market Funds Plus Other Assets Less Liabilities      (0.0)   
 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests—100.0%    
   Consumer Discretionary—22.0%   
  10,961       American Public Education, Inc.(b)    $ 220,864   
  15,115       Asbury Automotive Group, Inc.(b)      770,109   
  8,147       Ascent Capital Group, Inc., Class A(b)      166,036   
  19,936       AutoZone, Inc.(b)      14,795,702   
  105,341       Bed Bath & Beyond, Inc.      4,257,883   
  30,360       Big Lots, Inc.      1,317,624   
  13,481       Bob Evans Farms, Inc.      555,687   
  9,945       Bravo Brio Restaurant Group,
Inc.(b)		      44,752   
  40,152       Bright Horizons Family Solutions, Inc.(b)      2,686,570   
  37,458       Brinker International, Inc.(c)      1,844,432   
  10,813       Build-A-Bear Workshop, Inc.(b)      145,976   
  130,584       CarMax, Inc.(b)(c)      6,521,365   
  11,350       Carriage Services, Inc.      268,314   
  277,483       CBS Corp., Class B      15,711,087   
  90,045       Chico’s FAS, Inc.      1,050,825   
  12,519       Children’s Place, Inc. (The)      950,818   
  20,990       Conn’s, Inc.(b)(c)      199,405   
  50,116       Crocs, Inc.(b)      385,392   
  98,027       Dana, Inc.      1,517,458   
  21,851       Deckers Outdoor Corp.(b)      1,140,404   
  20,602       Dillard’s, Inc., Class A      1,262,903   
  62,568       Dunkin’ Brands Group, Inc.      3,025,788   
  27,665       Finish Line, Inc. (The), Class A      544,724   
  32,824       Fossil Group, Inc.(b)(c)      895,110   
  271,756       Gap, Inc. (The)      7,497,748   
  14,066       Genesco, Inc.(b)      756,751   
  46,636       GNC Holdings, Inc., Class A      626,321   
  390,230       Groupon, Inc., Class A(b)(c)      1,557,018   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Consumer Discretionary (continued)   
  149,419       H&R Block, Inc.    $ 3,432,154   
  121,940       Harley-Davidson, Inc.      6,953,019   
  14,998       Hibbett Sports, Inc.(b)(c)      582,672   
  83,397       Houghton Mifflin Harcourt Co.(b)      1,054,972   
  15,964       Hyatt Hotels Corp., Class A(b)      810,812   
  22,286       Jack in the Box, Inc.      2,088,867   
  10,404       Jamba, Inc.(b)      109,762   
  122,480       Kohl’s Corp.      5,358,500   
  596,506       Lowe’s Cos., Inc.      39,757,125   
  210,371       Macy’s, Inc.      7,676,438   
  266,336       Marriott International, Inc., Class A      18,297,283   
  572,904       McDonald’s Corp.      64,491,803   
  11,121       Movado Group, Inc.      245,218   
  3,578       NACCO Industries, Inc., Class A      261,731   
  15,184       Panera Bread Co., Class A(b)      2,896,500   
  56,809       Pier 1 Imports, Inc.      244,847   
  234,344       PulteGroup, Inc.      4,358,798   
  31,477       Regis Corp.(b)      399,128   
  64,923       Scripps Networks Interactive, Inc., Class A      4,178,444   
  132,053       Service Corp. International      3,380,557   
  23,173       Shutterfly, Inc.(b)      1,135,477   
  3,326,657       Sirius XM Holdings, Inc.(b)(c)      13,872,160   
  32,425       Sonic Corp.      742,857   
  38,594       Tenneco, Inc.(b)      2,125,372   
  723,427       Twenty-First Century Fox, Inc., Class A      19,004,427   
  9,870       Universal Electronics, Inc.(b)      692,381   
  79,947       Urban Outfitters, Inc.(b)      2,674,227   
  24,951       Vera Bradley, Inc.(b)      333,595   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   3  

 

 

PowerShares BuyBack Achievers™ Portfolio (PKW) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Consumer Discretionary (continued)   
  23,196       Visteon Corp.    $ 1,637,870   
  16,368       Vitamin Shoppe, Inc.(b)      410,018   
  178,175       Wendy’s Co. (The)      1,931,417   
  74,933       Wyndham Worldwide Corp.      4,933,589   
  19,180       ZAGG, Inc.(b)      124,670   
  16,938       Zumiez, Inc.(b)(c)      376,871   
     

 

 

  
        287,290,627   
     

 

 

  
   Consumer Staples—5.7%   
  396,755       Archer-Daniels-Midland Co.      17,286,615   
  34,960       Fresh Del Monte Produce, Inc.      2,109,836   
  11,388       MGP Ingredients, Inc.      400,971   
  1,060,854       Mondelez International, Inc., Class A      47,674,779   
  217,420       Whole Foods Market, Inc.      6,150,812   
     

 

 

  
        73,623,013   
     

 

 

  
   Energy—2.5%   
  120,384       HollyFrontier Corp.      3,003,581   
  257,540       National Oilwell Varco, Inc.      8,267,034   
  66,876       Oceaneering International, Inc.      1,591,649   
  4,489       REX American Resources Corp.(b)      354,586   
  11,813       SEACOR Holdings, Inc.(b)      582,499   
  32,100       Tidewater, Inc.(c)      55,533   
  314,628       Valero Energy Corp.      18,638,563   
     

 

 

  
        32,493,445   
     

 

 

  
   Financials—17.4%   
  279,325       Aflac, Inc.      19,237,113   
  253,331       Allstate Corp. (The)      17,201,175   
  730,180       American International Group, Inc.      45,052,106   
  110,087       Ameriprise Financial, Inc.      9,730,590   
  65,429       Anworth Mortgage Asset Corp. REIT      321,256   
  83,592       Arch Capital Group Ltd. (Bermuda)(b)      6,517,668   
  25,031       ARMOUR Residential REIT, Inc. REIT(c)      567,453   
  41,059       Assurant, Inc.      3,306,071   
  90,106       Assured Guaranty Ltd.      2,693,268   
  61,838       Axis Capital Holdings Ltd.      3,522,911   
  17,989       Capital Bank Financial Corp., Class A      589,140   
  21,134       Central Pacific Financial Corp.      541,664   
  128,029       Chimera Investment Corp. REIT      2,006,214   
  119,443       CNO Financial Group, Inc.      1,801,201   
  73,115       Cowen Group, Inc., Class A(b)      237,624   
  275,268       Discover Financial Services      15,505,846   
  33,518       Dynex Capital, Inc. REIT      230,269   
  4,723       FBR & Co.      65,650   
  118,025       Fulton Financial Corp.      1,758,573   
  52,884       Hancock Holding Co.      1,774,258   
  263,228       Hartford Financial Services Group, Inc. (The)      11,610,987   
  12,275       HomeTrust Bancshares, Inc.(b)      228,315   
  58,932       KCG Holdings, Inc., Class A(b)      751,972   
  70,673       Legg Mason, Inc.      2,029,729   
  229,902       Loews Corp.      9,892,683   
  92,512       MBIA, Inc.(b)      712,342   
  131,116       Moody’s Corp.      13,179,780   
  64,539       MSCI, Inc.      5,175,382   
  18,084       National Bank Holdings Corp., Class A      440,165   
  216,215       Navient Corp.      2,763,228   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials (continued)   
  32,969       Northfield Bancorp, Inc.    $ 542,340   
  10,377       Piper Jaffray Cos.(b)      586,819   
  31,696       Primerica, Inc.      1,733,771   
  36,285       ProAssurance Corp.      1,933,991   
  856,031       Regions Financial Corp.      9,168,092   
  196,604       Travelers Cos., Inc. (The)      21,268,621   
  54,792       Validus Holdings Ltd.      2,799,871   
  136,555       Voya Financial, Inc.      4,171,755   
  21,013       Walker & Dunlop, Inc.(b)      505,783   
  61,713       Washington Federal, Inc.      1,681,679   
  19,890       Waterstone Financial, Inc.      337,136   
  3,364       White Mountains Insurance Group Ltd.      2,791,178   
  5,995       World Acceptance Corp.(b)(c)      284,882   
     

 

 

  
        227,250,551   
     

 

 

  
   Health Care—8.2%   
  146,446       AmerisourceBergen Corp.      10,298,083   
  1,248       Atrion Corp.      548,059   
  149,437       Biogen, Inc.(b)      41,869,259   
  8,927       Cutera, Inc.(b)      116,944   
  429,801       Express Scripts Holding Co.(b)      28,968,587   
  258,232       HCA Holdings, Inc.(b)      19,762,495   
  16,764       Magellan Health, Inc.(b)      862,508   
  63,810       MEDNAX, Inc.(b)      3,908,362   
  20,981       PharMerica Corp.(b)      499,348   
  16,110       Triple-S Management Corp.,
Class B(b)		      333,155   
     

 

 

  
        107,166,800   
     

 

 

  
   Industrials—23.3%   
  23,308       AAR Corp.      749,818   
  73,104       ACCO Brands Corp.(b)      811,454   
  40,188       Actuant Corp., Class A      896,192   
  55,319       AGCO Corp.      2,825,695   
  361,395       American Airlines Group, Inc.      14,672,637   
  13,230       American Railcar Industries, Inc.      486,599   
  61,920       Avis Budget Group, Inc.(b)      2,003,731   
  425,441       Boeing Co. (The)      60,595,562   
  72,879       Cintas Corp.      7,774,003   
  11,201       CIRCOR International, Inc.      602,390   
  5,582       CRA International, Inc.(b)      173,824   
  214,432       Deere & Co.      18,934,346   
  510,745       Delta Air Lines, Inc.      21,333,819   
  42,732       DigitalGlobe, Inc.(b)      1,072,573   
  105,855       Dover Corp.      7,080,641   
  438,884       Emerson Electric Co.      22,242,641   
  14,670       EnPro Industries, Inc.      793,940   
  20,048       Esterline Technologies Corp.(b)      1,472,526   
  94,966       Fluor Corp.      4,937,282   
  37,972       Graco, Inc.      2,844,103   
  31,410       Griffon Corp.      524,547   
  242,078       Illinois Tool Works, Inc.      27,492,798   
  82,812       Jacobs Engineering Group, Inc.(b)      4,271,443   
  18,939       Kforce, Inc.      328,592   
  36,729       Kirby Corp.(b)      2,165,175   
  52,677       L-3 Communications Holdings, Inc.      7,213,588   
  29,648       Lennox International, Inc.      4,325,347   
  45,877       Lincoln Electric Holdings, Inc.      3,020,083   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   4  

 

 

PowerShares BuyBack Achievers™ Portfolio (PKW) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Industrials (continued)   
  7,250       Lindsay Corp.(c)    $ 567,675   
  46,738       ManpowerGroup, Inc.      3,589,478   
  225,202       Masco Corp.      6,954,238   
  16,305       McGrath RentCorp      490,781   
  59,174       Meritor, Inc.(b)      608,309   
  22,191       Moog, Inc., Class A(b)      1,288,631   
  39,004       Nordson Corp.      3,905,471   
  121,787       Northrop Grumman Corp.      27,889,223   
  50,116       Oshkosh Corp.      2,681,206   
  4,401       P.A.M. Transportation Services,
Inc.(b)		      86,700   
  91,231       Parker-Hannifin Corp.      11,198,605   
  7,770       Powell Industries, Inc.      274,980   
  23,338       Quanex Building Products Corp.      380,409   
  98,338       Quanta Services, Inc.(b)      2,827,218   
  39,169       Tetra Tech, Inc.      1,506,048   
  53,389       Timken Co. (The)      1,764,506   
  58,761       United Rentals, Inc.(b)      4,445,857   
  19,378       Universal Logistics Holdings, Inc.      241,256   
  15,438       Valmont Industries, Inc.      1,975,292   
  41,207       W.W. Grainger, Inc.      8,576,001   
  28,832       WESCO International, Inc.(b)      1,562,694   
     

 

 

  
        304,459,927   
     

 

 

  
   Information Technology—15.5%   
  33,007       ADTRAN, Inc.      599,077   
  737,159       Applied Materials, Inc.      21,436,584   
  54,380       Aspen Technology, Inc.(b)      2,677,671   
  707,136       Corning, Inc.      16,059,059   
  68,779       Cree, Inc.(b)      1,533,772   
  22,245       DST Systems, Inc.      2,139,079   
  22,154       Ebix, Inc.(c)      1,240,624   
  17,826       EMCORE Corp.      116,760   
  149,911       Fiserv, Inc.(b)      14,763,235   
  56,347       Gartner, Inc.(b)      4,848,096   
  24,193       Insight Enterprises, Inc.(b)      696,516   
  175,910       Intuit, Inc.      19,128,453   
  261,175       Juniper Networks, Inc.      6,879,350   
  48,013       Kulicke & Soffa Industries, Inc. (Singapore)(b)      635,692   
  113,708       Motorola Solutions, Inc.      8,252,927   
  190,048       NetApp, Inc.      6,450,229   
  22,343       NETGEAR, Inc.(b)      1,128,322   
  283,400       ON Semiconductor Corp.(b)      3,307,278   
  22,632       Plantronics, Inc.      1,170,301   
  964,824       QUALCOMM, Inc.      66,302,705   
  3       Rackspace Hosting, Inc.(b)      96   
  21,101       Rudolph Technologies, Inc.(b)      381,928   
  17,476       ScanSource, Inc.(b)      611,660   
  24,015       Tech Data Corp.(b)      1,849,635   
  88,931       Teradata Corp.(b)      2,397,580   
  137,987       Teradyne, Inc.      3,213,717   
  84,378       Tivo Corp.(b)      1,674,903   
  18,254       Ultratech, Inc.(b)      388,628   
  72,813       VeriSign, Inc.(b)(c)      6,117,748   
  691,060       Xerox Corp.      6,751,656   
     

 

 

  
        202,753,281   
     

 

 

  
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Materials—4.3%   
  31,789       Carpenter Technology Corp.    $ 1,004,850   
  42,951       Chemtura Corp.(b)      1,408,793   
  11,589       Clearwater Paper Corp.(b)      615,376   
  13,251       Innophos Holdings, Inc.      607,426   
  21,042       Kraton Corp.(b)      539,306   
  298,579       Monsanto Co.      30,087,806   
  238,828       Mosaic Co. (The)      5,619,623   
  57,334       PolyOne Corp.      1,675,873   
  49,464       Reliance Steel & Aluminum Co.      3,402,134   
  61,043       Resolute Forest Products, Inc.(b)      289,954   
  134,149       Sealed Air Corp.      6,121,219   
  30,540       Sensient Technologies Corp.      2,275,535   
  43,044       Worthington Industries, Inc.      2,023,068   
     

 

 

  
        55,670,963   
     

 

 

  
   Real Estate—0.3%   
  28,935       Hersha Hospitality Trust REIT      515,622   
  99,045       Piedmont Office Realty Trust, Inc., Class A REIT      2,028,441   
  50,701       St. Joe Co. (The)(b)      897,408   
     

 

 

  
        3,441,471   
     

 

 

  
   Telecommunication Services—0.0%   
  23,163       General Communication, Inc.,
Class A(b)		      366,902   
     

 

 

  
   Utilities—0.8%   
  449,490       AES Corp. (The)      5,290,497   
  244,928       Calpine Corp.(b)      2,914,643   
  215,017       NRG Energy, Inc.      2,285,631   
     

 

 

  
        10,490,771   
     

 

 

  
   Total Common Stocks and Other Equity Interests
(Cost $1,231,885,272)		      1,305,007,751   
     

 

 

  
     
   Money Market Fund—0.1%   
  1,384,487       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(d)
(Cost $1,384,487)		      1,384,487   
     

 

 

  
   Total Investments
(excluding investments purchased with cash collateral from securities on loan)
(Cost $1,233,269,759)—100.1%		      1,306,392,238   
     

 

 

  
     
   Investments Purchased with Cash Collateral from Securities on Loan    
     
   Money Market Fund—1.9%   
  25,006,122       Invesco Government & Agency Portfolio—Institutional Class,
0.29%(d)(e)
(Cost $25,006,122)		      25,006,122   
     

 

 

  
   Total Investments
(Cost $1,258,275,881)—102.0%		      1,331,398,360   
   Other assets less
liabilities—(2.0)%		      (26,510,581 ) 
     

 

 

  
   Net Assets—100.0%    $ 1,304,887,779   
     

 

 

  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   5  

 

 

PowerShares BuyBack Achievers™ Portfolio (PKW) (continued)

October 31, 2016

(Unaudited)

 

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  Non-income producing security.
(c)  All or a portion of this security was out on loan at October 31, 2016.
(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2H.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   6  

 

 

PowerShares Dividend Achievers™ Portfolio (PFM)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Consumer Staples      23.5   
Industrials      14.0   
Information Technology      12.1   
Energy      10.5   
Health Care      9.0   
Consumer Discretionary      6.9   
Utilities      6.5   
Telecommunication Services      6.4   
Financials      5.1   
Materials      4.1   
Real Estate      1.9   
Other Assets Less Liabilities      (0.0)   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests—100.0%    
   Consumer Discretionary—6.9%   
  3,117       Aaron’s, Inc.    $ 77,021   
  13,823       Best Buy Co., Inc.      537,853   
  847       Bob Evans Farms, Inc.      34,913   
  1,025       Cracker Barrel Old Country Store, Inc.      141,450   
  17,044       Gap, Inc. (The)      470,244   
  6,378       Genuine Parts Co.      577,783   
  5,371       Hasbro, Inc.      447,995   
  1,115       International Speedway Corp., Class A      36,684   
  2,074       John Wiley & Sons, Inc., Class A      107,018   
  5,725       Leggett & Platt, Inc.      262,663   
  37,951       Lowe’s Cos., Inc.      2,529,434   
  36,549       McDonald’s Corp.      4,114,321   
  1,683       Meredith Corp.      76,324   
  1,383       Monro Muffler Brake, Inc.      76,065   
  57,762       NIKE, Inc., Class B      2,898,497   
  2,745       Polaris Industries, Inc.      210,295   
  17,111       Ross Stores, Inc.      1,070,122   
  1,518       Stonemor Partners LP      19,977   
  24,621       Target Corp.      1,692,201   
  5,349       Tiffany & Co.      392,724   
  28,123       TJX Cos., Inc. (The)      2,074,071   
  17,763       VF Corp.      962,932   
  16,698       Yum! Brands, Inc.      1,040,744   
     

 

 

  
        19,851,331   
     

 

 

  
   Consumer Staples—23.5%   
  83,681       Altria Group, Inc.      5,532,988   
  1,208       Andersons, Inc. (The)      45,964   
  24,916       Archer-Daniels-Midland Co.      1,085,590   
  9,526       Brown-Forman Corp., Class B      439,815   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Consumer Staples (continued)   
  5,972       Bunge Ltd.    $ 370,324   
  1,679       Casey’s General Stores, Inc.      189,710   
  11,033       Church & Dwight Co., Inc.      532,453   
  5,545       Clorox Co. (The)      665,511   
  184,851       Coca-Cola Co. (The)      7,837,682   
  38,182       Colgate-Palmolive Co.      2,724,668   
  18,762       Costco Wholesale Corp.      2,774,337   
  45,665       CVS Health Corp.      3,840,427   
  8,860       Flowers Foods, Inc.      137,507   
  25,678       General Mills, Inc.      1,591,522   
  22,693       Hormel Foods Corp.      873,681   
  799       J & J Snack Foods Corp.      97,598   
  4,986       JM Smucker Co. (The)      654,712   
  15,001       Kellogg Co.      1,127,025   
  15,403       Kimberly-Clark Corp.      1,762,257   
  1,175       Lancaster Colony Corp.      153,514   
  4,927       McCormick & Co., Inc.      472,351   
  2,396       Nu Skin Enterprises, Inc., Class A      147,713   
  61,638       PepsiCo, Inc.      6,607,594   
  114,327       Procter & Gamble Co. (The)      9,923,584   
  61,131       Reynolds American, Inc.      3,367,095   
  23,776       Sysco Corp.      1,144,101   
  1,637       Tootsie Roll Industries, Inc., Class A      58,032   
  975       Universal Corp.      52,845   
  5,565       Vector Group Ltd.      116,531   
  46,354       Walgreens Boots Alliance, Inc.      3,834,866   
  132,481       Wal-Mart Stores, Inc.      9,276,320   
     

 

 

  
        67,438,317   
     

 

 

  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   7  

 

 

PowerShares Dividend Achievers™ Portfolio (PFM) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Energy—10.5%   
  3,185       Alliance Resource Partners LP    $ 79,625   
  5,613       Buckeye Partners LP      362,263   
  80,798       Chevron Corp.      8,463,591   
  89,707       Enterprise Products Partners LP      2,264,205   
  23,583       EOG Resources, Inc.      2,132,375   
  135,664       Exxon Mobil Corp.      11,303,524   
  5,051       Genesis Energy LP      176,431   
  4,628       Helmerich & Payne, Inc.      292,073   
  2,531       Holly Energy Partners LP      77,322   
  9,756       Magellan Midstream Partners LP      655,896   
  7,375       Murphy Oil Corp.      190,791   
  32,718       Occidental Petroleum Corp.      2,385,469   
  9,116       ONEOK Partners LP      362,270   
  9,012       ONEOK, Inc.      436,451   
  17,035       Plains All American Pipeline LP      517,183   
  12,759       Sunoco Logistics Partners LP      327,141   
  2,824       TC PipeLines LP      147,300   
  691       TransMontaigne Partners LP      26,963   
     

 

 

  
        30,200,873   
     

 

 

  
   Financials—5.1%   
  1,108       1st Source Corp.      38,292   
  17,542       Aflac, Inc.      1,208,118   
  3,769       American Equity Investment Life Holding Co.      67,578   
  3,722       American Financial Group, Inc.      277,289   
  6,913       Ameriprise Financial, Inc.      611,040   
  2,578       Assurant, Inc.      207,581   
  3,883       Axis Capital Holdings Ltd.      221,215   
  667       BancFirst Corp.      47,824   
  5,187       Bank of the Ozarks, Inc.      191,712   
  2,821       BOK Financial Corp.      200,347   
  5,988       Brown & Brown, Inc.      220,718   
  19,919       Chubb Ltd.      2,529,713   
  7,049       Cincinnati Financial Corp.      498,928   
  4,136       Commerce Bancshares, Inc.      206,056   
  1,896       Community Bank System, Inc.      89,321   
  752       Community Trust Bancorp, Inc.      27,486   
  2,660       Cullen/Frost Bankers, Inc.      202,133   
  4,858       Eaton Vance Corp.      170,321   
  1,978       Erie Indemnity Co., Class A      202,527   
  1,741       FactSet Research Systems, Inc.      269,368   
  24,675       Franklin Resources, Inc.      830,560   
  1,831       Hanover Insurance Group, Inc. (The)      139,504   
  474       Infinity Property & Casualty Corp.      38,844   
  17,488       Invesco Ltd.(b)      491,238   
  2,366       Mercury General Corp.      128,876   
  11,240       Old Republic International Corp.      189,506   
  13,329       People’s United Financial, Inc.      216,463   
  2,976       Prosperity Bancshares, Inc.      165,079   
  1,765       RenaissanceRe Holdings Ltd. (Bermuda)      219,372   
  1,876       RLI Corp.      104,568   
  11,307       S&P Global, Inc.      1,377,758   
  6,909       SEI Investments Co.      306,276   
  1,124       Southside Bancshares, Inc.      36,665   
  10,645       T. Rowe Price Group, Inc.      681,386   
  644       Tompkins Financial Corp.      51,056   
  5,130       Torchmark Corp.      325,293   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Financials (continued)   
  12,347       Travelers Cos., Inc. (The)    $ 1,335,698   
  2,121       UMB Financial Corp.      131,608   
  3,271       United Bankshares, Inc.      123,317   
  5,257       W.R. Berkley Corp.      300,175   
  1,098       Westamerica Bancorp.      54,417   
  379       Westwood Holdings Group, Inc.      19,537   
     

 

 

  
        14,754,763   
     

 

 

  
   Health Care—9.0%   
  62,958       Abbott Laboratories      2,470,472   
  9,197       AmerisourceBergen Corp.      646,733   
  78       Atrion Corp.      34,254   
  9,119       Becton, Dickinson and Co.      1,531,171   
  3,146       C.R. Bard, Inc.      681,675   
  13,645       Cardinal Health, Inc.      937,275   
  99,060       Johnson & Johnson      11,489,969   
  59,683       Medtronic PLC      4,895,200   
  654       National Healthcare Corp.      42,314   
  2,673       Owens & Minor, Inc.      86,739   
  6,137       Perrigo Co. PLC      510,537   
  3,690       STERIS PLC      246,566   
  16,031       Stryker Corp.      1,849,176   
  3,136       West Pharmaceutical Services, Inc.      238,430   
     

 

 

  
        25,660,511   
     

 

 

  
   Industrials—14.0%   
  25,886       3M Co.      4,278,956   
  6,350       A.O. Smith Corp.      286,830   
  2,395       ABM Industries, Inc.      93,597   
  2,001       Brady Corp., Class A      66,233   
  6,112       C.H. Robinson Worldwide, Inc.      416,349   
  2,768       Carlisle Cos., Inc.      290,225   
  25,022       Caterpillar, Inc.      2,088,336   
  4,463       Cintas Corp.      476,068   
  2,088       CLARCOR, Inc.      129,894   
  2,501       Crane Co.      170,093   
  40,516       CSX Corp.      1,236,143   
  7,223       Cummins, Inc.      923,244   
  13,459       Deere & Co.      1,188,430   
  5,702       Donaldson Co., Inc.      208,237   
  6,648       Dover Corp.      444,685   
  27,562       Emerson Electric Co.      1,396,842   
  7,754       Expeditors International of Washington, Inc.      399,098   
  12,376       Fastenal Co.      482,416   
  11,373       FedEx Corp.      1,982,541   
  1,979       Franklin Electric Co., Inc.      72,135   
  843       G&K Services, Inc., Class A      79,832   
  13,075       General Dynamics Corp.      1,970,925   
  1,117       Gorman-Rupp Co. (The)      26,830   
  2,385       Graco, Inc.      178,636   
  3,103       Healthcare Services Group, Inc.      114,718   
  15,203       Illinois Tool Works, Inc.      1,726,605   
  3,837       ITT, Inc.      135,139   
  4,826       J.B. Hunt Transport Services, Inc.      393,850   
  3,308       L-3 Communications Holdings, Inc.      452,998   
  2,881       Lincoln Electric Holdings, Inc.      189,656   
  455       Lindsay Corp.      35,627   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   8  

 

 

PowerShares Dividend Achievers™ Portfolio (PFM) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Industrials (continued)   
  12,973       Lockheed Martin Corp.    $ 3,196,288   
  1,375       Matthews International Corp., Class A      82,363   
  1,024       McGrath RentCorp      30,822   
  1,607       MSA Safety, Inc.      93,688   
  2,072       MSC Industrial Direct Co., Inc., Class A      150,842   
  2,443       Nordson Corp.      244,618   
  12,572       Norfolk Southern Corp.      1,169,196   
  7,648       Northrop Grumman Corp.      1,751,392   
  5,735       Parker-Hannifin Corp.      703,971   
  1,549       Raven Industries, Inc.      33,226   
  12,639       Raytheon Co.      1,726,614   
  1,917       Regal Beloit Corp.      113,295   
  14,684       Republic Services, Inc.      772,819   
  5,574       Robert Half International, Inc.      208,579   
  9,350       Rollins, Inc.      288,167   
  4,340       Roper Technologies, Inc.      752,165   
  2,290       Ryder System, Inc.      158,903   
  6,443       Stanley Black & Decker, Inc.      733,471   
  753       Tennant Co.      47,401   
  4,682       Toro Co. (The)      224,174   
  35,845       United Technologies Corp.      3,663,359   
  970       Valmont Industries, Inc.      124,112   
  2,588       W.W. Grainger, Inc.      538,615   
  18,943       Waste Management, Inc.      1,243,797   
     

 

 

  
        39,987,045   
     

 

 

  
   Information Technology—12.1%   
  26,663       Accenture PLC, Class A      3,099,307   
  13,169       Analog Devices, Inc.      844,133   
  19,538       Automatic Data Processing, Inc.      1,700,978   
  1,246       Badger Meter, Inc.      40,059   
  478       Cass Information Systems, Inc.      25,745   
  1,888       Daktronics, Inc.      15,765   
  5,320       Harris Corp.      474,597   
  40,938       International Business Machines Corp.      6,291,761   
  3,364       Jack Henry & Associates, Inc.      272,551   
  10,267       Linear Technology Corp.      616,636   
  12,142       Maxim Integrated Products, Inc.      481,187   
  157       Mesa Laboratories, Inc.      19,820   
  9,221       Microchip Technology, Inc.      558,332   
  205,740       Microsoft Corp.      12,327,941   
  63,115       QUALCOMM, Inc.      4,337,263   
  42,966       Texas Instruments, Inc.      3,044,141   
  10,856       Xilinx, Inc.      552,245   
     

 

 

  
        34,702,461   
     

 

 

  
   Materials—4.1%   
  9,275       Air Products & Chemicals, Inc.      1,237,470   
  4,814       Albemarle Corp.      402,210   
  2,695       AptarGroup, Inc.      192,531   
  4,056       Bemis Co., Inc.      197,608   
  1,447       Compass Minerals International, Inc.      103,967   
  12,489       Ecolab, Inc.      1,425,869   
  2,157       H.B. Fuller Co.      90,745   
  3,409       International Flavors & Fragrances, Inc.      445,829   
  18,741       Monsanto Co.      1,888,531   
  13,635       Nucor Corp.      666,070   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Materials (continued)   
  11,405       PPG Industries, Inc.    $ 1,062,148   
  12,216       Praxair, Inc.      1,430,005   
  2,795       Royal Gold, Inc.      192,352   
  5,712       RPM International, Inc.      271,548   
  1,918       Sensient Technologies Corp.      142,910   
  3,950       Sherwin-Williams Co. (The)      967,197   
  2,590       Silgan Holdings, Inc.      131,960   
  4,293       Sonoco Products Co.      215,895   
  958       Stepan Co.      68,047   
  3,395       Valspar Corp. (The)      338,142   
  5,516       Westlake Chemical Corp.      285,674   
     

 

 

  
        11,756,708   
     

 

 

  
   Real Estate—1.9%   
  6,290       Digital Realty Trust, Inc. REIT      587,675   
  3,653       Equity LifeStyle Properties, Inc. REIT      277,043   
  2,805       Essex Property Trust, Inc. REIT      600,522   
  3,059       Federal Realty Investment Trust REIT      444,259   
  20,026       HCP, Inc. REIT      625,749   
  1,677       National Health Investors, Inc. REIT      127,050   
  6,296       National Retail Properties, Inc. REIT      287,224   
  8,285       OMEGA Healthcare Investors, Inc. REIT      263,712   
  11,074       Realty Income Corp. REIT      656,024   
  4,114       Tanger Factory Outlet Centers, Inc. REIT      143,167   
  582       Universal Health Realty Income Trust REIT      34,163   
  1,269       Urstadt Biddle Properties, Inc., Class A REIT      27,283   
  15,329       Welltower, Inc. REIT      1,050,496   
  4,528       WP Carey, Inc. REIT      275,031   
     

 

 

  
        5,399,398   
     

 

 

  
   Telecommunication Services—6.4%   
  263,483       AT&T, Inc.      9,693,540   
  692       ATN International, Inc.      46,807   
  4,378       Telephone & Data Systems, Inc.      113,127   
  174,583       Verizon Communications, Inc.      8,397,442   
     

 

 

  
        18,250,916   
     

 

 

  
   Utilities—6.5%   
  9,736       Alliant Energy Corp.      370,455   
  1,566       American States Water Co.      62,609   
  3,980       AmeriGas Partners LP      190,045   
  7,595       Aqua America, Inc.      233,166   
  4,448       Atmos Energy Corp.      330,887   
  2,728       Avista Corp.      112,939   
  2,241       Black Hills Corp.      138,606   
  2,055       California Water Service Group      63,705   
  18,446       CenterPoint Energy, Inc.      420,569   
  656       Chesapeake Utilities Corp.      42,017   
  481       Connecticut Water Service, Inc.      25,046   
  13,038       Consolidated Edison, Inc.      985,021   
  26,801       Dominion Resources, Inc.      2,015,435   
  29,506       Duke Energy Corp.      2,361,070   
  13,954       Edison International      1,025,340   
  13,586       Eversource Energy      748,045   
  8,365       MDU Resources Group, Inc.      219,247   
  1,485       MGE Energy, Inc.      86,798   
  3,640       National Fuel Gas Co.      190,663   
  3,690       New Jersey Resources Corp.      125,275   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   9  

 

 

PowerShares Dividend Achievers™ Portfolio (PFM) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Utilities (continued)   
  19,786       NextEra Energy, Inc.    $ 2,532,608   
  1,180       Northwest Natural Gas Co.      69,384   
  2,069       NorthWestern Corp.      119,071   
  29,042       PPL Corp.      997,302   
  6,121       SCANA Corp.      449,036   
  876       SJW Corp.      44,439   
  3,404       South Jersey Industries, Inc.      100,929   
  41,917       Southern Co. (The)      2,161,660   
  1,955       Spire, Inc.      122,774   
  7,420       UGI Corp.      343,472   
  3,548       Vectren Corp.      178,500   
  13,518       WEC Energy Group, Inc.      807,295   
  2,187       WGL Holdings, Inc.      137,934   
  21,755       Xcel Energy, Inc.      903,920   
     

 

 

  
        18,715,262   
     

 

 

  
   Total Investments
(Cost $231,142,789)—100.0%		      286,717,585   
   Other assets less liabilities—(0.0)%      (2,472 ) 
     

 

 

  
   Net Assets—100.0%    $ 286,715,113   
     

 

 

  

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  Affiliated company. The Fund’s Adviser is a wholly-owned subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated with the Fund. See Note 4.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   10  

 

 

PowerShares Financial Preferred Portfolio (PGF)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Banks      70.0   
Capital Markets      16.9   
Insurance      8.4   
Consumer Finance      4.7   
Money Market Fund Plus Other Assets Less Liabilities      (0.0)   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Preferred Stocks and Other Equity Interests—100.0%    
   Banks—70.0%   
  689,358       Bank of America Corp., 6.00%, Series EE(b)    $ 17,923,308   
  1,017,742       Bank of America Corp., 6.20%, Series CC      26,502,002   
  595,857       Bank of America Corp., 6.20%, Series D      15,253,939   
  80,317       Bank of America Corp., 6.38%, Series 3      2,072,179   
  1,124,971       Bank of America Corp., 6.50%, Series Y(b)      30,250,470   
  1,218,758       Bank of America Corp., 6.63%, Series W      33,235,531   
  841,149       Barclays Bank PLC, 7.10%, Series 3 (United Kingdom)(b)      21,693,233   
  2,206,131       Barclays Bank PLC, 8.13%, Series 5 (United Kingdom)      57,447,651   
  65,767       BB&T Corp., 5.20%, Series G(b)      1,701,392   
  391,150       BB&T Corp., 5.63%(b)      10,353,740   
  1,964,718       BB&T Corp., 5.63%, Series E      50,689,724   
  475,928       BB&T Corp., 5.85%      12,198,035   
  356,347       Citigroup, Inc., 5.80%, Series C      9,019,143   
  806,557       Citigroup, Inc., 6.30%, Series S      21,381,826   
  1,261,949       Citigroup, Inc., 6.88%, Series K      36,205,317   
  983,339       Citigroup, Inc., 7.13%, Series J(b)      28,044,828   
  437,009       Fifth Third Bancorp, 6.63%, Series I      13,114,640   
  4,684,395       HSBC Holdings PLC, 8.00%, Series 2 (United Kingdom)      122,075,334   
  1,555,242       HSBC Holdings PLC, 8.13% (United Kingdom)(b)      41,727,143   
  404,348       Huntington Bancshares, Inc., 6.25%, Series D      10,820,352   
  858,456       ING Groep NV, 6.13% (Netherlands)      21,882,043   
  186,581       ING Groep NV, 6.20% (Netherlands)      4,789,534   
  1,527,844       ING Groep NV, 6.38% (Netherlands)      39,418,375   
  808,661       JPMorgan Chase & Co., 5.45%, Series P(b)      20,831,107   
  1,147,855       JPMorgan Chase & Co., 5.50%, Series O(b)      29,178,474   
  1,250,360       JPMorgan Chase & Co., 6.10%, Series AA(b)      33,359,605   
  1,347,982       JPMorgan Chase & Co., 6.13%, Series Y(b)      36,206,797   
  1,359,664       JPMorgan Chase & Co., 6.15%, Series BB      36,262,239   
  133,718       JPMorgan Chase & Co., 6.30%, Series W      3,593,003   
  659,412       JPMorgan Chase & Co., 6.70%, Series T      18,081,077   
Number
of Shares		           Value  
   Preferred Stocks and Other Equity Interests (continued)    
   Banks (continued)   
  329,930       KeyCorp, 8.63%, Series C    $ 8,611,173   
  334,994       KKR Financial Holdings LLC, 7.38%, Series A      8,706,494   
  152,500       People’s United Financial, Inc., 5.63%, Series A      3,980,250   
  1,720,212       PNC Financial Services Group, Inc. (The), 6.13%, Series P      48,509,978   
  443,073       Regions Financial Corp., 6.38%, Series A      11,511,037   
  493,913       Regions Financial Corp., 6.38%, Series B      14,209,877   
  545,859       Royal Bank of Scotland Group PLC, 5.75%, Series L (United Kingdom)      13,728,354   
  499,109       Royal Bank of Scotland Group PLC, 6.60%, Series S (United Kingdom)      12,692,342   
  441,708       SunTrust Banks, Inc., 5.88%, Series E(b)      11,453,488   
  781,390       U.S. Bancorp, 5.15%, Series H      20,253,629   
  504,074       U.S. Bancorp, 6.00%, Series G      12,909,335   
  1,105,710       U.S. Bancorp, 6.50%, Series F      32,452,589   
  1,002,237       Wells Fargo & Co., 5.20%      25,396,686   
  475,921       Wells Fargo & Co., 5.25%, Series P      12,059,838   
  1,098,871       Wells Fargo & Co., 5.50%, Series X(b)      27,966,267   
  979,101       Wells Fargo & Co., 5.70%, Series W(b)      25,211,851   
  1,575,546       Wells Fargo & Co., 5.85%      41,972,545   
  567,346       Wells Fargo & Co., 6.00%, Series T(b)      14,864,465   
  689,227       Wells Fargo & Co., 6.00%, Series V      17,975,040   
  250,118       Wells Fargo & Co., 6.63%(b)      7,380,982   
  2,089,998       Wells Fargo & Co., 8.00%, Series J      56,722,546   
     

 

 

  
        1,233,880,807   
     

 

 

  
   Capital Markets—16.9%   
  569,502       Bank of New York Mellon Corp. (The), 5.20%(b)      15,091,803   
  552,517       Charles Schwab Corp. (The), 5.95%, Series D(b)      14,956,635   
  466,932       Charles Schwab Corp. (The), 6.00%, Series B      12,350,351   
  577,227       Charles Schwab Corp. (The), 6.00%, Series C(b)      15,960,327   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   11  

 

 

PowerShares Financial Preferred Portfolio (PGF) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Preferred Stocks and Other Equity Interests (continued)    
   Capital Markets (continued)   
  981,311       Goldman Sachs Group, Inc. (The), 5.50%, Series J    $ 25,582,778   
  920,297       Goldman Sachs Group, Inc. (The), 5.95%      23,762,069   
  484,732       Goldman Sachs Group, Inc. (The), 6.20%, Series B(b)      12,515,780   
  284,562       Goldman Sachs Group, Inc. (The), 6.30%, Series N      7,586,423   
  432,116       Goldman Sachs Group, Inc. (The), 6.38%, Series K(b)      12,328,269   
  728,012       Morgan Stanley, 6.38%, Series I      20,093,131   
  389,487       Morgan Stanley, 6.63%, Series G      10,652,469   
  930,078       Morgan Stanley, 6.88%, Series F(b)      27,028,067   
  935,955       Morgan Stanley, 7.13%, Series E      27,311,167   
  361,590       Northern Trust Corp., 5.85%, Series C      9,730,387   
  630,009       State Street Corp., 5.25%, Series C      16,002,229   
  334,204       State Street Corp., 5.35%, Series G      8,946,641   
  816,366       State Street Corp., 5.90%, Series D      22,899,066   
  552,232       State Street Corp., 6.00%, Series E      14,689,371   
     

 

 

  
        297,486,963   
     

 

 

  
   Consumer Finance—4.7%   
  484,872       Capital One Financial Corp., 5.20%, Series G      12,039,372   
  917,263       Capital One Financial Corp., 6.00%, Series B      23,674,558   
  508,327       Capital One Financial Corp., 6.20%, Series F(b)      13,567,248   
  422,160       Capital One Financial Corp., 6.25%, Series C      11,212,569   
  299,541       Capital One Financial Corp., 6.70%, Series D(b)      8,414,107   
  569,300       Discover Financial Services, 6.50%, Series B      14,909,967   
     

 

 

  
        83,817,821   
     

 

 

  
   Insurance—8.4%   
  844,365       Aegon NV, 6.38% (Netherlands)      21,497,533   
  291,251       Aegon NV, 6.50% (Netherlands)      7,552,139   
  343,155       Allstate Corp. (The), 5.63%(b)      9,028,408   
  138,107       Allstate Corp. (The), 6.25%,
Series F(b)		      3,763,416   
  753,134       Allstate Corp. (The), 6.63%, Series E      20,455,120   
  335,022       Allstate Corp. (The), 6.75%, Series C      9,048,944   
  388,000       Arch Capital Group Ltd., 5.25%, Series E (Bermuda)      9,459,440   
  320,200       Arch Capital Group Ltd., 6.75%, Series C (Bermuda)      8,187,514   
  237,500       Aspen Insurance Holdings Ltd., 5.63% (Bermuda)      6,072,875   
  256,883       Aspen Insurance Holdings Ltd., 5.95% (Bermuda)      7,310,890   
  387,500       Axis Capital Holdings Ltd., 5.50%, Series E      9,644,875   
  37,431       Axis Capital Holdings Ltd., 6.88%, Series C      960,105   
  412,580       PartnerRe Ltd., 7.25%, Series H (Bermuda)(b)      12,294,884   
  363,701       Prudential PLC, 6.50% (United Kingdom)      9,488,959   
Number
of Shares		           Value  
   Preferred Stocks and Other Equity Interests (continued)    
   Insurance (continued)   
  218,419       Prudential PLC, 6.75% (United Kingdom)    $ 5,783,735   
  298,302       RenaissanceRe Holdings Ltd., 5.38%, Series E (Bermuda)(b)      7,648,463   
     

 

 

  
        148,197,300   
     

 

 

  
   Total Investments
(excluding investments purchased with cash collateral from securities on loan)
(Cost $1,684,190,780)—100.0%		      1,763,382,891   
     

 

 

  
     
   Investments Purchased with Cash Collateral from Securities on Loan    
     
   Money Market Fund—1.4%   
  24,706,615       Invesco Government & Agency Portfolio—Institutional Class,
0.29%(c)(d)
(Cost $24,706,615)		      24,706,615   
     

 

 

  
   Total Investments
(Cost $1,708,897,395)—101.4%		      1,788,089,506   
   Other assets less
liabilities—(1.4)%		      (24,841,339 ) 
     

 

 

  
   Net Assets—100.0%    $ 1,763,248,167   
     

 

 

  

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  All or a portion of this security was out on loan at October 31, 2016.
(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
(d)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2H.

This Fund has holdings greater than 10% of net assets in the following country:

 

United Kingdom     16.1 % 
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   12  

 

 

PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Multi-Utilities      12.4   
Oil, Gas & Consumable Fuels      12.0   
Banks      10.4   
Tobacco      7.6   
Electric Utilities      7.0   
Semiconductors & Semiconductor Equipment      5.2   
Food Products      5.1   
Gas Utilities      5.0   
Insurance      4.9   
Diversified Telecommunication Services      4.6   
Machinery      3.9   
Metals & Mining      3.7   
Capital Markets      3.1   
Energy Equipment & Services      2.7   
Specialty Retail      2.3   
Electrical Equipment      1.9   
IT Services      1.8   
Media      1.8   
Household Products      1.7   
Personal Products      1.5   
Road & Rail      1.4   
Money Market Fund Plus Other Assets Less Liabilities      (0.0)   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks—100.0%   
   Banks—10.4%   
  201,275       BOK Financial Corp.(b)    $ 14,294,550   
  307,461       Community Bank System, Inc.      14,484,488   
  224,802       Cullen/Frost Bankers, Inc.      17,082,704   
  1,427,047       People’s United Financial, Inc.      23,175,243   
  471,107       United Bankshares, Inc.(b)      17,760,734   
  336,942       Westamerica Bancorp.(b)      16,698,846   
     

 

 

  
        103,496,565   
     

 

 

  
   Capital Markets—3.1%   
  369,297       Eaton Vance Corp.      12,947,553   
  631,252       Invesco Ltd.(c)      17,731,869   
     

 

 

  
        30,679,422   
     

 

 

  
Number
of Shares		           Value  
   Common Stocks (continued)   
   Diversified Telecommunication Services—4.6%   
  638,047       AT&T, Inc.    $ 23,473,749   
  460,732       Verizon Communications, Inc.      22,161,209   
     

 

 

  
        45,634,958   
     

 

 

  
   Electric Utilities—7.0%   
  287,057       Duke Energy Corp.      22,970,301   
  685,106       PPL Corp.      23,526,540   
  457,795       Southern Co. (The)      23,608,488   
     

 

 

  
        70,105,329   
     

 

 

  
   Electrical Equipment—1.9%   
  382,211       Emerson Electric Co.      19,370,453   
     

 

 

  
   Energy Equipment & Services—2.7%   
  421,898       Helmerich & Payne, Inc.(b)      26,625,983   
     

 

 

  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   13  

 

 

PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks (continued)   
   Food Products—5.1%   
  344,008       Archer-Daniels-Midland Co.    $ 14,988,429   
  1,531,848       Flowers Foods, Inc.(b)      23,774,281   
  166,857       Kellogg Co.      12,535,966   
     

 

 

  
        51,298,676   
     

 

 

  
   Gas Utilities—5.0%   
  267,140       National Fuel Gas Co.      13,992,793   
  286,722       Northwest Natural Gas Co.      16,859,254   
  647,371       South Jersey Industries, Inc.      19,194,550   
     

 

 

  
        50,046,597   
     

 

 

  
   Household Products—1.7%   
  195,155       Procter & Gamble Co. (The)      16,939,454   
     

 

 

  
   Insurance—4.9%   
  469,088       Mercury General Corp.      25,551,224   
  1,407,769       Old Republic International Corp.      23,734,985   
     

 

 

  
        49,286,209   
     

 

 

  
   IT Services—1.8%   
  119,426       International Business Machines Corp.      18,354,582   
     

 

 

  
   Machinery—3.9%   
  256,032       Caterpillar, Inc.      21,368,431   
  139,763       Cummins, Inc.      17,864,506   
     

 

 

  
        39,232,937   
     

 

 

  
   Media—1.8%   
  385,474       Meredith Corp.      17,481,246   
     

 

 

  
   Metals & Mining—3.7%   
  275,880       Compass Minerals International,
Inc.(b)		      19,821,978   
  355,259       Nucor Corp.      17,354,402   
     

 

 

  
        37,176,380   
     

 

 

  
   Multi-Utilities—12.4%   
  559,460       Avista Corp.      23,161,644   
  1,105,092       CenterPoint Energy, Inc.      25,196,098   
  256,965       Consolidated Edison, Inc.      19,413,706   
  748,649       MDU Resources Group, Inc.      19,622,090   
  245,487       SCANA Corp.      18,008,926   
  365,872       Vectren Corp.      18,407,020   
     

 

 

  
        123,809,484   
     

 

 

  
   Oil, Gas & Consumable Fuels—12.0%   
  236,190       Chevron Corp.      24,740,902   
  217,619       Exxon Mobil Corp.      18,132,015   
  1,016,510       Murphy Oil Corp.      26,297,114   
  283,579       Occidental Petroleum Corp.      20,675,745   
  612,039       ONEOK, Inc.      29,641,049   
     

 

 

  
        119,486,825   
     

 

 

  
   Personal Products—1.5%   
  235,798       Nu Skin Enterprises, Inc., Class A(b)      14,536,947   
     

 

 

  
   Road & Rail—1.4%   
  149,424       Norfolk Southern Corp.      13,896,432   
     

 

 

  
   Semiconductors & Semiconductor Equipment—5.2%   
  414,125       Maxim Integrated Products, Inc.      16,411,774   
  261,447       Microchip Technology, Inc.      15,830,616   
  283,496       QUALCOMM, Inc.      19,481,845   
     

 

 

  
        51,724,235   
     

 

 

  
Number
of Shares		           Value  
   Common Stocks (continued)   
   Specialty Retail—2.3%   
  830,381       Gap, Inc. (The)    $ 22,910,212   
     

 

 

  
   Tobacco—7.6%   
  288,853       Altria Group, Inc.      19,098,960   
  325,360       Universal Corp.      17,634,512   
  1,861,872       Vector Group Ltd.(b)      38,987,600   
     

 

 

  
        75,721,072   
     

 

 

  
   Total Investments
(excluding investments purchased with cash collateral from securities on loan)
(Cost $936,984,235)—100.0%		      997,813,998   
     

 

 

  
     
   Investments Purchased with Cash Collateral from Securities on Loan    
     
   Money Market Fund—7.1%   
  70,608,043       Invesco Government & Agency Portfolio—Institutional Class,
0.29%(d)(e)
(Cost $70,608,043)		      70,608,043   
     

 

 

  
   Total Investments
(Cost $1,007,592,278)—107.1%		      1,068,422,041   
   Other assets less
liabilities—(7.1)%		      (70,672,241 ) 
     

 

 

  
   Net Assets—100.0%    $ 997,749,800   
     

 

 

  

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  All or a portion of this security was out on loan at October 31, 2016.
(c)  Affiliated company. The Fund’s Adviser is a wholly-owned subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated with the Fund. See Note 4.
(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2H.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   14  

 

 

PowerShares International Dividend Achievers™ Portfolio (PID)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sector Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Energy      24.7   
Financials      18.5   
Materials      13.7   
Industrials      10.3   
Telecommunication Services      9.1   
Consumer Discretionary      8.1   
Health Care      5.6   
Information Technology      4.9   
Consumer Staples      3.2   
Utilities      1.9   
Money Market Fund Plus Other Assets Less Liabilities      (0.0)   
 

 

Schedule of Investments

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests—100.0%    
   Australia—8.2%   
  533,420       BHP Billiton Ltd. ADR(a)    $ 18,680,368   
  721,781       BHP Billiton PLC ADR(a)      21,826,658   
  733,480       Westpac Banking Corp. ADR(a)      17,016,736   
     

 

 

  
        57,523,762   
     

 

 

  
   Bermuda—3.7%   
  1,747,886       Teekay LNG Partners LP(a)      25,868,713   
     

 

 

  
   Brazil—0.7%   
  229,606       Ultrapar Participacoes SA ADR      5,189,096   
     

 

 

  
   Canada—29.3%   
  98,348       Agrium, Inc.      9,030,313   
  196,951       Bank of Nova Scotia (The)      10,588,086   
  240,837       BCE, Inc.      10,943,633   
  384,857       Brookfield Infrastructure Partners
LP(a)		      13,019,712   
  145,298       Canadian Imperial Bank of
Commerce(a)		      10,891,538   
  65,545       Canadian National Railway Co.      4,120,814   
  187,932       Canadian Natural Resources Ltd.      5,959,324   
  259,153       Enbridge, Inc.      11,187,635   
  45,491       Franco-Nevada Corp.      2,977,841   
  152,669       Imperial Oil Ltd.      4,958,689   
  155,834       Magna International, Inc.      6,396,986   
  341,261       Methanex Corp.      12,404,837   
  404,048       Pembina Pipeline Corp.      12,428,517   
  1,003,472       Potash Corp. of Saskatchewan, Inc.      16,336,524   
  174,207       Ritchie Bros. Auctioneers, Inc.      6,025,820   
  207,663       Rogers Communications, Inc., Class B      8,354,283   
  163,219       Royal Bank of Canada      10,197,923   
  584,391       Shaw Communications, Inc., Class B      11,582,630   
  309,872       Suncor Energy, Inc.      9,302,357   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Canada (continued)   
  324,230       TELUS Corp.    $ 10,501,810   
  208,326       Toronto-Dominion Bank (The)      9,453,834   
  205,329       TransCanada Corp.      9,297,297   
     

 

 

  
        205,960,403   
     

 

 

  
   Colombia—1.0%   
  188,403       Bancolombia SA (Preference Shares) ADR      7,212,067   
     

 

 

  
   Denmark—0.9%   
  168,735       Novo Nordisk A/S, Class B ADR      5,996,842   
     

 

 

  
   France—1.6%   
  293,230       Sanofi ADR      11,403,715   
     

 

 

  
   Germany—0.9%   
  60,162       Fresenius Medical Care AG & Co. KGaA ADR(a)      2,441,374   
  44,006       SAP SE ADR(a)      3,865,487   
     

 

 

  
        6,306,861   
     

 

 

  
   Hong Kong—3.3%   
  1,861,432       Seaspan Corp.(a)      23,025,914   
     

 

 

  
   India—2.9%   
  48,013       Axis Bank Ltd. GDR(b)      1,738,071   
  21,509       HDFC Bank Ltd. ADR      1,522,407   
  658,898       ICICI Bank Ltd. ADR      5,462,265   
  377,974       Infosys Ltd. ADR      5,767,883   
  140,426       Larsen & Toubro Ltd. GDR(b)      3,089,372   
  84,199       Reliance Industries Ltd. GDR(b)      2,669,108   
     

 

 

  
        20,249,106   
     

 

 

  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   15  

 

 

PowerShares International Dividend Achievers™ Portfolio (PID) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Israel—0.9%   
  139,745       Teva Pharmaceutical Industries Ltd. ADR    $ 5,972,701   
     

 

 

  
   Italy—0.8%   
  110,853       Luxottica Group SpA ADR(a)      5,501,634   
     

 

 

  
   Japan—3.0%   
  133,441       Nippon Telegraph & Telephone Corp. ADR      5,923,446   
  99,383       ORIX Corp. ADR      7,869,146   
  65,317       Toyota Motor Corp. ADR      7,554,564   
     

 

 

  
        21,347,156   
     

 

 

  
   Mexico—2.5%   
  557,625       America Movil SAB de CV, Series L ADR      7,327,193   
  105,269       Grupo Aeroportuario del Pacifico SAB de CV ADR      10,172,143   
     

 

 

  
        17,499,336   
     

 

 

  
   Netherlands—0.4%   
  27,775       ASML Holding NV(a)      2,933,595   
     

 

 

  
   Norway—2.2%   
  937,869       Statoil ASA ADR(a)      15,230,993   
     

 

 

  
   Panama—1.8%   
  481,414       Banco Latinoamericano de Comercio Exterior SA, Class E      12,983,736   
     

 

 

  
   Russia—3.0%   
  322,978       LUKOIL PJSC ADR      15,745,177   
  47,552       Novatek OJSC GDR(b)      5,083,309   
     

 

 

  
        20,828,486   
     

 

 

  
   Sweden—1.6%   
  2,351,553       Telefonaktiebolaget LM Ericsson, Class B ADR      11,452,063   
     

 

 

  
   Switzerland—2.4%   
  417,033       ABB Ltd. ADR      8,611,731   
  114,288       Novartis AG ADR      8,116,734   
     

 

 

  
        16,728,465   
     

 

 

  
   Taiwan—1.5%   
  1,782,303       Advanced Semiconductor Engineering, Inc. ADR      10,426,472   
     

 

 

  
   United Kingdom—21.7%   
  546,174       BP PLC ADR      19,416,486   
  74,071       British American Tobacco PLC ADR(a)      8,510,017   
  393,475       BT Group PLC ADR      9,105,011   
  65,892       Diageo PLC ADR(a)      7,085,367   
  480,778       HSBC Holdings PLC ADR(a)      18,091,676   
  123,124       Intercontinental Hotels Group PLC ADR(a)      4,857,242   
  1,473,408       Pearson PLC ADR(a)      13,599,556   
  83,948       Pentair PLC      4,628,053   
  278,181       Prudential PLC ADR(a)      9,104,864   
  380,053       Relx NV ADR      6,388,691   
  323,818       Relx PLC ADR(a)      5,874,058   
  434,858       Rio Tinto PLC ADR(a)      15,154,801   
  149,391       Smith & Nephew PLC ADR      4,369,687   
  170,701       Unilever NV      7,138,716   
  429,383       Vodafone Group PLC ADR      11,954,023   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   United Kingdom (continued)   
  64,911       WPP PLC ADR(a)    $ 7,040,896   
     

 

 

  
        152,319,144   
     

 

 

  
   United States—5.7%   
  5,891       Shire PLC ADR      993,458   
  5,199,073       Teekay Offshore Partners LP(a)      31,090,457   
  205,374       Thomson Reuters Corp.      8,093,789   
     

 

 

  
        40,177,704   
     

 

 

  
   Total Investments
(excluding investments purchased with cash collateral from securities on loan)
(Cost $722,297,619)—100.0%		      702,137,964   
     

 

 

  
     
   Investments Purchased with Cash Collateral from Securities on Loan    
     
   Money Market Fund—15.0%   
  104,894,165       Invesco Government & Agency Portfolio—Institutional Class,
0.29%(c)(d)
(Cost $104,894,165)		      104,894,165   
     

 

 

  
   Total Investments
(Cost $827,191,784)—115.0%		      807,032,129   
   Other assets less
liabilities—(15.0)%		      (104,973,017 ) 
     

 

 

  
   Net Assets—100.0%    $ 702,059,112   
     

 

 

  

Investment Abbreviations:

ADR—American Depositary Receipt

GDR—Global Depositary Receipt

Notes to Schedule of Investments:

(a)  All or a portion of this security was out on loan at October 31, 2016.
(b)  Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at October 31, 2016 was $12,579,860, which represented 1.79% of the Fund’s Net Assets.
(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
(d)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2H.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   16  

 

 

Statements of Assets and Liabilities

October 31, 2016

(Unaudited)

 

    PowerShares
BuyBack
AchieversTM
Portfolio (PKW)		      PowerShares
Dividend
AchieversTM
Portfolio  (PFM)		      PowerShares
Financial
Preferred
Portfolio (PGF)		      PowerShares
High Yield
Equity  Dividend
AchieversTM
Portfolio (PEY)		      PowerShares
International
Dividend
AchieversTM
Portfolio (PID)		  
Assets:              

Unaffiliated investments, at value(a)

   $ 1,305,007,751       $ 286,226,347       $ 1,763,382,891       $ 980,082,129       $ 702,137,964   

Affiliated investments, at value

     26,390,609         491,238         24,706,615         88,339,912         104,894,165   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total investments, at value

     1,331,398,360         286,717,585         1,788,089,506         1,068,422,041         807,032,129   

Receivables:

              

Investments sold

     35,074,177         529,133         11,707,245         —         —   

Shares sold

     11,677,040         —         —         769,559         5,724,389   

Dividends

     451,026         530,894         4,656,067         2,056,665         905,287   

Securities lending

     4,538         —         94,085         29,932         106,687   

Foreign tax reclaims

     —         —         —         —         932,950   

Settlement proceeds

     —         —         —         —         1,765   

Other assets

     5,302         981         2,062         1,632         2,880   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Assets

     1,378,610,443         287,778,593         1,804,548,965         1,071,279,829         814,706,087   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Liabilities:              

Due to custodian

     —         1,361         1,952,774         135,843         385,224   

Payables:

              

Collateral upon return of securities loaned

     25,006,122         —         24,706,615         70,608,043         104,894,165   

Investments purchased

     23,491,893         693,930         12,933,562         1,775,455         6,405,340   

Shares repurchased

     23,390,615         —         —         —         —   

Accrued advisory fees

     566,677         98,090         760,549         338,598         241,518   

Accrued trustees’ and officer’s fees

     63,587         28,134         95,727         33,216         60,137   

Accrued expenses

     1,203,770         241,965         851,571         638,874         660,591   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Liabilities

     73,722,664         1,063,480         41,300,798         73,530,029         112,646,975   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Net Assets   $ 1,304,887,779       $ 286,715,113       $ 1,763,248,167       $ 997,749,800       $ 702,059,112   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Net Assets Consist of:              

Shares of beneficial interest

   $ 1,459,834,220       $ 251,100,259       $ 1,692,605,424       $ 1,061,499,631       $ 1,219,880,086   

Undistributed net investment income

     1,055,858         701,306         (676,302 )       163,946         2,587,470   

Undistributed net realized gain (loss)

     (229,124,778 )       (20,661,248 )       (7,873,066 )       (124,743,540 )       (500,248,575 ) 

Net unrealized appreciation (depreciation)

     73,122,479         55,574,796         79,192,111         60,829,763         (20,159,869 ) 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Net Assets   $ 1,304,887,779       $ 286,715,113       $ 1,763,248,167       $ 997,749,800       $ 702,059,112   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding (unlimited amount authorized, $0.01 par value)

     27,850,000         12,950,000         93,650,000         64,300,000         49,150,000   

Net asset value

   $ 46.85       $ 22.14       $ 18.83       $ 15.52       $ 14.28   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Market price

   $ 46.88       $ 22.15       $ 18.84       $ 15.53       $ 14.31   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Unaffiliated investments, at cost

   $ 1,231,885,272       $ 230,412,099       $ 1,684,190,780       $ 917,727,736       $ 722,297,619   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Affiliated investments, at cost

   $ 26,390,609       $ 730,690       $ 24,706,615       $ 89,864,542       $ 104,894,165   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total investments, at cost

   $ 1,258,275,881       $ 231,142,789       $ 1,708,897,395       $ 1,007,592,278       $ 827,191,784   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

(a) Includes securities on loan with an aggregate value of

   $ 24,549,834       $ —       $ 24,117,919       $ 69,357,467       $ 102,142,707   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   17  

 

 

Statements of Operations

For the six months ended October 31, 2016

(Unaudited)

 

    PowerShares
BuyBack
AchieversTM
Portfolio  (PKW)		     PowerShares
Dividend
AchieversTM
Portfolio  (PFM)		     PowerShares
Financial
Preferred
Portfolio (PGF)		     PowerShares
High Yield
Equity  Dividend
AchieversTM
Portfolio (PEY)		     PowerShares
International
Dividend
AchieversTM
Portfolio  (PID)		  
Investment Income:          

Unaffiliated dividend income

   $ 13,970,438      $ 3,977,504      $ 52,306,107      $ 17,636,719      $ 13,847,678   

Affiliated dividend income

     2,396        10,417        9,382        295,663        1,221   

Securities lending income

     130,005        —        434,503        247,522        1,158,040   

Foreign withholding tax

     —        —        —        —        (1,021,774 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Income

     14,102,839        3,987,921        52,749,992        18,179,904        13,985,165   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Expenses:          

Advisory fees

     3,702,737        588,836        4,429,144        1,910,010        1,369,968   

Sub-licensing fees

     740,545        147,208        837,104        477,500        342,491   

Accounting & administration fees

     173,218        27,668        153,714        67,926        75,330   

Trustees’ and officer’s fees

     18,435        6,449        18,726        11,022        9,855   

Custodian & transfer agent fees

     13,408        10,414        30,423        7,832        136,734   

Other expenses

     98,570        31,081        76,601        40,633        67,815   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Expenses

     4,746,913        811,656        5,545,712        2,514,923        2,002,193   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less: Waivers

     (1,213 )      (201 )      (4,990 )      (633 )      (601 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Expenses

     4,745,700        811,455        5,540,722        2,514,290        2,001,592   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Investment Income

     9,357,139        3,176,466        47,209,270        15,665,614        11,983,573   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Realized and Unrealized Gain (Loss):          

Net realized gain (loss) from:

          

Investment securities

     (2,192,239 )      122,895        (766,740 )      (5,528,736 )      (88,134,385 ) 

In-kind redemptions

     37,466,748        2,176,287        18,810,714        38,316,679        2,830,516   

Foreign currencies

     —        —        —        —        (8,114 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net realized gain (loss)

     35,274,509        2,299,182        18,043,974        32,787,943        (85,311,983 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Change in net unrealized appreciation (depreciation) on:

          

Investment securities

     5,165,284        3,228,635        (17,887,322 )      2,224,284        71,654,435   

Foreign currencies

     —        —        —        —        (858 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation (depreciation)

     5,165,284        3,228,635        (17,887,322 )      2,224,284        71,653,577   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net realized and unrealized gain (loss)

     40,439,793        5,527,817        156,652        35,012,227        (13,658,406 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

   $ 49,796,932      $ 8,704,283      $ 47,365,922      $ 50,677,841      $ (1,674,833 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   18  

 

 

 

(This Page Intentionally Left Blank)

 

Statements of Changes in Net Assets

For the six months ended October 31, 2016 and the year ended April 30, 2016

(Unaudited)

 

    PowerShares BuyBack
AchieversTM Portfolio (PKW)		      PowerShares Dividend
AchieversTM Portfolio (PFM)		  
    October 31, 2016      April 30, 2016      October 31, 2016      April 30, 2016  
Operations:           

Net investment income

   $ 9,357,139       $ 28,501,250       $ 3,176,466       $ 7,046,193   

Net realized gain (loss)

     35,274,509         (5,228,193 )       2,299,182         14,356,466   

Net change in unrealized appreciation (depreciation)

     5,165,284         (194,908,268 )       3,228,635         (13,429,976 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets resulting from operations

     49,796,932         (171,635,211 )       8,704,283         7,972,683   
 

 

 

     

 

 

     

 

 

     

 

 

  
Distributions to Shareholders from:           

Net investment income

     (11,632,361 )       (29,971,633 )       (3,624,835 )       (7,191,272 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
Shareholder Transactions:           

Proceeds from shares sold

     18,740,425         552,688,479         2,280,246         13,765,872   

Value of shares repurchased

     (391,451,442 )       (1,682,571,530 )       (7,697,049 )       (71,313,646 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets resulting from shares transactions

     (372,711,017 )       (1,129,883,051 )       (5,416,803 )       (57,547,774 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Increase (Decrease) in Net Assets

     (334,546,446 )       (1,331,489,895 )       (337,355 )       (56,766,363 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
Net Assets:           

Beginning of period

     1,639,434,225         2,970,924,120         287,052,468         343,818,831   
 

 

 

     

 

 

     

 

 

     

 

 

  

End of period

   $ 1,304,887,779       $ 1,639,434,225       $ 286,715,113       $ 287,052,468   
 

 

 

     

 

 

     

 

 

     

 

 

  

Undistributed net investment income at end of period

   $ 1,055,858       $ 3,331,080       $ 701,306       $ 1,149,675   
 

 

 

     

 

 

     

 

 

     

 

 

  
Changes in Shares Outstanding:           

Shares sold

     400,000         12,800,000         100,000         650,000   

Shares repurchased

     (8,450,000 )       (37,800,000 )       (350,000 )       (3,500,000 ) 

Shares outstanding, beginning of period

     35,900,000         60,900,000         13,200,000         16,050,000   
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding, end of period

     27,850,000         35,900,000         12,950,000         13,200,000   
 

 

 

     

 

 

     

 

 

     

 

 

  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   20  

 

 

 

PowerShares Financial
Preferred Portfolio (PGF)		      PowerShares High Yield Equity
Dividend AchieversTM Portfolio (PEY)		      PowerShares International
Dividend AchieversTM Portfolio (PID)		  
October 31, 2016      April 30, 2016      October 31, 2016      April 30, 2016      October 31, 2016      April 30, 2016  
              
$ 47,209,270       $ 87,221,748       $ 15,665,614       $ 20,186,708       $ 11,983,573       $ 38,185,806   
  18,043,974         30,926,030         32,787,943         37,918,749         (85,311,983 )       (123,252,756 ) 
  (17,887,322 )       (9,113,684 )       2,224,284         25,751,399         71,653,577         (202,703,610 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  47,365,922         109,034,094         50,677,841         83,856,856         (1,674,833 )       (287,770,560 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
              
  (47,796,830 )       (87,907,150 )       (15,562,399 )       (20,340,136 )       (17,458,700 )       (39,292,920 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
              
  243,423,549         404,047,155         377,384,026         505,920,545         57,469,927         12,037,214   
  (116,122,927 )       (260,512,094 )       (152,533,116 )       (368,978,245 )       (37,961,038 )       (555,136,253 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  127,300,622         143,535,061         224,850,910         136,942,300         19,508,889         (543,099,039 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  126,869,714         164,662,005         259,966,352         200,459,020         375,356         (870,162,519 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
              
  1,636,378,453         1,471,716,448         737,783,448         537,324,428         701,683,756         1,571,846,275   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 1,763,248,167       $ 1,636,378,453       $ 997,749,800       $ 737,783,448       $ 702,059,112       $ 701,683,756   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ (676,302 )     $ (88,742 )     $ 163,946       $ 60,731       $ 2,587,470       $ 8,062,597   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
              
  12,700,000         21,700,000         24,650,000         36,700,000         3,950,000         700,000   
  (6,100,000 )       (14,400,000 )       (9,850,000 )       (27,150,000 )       (2,650,000 )       (38,200,000 ) 
  87,050,000         79,750,000         49,500,000         39,950,000         47,850,000         85,350,000   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  93,650,000         87,050,000         64,300,000         49,500,000         49,150,000         47,850,000   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

   21  

 

 

Financial Highlights

 

PowerShares BuyBack AchieversTM Portfolio (PKW)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
    2016     2015     2014     2013      2012  
Per Share Operating Performance:             

Net asset value at beginning of period

   $ 45.67      $ 48.78     $ 43.42     $ 34.60     $ 29.40      $ 27.27  

Net investment income(a)

     0.30        0.56        0.51       0.39       0.37         0.27   

Net realized and unrealized gain (loss) on investments

     1.24        (3.08 )      5.38       8.70       5.18         2.12   

Total from investment operations

     1.54        (2.52 )      5.89       9.09       5.55        2.39  

Distributions to shareholders from:

             

Net investment income

     (0.36 )      (0.59 )      (0.53 )     (0.27 )     (0.35 )       (0.26 ) 

Net asset value at end of period

   $ 46.85      $ 45.67     $ 48.78     $ 43.42     $ 34.60      $ 29.40  

Market price at end of period(b)

   $ 46.88      $ 45.65     $ 48.77     $ 43.42     $ 34.61      $ 29.40  
Net Asset Value Total Return(c)     3.40 %      (5.18 )%      13.63 %      26.36 %      19.08 %       8.91 % 
Market Price Total Return(c)     3.52 %      (5.20 )%      13.61 %      26.32 %      19.11 %       8.91 % 
Ratios/Supplemental Data:             

Net assets at end of period (000’s omitted)

   $ 1,304,888      $ 1,639,434     $ 2,970,924     $ 2,905,121     $ 418,621       $ 139,641   

Ratio to average net assets of:

             

Expenses, after Waivers

     0.64 %(d)      0.63 %(e)      0.63 %(e)      0.66 %(e)      0.70 %       0.71 % 

Expenses, prior to Waivers

     0.64 %(d)      0.63 %(e)      0.63 %(e)      0.66 %(e)      0.70 %       0.79 % 

Net investment income, after Waivers

     1.26 %(d)      1.21 %      1.09 %      0.95 %      1.21 %       1.00 % 

Portfolio turnover rate(f)

     2 %      53 %      68 %      92 %      80 %       32 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment companies’ expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies the Fund invests in. The effect of the estimated investment companies’ expenses that the Fund bears indirectly is included in the Fund’s total return.
(f)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares Dividend AchieversTM Portfolio (PFM)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016      2015      2014      2013      2012  
Per Share Operating Performance:                

Net asset value at beginning of period

   $ 21.75      $ 21.42      $ 20.50      $ 18.33      $ 15.81      $ 15.29  

Net investment income(a)

     0.24        0.49         0.44        0.39        0.38         0.34   

Net realized and unrealized gain on investments

     0.43        0.33         0.90        2.16        2.52         0.51   

Total from investment operations

     0.67        0.82         1.34        2.55        2.90        0.85  

Distributions to shareholders from:

                

Net investment income

     (0.28 )      (0.49 )       (0.42 )      (0.38 )      (0.38 )       (0.33 ) 

Net asset value at end of period

   $ 22.14      $ 21.75      $ 21.42      $ 20.50      $ 18.33      $ 15.81  

Market price at end of period(b)

   $ 22.15      $ 21.75      $ 21.40      $ 20.50      $ 18.32      $ 15.80  
Net Asset Value Total Return(c)     3.08 %      3.98 %       6.54 %       14.11 %       18.67 %       5.78 % 
Market Price Total Return(c)     3.13 %      4.08 %       6.44 %       14.17 %       18.68 %       5.71 % 
Ratios/Supplemental Data:                

Net assets at end of period (000’s omitted)

   $ 286,715      $ 287,052      $ 343,819      $ 351,557      $ 296,928       $ 252,988   

Ratio to average net assets of:

                

Expenses, after Waivers

     0.55 %(d)      0.55 %       0.55 %       0.55 %       0.58 %       0.60 % 

Expenses, prior to Waivers

     0.55 %(d)      0.55 %       0.55 %       0.55 %       0.58 %       0.60 % 

Net investment income, after Waivers

     2.16 %(d)      2.35 %       2.07 %       2.05 %       2.28 %       2.28 % 

Portfolio turnover rate(e)

     2 %      7 %       20 %       21 %       18 %       20 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   22  

 

 

Financial Highlights (continued)

 

PowerShares Financial Preferred Portfolio (PGF)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
    2016     2015     2014     2013     2012  
Per Share Operating Performance:            

Net asset value at beginning of period

   $ 18.80      $ 18.45     $ 17.99     $ 18.67     $ 17.79     $ 18.26  

Net investment income(a)

     0.51        1.06        1.07       1.10       1.18        1.17   

Net realized and unrealized gain (loss) on investments

     0.04        0.36        0.45       (0.68 )     0.85        (0.42 ) 

Total from investment operations

     0.55        1.42        1.52       0.42       2.03       0.75  

Distributions to shareholders from:

            

Net investment income

     (0.52 )      (1.07 )      (1.06 )     (1.10 )     (1.15 )      (1.17 ) 

Return of capital

     —        —        —        —        —       (0.05 ) 

Total distributions

     (0.52 )      (1.07 )      (1.06 )     (1.10 )     (1.15 )      (1.22 ) 

Net asset value at end of period

   $ 18.83      $ 18.80     $ 18.45     $ 17.99     $ 18.67     $ 17.79  

Market price at end of period(b)

   $ 18.84      $ 18.83     $ 18.46     $ 17.98     $ 18.70     $ 17.83  
Net Asset Value Total Return(c)     2.93 %      8.01 %      8.73 %      2.63 %      11.78 %      4.56 % 
Market Price Total Return(c)     2.82 %      8.12 %      8.85 %      2.41 %      11.71 %      4.68 % 
Ratios/Supplemental Data:            

Net assets at end of period (000’s omitted)

     $1,763,248      $ 1,636,378     $ 1,471,716     $ 1,435,558     $ 1,891,452      $ 1,612,698   

Ratio to average net assets of:

            

Expenses, after Waivers

     0.63 %(d)      0.63 %      0.63 %      0.63 %      0.64 %      0.66 % 

Expenses, prior to Waivers

     0.63 %(d)      0.63 %      0.63 %      0.63 %      0.64 %      0.66 % 

Net investment income, after Waivers

     5.33 %(d)      5.76 %      5.87 %      6.28 %      6.47 %      6.76 % 

Portfolio turnover rate(e)

     4 %      13 %      9 %      30 %      18 %      6 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
    2016     2015     2014     2013     2012  
Per Share Operating Performance:            

Net asset value at beginning of period

   $ 14.90      $ 13.45     $ 12.32     $ 10.77     $ 9.36     $ 9.06  

Net investment income(a)

     0.26        0.48        0.43       0.42       0.42        0.35   

Net realized and unrealized gain on investments

     0.61        1.46        1.13       1.54       1.41        0.29   

Total from investment operations

     0.87        1.94        1.56       1.96       1.83       0.64  

Distributions to shareholders from:

            

Net investment income

     (0.25 )      (0.49 )      (0.43 )     (0.41 )     (0.42 )      (0.34 ) 

Net asset value at end of period

   $ 15.52      $ 14.90     $ 13.45     $ 12.32     $ 10.77     $ 9.36  

Market price at end of period(b)

   $ 15.53      $ 14.91     $ 13.45     $ 12.32     $ 10.76     $ 9.36  
Net Asset Value Total Return(c)     5.90 %      14.92 %      12.89 %      18.61 %      20.16 %      7.37 % 
Market Price Total Return(c)     5.89 %      14.99 %      12.89 %      18.72 %      20.05 %      7.37 % 
Ratios/Supplemental Data:            

Net assets at end of period (000’s omitted)

   $ 997,750      $ 737,783     $ 537,324     $ 393,103     $ 322,476      $ 276,169   

Ratio to average net assets of:

            

Expenses, after Waivers

     0.53 %(d)      0.54 %      0.54 %      0.55 %      0.57 %      0.60 % 

Expenses, prior to Waivers

     0.53 %(d)      0.54 %      0.54 %      0.55 %      0.57 %      0.60 % 

Net investment income, after Waivers

     3.28 %(d)      3.62 %      3.29 %      3.70 %      4.31 %      3.88 % 

Portfolio turnover rate(e)

     14 %      59 %      45 %      51 %      32 %      35 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   23  

 

 

Financial Highlights (continued)

 

PowerShares International Dividend AchieversTM Portfolio (PID)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
    2016     2015      2014     2013      2012  
Per Share Operating Performance:              

Net asset value at beginning of period

   $ 14.66      $ 18.42     $ 18.56      $ 17.27      $ 15.35      $ 16.85  

Net investment income(a)

     0.25        0.56        0.51          0.67 (b)      0.40         0.48   

Net realized and unrealized gain (loss) on investments

     (0.26 )      (3.78 )      (0.17 )      1.26        1.93         (1.49 ) 

Total from investment operations

     (0.01 )      (3.22 )      0.34        1.93        2.33        (1.01 ) 

Distributions to shareholders from:

              

Net investment income

     (0.37 )      (0.54 )      (0.48 )      (0.64 )      (0.41 )       (0.49 ) 

Net asset value at end of period

   $ 14.28      $ 14.66     $ 18.42      $ 18.56      $ 17.27      $ 15.35  

Market price at end of period(c)

   $ 14.31      $ 14.65     $ 18.43      $ 18.58      $ 17.31      $ 15.37  
Net Asset Value Total Return(d)     0.02 %      (17.53 )%      1.83 %       11.50 %      15.63 %       (5.87 )% 
Market Price Total Return(d)     0.29 %      (17.63 )%      1.77 %       11.35 %      15.75 %       (5.97 )% 
Ratios/Supplemental Data:              

Net assets at end of period (000’s omitted)

   $ 702,059      $ 701,684     $ 1,571,846      $ 1,160,654      $ 877,341       $ 690,196   

Ratio to average net assets of:

              

Expenses, after Waivers

     0.58 %(e)      0.58 %      0.55 %       0.54 %      0.56 %       0.55 % 

Expenses, prior to Waivers

     0.58 %(e)      0.58 %      0.55 %       0.54 %      0.56 %       0.56 % 

Net investment income, after Waivers

     3.50 %(e)      3.62 %      2.77 %       3.82 %(b)      2.57 %       3.20 % 

Portfolio turnover rate(f)

     21 %      61 %      66 %       49 %      46 %       33 % 

 

(a)  Based on average shares outstanding.
(b)  Net investment income per share and the ratio of net investment income to average net assets include a significant dividend during the year. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividend are $0.43 and 2.42%, respectively.
(c)  The mean between the last bid and ask prices.
(d)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(e)  Annualized.
(f)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   24  

 

 

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

October 31, 2016

(Unaudited)

 

Note 1. Organization

PowerShares Exchange-Traded Fund Trust (the “Trust”) was organized as a Massachusetts business trust on June 9, 2000 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of October 31, 2016, the Trust offered fifty-three portfolios. This report includes the following portfolios:

 

Full Name

   

Short Name

PowerShares BuyBack AchieversTM Portfolio (PKW)    “BuyBack AchieversTM Portfolio”
PowerShares Dividend AchieversTM Portfolio (PFM)    “Dividend AchieversTM Portfolio”
PowerShares Financial Preferred Portfolio (PGF)    “Financial Preferred Portfolio”
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY)    “High Yield Equity Dividend AchieversTM Portfolio”
PowerShares International Dividend AchieversTM Portfolio (PID)    “International Dividend AchieversTM Portfolio”

Each portfolio (each, a “Fund”, and collectively, the “Funds”) represents a separate series of the Trust. The shares of the Funds are referred to herein as “Shares” or “Fund’s Shares.” Each Fund’s Shares are listed and traded on NYSE Arca, Inc.

The market price of each Share may differ to some degree from the Fund’s net asset value (“NAV”). Unlike conventional mutual funds, each Fund issues and redeems Shares on a continuous basis, at NAV, only in a large specified number of Shares, each called a “Creation Unit.” Creation Units are issued and redeemed principally in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”). Except when aggregated in Creation Units by Authorized Participants, the Shares are not individually redeemable securities of the Funds.

The investment objective of each Fund is to seek investment results that generally correspond (before fees and expenses) to the price and yield of its respective index listed below (each, an “Underlying Index”):

 

Fund

   

Underlying Index

BuyBack AchieversTM Portfolio    NASDAQ US BuyBack AchieversTM Index
Dividend AchieversTM Portfolio    NASDAQ US Broad Dividend AchieversTM Index
Financial Preferred Portfolio    Wells Fargo® Hybrid & Preferred Securities Financial Index
High Yield Equity Dividend AchieversTM Portfolio    NASDAQ US Dividend AchieversTM 50 Index
International Dividend AchieversTM Portfolio    NASDAQ International Dividend AchieversTM Index

Note 2. Significant Accounting Policies

The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements, including estimates and assumptions related to taxation. Actual results could differ from these estimates. In addition, the Funds monitor for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. The following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.

A. Security Valuation

Securities, including restricted securities, are valued according to the following policies:

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining NAV per Share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

 

 

   25  

 

 

 

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day NAV per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts’) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the London world markets. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that Invesco PowerShares Capital Management LLC (the “Adviser”) determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith following procedures approved by the Board of Trustees. Issuer-specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

Each Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors, including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Other Risks

Index Risk. Unlike many investment companies, the Funds do not utilize investing strategies that seek returns in excess of their Underlying Indexes. Therefore, a Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.

Equity Risk. Equity risk is the risk that the value of the securities that each Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities that a Fund holds participate or factors relating to specific companies in which the Fund invests. For example, an adverse event, such as an unfavorable earnings report, may depress the value of securities a Fund holds; the price of securities may be particularly sensitive to general movements in the stock market; or a drop in the stock market may depress the price of most or all of the securities a Fund holds. In addition, securities of an issuer in the Fund’s portfolio may decline in price if the issuer fails to make anticipated dividend payments because, among other reasons, the issuer of the security experiences a decline in its financial condition.

 

 

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Industry Concentration Risk. In following its methodology, each Fund’s Underlying Index from time to time will be concentrated to a significant degree in securities of issuers located in a single industry or a sector. To the extent that an Underlying Index concentrates in the securities of issuers in a particular industry or sector, each Fund will also concentrate its investments to approximately the same extent. By concentrating its investments in an industry or sector, a Fund may face more risks than if it were diversified broadly over numerous industries or sectors. In addition, at times, an industry or sector may be out of favor and underperform other industries or the market as a whole. Any factors detrimental to the performance of such industry or sector will disproportionately impact a Fund’s NAV.

Non-Diversified Fund Risk. BuyBack AchieversTM Portfolio and Financial Preferred Portfolio are non-diversified and can invest a greater portion of their assets in securities of individual issuers than diversified funds. As a result, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund. This may increase a Fund’s volatility and cause the performance of a relatively small number of issuers to have a greater impact on a Fund’s performance.

Non-Correlation Risk. Each Fund’s return may not match the return of its Underlying Index for a number of reasons. For example, each Fund incurs operating expenses not applicable to its Underlying Index, and incurs costs in buying and selling securities, especially when rebalancing the Fund’s securities holdings to reflect changes in the composition of its Underlying Index. In addition, the performance of each Fund and its Underlying Index may vary due to asset valuation differences and differences between each Fund’s portfolio and its Underlying Index resulting from legal restrictions, cost or liquidity constraints.

Sampling Risk. Financial Preferred Portfolio’s use of a representative sampling approach will result in the Fund holding a smaller number of securities than are in its Underlying Index. As a result, an adverse development to an issuer of securities held by the Fund could result in a greater decline in NAV than would be the case if the Fund held all of the securities in its Underlying Index. To the extent the assets in the Fund are smaller, these risks will be greater.

Small- and Mid-Capitalization Company Risk. Investing in securities of small- and mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established companies. These companies’ securities may be more volatile and less liquid than those of more established companies. These securities may have returns that vary, sometimes significantly, from the overall securities market. Often small- and mid-capitalization companies and the industries in which they focus are still evolving and, as a result, they may be more sensitive to changing market conditions.

Dividend Paying Security Risk. Dividend AchieversTM Portfolio, High Yield Equity Dividend AchieversTM Portfolio and International Dividend AchieversTM Portfolio invest in securities that pay high dividends. As a group, these securities can fall out of favor with the market, causing such companies to underperform companies that do not pay high dividends. Also, changes in the dividend policies of the companies in an Underlying Index and the capital resources available for such companies’ dividend payments may affect a Fund.

Consumer Discretionary Sector Risk. At times, BuyBack AchieversTM Portfolio has concentrated its investments in the consumer discretionary sector. Companies engaged in the consumer discretionary sector are affected by fluctuations in supply and demand and changes in consumer preferences. Changes in consumer spending as a result of world events, political and economic conditions, commodity price volatility, changes in exchange rates, imposition of import controls, increased competition, depletion of resources and labor relations also may adversely affect these companies.

Financial Sector Risk. For Financial Preferred Portfolio and International Dividend AchieversTM Portfolio, the market value of securities of issuers in the financial sector can be affected by factors such as adverse regulatory or economic occurrences affecting the financial sector, availability of credit, fluctuations in asset values, unstable interest rates, increased competition, continuing consolidations and development of new products and structures. Furthermore, increased government involvement in financial institutions, including measures such as taking ownership positions in such institutions, could result in a dilution in the value of the shares held by shareholders in such institutions.

Variable- and Floating-Rate Securities Risk. Financial Preferred Portfolio’s investments in variable- and floating-rate instruments are subject to credit risk and default risk, which could impair their value. Variable- and floating-rate securities also may be subject to liquidity risk, meaning that there may be limitations on the Fund’s ability to sell the securities at any given time. Securities with floating or variable interest rates may decline in value if their coupon rates do not reset as high, or as quickly, as comparable market interest rates, and generally carry lower yields than fixed notes of the same maturity. Due to these securities’ variable- or floating-rate features, there can be no guarantee that they will pay a certain level of a dividend, and such securities generally will pay lower levels of income in a falling interest rate environment.

Foreign Securities Risk. For Financial Preferred Portfolio and International Dividend AchieversTM Portfolio, investments in foreign securities involve risks in addition to the risks associated with domestic securities. In general, foreign companies are not subject to the regulatory requirements of U.S. companies and, as such, there may be less publicly available information about these companies. Moreover, foreign companies often are subject to less stringent requirements regarding accounting, auditing, financial reporting and record-keeping than are U.S. companies. Therefore, not all material information regarding these companies will be available.

 

 

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In addition, securities of foreign issuers may be less liquid than comparable securities of U.S. issuers and, as such, their price changes may be more volatile. Furthermore, foreign exchanges and broker-dealers generally are subject to less government and exchange scrutiny and regulation than their U.S. counterparts. In addition, differences in clearance and settlement procedures in foreign markets may cause delays in settlement of a Fund’s trades effected in those markets and could result in losses to a Fund due to subsequent declines in the value of the securities subject to the trades. Depositary receipts also involve substantially identical risks to those associated with investments in foreign securities. Additionally, the issuers of certain depositary receipts, particularly unsponsored or unregistered depositary receipts, have no obligation to distribute shareholder communications to the holders of such receipts or to pass through to them any voting rights with respect to the deposited securities.

ADR and GDR Risk. International Dividend AchieversTM Portfolio may invest in American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”). ADRs are certificates that evidence ownership of shares of a foreign issuer and are alternatives to purchasing directly underlying foreign securities in their national markets and currencies. GDRs are certificates issued by an international bank that generally are traded and denominated in the currencies of countries other than the home country of the issuer of the underlying shares. ADRs and GDRs may be subject to certain of the risks associated with direct investments in the securities of foreign companies, such as currency, political, economic and market risks. Moreover, ADRs and GDRs may not track the price of the underlying foreign securities on which they are based, and their value may change materially at times when U.S. markets are not open for trading.

High Yield Securities Risk. For Financial Preferred Portfolio and High Yield Equity Dividend AchieversTM Portfolio, high yield securities typically involve greater risk and are less liquid than higher grade issues. Changes in general economic conditions, changes in the financial condition of the issuers and changes in interest rates may adversely impact the ability of issuers of high yield securities to make timely payments of interest and principal.

Preferred Securities Risk. Financial Preferred Portfolio faces special risks associated with investing in preferred securities. Preferred securities may include provisions that permit the issuer, in its discretion, to defer or omit distributions for a certain period of time. If the Fund owns a security that is deferring or omitting its distributions, the Fund may be required to report the distribution on its tax returns, even though it may not have received this income. Further, preferred securities may lose substantial value due to the omission or deferment of dividend payments. Preferred securities may be less liquid than many other securities, such as common stocks, and generally offer no voting rights with respect to the issuer. Preferred securities also may be subordinated to bonds or other debt instruments in an issuer’s capital structure, subjecting them to a greater risk of non-payment than more senior securities. In addition, in certain circumstances, an issuer of preferred securities may redeem the securities prior to a specified date, and this may negatively impact the return of the security.

C. Federal Income Taxes

Each Fund intends to comply with the provisions of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute substantially all of the Fund’s taxable earnings to its shareholders. As such, the Funds will not be subject to federal income taxes on otherwise taxable income (including net realized gains) that is distributed to the shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

Each Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed each Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing book and tax treatments for in-kind transactions, losses deferred due to wash sales, and passive foreign investment company adjustments, if any.

The Funds file U.S. federal tax returns and tax returns in certain other jurisdictions. Generally, a Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.

D. Investment Transactions and Investment Income

Investment transactions are accounted for on a trade date basis. Realized gains and losses from the sale or disposition of securities are computed on the specific identified cost basis. Interest income is recorded on the accrual basis. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Realized gains, dividends and interest received by a Fund may give rise to withholding and other taxes imposed by foreign countries. Tax conventions between certain countries and the United States may reduce or eliminate such taxes.

The Funds may periodically participate in litigation related to each Fund’s investments. As such, the Funds may receive proceeds from litigation settlements. Any proceeds received are included in the Statements of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

 

 

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Corporate actions (including cash dividends) are recorded net of non-reclaimable foreign tax withholdings on the ex-date.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statements of Operations and the Statements of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of each Fund’s net asset value and, accordingly, they reduce each Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statements of Operations and the Statements of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between each Fund and the Adviser.

E. Country Determination

For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the Adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

F. Expenses

Expenses of the Trust that are directly identifiable to a specific Fund are applied to that Fund. Expenses of the Trust that are not readily identifiable to a specific Fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative net assets of each Fund.

Each Fund is responsible for all of its expenses, including the investment advisory fees, costs of transfer agency, custody, fund administration, legal, audit and other services, interest, taxes, brokerage commissions and other expenses connected with executions of portfolio transactions, sub-licensing fees related to its respective Underlying Index, any distribution fees or expenses, litigation expenses, fees payable to the Trust’s Board members who are not “interested persons” (as defined in the 1940 Act) of the Trust (the “Independent Trustees”), any Trustee who is not an affiliate of the Adviser or Distributor (or any of their affiliates) and who is otherwise an “interested person” of the Trust under the 1940 Act (an “Unaffiliated Trustee”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees and any Unaffiliated Trustee, acquired fund fees and expenses, if any, and extraordinary expenses.

To the extent a Fund invests in other investment companies, the expenses shown in the accompanying financial statements reflect the expenses of the Fund and do not include any expenses of the investment companies in which it invests. The effects of such investment companies’ expenses are included in the realized and unrealized gain or loss on the investments in the investment companies.

G. Dividends and Distributions to Shareholders

Each Fund (except for Financial Preferred Portfolio and High Yield Equity Dividend AchieversTM Portfolio, which declare and pay dividends from net investment income, if any, monthly) declares and pays dividends from net investment income, if any, to its shareholders quarterly and records such dividends on ex-dividend date. Generally, each Fund distributes net realized taxable capital gains, if any, annually in cash and records them on ex-dividend date. Such distributions on a tax basis are determined in conformity with federal income tax regulations, which may differ from GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in such Fund’s financial statements as a tax return of capital at fiscal year-end.

H. Securities Lending

During the six-month period ended October 31, 2016, BuyBack AchieversTM Portfolio, Financial Preferred Portfolio, High Yield Equity Dividend AchieversTM Portfolio and International Dividend AchieversTM Portfolio participated in securities lending. Each Fund loaned portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% (105% for international securities) of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is invested in an affiliated money market fund and is shown as such on the Schedules of Investments. Each Fund bears the risk of loss with respect to the investment of collateral. It is the policy of these Funds to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, each Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to each Fund if, and to the extent that, the market value of the securities loaned were to increase, and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or each Fund. Upon termination, the borrower will return to each Fund the securities loaned and each Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. Each Fund could experience delays and costs in gaining access to the collateral and the securities may lose value

 

 

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during the delay which could result in potential losses to each Fund. Some of these losses may be indemnified by the lending agent. Each Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Securities lending income on the Statements of Operations. The aggregate value of securities out on loan, if any, is shown on the Statements of Assets and Liabilities.

Note 3. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with the Adviser on behalf of each Fund, pursuant to which the Adviser has overall responsibility for the selection and ongoing monitoring of the Funds’ investments, managing the Funds’ business affairs and providing certain clerical, bookkeeping and other administrative services. Pursuant to that Investment Advisory Agreement, each Fund has agreed to pay the Adviser an annual fee of 0.40% of the Fund’s average daily net assets, except for BuyBack AchieversTM Portfolio and Financial Preferred Portfolio, each of which pay the Adviser an annual fee of 0.50% of the Fund’s average daily net assets.

The Trust also has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Adviser on behalf of each Fund, pursuant to which the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses (excluding interest expenses, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund (except for BuyBack AchieversTM Portfolio and Financial Preferred Portfolio) from exceeding 0.50% of the Fund’s average daily net assets per year (0.60% of the Fund’s average daily net assets per year for the BuyBack AchieversTM Portfolio and Financial Preferred Portfolio) (the “Expense Cap”), through at least August 31, 2017. Offering costs excluded from the Expense Cap for each Fund are: (a) initial legal fees pertaining to the Funds’ Shares offered for sale; (b) initial Securities and Exchange Commission and state registration fees; and (c) initial fees paid to be listed on an exchange. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2017. During its term, the Expense Agreement cannot be terminated or amended to increase the Expense Cap without approval of the Board of Trustees. For each Fund, the Adviser did not waive fees and/or pay Fund expenses during the period under this Expense Cap.

Further, through August 31, 2018, the Adviser has contractually agreed to waive a portion of each Fund’s management fee in an amount equal to 100% of the net advisory fees an affiliate of the Adviser receives that are attributable to certain of the Fund’s investments in money market funds managed by that affiliate (excluding investments of cash collateral from securities lending). The Adviser cannot discontinue this waiver prior to its expiration. This agreement is not subject to recapture by the Adviser.

For the six-month period ended October 31, 2016, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:

 

BuyBack AchieversTM Portfolio    $ 1,213   
Dividend AchieversTM Portfolio      201   
Financial Preferred Portfolio      4,990   
High Yield Equity Dividend AchieversTM Portfolio      633   
International Dividend AchieversTM Portfolio      601   

The Expense Agreement provides that the fees waived or expenses borne by the Adviser are subject to recapture by the Adviser for up to three years from the date the fee was waived or expense was borne by the Adviser, but no recapture payment will be made by a Fund if it would result in the Fund exceeding its Expense Cap as specified above.

For the six-month period ended October 31, 2016, there were no amounts available for potential recapture by the Adviser under the Expense Agreement.

The Trust has entered into a Distribution Agreement with Invesco Distributors, Inc. (the “Distributor”), which serves as the distributor of Creation Units for each Fund. The Distributor does not maintain a secondary market in the Shares. The Funds are not charged any fees pursuant to the Distribution Agreement. The Distributor is an affiliate of the Adviser.

The Adviser has entered into a licensing agreement for each Fund with the following entities (each, a “Licensor”):

 

Fund

   

Licensor

BuyBack AchieversTM Portfolio    Nasdaq, Inc.
Dividend AchieversTM Portfolio    Nasdaq, Inc.
Financial Preferred Portfolio    Wells Fargo & Company
High Yield Equity Dividend AchieversTM Portfolio    Nasdaq, Inc.
International Dividend AchieversTM Portfolio    Nasdaq, Inc.

 

 

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Each Underlying Index name trademark is owned by its respective Licensor. These trademarks have been licensed to the Adviser for use by the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust’s sub-licensing agreement with the Adviser. The Funds are required to pay the sub-licensing fees that are shown on the Statements of Operations. The Funds are not sponsored, endorsed, sold or promoted by the Licensors, and the Licensors make no representation regarding the advisability of investing in any of the Funds.

The Trust has entered into service agreements whereby The Bank of New York Mellon, a wholly-owned subsidiary of The Bank of New York Mellon Corporation, serves as the administrator, custodian, fund accountant and transfer agent for each Fund.

Note 4. Investments in Affiliates

The Adviser is a wholly-owned subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated with the Funds. The table below shows certain Funds’ transactions in, and earnings from, investments in affiliates for the six-month period ended October 31, 2016.

Dividend AchieversTM Portfolio

 

     Value
April 30, 2016		      Purchases
at Cost		      Proceeds
from Sales		      Change in
Unrealized
Appreciation
(Depreciation)		      Realized
Gain (Loss)		      Value
October 31, 2016		      Dividend
Income		  
Invesco Ltd.    $ 558,707       $ 8,319       $ (24,037 )     $ (47,462 )     $ (4,289 )     $ 491,238       $ 10,025   

High Yield Equity Dividend AchieversTM Portfolio

 

     Value
April 30, 2016		      Purchases
at Cost		      Proceeds
from Sales		      Change in
Unrealized
Appreciation
(Depreciation)		      Realized
Gain (Loss)		      Value
October 31, 2016		      Dividend
Income		  
Invesco Ltd.    $ 14,243,668       $ 7,865,979       $ (2,847,303 )     $ (1,510,333 )     $ (20,142 )     $ 17,731,869       $ 294,570   

The 1940 Act defines “affiliated person” to include issuers of which a fund holds 5% or more of the outstanding voting securities. The Fund listed below has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the 1940 Act) of that issuer. The table below shows International Dividend Achievers™ Portfolio’s transactions in, and earnings from, its investment in affiliates for the six-month period ended October 31, 2016.

International Dividend AchieversTM Portfolio

 

     Value
April 30, 2016		      Purchases
at Cost		      Proceeds
from Sales		      Change in
Unrealized
Appreciation		      Realized
Gain (Loss)		      Value
October 31, 2016		      Dividend
Income		  
Teekay Offshore Partners LP*    $ 47,785,546       $ 6,661,775       $ (21,250,347 )     $ 40,126,195       $ (42,232,712 )     $ 31,090,457       $ 457,863   

 

* At October 31, 2016, this security was no longer considered an affiliate.

Note 5. Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

 

  Level 1 — Prices are determined using quoted prices in an active market for identical assets.

 

  Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

 

  Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect a Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

 

 

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As of October 31, 2016, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedules of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

Note 6. Tax Information

The amount and character of income and gains to be distributed are determined in accordance with federal income tax regulations, which may differ from GAAP. Reclassifications are made to the Funds’ capital accounts to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Funds’ fiscal year-end.

Capital loss carryforwards are calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforwards actually available for the Funds to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Funds had capital loss carryforwards as of April 30, 2016, which expire as follows:

 

                          Post-effective/no expiration                
     2017      2018      2019      Short-Term      Long-Term      Total*      Expired  
BuyBack AchieversTM Portfolio    $ 800,254       $ 12,142,749       $ 2,107,645       $ 56,085,445       $ 4,174,890       $ 75,310,983       $ 2,915,680   
Dividend AchieversTM Portfolio      1,025,344         14,632,363         2,339,194         —         —         17,996,901         —   
Financial Preferred Portfolio      9,034,558         7,354,935         —         —         —         16,389,493         3,548,179   
High Yield Equity Dividend AchieversTM Portfolio      81,487,358         44,815,128         2,187,574         1,777,356         355,767         130,623,183         884,585   
International Dividend AchieversTM Portfolio      59,472,841         145,514,837         11,745,409         83,219,280         10,564,557         310,516,924         1,975,339   

 

* Capital loss carryforwards as of the date listed above are reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

Note 7. Investment Transactions

For the six-month period ended October 31, 2016, the cost of securities purchased and proceeds from sales of securities (other than short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, if any) were as follows:

 

     Purchases      Sales  
BuyBack AchieversTM Portfolio    $ 27,012,417       $ 31,052,953   
Dividend AchieversTM Portfolio      5,188,694         4,889,201   
Financial Preferred Portfolio      85,204,551         77,806,525   
High Yield Equity Dividend AchieversTM Portfolio      135,547,400         130,426,309   
International Dividend AchieversTM Portfolio      145,939,056         150,868,668   

For the six-month period ended October 31, 2016, in-kind transactions associated with creations and redemptions were as follows:

 

     Cost of
Securities
Received		      Value of
Securities
Delivered		  
BuyBack AchieversTM Portfolio    $ 18,734,630       $ 389,549,231   
Dividend AchieversTM Portfolio      2,241,135         7,692,958   
Financial Preferred Portfolio      237,743,178         115,921,969   
High Yield Equity Dividend AchieversTM Portfolio      372,647,674         152,780,722   
International Dividend AchieversTM Portfolio      57,482,652         37,730,693   

Gains (losses) on in-kind transactions are generally not considered taxable gains (losses) for federal income tax purposes.

 

 

   32  

 

 

 

At October 31, 2016, the cost of investments on a tax basis includes adjustments for financial reporting purposes, as of the most recently completed federal income tax reporting period-end:

 

     Gross
Unrealized
Appreciation		      Gross
Unrealized
(Depreciation)		      Net
Unrealized
Appreciation
(Depreciation)		      Cost  
BuyBack AchieversTM Portfolio    $ 144,730,764       $ (77,987,971 )     $ 66,742,793       $ 1,264,655,567   
Dividend AchieversTM Portfolio      60,099,867         (7,334,731 )       52,765,136         233,952,449   
Financial Preferred Portfolio      85,392,429         (11,397,542 )       73,994,887         1,714,094,619   
High Yield Equity Dividend AchieversTM Portfolio      70,887,507         (14,672,055 )       56,215,452         1,012,206,589   
International Dividend AchieversTM Portfolio      36,297,389         (71,681,319 )       (35,383,930 )       842,416,059   

Note 8. Trustees’ and Officer’s Fees

Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to the Independent Trustees, any Unaffiliated Trustee, and an Officer of the Trust. The Trustee who is an “interested person” of the Trust does not receive any Trustees’ fees.

The Trust has adopted a deferred compensation plan (the “Plan”). Under the Plan, each Independent Trustee or Unaffiliated Trustee who has executed a Deferred Fee Agreement (a “Participating Trustee”) may defer receipt of all or a portion of his compensation (“Deferral Fees”). Such Deferral Fees are deemed to be invested in select PowerShares Funds. The Deferral Fees payable to the Participating Trustee are valued as of the date such Deferral Fees would have been paid to the Participating Trustee. The value increases with contributions or with increases in the value of the Shares selected, and the value decreases with distributions or with declines in the value of the Shares selected. Obligations under the Plan represent unsecured claims against the general assets of the Funds.

Note 9. Capital

Shares are created and redeemed by each Fund only in Creation Units of 50,000 Shares. Only Authorized Participants are permitted to purchase or redeem Creation Units from the Funds. Such transactions are principally permitted in exchange for Deposit Securities, with a balancing cash component to equate the transaction to the NAV per Share of a Fund of the Trust on the transaction date. However, for all Funds, cash in an amount equivalent to the value of certain securities may be substituted, generally when the securities are not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances.

To the extent that the Funds permit transactions in exchange for Deposit Securities, each Fund may issue Shares in advance of receipt of Deposit Securities subject to various conditions, including a requirement to maintain on deposit with the Trust cash at least equal to 105% of the market value of the missing Deposit Securities. In accordance with the Trust’s Participant Agreement, Creation Units will be issued to an Authorized Participant, notwithstanding the fact that the corresponding Deposit Securities have not been received in part or in whole, in reliance on the undertaking of the Authorized Participant to deliver the missing Deposit Securities as soon as possible, which undertaking shall be secured by the Authorized Participant’s delivery and maintenance of collateral consisting of cash in the form of U.S. dollars in immediately available funds having a value (marked-to-market daily) at least equal to 105%, which the Adviser may change from time to time, of the value of the missing Deposit Securities.

Certain transaction fees may be charged by the Funds for creations and redemptions, which are treated as increases in capital.

Transactions in each Fund’s Shares are disclosed in detail in the Statements of Changes in Net Assets.

Note 10. Indemnifications

Under the Trust’s organizational documents, its officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. Each Independent Trustee and Unaffiliated Trustee is also indemnified against certain liabilities arising out of the performance of his duties to the Trust pursuant to an Indemnification Agreement between such trustee and the Trust. Additionally, in the normal course of business, the Trust enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred. However, based on experience, the Trust believes the risk of loss to be remote.

Note 11. Subsequent Event

Effective December 7, 2016, each Fund’s Shares (except for Financial Preferred Portfolio) were listed and began trading on The NASDAQ Stock Market LLC.

 

 

   33  

 

 

Fees and Expenses

 

As a shareholder of a Fund of the PowerShares Exchange-Traded Fund Trust, you incur advisory fees and other Fund expenses. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended October 31, 2016.

Actual Expenses

The first line in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line in the following table provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed annualized rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs, such as sales charges and brokerage commissions. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, expenses shown in the table do not include the expenses of the underlying funds, which are borne indirectly by a Fund. If transaction costs and indirect expenses were included, your costs would have been higher.

 

    Beginning
Account Value
May 1, 2016		     Ending
Account Value
October 31, 2016		     Annualized
Expense Ratio
Based on the
Number of Days
in the Period		     Expenses Paid
During the
Six-Month Period(1)		  
PowerShares BuyBack AchieversTM Portfolio (PKW)        

Actual

   $ 1,000.00      $ 1,034.03        0.64 %    $ 3.28   

Hypothetical (5% return before expenses)

     1,000.00        1,021.98        0.64        3.26   
PowerShares Dividend AchieversTM Portfolio (PFM)        

Actual

     1,000.00        1,030.84        0.55        2.82   

Hypothetical (5% return before expenses)

     1,000.00        1,022.43        0.55        2.80   
PowerShares Financial Preferred Portfolio (PGF)        

Actual

     1,000.00        1,029.30        0.63        3.22   

Hypothetical (5% return before expenses)

     1,000.00        1,022.03        0.63        3.21   
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY)        

Actual

     1,000.00        1,058.99        0.53        2.75   

Hypothetical (5% return before expenses)

     1,000.00        1,022.53        0.53        2.70   
PowerShares International Dividend AchieversTM Portfolio (PID)        

Actual

     1,000.00        1,000.17        0.58        2.92   

Hypothetical (5% return before expenses)

     1,000.00        1,022.28        0.58        2.96   

 

(1)  Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six-month period ended October 31, 2016. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 184/365.

 

 

   34  

 

Proxy Voting Policies and Procedures

A description of the Trust’s proxy voting policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available, without charge and upon request, by calling (800) 983-0903. This information is also available on the Securities and Exchange Commission’s (“Commission”) website at www.sec.gov.

Information regarding how each Fund voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended June 30, is also available, without charge and upon request, by (i) calling (800) 983-0903; or (ii) accessing the Trust’s Form N-PX on the Commission’s website at www.sec.gov.

Quarterly Portfolios

The Trust files its complete schedule of portfolio holdings for the Funds with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Trust’s Forms N-Q are available on the Commission’s website at www.sec.gov. The Trust’s Forms N-Q may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330.

Frequency Distribution of Discounts and Premiums

A table showing the number of days the market price of each Fund’s shares was greater than the Fund’s net asset value, and the number of days it was less than the Fund’s net asset value (i.e., premium or discount) for the most recently completed calendar year, and the calendar quarters since that year end (or the life of the Fund, if shorter) may be found at the Fund’s website at www.invescopowershares.com.

 

P-PS-SAR-1    LOGO

©2016 Invesco PowerShares Capital Management LLC

3500 Lacey Road, Suite 700

Downers Grove, IL 60515

   
powershares.com    800 983 0903   LOGO   @PowerShares   

LOGO

 

     October 31, 2016

2016 Semi-Annual Report to Shareholders

 

PBE    PowerShares Dynamic Biotechnology & Genome Portfolio
PKB    PowerShares Dynamic Building & Construction Portfolio
PXE    PowerShares Dynamic Energy Exploration & Production Portfolio
PBJ    PowerShares Dynamic Food & Beverage Portfolio
PEJ    PowerShares Dynamic Leisure and Entertainment Portfolio
PBS    PowerShares Dynamic Media Portfolio
PXQ    PowerShares Dynamic Networking Portfolio
PXJ    PowerShares Dynamic Oil & Gas Services Portfolio
PJP    PowerShares Dynamic Pharmaceuticals Portfolio
PMR    PowerShares Dynamic Retail Portfolio
PSI    PowerShares Dynamic Semiconductors Portfolio
PSJ    PowerShares Dynamic Software Portfolio

 

Table of Contents

 

Industry Portfolios   
Schedules of Investments   

PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)

      3   

PowerShares Dynamic Building & Construction Portfolio (PKB)

      4   

PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)

      6   

PowerShares Dynamic Food & Beverage Portfolio (PBJ)

      7   

PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)

      8   

PowerShares Dynamic Media Portfolio (PBS)

      10   

PowerShares Dynamic Networking Portfolio (PXQ)

      12   

PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)

      14   

PowerShares Dynamic Pharmaceuticals Portfolio (PJP)

      15   

PowerShares Dynamic Retail Portfolio (PMR)

      16   

PowerShares Dynamic Semiconductors Portfolio (PSI)

      18   

PowerShares Dynamic Software Portfolio (PSJ)

      19   
Statements of Assets and Liabilities      22   
Statements of Operations      24   
Statements of Changes in Net Assets      26   
Financial Highlights      30   
Notes to Financial Statements      37   
Fees and Expenses      46   

 

 

   2  

 

 

PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Biotechnology      87.2   
Pharmaceuticals      9.8   
Health Care Equipment      3.0   
Money Market Fund Plus Other Assets Less Liabilities      (0.0)   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks—100.0%   
   Biotechnology—87.2%   
  814,255       Achillion Pharmaceuticals, Inc.(b)(c)    $ 5,113,521   
  286,053       Acorda Therapeutics, Inc.(c)      5,063,138   
  99,389       Alexion Pharmaceuticals, Inc.(c)      12,970,264   
  100,975       Alnylam Pharmaceuticals, Inc.(c)      3,594,710   
  75,416       Amgen, Inc.      10,645,723   
  1,003,237       Amicus Therapeutics, Inc.(c)      6,922,335   
  41,838       Biogen, Inc.(c)      11,722,171   
  135,181       BioMarin Pharmaceutical, Inc.(c)      10,884,774   
  256,976       Emergent BioSolutions, Inc.(c)      6,866,399   
  641,851       Exelixis, Inc.(c)      6,797,202   
  160,315       Gilead Sciences, Inc.      11,803,993   
  160,276       Incyte Corp.(c)      13,939,204   
  807,681       Inovio Pharmaceuticals, Inc.(b)(c)      5,225,696   
  467,463       Insys Therapeutics, Inc.(b)(c)      5,053,275   
  230,576       Ionis Pharmaceuticals, Inc.(b)(c)      5,990,364   
  482,938       Lexicon Pharmaceuticals, Inc.(b)(c)      7,161,971   
  550,951       Momenta Pharmaceuticals, Inc.(c)      6,143,104   
  339,438       Myriad Genetics, Inc.(c)      6,690,323   
  143,086       Neurocrine Biosciences, Inc.(c)      6,262,874   
  775,481       OPKO Health, Inc.(b)(c)      7,305,031   
  32,075       Regeneron Pharmaceuticals, Inc.(c)      11,066,517   
  225,817       Repligen Corp.(c)      6,451,592   
  159,222       Seattle Genetics, Inc.(c)      8,231,777   
  56,812       United Therapeutics Corp.(c)      6,821,417   
  133,203       Vertex Pharmaceuticals, Inc.(c)      10,104,780   
     

 

 

  
        198,832,155   
     

 

 

  
   Health Care Equipment—3.0%   
  293,856       Cardiovascular Systems, Inc.(c)      6,885,046   
     

 

 

  
   Pharmaceuticals—9.8%   
  111,383       ANI Pharmaceuticals, Inc.(b)(c)      6,649,565   
  1,284,879       Corcept Therapeutics, Inc.(c)      8,917,060   
  304,514       Dyax Corp.(c)      338,011   
  624,674       Innoviva, Inc.(b)      6,434,142   
     

 

 

  
        22,338,778   
     

 

 

  
   Total Investments
(excluding investments purchased with cash collateral from securities on loan)
(Cost $251,751,973)—100.0%		      228,055,979   
     

 

 

  
Number
of Shares		           Value  
   Investments Purchased with Cash Collateral from Securities on Loan    
     
   Money Market Fund—15.2%   
  34,682,589       Invesco Government & Agency Portfolio—Institutional Class,
0.29%(d)(e)
(Cost $34,682,589)		    $ 34,682,589   
     

 

 

  
   Total Investments
(Cost $286,434,562)—115.2%		      262,738,568   
   Other assets less liabilities—(15.2)%      (34,713,946 ) 
     

 

 

  
   Net Assets—100.0%    $ 228,024,622   
     

 

 

  

Notes to Schedule of Investments:

(a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b) All or a portion of this security was out on loan at October 31, 2016.
(c) Non-income producing security.
(d) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
(e) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2H.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   3  

 

 

PowerShares Dynamic Building & Construction Portfolio (PKB)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Building Products      38.0   
Construction & Engineering      17.3   
Construction Materials      10.4   
Industrial Machinery      8.3   
Forest Products      5.1   
Home Improvement Retail      4.8   
Home Furnishings      4.7   
Multi-Utilities      3.2   
Heavy Electrical Equipment      2.8   
Homebuilding      2.7   
Distributors      2.7   
Money Market Fund Plus Other Assets Less Liabilities      (0.0)   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks—100.0%   
   Building Products—38.0%   
  90,254       A.O. Smith Corp.    $ 4,076,773   
  103,206       Continental Building Products, Inc.(b)      2,110,563   
  67,855       Fortune Brands Home & Security, Inc.      3,706,919   
  60,426       Gibraltar Industries, Inc.(b)      2,350,571   
  67,596       Insteel Industries, Inc.      1,818,332   
  27,022       Lennox International, Inc.      3,942,239   
  136,609       NCI Building Systems, Inc.(b)      1,967,170   
  43,378       Owens Corning      2,115,979   
  168,887       Ply Gem Holdings, Inc.(b)      2,313,752   
  37,880       Trex Co., Inc.(b)      2,038,323   
  21,600       Universal Forest Products, Inc.      1,857,384   
  83,638       USG Corp.(b)      2,106,005   
     

 

 

  
        30,404,010   
     

 

 

  
   Construction & Engineering—17.3%   
  73,057       AECOM(b)      2,034,637   
  40,933       EMCOR Group, Inc.      2,474,809   
  43,250       Jacobs Engineering Group, Inc.(b)      2,230,835   
  155,594       KBR, Inc.      2,304,347   
  77,432       MasTec, Inc.(b)      2,210,684   
  89,658       Quanta Services, Inc.(b)      2,577,668   
     

 

 

  
        13,832,980   
     

 

 

  
   Construction Materials—10.4%   
  22,542       Martin Marietta Materials, Inc.      4,178,836   
  36,662       Vulcan Materials Co.      4,150,138   
     

 

 

  
        8,328,974   
     

 

 

  
Number
of Shares		           Value  
   Common Stocks (continued)   
   Distributors—2.7%   
  23,008       Pool Corp.    $ 2,130,081   
     

 

 

  
   Forest Products—5.1%   
  94,761       Boise Cascade Co.(b)      1,824,149   
  122,898       Louisiana-Pacific Corp.(b)      2,255,179   
     

 

 

  
        4,079,328   
     

 

 

  
   Heavy Electrical Equipment—2.8%   
  143,442       Babcock & Wilcox Enterprises, Inc.(b)      2,257,777   
     

 

 

  
   Home Furnishings—4.7%   
  20,414       Mohawk Industries, Inc.(b)      3,762,300   
     

 

 

  
   Home Improvement Retail—4.8%   
  31,830       Home Depot, Inc. (The)      3,883,578   
     

 

 

  
   Homebuilding—2.7%   
  147,675       KB Home      2,147,194   
     

 

 

  
   Industrial Machinery—8.3%   
  63,578       Ingersoll-Rand PLC      4,278,164   
  122,641       SPX Corp.(b)      2,331,405   
     

 

 

  
        6,609,569   
     

 

 

  
   Multi-Utilities—3.2%   
  98,408       MDU Resources Group, Inc.      2,579,274   
     

 

 

  
   Total Common Stocks
(Cost $79,701,434)		      80,015,065   
     

 

 

  
     
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   4  

 

 

PowerShares Dynamic Building & Construction Portfolio (PKB) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Money Market Fund—0.1%   
  77,122       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(c)
(Cost $77,122)		    $ 77,122   
     

 

 

  
   Total Investments
(Cost $79,778,556)—100.1%		      80,092,187   
   Other assets less liabilities—(0.1)%      (80,473 ) 
     

 

 

  
   Net Assets—100.0%    $ 80,011,714   
     

 

 

  

Notes to Schedule of Investments:

(a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b) Non-income producing security.
(c) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   5  

 

 

PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Oil & Gas Exploration & Production      56.2   
Oil & Gas Refining & Marketing      38.9   
Integrated Oil & Gas      4.8   
Money Market Funds Plus Other Assets Less Liabilities      0.1   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests—99.9%   
   Integrated Oil & Gas—4.8%   
  39,978       Occidental Petroleum Corp.    $ 2,914,796   
     

 

 

  
   Oil & Gas Exploration & Production—56.2%   
  56,080       Anadarko Petroleum Corp.      3,333,395   
  62,969       Antero Resources Corp.(b)      1,666,789   
  66,417       Cabot Oil & Gas Corp.      1,386,787   
  12,778       Concho Resources, Inc.(b)      1,622,039   
  72,295       ConocoPhillips      3,141,218   
  34,534       Continental Resources, Inc.(b)      1,689,058   
  17,525       Diamondback Energy, Inc.(b)      1,599,857   
  29,843       Energen Corp.      1,496,030   
  34,268       EOG Resources, Inc.      3,098,513   
  23,571       EQT Corp.      1,555,686   
  47,202       Noble Energy, Inc.      1,627,053   
  176,832       Oasis Petroleum, Inc.(b)      1,854,968   
  24,816       PDC Energy, Inc.(b)      1,521,965   
  17,144       Pioneer Natural Resources Co.      3,069,119   
  85,590       QEP Resources, Inc.      1,375,431   
  42,048       Range Resources Corp.      1,420,802   
  63,278       Rice Energy, Inc.(b)      1,397,811   
  119,729       Southwestern Energy Co.(b)      1,243,984   
     

 

 

  
        34,100,505   
     

 

 

  
   Oil & Gas Refining & Marketing—38.9%   
  159,299       Alon USA Partners LP(c)      1,311,031   
  125,706       CVR Energy, Inc.(c)      1,666,862   
  259,934       CVR Refining LP(c)      1,884,521   
  99,176       Delek US Holdings, Inc.      1,676,074   
  65,692       HollyFrontier Corp.      1,639,015   
  73,813       Marathon Petroleum Corp.      3,217,509   
  75,990       PBF Energy, Inc., Class A      1,656,582   
  39,114       Phillips 66      3,174,101   
  22,766       Tesoro Corp.      1,934,427   
  56,211       Valero Energy Corp.      3,329,940   
  72,967       Western Refining, Inc.      2,105,098   
     

 

 

  
        23,595,160   
     

 

 

  
   Total Common Stocks and Other Equity Interests
(Cost $62,779,317)		      60,610,461   
     

 

 

  
     
Number
of Shares		           Value  
   Money Market Fund—0.1%   
  73,787       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(d)
(Cost $73,787)		    $ 73,787   
     

 

 

  
   Total Investments
(excluding investments purchased with cash collateral from securities on loan)
(Cost $62,853,104)—100.0%		      60,684,248   
     

 

 

  
     
   Investments Purchased with Cash Collateral from Securities on Loan    
     
   Money Market Fund—5.4%   
  3,271,550       Invesco Government & Agency Portfolio—Institutional Class, 0.29%(d)(e)
(Cost $3,271,550)		      3,271,550   
     

 

 

  
   Total Investments
(Cost $66,124,654)—105.4%		      63,955,798   
   Other assets less liabilities—(5.4)%      (3,296,495 ) 
     

 

 

  
   Net Assets—100.0%    $ 60,659,303   
     

 

 

  

Notes to Schedule of Investments:

(a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b) Non-income producing security.
(c) All or a portion of this security was out on loan at October 31, 2016.
(d) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
(e) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2H.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   6  

 

 

PowerShares Dynamic Food & Beverage Portfolio (PBJ)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Packaged Foods & Meats      54.6   
Agricultural Products      11.3   
Soft Drinks      10.1   
Food Distributors      9.7   
Restaurants      6.0   
Distillers & Vintners      5.2   
Food Retail      3.0   
Money Market Fund Plus Other Assets Less Liabilities      0.1   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks—99.9%   
   Agricultural Products—11.3%   
  100,053       Archer-Daniels-Midland Co.    $ 4,359,309   
  299,882       Darling Ingredients, Inc.(b)      4,078,395   
  72,336       Fresh Del Monte Produce, Inc.      4,365,478   
  31,250       Ingredion, Inc.      4,099,063   
     

 

 

  
        16,902,245   
     

 

 

  
   Distillers & Vintners—5.2%   
  46,836       Constellation Brands, Inc., Class A      7,827,232   
     

 

 

  
   Food Distributors—9.7%   
  160,451       Performance Food Group Co.(b)      3,850,824   
  129,313       SpartanNash Co.      3,620,764   
  148,815       Sysco Corp.      7,160,978   
     

 

 

  
        14,632,566   
     

 

 

  
   Food Retail—3.0%   
  81,842       Weis Markets, Inc.      4,552,871   
     

 

 

  
   Packaged Foods & Meats—54.6%   
  70,900       Calavo Growers, Inc.      4,193,735   
  69,662       Campbell Soup Co.      3,785,433   
  92,431       ConAgra Foods, Inc.      4,453,326   
  253,172       Dean Foods Co.      4,622,921   
  109,355       General Mills, Inc.      6,777,823   
  30,205       JM Smucker Co. (The)      3,966,219   
  94,262       Kellogg Co.      7,081,904   
  87,815       Kraft Heinz Co. (The)      7,811,144   
  31,627       Lancaster Colony Corp.      4,132,067   
  41,899       McCormick & Co., Inc.      4,016,857   
  51,151       Mead Johnson Nutrition Co.      3,824,560   
  181,219       Mondelez International, Inc., Class A      8,143,982   
  50,014       Post Holdings, Inc.(b)      3,812,567   
  43,863       Sanderson Farms, Inc.      3,946,793   
  112,062       Tootsie Roll Industries, Inc., Class A      3,972,598   
  103,447       Tyson Foods, Inc., Class A      7,329,220   
     

 

 

  
        81,871,149   
     

 

 

  
Number
of Shares		           Value  
   Common Stocks (continued)   
   Restaurants—6.0%   
  28,344       Domino’s Pizza, Inc.    $ 4,796,938   
  56,524       Papa John’s International, Inc.      4,264,736   
     

 

 

  
        9,061,674   
     

 

 

  
   Soft Drinks—10.1%   
  45,534       Dr Pepper Snapple Group, Inc.      3,997,430   
  49,581       Monster Beverage Corp.(b)      7,156,521   
  85,512       National Beverage Corp.(b)      4,039,587   
     

 

 

  
        15,193,538   
     

 

 

  
   Total Common Stocks
(Cost $142,415,738)		      150,041,275   
     

 

 

  
     
   Money Market Fund—0.1%   
  108,556       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(c)
(Cost $108,556)		      108,556   
     

 

 

  
   Total Investments
(Cost $142,524,294)—100.0%		      150,149,831   
   Other assets less liabilities—(0.0)%      (74,258 ) 
     

 

 

  
   Net Assets—100.0%    $ 150,075,573   
     

 

 

  

Notes to Schedule of Investments:

(a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b) Non-income producing security.
(c) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   7  

 

 

PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Airlines      34.4   
Restaurants      28.8   
Casinos & Gaming      9.4   
Leisure Facilities      8.7   
Movies & Entertainment      8.4   
Cable & Satellite      2.8   
Broadcasting      2.8   
Food Distributors      2.5   
Hotels, Resorts & Cruise Lines      2.4   
Money Market Fund Plus Other Assets Less Liabilities      (0.2)   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks—100.2%   
   Airlines—34.4%   
  40,422       Alaska Air Group, Inc.    $ 2,919,277   
  137,920       American Airlines Group, Inc.      5,599,552   
  138,866       Delta Air Lines, Inc.      5,800,433   
  60,171       Hawaiian Holdings, Inc.(b)      2,709,199   
  172,546       JetBlue Airways Corp.(b)      3,016,104   
  98,730       SkyWest, Inc.      2,976,709   
  138,032       Southwest Airlines Co.      5,528,182   
  106,556       United Continental Holdings, Inc.(b)      5,991,644   
     

 

 

  
        34,541,100   
     

 

 

  
   Broadcasting—2.8%   
  43,108       Scripps Networks Interactive, Inc., Class A      2,774,431   
     

 

 

  
   Cable & Satellite—2.8%   
  88,482       Starz, Class A(b)      2,783,644   
     

 

 

  
   Casinos & Gaming—9.4%   
  230,013       Caesars Acquisition Co., Class A(b)      2,679,651   
  121,054       International Game Technology PLC      3,476,671   
  153,808       Isle of Capri Casinos, Inc.(b)      3,229,968   
     

 

 

  
        9,386,290   
     

 

 

  
   Food Distributors—2.5%   
  104,087       Performance Food Group Co.(b)      2,498,088   
     

 

 

  
   Hotels, Resorts & Cruise Lines—2.4%   
  236,512       La Quinta Holdings, Inc.(b)      2,367,485   
     

 

 

  
   Leisure Facilities—8.7%   
  177,879       Intrawest Resorts Holdings, Inc.(b)      2,918,994   
  55,240       Six Flags Entertainment Corp.      3,074,106   
  17,245       Vail Resorts, Inc.      2,749,543   
     

 

 

  
        8,742,643   
     

 

 

  
Number
of Shares		           Value  
   Common Stocks (continued)   
   Movies & Entertainment—8.4%   
  86,570       Carmike Cinemas, Inc.(b)    $ 2,826,511   
  63,455       Time Warner, Inc.      5,646,860   
     

 

 

  
        8,473,371   
     

 

 

  
   Restaurants—28.8%   
  73,765       Aramark      2,746,271   
  52,479       Cheesecake Factory, Inc. (The)      2,791,358   
  60,979       Dave & Buster’s Entertainment, Inc.(b)      2,521,482   
  18,389       Domino’s Pizza, Inc.      3,112,154   
  27,927       Jack in the Box, Inc.      2,617,598   
  43,873       McDonald’s Corp.      4,938,783   
  36,664       Papa John’s International, Inc.      2,766,299   
  61,467       Texas Roadhouse, Inc.      2,490,643   
  56,309       Yum! Brands, Inc.      3,494,671   
  23,077       Yum! Brands, Inc.-When Issued      1,425,928   
     

 

 

  
        28,905,187   
     

 

 

  
   Total Common Stocks
(Cost $99,018,602)		      100,472,239   
     

 

 

  
     
   Money Market Fund—0.0%   
  42,561       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(c)
(Cost $42,561)		      42,561   
     

 

 

  
   Total Investments
(Cost $99,061,163)—100.2%		      100,514,800   
   Other assets less liabilities—(0.2)%      (161,363 ) 
     

 

 

  
   Net Assets—100.0%    $ 100,353,437   
     

 

 

  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   8  

 

 

PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ) (continued)

October 31, 2016

(Unaudited)

 

Notes to Schedule of Investments:    

(a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b) Non-income producing security.
(c) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   9  

 

 

PowerShares Dynamic Media Portfolio (PBS)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Internet Software & Services      28.8   
Cable & Satellite      19.0   
Broadcasting      16.1   
Advertising      10.3   
Movies & Entertainment      8.2   
Publishing      7.1   
IT Consulting & Other Services      5.2   
Diversified Support Services      3.1   
Data Processing & Outsourced Services      2.2   
Money Market Fund Plus Other Assets Less Liabilities      (0.0)   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks—100.0%   
   Advertising—10.3%   
  341,981       Clear Channel Outdoor Holdings, Inc., Class A    $ 1,966,391   
  98,931       Interpublic Group of Cos., Inc. (The)      2,215,065   
  150,041       National CineMedia, Inc.      2,081,069   
  26,709       Omnicom Group, Inc.      2,131,912   
     

 

 

  
        8,394,437   
     

 

 

  
   Broadcasting—16.1%   
  79,932       CBS Corp., Class B      4,525,750   
  87,114       Discovery Communications, Inc., Class A(b)      2,274,546   
  42,730       Nexstar Broadcasting Group, Inc., Class A      2,085,224   
  35,169       Scripps Networks Interactive, Inc., Class A      2,263,477   
  58,325       Tribune Media Co., Class A      1,901,395   
     

 

 

  
        13,050,392   
     

 

 

  
   Cable & Satellite—19.0%   
  16,390       Charter Communications, Inc.,
Class A(b)		      4,095,697   
  83,807       DISH Network Corp., Class A(b)      4,907,738   
  995,585       Sirius XM Holdings, Inc.(b)      4,151,589   
  72,187       Starz, Class A(b)      2,271,003   
     

 

 

  
        15,426,027   
     

 

 

  
   Data Processing & Outsourced Services—2.2%   
  18,667       DST Systems, Inc.      1,795,019   
     

 

 

  
   Diversified Support Services—3.1%   
  61,845       Viad Corp.      2,566,567   
     

 

 

  
   Internet Software & Services—28.8%   
  5,221       Alphabet, Inc., Class A(b)      4,228,488   
  293,060       Bankrate, Inc.(b)      2,285,868   
  10,901       CoStar Group, Inc.(b)      2,039,795   
  33,349       Facebook, Inc., Class A(b)      4,368,386   
  38,777       Shutterstock, Inc.(b)      2,287,455   
Number
of Shares		           Value  
   Common Stocks (continued)   
   Internet Software & Services (continued)   
  43,880       WebMD Health Corp.(b)    $ 2,155,824   
  98,302       Yahoo!, Inc.(b)      4,084,448   
  60,501       Yelp, Inc., Class A(b)      1,975,963   
     

 

 

  
        23,426,227   
     

 

 

  
   IT Consulting & Other Services—5.2%   
  87,588       Acxiom Corp.(b)      2,063,573   
  24,814       Gartner, Inc.(b)      2,134,997   
     

 

 

  
        4,198,570   
     

 

 

  
   Movies & Entertainment—8.2%   
  51,768       Time Warner, Inc.      4,606,834   
  54,424       Viacom, Inc., Class B      2,044,166   
     

 

 

  
        6,651,000   
     

 

 

  
   Publishing—7.1%   
  42,030       Meredith Corp.      1,906,060   
  172,298       New York Times Co. (The), Class A      1,878,048   
  162,248       News Corp., Class A      1,966,446   
     

 

 

  
        5,750,554   
     

 

 

  
   Total Common Stocks
(Cost $80,099,617)		      81,258,793   
     

 

 

  
     
   Money Market Fund—0.1%   
  76,274       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(c)
(Cost $76,274)		      76,274   
     

 

 

  
   Total Investments
(Cost $80,175,891)—100.1%		      81,335,067   
   Other assets less liabilities—(0.1)%      (109,517 ) 
     

 

 

  
   Net Assets—100.0%    $ 81,225,550   
     

 

 

  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   10  

 

 

PowerShares Dynamic Media Portfolio (PBS) (continued)

October 31, 2016

(Unaudited)

 

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  Non-income producing security.
(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   11  

 

 

PowerShares Dynamic Networking Portfolio (PXQ)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Communications Equipment      45.8   
Systems Software      26.7   
Semiconductors      9.7   
Electronic Components      5.3   
Technology Hardware, Storage & Peripherals      5.2   
Application Software      4.7   
Consumer Electronics      2.6   
Money Market Funds Plus Other Assets Less Liabilities      (0.0)   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks—100.0%   
   Application Software—4.7%   
  17,147       Citrix Systems, Inc.(b)    $ 1,454,066   
     

 

 

  
   Communications Equipment—45.8%   
  44,922       ADTRAN, Inc.      815,334   
  10,479       Arista Networks, Inc.(b)      888,095   
  30,739       ARRIS International PLC(b)      853,930   
  48,377       Cisco Systems, Inc.      1,484,206   
  27,734       CommScope Holding, Inc.(b)      847,274   
  6,638       F5 Networks, Inc.(b)      917,438   
  40,295       Finisar Corp.(b)      1,103,277   
  11,851       InterDigital, Inc.      837,273   
  24,378       Lumentum Holdings, Inc.(b)      819,101   
  10,698       Motorola Solutions, Inc.      776,461   
  14,417       NETGEAR, Inc.(b)      728,059   
  111,575       Oclaro, Inc.(b)      815,613   
  16,537       Plantronics, Inc.      855,128   
  15,973       Ubiquiti Networks, Inc.(b)      837,464   
  11,019       ViaSat, Inc.(b)      778,603   
  106,813       Viavi Solutions, Inc.(b)      760,509   
     

 

 

  
        14,117,765   
     

 

 

  
   Consumer Electronics—2.6%   
  16,343       Garmin Ltd.      790,348   
     

 

 

  
   Electronic Components—5.3%   
  24,637       Amphenol Corp., Class A      1,624,317   
     

 

 

  
   Semiconductors—9.7%   
  8,163       Acacia Communications, Inc.(b)(c)      568,879   
  55,376       NeoPhotonics Corp.(b)      775,264   
  24,165       QUALCOMM, Inc.      1,660,619   
     

 

 

  
        3,004,762   
     

 

 

  
   Systems Software—26.7%   
  84,596       A10 Networks, Inc.(b)      648,005   
  44,639       CA, Inc.      1,372,203   
  19,933       Check Point Software Technologies Ltd. (Israel)(b)      1,685,535   
Number
of Shares		           Value  
   Common Stocks (continued)   
   Systems Software (continued)   
  18,434       Gigamon, Inc.(b)    $ 1,019,400   
  40,814       Infoblox, Inc.(b)      1,081,571   
  10,793       Proofpoint, Inc.(b)      845,955   
  20,310       VMware, Inc., Class A(b)      1,596,366   
     

 

 

  
        8,249,035   
     

 

 

  
   Technology Hardware, Storage & Peripherals—5.2%   
  14,071       Apple, Inc.      1,597,621   
     

 

 

  
   Total Common Stocks
(Cost $28,441,538)		      30,837,914   
     

 

 

  
     
   Money Market Fund—0.2%   
  46,381       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(d)
(Cost $46,381)		      46,381   
     

 

 

  
   Total Investments
(excluding investments purchased with cash collateral from securities on loan)
(Cost $28,487,919)—100.2%		      30,884,295   
     

 

 

  
     
   Investments Purchased with Cash Collateral from Securities on Loan    
     
   Money Market Fund—1.4%   
  445,300       Invesco Government & Agency Portfolio—Institutional Class, 0.29%(d)(e)
(Cost $445,300)		      445,300   
     

 

 

  
   Total Investments
(Cost $28,933,219)—101.6%		      31,329,595   
   Other assets less liabilities—(1.6)%      (498,923 ) 
     

 

 

  
   Net Assets—100.0%    $ 30,830,672   
     

 

 

  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   12  

 

 

PowerShares Dynamic Networking Portfolio (PXQ) (continued)

October 31, 2016

(Unaudited)

 

Notes to Schedule of Investments:

(a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b) Non-income producing security.
(c) All or a portion of this security was out on loan at October 31, 2016.
(d) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
(e) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2H.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   13  

 

 

PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Oil & Gas Equipment & Services      63.5   
Oil & Gas Drilling      29.0   
Oil & Gas Storage & Transportation      7.5   
Money Market Funds Plus Other Assets Less Liabilities      (0.0)   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests—100.0%    
   Oil & Gas Drilling—29.0%   
  58,136       Diamond Offshore Drilling, Inc.    $ 958,663   
  138,615       Ensco PLC, Class A      1,083,969   
  32,106       Helmerich & Payne, Inc.(b)      2,026,210   
  109,099       Nabors Industries Ltd.      1,298,278   
  184,586       Noble Corp. PLC (United Kingdom)      911,855   
  52,841       Patterson-UTI Energy, Inc.      1,187,866   
  84,602       Rowan Cos. PLC, Class A      1,122,668   
  420,093       Seadrill Ltd. (United Kingdom)(c)      894,798   
  199,617       Transocean Ltd.(b)(c)      1,918,319   
     

 

 

  
        11,402,626   
     

 

 

  
   Oil & Gas Equipment & Services—63.5%   
  76,943       Archrock Partners LP      1,110,287   
  95,343       Archrock, Inc.      1,105,979   
  38,919       Baker Hughes, Inc.      2,156,113   
  17,115       Core Laboratories NV      1,659,642   
  18,970       Dril-Quip, Inc.(c)      901,075   
  70,457       FMC Technologies, Inc.(c)      2,273,647   
  61,049       Forum Energy Technologies, Inc.(c)      1,098,882   
  93,394       Frank’s International NV(b)      1,050,682   
  45,101       Halliburton Co.      2,074,646   
  144,269       Helix Energy Solutions Group, Inc.(c)      1,258,026   
  212,078       McDermott International, Inc.(c)      1,090,081   
  57,106       National Oilwell Varco, Inc.      1,833,103   
  147,570       Newpark Resources, Inc.(c)      929,691   
  34,019       Oil States International, Inc.(c)      995,056   
  70,015       RPC, Inc.(b)(c)      1,209,159   
  24,713       Schlumberger Ltd.      1,933,298   
  63,196       Superior Energy Services, Inc.      894,855   
  70,738       USA Compression Partners LP      1,349,681   
     

 

 

  
        24,923,903   
     

 

 

  
   Oil & Gas Storage & Transportation—7.5%   
  101,900       Overseas Shipholding Group, Inc., Class A      892,644   
  221,057       Scorpio Tankers, Inc. (Monaco)      846,649   
  203,045       Teekay Offshore Partners LP(b)      1,214,209   
     

 

 

  
        2,953,502   
     

 

 

  
   Total Common Stocks and Other Equity Interests
(Cost $45,584,168)		      39,280,031   
     

 

 

  
Number
of Shares		           Value  
   Money Market Fund—0.2%   
  68,989       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(d)
(Cost $68,989)		    $ 68,989   
     

 

 

  
   Total Investments
(excluding investments purchased with cash collateral from securities on loan)
(Cost $45,653,157)—100.2%		      39,349,020   
     

 

 

  
     
   Investments Purchased with Cash Collateral from Securities on Loan    
     
   Money Market Fund—11.2%   
  4,407,925       Invesco Government & Agency Portfolio—Institutional Class, 0.29%(d)(e)
(Cost $4,407,925)		      4,407,925   
     

 

 

  
   Total Investments
(Cost $50,061,082)—111.4%		      43,756,945   
   Other assets less liabilities—(11.4)%      (4,479,276 ) 
     

 

 

  
   Net Assets—100.0%    $ 39,277,669   
     

 

 

  

Notes to Schedule of Investments:

(a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b) All or a portion of this security was out on loan at October 31, 2016.
(c) Non-income producing security.
(d) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
(e) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2H.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   14  

 

 

PowerShares Dynamic Pharmaceuticals Portfolio (PJP)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Pharmaceuticals      62.9   
Biotechnology      28.3   
Health Care Equipment      8.8   
Money Market Funds Plus Other Assets Less Liabilities      (0.0)   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks—100.0%   
   Biotechnology—28.3%   
  301,070       Amgen, Inc.    $ 42,499,041   
  133,625       Biogen, Inc.(b)      37,439,052   
  474,943       Celgene Corp.(b)      48,529,676   
  640,004       Gilead Sciences, Inc.      47,123,494   
  2,127,742       Heron Therapeutics, Inc.(b)(c)(d)      31,596,969   
  395,578       Ligand Pharmaceuticals, Inc.(b)(c)      37,868,682   
  5,968,213       Novavax, Inc.(b)(c)      9,071,684   
     

 

 

  
        254,128,598   
     

 

 

  
   Health Care Equipment—8.8%   
  957,081       Abbott Laboratories      37,555,859   
  870,524       Baxter International, Inc.      41,428,237   
     

 

 

  
        78,984,096   
     

 

 

  
   Pharmaceuticals—62.9%   
  1,533,911       Akorn, Inc.(b)      36,737,169   
  216,885       Allergan PLC(b)      45,315,952   
  872,223       Bristol-Myers Squibb Co.      44,404,873   
  2,073,926       Depomed, Inc.(b)      46,372,985   
  525,592       Eli Lilly & Co.      38,809,713   
  1,720,584       Impax Laboratories, Inc.(b)      34,583,738   
  432,255       Johnson & Johnson      50,137,258   
  1,177,192       Lannett Co., Inc.(b)(c)      25,780,505   
  1,056,475       Medicines Co. (The)(b)(c)      34,810,851   
  822,403       Merck & Co., Inc.      48,291,504   
  956,863       Mylan NV(b)      34,925,500   
  463,402       Perrigo Co. PLC      38,550,412   
  1,474,035       Pfizer, Inc.      46,741,650   
  853,487       Prestige Brands Holdings, Inc.(b)      38,645,891   
     

 

 

  
        564,108,001   
     

 

 

  
   Total Common Stocks
(Cost $1,078,722,874)		      897,220,695   
     

 

 

  
     
   Money Market Fund—0.0%   
  181,808       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(e)
(Cost $181,808)		      181,808   
     

 

 

  
   Total Investments
(excluding investments purchased with cash collateral from securities on loan)
(Cost $1,078,904,682)—100.0%		      897,402,503   
     

 

 

  
Number
of Shares		           Value  
   Investments Purchased with Cash Collateral from Securities on Loan    
     
   Money Market Fund—8.3%   
  74,035,330       Invesco Government & Agency Portfolio—Institutional Class, 0.29%(e)(f)
(Cost $74,035,330)		    $ 74,035,330   
     

 

 

  
   Total Investments
(Cost $1,152,940,012)—108.3%		      971,437,833   
   Other assets less liabilities—(8.3)%      (74,220,034 ) 
     

 

 

  
   Net Assets—100.0%    $ 897,217,799   
     

 

 

  

Notes to Schedule of Investments:

(a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b) Non-income producing security.
(c) All or a portion of this security was out on loan at October 31, 2016.
(d) Affiliated company. See Note 4.
(e) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
(f) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2H.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   15  

 

 

PowerShares Dynamic Retail Portfolio (PMR)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Apparel Retail      26.6   
Food Retail      18.5   
Hypermarkets & Super Centers      13.1   
Specialty Stores      10.4   
Drug Retail      10.2   
Diversified Support Services      2.9   
Homefurnishing Retail      2.9   
Computer & Electronics Retail      2.9   
Internet & Direct Marketing Retail      2.7   
Distributors      2.6   
Specialized Consumer Services      2.6   
General Merchandise Stores      2.4   
Forest Products      2.2   
Money Market Fund Plus Other Assets Less Liabilities      0.0   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks—100.0%   
   Apparel Retail—26.6%   
  34,858       American Eagle Outfitters, Inc.    $ 593,980   
  7,997       Burlington Stores, Inc.(b)      599,295   
  55,046       Chico’s FAS, Inc.      642,387   
  7,642       Children’s Place, Inc. (The)      580,410   
  24,530       Gap, Inc. (The)      676,783   
  18,717       Ross Stores, Inc.      1,170,561   
  15,059       TJX Cos., Inc. (The)      1,110,601   
  17,601       Urban Outfitters, Inc.(b)      588,754   
     

 

 

  
        5,962,771   
     

 

 

  
   Computer & Electronics Retail—2.9%   
  16,384       Best Buy Co., Inc.      637,501   
     

 

 

  
   Distributors—2.6%   
  6,335       Pool Corp.      586,494   
     

 

 

  
   Diversified Support Services—2.9%   
  12,403       Copart, Inc.(b)      650,785   
     

 

 

  
   Drug Retail—10.2%   
  12,654       CVS Health Corp.      1,064,201   
  14,802       Walgreens Boots Alliance, Inc.      1,224,570   
     

 

 

  
        2,288,771   
     

 

 

  
   Food Retail—18.5%   
  36,227       Kroger Co. (The)      1,122,312   
  49,795       Smart & Final Stores, Inc.(b)      597,540   
  27,877       Sprouts Farmers Market, Inc.(b)      617,476   
  120,324       SUPERVALU, Inc.(b)      516,190   
  12,442       Weis Markets, Inc.      692,148   
Number
of Shares		           Value  
   Common Stocks (continued)   
   Food Retail (continued)   
  20,882       Whole Foods Market, Inc.    $ 590,752   
     

 

 

  
        4,136,418   
     

 

 

  
   Forest Products—2.2%   
  26,092       Boise Cascade Co.(b)      502,271   
     

 

 

  
   General Merchandise Stores—2.4%   
  12,228       Big Lots, Inc.      530,695   
     

 

 

  
   Homefurnishing Retail—2.9%   
  25,821       Aaron’s, Inc.      638,037   
     

 

 

  
   Hypermarkets & Super Centers—13.1%   
  7,199       Costco Wholesale Corp.      1,064,516   
  7,636       PriceSmart, Inc.      694,494   
  16,664       Wal-Mart Stores, Inc.      1,166,814   
     

 

 

  
        2,925,824   
     

 

 

  
   Internet & Direct Marketing Retail—2.7%   
  22,078       Duluth Holdings, Inc., Class B(b)      599,418   
     

 

 

  
   Specialized Consumer Services—2.6%   
  16,273       Sotheby’s      583,875   
     

 

 

  
   Specialty Stores—10.4%   
  11,024       Dick’s Sporting Goods, Inc.      613,486   
  16,924       Hibbett Sports, Inc.(b)      657,497   
  4,372       Ulta Salon, Cosmetics & Fragrance, Inc.(b)      1,063,883   
     

 

 

  
        2,334,866   
     

 

 

  
   Total Common Stocks
(Cost $23,436,373)		      22,377,726   
     

 

 

  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   16  

 

 

PowerShares Dynamic Retail Portfolio (PMR) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Money Market Fund—0.2%   
  48,271       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(c)
(Cost $48,271)		    $ 48,271   
     

 

 

  
   Total Investments
(Cost $23,484,644)—100.2%		      22,425,997   
   Other assets less liabilities—(0.2)%      (44,216 ) 
     

 

 

  
   Net Assets—100.0%    $ 22,381,781   
     

 

 

  

Notes to Schedule of Investments:

(a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b) Non-income producing security.
(c) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   17  

 

 

PowerShares Dynamic Semiconductors Portfolio (PSI)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Semiconductors      65.5   
Semiconductor Equipment      34.6   
Money Market Fund Plus Other Assets Less Liabilities      (0.1)   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks—100.1%   
   Semiconductor Equipment—34.6%   
  63,549       Advanced Energy Industries, Inc.(b)    $ 3,031,287   
  306,156       Amkor Technology, Inc.(b)      2,838,066   
  172,836       Applied Materials, Inc.      5,026,071   
  161,476       Entegris, Inc.(b)      2,567,468   
  41,534       KLA-Tencor Corp.      3,119,619   
  220,959       Kulicke & Soffa Industries, Inc. (Singapore)(b)      2,925,497   
  54,848       Lam Research Corp.      5,312,577   
  57,797       MKS Instruments, Inc.      2,915,859   
  298,950       Photronics, Inc.(b)      2,899,815   
  133,557       Teradyne, Inc.      3,110,543   
  109,966       Ultratech, Inc.(b)      2,341,176   
     

 

 

  
        36,087,978   
     

 

 

  
   Semiconductors—65.5%   
  374,450       Advanced Micro Devices, Inc.(b)      2,707,273   
  81,705       Analog Devices, Inc.      5,237,291   
  29,113       Broadcom Ltd. (Singapore)      4,957,362   
  89,964       CEVA, Inc.(b)      2,703,418   
  54,348       Cirrus Logic, Inc.(b)      2,933,705   
  66,376       Inphi Corp.(b)      2,462,550   
  146,044       Intel Corp.      5,092,554   
  148,378       Intersil Corp., Class A      3,276,186   
  47,816       Linear Technology Corp.      2,871,829   
  68,323       Maxim Integrated Products, Inc.      2,707,640   
  151,008       MaxLinear, Inc., Class A(b)      2,825,360   
  45,718       Microchip Technology, Inc.      2,768,225   
  83,281       NVIDIA Corp.      5,926,276   
  47,514       Power Integrations, Inc.      3,062,277   
  81,816       QUALCOMM, Inc.      5,622,396   
  105,712       Semtech Corp.(b)      2,558,230   
  48,823       Silicon Laboratories, Inc.(b)      2,926,939   
  73,394       Texas Instruments, Inc.      5,199,965   
  51,677       Xilinx, Inc.      2,628,809   
     

 

 

  
        68,468,285   
     

 

 

  
   Total Common Stocks
(Cost $93,242,891)		      104,556,263   
     

 

 

  
     
Number
of Shares		           Value  
   Money Market Fund—0.0%   
  41,207       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(c)
(Cost $41,207)		    $ 41,207   
     

 

 

  
   Total Investments
(Cost $93,284,098)—100.1%		      104,597,470   
   Other assets less liabilities—(0.1)%      (114,157 ) 
     

 

 

  
   Net Assets—100.0%    $ 104,483,313   
     

 

 

  

Notes to Schedule of Investments:

(a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b) Non-income producing security.
(c) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   18  

 

 

PowerShares Dynamic Software Portfolio (PSJ)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Application Software      31.6   
Systems Software      29.3   
Health Care Technology      12.5   
Home Entertainment Software      5.8   
Internet Software & Services      5.6   
Data Processing & Outsourced Services      5.0   
Cable & Satellite      4.9   
Communications Equipment      2.8   
Electronic Components      2.6   
Money Market Fund Plus Other Assets Less Liabilities      (0.1)   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks—100.1%   
   Application Software—31.6%   
  51,683       Aspen Technology, Inc.(b)    $ 2,544,871   
  52,860       BroadSoft, Inc.(b)      2,196,333   
  40,283       CDK Global, Inc.      2,199,855   
  48,589       Citrix Systems, Inc.(b)      4,120,347   
  40,688       Ebix, Inc.      2,278,528   
  24,214       Ellie Mae, Inc.(b)      2,564,020   
  18,304       Fair Isaac Corp.      2,208,927   
  38,993       Intuit, Inc.      4,240,099   
  73,021       Synopsys, Inc.(b)      4,330,875   
     

 

 

  
        26,683,855   
     

 

 

  
   Cable & Satellite—4.9%   
  63,913       Liberty Broadband Corp., Class A(b)      4,151,150   
     

 

 

  
   Communications Equipment—2.8%   
  33,582       InterDigital, Inc.      2,372,568   
     

 

 

  
   Data Processing & Outsourced Services—5.0%   
  53,870       CSG Systems International, Inc.      2,048,676   
  26,571       Jack Henry & Associates, Inc.      2,152,783   
     

 

 

  
        4,201,459   
     

 

 

  
   Electronic Components—2.6%   
  46,736       Dolby Laboratories, Inc., Class A      2,224,166   
     

 

 

  
   Health Care Technology—12.5%   
  181,932       Allscripts Healthcare Solutions, Inc.(b)      2,185,003   
  66,532       Cerner Corp.(b)      3,897,445   
  43,935       Medidata Solutions, Inc.(b)      2,108,441   
  60,191       Veeva Systems, Inc., Class A(b)      2,338,420   
     

 

 

  
        10,529,309   
     

 

 

  
   Home Entertainment Software—5.8%   
  55,297       Take-Two Interactive Software, Inc.(b)      2,454,634   
Number
of Shares		           Value  
   Common Stocks (continued)   
   Home Entertainment Software (continued)   
  886,222       Zynga, Inc., Class A(b)    $ 2,490,284   
     

 

 

  
        4,944,918   
     

 

 

  
   Internet Software & Services—5.6%   
  82,761       Alarm.com Holdings, Inc.(b)      2,414,966   
  159,701       Five9, Inc.(b)      2,286,918   
     

 

 

  
        4,701,884   
     

 

 

  
   Systems Software—29.3%   
  126,492       CA, Inc.      3,888,364   
  45,052       CommVault Systems, Inc.(b)      2,410,282   
  52,236       Gigamon, Inc.(b)      2,888,651   
  73,737       Microsoft Corp.      4,418,321   
  81,011       Progress Software Corp.(b)      2,180,006   
  108,366       Tivo Corp.(b)      2,151,065   
  81,519       Varonis Systems, Inc.(b)      2,327,367   
  57,553       VMware, Inc., Class A(b)      4,523,666   
     

 

 

  
        24,787,722   
     

 

 

  
   Total Common Stocks
(Cost $81,915,377)		      84,597,031   
     

 

 

  
     
   Money Market Fund—0.0%   
  34,346       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(c)
(Cost $34,346)		      34,346   
     

 

 

  
   Total Investments
(Cost $81,949,723)—100.1%		      84,631,377   
   Other assets less liabilities—(0.1)%      (107,932 ) 
     

 

 

  
   Net Assets—100.0%    $ 84,523,445   
     

 

 

  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   19  

 

 

PowerShares Dynamic Software Portfolio (PSJ) (continued)

October 31, 2016

(Unaudited)

 

Notes to Schedule of Investments:

(a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b) Non-income producing security.
(c) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   20  

 

 

 

(This Page Intentionally Left Blank)

 

Statements of Assets and Liabilities

October 31, 2016

(Unaudited)

 

    PowerShares
Dynamic
Biotechnology &
Genome
Portfolio (PBE)		      PowerShares
Dynamic Building
& Construction
Portfolio (PKB)		      PowerShares
Dynamic Energy
Exploration &
Production
Portfolio (PXE)		      PowerShares
Dynamic Food &
Beverage
Portfolio (PBJ)		      PowerShares
Dynamic Leisure
and
Entertainment
Portfolio (PEJ)		  
Assets:              

Unaffiliated investments, at
value(a)

   $ 228,055,979       $ 80,015,065       $ 60,610,461       $ 150,041,275       $ 100,472,239   

Affiliated investments, at value

     34,682,589         77,122         3,345,337         108,556         42,561   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total investments, at value

     262,738,568         80,092,187         63,955,798         150,149,831         100,514,800   

Cash

     —         —         —         5,443         —   

Receivables:

              

Investments sold

     10,581,100         1,221,861         —         1,631,027         5,015,279   

Securities lending

     149,218         —         24,966         —         —   

Dividends

     22         18,945         45,816         102,963         29,779   

Shares sold

     —         —         —         —         —   

Other assets

     672         1,000         1,019         627         2,453   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Assets

     273,469,580         81,333,993         64,027,599         151,889,891         105,562,311   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Liabilities:              

Due to custodian

     8,650,143         —         —         —         —   

Payables:

              

Collateral upon return of securities loaned

     34,682,589         —         3,271,550         —         —   

Shares repurchased

     1,869,055         1,221,714         —         1,631,256         3,649,289   

Investments purchased

     —         —         —         —         1,427,769   

Accrued advisory fees

     104,233         34,137         23,519         65,313         43,573   

Accrued trustees’ and officer’s fees

     29,242         18,495         20,745         25,030         19,410   

Accrued expenses

     109,696         47,933         52,482         92,719         68,833   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Liabilities

     45,444,958         1,322,279         3,368,296         1,814,318         5,208,874   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Net Assets   $ 228,024,622       $ 80,011,714       $ 60,659,303       $ 150,075,573       $ 100,353,437   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Net Assets Consist of:              

Shares of beneficial interest

   $ 465,296,795       $ 99,213,593       $ 168,614,975       $ 200,901,908       $ 138,396,674   

Undistributed net investment income (loss)

     490,647         (28,785 )       36,434         228,620         (46,508 ) 

Undistributed net realized gain (loss)

     (214,066,826 )       (19,486,725 )       (105,823,250 )       (58,680,492 )       (39,450,366 ) 

Net unrealized appreciation (depreciation)

     (23,695,994 )       313,631         (2,168,856 )       7,625,537         1,453,637   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Net Assets   $ 228,024,622       $ 80,011,714       $ 60,659,303       $ 150,075,573       $ 100,353,437   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding (unlimited amount authorized, $0.01 par value)

     6,100,000         3,250,000         2,950,000         4,600,000         2,750,000   

Net asset value

   $ 37.38       $ 24.62       $ 20.56       $ 32.63       $ 36.49   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Market price

   $ 37.42       $ 24.64       $ 20.57       $ 32.64       $ 36.52   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Unaffiliated investments, at cost

   $ 251,751,973       $ 79,701,434       $ 62,779,317       $ 142,415,738       $ 99,018,602   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Affiliated investments, at cost

   $ 34,682,589       $ 77,122       $ 3,345,337       $ 108,556       $ 42,561   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total investments, at cost

   $ 286,434,562       $ 79,778,556       $ 66,124,654       $ 142,524,294       $ 99,061,163   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

(a) Includes securities on loan with an aggregate value of

   $ 34,113,343       $ —       $ 3,113,180       $ —       $ —   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   22  

 

 

 

PowerShares
Dynamic Media
Portfolio (PBS)		          
PowerShares
Dynamic
Networking
Portfolio (PXQ)		      PowerShares
Dynamic Oil
& Gas Services
Portfolio (PXJ)		      PowerShares
Dynamic
Pharmaceuticals
Portfolio (PJP)		      PowerShares
Dynamic Retail
Portfolio (PMR)		      PowerShares
Dynamic
Semiconductors
Portfolio (PSI)		      PowerShares
Dynamic
Software
Portfolio (PSJ)		  
                 
$ 81,258,793       $ 30,837,914       $ 39,280,031       $ 865,623,726       $ 22,377,726       $ 104,556,263       $ 84,597,031   
  76,274         491,681         4,476,914         105,814,107         48,271         41,207         34,346   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  81,335,067         31,329,595         43,756,945         971,437,833         22,425,997         104,597,470         84,631,377   
  —         —         —         —         5,368         —         —   
                 
  —         —         —         —         —         —         —   
  —         10,775         5,795         76,638         —         —         —   
  20         9         8,014         592,650         10,361         16         11   
  1,226,982         —         —         —         —         3,204,064         —   
  998         976         611         1,205         974         981         990   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  82,563,067         31,341,355         43,771,365         972,108,326         22,442,700         107,802,531         84,632,378   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
                 
  —         —         —         —         —         —         —   
                 
  —         445,300         4,407,925         74,035,330         —         —         —   
  —         —         —         215         —         —         —   
  1,227,298         —         —         —         —         3,206,274         —   
  31,595         7,720         13,310         410,404         4,595         43,177         34,324   
  21,113         17,256         26,048         44,626         16,465         17,243         17,988   
  57,511         40,407         46,413         399,952         39,859         52,524         56,621   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  1,337,517         510,683         4,493,696         74,890,527         60,919         3,319,218         108,933   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 81,225,550       $ 30,830,672       $ 39,277,669       $ 897,217,799       $ 22,381,781       $ 104,483,313       $ 84,523,445   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
                 
$ 155,578,311       $ 62,998,756       $ 271,229,846       $ 1,172,650,413       $ 45,474,565       $ 134,965,229       $ 102,615,207   
  72,446         36,939         225,945         583,451         (5,069 )       145,297         (86,944 ) 
  (75,584,383 )       (34,601,399 )       (225,873,985 )       (94,513,886 )       (22,029,068 )       (41,940,585 )       (20,686,472 ) 
  1,159,176         2,396,376         (6,304,137 )       (181,502,179 )       (1,058,647 )       11,313,372         2,681,654   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 81,225,550       $ 30,830,672       $ 39,277,669       $ 897,217,799       $ 22,381,781       $ 104,483,313       $ 84,523,445   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
 
 		     
3,300,000		  
  		      800,000         3,650,000         15,900,000         650,000         3,250,000         1,800,000   
$ 24.61       $ 38.54       $ 10.76       $ 56.43       $ 34.43       $ 32.15       $ 46.96   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 24.64       $ 38.55       $ 10.77       $ 56.47       $ 34.46       $ 32.17       $ 47.01   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 80,099,617       $ 28,441,538       $ 45,584,168       $ 1,007,170,785       $ 23,436,373       $ 93,242,891       $ 81,915,377   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 76,274       $ 491,681       $ 4,476,914       $ 145,769,227       $ 48,271       $ 41,207       $ 34,346   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 80,175,891       $ 28,933,219       $ 50,061,082       $ 1,152,940,012       $ 23,484,644       $ 93,284,098       $ 81,949,723   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
    
$		  
—		  
  		    $ 425,109       $ 4,164,711       $ 72,152,072       $ —       $ —       $ —   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

 

   23  

 

 

Statements of Operations

For the six months ended October 31, 2016

(Unaudited)

 

    PowerShares
Dynamic
Biotechnology &
Genome
Portfolio (PBE)		      PowerShares
Dynamic Building
& Construction
Portfolio (PKB)		      PowerShares
Dynamic Energy
Exploration &
Production
Portfolio (PXE)		      PowerShares
Dynamic Food &
Beverage
Portfolio (PBJ)		      PowerShares
Dynamic Leisure
and
Entertainment
Portfolio (PEJ)		  
Investment Income:              

Unaffiliated dividend income

   $ 312,252       $ 264,286       $ 618,375       $ 1,831,280       $ 863,869   

Affiliated dividend income

     210         124         540         315         199   

Securities lending income

     1,085,901         —         128,104         —         —   

Foreign withholding tax

     —         —         —         —         —   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Income

     1,398,363         264,410         747,019         1,831,595         864,068   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Expenses:              

Advisory fees

     649,855         178,697         167,687         546,344         296,892   

Sub-licensing fees

     38,991         10,722         10,061         32,780         17,813   

Accounting & administration fees

     29,290         18,022         18,082         27,099         18,215   

Professional fees

     15,670         13,028         14,173         14,162         14,136   

Trustees’ and officer’s fees

     6,051         4,389         4,423         6,398         5,218   

Custodian & transfer agent fees

     5,600         2,391         3,360         4,842         3,210   

Taxes

     —         —         109,764         —         —   

Other expenses

     22,123         8,284         10,724         18,594         14,642   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Expenses

     767,580         235,533         338,274         650,219         370,126   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less: Waivers

     (106 )       (10,427 )       (17,472 )       (153 )       (100 ) 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Expenses

     767,474         225,106         320,802         650,066         370,026   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Investment Income (Loss)

     630,889         39,304         426,217         1,181,529         494,042   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Realized and Unrealized Gain (Loss):              

Net realized gain (loss) from:

              

Investment securities

     (21,742,320 )       (2,200,952 )       (7,671,120 )       (7,958,831 )       (7,045,734 ) 

In-kind redemptions

     12,435,691         6,911,993         13,636,255         21,286,195         8,303,569   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net realized gain (loss)

     (9,306,629 )       4,711,041         5,965,135         13,327,364         1,257,835   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net change in unrealized appreciation (depreciation) on investment securities

     (3,022,298 )       (7,366,822 )       (8,662,692 )       (5,343,293 )       277,338   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net realized and unrealized gain (loss)

     (12,328,927 )       (2,655,781 )       (2,697,557 )       7,984,071         1,535,173   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets resulting from operations

   $ (11,698,038 )     $ (2,616,477 )     $ (2,271,340 )     $ 9,165,600       $ 2,029,215   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   24  

 

 

 

PowerShares
Dynamic Media
Portfolio (PBS)		          
PowerShares
Dynamic
Networking
Portfolio (PXQ)		      PowerShares
Dynamic Oil
& Gas Services
Portfolio (PXJ)		      PowerShares
Dynamic
Pharmaceuticals
Portfolio (PJP)		      PowerShares
Dynamic Retail
Portfolio (PMR)		      PowerShares
Dynamic
Semiconductors
Portfolio (PSI)		      PowerShares
Dynamic
Software
Portfolio (PSJ)		  
                 
$ 494,042       $ 96,699       $ 372,324       $ 6,494,114       $ 125,388       $ 365,659       $ 219,733   
  168         117         85         937         95         107         108   
  —         25,319         13,979         580,765         4,165         —         —   
  —         —         (6,667 )       —         —         —         —   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  494,210         122,135         379,721         7,075,816         129,648         365,766         219,841   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
                 
  214,484         55,245         102,813         2,809,436         48,761         168,535         196,710   
  12,869         3,315         6,169         168,565         2,926         10,112         11,803   
  18,022         18,020         18,038         124,747         18,035         18,029         18,014   
  13,587         12,865         13,739         23,606         12,871         13,119         13,065   
  4,630         4,014         4,193         14,120         4,015         4,279         4,479   
  3,462         1,878         2,612         10,802         2,085         2,707         2,243   
  —         —         —         —         —         —         —   
  13,571         7,085         9,559         55,876         6,735         8,508         10,741   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  280,625         102,422         157,123         3,207,152         95,428         225,289         257,055   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  (10,450 )       (32,865 )       (27,614 )       (472 )       (34,032 )       (12,982 )       (9,249 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  270,175         69,557         129,509         3,206,680         61,396         212,307         247,806   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  224,035         52,578         250,212         3,869,136         68,252         153,459         (27,965 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
                 
                 
  (4,339,941 )       (263,618 )       (9,005,239 )       (28,680,805 )       (1,889,541 )       (730,164 )       (1,202,950 ) 
  4,179,775         1,618,602         499,034         41,327,519         1,557,813         3,171,796         7,981,430   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  (160,166 )       1,354,984         (8,506,205 )       12,646,714         (331,728 )       2,441,632         6,778,480   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
 
 		     
(1,567,694		  
) 		      1,144,919         (138,479 )       (98,373,033 )       (725,920 )       12,220,159         1,202,367   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  (1,727,860 )       2,499,903         (8,644,684 )       (85,726,319 )       (1,057,648 )       14,661,791         7,980,847   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

$

(1,503,825

) 

    $ 2,552,481       $ (8,394,472 )     $ (81,857,183 )     $ (989,396 )     $ 14,815,250       $ 7,952,882   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

 

   25  

 

 

Statements of Changes in Net Assets

For the six months ended October 31, 2016 and the year ended April 30, 2016

(Unaudited)

 

    PowerShares Dynamic
Biotechnology & Genome
Portfolio (PBE)		      PowerShares Dynamic
Building & Construction
Portfolio (PKB)		  
    October 31, 2016      April 30, 2016      October 31, 2016      April 30, 2016  
Operations:           

Net investment income

  $ 630,889       $ 4,270,915       $ 39,304       $ 103,450   

Net realized gain (loss)

     (9,306,629 )       (38,017,218 )       4,711,041         554,277   

Net change in unrealized appreciation (depreciation)

     (3,022,298 )       (78,486,936 )       (7,366,822 )       3,421,640   
 

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets resulting from operations

     (11,698,038 )       (112,233,239 )       (2,616,477 )       4,079,367   
 

 

 

     

 

 

     

 

 

     

 

 

  
Distributions to Shareholders from:           

Net investment income

     (177,125 )       (4,955,367 )       (117,899 )       (67,537 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
Shareholder Transactions:           

Proceeds from shares sold

     28,517,008         93,026,648         74,846,093         34,203,109   

Value of shares repurchased

     (56,201,355 )       (219,516,036 )       (52,301,085 )       (33,191,270 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets resulting from shares transactions

     (27,684,347 )       (126,489,388 )       22,545,008         1,011,839   
 

 

 

     

 

 

     

 

 

     

 

 

  

Increase (Decrease) in Net Assets

     (39,559,510 )       (243,677,994 )       19,810,632         5,023,669   
 

 

 

     

 

 

     

 

 

     

 

 

  
Net Assets:           

Beginning of period

     267,584,132         511,262,126         60,201,082         55,177,413   
 

 

 

     

 

 

     

 

 

     

 

 

  

End of period

   $ 228,024,622       $ 267,584,132       $ 80,011,714       $ 60,201,082   
 

 

 

     

 

 

     

 

 

     

 

 

  

Undistributed net investment income (loss) at end of period

   $ 490,647       $ 36,883       $ (28,785 )     $ 49,810   
 

 

 

     

 

 

     

 

 

     

 

 

  
Changes in Shares Outstanding:           

Shares sold

     700,000         1,750,000         2,850,000         1,400,000   

Shares repurchased

     (1,400,000 )       (4,600,000 )       (2,000,000 )       (1,400,000 ) 

Shares outstanding, beginning of period

     6,800,000         9,650,000         2,400,000         2,400,000   
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding, end of period

     6,100,000         6,800,000         3,250,000         2,400,000   
 

 

 

     

 

 

     

 

 

     

 

 

  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   26  

 

 

 

PowerShares Dynamic Energy
Exploration & Production
Portfolio (PXE)		      PowerShares Dynamic Food &
Beverage Portfolio (PBJ)		      PowerShares Dynamic Leisure
and Entertainment
Portfolio (PEJ)		      PowerShares Dynamic Media
Portfolio (PBS)		  
October 31, 2016      April 30, 2016      October 31, 2016      April 30, 2016      October 31, 2016      April 30, 2016      October 31, 2016      April 30, 2016  
                    
$ 426,217       $ 1,896,594       $ 1,181,529       $ 3,062,976       $ 494,042       $ 557,579       $ 224,035       $ 315,578   
  5,965,135         (39,225,841 )       13,327,364         13,614,760         1,257,835         (3,610,897 )       (160,166 )       (6,158,013 ) 
  (8,662,692 )       776,823         (5,343,293 )       (1,735,070 )       277,338         (5,120,787 )       (1,567,694 )       (6,304,545 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  (2,271,340 )       (36,552,424 )       9,165,600         14,942,666         2,029,215         (8,174,105 )       (1,503,825 )       (12,146,980 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
                    
  (4,196,158 )       (2,429,800 )       (1,664,608 )       (2,995,165 )       (522,984 )       (444,265 )       (132,205 )       (1,074,222 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
                    
  33,627,388         49,529,499         28,858,795         342,040,166         50,955,142         158,374,155         22,646,698         125,469,044   
  (41,182,317 )       (53,458,266 )       (186,739,309 )       (319,253,170 )       (94,862,226 )       (199,941,946 )       (30,246,092 )       (167,455,100 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  (7,554,929 )       (3,928,767 )       (157,880,514 )       22,786,996         (43,907,084 )       (41,567,791 )       (7,599,394 )       (41,986,056 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  (14,022,427 )       (42,910,991 )       (150,379,522 )       34,734,497         (42,400,853 )       (50,186,161 )       (9,235,424 )       (55,207,258 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
                    
  74,681,730         117,592,721         300,455,095         265,720,598         142,754,290         192,940,451         90,460,974         145,668,232   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 60,659,303       $ 74,681,730       $ 150,075,573       $ 300,455,095       $ 100,353,437       $ 142,754,290       $ 81,225,550       $ 90,460,974   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 36,434       $ 3,806,375       $ 228,620       $ 711,699       $ (46,508 )     $ (17,566 )     $ 72,446       $ (19,384 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
                    
  1,550,000         1,800,000         850,000         10,700,000         1,450,000         4,250,000         900,000         4,800,000   
  (1,900,000 )       (2,200,000 )       (5,550,000 )       (9,850,000 )       (2,700,000 )       (5,550,000 )       (1,200,000 )       (6,650,000 ) 
  3,300,000         3,700,000         9,300,000         8,450,000         4,000,000         5,300,000         3,600,000         5,450,000   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  2,950,000         3,300,000         4,600,000         9,300,000         2,750,000         4,000,000         3,300,000         3,600,000   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

   27  

 

 

Statements of Changes in Net Assets (continued)

For the six months ended October 31, 2016 and the year ended April 30, 2016

(Unaudited)

 

    PowerShares Dynamic
Networking Portfolio (PXQ)		      PowerShares Dynamic Oil & Gas
Services Portfolio (PXJ)		  
    October 31, 2016      April 30, 2016      October 31, 2016      April 30, 2016  
Operations:           

Net investment income (loss)

   $ 52,578       $ 103,581       $ 250,212       $ 733,288   

Net realized gain (loss)

     1,354,984         1,107,416         (8,506,205 )       (21,165,065 ) 

Net change in unrealized appreciation (depreciation)

     1,144,919         (3,430,513 )       (138,479 )       (975,438 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets resulting from operations

     2,552,481         (2,219,516 )       (8,394,472 )       (21,407,215 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
Distributions to Shareholders from:           

Net investment income

     (105,774 )       —         (108,848 )       (831,786 ) 

Net realized gains

     —         —         —         —   
 

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions to shareholders

     (105,774 )       —         (108,848 )       (831,786 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
Shareholder Transactions:           

Proceeds from shares sold

     15,714,892         9,058,713         4,469,435         15,134,853   

Value of shares repurchased

     (7,520,246 )       (14,134,635 )       (2,222,254 )       (20,147,734 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets resulting from shares transactions

     8,194,646         (5,075,922 )       2,247,181         (5,012,881 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Increase (Decrease) in Net Assets

     10,641,353         (7,295,438 )       (6,256,139 )       (27,251,882 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
Net Assets:           

Beginning of period

     20,189,319         27,484,757         45,533,808         72,785,690   
 

 

 

     

 

 

     

 

 

     

 

 

  

End of period

   $ 30,830,672       $ 20,189,319       $ 39,277,669       $ 45,533,808   
 

 

 

     

 

 

     

 

 

     

 

 

  

Undistributed net investment income (loss) at end of period

   $ 36,939       $ 90,135       $ 225,945       $ 84,581   
 

 

 

     

 

 

     

 

 

     

 

 

  
Changes in Shares Outstanding:           

Shares sold

     400,000         250,000         400,000         1,050,000   

Shares repurchased

     (200,000 )       (400,000 )       (200,000 )       (1,450,000 ) 

Shares outstanding, beginning of period

     600,000         750,000         3,450,000         3,850,000   
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding, end of period

     800,000         600,000         3,650,000         3,450,000   
 

 

 

     

 

 

     

 

 

     

 

 

  

 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   28  

 

 

 

PowerShares Dynamic
Pharmaceuticals Portfolio (PJP)		      PowerShares Dynamic Retail
Portfolio (PMR)		      PowerShares Dynamic
Semiconductors Portfolio (PSI)		      PowerShares Dynamic Software
Portfolio (PSJ)		  
October 31, 2016      April 30, 2016      October 31, 2016      April 30, 2016      October 31, 2016      April 30, 2016      October 31, 2016      April 30, 2016  
                    
$ 3,869,136       $ 9,639,772       $ 68,252       $ 168,368       $ 153,459       $ 252,292       $ (27,965 )     $ (146,626 ) 
  12,646,714         135,708,693         (331,728 )       59,120         2,441,632         (4,881,907 )       6,778,480         (516,409 ) 
  (98,373,033 )       (370,625,568 )       (725,920 )       (1,126,743 )       12,220,159         (3,462,052 )       1,202,367         (4,707,107 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  (81,857,183 )       (225,277,103 )       (989,396 )       (899,255 )       14,815,250         (8,091,667 )       7,952,882         (5,370,142 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
                    
  (5,049,435 )       (9,438,012 )       (92,432 )       (182,321 )       (146,231 )       (100,980 )       —         (83,133 ) 
  —         (78,190,579 )       —         —         —         —         —         —   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  (5,049,435 )       (87,628,591 )       (92,432 )       (182,321 )       (146,231 )       (100,980 )       —         (83,133 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
                    
  48,546,699         402,286,845         23,160,969         18,333,024         69,330,916         43,249,104         58,319,864         98,889,794   
  (232,947,990 )       (847,789,130 )       (21,113,818 )       (34,245,374 )       (28,515,473 )       (64,968,217 )       (55,595,885 )       (76,919,326 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  (184,401,291 )       (445,502,285 )       2,047,151         (15,912,350 )       40,815,443         (21,719,113 )       2,723,979         21,970,468   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  (271,307,909 )       (758,407,979 )       965,323         (16,993,926 )       55,484,462         (29,911,760 )       10,676,861         16,517,193   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
                    
  1,168,525,708         1,926,933,687         21,416,458         38,410,384         48,998,851         78,910,611         73,846,584         57,329,391   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 897,217,799       $ 1,168,525,708       $ 22,381,781       $ 21,416,458       $ 104,483,313       $ 48,998,851       $ 84,523,445       $ 73,846,584   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 583,451       $ 1,763,750       $ (5,069 )     $ 19,111       $ 145,297       $ 138,069       $ (86,944 )     $ (58,979 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
                    
  750,000         5,400,000         650,000         500,000         2,250,000         1,600,000         1,250,000         2,300,000   
  (3,650,000 )       (12,500,000 )       (600,000 )       (900,000 )       (1,000,000 )       (2,600,000 )       (1,200,000 )       (1,900,000 ) 
  18,800,000         25,900,000         600,000         1,000,000         2,000,000         3,000,000         1,750,000         1,350,000   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  15,900,000         18,800,000         650,000         600,000         3,250,000         2,000,000         1,800,000         1,750,000   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

   29  

 

 

Financial Highlights

 

PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016     2015      2014      2013     2012  
Per Share Operating Performance:              

Net asset value at beginning of period

   $ 39.35     $ 52.98     $ 39.71      $ 28.26       $ 22.26     $ 23.14  

Net investment income (loss)(a)

     0.10        0.50        0.34         0.03         (0.05 )      (0.04 ) 

Net realized and unrealized gain (loss) on investments

     (2.04 )      (13.56 )      13.21         11.42         6.05        (0.84 ) 

Total from investment operations

     (1.94 )      (13.06 )      13.55        11.45         6.00       (0.88 )

Distributions to shareholders from:

              

Net investment income

     (0.03 )      (0.57 )      (0.28 )       —         —        —   

Net asset value at end of period

   $ 37.38     $ 39.35     $ 52.98      $ 39.71       $ 28.26     $ 22.26  

Market price at end of period(b)

   $ 37.42      $ 39.35     $ 52.95      $ 39.68       $ 28.27     $ 22.21  
Net Asset Value Total Return:(c)     (4.94 )%      (24.92 )%      34.25 %       40.52 %       26.96 %      (3.80 )% 
Market Price Total Return(c)     (4.84 )%      (24.88 )%      34.28 %       40.36 %       27.29 %      (4.18 )% 
Ratios/Supplemental Data:              

Net assets at end of period (000’s omitted)

   $ 228,025     $ 267,584     $ 511,262       $ 361,320       $ 155,453      $ 136,903   

Ratio to average net assets of:

              

Expenses, after Waivers

     0.59 %(d)      0.58 %      0.57 %       0.59 %       0.63 %      0.63 % 

Expenses, prior to Waivers

     0.59 %(d)      0.58 %      0.57 %       0.59 %       0.63 %      0.64 % 

Net investment income (loss), after Waivers

     0.49 %(d)      1.00 %      0.69 %       0.09 %       (0.20 )%      (0.21 )% 

Portfolio turnover rate(e)

     41 %      74 %      95 %       64 %       53 %      53 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   30  

 

 

Financial Highlights (continued)

 

PowerShares Dynamic Building & Construction Portfolio (PKB)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016      2015      2014      2013      2012  
Per Share Operating Performance:                

Net asset value at beginning of period

   $ 25.08     $ 22.99      $ 22.09      $ 19.65       $ 14.23      $ 14.11  

Net investment income(a)

     0.01        0.04         0.03         0.00 (b)       0.07         0.02   

Net realized and unrealized gain (loss) on investments

     (0.43 )      2.08         0.89         2.44         5.44         0.12   

Total from investment operations

     (0.42 )      2.12         0.92        2.44         5.51        0.14  

Distributions to shareholders from:

                

Net investment income

     (0.04 )      (0.03 )       (0.02 )       —         (0.09 )       (0.02 ) 

Net asset value at end of period

   $ 24.62      $ 25.08      $ 22.99      $ 22.09       $ 19.65      $ 14.23  

Market price at end of period(c)

   $ 24.64     $ 25.08      $ 22.98      $ 22.10       $ 19.63      $ 14.20  
Net Asset Value Total Return:(d)     (1.66 )%      9.21 %       4.17 %       12.42 %       38.85 %       0.99 % 
Market Price Total Return(d)     (1.58 )%      9.26 %       4.08 %       12.58 %       39.01 %       0.92 % 
Ratios/Supplemental Data:                

Net assets at end of period (000’s omitted)

   $ 80,012     $ 60,201      $ 55,177       $ 123,688       $ 104,121       $ 30,600   

Ratio to average net assets of:

                

Expenses, after Waivers

     0.63 %(e)      0.63 %       0.63 %       0.63 %       0.63 %       0.63 % 

Expenses, prior to Waivers

     0.66 %(e)      0.68 %       0.65 %       0.63 %       0.69 %       1.01 % 

Net investment income, after Waivers

     0.11 %(e)      0.18 %       0.15 %       0.01 %       0.44 %       0.12 % 

Portfolio turnover rate(f)

     79 %      90 %       96 %       117 %       95 %       72 % 

 

(a)  Based on average shares outstanding.
(b)  Amount represents less than $0.005.
(c)  The mean between the last bid and ask prices.
(d)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(e)  Annualized.
(f)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016     2015     2014      2013      2012  
Per Share Operating Performance:              

Net asset value at beginning of period

   $ 22.63     $ 31.78     $ 37.76     $ 30.27       $ 24.58      $ 27.67  

Net investment income(a)

     0.13        0.51        0.39        0.48         0.53         0.19   

Net realized and unrealized gain (loss) on investments

     (0.92 )      (9.04 )      (5.84 )      7.55         5.81         (2.94 ) 

Total from investment operations

     (0.79 )      (8.53 )      (5.45 )     8.03         6.34        (2.75 )

Distributions to shareholders from:

              

Net investment income

     (1.28 )      (0.62 )      (0.53 )      (0.54 )       (0.65 )       (0.34 ) 

Net asset value at end of period

   $ 20.56      $ 22.63     $ 31.78     $ 37.76       $ 30.27      $ 24.58  

Market price at end of period(b)

   $ 20.57     $ 22.63     $ 31.77     $ 37.76       $ 30.23      $ 24.57  
Net Asset Value Total Return:(c)     (3.31 )%      (26.93 )%      (14.51 )%      26.93 %       26.14 %       (9.86 )% 
Market Price Total Return(c)     (3.26 )%      (26.91 )%      (14.54 )%      27.10 %       26.03 %       (9.83 )% 
Ratios/Supplemental Data:              

Net assets at end of period (000’s omitted)

   $ 60,659     $ 74,682     $ 117,593      $ 130,273       $ 104,427       $ 67,592   

Ratio to average net assets of:

              

Expenses, after Waivers

     0.96 %(d)(e)      0.65 %      0.64 %      0.64 %       0.65 %       0.65 % 

Expenses, prior to Waivers

     1.01 %(d)(e)      0.67 %      0.64 %      0.64 %       0.69 %       0.73 % 

Net investment income, after Waivers

     1.27 %(d)      2.09 %      1.20 %      1.46 %       1.97 %       0.81 % 

Portfolio turnover rate(f)

     46 %      134 %      140 %      96 %       80 %       94 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  Expenses, after Waivers and Expenses, prior to Waivers include state income taxes paid during the six months ended October 31, 2016. Expenses, after Waivers and Expenses, prior to Waivers excluding the taxes paid are 0.63% and 0.68%, respectively.
(f)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   31  

 

 

Financial Highlights (continued)

 

PowerShares Dynamic Food & Beverage Portfolio (PBJ)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016      2015      2014      2013      2012  
Per Share Operating Performance:                

Net asset value at beginning of period

   $ 32.31     $ 31.45      $ 26.98      $ 23.62       $ 19.77      $ 19.76  

Net investment income(a)

     0.18        0.39         0.31         0.38         0.26         0.22   

Net realized and unrealized gain (loss) on investments

     0.38        0.88         4.58         3.19         3.92         (0.03 ) 

Total from investment operations

     0.56        1.27         4.89        3.57         4.18        0.19  

Distributions to shareholders from:

                

Net investment income

     (0.24 )      (0.41 )       (0.42 )      (0.21 )       (0.33 )      (0.18 )

Net asset value at end of period

   $ 32.63      $ 32.31      $ 31.45      $ 26.98       $ 23.62      $ 19.77  

Market price at end of period(b)

   $ 32.64     $ 32.30      $ 31.43      $ 26.99       $ 23.61      $ 19.77  
Net Asset Value Total Return:(c)     1.73 %      4.06 %       18.25 %       15.16 %       21.45 %       1.02 % 
Market Price Total Return(c)     1.79 %      4.10 %       18.13 %       15.25 %       21.40 %       0.77 % 
Ratios/Supplemental Data:                

Net assets at end of period (000’s omitted)

   $ 150,076     $ 300,455      $ 265,721       $ 434,371       $ 236,226       $ 169,039   

Ratio to average net assets of:

                

Expenses, after Waivers

     0.59 %(d)      0.58 %       0.58 %       0.61 %       0.63 %       0.63 % 

Expenses, prior to Waivers

     0.60 %(d)      0.58 %       0.58 %       0.61 %       0.63 %       0.64 % 

Net investment income, after Waivers

     1.08 %(d)      1.21 %       1.05 %       1.47 %       1.28 %       1.13 % 

Portfolio turnover rate(e)

     79 %      109 %       124 %       145 %       92 %       134 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016     2015      2014      2013      2012  
Per Share Operating Performance:               

Net asset value at beginning of period

   $ 35.69     $ 36.40     $ 32.35      $ 27.23       $ 22.18      $ 19.34  

Net investment income(a)

     0.15        0.11        0.31         0.15         0.12         0.15   

Net realized and unrealized gain (loss) on investments

     0.80        (0.74 )      4.04         5.10         5.09         2.82   

Total from investment operations

     0.95        (0.63 )      4.35        5.25         5.21        2.97  

Distributions to shareholders from:

               

Net investment income

     (0.15 )      (0.08 )      (0.30 )      (0.13 )       (0.16 )      (0.13 )

Net asset value at end of period

   $ 36.49      $ 35.69     $ 36.40      $ 32.35       $ 27.23      $ 22.18  

Market price at end of period(b)

   $ 36.52     $ 35.68     $ 36.39      $ 32.34       $ 27.21      $ 22.20  
Net Asset Value Total Return:(c)     2.70 %      (1.73 )%      13.47 %       19.29 %       23.67 %       15.49 % 
Market Price Total Return(c)     2.81 %      (1.73 )%      13.47 %       19.34 %       23.47 %       15.59 % 
Ratios/Supplemental Data:               

Net assets at end of period (000’s omitted)

   $ 100,353     $ 142,754     $ 192,940       $ 177,930       $ 85,765       $ 57,679   

Ratio to average net assets of:

               

Expenses, after Waivers

     0.62 %(d)      0.61 %      0.63 %       0.63 %       0.63 %       0.63 % 

Expenses, prior to Waivers

     0.62 %(d)      0.61 %      0.63 %       0.63 %       0.69 %       0.80 % 

Net investment income, after Waivers

     0.83 %(d)      0.29 %      0.88 %       0.48 %       0.52 %       0.80 % 

Portfolio turnover rate(e)

     89 %      136 %      187 %       171 %       93 %       90 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   32  

 

 

Financial Highlights (continued)

 

PowerShares Dynamic Media Portfolio (PBS)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016     2015      2014      2013      2012  
Per Share Operating Performance:               

Net asset value at beginning of period

   $ 25.13     $ 26.73     $ 23.81      $ 20.11       $ 14.84      $ 15.61  

Net investment income(a)

     0.07        0.07        0.21         0.09         0.12         0.08   

Net realized and unrealized gain (loss) on investments

     (0.55 )      (1.45 )      2.89         3.70         5.28         (0.76 ) 

Total from investment operations

     (0.48 )      (1.38 )      3.10        3.79         5.40        (0.68 )

Distributions to shareholders from:

               

Net investment income

     (0.04 )      (0.22 )      (0.18 )       (0.09 )       (0.13 )       (0.09 ) 

Net asset value at end of period

   $ 24.61     $ 25.13     $ 26.73      $ 23.81       $ 20.11      $ 14.84  

Market price at end of period(b)

   $ 24.64     $ 25.12     $ 26.72      $ 23.79       $ 20.10      $ 14.84  
Net Asset Value Total Return:(c)     (1.90 )%      (5.18 )%      13.04 %       18.87 %       36.62 %       (4.33 )% 
Market Price Total Return(c)     (1.75 )%      (5.18 )%      13.09 %       18.83 %       36.55 %       (4.33 )% 
Ratios/Supplemental Data:               

Net assets at end of period (000’s omitted)

   $ 81,226     $ 90,461     $ 145,668       $ 171,430       $ 150,788       $ 137,975   

Ratio to average net assets of:

               

Expenses, after Waivers

     0.63 %(d)      0.61 %      0.59 %       0.62 %       0.63 %       0.63 % 

Expenses, prior to Waivers

     0.65 %(d)      0.61 %      0.59 %       0.62 %       0.63 %       0.65 % 

Net investment income, after Waivers

     0.52 %(d)      0.26 %      0.84 %       0.38 %       0.71 %       0.60 % 

Portfolio turnover rate(e)

     47 %      124 %      131 %       120 %       70 %       89 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares Dynamic Networking Portfolio (PXQ)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016     2015     2014     2013     2012  
Per Share Operating Performance:            

Net asset value at beginning of period

   $ 33.65     $ 36.65     $ 31.20     $ 25.00      $ 27.71     $ 29.20  

Net investment income (loss)(a)

     0.09        0.15        (0.01 )      (0.04 )      0.20 (b)      (0.06 ) 

Net realized and unrealized gain (loss) on investments

     4.98        (3.15 )      5.46        6.44        (2.85 )      (1.43 ) 

Total from investment operations

     5.07        (3.00 )      5.45       6.40        (2.65 )     (1.49 )

Distributions to shareholders from:

            

Net investment income

     (0.18 )      —        —       (0.20 )      (0.06 )      —   

Net asset value at end of period

   $ 38.54      $ 33.65      $ 36.65     $ 31.20      $ 25.00     $ 27.71  

Market price at end of period(c)

   $ 38.55     $ 33.65     $ 36.64     $ 31.19      $ 24.97     $ 27.68  
Net Asset Value Total Return:(d)     15.13 %      (8.19 )%      17.47 %      25.69 %      (9.57 )%      (5.10 )% 
Market Price Total Return(d)     15.16 %      (8.16 )%      17.48 %      25.80 %      (9.58 )%      (5.20 )% 
Ratios/Supplemental Data:            

Net assets at end of period (000’s omitted)

   $ 30,831     $ 20,189     $ 27,485      $ 29,643      $ 30,000      $ 81,739   

Ratio to average net assets of:

            

Expenses, after Waivers

     0.63 %(e)      0.63 %      0.63 %      0.63 %      0.64 %      0.63 % 

Expenses, prior to Waivers

     0.93 %(e)      0.88 %      0.85 %      0.82 %      0.75 %      0.67 % 

Net investment income (loss), after Waivers

     0.48 %(e)      0.42 %      (0.02 )%      (0.12 )%      0.81 %(b)      (0.22 )% 

Portfolio turnover rate(f)

     53 %      87 %      74 %      69 %      68 %      84 % 

 

(a)  Based on average shares outstanding.
(b)  Net investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $1 per share owned of Tellabs, Inc. on December 24, 2012. Net investment loss per share and the ratio of net investment loss to average net assets excluding the special dividend are $(0.01) and (0.05)%, respectively.
(c)  The mean between the last bid and ask prices.
(d)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(e)  Annualized.
(f)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   33  

 

 

Financial Highlights (continued)

 

PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016     2015     2014     2013      2012  
Per Share Operating Performance:             

Net asset value at beginning of period

   $ 13.20     $ 18.91     $ 28.01     $ 22.49      $ 20.48      $ 26.38   

Net investment income (loss)(a)

     0.07        0.20        0.22        0.08        0.04         (0.01 ) 

Net realized and unrealized gain (loss) on investments

     (2.48 )      (5.69 )      (9.07 )      5.53 (b)      2.00         (5.89 ) 

Total from investment operations

     (2.41 )      (5.49 )      (8.85 )     5.61        2.04        (5.90 ) 

Distributions to shareholders from:

             

Net investment income

     (0.03 )      (0.22 )      (0.25 )      (0.09 )      (0.03 )       (0.00 )(c) 

Net asset value at end of period

   $ 10.76     $ 13.20     $ 18.91     $ 28.01      $ 22.49      $ 20.48   

Market price at end of period(d)

   $ 10.77     $ 13.19     $ 18.92     $ 28.00      $ 22.49      $ 20.48   
Net Asset Value Total Return:(e)     (18.28 )%      (29.06 )%      (31.67 )%      24.98 %(b)      9.95 %       (22.36 )% 
Market Price Total Return(e)     (18.14 )%      (29.15 )%      (31.61 )%      24.94 %      9.95 %       (22.36 )% 
Ratios/Supplemental Data:             

Net assets at end of period (000’s omitted)

   $ 39,278      $ 45,534     $ 72,786      $ 135,849      $ 116,973       $ 147,485   

Ratio to average net assets of:

             

Expenses, after Waivers

     0.63 %(f)      0.63 %      0.63 %      0.61 %      0.62 %       0.63 % 

Expenses, prior to Waivers

     0.76 %(f)      0.72 %      0.64 %      0.61 %      0.62 %       0.63 % 

Net investment income (loss), after Waivers

     1.22 %(f)      1.46 %      0.96 %      0.31 %      0.18 %       (0.03 )% 

Portfolio turnover rate(g)

     58 %      89 %      79 %      259 %(b)      68 %       70 % 

 

(a)  Based on average shares outstanding.
(b)  Amount includes the effect of the Adviser pay-in for an economic loss of $0.43 per share. Had the pay-in not been made, the net asset value total return would have been 23.06%. In addition, the portfolio turnover calculation includes the value of securities purchased and sold related to this transaction.
(c)  Amount represents less than $0.005.
(d)  The mean between the last bid and ask prices.
(e)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(f)  Annualized.
(g)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares Dynamic Pharmaceuticals Portfolio (PJP)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016     2015     2014      2013     2012  
Per Share Operating Performance:             

Net asset value at beginning of period

   $ 62.16     $ 74.40     $ 57.65     $ 40.72       $ 32.00     $ 26.15  

Net investment income(a)

     0.22        0.41        0.32        0.26         0.54 (b)      0.22   

Net realized and unrealized gain (loss) on investments

     (5.66 )      (8.81 )      18.42        16.90         8.72        5.83   

Total from investment operations

     (5.44 )      (8.40 )      18.74       17.16         9.26       6.05  

Distributions to shareholders from:

             

Net investment income

     (0.29 )      (0.39 )      (0.34 )      (0.23 )       (0.54 )      (0.20 ) 

Net realized gains

     —        (3.45 )      (1.65 )      —         —        —   

Total distributions

     (0.29 )      (3.84 )      (1.99 )     (0.23 )       (0.54 )      (0.20 ) 

Net asset value at end of period

   $ 56.43     $ 62.16     $ 74.40     $ 57.65       $ 40.72     $ 32.00  

Market price at end of period(c)

   $ 56.47     $ 62.14     $ 74.35     $ 57.60       $ 40.72     $ 31.99  
Net Asset Value Total Return:(d)     (8.80 )%      (11.86 )%      32.95 %      42.27 %       29.25 %      23.29 % 
Market Price Total Return(d)     (8.71 )%      (11.83 )%      32.97 %      42.15 %       29.29 %      23.16 % 
Ratios/Supplemental Data:             

Net assets at end of period (000’s omitted)

   $ 897,218     $ 1,168,526     $ 1,926,934      $ 1,104,007       $ 468,305      $ 270,385   

Ratio to average net assets of:

             

Expenses, after Waivers

     0.57 %(e)      0.57 %      0.56 %      0.58 %       0.63 %      0.63 % 

Expenses, prior to Waivers

     0.57 %(e)      0.57 %      0.56 %      0.58 %       0.63 %      0.64 % 

Net investment income, after Waivers

     0.69 %(e)      0.58 %      0.48 %      0.52 %       1.52 %(b)      0.77 % 

Portfolio turnover rate(f)

     9 %      26 %      47 %      39 %       24 %      23 % 

 

(a)  Based on average shares outstanding.
(b)  Net investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $4 per share owned of Warner Chilcott PLC. on August 29, 2012. Net investment income per share and the ratio of net investment income to average net assets excluding the special dividend are $0.32 and 0.91%, respectively.
(c)  The mean between the last bid and ask prices.
(d)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(e)  Annualized.
(f)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   34  

 

 

Financial Highlights (continued)

 

PowerShares Dynamic Retail Portfolio (PMR)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016     2015      2014      2013      2012  
Per Share Operating Performance:               

Net asset value at beginning of period

   $ 35.69     $ 38.41     $ 33.15      $ 29.12       $ 25.98      $ 21.88  

Net investment income(a)

     0.12        0.25        0.22         0.32         0.66         0.16   

Net realized and unrealized gain (loss) on investments

     (1.21 )      (2.70 )      5.38         3.99         3.11         4.17   

Total from investment operations

     (1.09 )      (2.45 )      5.60        4.31         3.77        4.33  

Distributions to shareholders from:

               

Net investment income

     (0.17 )      (0.27 )      (0.34 )      (0.28 )       (0.63 )      (0.23 )

Net asset value at end of period

   $ 34.43     $ 35.69     $ 38.41      $ 33.15       $ 29.12      $ 25.98  

Market price at end of period(b)

   $ 34.46     $ 35.69     $ 38.42      $ 33.14       $ 29.11      $ 25.98  
Net Asset Value Total Return:(c)     (3.05 )%      (6.40 )%      16.97 %       14.81 %       14.87 %       20.06 % 
Market Price Total Return(c)     (2.96 )%      (6.42 )%      17.04 %       14.81 %       14.83 %       19.95 % 
Ratios/Supplemental Data:               

Net assets at end of period (000’s omitted)

   $ 22,382     $ 21,416     $ 38,410       $ 24,864       $ 24,750       $ 76,643   

Ratio to average net assets of:

               

Expenses, after Waivers

     0.63 %(d)      0.63 %      0.63 %       0.63 %       0.63 %       0.63 % 

Expenses, prior to Waivers

     0.98 %(d)      0.88 %      0.91 %       0.79 %       0.74 %       0.87 % 

Net investment income, after Waivers

     0.70 %(d)      0.67 %      0.61 %       0.96 %       2.59 %       0.75 % 

Portfolio turnover rate(e)

     75 %      129 %      111 %       184 %       83 %       111 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares Dynamic Semiconductors Portfolio (PSI)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016     2015     2014      2013     2012  
Per Share Operating Performance:             

Net asset value at beginning of period

   $ 24.50     $ 26.30     $ 20.62     $ 15.22       $ 15.75     $ 18.19  

Net investment income(a)

     0.07        0.10        0.25 (b)      0.10         0.11        0.06   

Net realized and unrealized gain (loss) on investments

     7.65        (1.86 )      5.88        5.41         (0.52 )      (2.47 ) 

Total from investment operations

     7.72        (1.76 )      6.13       5.51         (0.41 )     (2.41 )

Distribution to shareholder from:

             

Net investment income

     (0.07 )      (0.04 )      (0.33 )      (0.11 )       (0.12 )      (0.03 ) 

Return of capital

     —        —        (0.12 )      —         —        —   

Total distributions

     (0.07 )      (0.04 )      (0.45 )     (0.11 )       (0.12 )     (0.03 )

Net asset value at end of period

   $ 32.15     $ 24.50     $ 26.30     $ 20.62       $ 15.22     $ 15.75  

Market price at end of period(c)

   $ 32.17     $ 24.48     $ 26.31     $ 20.62       $ 15.19     $ 15.71  
Net Asset Value Total Return:(d)     31.59 %      (6.69 )%      29.90 %      36.38 %       (2.56 )%      (13.20 )% 
Market Price Total Return(d)     31.78 %      (6.80 )%      29.95 %      36.66 %       (2.50 )%      (13.47 )% 
Ratios/Supplemental Data:             

Net assets at end of period (000’s omitted)

   $ 104,483     $ 48,999     $ 78,911      $ 20,621       $ 16,744      $ 21,261   

Ratio to average net assets of:

             

Expenses, after Waivers

     0.63 %(e)      0.63 %      0.63 %      0.63 %       0.63 %      0.63 % 

Expenses, prior to Waivers

     0.67 %(e)      0.68 %      0.78 %      1.05 %       1.05 %      1.02 % 

Net investment income, after Waivers

     0.46 %(e)      0.38 %      1.03 %(b)      0.55 %       0.77 %      0.42 % 

Portfolio turnover rate(f)

     37 %      104 %      103 %      126 %       91 %      57 % 

 

(a)  Based on average shares outstanding.
(b)  Net investment income per share and the ratio of net investment income to average net assets include a significant dividend received of $16.50 per share owned of KLA-Tencor Corp. on November 26, 2014. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividend are $0.05 and 0.22%, respectively.
(c)  The mean between the last bid and ask prices.
(d)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(e)  Annualized.
(f)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   35  

 

 

Financial Highlights (continued)

 

PowerShares Dynamic Software Portfolio (PSJ)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016     2015      2014     2013     2012  
Per Share Operating Performance:             

Net asset value at beginning of period

   $ 42.20     $ 42.47     $ 33.96      $ 30.16      $ 26.87     $ 27.47  

Net investment income (loss)(a)

     (0.02 )      (0.08 )      0.11         (0.00 )(b)      (0.01 )      (0.07 ) 

Net realized and unrealized gain (loss) on investments

     4.78        (0.13 )      8.44         3.80        3.30        (0.53 ) 

Total from investment operations

     4.76        (0.21 )      8.55        3.80        3.29       (0.60 )

Distributions to shareholders from:

             

Net investment income

     —        (0.06 )      (0.04 )      —        —        —   

Net asset value at end of period

   $ 46.96     $ 42.20     $ 42.47      $ 33.96      $ 30.16     $ 26.87  

Market price at end of period(c)

   $ 47.01     $ 42.21     $ 42.48      $ 33.93      $ 30.12     $ 26.87  
Net Asset Value Total Return:(d)     11.28 %      (0.50 )%      25.18 %       12.60 %      12.24 %      (2.19 )% 
Market Price Total Return(d)     11.37 %      (0.50 )%      25.32 %       12.65 %      12.09 %      (2.22 )% 
Ratios/Supplemental Data:             

Net assets at end of period (000’s omitted)

   $ 84,523     $ 73,847     $ 57,329       $ 54,335      $ 48,257      $ 49,710   

Ratio to average net assets of:

             

Expenses, after Waivers

     0.63 %(e)      0.63 %      0.63 %       0.63 %      0.63 %      0.63 % 

Expenses, prior to Waivers

     0.65 %(e)      0.66 %      0.71 %       0.69 %      0.74 %      0.78 % 

Net investment income (loss), after Waivers

     (0.07 )%(e)      (0.19 )%      0.29 %       (0.01 )%      (0.03 )%      (0.29 )% 

Portfolio turnover rate(f)

     82 %      154 %      132 %       150 %      95 %      100 % 

 

(a)  Based on average shares outstanding.
(b)  Amount represents less than $0.005.
(c)  The mean between the last bid and ask prices.
(d)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(e)  Annualized.
(f)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

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Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

October 31, 2016

(Unaudited)

 

Note 1. Organization

PowerShares Exchange-Traded Fund Trust (the “Trust”) was organized as a Massachusetts business trust on June 9, 2000 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of October 31, 2016, the Trust offered fifty-three portfolios. This report includes the following portfolios:

 

Full Name

   

Short Name

PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)    “Dynamic Biotechnology & Genome Portfolio”
PowerShares Dynamic Building & Construction Portfolio (PKB)    “Dynamic Building & Construction Portfolio”
PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)    “Dynamic Energy Exploration & Production Portfolio”
PowerShares Dynamic Food & Beverage Portfolio (PBJ)    “Dynamic Food & Beverage Portfolio”
PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)    “Dynamic Leisure and Entertainment Portfolio”
PowerShares Dynamic Media Portfolio (PBS)    “Dynamic Media Portfolio”
PowerShares Dynamic Networking Portfolio (PXQ)    “Dynamic Networking Portfolio”
PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)    “Dynamic Oil & Gas Services Portfolio”
PowerShares Dynamic Pharmaceuticals Portfolio (PJP)    “Dynamic Pharmaceuticals Portfolio”
PowerShares Dynamic Retail Portfolio (PMR)    “Dynamic Retail Portfolio”
PowerShares Dynamic Semiconductors Portfolio (PSI)    “Dynamic Semiconductors Portfolio”
PowerShares Dynamic Software Portfolio (PSJ)    “Dynamic Software Portfolio”

Each portfolio (each, a “Fund”, and collectively, the “Funds”) represents a separate series of the Trust. The shares of the Funds are referred to herein as “Shares” or “Fund’s Shares.” Each Fund’s Shares are listed and traded on NYSE Arca, Inc.

The market price of each Share may differ to some degree from the Fund’s net asset value (“NAV”). Unlike conventional mutual funds, each Fund issues and redeems Shares on a continuous basis, at NAV, only in a large specified number of Shares, each called a “Creation Unit.” Creation Units are issued and redeemed principally in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”). Except when aggregated in Creation Units by Authorized Participants, the Shares are not individually redeemable securities of the Funds.

The investment objective of each Fund is to seek investment results that generally correspond (before fees and expenses) to the price and yield of its respective index listed below (each, an “Underlying Index”):

 

Fund

   

Underlying Index

Dynamic Biotechnology & Genome Portfolio    Dynamic Biotech & Genome IntellidexSM Index
Dynamic Building & Construction Portfolio    Dynamic Building & Construction IntellidexSM Index
Dynamic Energy Exploration & Production Portfolio    Dynamic Energy Exploration & Production IntellidexSM Index
Dynamic Food & Beverage Portfolio    Dynamic Food & Beverage IntellidexSM Index
Dynamic Leisure and Entertainment Portfolio    Dynamic Leisure & Entertainment IntellidexSM Index
Dynamic Media Portfolio    Dynamic Media IntellidexSM Index
Dynamic Networking Portfolio    Dynamic Networking IntellidexSM Index
Dynamic Oil & Gas Services Portfolio    Dynamic Oil Services IntellidexSM Index
Dynamic Pharmaceuticals Portfolio    Dynamic Pharmaceutical IntellidexSM Index
Dynamic Retail Portfolio    Dynamic Retail IntellidexSM Index
Dynamic Semiconductors Portfolio    Dynamic Semiconductor IntellidexSM Index
Dynamic Software Portfolio    Dynamic Software IntellidexSM Index

Note 2. Significant Accounting Policies

The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements, including estimates and assumptions related to taxation. Actual results could differ from these estimates. In addition, the

 

 

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Funds monitor for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. The following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.

A. Security Valuation

Securities, including restricted securities, are valued according to the following policies:

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining NAV per Share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day NAV per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts’) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the London world markets. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that Invesco PowerShares Capital Management LLC (the “Adviser”) determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith following procedures approved by the Board of Trustees. Issuer-specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

Each Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

 

 

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Valuations change in response to many factors, including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Other Risks

Index Risk. Unlike many investment companies, the Funds do not utilize investing strategies that seek returns in excess of their Underlying Indexes. Therefore, a Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.

Equity Risk. Equity risk is the risk that the value of the securities that each Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities that a Fund holds participate or factors relating to specific companies in which the Fund invests. For example, an adverse event, such as an unfavorable earnings report, may depress the value of securities a Fund holds; the price of securities may be particularly sensitive to general movements in the stock market; or a drop in the stock market may depress the price of most or all of the securities a Fund holds. In addition, securities of an issuer in the Fund’s portfolio may decline in price if the issuer fails to make anticipated dividend payments because, among other reasons, the issuer of the security experiences a decline in its financial condition.

Industry Concentration Risk. In following its methodology, each Fund’s Underlying Index from time to time will be concentrated to a significant degree in securities of issuers located in a single industry or a sector. To the extent that an Underlying Index concentrates in the securities of issuers in a particular industry or sector, each Fund will also concentrate its investments to approximately the same extent. By concentrating its investments in an industry or sector, a Fund may face more risks than if it were diversified broadly over numerous industries or sectors. In addition, at times, an industry or sector may be out of favor and underperform other industries or the market as a whole. Any factors detrimental to the performance of such industry or sector will disproportionately impact a Fund’s NAV.

Non-Diversified Fund Risk. Each Fund is non-diversified and can invest a greater portion of its assets in securities of individual issuers than diversified funds. As a result, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund. This may increase a Fund’s volatility and cause the performance of a relatively small number of issuers to have a greater impact on a Fund’s performance.

Non-Correlation Risk. Each Fund’s return may not match the return of its Underlying Index for a number of reasons. For example, each Fund incurs operating expenses not applicable to its Underlying Index, and incurs costs in buying and selling securities, especially when rebalancing the Fund’s securities holdings to reflect changes in the composition of its Underlying Index. In addition, the performance of each Fund and its Underlying Index may vary due to asset valuation differences and differences between each Fund’s portfolio and its Underlying Index resulting from legal restrictions, cost or liquidity constraints.

Small- and Mid-Capitalization Company Risk. Investing in securities of small- and mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established companies. These companies’ securities may be more volatile and less liquid than those of more established companies. These securities may have returns that vary, sometimes significantly, from the overall securities market. Often small- and mid-capitalization companies and the industries in which they focus are still evolving and, as a result, they may be more sensitive to changing market conditions

Portfolio Turnover Risk. The Funds may engage in frequent trading of their portfolio securities in connection with the rebalancing or adjustment of their respective Underlying Index. A portfolio turnover rate of 200%, for example, is equivalent to a Fund buying and selling all of its securities two times during the course of a year. A high portfolio turnover rate (such as 100% or more) could result in high brokerage costs for a Fund. While a high portfolio turnover rate can result in an increase in taxable capital gain distributions to a Fund’s shareholders, each Fund will seek to utilize an in-kind creation and redemption mechanism to minimize realization of capital gains to the extent possible.

C. Federal Income Taxes

Each Fund intends to comply with the provisions of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute substantially all of the Fund’s taxable earnings to its shareholders. As such, the Funds will not be subject to federal income taxes on otherwise taxable income (including net realized gains) that is distributed to the shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

Each Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed each Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing book and tax treatments for in-kind transactions, losses deferred due to wash sales, and passive foreign investment company adjustments, if any.

 

 

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The Funds file U.S. federal tax returns and tax returns in certain other jurisdictions. Generally, a Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.

D. Investment Transactions and Investment Income

Investment transactions are accounted for on a trade date basis. Realized gains and losses from the sale or disposition of securities are computed on the specific identified cost basis. Interest income is recorded on the accrual basis. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Realized gains, dividends and interest received by a Fund may give rise to withholding and other taxes imposed by foreign countries. Tax conventions between certain countries and the United States may reduce or eliminate such taxes.

The Funds may periodically participate in litigation related to each Fund’s investments. As such, the Funds may receive proceeds from litigation settlements. Any proceeds received are included in the Statements of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Corporate actions (including cash dividends) are recorded net of non-reclaimable foreign tax withholdings on the ex-date.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statements of Operations and the Statements of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of each Fund’s net asset value and, accordingly, they reduce each Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statements of Operations and the Statements of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between each Fund and the Adviser.

E. Country Determination

For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the Adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

F. Expenses

Expenses of the Trust that are directly identifiable to a specific Fund are applied to that Fund. Expenses of the Trust that are not readily identifiable to a specific Fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative net assets of each Fund.

Each Fund is responsible for all of its expenses, including the investment advisory fees, costs of transfer agency, custody, fund administration, legal, audit and other services, interest, taxes, brokerage commissions and other expenses connected with executions of portfolio transactions, sub-licensing fees related to its respective Underlying Index, any distribution fees or expenses, litigation expenses, fees payable to the Trust’s Board members who are not “interested persons” (as defined in the 1940 Act) of the Trust (the “Independent Trustees”), any Trustee who is not an affiliate of the Adviser or Distributor (or any of their affiliates) and who is otherwise an “interested person” of the Trust under the 1940 Act (an “Unaffiliated Trustee”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees and any Unaffiliated Trustee, acquired fund fees and expenses, if any, and extraordinary expenses.

To the extent a Fund invests in other investment companies, the expenses shown in the accompanying financial statements reflect the expenses of the Fund and do not include any expenses of the investment companies in which it invests. The effects of such investment companies’ expenses are included in the realized and unrealized gain or loss on the investments in the investment companies.

G. Dividends and Distributions to Shareholders

Each Fund declares and pays dividends from net investment income, if any, to its shareholders quarterly and records such dividends on ex-dividend date. Generally, each Fund distributes net realized taxable capital gains, if any, annually in cash and records them on ex-dividend date. Such distributions on a tax basis are determined in conformity with federal income tax regulations, which may differ from GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in such Fund’s financial statements as a tax return of capital at fiscal year-end.

H. Securities Lending

During the six-month period ended October 31, 2016, Dynamic Biotechnology & Genome Portfolio, Dynamic Energy Exploration & Production Portfolio, Dynamic Networking Portfolio, Dynamic Oil & Gas Services Portfolio, Dynamic Pharmaceuticals Portfolio and

 

 

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Dynamic Retail Portfolio participated in securities lending. Each Fund loaned portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% (105% for international securities) of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is invested in an affiliated money market fund and is shown as such on the Schedules of Investments. Each Fund bears the risk of loss with respect to the investment of collateral. It is the policy of these Funds to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, each Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to each Fund if, and to the extent that, the market value of the securities loaned were to increase, and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or each Fund. Upon termination, the borrower will return to each Fund the securities loaned and each Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. Each Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to each Fund. Some of these losses may be indemnified by the lending agent. Each Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Securities lending income on the Statements of Operations. The aggregate value of securities out on loan, if any, is shown on the Statements of Assets and Liabilities.

Note 3. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with the Adviser on behalf of each Fund, pursuant to which the Adviser has overall responsibility for the selection and ongoing monitoring of the Funds’ investments, managing the Funds’ business affairs and providing certain clerical, bookkeeping and other administrative services. Pursuant to that Investment Advisory Agreement, each Fund has agreed to pay the Adviser an annual fee of 0.50% of the Fund’s average daily net assets.

The Trust also has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Adviser on behalf of each Fund, pursuant to which the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses (excluding interest expenses, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund from exceeding 0.60% of the Fund’s average daily net assets per year (the “Expense Cap”), through at least August 31, 2017. Offering costs excluded from the Expense Cap for each Fund are: (a) initial legal fees pertaining to the Funds’ Shares offered for sale; (b) initial Securities and Exchange Commission and state registration fees; and (c) initial fees paid to be listed on an exchange. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2017. During its term, the Expense Agreement cannot be terminated or amended to increase the Expense Cap without approval of the Board of Trustees. The Adviser did not waive fees and/or pay Fund expenses during the period under this Expense Cap for Dynamic Biotechnology & Genome Portfolio, Dynamic Food & Beverage Portfolio, Dynamic Leisure and Entertainment Portfolio and Dynamic Pharmaceuticals Portfolio.

Further, through August 31, 2018, the Adviser has contractually agreed to waive a portion of each Fund’s management fee in an amount equal to 100% of the net advisory fees an affiliate of the Adviser receives that are attributable to certain of the Fund’s investments in money market funds managed by that affiliate (excluding investments of cash collateral from securities lending). The Adviser cannot discontinue this waiver prior to its expiration. This agreement is not subject to recapture by the Adviser.

For the six-month period ended October 31, 2016, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:

 

Dynamic Biotechnology & Genome Portfolio    $ 106   
Dynamic Building & Construction Portfolio      10,427   
Dynamic Energy Exploration & Production Portfolio      17,472   
Dynamic Food & Beverage Portfolio      153   
Dynamic Leisure and Entertainment Portfolio      100   
Dynamic Media Portfolio      10,450   
Dynamic Networking Portfolio      32,865   
Dynamic Oil & Gas Services Portfolio      27,614   
Dynamic Pharmaceuticals Portfolio      472   
Dynamic Retail Portfolio      34,032   
Dynamic Semiconductors Portfolio      12,982   
Dynamic Software Portfolio      9,249   

 

 

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The Expense Agreement provides that the fees waived or expenses borne by the Adviser are subject to recapture by the Adviser for up to three years from the date the fee was waived or expense was borne by the Adviser, but no recapture payment will be made by a Fund if it would result in the Fund exceeding its Expense Cap as specified above.

For the following Funds, the amounts available for potential future recapture by the Adviser under the Expense Agreement and the expiration schedule at October 31, 2016 are as follows:

 

     Total
Potential
Recapture
Amounts		      Potential Recapture Amounts
Expiring		  
      04/30/17      04/30/18      04/30/19      10/31/19  
Dynamic Building & Construction Portfolio    $ 55,300       $ —       $ 16,252       $ 28,684       $ 10,364   
Dynamic Energy Exploration & Production Portfolio      32,783         —         —         15,566         17,217   
Dynamic Media Portfolio      10,365         —         —         —         10,365   
Dynamic Networking Portfolio      215,419         58,890         61,547         62,173         32,809   
Dynamic Oil & Gas Services Portfolio      84,127         —         11,082         45,472         27,573   
Dynamic Retail Portfolio      213,840         52,831         65,416         61,610         33,983   
Dynamic Semiconductors Portfolio      169,524         69,191         54,742         32,664         12,927   
Dynamic Software Portfolio      104,358         34,792         41,026         19,345         9,195   

The Trust has entered into a Distribution Agreement with Invesco Distributors, Inc. (the “Distributor”), which serves as the distributor of Creation Units for each Fund. The Distributor does not maintain a secondary market in the Shares. The Funds are not charged any fees pursuant to the Distribution Agreement. The Distributor is an affiliate of the Adviser.

The Adviser has entered into a licensing agreement for each Fund with NYSE Group, Inc. (the “Licensor”). Each Underlying Index name trademark is owned by the Licensor. These trademarks have been licensed to the Adviser for use by the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust’s sub-licensing agreement with the Adviser. The Funds are required to pay the sub-licensing fees that are shown on the Statements of Operations. The Funds are not sponsored, endorsed, sold or promoted by the Licensor, and the Licensor makes no representation regarding the advisability of investing in any of the Funds.

The Trust has entered into service agreements whereby The Bank of New York Mellon, a wholly-owned subsidiary of The Bank of New York Mellon Corporation, serves as the administrator, custodian, fund accountant and transfer agent for each Fund.

Note 4. Investments in Affiliates

The 1940 Act defines “affiliated person” to include issuers of which a fund holds 5% or more of the outstanding voting securities. The Fund listed below has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the 1940 Act) of that issuer. The table below shows Dynamic Pharmaceuticals Portfolio’s transactions in, and earnings from, its investment in affiliates for the six-month period ended October 31, 2016.

Dynamic Pharmaceuticals Portfolio

 

     Value
April 30, 2016		      Purchases
at Cost		      Proceeds
from Sales		      Change in
Unrealized
Appreciation
(Depreciation)		      Realized
Gain (Loss)		      Value
October 31, 2016		      Dividend
Income		  
Heron Therapeutics, Inc.    $ 52,388,275       $ 2,369,069       $ (7,850,264 )     $ (14,884,912 )     $ (425,199 )     $ 31,596,969       $ —   

Note 5. Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

 

  Level 1 — Prices are determined using quoted prices in an active market for identical assets.

 

  Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

 

  Level 3 —

Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period),

 

 

   42  

 

 

 

  unobservable inputs may be used. Unobservable inputs reflect a Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

Except for the Fund listed below, as of October 31, 2016, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedules of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

     Investments in Securities  
     Level 1      Level 2      Level 3      Total  
Dynamic Biotechnology & Genome Portfolio            

Equity Securities

    $ 262,400,557       $ —       $ 338,011       $ 262,738,568   

Note 6. Tax Information

The amount and character of income and gains to be distributed are determined in accordance with federal income tax regulations, which may differ from GAAP. Reclassifications are made to the Funds’ capital accounts to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Funds’ fiscal year-end.

Capital loss carryforwards are calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforwards actually available for the Funds to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under Internal Revenue Code and related regulations based on the results of future transactions.

The Funds had capital loss carryforwards as of April 30, 2016, which expire as follows:

 

                          Post-effective/no
expiration		                
     2017      2018      2019      Short-Term      Long-Term      Total*      Expired  
Dynamic Biotechnology & Genome Portfolio    $ 34,286,844       $ 50,397,332       $ 12,898,182       $ 26,056,276       $ —       $ 123,638,634       $ 15,818,255   
Dynamic Building & Construction Portfolio      2,843,349         3,001,058         6,653,613         8,635,189         1,166,154         22,299,363         742,893   
Dynamic Energy Exploration & Production Portfolio      7,646,917         21,471,013         1,361,799         40,628,552         8,688,469         79,796,750         3,232,521   
Dynamic Food & Beverage Portfolio      7,585,250         10,245,302         —         35,415,240         1,541,903         54,787,695         1,260,041   
Dynamic Leisure and Entertainment Portfolio      2,895,936         2,889,449         2,356,106         24,167,870         —         32,309,361         2,111,801   
Dynamic Media Portfolio      4,930,761         5,161,647         6,294,489         50,786,045         677,811         67,850,753         2,505,039   
Dynamic Networking Portfolio      1,975,581         512,618         730,670         20,791,952         9,889,754         33,900,575         1,064,275   
Dynamic Oil & Gas Services Portfolio      24,680,663         85,028,926         35,877,910         35,323,845         19,045,978         199,957,322         7,909,602   
Dynamic Pharmaceuticals Portfolio      —         —         —         74,150,158         3,614         74,153,772         —   
Dynamic Retail Portfolio      2,427,604         1,816,180         2,176,015         12,778,354         310,526         19,508,679         1,908,967   
Dynamic Semiconductors Portfolio      14,001,359         10,902,954         2,120,823         10,315,328         979,531         38,319,995         10,196,415   
Dynamic Software Portfolio      7,095,351         2,938,722         3,242,208         11,274,588         —         24,550,869         1,542,190   

 

* Capital loss carryforwards as of the date listed above are reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

 

 

   43  

 

 

 

Note 7. Investment Transactions

For the six-month period ended October 31, 2016, the cost of securities purchased and proceeds from sales of securities (other than short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, if any) were as follows:

 

     Purchases      Sales  
Dynamic Biotechnology & Genome Portfolio    $ 106,237,318       $ 104,983,682   
Dynamic Building & Construction Portfolio      55,787,784         56,336,364   
Dynamic Energy Exploration & Production Portfolio      30,478,721         34,284,804   
Dynamic Food & Beverage Portfolio      171,798,321         172,902,346   
Dynamic Leisure and Entertainment Portfolio      106,699,972         104,325,319   
Dynamic Media Portfolio      40,124,297         39,940,486   
Dynamic Networking Portfolio      12,280,441         12,063,229   
Dynamic Oil & Gas Services Portfolio      24,289,834         23,851,812   
Dynamic Pharmaceuticals Portfolio      102,394,777         103,775,298   
Dynamic Retail Portfolio      16,234,182         14,553,683   
Dynamic Semiconductors Portfolio      26,001,811         25,453,102   
Dynamic Software Portfolio      64,344,456         64,185,110   

For the six-month period ended October 31, 2016, in-kind transactions associated with creations and redemptions were as follows:

 

     Cost of
Securities
Received		      Value of
Securities
Delivered		  
Dynamic Biotechnology & Genome Portfolio    $ 27,794,792       $ 56,163,922   
Dynamic Building & Construction Portfolio      74,804,383         51,764,823   
Dynamic Energy Exploration & Production Portfolio      33,604,478         41,081,272   
Dynamic Food & Beverage Portfolio      28,858,488         186,173,193   
Dynamic Leisure and Entertainment Portfolio      50,919,006         95,748,713   
Dynamic Media Portfolio      22,165,413         29,896,879   
Dynamic Networking Portfolio      15,709,264         7,772,935   
Dynamic Oil & Gas Services Portfolio      4,467,099         2,460,400   
Dynamic Pharmaceuticals Portfolio      48,530,284         232,512,417   
Dynamic Retail Portfolio      23,160,352         22,812,477   
Dynamic Semiconductors Portfolio      69,324,667         28,994,654   
Dynamic Software Portfolio      57,327,891         54,721,339   

Gains (losses) on in-kind transactions are generally not considered taxable gains (losses) for federal income tax purposes.

At October 31, 2016, the cost of investments on a tax basis includes adjustments for financial reporting purposes, as of the most recently completed federal income tax reporting period-end:

 

     Gross
Unrealized
Appreciation		      Gross
Unrealized
(Depreciation)		      Net
Unrealized
Appreciation
(Depreciation)		      Cost  
Dynamic Biotechnology & Genome Portfolio    $ 12,903,634       $ (37,751,399 )     $ (24,847,765 )     $ 287,586,333   
Dynamic Building & Construction Portfolio      4,882,657         (4,773,325 )       109,332         79,982,855   
Dynamic Energy Exploration & Production Portfolio      4,431,912         (11,935,589 )       (7,503,677 )       71,459,475   
Dynamic Food & Beverage Portfolio      10,086,881         (2,871,519 )       7,215,362         142,934,469   
Dynamic Leisure and Entertainment Portfolio      5,492,044         (4,722,615 )       769,429         99,745,371   
Dynamic Media Portfolio      6,316,294         (5,345,593 )       970,701         80,364,366   
Dynamic Networking Portfolio      3,282,494         (951,232 )       2,331,262         28,998,333   
Dynamic Oil & Gas Services Portfolio      1,246,903         (10,134,746 )       (8,887,843 )       52,644,788   
Dynamic Pharmaceuticals Portfolio      45,212,485         (245,606,435 )       (200,393,950 )       1,171,831,783   
Dynamic Retail Portfolio      235,873         (1,405,937 )       (1,170,064 )       23,596,061   
Dynamic Semiconductors Portfolio      11,905,316         (751,497 )       11,153,819         93,443,651   
Dynamic Software Portfolio      4,579,316         (2,025,763 )       2,553,553         82,077,824   

 

 

   44  

 

 

 

Note 8. Trustees’ and Officer’s Fees

Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to the Independent Trustees, any Unaffiliated Trustee, and an Officer of the Trust. The Trustee who is an “interested person” of the Trust does not receive any Trustees’ fees.

The Trust has adopted a deferred compensation plan (the “Plan”). Under the Plan, each Independent Trustee or Unaffiliated Trustee who has executed a Deferred Fee Agreement (a “Participating Trustee”) may defer receipt of all or a portion of his compensation (“Deferral Fees”). Such Deferral Fees are deemed to be invested in select PowerShares Funds. The Deferral Fees payable to the Participating Trustee are valued as of the date such Deferral Fees would have been paid to the Participating Trustee. The value increases with contributions or with increases in the value of the Shares selected, and the value decreases with distributions or with declines in the value of the Shares selected. Obligations under the Plan represent unsecured claims against the general assets of the Funds.

Note 9. Capital

Shares are created and redeemed by each Fund only in Creation Units of 50,000 Shares. Only Authorized Participants are permitted to purchase or redeem Creation Units from the Funds. Such transactions are principally permitted in exchange for Deposit Securities, with a balancing cash component to equate the transaction to the NAV per Share of a Fund of the Trust on the transaction date. However, for all Funds, cash in an amount equivalent to the value of certain securities may be substituted, generally when the securities are not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances.

To the extent that the Funds permit transactions in exchange for Deposit Securities, each Fund may issue Shares in advance of receipt of Deposit Securities subject to various conditions, including a requirement to maintain on deposit with the Trust cash at least equal to 105% of the market value of the missing Deposit Securities. In accordance with the Trust’s Participant Agreement, Creation Units will be issued to an Authorized Participant, notwithstanding the fact that the corresponding Deposit Securities have not been received in part or in whole, in reliance on the undertaking of the Authorized Participant to deliver the missing Deposit Securities as soon as possible, which undertaking shall be secured by the Authorized Participant’s delivery and maintenance of collateral consisting of cash in the form of U.S. dollars in immediately available funds having a value (marked-to-market daily) at least equal to 105%, which the Adviser may change from time to time, of the value of the missing Deposit Securities.

Certain transaction fees may be charged by the Funds for creations and redemptions, which are treated as increases in capital.

Transactions in each Fund’s Shares are disclosed in detail in the Statements of Changes in Net Assets.

Note 10. Indemnifications

Under the Trust’s organizational documents, its officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. Each Independent Trustee and Unaffiliated Trustee is also indemnified against certain liabilities arising out of the performance of his duties to the Trust pursuant to an Indemnification Agreement between such trustee and the Trust. Additionally, in the normal course of business, the Trust enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred. However, based on experience, the Trust believes the risk of loss to be remote.

 

 

   45  

 

 

Fees and Expenses

 

As a shareholder of a Fund of the PowerShares Exchange-Traded Fund Trust, you incur advisory fees and other Fund expenses. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended October 31, 2016.

Actual Expenses

The first line in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line in the following table provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed annualized rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs, such as sales charges and brokerage commissions. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

    Beginning
Account Value
May 1, 2016		     Ending
Account Value
October 31, 2016		     Annualized
Expense Ratio
Based on the
Six-Month Period		     Expenses Paid
During the
Six-Month  Period(1)		  
PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)        

Actual

   $ 1,000.00      $ 950.57        0.59 %    $ 2.90   

Hypothetical (5% return before expenses)

     1,000.00        1,022.23        0.59        3.01   
PowerShares Dynamic Building & Construction Portfolio (PKB)        

Actual

     1,000.00        983.37        0.63        3.15   

Hypothetical (5% return before expenses)

     1,000.00        1,022.03        0.63        3.21   
PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)        

Actual

     1,000.00        966.90        0.96        4.76   

Hypothetical (5% return before expenses)

     1,000.00        1,020.37        0.96        4.89   
PowerShares Dynamic Food & Beverage Portfolio (PBJ)        

Actual

     1,000.00        1,017.31        0.59        3.00   

Hypothetical (5% return before expenses)

     1,000.00        1,022.23        0.59        3.01   
PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)        

Actual

     1,000.00        1,027.01        0.62        3.17   

Hypothetical (5% return before expenses)

     1,000.00        1,022.08        0.62        3.16   
PowerShares Dynamic Media Portfolio (PBS)        

Actual

     1,000.00        980.95        0.63        3.15   

Hypothetical (5% return before expenses)

     1,000.00        1,022.03        0.63        3.21   
PowerShares Dynamic Networking Portfolio (PXQ)        

Actual

     1,000.00        1,151.31        0.63        3.42   

Hypothetical (5% return before expenses)

     1,000.00        1,022.03        0.63        3.21   
PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)        

Actual

     1,000.00        817.22        0.63        2.89   

Hypothetical (5% return before expenses)

     1,000.00        1,022.03        0.63        3.21   

 

 

   46  

 

 

Fees and Expenses (continued)

 

    Beginning
Account Value
May 1, 2016		     Ending
Account Value
October 31, 2016		     Annualized
Expense Ratio
Based on the
Six-Month Period		     Expenses Paid
During the
Six-Month  Period(1)		  
PowerShares Dynamic Pharmaceuticals Portfolio (PJP)        

Actual

   $ 1,000.00      $ 911.97        0.57 %    $ 2.75   

Hypothetical (5% return before expenses)

     1,000.00        1,022.33        0.57        2.91   
PowerShares Dynamic Retail Portfolio (PMR)        

Actual

     1,000.00        969.55        0.63        3.13   

Hypothetical (5% return before expenses)

     1,000.00        1,022.03        0.63        3.21   
PowerShares Dynamic Semiconductors Portfolio (PSI)        

Actual

     1,000.00        1,315.93        0.63        3.68   

Hypothetical (5% return before expenses)

     1,000.00        1,022.03        0.63        3.21   
PowerShares Dynamic Software Portfolio (PSJ)        

Actual

     1,000.00        1,112.81        0.63        3.36   

Hypothetical (5% return before expenses)

     1,000.00        1,022.03        0.63        3.21   

 

(1)  Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six-month period ended October 31, 2016. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the results by 184/365.

 

 

   47  

 

 

 

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Proxy Voting Policies and Procedures

A description of the Trust’s proxy voting policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available, without charge and upon request, by calling (800) 983-0903. This information is also available on the Securities and Exchange Commission’s (“Commission”) website at www.sec.gov.

Information regarding how each Fund voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended June 30, is also available, without charge and upon request, by (i) calling (800) 983-0903; or (ii) accessing the Trust’s Form N-PX on the Commission’s website at www.sec.gov.

Quarterly Portfolios

The Trust files its complete schedule of portfolio holdings for the Funds with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Trust’s Forms N-Q are available on the Commission’s website at www.sec.gov. The Trust’s Forms N-Q may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330.

Frequency Distribution of Discounts and Premiums

A table showing the number of days the market price of each Fund’s shares was greater than the Fund’s net asset value, and the number of days it was less than the Fund’s net asset value (i.e., premium or discount) for the most recently completed calendar year, and the calendar quarters since that year end (or the life of the Fund, if shorter) may be found at the Fund’s website at www.invescopowershares.com.

 

P-PS-SAR-7    LOGO

©2016 Invesco PowerShares Capital Management LLC

3500 Lacey Road, Suite 700

Downers Grove, IL 60515

   
powershares.com    800 983 0903   LOGO   @PowerShares   

LOGO

 

     October 31, 2016

2016 Semi-Annual Report to Shareholders

 

PYZ    PowerShares DWA Basic Materials Momentum Portfolio
PEZ    PowerShares DWA Consumer Cyclicals Momentum Portfolio
PSL    PowerShares DWA Consumer Staples Momentum Portfolio
PXI    PowerShares DWA Energy Momentum Portfolio
PFI    PowerShares DWA Financial Momentum Portfolio
PTH    PowerShares DWA Healthcare Momentum Portfolio
PRN    PowerShares DWA Industrials Momentum Portfolio
PTF    PowerShares DWA Technology Momentum Portfolio
PUI    PowerShares DWA Utilities Momentum Portfolio
PNQI    PowerShares NASDAQ Internet Portfolio

 

Table of Contents

 

Sector Portfolios   
Schedules of Investments   

PowerShares DWA Basic Materials Momentum Portfolio (PYZ)

     3   

PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)

      5   

PowerShares DWA Consumer Staples Momentum Portfolio (PSL)

      8   

PowerShares DWA Energy Momentum Portfolio (PXI)

      10   

PowerShares DWA Financial Momentum Portfolio (PFI)

      12   

PowerShares DWA Healthcare Momentum Portfolio (PTH)

     14   

PowerShares DWA Industrials Momentum Portfolio (PRN)

      16   

PowerShares DWA Technology Momentum Portfolio (PTF)

      18   

PowerShares DWA Utilities Momentum Portfolio (PUI)

      20   

PowerShares NASDAQ Internet Portfolio (PNQI)

     22   
Statements of Assets and Liabilities      24   
Statements of Operations      26   
Statements of Changes in Net Assets      28   
Financial Highlights      32   
Notes to Financial Statements      38   
Fees and Expenses      47   

 

 

   2  

 

 

PowerShares DWA Basic Materials Momentum Portfolio (PYZ)

October 31, 2016

(Unaudited)

 

Portfolio Composition  

Sub-Industry Breakdown
(% of the Fund’s Net Assets)

as of October 31, 2016

  
Specialty Chemicals      48.9   
Steel      8.6   
Paper Packaging      8.5   
Gold      8.5   
Diversified Chemicals      5.1   
Paper Products      4.5   
Oil & Gas Equipment & Services      3.9   
Industrial Gases      3.4   
Forest Products      2.4   
Oil & Gas Refining & Marketing      2.3   
Aluminum      2.0   
Aerospace & Defense      1.9   
Money Market Fund Plus Other Assets Less Liabilities      0.0   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks—100.0%   
   Aerospace & Defense—1.9%   
  156,463       Arconic, Inc.    $ 3,384,912   
     

 

 

  
   Aluminum—2.0%   
  49,836       Kaiser Aluminum Corp.      3,612,612   
     

 

 

  
   Diversified Chemicals—5.1%   
  554,207       Chemours Co. (The)      9,105,621   
     

 

 

  
   Forest Products—2.4%   
  234,182       Louisiana-Pacific Corp.(b)      4,297,240   
     

 

 

  
   Gold—8.5%   
  659,391       Gold Resource Corp.      3,745,341   
  162,416       Newmont Mining Corp.      6,015,889   
  77,910       Royal Gold, Inc.      5,361,766   
     

 

 

  
        15,122,996   
     

 

 

  
   Industrial Gases—3.4%   
  46,025       Air Products & Chemicals, Inc.      6,140,655   
     

 

 

  
   Oil & Gas Equipment & Services—3.9%   
  151,952       US Silica Holdings, Inc.      7,018,663   
     

 

 

  
   Oil & Gas Refining & Marketing—2.3%   
  159,534       Green Plains, Inc.      4,147,884   
     

 

 

  
   Paper Packaging—8.5%   
  85,577       Avery Dennison Corp.      5,972,419   
  203,267       International Paper Co.      9,153,113   
     

 

 

  
        15,125,532   
     

 

 

  
   Paper Products—4.5%   
  212,862       KapStone Paper and Packaging Corp.      3,861,317   
Number
of Shares		           Value  
   Common Stocks (continued)   
   Paper Products (continued)   
  51,660       Neenah Paper, Inc.    $ 4,127,634   
     

 

 

  
        7,988,951   
     

 

 

  
   Specialty Chemicals—48.9%   
  70,015       Albemarle Corp.      5,849,753   
  86,991       Ashland Global Holdings, Inc.      9,719,504   
  78,712       Celanese Corp., Series A      5,739,679   
  55,641       Ecolab, Inc.      6,352,533   
  73,365       H.B. Fuller Co.      3,086,466   
  91,377       Ingevity Corp.(b)      3,783,008   
  79,695       Innospec, Inc.      4,801,624   
  50,735       International Flavors & Fragrances, Inc.      6,635,123   
  127,117       Kraton Corp.(b)      3,258,009   
  61,401       Minerals Technologies, Inc.      4,126,147   
  16,472       NewMarket Corp.      6,603,790   
  208,744       PolyOne Corp.      6,101,587   
  72,611       PPG Industries, Inc.      6,762,262   
  47,612       Quaker Chemical Corp.      5,118,290   
  94,372       RPM International, Inc.      4,486,445   
  67,647       Sensient Technologies Corp.      5,040,378   
     

 

 

  
        87,464,598   
     

 

 

  
   Steel—8.6%   
  157,648       Schnitzer Steel Industries, Inc., Class A      3,807,199   
  230,927       Steel Dynamics, Inc.      6,341,255   
  110,856       Worthington Industries, Inc.      5,210,232   
     

 

 

  
        15,358,686   
     

 

 

  
   Total Common Stocks
(Cost $174,857,308)		      178,768,350   
     

 

 

  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   3  

 

 

PowerShares DWA Basic Materials Momentum Portfolio (PYZ) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Money Market Fund—0.1%   
  158,454       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(c)
(Cost $158,454)		    $ 158,454   
     

 

 

  
   Total Investments
(Cost $175,015,762)—100.1%		      178,926,804   
   Other assets less liabilities—(0.1)%      (154,587 ) 
     

 

 

  
   Net Assets—100.0%    $ 178,772,217   
     

 

 

  

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  Non-income producing security.
(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   4  

 

 

PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Apparel Retail      10.4   
Home Entertainment Software      9.8   
Internet Retail      9.5   
Restaurants      8.5   
Automotive Retail      6.0   
Specialty Stores      5.7   
Auto Parts & Equipment      4.0   
Airlines      3.9   
Casinos & Gaming      3.4   
Cable & Satellite      3.1   
Leisure Facilities      2.6   
Home Improvement Retail      2.5   
Automobile Manufacturers      2.5   
Financial Exchanges & Data      2.3   
Hypermarkets & Super Centers      2.2   
Oil & Gas Refining & Marketing      2.2   
Diversified Support Services      2.2   
Industrial Machinery      2.0   
Household Appliances      2.0   
Tires & Rubber      2.0   
Trucking      1.8   
Personal Products      1.6   
Homebuilding      1.5   
Specialized REITs      1.4   
Home Furnishings      1.3   
Leisure Products      1.3   
Consumer Electronics      1.3   
Internet & Direct Marketing Retail      1.1   
Internet Software & Services      1.0   
Movies & Entertainment      0.9   
Money Market Funds Plus Other Assets Less Liabilities      0.0   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   5  

 

 

Schedule of Investments(a)

PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests—100.0%    
   Airlines—3.9%   
  23,940       Hawaiian Holdings, Inc.(b)    $ 1,077,899   
  22,096       SkyWest, Inc.      666,194   
     

 

 

  
        1,744,093   
     

 

 

  
   Apparel Retail—10.4%   
  15,902       Burlington Stores, Inc.(b)      1,191,696   
  32,613       Ross Stores, Inc.      2,039,617   
  18,768       TJX Cos., Inc. (The)      1,384,140   
     

 

 

  
        4,615,453   
     

 

 

  
   Auto Parts & Equipment—4.0%   
  7,458       Dorman Products, Inc.(b)      479,102   
  10,456       Drew Industries, Inc.      936,335   
  15,663       Superior Industries International, Inc.      383,743   
     

 

 

  
        1,799,180   
     

 

 

  
   Automobile Manufacturers—2.5%   
  13,812       Thor Industries, Inc.      1,095,430   
     

 

 

  
   Automotive Retail—6.0%   
  10,190       O’Reilly Automotive, Inc.(b)      2,694,644   
     

 

 

  
   Cable & Satellite—3.1%   
  5,574       Charter Communications, Inc., Class A(b)      1,392,887   
     

 

 

  
   Casinos & Gaming—3.4%   
  32,200       Boyd Gaming Corp.(b)      575,092   
  9,885       Wynn Resorts Ltd.      934,627   
     

 

 

  
        1,509,719   
     

 

 

  
   Consumer Electronics—1.3%   
  8,015       Universal Electronics, Inc.(b)      562,252   
     

 

 

  
   Diversified Support Services—2.2%   
  22,657       KAR Auction Services, Inc.      964,735   
     

 

 

  
   Financial Exchanges & Data—2.3%   
  8,499       S&P Global, Inc.      1,035,603   
     

 

 

  
   Home Entertainment Software—9.8%   
  28,384       Activision Blizzard, Inc.      1,225,337   
  21,564       Electronic Arts, Inc.(b)      1,693,205   
  32,717       Take-Two Interactive Software, Inc.(b)      1,452,308   
     

 

 

  
        4,370,850   
     

 

 

  
   Home Furnishings—1.3%   
  12,963       Leggett & Platt, Inc.      594,742   
     

 

 

  
   Home Improvement Retail—2.5%   
  9,294       Home Depot, Inc. (The)      1,133,961   
     

 

 

  
   Homebuilding—1.5%   
  21,979       LGI Homes, Inc.(b)(c)      654,095   
     

 

 

  
   Household Appliances—2.0%   
  6,024       Whirlpool Corp.      902,516   
     

 

 

  
   Hypermarkets & Super Centers—2.2%   
  6,724       Costco Wholesale Corp.      994,278   
     

 

 

  
   Industrial Machinery—2.0%   
  8,119       Middleby Corp. (The)(b)      910,221   
     

 

 

  
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Internet & Direct Marketing Retail—1.1%   
  17,939       Duluth Holdings, Inc., Class B(b)(c)    $ 487,044   
     

 

 

  
   Internet Retail—9.5%   
  1,495       Amazon.com, Inc.(b)      1,180,781   
  2,065       Priceline Group, Inc. (The)(b)      3,044,285   
     

 

 

  
        4,225,066   
     

 

 

  
   Internet Software & Services—1.0%   
  39,660       Quotient Technology, Inc.(b)      420,396   
     

 

 

  
   Leisure Facilities—2.6%   
  7,264       Vail Resorts, Inc.      1,158,172   
     

 

 

  
   Leisure Products—1.3%   
  33,385       Nautilus, Inc.(b)      587,576   
     

 

 

  
   Movies & Entertainment—0.9%   
  22,772       World Wrestling Entertainment, Inc., Class A(c)      402,609   
     

 

 

  
   Oil & Gas Refining & Marketing—2.2%   
  104,859       Clean Energy Fuels Corp.(b)      430,971   
  6,981       REX American Resources Corp.(b)      551,429   
     

 

 

  
        982,400   
     

 

 

  
   Personal Products—1.6%   
  11,177       Nu Skin Enterprises, Inc., Class A      689,062   
     

 

 

  
   Restaurants—8.5%   
  17,913       Domino’s Pizza, Inc.      3,031,596   
  10,202       Papa John’s International, Inc.      769,741   
     

 

 

  
        3,801,337   
     

 

 

  
   Specialized REITs—1.4%   
  9,933       Lamar Advertising Co., Class A REIT      630,249   
     

 

 

  
   Specialty Stores—5.7%   
  15,667       Dick’s Sporting Goods, Inc.      871,869   
  28,593       Party City Holdco, Inc.(b)      464,636   
  4,969       Ulta Salon, Cosmetics & Fragrance, Inc.(b)      1,209,156   
     

 

 

  
        2,545,661   
     

 

 

  
   Tires & Rubber—2.0%   
  30,846       Goodyear Tire & Rubber Co. (The)      895,459   
     

 

 

  
   Trucking—1.8%   
  24,576       Avis Budget Group, Inc.(b)      795,279   
     

 

 

  
   Total Common Stocks and Other Equity Interests
(Cost $42,745,474)		      44,594,969   
     

 

 

  
   Money Market Fund—0.2%   
  97,147       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(d)
(Cost $97,147)		      97,147   
     

 

 

  
   Total Investments
(excluding investments purchased with cash collateral from securities on loan)
(Cost $42,842,621)—100.2%		      44,692,116   
     

 

 

  
     
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   6  

 

 

PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Investments Purchased with Cash Collateral from Securities on Loan    
     
   Money Market Fund—2.2%   
  960,550       Invesco Government & Agency Portfolio—Institutional Class,
0.29%(d)(e)
(Cost $960,550)		    $ 960,550   
     

 

 

  
   Total Investments
(Cost $43,803,171)—102.4%		      45,652,666   
   Other assets less liabilities—(2.4)%      (1,054,307 ) 
     

 

 

  
   Net Assets—100.0%    $ 44,598,359   
     

 

 

  

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b) Non-income producing security.
(c)  All or a portion of this security was out on loan at October 31, 2016.
(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2H.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   7  

 

 

PowerShares DWA Consumer Staples Momentum Portfolio (PSL)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Packaged Foods & Meats      26.9   
Household Products      15.5   
Tobacco      12.1   
Personal Products      9.7   
Soft Drinks      7.9   
Agricultural Products      6.5   
Education Services      5.2   
Distillers & Vintners      4.4   
Housewares & Specialties      3.4   
Internet Software & Services      3.0   
Internet Retail      2.8   
Health Care Facilities      2.6   
Money Market Funds Plus Other Assets Less Liabilities      (0.0)   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks—100.0%   
   Agricultural Products—6.5%   
  105,397       Fresh Del Monte Produce, Inc.    $ 6,360,709   
  65,116       Ingredion, Inc.      8,541,266   
     

 

 

  
        14,901,975   
     

 

 

  
   Distillers & Vintners—4.4%   
  61,259       Constellation Brands, Inc., Class A      10,237,604   
     

 

 

  
   Education Services—5.2%   
  91,069       Bright Horizons Family Solutions, Inc.(b)      6,093,427   
  263,034       DeVry Education Group, Inc.      5,970,872   
     

 

 

  
        12,064,299   
     

 

 

  
   Health Care Facilities—2.6%   
  96,154       VCA, Inc.(b)      5,909,625   
     

 

 

  
   Household Products—15.5%   
  220,140       Church & Dwight Co., Inc.      10,623,957   
  128,412       Energizer Holdings, Inc.      5,972,442   
  57,078       Kimberly-Clark Corp.      6,530,294   
  54,043       Spectrum Brands Holdings, Inc.      7,308,775   
  49,176       WD-40 Co.      5,243,391   
     

 

 

  
        35,678,859   
     

 

 

  
   Housewares & Specialties—3.4%   
  162,162       Newell Brands, Inc.      7,787,019   
     

 

 

  
   Internet Retail—2.8%   
  202,221       Nutrisystem, Inc.      6,410,406   
     

 

 

  
   Internet Software & Services—3.0%   
  215,778       Yelp, Inc., Class A(b)      7,047,309   
     

 

 

  
Number
of Shares		           Value  
   Common Stocks (continued)   
   Packaged Foods & Meats—26.9%   
  335,507       Amplify Snack Brands, Inc.(b)(c)    $ 4,861,496   
  123,465       B&G Foods, Inc.      5,234,916   
  93,939       Calavo Growers, Inc.      5,556,492   
  55,196       JM Smucker Co. (The)      7,247,787   
  50,518       Lancaster Colony Corp.      6,600,177   
  88,653       McCormick & Co., Inc.      8,499,163   
  151,768       Pinnacle Foods, Inc.      7,803,910   
  98,629       Post Holdings, Inc.(b)      7,518,489   
  122,982       Tyson Foods, Inc., Class A      8,713,275   
     

 

 

  
        62,035,705   
     

 

 

  
   Personal Products—9.7%   
  1,137,925       Avon Products, Inc.      7,453,409   
  98,424       Estee Lauder Cos., Inc. (The), Class A      8,575,683   
  50,377       USANA Health Sciences, Inc.(b)      6,473,444   
     

 

 

  
        22,502,536   
     

 

 

  
   Soft Drinks—7.9%   
  93,839       Dr Pepper Snapple Group, Inc.      8,238,126   
  70,158       Monster Beverage Corp.(b)      10,126,605   
     

 

 

  
        18,364,731   
     

 

 

  
   Tobacco—12.1%   
  172,366       Altria Group, Inc.      11,396,840   
  68,096       Philip Morris International, Inc.      6,567,178   
  181,546       Reynolds American, Inc.      9,999,554   
     

 

 

  
        27,963,572   
     

 

 

  
   Total Common Stocks
(Cost $223,814,604)		      230,903,640   
     

 

 

  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   8  

 

 

PowerShares DWA Consumer Staples Momentum Portfolio (PSL) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Money Market Fund—0.1%   
  241,533       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(d)
(Cost $241,533)		    $ 241,533   
     

 

 

  
   Total Investments
(excluding investments purchased with cash collateral from securities on loan)
(Cost $224,056,137)—100.1%		      231,145,173   
     

 

 

  
     
   Investments Purchased with Cash Collateral from Securities on Loan    
     
   Money Market Fund—1.7%   
  3,755,350       Invesco Government & Agency Portfolio—Institutional Class, 0.29%(d)(e)
(Cost $3,755,350)		      3,755,350   
     

 

 

  
   Total Investments
(Cost $227,811,487)—101.8%		      234,900,523   
   Other assets less liabilities—(1.8)%      (4,048,668 ) 
     

 

 

  
   Net Assets—100.0%    $ 230,851,855   
     

 

 

  

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  Non-income producing security.
(c)  All or a portion of this security was out on loan at October 31, 2016.
(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2H.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   9  

 

 

PowerShares DWA Energy Momentum Portfolio (PXI)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Oil & Gas Exploration & Production      59.8   
Oil & Gas Storage & Transportation      9.2   
Oil & Gas Equipment & Services      7.7   
Oil & Gas Drilling      6.8   
Integrated Oil & Gas      6.4   
Coal & Consumable Fuels      5.1   
Oil & Gas Refining & Marketing      3.6   
Specialty Chemicals      1.4   
Money Market Fund Plus Other Assets Less Liabilities      0.0   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks—100.0%   
   Coal & Consumable Fuels—5.1%   
  382,135       Cloud Peak Energy, Inc.(b)    $ 2,353,951   
  228,983       CONSOL Energy, Inc.      3,881,262   
     

 

 

  
        6,235,213   
     

 

 

  
   Integrated Oil & Gas—6.4%   
  28,245       Chevron Corp.      2,958,664   
  66,650       Occidental Petroleum Corp.      4,859,451   
     

 

 

  
        7,818,115   
     

 

 

  
   Oil & Gas Drilling—6.8%   
  41,154       Helmerich & Payne, Inc.      2,597,229   
  132,728       Patterson-UTI Energy, Inc.      2,983,725   
  158,027       Unit Corp.(b)      2,707,003   
     

 

 

  
        8,287,957   
     

 

 

  
   Oil & Gas Equipment & Services—7.7%   
  132,176       Archrock, Inc.      1,533,242   
  70,821       Halliburton Co.      3,257,766   
  291,049       Helix Energy Solutions Group, Inc.(b)      2,537,947   
  113,274       RPC, Inc.(b)      1,956,242   
     

 

 

  
        9,285,197   
     

 

 

  
   Oil & Gas Exploration & Production—59.8%   
  226,128       Callon Petroleum Co.(b)      2,937,403   
  71,183       Carrizo Oil & Gas, Inc.(b)      2,408,121   
  420,062       Chesapeake Energy Corp.(b)      2,314,541   
  27,810       Cimarex Energy Co.      3,591,105   
  34,921       Clayton Williams Energy, Inc.(b)      3,048,952   
  56,023       Concho Resources, Inc.(b)      7,111,560   
  72,184       Continental Resources, Inc.(b)      3,530,519   
  66,693       Diamondback Energy, Inc.(b)      6,088,404   
  34,681       EOG Resources, Inc.      3,135,856   
  77,527       Newfield Exploration Co.(b)      3,146,821   
  289,626       Oasis Petroleum, Inc.(b)      3,038,177   
  135,638       Parsley Energy, Inc., Class A(b)      4,462,490   
Number
of Shares		           Value  
   Common Stocks (continued)   
   Oil & Gas Exploration & Production (continued)   
  57,887       PDC Energy, Inc.(b)    $ 3,550,210   
  36,446       Pioneer Natural Resources Co.      6,524,563   
  146,841       QEP Resources, Inc.      2,359,735   
  154,286       Rice Energy, Inc.(b)      3,408,178   
  56,920       RSP Permian, Inc.(b)      2,054,812   
  288,754       Sanchez Energy Corp.(b)      1,839,363   
  136,422       SM Energy Co.      4,587,872   
  315,447       WPX Energy, Inc.(b)      3,425,754   
     

 

 

  
        72,564,436   
     

 

 

  
   Oil & Gas Refining & Marketing—3.6%   
  99,645       Marathon Petroleum Corp.      4,343,526   
     

 

 

  
   Oil & Gas Storage & Transportation—9.2%   
  153,540       Cheniere Energy, Inc.(b)      5,788,458   
  57,370       SemGroup Corp., Class A      1,850,182   
  79,193       Targa Resources Corp.      3,476,573   
     

 

 

  
        11,115,213   
     

 

 

  
   Specialty Chemicals—1.4%   
  139,438       Flotek Industries, Inc.(b)      1,642,580   
     

 

 

  
   Total Common Stocks
(Cost $107,703,775)		      121,292,237   
     

 

 

  
     
   Money Market Fund—0.1%   
  118,057       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(c)
(Cost $118,057)		      118,057   
     

 

 

  
   Total Investments
(Cost $107,821,832)—100.1%		      121,410,294   
   Other assets less liabilities—(0.1)%      (96,623 ) 
     

 

 

  
   Net Assets—100.0%    $ 121,313,671   
     

 

 

  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   10  

 

 

PowerShares DWA Energy Momentum Portfolio (PXI) (continued)

October 31, 2016

(Unaudited)

 

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  Non-income producing security.
(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   11  

 

 

PowerShares DWA Financial Momentum Portfolio (PFI)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Retail REITs      23.1   
Specialized REITs      12.7   
Regional Banks      11.4   
Residential REITs      10.5   
Financial Exchanges & Data      7.0   
Reinsurance      6.5   
Life & Health Insurance      5.4   
Property & Casualty Insurance      5.0   
Data Processing & Outsourced Services      4.2   
Industrial REITs      4.0   
Health Care REITs      3.5   
Office REITs      3.5   
Multi-line Insurance      3.1   
Money Market Fund Plus Other Assets Less Liabilities      0.1   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity
Interests—99.9%		    
   Data Processing & Outsourced Services—4.2%   
  5,376       MasterCard, Inc., Class A    $ 575,339   
  6,554       Visa, Inc., Class A      540,771   
     

 

 

  
        1,116,110   
     

 

 

  
   Financial Exchanges & Data—7.0%   
  6,810       MarketAxess Holdings, Inc.      1,026,676   
  4,896       MSCI, Inc.      392,610   
  7,068       Nasdaq, Inc.      452,140   
     

 

 

  
        1,871,426   
     

 

 

  
   Health Care REITs—3.5%   
  26,571       CareTrust REIT, Inc. REIT      374,120   
  7,332       National Health Investors, Inc. REIT      555,472   
     

 

 

  
        929,592   
     

 

 

  
   Industrial REITs—4.0%   
  8,836       EastGroup Properties, Inc. REIT      600,053   
  17,312       First Industrial Realty Trust, Inc. REIT      457,210   
     

 

 

  
        1,057,263   
     

 

 

  
   Life & Health Insurance—5.4%   
  88,155       Genworth Financial, Inc., Class A(b)      364,962   
  10,465       Principal Financial Group, Inc.      571,389   
  8,074       Torchmark Corp.      511,972   
     

 

 

  
        1,448,323   
     

 

 

  
   Multi-line Insurance—3.1%   
  5,465       Assurant, Inc.      440,042   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Multi-line Insurance (continued)   
  11,120       Horace Mann Educators Corp.    $ 399,764   
     

 

 

  
        839,806   
     

 

 

  
   Office REITs—3.5%   
  11,465       Douglas Emmett, Inc. REIT      418,473   
  10,118       Highwoods Properties, Inc. REIT      502,156   
     

 

 

  
        920,629   
     

 

 

  
   Property & Casualty Insurance—5.0%   
  8,281       Allstate Corp. (The)      562,280   
  6,690       AMERISAFE, Inc.      371,964   
  5,634       Cincinnati Financial Corp.      398,774   
     

 

 

  
        1,333,018   
     

 

 

  
   Regional Banks—11.4%   
  11,733       Ameris Bancorp      425,908   
  8,238       Eagle Bancorp, Inc.(b)      404,898   
  17,767       Home BancShares, Inc.      382,168   
  8,416       Pinnacle Financial Partners, Inc.      434,266   
  11,562       Renasant Corp.      390,102   
  13,097       Synovus Financial Corp.      433,118   
  15,421       Western Alliance Bancorp(b)      576,128   
     

 

 

  
        3,046,588   
     

 

 

  
   Reinsurance—6.5%   
  6,907       Endurance Specialty Holdings Ltd.      635,099   
  3,035       Everest Re Group Ltd.      617,683   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   12  

 

 

PowerShares DWA Financial Momentum Portfolio (PFI) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Reinsurance (continued)   
  4,401       Reinsurance Group of America, Inc.    $ 474,692   
     

 

 

  
        1,727,474   
     

 

 

  
   Residential REITs—10.5%   
  12,485       Apartment Investment & Management Co., Class A REIT      550,214   
  9,502       Education Realty Trust, Inc. REIT      404,690   
  6,899       Equity LifeStyle Properties, Inc. REIT      523,220   
  2,149       Essex Property Trust, Inc. REIT      460,079   
  11,076       Sun Communities, Inc. REIT      852,077   
     

 

 

  
        2,790,280   
     

 

 

  
   Retail REITs—23.1%   
  7,441       Federal Realty Investment Trust REIT      1,080,656   
  42,648       General Growth Properties, Inc. REIT      1,064,068   
  9,147       Macerich Co. (The) REIT      647,425   
  12,738       Realty Income Corp. REIT      754,599   
  11,092       Regency Centers Corp. REIT      799,401   
  5,167       Simon Property Group, Inc. REIT      960,855   
  5,581       Taubman Centers, Inc. REIT      404,399   
  12,192       Weingarten Realty Investors REIT      441,472   
     

 

 

  
        6,152,875   
     

 

 

  
   Specialized REITs—12.7%   
  11,782       American Tower Corp. REIT      1,380,732   
  13,411       Crown Castle International Corp. REIT      1,220,267   
  5,705       EPR Properties REIT      414,868   
  7,898       QTS Realty Trust, Inc., Class A REIT      362,992   
     

 

 

  
        3,378,859   
     

 

 

  
   Total Common Stocks and Other Equity Interests
(Cost $25,889,887)		      26,612,243   
     

 

 

  
     
   Money Market Fund—0.3%   
  70,134       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(c)
(Cost $70,134)		      70,134   
     

 

 

  
   Total Investments
(Cost $25,960,021)—100.2%		      26,682,377   
   Other assets less liabilities—(0.2)%      (57,323 ) 
     

 

 

  
   Net Assets—100.0%    $ 26,625,054   
     

 

 

  

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  Non-income producing security.
(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   13  

 

 

PowerShares DWA Healthcare Momentum Portfolio (PTH)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Biotechnology      40.6   
Health Care Equipment      34.7   
Pharmaceuticals      7.0   
Managed Health Care      6.6   
Health Care Supplies      4.8   
Health Care Services      3.6   
Life Sciences Tools & Services      2.7   
Money Market Fund Plus Other Assets Less Liabilities      (0.0)   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks—100.0%   
   Biotechnology—40.6%   
  154,694       ARIAD Pharmaceuticals, Inc.(b)    $ 1,348,932   
  23,423       Avexis, Inc.(b)      1,112,592   
  30,646       Bellicum Pharmaceuticals, Inc.(b)      507,498   
  22,620       Bluebird Bio, Inc.(b)      1,080,105   
  16,315       Blueprint Medicines Corp.(b)      489,124   
  66,937       Clovis Oncology, Inc.(b)      1,946,528   
  11,372       Eagle Pharmaceuticals, Inc.(b)      635,467   
  143,011       Exact Sciences Corp.(b)      2,228,111   
  252,350       Exelixis, Inc.(b)      2,672,386   
  26,256       Five Prime Therapeutics, Inc.(b)      1,274,204   
  27,512       Flexion Therapeutics, Inc.(b)      525,479   
  48,949       Lexicon Pharmaceuticals, Inc.(b)      725,914   
  14,695       MacroGenics, Inc.(b)      348,125   
  49,335       Minerva Neurosciences, Inc.(b)      550,085   
  72,053       PTC Therapeutics, Inc.(b)      447,449   
  35,919       Puma Biotechnology, Inc.(b)      1,375,698   
  55,387       Sarepta Therapeutics, Inc.(b)      2,173,386   
  17,754       Spark Therapeutics, Inc.(b)      834,615   
  152,569       Synergy Pharmaceuticals, Inc.(b)      700,292   
  21,717       TESARO, Inc.(b)      2,625,151   
  32,282       Vanda Pharmaceuticals, Inc.(b)      479,388   
  22,011       Xencor, Inc.(b)      468,614   
     

 

 

  
        24,549,143   
     

 

 

  
   Health Care Equipment—34.7%   
  25,467       ABIOMED, Inc.(b)      2,673,780   
  13,888       Becton, Dickinson and Co.      2,331,934   
  83,034       Boston Scientific Corp.(b)      1,826,748   
  21,521       Cantel Medical Corp.      1,532,941   
  28,013       CryoLife, Inc.      476,221   
  20,184       Cynosure, Inc., Class A(b)      860,848   
  37,693       DexCom, Inc.(b)      2,949,100   
  19,176       Edwards Lifesciences Corp.(b)      1,825,939   
  27,732       Glaukos Corp.(b)      926,249   
  15,762       Hill-Rom Holdings, Inc.      873,372   
  23,185       Inogen, Inc.(b)      1,244,339   
Number
of Shares		           Value  
   Common Stocks (continued)   
   Health Care Equipment (continued)   
  18,798       Masimo Corp.(b)    $ 1,033,890   
  14,277       Natus Medical, Inc.(b)      561,800   
  18,412       NuVasive, Inc.(b)      1,099,749   
  11,152       Penumbra, Inc.(b)      735,474   
     

 

 

  
        20,952,384   
     

 

 

  
   Health Care Services—3.6%   
  26,613       Amedisys, Inc.(b)      1,151,278   
  42,676       Healthways, Inc.(b)      1,058,365   
     

 

 

  
        2,209,643   
     

 

 

  
   Health Care Supplies—4.8%   
  21,967       Align Technology, Inc.(b)      1,887,405   
  20,328       Spectranetics Corp. (The)(b)      441,117   
  12,180       Vascular Solutions, Inc.(b)      555,408   
     

 

 

  
        2,883,930   
     

 

 

  
   Life Sciences Tools & Services—2.7%   
  20,940       Accelerate Diagnostics, Inc.(b)      444,975   
  22,277       PRA Health Sciences, Inc.(b)      1,185,582   
     

 

 

  
        1,630,557   
     

 

 

  
   Managed Health Care—6.6%   
  27,807       Centene Corp.(b)      1,737,381   
  15,923       UnitedHealth Group, Inc.      2,250,398   
     

 

 

  
        3,987,779   
     

 

 

  
   Pharmaceuticals—7.0%   
  36,177       Aerie Pharmaceuticals, Inc.(b)      1,202,885   
  69,734       Aratana Therapeutics, Inc.(b)      564,846   
  186,853       Chelsea Therapeutics International Ltd.(b)      14,948   
  13,375       Heska Corp.(b)      660,725   
  41,956       Nektar Therapeutics, Class A(b)      520,254   
  39,987       Supernus Pharmaceuticals, Inc.(b)      791,743   
  18,589       Theravance Biopharma, Inc. (Cayman Islands)(b)      467,142   
     

 

 

  
        4,222,543   
     

 

 

  
   Total Common Stocks
(Cost $62,156,074)		      60,435,979   
     

 

 

  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   14  

 

 

PowerShares DWA Healthcare Momentum Portfolio (PTH) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Money Market Fund—0.2%   
  95,535       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(c)
(Cost $95,535)		    $ 95,535   
     

 

 

  
   Total Investments
(Cost $62,251,609)—100.2%		      60,531,514   
   Other assets less liabilities—(0.2)%      (128,482 ) 
     

 

 

  
   Net Assets—100.0%    $ 60,403,032   
     

 

 

  

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  Non-income producing security.
(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   15  

 

 

PowerShares DWA Industrials Momentum Portfolio (PRN)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Aerospace & Defense      13.9   
Building Products      13.7   
Industrial Machinery      8.6   
Construction & Engineering      5.8   
Diversified Support Services      5.5   
Life Sciences Tools & Services      4.5   
IT Consulting & Other Services      4.4   
Airport Services      3.8   
Commercial Printing      3.3   
Specialty Chemicals      3.0   
Construction & Farm Machinery & Heavy Trucks      2.9   
Health Care Equipment      2.5   
Data Processing & Outsourced Services      2.4   
Oil & Gas Equipment & Services      2.4   
Investment Companies      2.4   
Paper Packaging      2.3   
Electronic Components      2.1   
Leisure Products      2.1   
Electrical Components & Equipment      2.1   
Agricultural & Farm Machinery      1.9   
Commodity Chemicals      1.9   
Trading Companies & Distributors      1.8   
Human Resource & Employment Services      1.8   
Application Software      1.7   
Internet Software & Services      1.6   
Electronic Manufacturing Services      1.6   
Other Assets Less Liabilities      (0.0)   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks—100.0%   
   Aerospace & Defense—13.9%   
  14,841       HEICO Corp.    $ 1,002,658   
  5,170       Huntington Ingalls Industries, Inc.      834,231   
  5,850       Lockheed Martin Corp.      1,441,323   
  6,733       Raytheon Co.      919,795   
  5,945       TransDigm Group, Inc.      1,619,775   
     

 

 

  
        5,817,782   
     

 

 

  
Number
of Shares		           Value  
   Common Stocks (continued)   
   Agricultural & Farm Machinery—1.9%   
  16,931       Toro Co. (The)    $ 810,656   
     

 

 

  
   Airport Services—3.8%   
  19,219       Macquarie Infrastructure Corp.      1,572,306   
     

 

 

  
   Application Software—1.7%   
  6,084       Fair Isaac Corp.      734,217   
     

 

 

  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   16  

 

 

PowerShares DWA Industrials Momentum Portfolio (PRN) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks (continued)   
   Building Products—13.7%   
  24,559       A.O. Smith Corp.    $ 1,109,330   
  10,066       American Woodmark Corp.(b)      751,930   
  17,992       Gibraltar Industries, Inc.(b)      699,889   
  5,921       Lennox International, Inc.      863,815   
  26,646       Masco Corp.      822,828   
  14,630       Patrick Industries, Inc.(b)      839,030   
  7,234       Universal Forest Products, Inc.      622,052   
     

 

 

  
        5,708,874   
     

 

 

  
   Commercial Printing—3.3%   
  11,811       Deluxe Corp.      722,833   
  10,161       Multi-Color Corp.      659,703   
     

 

 

  
        1,382,536   
     

 

 

  
   Commodity Chemicals—1.9%   
  14,848       Trinseo SA      778,778   
     

 

 

  
   Construction & Engineering—5.8%   
  12,106       Argan, Inc.      688,226   
  11,190       Dycom Industries, Inc.(b)      860,847   
  14,854       EMCOR Group, Inc.      898,073   
     

 

 

  
        2,447,146   
     

 

 

  
   Construction & Farm Machinery & Heavy Trucks—2.9%   
  35,064       Navistar International Corp.(b)      781,927   
  37,089       Supreme Industries, Inc., Class A      452,115   
     

 

 

  
        1,234,042   
     

 

 

  
   Data Processing & Outsourced Services—2.4%   
  5,750       FleetCor Technologies, Inc.(b)      1,007,975   
     

 

 

  
   Diversified Support Services—5.5%   
  7,823       Cintas Corp.      834,479   
  39,575       Healthcare Services Group, Inc.      1,463,088   
     

 

 

  
        2,297,567   
     

 

 

  
   Electrical Components & Equipment—2.1%   
  3,848       Acuity Brands, Inc.      860,297   
     

 

 

  
   Electronic Components—2.1%   
  6,237       Littelfuse, Inc.      870,061   
     

 

 

  
   Electronic Manufacturing Services—1.6%   
  17,204       Fabrinet (Thailand)(b)      653,064   
     

 

 

  
   Health Care Equipment—2.5%   
  13,169       Danaher Corp.      1,034,425   
     

 

 

  
   Human Resource & Employment Services—1.8%   
  12,762       WageWorks, Inc.(b)      752,320   
     

 

 

  
   Industrial Machinery—8.6%   
  49,315       Energy Recovery, Inc.(b)      602,136   
  8,888       IDEX Corp.      768,279   
  10,120       John Bean Technologies Corp.      808,082   
  13,834       Lydall, Inc.(b)      646,740   
  62,088       Mueller Water Products, Inc., Class A      764,924   
     

 

 

  
        3,590,161   
     

 

 

  
   Internet Software & Services—1.6%   
  3,572       CoStar Group, Inc.(b)      668,393   
     

 

 

  
Number
of Shares		           Value  
   Common Stocks (continued)   
   Investment Companies—2.4%   
  86,804       Gores Holdings, Inc., Class A(b)    $ 988,698   
     

 

 

  
   IT Consulting & Other Services—4.4%   
  9,009       Accenture PLC, Class A      1,047,206   
  9,445       Gartner, Inc.(b)      812,648   
     

 

 

  
        1,859,854   
     

 

 

  
   Leisure Products—2.1%   
  32,827       Smith & Wesson Holding Corp.(b)      867,618   
     

 

 

  
   Life Sciences Tools & Services—4.5%   
  2,652       Mettler-Toledo International, Inc.(b)      1,071,620   
  5,707       Waters Corp.(b)      794,072   
     

 

 

  
        1,865,692   
     

 

 

  
   Oil & Gas Equipment & Services—2.4%   
  115,243       Fairmount Santrol Holdings, Inc.(b)      989,937   
     

 

 

  
   Paper Packaging—2.3%   
  11,475       Packaging Corp. of America      946,688   
     

 

 

  
   Specialty Chemicals—3.0%   
  5,159       Sherwin-Williams Co. (The)      1,263,233   
     

 

 

  
   Trading Companies & Distributors—1.8%   
  5,618       Watsco, Inc.      771,295   
     

 

 

  
   Total Investments
(Cost $40,105,443)—100.0%		      41,773,615   
   Other assets less liabilities—(0.0)%      (4,604 ) 
     

 

 

  
   Net Assets—100.0%    $ 41,769,011   
     

 

 

  

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  Non-income producing security.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   17  

 

 

PowerShares DWA Technology Momentum Portfolio (PTF)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Application Software      35.4   
Semiconductors      17.2   
Internet Software & Services      14.7   
Communications Equipment      8.1   
Wireless Telecommunication Services      4.6   
Systems Software      4.3   
IT Consulting & Other Services      4.2   
Specialized REITs      3.5   
Semiconductor Equipment      3.5   
Data Processing & Outsourced Services      1.7   
Electrical Components & Equipment      1.7   
Internet Retail      1.0   
Money Market Funds Plus Other Assets Less Liabilities      0.1   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests—99.9%    
   Application Software—35.4%   
  143,959       8x8, Inc.(b)    $ 2,051,416   
  37,033       Adobe Systems, Inc.(b)      3,981,418   
  24,826       Blackbaud, Inc.      1,524,316   
  37,478       BroadSoft, Inc.(b)      1,557,211   
  198,119       Cadence Design Systems, Inc.(b)      5,067,884   
  72,513       Callidus Software, Inc.(b)      1,323,362   
  57,803       Ebix, Inc.(c)      3,236,968   
  86,418       Ellie Mae, Inc.(b)      9,150,802   
  28,670       Guidewire Software, Inc.(b)      1,647,091   
  39,067       Intuit, Inc.      4,248,146   
  66,027       Manhattan Associates, Inc.(b)      3,343,607   
  31,455       Paycom Software, Inc.(b)      1,627,167   
  27,489       Paylocity Holding Corp.(b)      1,195,497   
  48,327       RingCentral, Inc., Class A(b)      1,000,369   
  46,550       Tyler Technologies, Inc.(b)      7,466,620   
  19,273       Ultimate Software Group, Inc. (The)(b)      4,066,410   
  46,020       Zendesk, Inc.(b)      1,209,866   
     

 

 

  
        53,698,150   
     

 

 

  
   Communications Equipment—8.1%   
  61,067       Applied Optoelectronics, Inc.(b)      1,174,319   
  80,486       Finisar Corp.(b)      2,203,707   
  27,957       InterDigital, Inc.      1,975,162   
  64,167       Lumentum Holdings, Inc.(b)      2,156,011   
  456,304       Oclaro, Inc.(b)      3,335,582   
  27,073       Ubiquiti Networks, Inc.(b)      1,419,437   
     

 

 

  
        12,264,218   
     

 

 

  
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Data Processing & Outsourced Services—1.7%   
  32,190       Jack Henry & Associates, Inc.    $ 2,608,034   
     

 

 

  
   Electrical Components & Equipment—1.7%   
  187,004       Energous Corp.(b)(c)      2,548,865   
     

 

 

  
   Internet Retail—1.0%   
  383,444       Groupon, Inc., Class A(b)      1,529,942   
     

 

 

  
   Internet Software & Services—14.7%   
  53,149       2U, Inc.(b)      1,852,774   
  4,169       Alphabet, Inc., Class A(b)      3,376,473   
  59,815       Facebook, Inc., Class A(b)      7,835,167   
  92,662       Five9, Inc.(b)      1,326,920   
  33,886       LogMeIn, Inc.      3,219,170   
  309,542       MeetMe, Inc.(b)      1,513,660   
  41,970       Q2 Holdings, Inc.(b)      1,179,357   
  33,961       Shutterstock, Inc.(b)(c)      2,003,360   
     

 

 

  
        22,306,881   
     

 

 

  
   IT Consulting & Other Services—4.2%   
  117,694       Computer Sciences Corp.      6,408,438   
     

 

 

  
   Semiconductor Equipment—3.5%   
  204,466       Amkor Technology, Inc.(b)      1,895,400   
  116,756       Applied Materials, Inc.      3,395,264   
     

 

 

  
        5,290,664   
     

 

 

  
   Semiconductors—17.2%   
  55,076       Acacia Communications, Inc.(b)(c)      3,838,247   
  92,795       Cirrus Logic, Inc.(b)      5,009,074   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   18  

 

 

PowerShares DWA Technology Momentum Portfolio (PTF) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Semiconductors (continued)   
  64,755       Inphi Corp.(b)    $ 2,402,411   
  41,326       Monolithic Power Systems, Inc.      3,256,902   
  89,544       NeoPhotonics Corp.(b)      1,253,616   
  97,190       NVIDIA Corp.      6,916,040   
  48,626       Texas Instruments, Inc.      3,445,152   
     

 

 

  
        26,121,442   
     

 

 

  
   Specialized REITs—3.5%   
  14,882       Equinix, Inc. REIT      5,317,041   
     

 

 

  
   Systems Software—4.3%   
  105,715       A10 Networks, Inc.(b)      809,777   
  87,275       Barracuda Networks, Inc.(b)      2,035,253   
  67,761       Gigamon, Inc.(b)      3,747,183   
     

 

 

  
        6,592,213   
     

 

 

  
   Wireless Telecommunication Services—4.6%   
  141,321       T-Mobile US, Inc.(b)      7,027,893   
     

 

 

  
   Total Common Stocks and Other Equity Interests
(Cost $143,237,335)		      151,713,781   
     

 

 

  
     
   Money Market Fund—0.1%   
  116,729       Invesco Premier U.S. Government Money Portfolio—Institutional Class, 0.25%(d)
(Cost $116,729)		      116,729   
     

 

 

  
   Total Investments
(excluding investments purchased with cash collateral from securities on loan)
(Cost $143,354,064)—100.0%		      151,830,510   
     

 

 

  
     
   Investments Purchased with Cash Collateral from Securities on Loan    
     
   Money Market Fund—6.9%   
  10,505,409       Invesco Government & Agency Portfolio—Institutional Class, 0.29%(d)(e)
(Cost $10,505,409)		      10,505,409   
     

 

 

  
   Total Investments
(Cost $153,859,473)—106.9%		      162,335,919   
   Other assets less liabilities—(6.9)%      (10,542,866 ) 
     

 

 

  
   Net Assets—100.0%    $ 151,793,053   
     

 

 

  

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  Non-income producing security.
(c)  All or a portion of this security was out on loan at October 31, 2016.
(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2H.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   19  

 

 

PowerShares DWA Utilities Momentum Portfolio (PUI)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Multi-Utilities      38.3   
Electric Utilities      32.3   
Gas Utilities      11.9   
Water Utilities      5.7   
Integrated Telecommunication Services      5.1   
Oil & Gas Storage & Transportation      3.6   
Renewable Electricity      3.1   
Money Market Fund Plus Other Assets Less Liabilities      (0.0)   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks—100.0%   
   Electric Utilities—32.3%   
  121,178       Alliant Energy Corp.    $ 4,610,823   
  60,787       American Electric Power Co., Inc.      3,941,429   
  76,308       Duke Energy Corp.      6,106,166   
  83,964       Eversource Energy      4,623,058   
  38,960       IDACORP, Inc.      3,054,075   
  36,923       NextEra Energy, Inc.      4,726,144   
  109,536       PG&E Corp.      6,804,376   
  105,271       PNM Resources, Inc.      3,458,153   
  60,316       Portland General Electric Co.      2,632,190   
  75,676       Spark Energy, Inc., Class A(b)      1,831,359   
  140,455       Xcel Energy, Inc.      5,835,905   
     

 

 

  
        47,623,678   
     

 

 

  
   Gas Utilities—11.9%   
  54,480       Atmos Energy Corp.      4,052,767   
  104,577       New Jersey Resources Corp.      3,550,389   
  28,989       ONE Gas, Inc.      1,776,446   
  37,201       Southwest Gas Corp.      2,695,584   
  43,990       Spire, Inc.      2,762,572   
  60,244       UGI Corp.      2,788,695   
     

 

 

  
        17,626,453   
     

 

 

  
   Integrated Telecommunication Services—5.1%   
  73,892       Consolidated Communications Holdings, Inc.      1,768,236   
  71,404       Verizon Communications, Inc.      3,434,532   
  285,948       Windstream Holdings, Inc.(b)      2,244,692   
     

 

 

  
        7,447,460   
     

 

 

  
   Multi-Utilities—38.3%   
  68,841       Ameren Corp.      3,438,608   
  67,500       Avista Corp.      2,794,500   
  46,497       Black Hills Corp.      2,875,840   
  159,729       CenterPoint Energy, Inc.      3,641,821   
  137,650       CMS Energy Corp.      5,801,948   
  60,817       Consolidated Edison, Inc.      4,594,724   
  52,694       DTE Energy Co.      5,059,151   
  251,896       NiSource, Inc.      5,859,101   
Number
of Shares		           Value  
   Common Stocks (continued)   
   Multi-Utilities (continued)   
  51,089       NorthWestern Corp.    $ 2,940,172   
  71,210       SCANA Corp.      5,223,966   
  53,113       Sempra Energy      5,688,402   
  60,723       Vectren Corp.      3,054,974   
  93,595       WEC Energy Group, Inc.      5,589,493   
     

 

 

  
        56,562,700   
     

 

 

  
   Oil & Gas Storage & Transportation—3.6%   
  109,822       ONEOK, Inc.      5,318,679   
     

 

 

  
   Renewable Electricity—3.1%   
  41,481       Ormat Technologies, Inc.      2,000,629   
  206,598       TerraForm Power, Inc., Class A(b)(c)      2,563,881   
     

 

 

  
        4,564,510   
     

 

 

  
   Water Utilities—5.7%   
  75,388       American Water Works Co., Inc.      5,581,728   
  92,713       Aqua America, Inc.      2,846,289   
     

 

 

  
        8,428,017   
     

 

 

  
   Total Common Stocks
(Cost $145,600,819)		      147,571,497   
     

 

 

  
     
   Investments Purchased with Cash Collateral from Securities on Loan    
     
   Money Market Fund—2.6%   
  3,779,650       Invesco Government & Agency Portfolio—Institutional Class, 0.29%(d)(e)
(Cost $3,779,650)		      3,779,650   
     

 

 

  
   Total Investments
(Cost $149,380,469)—102.6%		      151,351,147   
   Other assets less liabilities—(2.6)%      (3,791,635 ) 
     

 

 

  
   Net Assets—100.0%    $ 147,559,512   
     

 

 

  
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   20  

 

 

PowerShares DWA Utilities Momentum Portfolio (PUI) (continued)

October 31, 2016

(Unaudited)

 

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  All or a portion of this security was out on loan at October 31, 2016.
(c)  Non-income producing security.
(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2H.
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   21  

 

 

PowerShares NASDAQ Internet Portfolio (PNQI)

October 31, 2016

(Unaudited)

 

Portfolio Composition  
Sub-Industry Breakdown
(% of the Fund’s Net Assets)
as of October 31, 2016		  
Internet Software & Services      59.5   
Internet Retail      36.3   
Specialized REITs      3.8   
Alternative Carriers      0.3   
Casinos & Gaming      0.1   
Wireless Telecommunication Services      0.1   
Application Software      0.0   
Money Market Fund Plus Other Assets Less Liabilities      (0.1)   
 

 

Schedule of Investments(a)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests—100.1%    
   Alternative Carriers—0.3%   
  26,610       Cogent Communications Group, Inc.    $ 981,909   
     

 

 

  
   Application Software—0.0%   
  49,028       NQ Mobile, Inc., Class A ADR (China)(b)(c)      169,637   
     

 

 

  
   Casinos & Gaming—0.1%   
  16,695       500.com Ltd., Class A ADR (China)(c)      282,813   
     

 

 

  
   Internet Retail—36.3%   
  20,698       1-800-FLOWERS.COM, Inc., Class A(c)      197,666   
  29,915       Amazon.com, Inc.(c)      23,627,465   
  6,784       Blue Nile, Inc.      236,965   
  218,445       Ctrip.com International Ltd. ADR (China)(c)      9,644,347   
  66,414       Etsy, Inc.(c)      862,054   
  80,044       Expedia, Inc., Class A      10,344,086   
  15,982       FTD Cos., Inc.(c)      321,558   
  334,101       Groupon, Inc., Class A(b)(c)      1,333,063   
  452,766       JD.Com, Inc., Class A ADR (China)(c)      11,749,278   
  18,168       Lands’ End, Inc.(b)(c)      283,421   
  42,045       Liberty TripAdvisor Holdings, Inc., Series A(c)      933,399   
  24,654       MakeMyTrip Ltd. (India)(b)(c)      700,173   
  118,058       Netflix, Inc.(c)      14,741,902   
  17,244       Nutrisystem, Inc.      546,635   
  14,801       Overstock.com, Inc.(c)      216,835   
  11,985       PetMed Express, Inc.(b)      238,142   
  16,242       Priceline Group, Inc. (The)(c)      23,944,444   
  38,399       Qunar Cayman Islands Ltd., Class B ADR (China)(b)(c)      1,135,458   
  19,841       Shutterfly, Inc.(c)      972,209   
  77,576       TripAdvisor, Inc., Class A(c)      5,002,100   
     

 

 

  
        107,031,200   
     

 

 

  
   Internet Software & Services—59.5%   
  33,240       21Vianet Group, Inc., Class A ADR (China)(b)(c)      242,984   
  23,068       Actua Corp.(c)      268,742   
Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Internet Software & Services (continued)   
  102,021       Akamai Technologies, Inc.(c)    $ 7,087,399   
  26,645       Alarm.com Holdings, Inc.(b)(c)      777,501   
  29,997       Alphabet, Inc., Class C(c)      23,533,846   
  34,323       Angie’s List, Inc.(c)      264,287   
  6,298       Autobytel, Inc.(c)      102,972   
  26,883       Autohome, Inc., Class A ADR (China)(b)(c)      630,406   
  129,579       Baidu, Inc., Class A ADR (China)(c)      22,917,342   
  52,706       Bankrate, Inc.(c)      411,107   
  48,359       Bazaarvoice, Inc.(c)      236,959   
  16,821       Benefitfocus, Inc.(b)(c)      546,683   
  24,243       Blucora, Inc.(c)      322,432   
  15,789       Carbonite, Inc.(c)      269,203   
  18,447       Cimpress NV (Netherlands)(b)(c)      1,535,713   
  33,385       comScore, Inc.(c)      961,154   
  32,658       Cornerstone OnDemand, Inc.(c)      1,348,775   
  19,037       CoStar Group, Inc.(c)      3,562,203   
  34,949       Criteo SA ADR (France)(c)      1,263,406   
  29,246       DHI Group, Inc.(c)      166,702   
  61,599       EarthLink Holdings Corp.      352,346   
  357,737       eBay, Inc.(c)      10,199,082   
  80,098       Endurance International Group Holdings, Inc.(b)(c)      588,720   
  24,998       Envestnet, Inc.(c)      883,679   
  182,442       Facebook, Inc., Class A(c)      23,898,078   
  30,686       Five9, Inc.(c)      439,424   
  49,254       GoDaddy, Inc., Class A(c)      1,762,801   
  50,319       Gogo, Inc.(b)(c)      508,725   
  34,502       Hortonworks, Inc.(b)(c)      263,595   
  43,085       IAC/InterActiveCorp.      2,776,397   
  28,034       j2 Global, Inc.      1,994,619   
  33,737       LivePerson, Inc.(c)      286,765   
  14,776       LogMeIn, Inc.(b)      1,403,720   
  24,411       Match Group, Inc., Class A(b)(c)      440,863   
  25,783       MercadoLibre, Inc. (Argentina)      4,331,802   
  31,658       Mimecast Ltd.(b)(c)      640,758   
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   22  

 

 

PowerShares NASDAQ Internet Portfolio (PNQI) (continued)

October 31, 2016

(Unaudited)

 

Number
of Shares		           Value  
   Common Stocks and Other Equity Interests (continued)    
   Internet Software & Services (continued)   
  28,823       Momo, Inc., Class A ADR (China)(c)    $ 694,058   
  44,588       NetEase, Inc. ADR (China)      11,458,670   
  29,686       New Relic, Inc.(b)(c)      1,082,055   
  38,524       NIC, Inc.      884,126   
  134,905       Pandora Media, Inc.(b)(c)      1,528,474   
  73,769       Rackspace Hosting, Inc.(c)      2,356,182   
  28,422       RetailMeNot, Inc.(c)      257,219   
  20,447       Shutterstock, Inc.(b)(c)      1,206,169   
  40,792       SINA Corp. (China)(c)      2,942,735   
  22,611       Sohu.com, Inc. (China)(c)      846,330   
  9,914       SPS Commerce, Inc.(c)      618,435   
  10,082       Stamps.com, Inc.(b)(c)      983,499   
  49,403       TrueCar, Inc.(b)(c)      476,739   
  413,242       Twitter, Inc.(b)(c)      7,417,694   
  62,341       VeriSign, Inc.(b)(c)      5,237,891   
  29,492       Web.com Group, Inc.(c)      474,821   
  22,765       WebMD Health Corp.(c)      1,118,445   
  27,029       Weibo Corp., Class A ADR (China)(b)(c)      1,243,604   
  24,792       Wix.com Ltd. (Israel)(c)      991,680   
  269,119       Yahoo!, Inc.(c)      11,181,894   
  160,766       Yandex NV, Class A (Russia)(c)      3,165,483   
  22,090       YY, Inc., Class A ADR (China)(c)      1,061,866   
  31,432       Zillow Group, Inc., Class A(c)      1,038,199   
     

 

 

  
        175,487,458   
     

 

 

  
   Specialized REITs—3.8%   
  31,208       Equinix, Inc. REIT      11,149,994   
     

 

 

  
   Wireless Telecommunication Services—0.1%   
  22,256       Boingo Wireless, Inc.(c)      216,328   
     

 

 

  
   Total Common Stocks and Other Equity Interests
(Cost $270,067,873)		      295,319,339   
     

 

 

  
     
   Investments Purchased with Cash Collateral from Securities on Loan    
     
   Money Market Fund—6.4%   
  18,997,563       Invesco Government & Agency Portfolio—Institutional Class, 0.29%(d)(e)
(Cost $18,997,563)		      18,997,563   
     

 

 

  
   Total Investments
(Cost $289,065,436)—106.5%		      314,316,902   
   Other assets less liabilities—(6.5)%      (19,172,583 ) 
     

 

 

  
   Net Assets—100.0%    $ 295,144,319   
     

 

 

  

Investment Abbreviations:

ADR—American Depositary Receipt

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.
(b)  All or a portion of this security was out on loan at October 31, 2016.
(c)  Non-income producing security.
(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of October 31, 2016.
(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2H.

This Fund has holdings greater than 10% of net assets in the following country:

 

China     22.0 % 
 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   23  

 

 

Statements of Assets and Liabilities

October 31, 2016

(Unaudited)

 

    PowerShares
DWA Basic
Materials
Momentum
Portfolio (PYZ)		      PowerShares
DWA Consumer
Cyclicals
Momentum
Portfolio (PEZ)		      PowerShares
DWA Consumer
Staples
Momentum
Portfolio (PSL)		      PowerShares
DWA Energy
Momentum
Portfolio (PXI)		      PowerShares
DWA Financial
Momentum
Portfolio (PFI)		  
Assets:              

Unaffiliated investments, at value(a)

   $ 178,768,350       $ 44,594,969       $ 230,903,640       $ 121,292,237       $ 26,612,243   

Affiliated investments, at value

     158,454         1,057,697         3,996,883         118,057         70,134   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total investments, at value

     178,926,804         45,652,666         234,900,523         121,410,294         26,682,377   

Receivables:

              

Investments sold

     1,109,162         —         2,748,561         —         —   

Dividends

     101,804         7,668         35         78,909         10,171   

Securities lending

     —         —         1,755         —         —   

Other assets

     1,166         826         958         1,066         1,522   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Assets

     180,138,936         45,661,160         237,651,832         121,490,269         26,694,070   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Liabilities:              

Due to custodian

     —         —         —         —         —   

Payables:

              

Investments purchased

     1,163,812         —         —         —         —   

Shares repurchased

     —         —         2,748,236         —         —   

Collateral upon return of securities loaned

     —         960,550         3,755,350         —         —   

Accrued advisory fees

     70,401         9,033         82,722         41,366         5,060   

Accrued trustees’ and officer’s fees

     18,645         17,147         18,345         21,327         16,159   

Accrued expenses

     113,861         76,071         195,324         113,905         47,797   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Liabilities

     1,366,719         1,062,801         6,799,977         176,598         69,016   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Net Assets   $ 178,772,217       $ 44,598,359       $ 230,851,855       $ 121,313,671       $ 26,625,054   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Net Assets Consist of:              

Shares of beneficial interest

   $ 194,084,555       $ 89,710,395       $ 253,593,642       $ 217,687,842       $ 39,138,556   

Undistributed net investment income (loss)

     169,522         (13,524 )       303,622         (7,535 )       111,261   

Undistributed net realized gain (loss)

     (19,392,902 )       (46,948,007 )       (30,134,445 )       (109,955,098 )       (13,347,119 ) 

Net unrealized appreciation (depreciation)

     3,911,042         1,849,495         7,089,036         13,588,462         722,356   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Net Assets   $ 178,772,217       $ 44,598,359       $ 230,851,855       $ 121,313,671       $ 26,625,054   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding (unlimited amount authorized, $0.01 par value)

     3,250,000         1,100,000         4,200,000         3,150,000         900,000   

Net asset value

   $ 55.01       $ 40.54       $ 54.96       $ 38.51       $ 29.58   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Market price

   $ 55.03       $ 40.56       $ 54.94       $ 38.58       $ 29.57   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Unaffiliated investments, at cost

   $ 174,857,308       $ 42,745,474       $ 223,814,604       $ 107,703,775       $ 25,889,887   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Affiliated investments, at cost

   $ 158,454       $ 1,057,697       $ 3,996,883       $ 118,057       $ 70,134   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total investments, at cost

   $ 175,015,762       $ 43,803,171       $ 227,811,487       $ 107,821,832       $ 25,960,021   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

(a) Includes securities on loan with an aggregate value of

   $ —       $ 943,753       $ 3,689,154       $ —       $ —   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   24  

 

 

 

PowerShares
DWA Healthcare
Momentum
Portfolio (PTH)		      PowerShares
DWA Industrials
Momentum
Portfolio (PRN)		      PowerShares
DWA Technology
Momentum
Portfolio (PTF)		      PowerShares
DWA Utilities
Momentum
Portfolio (PUI)		      PowerShares
NASDAQ Internet
Portfolio (PNQI)		  
           
$ 60,435,979       $ 41,773,615       $ 151,713,781       $ 147,571,497       $ 295,319,339   
  95,535         —         10,622,138         3,779,650         18,997,563   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  60,531,514         41,773,615         162,335,919         151,351,147         314,316,902   
           
  2,242,403         —         —         5,086,645         —   
  24         164,586         27         247,507         16   
  —         —         157,670         8,137         12,073   
  991         923         1,117         1,164         —   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  62,774,932         41,939,124         162,494,733         156,694,600         314,328,991   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
           
  —         85,687         —         70,785         32,183   
           
  —         —         —         —         —   
  2,241,901         —         —         5,086,102         —   
  —         —         10,505,409         3,779,650         18,997,563   
  18,268         12,121         51,738         52,894         154,926   
  20,127         18,770         17,886         17,705         —   
  91,604         53,535         126,647         127,952         —   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  2,371,900         170,113         10,701,680         9,135,088         19,184,672   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 60,403,032       $ 41,769,011       $ 151,793,053       $ 147,559,512       $ 295,144,319   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
           
$ 159,441,858       $ 103,708,503       $ 201,379,007       $ 150,483,409       $ 275,547,915   
  (339,031 )       155,256         21,125         719,540         (587,185 ) 
  (96,979,700 )       (63,762,920 )       (58,083,525 )       (5,614,115 )       (5,067,877 ) 
  (1,720,095 )       1,668,172         8,476,446         1,970,678         25,251,466   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 60,403,032       $ 41,769,011       $ 151,793,053       $ 147,559,512       $ 295,144,319   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  1,350,000         900,000         3,850,000         5,750,000         3,400,000   
$ 44.74       $ 46.41       $ 39.43       $ 25.66       $ 86.81   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 44.75       $ 46.40       $ 39.43       $ 25.66       $ 86.87   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 62,156,074       $ 40,105,443       $ 143,237,335       $ 145,600,819       $ 270,067,873   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 95,535       $ —       $ 10,622,138       $ 3,779,650       $ 18,997,563   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 62,251,609       $ 40,105,443       $ 153,859,473       $ 149,380,469       $ 289,065,436   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ —       $ —       $ 10,248,862       $ 3,521,650       $ 18,630,218   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

 

   25  

 

 

Statements of Operations

For the six months ended October 31, 2016

(Unaudited)

 

    PowerShares
DWA Basic
Materials
Momentum
Portfolio (PYZ)		      PowerShares
DWA Consumer
Cyclicals
Momentum
Portfolio (PEZ)		      PowerShares
DWA Consumer
Staples
Momentum
Portfolio (PSL)		      PowerShares
DWA Energy
Momentum
Portfolio (PXI)		      PowerShares
DWA Financial
Momentum
Portfolio (PFI)		  
Investment Income:              

Unaffiliated dividend income

   $ 1,303,063       $ 274,790       $ 2,754,752       $ 580,619       $ 330,845   

Affiliated dividend income

     234         266         530         233         100   

Securities lending income

     —         —         1,756         330,685         —   

Foreign withholding tax

     —         —         —         —         (1,035 ) 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Income

     1,303,297         275,056         2,757,038         911,537         329,910   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Expenses:              

Advisory fees

     465,754         143,626         691,503         321,426         71,546   

Sub-licensing fees

     100,993         43,074         207,377         96,388         7,663   

Accounting & administration fees

     18,030         18,846         27,680         18,041         18,034   

Professional fees

     13,800         13,712         13,570         14,852         13,623   

Trustees’ and officer’s fees

     4,938         5,072         6,741         4,982         4,109   

Custodian & transfer agent fees

     2,548         2,692         3,499         3,100         2,753   

Other expenses

     7,974         13,131         14,171         10,986         7,206   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Expenses

     614,037         240,153         964,541         469,775         124,934   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less: Waivers

     (55,236 )       (67,919 )       (134,978 )       (84,171 )       (39,125 ) 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Expenses

     558,801         172,234         829,563         385,604         85,809   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Investment Income (Loss)

     744,496         102,822         1,927,475         525,933         244,101   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Realized and Unrealized Gain (Loss):              

Net realized gain (loss) from:

              

Investment securities

     (3,948,254 )       (5,755,655 )       (12,475,847 )       (3,443,997 )       (793,588 ) 

In-kind redemptions

     16,938,816         (171,694 )       12,148,527         10,600,375         1,711,770   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net realized gain (loss)

     12,990,562         (5,927,349 )       (327,320 )       7,156,378         918,182   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net change in unrealized appreciation (depreciation) on investment securities

     (10,122,209 )       3,483,525         (2,023,000 )       (4,975,398 )       (611,409 ) 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net realized and unrealized gain (loss)

     2,868,353         (2,443,824 )       (2,350,320 )       2,180,980         306,773   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets resulting from operations

   $ 3,612,849       $ (2,341,002 )     $ (422,845 )     $ 2,706,913       $ 550,874   
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   26  

 

 

 

    
PowerShares
DWA Healthcare
Momentum
Portfolio (PTH)		      PowerShares
DWA Industrials
Momentum
Portfolio (PRN)		      PowerShares
DWA Technology
Momentum
Portfolio (PTF)		      PowerShares
DWA Utilities
Momentum
Portfolio (PUI)		      PowerShares
NASDAQ Internet
Portfolio (PNQI)		  
           
$ 56,857       $ 375,267       $ 435,308       $ 3,152,104       $ 480,563   
  206         146         280         320         137   
  16,574         —         180,795         123,433         84,621   
  —         (3,129 )       —         —         —   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  73,637         372,284         616,383         3,275,857         565,321   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
           
  181,870         110,635         412,233         509,185         846,953   
  54,561         11,793         123,670         134,611         —   
  18,837         18,022         18,501         19,075         —   
  13,987         13,430         13,366         12,894         —   
  4,486         4,223         5,446         5,863         —   
  3,506         3,393         3,249         2,923         —   
  12,172         7,696         11,266         7,549         —   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  289,419         169,192         587,731         692,100         846,953   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  (71,267 )       (36,499 )       (93,176 )       (81,232 )       (68 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  218,152         132,693         494,555         610,868         846,885   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  (144,515 )       239,591         121,828         2,664,989         (281,564 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
           
           
  (2,571,544 )       (413,661 )       (4,537,905 )       (3,161,406 )       (2,444,339 ) 
  8,412,472         1,959,224         12,727,307         13,041,814         15,357,527   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  5,840,928         1,545,563         8,189,402         9,880,408         12,913,188   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  (3,961,869 )       (357,767 )       6,211,213         (7,038,745 )       22,159,191   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  1,879,059         1,187,796         14,400,615         2,841,663         35,072,379   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 1,734,544       $ 1,427,387       $ 14,522,443       $ 5,506,652       $ 34,790,815   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

   27  

 

 

Statements of Changes in Net Assets

For the six months ended October 31, 2016 and the year ended April 30, 2016

(Unaudited)

 

    PowerShares DWA Basic
Materials Momentum
Portfolio (PYZ)		      PowerShares DWA Consumer
Cyclicals Momentum
Portfolio (PEZ)		  
    October 31, 2016      April 30, 2016      October 31, 2016      April 30, 2016  
Operations:           

Net investment income

   $ 744,496       $ 814,137       $ 102,822       $ 722,497   

Net realized gain (loss)

     12,990,562         (3,589,718 )       (5,927,349 )       (19,340,333 ) 

Net change in unrealized appreciation (depreciation)

     (10,122,209 )       9,952,259         3,483,525         (8,257,723 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets resulting from operations

     3,612,849         7,176,678         (2,341,002 )       (26,875,559 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
Distributions to Shareholders from:           

Net investment income

     (693,873 )       (869,950 )       (359,574 )       (507,462 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
Shareholder Transactions:           

Proceeds from shares sold

     120,545,437         118,077,520         4,208,088         242,968,038   

Value of shares repurchased

     (113,189,616 )       (33,968,926 )       (49,873,548 )       (219,083,505 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets resulting from shares transactions

     7,355,821         84,108,594         (45,665,460 )       23,884,533   
 

 

 

     

 

 

     

 

 

     

 

 

  

Increase (Decrease) in Net Assets

     10,274,797         90,415,322         (48,366,036 )       (3,498,488 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
Net Assets:           

Beginning of period

     168,497,420         78,082,098         92,964,395         96,462,883   
 

 

 

     

 

 

     

 

 

     

 

 

  

End of period

   $ 178,772,217       $ 168,497,420       $ 44,598,359       $ 92,964,395   
 

 

 

     

 

 

     

 

 

     

 

 

  

Undistributed net investment income at end of period

   $ 169,522       $ 118,899       $ (13,524 )     $ 243,228   
 

 

 

     

 

 

     

 

 

     

 

 

  
Changes in Shares Outstanding:           

Shares sold

     2,150,000         2,350,000         100,000         5,250,000   

Shares repurchased

     (2,000,000 )       (700,000 )       (1,200,000 )       (5,150,000 ) 

Shares outstanding, beginning of period

     3,100,000         1,450,000         2,200,000         2,100,000   
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding, end of period

     3,250,000         3,100,000         1,100,000         2,200,000   
 

 

 

     

 

 

     

 

 

     

 

 

  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   28  

 

 

 

PowerShares DWA Consumer
Staples Momentum
Portfolio (PSL) 
      PowerShares DWA Energy
Momentum
Portfolio (PXI) 
      PowerShares DWA Financial
Momentum
Portfolio (PFI) 
  
October 31, 2016      April 30, 2016      October 31, 2016      April 30, 2016      October 31, 2016      April 30, 2016  
              
$ 1,927,475       $ 1,859,483       $ 525,933       $ 1,751,429       $ 244,101       $ 444,647   
  (327,320 )       2,917,120         7,156,378         (47,431,832 )       918,182         (1,326,466 ) 
  (2,023,000 )       2,304,927         (4,975,398 )       5,917,263         (611,409 )       (271,892 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  (422,845 )       7,081,530         2,706,913         (39,763,140 )       550,874         (1,153,711 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
              
  (2,274,524 )       (1,309,748 )       (674,207 )       (2,409,629 )       (251,991 )       (414,019 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
              
  56,859,551         384,038,893         50,873,201         40,220,901         13,831,795         6,051,459   
  (120,380,346 )       (190,454,068 )       (56,878,689 )       (55,939,362 )       (16,923,611 )       (13,512,339 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  (63,520,795 )       193,584,825         (6,005,488 )       (15,718,461 )       (3,091,816 )       (7,460,880 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  (66,218,164 )       199,356,607         (3,972,782 )       (57,891,230 )       (2,792,933 )       (9,028,610 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
              
  297,070,019         97,713,412         125,286,453         183,177,683         29,417,987         38,446,597   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 230,851,855       $ 297,070,019       $ 121,313,671       $ 125,286,453       $ 26,625,054       $ 29,417,987   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 303,622       $ 650,671       $ (7,535 )     $ 140,739       $ 111,261       $ 119,151   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
              
  1,000,000         6,850,000         1,300,000         1,100,000         450,000         200,000   
  (2,100,000 )       (3,450,000 )       (1,450,000 )       (1,500,000 )       (550,000 )       (450,000 ) 
  5,300,000         1,900,000         3,300,000         3,700,000         1,000,000         1,250,000   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  4,200,000         5,300,000         3,150,000         3,300,000         900,000         1,000,000   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

   29  

 

 

Statements of Changes in Net Assets (continued)

For the six months ended October 31, 2016 and the year ended April 30, 2016

(Unaudited)

 

    PowerShares DWA Healthcare
Momentum Portfolio (PTH) 
     PowerShares DWA Industrials
Momentum Portfolio (PRN) 
  
    October 31, 2016     April 30, 2016     October 31, 2016     April 30, 2016  
Operations:        

Net investment income (loss)

   $ (144,515 )    $ (954,074 )    $ 239,591      $ 441,691   

Net realized gain (loss)

     5,840,928        (58,814,460 )      1,545,563        (6,082,402 ) 

Net change in unrealized appreciation (depreciation)

     (3,961,869 )      (13,159,154 )      (357,767 )      (4,408,769 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

     1,734,544        (72,927,688 )      1,427,387        (10,049,480 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
Distributions to Shareholders from:        

Net investment income

     —        —        (127,963 )      (525,854 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
Shareholder Transactions:        

Proceeds from shares sold

     33,292,735        169,070,157        12,068,975        64,488,214   

Value of shares repurchased

     (49,956,011 )      (199,613,152 )      (14,475,672 )      (123,450,417 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from shares transactions

     (16,663,276 )      (30,542,995 )      (2,406,697 )      (58,962,203 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Increase (Decrease) in Net Assets

     (14,928,732 )      (103,470,683 )      (1,107,273 )      (69,537,537 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
Net Assets:        

Beginning of period

     75,331,764        178,802,447        42,876,284        112,413,821   
 

 

 

    

 

 

    

 

 

    

 

 

  

End of period

   $ 60,403,032      $ 75,331,764      $ 41,769,011      $ 42,876,284   
 

 

 

    

 

 

    

 

 

    

 

 

  

Undistributed net investment income (loss) at end of period

   $ (339,031 )    $ (194,516 )    $ 155,256      $ 43,628   
 

 

 

    

 

 

    

 

 

    

 

 

  
Changes in Shares Outstanding:        

Shares sold

     650,000        2,800,000        250,000        1,400,000   

Shares repurchased

     (1,000,000 )      (4,200,000 )      (300,000 )      (2,850,000 ) 

Shares outstanding, beginning of period

     1,700,000        3,100,000        950,000        2,400,000   
 

 

 

    

 

 

    

 

 

    

 

 

  

Shares outstanding, end of period

     1,350,000        1,700,000        900,000        950,000   
 

 

 

    

 

 

    

 

 

    

 

 

  

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   30  

 

 

 

PowerShares DWA Technology
Momentum Portfolio (PTF) 
      PowerShares DWA Utilities
Momentum Portfolio (PUI) 
      PowerShares NASDAQ Internet
Portfolio (PNQI) 
  
October 31, 2016      April 30, 2016      October 31, 2016      April 30, 2016      October 31, 2016      April 30, 2016  
              
$ 121,828       $ (57,773 )     $ 2,664,989       $ 1,801,366       $ (281,564 )     $ (509,838 ) 
  8,189,402         (26,246,821 )       9,880,408         4,654,292         12,913,188         13,802,424   
  6,211,213         (4,839,493 )       (7,038,745 )       6,605,206         22,159,191         (6,067,975 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  14,522,443         (31,144,087 )       5,506,652         13,060,864         34,790,815         7,224,611   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
              
  —         —         (2,693,587 )       (1,178,184 )       —         —   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
              
  47,360,042         288,451,357         85,730,454         198,194,423         33,731,758         136,066,781   
  (92,712,684 )       (139,271,747 )       (141,937,123 )       (44,017,408 )       (52,530,275 )       (80,990,297 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  (45,352,642 )       149,179,610         (56,206,669 )       154,177,015         (18,798,517 )       55,076,484   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  (30,830,199 )       118,035,523         (53,393,604 )       166,059,695         15,992,298         62,301,095   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
              
  182,623,252         64,587,729         200,953,116         34,893,421         279,152,021         216,850,926   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 151,793,053       $ 182,623,252       $ 147,559,512       $ 200,953,116       $ 295,144,319       $ 279,152,021   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
$ 21,125       $ (100,703 )     $ 719,540       $ 748,138       $ (587,185 )     $ (305,621 ) 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
              
  1,150,000         7,050,000         3,150,000         8,250,000         400,000         1,750,000   
  (2,350,000 )       (3,600,000 )       (5,400,000 )       (1,800,000 )       (650,000 )       (1,100,000 ) 
  5,050,000         1,600,000         8,000,000         1,550,000         3,650,000         3,000,000   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
  3,850,000         5,050,000         5,750,000         8,000,000         3,400,000         3,650,000   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

   31  

 

 

Financial Highlights

 

PowerShares DWA Basic Materials Momentum Portfolio (PYZ)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016      2015      2014      2013      2012  
Per Share Operating Performance:                

Net asset value at beginning of period

   $ 54.35      $   53.85       $ 52.33       $ 43.38       $ 38.24      $ 40.66  

Net investment income(a)

     0.23        0.58         0.43         0.51         0.63         0.47   

Net realized and unrealized gain (loss) on investments

     0.64        0.59         1.57         8.95         5.16         (2.46 ) 

Total from investment operations

     0.87        1.17         2.00         9.46         5.79        (1.99 )

Distributions to shareholders from:

                

Net investment income

     (0.21 )      (0.67 )       (0.48 )       (0.51 )       (0.65 )       (0.43 ) 

Net asset value at end of period

   $ 55.01      $ 54.35       $ 53.85       $ 52.33       $ 43.38      $ 38.24  

Market price at end of period(b)

   $ 55.03      $ 54.38       $ 53.80       $ 52.31       $ 43.29      $ 38.20  
Net Asset Value Total Return(c)     1.61 %      2.32 %       3.82 %       21.97 %       15.37 %       (4.76 )% 
Market Price Total Return(c)     1.59 %      2.47 %       3.77 %       22.18 %       15.26 %       (4.88 )% 
Ratios/Supplemental Data:                

Net assets at end of period (000’s omitted)

   $ 178,772      $ 168,497       $ 78,082       $ 94,190       $ 80,253       $ 66,924   

Ratio to average net assets of:

                

Expenses, after Waivers

     0.60 %(d)      0.60 %       0.60 %       0.64 %       0.65 %       0.65 % 

Expenses, prior to Waivers

     0.66 %(d)      0.69 %       0.69 %       0.68 %       0.72 %       0.76 % 

Net investment income, after Waivers

     0.80 %(d)      1.17 %       0.79 %       1.08 %       1.59 %       1.33 % 

Portfolio turnover rate(e)

     76 %      96 %       80 %       158 %       63 %       78 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016     2015      2014      2013      2012  
Per Share Operating Performance:               

Net asset value at beginning of period

   $ 42.26      $   45.93      $ 39.79       $ 34.19       $ 29.90      $ 27.54  

Net investment income(a)

     0.08        0.17        0.27         0.17         0.39         0.18   

Net realized and unrealized gain (loss) on investments

     (1.53 )      (3.71 )      6.06         5.63         4.24         2.37   

Total from investment operations

     (1.45 )      (3.54 )      6.33         5.80         4.63        2.55  

Distributions to shareholders from:

               

Net investment income

     (0.27 )      (0.13 )      (0.19 )       (0.20 )       (0.34 )       (0.19 ) 

Net asset value at end of period

   $ 40.54      $ 42.26      $ 45.93       $ 39.79       $ 34.19      $ 29.90  

Market price at end of period(b)

   $ 40.56      $ 42.25      $ 45.93       $ 39.74       $ 34.16      $ 29.89  
Net Asset Value Total Return(c)     (3.43 )%      (7.73 )%      15.91 %       16.97 %       15.67 %       9.41 % 
Market Price Total Return(c)     (3.36 )%      (7.76 )%      16.06 %       16.93 %       15.60 %       9.41 % 
Ratios/Supplemental Data:               

Net assets at end of period (000’s omitted)

   $ 44,598      $ 92,964      $ 96,463       $ 45,754       $ 23,933       $ 19,437   

Ratio to average net assets of:

               

Expenses, after Waivers

     0.60 %(d)      0.60 %      0.60 %       0.64 %       0.65 %       0.65 % 

Expenses, prior to Waivers

     0.84 %(d)      0.71 %      0.81 %       0.91 %       0.93 %       1.19 % 

Net investment income, after Waivers

     0.36 %(d)      0.39 %      0.63 %       0.42 %       1.29 %       0.69 % 

Portfolio turnover rate(e)

     59 %      139 %      114 %       236 %       130 %       88 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   32  

 

 

Financial Highlights (continued)

 

PowerShares DWA Consumer Staples Momentum Portfolio (PSL)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016      2015     2014      2013      2012  
Per Share Operating Performance:               

Net asset value at beginning of period

   $ 56.05      $   51.43       $ 43.04      $ 39.69       $ 32.61      $ 31.36  

Net investment income(a)

     0.40        0.43         0.76 (b)      0.66         0.66         0.48   

Net realized and unrealized gain (loss) on investments

     (1.02 )      4.54         8.37        3.26         7.13         1.22   

Total from investment operations

     (0.62 )      4.97         9.13        3.92         7.79        1.70  

Distributions to shareholders from:

               

Net investment income

     (0.47 )      (0.35 )       (0.74 )      (0.57 )       (0.71 )       (0.45 ) 

Net asset value at end of period

   $ 54.96      $ 56.05       $ 51.43      $ 43.04       $ 39.69      $ 32.61  

Market price at end of period(c)

   $ 54.94      $ 56.05       $ 51.43      $ 43.03       $ 39.67      $ 32.60  
Net Asset Value Total Return(d)     (1.13 )%      9.67 %       21.28 %      9.93 %       24.29 %       5.53 % 
Market Price Total Return(d)     (1.17 )%      9.67 %       21.31 %      9.97 %       24.27 %       5.47 % 
Ratios/Supplemental Data:               

Net assets at end of period (000’s omitted)

   $ 230,852      $ 297,070       $ 97,713      $ 38,738       $ 37,708       $ 39,131   

Ratio to average net assets of:

               

Expenses, after Waivers

     0.60 %(e)      0.60 %       0.60 %      0.64 %       0.65 %       0.65 % 

Expenses, prior to Waivers

     0.70 %(e)      0.69 %       0.78 %      0.79 %       0.82 %       0.89 % 

Net investment income, after Waivers

     1.39 %(e)      0.76 %       1.54 %(b)      1.56 %       1.94 %       1.54 % 

Portfolio turnover rate(f)

     59 %      113 %       83 %      175 %       57 %       35 % 

 

(a)  Based on average shares outstanding.
(b)  Net investment income per share and the ratio of net investment income to average net assets include a significant dividend received of $5.77 per share owned of Pilgrim’s Pride Corp. on January 28, 2015. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividend are $0.28 and 0.55%, respectively.
(c)  The mean between the last bid and ask prices.
(d)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(e)  Annualized.
(f)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

PowerShares DWA Energy Momentum Portfolio (PXI)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016     2015     2014      2013      2012  
Per Share Operating Performance:              

Net asset value at beginning of period

   $ 37.97      $   49.51      $ 60.41      $ 48.39       $ 40.45      $ 44.63  

Net investment income(a)

     0.16        0.51        0.53        0.34         0.47         0.21   

Net realized and unrealized gain (loss) on investments

     0.59        (11.39 )      (10.82 )      12.01         8.13         (4.15 ) 

Total from investment operations

     0.75        (10.88 )      (10.29 )      12.35         8.60        (3.94 )

Distributions to shareholders from:

              

Net investment income

     (0.21 )      (0.66 )      (0.61 )      (0.33 )       (0.66 )       (0.24 ) 

Net asset value at end of period

   $ 38.51      $ 37.97      $ 49.51      $ 60.41       $ 48.39      $ 40.45  

Market price at end of period(b)

   $ 38.58      $ 37.95      $ 49.51      $ 60.37       $ 48.36      $ 40.47  
Net Asset Value Total Return(c)     1.98 %      (22.01 )%      (17.08 )%      25.66 %       21.48 %       (8.79 )% 
Market Price Total Return(c)     2.21 %      (22.05 )%      (17.02 )%      25.66 %       21.35 %       (8.78 )% 
Ratios/Supplemental Data:              

Net assets at end of period (000’s omitted)

   $ 121,314      $ 125,286      $ 183,178      $ 214,441       $ 137,916       $ 141,562   

Ratio to average net assets of:

              

Expenses, after Waivers

     0.60 %(d)      0.60 %      0.60 %      0.64 %       0.66 %       0.65 % 

Expenses, prior to Waivers

     0.73 %(d)      0.76 %      0.74 %      0.64 %       0.69 %       0.66 % 

Net investment income, after Waivers

     0.82 %(d)      1.32 %      0.97 %      0.65 %       1.10 %       0.54 % 

Portfolio turnover rate(e)

     48 %      119 %      109 %      198 %       80 %       107 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   33  

 

 

Financial Highlights (continued)

 

PowerShares DWA Financial Momentum Portfolio (PFI)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016     2015     2014     2013     2012  
Per Share Operating Performance:            

Net asset value at beginning of period

   $ 29.42      $   30.76      $ 27.82      $ 23.92      $ 20.08     $ 20.45  

Net investment income(a)

     0.26        0.42        0.37        0.32        0.35        0.25   

Net realized and unrealized gain (loss) on investments

     0.17        (1.37 )      2.92        3.93        3.83        (0.42 ) 

Total from investment operations

     0.43        (0.95 )      3.29        4.25        4.18       (0.17 )

Distributions to shareholders from:

            

Net investment income

     (0.27 )      (0.39 )      (0.35 )      (0.35 )      (0.34 )      (0.20 ) 

Net asset value at end of period

   $ 29.58      $ 29.42      $ 30.76      $ 27.82      $ 23.92     $ 20.08  

Market price at end of period(b)

   $ 29.57      $ 29.43      $ 30.76      $ 27.79      $ 23.90     $ 20.07  
Net Asset Value Total Return(c)     1.45 %      (3.11 )%      11.84 %      17.89 %      21.07 %      (0.66 )% 
Market Price Total Return(c)     1.38 %      (3.08 )%      11.96 %      17.86 %      21.03 %      (0.66 )% 
Ratios/Supplemental Data:            

Net assets at end of period (000’s omitted)

   $ 26,625      $ 29,418      $ 38,447      $ 36,167      $ 20,330      $ 18,071   

Ratio to average net assets of:

            

Expenses, after Waivers

     0.60 %(d)      0.60 %      0.60 %(e)      0.64 %(e)      0.66 %(e)      0.65 %(e) 

Expenses, prior to Waivers

     0.87 %(d)      0.84 %      0.85 %(e)      0.91 %(e)      1.10 %(e)      1.21 %(e) 

Net investment income, after Waivers

     1.71 %(d)      1.38 %      1.24 %      1.20 %      1.66 %      1.33 % 

Portfolio turnover rate(f)

     64 %      119 %      115 %      232 %      118 %      102 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment companies’ expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies the Fund invests in. The effect of the estimated investment companies’ expenses that the Fund bears indirectly is included in the Fund’s total return.
(f)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   34  

 

 

Financial Highlights (continued)

 

PowerShares DWA Healthcare Momentum Portfolio (PTH)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016     2015     2014      2013      2012  
Per Share Operating Performance:              

Net asset value at beginning of period

   $ 44.31      $   57.68      $ 45.34      $ 38.76       $ 32.29      $ 31.41  

Net investment income (loss)(a)

     (0.09 )      (0.27 )      (0.20 )      0.00 (b)       0.43         0.02   

Net realized and unrealized gain (loss) on investments

     0.52        (13.10 )      12.54        6.73         6.39         0.86   

Total from investment operations

     0.43        (13.37 )      12.34        6.73         6.82        0.88  

Distributions to shareholders from:

              

Net investment income

     —        —        —        (0.15 )       (0.35 )       —   

Net asset value at end of period

   $ 44.74      $ 44.31      $ 57.68      $ 45.34       $ 38.76      $ 32.29  

Market price at end of period(c)

   $ 44.75      $ 44.28      $ 57.64      $ 45.34       $ 38.69      $ 32.30  
Net Asset Value Total Return(d)     0.97 %      (23.18 )%      27.22 %      17.41 %       21.31 %       2.80 % 
Market Price Total Return(d)     1.06 %      (23.18 )%      27.13 %      17.62 %       21.06 %       2.74 % 
Ratios/Supplemental Data:              

Net assets at end of period (000’s omitted)

   $ 60,403      $ 75,332      $ 178,802      $ 106,560       $ 60,071       $ 37,134   

Ratio to average net assets of:

              

Expenses, after Waivers

     0.60 %(e)      0.60 %      0.60 %      0.64 %       0.65 %       0.65 % 

Expenses, prior to Waivers

     0.80 %(e)      0.70 %      0.68 %      0.68 %       0.74 %       0.82 % 

Net investment income (loss), after Waivers

     (0.40 )%(e)      (0.48 )%      (0.38 )%      0.01 %       1.26 %       0.05 % 

Portfolio turnover rate(f)

     90 %      200 %      151 %      278 %       93 %       99 % 

 

(a)  Based on average shares outstanding.
(b)  Amount represents less than $0.005.
(c)  The mean between the last bid and ask prices.
(d)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(e)  Annualized.
(f)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

PowerShares DWA Industrials Momentum Portfolio (PRN)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016     2015      2014      2013      2012  
Per Share Operating Performance:               

Net asset value at beginning of period

   $ 45.13      $   46.84      $ 46.47       $ 36.74       $ 30.02      $ 32.47  

Net investment income(a)

     0.26        0.22        0.17         0.19         0.52         0.22   

Net realized and unrealized gain (loss) on investments

     1.16        (1.73 )      0.35         9.72         6.89         (2.48 ) 

Total from investment operations

     1.42        (1.51 )      0.52         9.91         7.41        (2.26 )

Distributions to shareholders from:

               

Net investment income

     (0.14 )      (0.20 )      (0.15 )       (0.18 )       (0.65 )       (0.19 ) 

Return of capital

     —        —        —         —         (0.04 )       —   

Total distributions

     (0.14 )      (0.20 )      (0.15 )       (0.18 )       (0.69 )      (0.19 )

Net asset value at end of period

   $ 46.41      $ 45.13      $ 46.84       $ 46.47       $ 36.74      $ 30.02  

Market price at end of period(b)

   $ 46.40      $ 45.13      $ 46.85       $ 46.43       $ 36.72      $ 30.00  
Net Asset Value Total Return(c)     3.14 %      (3.24 )%      1.12 %       27.01 %       25.18 %       (6.91 )% 
Market Price Total Return(c)     3.11 %      (3.26 )%      1.23 %       26.97 %       25.19 %       (7.00 )% 
Ratios/Supplemental Data:               

Net assets at end of period (000’s omitted)

   $ 41,769      $ 42,876      $ 112,414       $ 169,622       $ 38,573       $ 30,017   

Ratio to average net assets of:

               

Expenses, after Waivers

     0.60 %(d)      0.60 %      0.60 %       0.63 %       0.65 %       0.65 % 

Expenses, prior to Waivers

     0.76 %(d)      0.65 %      0.64 %       0.66 %       0.92 %       0.80 % 

Net investment income, after Waivers

     1.08 %(d)      0.48 %      0.36 %       0.43 %       1.65 %       0.77 % 

Portfolio turnover rate(e)

     63 %      122 %      121 %       285 %       116 %       129 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   35  

 

 

Financial Highlights (continued)

 

PowerShares DWA Technology Momentum Portfolio (PTF)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016     2015      2014      2013      2012  
Per Share Operating Performance:               

Net asset value at beginning of period

   $ 36.16      $   40.37      $ 32.44       $ 29.14       $ 27.29      $ 27.66  

Net investment income (loss)(a)

     0.03        (0.01 )      0.17         0.04         0.17         0.01   

Net realized and unrealized gain (loss) on investments

     3.24        (4.20 )      8.02         3.32         1.88         (0.38 ) 

Total from investment operations

     3.27        (4.21 )      8.19         3.36         2.05        (0.37 )

Distributions to shareholders from:

               

Net investment income

     —        —        (0.26 )       (0.06 )       (0.20 )       —   

Net asset value at end of period

   $ 39.43      $ 36.16      $ 40.37       $ 32.44       $ 29.14      $ 27.29  

Market price at end of period(b)

   $ 39.43      $ 36.16      $ 40.36       $ 32.45       $ 29.06      $ 27.28  
Net Asset Value Total Return(c)     9.04 %      (10.43 )%      25.29 %       11.52 %       7.59 %       (1.34 )% 
Market Price Total Return(c)     9.04 %      (10.41 )%      25.22 %       11.86 %       7.34 %       (1.34 )% 
Ratios/Supplemental Data:               

Net assets at end of period (000’s omitted)

   $ 151,793      $ 182,623      $ 64,588       $ 53,525       $ 32,053       $ 31,387   

Ratio to average net assets of:

               

Expenses, after Waivers

     0.60 %(d)      0.60 %      0.60 %       0.64 %       0.65 %       0.65 % 

Expenses, prior to Waivers

     0.71 %(d)      0.70 %      0.77 %       0.80 %       0.89 %       0.94 % 

Net investment income (loss), after Waivers

     0.15 %(d)      (0.03 )%      0.46 %       0.13 %       0.63 %       0.03 % 

Portfolio turnover rate(e)

     76 %      159 %      157 %       263 %       95 %       108 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

PowerShares DWA Utilities Momentum Portfolio (PUI)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016      2015      2014      2013      2012  
Per Share Operating Performance:                

Net asset value at beginning of period

   $ 25.12      $   22.51       $ 22.49       $ 19.82       $ 16.69      $ 17.12  

Net investment income(a)

     0.35        0.64         0.57         0.47         0.45         0.41   

Net realized and unrealized gain (loss) on investments

     0.57        2.60         (0.01 )       2.68         3.14         (0.38 ) 

Total from investment operations

     0.92        3.24         0.56         3.15         3.59        0.03  

Distributions to shareholders from:

                

Net investment income

     (0.38 )      (0.63 )       (0.54 )       (0.48 )       (0.46 )       (0.46 ) 

Net asset value at end of period

   $ 25.66      $ 25.12       $ 22.51       $ 22.49       $ 19.82      $ 16.69  

Market price at end of period(b)

   $ 25.66      $ 25.10       $ 22.50       $ 22.47       $ 19.79      $ 16.66  
Net Asset Value Total Return(c)     3.65 %      14.86 %       2.48 %       16.27 %       21.90 %       0.26 % 
Market Price Total Return(c)     3.73 %      14.81 %       2.53 %       16.35 %       21.94 %       0.02 % 
Ratios/Supplemental Data:                

Net assets at end of period (000’s omitted)

   $ 147,560      $ 200,953       $ 34,893       $ 41,601       $ 42,604       $ 43,393   

Ratio to average net assets of:

                

Expenses, after Waivers

     0.60 %(d)      0.60 %       0.60 %       0.63 %       0.63 %       0.63 % 

Expenses, prior to Waivers

     0.68 %(d)      0.74 %       0.80 %       0.77 %       0.81 %       0.77 % 

Net investment income, after Waivers

     2.62 %(d)      2.74 %       2.49 %       2.31 %       2.54 %       2.45 % 

Portfolio turnover rate(e)

     31 %      91 %       47 %       131 %       48 %       71 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   36  

 

 

Financial Highlights (continued)

 

PowerShares NASDAQ Internet Portfolio (PNQI)

 

    Six Months Ended
October 31, 2016
(Unaudited)		     Year Ended April 30,  
      2016     2015     2014     2013     2012  
Per Share Operating Performance:            

Net asset value at beginning of period

   $ 76.48      $   72.28      $ 61.62      $ 46.09      $ 41.08     $ 41.37  

Net investment income (loss)(a)

     (0.08 )      (0.16 )      (0.21 )      (0.27 )      (0.01 )      (0.08 ) 

Net realized and unrealized gain (loss) on investments

     10.41        4.36        10.87        15.80        5.04        (0.21 ) 

Total from investment operations

     10.33        4.20        10.66        15.53        5.03       (0.29 )

Distributions to shareholders from:

            

Net investment income

     —        —        —        —        (0.02 )      —   

Net asset value at end of period

   $ 86.81      $ 76.48      $ 72.28      $ 61.62      $ 46.09     $ 41.08  

Market price at end of period(b)

   $ 86.87      $ 76.44      $ 72.26      $ 61.51      $ 46.08     $ 41.08  
Net Asset Value Total Return(c)     13.50 %      5.81 %      17.30 %      33.70 %      12.26 %      (0.70 )% 
Market Price Total Return(c)     13.64 %      5.79 %      17.48 %      33.48 %      12.23 %      (0.77 )% 
Ratios/Supplemental Data:            

Net assets at end of period (000’s omitted)

   $ 295,144      $ 279,152      $ 216,851      $ 289,628      $ 64,525      $ 63,678   

Ratio to average net assets of:

            

Expenses

     0.60 %(d)      0.60 %      0.60 %      0.60 %      0.60 %      0.60 % 

Net investment income (loss)

     (0.20 )%(d)      (0.21 )%      (0.31 )%      (0.42 )%      (0.02 )%      (0.22 )% 

Portfolio turnover rate(e)

     4 %      27 %      31 %      21 %      20 %      23 % 

 

(a)  Based on average shares outstanding.
(b)  The mean between the last bid and ask prices.
(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
(d)  Annualized.
(e)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

 

 

   37  

 

 

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

October 31, 2016

(Unaudited)

 

Note 1. Organization

PowerShares Exchange-Traded Fund Trust (the “Trust”) was organized as a Massachusetts business trust on June 9, 2000 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of October 31, 2016, the Trust offered fifty-three portfolios. This report includes the following portfolios:

 

Full Name

   

Short Name

PowerShares DWA Basic Materials Momentum Portfolio (PYZ)    “DWA Basic Materials Momentum Portfolio”
PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)    “DWA Consumer Cyclicals Momentum Portfolio”
PowerShares DWA Consumer Staples Momentum Portfolio (PSL)    “DWA Consumer Staples Momentum Portfolio”
PowerShares DWA Energy Momentum Portfolio (PXI)    “DWA Energy Momentum Portfolio”
PowerShares DWA Financial Momentum Portfolio (PFI)    “DWA Financial Momentum Portfolio”
PowerShares DWA Healthcare Momentum Portfolio (PTH)    “DWA Healthcare Momentum Portfolio”
PowerShares DWA Industrials Momentum Portfolio (PRN)    “DWA Industrials Momentum Portfolio”
PowerShares DWA Technology Momentum Portfolio (PTF)    “DWA Technology Momentum Portfolio”
PowerShares DWA Utilities Momentum Portfolio (PUI)    “DWA Utilities Momentum Portfolio”
PowerShares NASDAQ Internet Portfolio (PNQI)    “NASDAQ Internet Portfolio”

Each portfolio (each, a “Fund”, and collectively, the “Funds”) represents a separate series of the Trust. The shares of the Funds are referred to herein as “Shares” or “Fund’s Shares.” Each Fund’s Shares are listed and traded on NYSE Arca, Inc., except for Shares of NASDAQ Internet Portfolio, which are listed and traded on The NASDAQ Stock Market LLC.

The market price of each Share may differ to some degree from the Fund’s net asset value (“NAV”). Unlike conventional mutual funds, each Fund issues and redeems Shares on a continuous basis, at NAV, only in a large specified number of Shares, each called a “Creation Unit.” Creation Units are issued and redeemed principally in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”). Except when aggregated in Creation Units by Authorized Participants, the Shares are not individually redeemable securities of the Funds.

The investment objective of each Fund is to seek investment results that generally correspond (before fees and expenses) to the price and yield of its respective index listed below (each, an “Underlying Index”):

 

Fund

   

Underlying Index

DWA Basic Materials Momentum Portfolio    Dorsey Wright® Basic Materials Technical Leaders Index
DWA Consumer Cyclicals Momentum Portfolio    Dorsey Wright® Consumer Cyclicals Technical Leaders Index
DWA Consumer Staples Momentum Portfolio    Dorsey Wright® Consumer Staples Technical Leaders Index
DWA Energy Momentum Portfolio    Dorsey Wright® Energy Technical Leaders Index
DWA Financial Momentum Portfolio    Dorsey Wright® Financials Technical Leaders Index
DWA Healthcare Momentum Portfolio    Dorsey Wright® Healthcare Technical Leaders Index
DWA Industrials Momentum Portfolio    Dorsey Wright® Industrials Technical Leaders Index
DWA Technology Momentum Portfolio    Dorsey Wright® Technology Technical Leaders Index
DWA Utilities Momentum Portfolio    Dorsey Wright® Utilities Technical Leaders Index
NASDAQ Internet Portfolio    NASDAQ Internet IndexSM

Note 2. Significant Accounting Policies

The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements, including estimates and assumptions related to taxation. Actual results could differ from these estimates. In addition, the Funds monitor for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print. The following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.

 

 

   38  

 

 

 

A. Security Valuation

Securities, including restricted securities, are valued according to the following policies:

A security listed or traded on an exchange (except convertible securities) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and asked prices. For purposes of determining NAV per Share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day NAV per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

Debt obligations (including convertible securities) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts’) prices are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the London world markets. If market quotations are available and reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the NYSE, closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that Invesco PowerShares Capital Management LLC (the “Adviser”) determines are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith following procedures approved by the Board of Trustees. Issuer-specific events, market trends, bid/asked quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

Each Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

Valuations change in response to many factors, including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

 

   39  

 

 

 

B. Other Risks

Index Risk. Unlike many investment companies, the Funds do not utilize investing strategies that seek returns in excess of their Underlying Indexes. Therefore, a Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.

Equity Risk. Equity risk is the risk that the value of the securities that each Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities that a Fund holds participate or factors relating to specific companies in which the Fund invests. For example, an adverse event, such as an unfavorable earnings report, may depress the value of securities a Fund holds; the price of securities may be particularly sensitive to general movements in the stock market; or a drop in the stock market may depress the price of most or all of the securities a Fund holds. In addition, securities of an issuer in the Fund’s portfolio may decline in price if the issuer fails to make anticipated dividend payments because, among other reasons, the issuer of the security experiences a decline in its financial condition.

Industry Concentration Risk. In following its methodology, each Fund’s Underlying Index from time to time will be concentrated to a significant degree in securities of issuers located in a single industry or a sector. To the extent that an Underlying Index concentrates in the securities of issuers in a particular industry or sector, each Fund will also concentrate its investments to approximately the same extent. By concentrating its investments in an industry or sector, a Fund may face more risks than if it were diversified broadly over numerous industries or sectors. In addition, at times, an industry or sector may be out of favor and underperform other industries or the market as a whole. Any factors detrimental to the performance of such industry or sector will disproportionately impact a Fund’s NAV.

Non-Diversified Fund Risk. NASDAQ Internet Portfolio is non-diversified and can invest a greater portion of its assets in securities of individual issuers than diversified funds. As a result, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund. This may increase the Fund’s volatility and cause the performance of a relatively small number of issuers to have a greater impact on the Fund’s performance.

Non-Correlation Risk. Each Fund’s return may not match the return of its Underlying Index for a number of reasons. For example, each Fund incurs operating expenses not applicable to its Underlying Index, and incurs costs in buying and selling securities, especially when rebalancing the Fund’s securities holdings to reflect changes in the composition of its Underlying Index. In addition, the performance of each Fund and its Underlying Index may vary due to asset valuation differences and differences between each Fund’s portfolio and its Underlying Index resulting from legal restrictions, cost or liquidity constraints.

Momentum Investing Risk. Each Fund (except NASDAQ Internet Portfolio) employs a “momentum” style of investing that is subject to the risk that the securities may be more volatile than the market as a whole, or that the returns on securities that have previously exhibited price momentum are less than returns on other styles of investing. Momentum can turn quickly, and stocks that previously exhibited high momentum may not experience continued positive momentum. In addition, there may be periods when the momentum style of investing is out of favor and therefore, the investment performance of the Fund may suffer.

Small- and Mid-Capitalization Company Risk. Investing in securities of small- and mid-capitalization companies involves greater risk than customarily is associated with investing in larger, more established companies. These companies’ securities may be more volatile and less liquid than those of more established companies. These securities may have returns that vary, sometimes significantly, from the overall securities market. Often small- and mid-capitalization companies and the industries in which they focus are still evolving and, as a result, they may be more sensitive to changing market conditions.

Portfolio Turnover Risk. The Funds may engage in frequent trading of their portfolio securities in connection with the rebalancing or adjustment of their respective Underlying Index. A portfolio turnover rate of 200%, for example, is equivalent to a Fund buying and selling all of its securities two times during the course of a year. A high portfolio turnover rate (such as 100% or more) could result in high brokerage costs for a Fund. While a high portfolio turnover rate can result in an increase in taxable capital gain distributions to a Fund’s shareholders, each Fund will seek to utilize an in-kind creation and redemption mechanism to minimize realization of capital gains to the extent possible.

C. Federal Income Taxes

Each Fund intends to comply with the provisions of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute substantially all of the Fund’s taxable earnings to its shareholders. As such, the Funds will not be subject to federal income taxes on otherwise taxable income (including net realized gains) that is distributed to the shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

Each Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed each Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

 

 

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Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing book and tax treatments for in-kind transactions, losses deferred due to wash sales, and passive foreign investment company adjustments, if any.

The Funds file U.S. federal tax returns and tax returns in certain other jurisdictions. Generally, a Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.

D. Investment Transactions and Investment Income

Investment transactions are accounted for on a trade date basis. Realized gains and losses from the sale or disposition of securities are computed on the specific identified cost basis. Interest income is recorded on the accrual basis. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Realized gains, dividends and interest received by a Fund may give rise to withholding and other taxes imposed by foreign countries. Tax conventions between certain countries and the United States may reduce or eliminate such taxes.

The Funds may periodically participate in litigation related to each Fund’s investments. As such, the Funds may receive proceeds from litigation settlements. Any proceeds received are included in the Statements of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

Corporate actions (including cash dividends) are recorded net of non-reclaimable foreign tax withholdings on the ex-date.

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statements of Operations and the Statements of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of each Fund’s net asset value and, accordingly, they reduce each Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statements of Operations and the Statements of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between each Fund and the Adviser.

E. Country Determination

For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the Adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

F. Expenses

Expenses of the Trust that are directly identifiable to a specific Fund are applied to that Fund. Expenses of the Trust that are not readily identifiable to a specific Fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative net assets of each Fund.

Each Fund (except for NASDAQ Internet Portfolio) is responsible for all of its expenses, including the investment advisory fees, costs of transfer agency, custody, fund administration, legal, audit and other services, interest, taxes, brokerage commissions and other expenses connected with executions of portfolio transactions, sub-licensing fees related to its respective Underlying Index, any distribution fees or expenses, litigation expenses, fees payable to the Trust’s Board members who are not “interested persons” (as defined in the 1940 Act) of the Trust (the “Independent Trustees”), any Trustee who is not an affiliate of the Adviser or Distributor (or any of their affiliates) and who is otherwise an “interested person” of the Trust under the 1940 Act (an “Unaffiliated Trustee”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees and any Unaffiliated Trustee, acquired fund fees and expenses, if any, and extraordinary expenses.

NASDAQ Internet Portfolio has agreed to pay an annual unitary management fee to the Adviser. Out of the unitary management fee, the Adviser has agreed to pay for substantially all expenses of the Fund, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, acquired fund fees and expenses, if any, litigation expenses and other extraordinary expenses.

To the extent a Fund invests in other investment companies, the expenses shown in the accompanying financial statements reflect the expenses of the Fund and do not include any expenses of the investment companies in which it invests. The effects of such investment companies’ expenses are included in the realized and unrealized gain or loss on the investments in the investment companies.

 

 

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G. Dividends and Distributions to Shareholders

Each Fund declares and pays dividends from net investment income, if any, to its shareholders quarterly and records such dividends on ex-dividend date. Generally, each Fund distributes net realized taxable capital gains, if any, annually in cash and records them on ex-dividend date. Such distributions on a tax basis are determined in conformity with federal income tax regulations, which may differ from GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in such Fund’s financial statements as a tax return of capital at fiscal year-end.

H. Securities Lending

During the six-month period ended October 31, 2016, DWA Consumer Cyclicals Momentum Portfolio, DWA Consumer Staples Momentum Portfolio, DWA Energy Momentum Portfolio, DWA Healthcare Momentum Portfolio, DWA Technology Momentum Portfolio, DWA Utilities Momentum Portfolio and NASDAQ Internet Portfolio participated in securities lending. Each Fund loaned portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% (105% for international securities) of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is invested in an affiliated money market fund and is shown as such on the Schedules of Investments. Each Fund bears the risk of loss with respect to the investment of collateral. It is the policy of these Funds to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. When loaning securities, each Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to each Fund if, and to the extent that, the market value of the securities loaned were to increase, and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. The securities loaned are subject to termination at the option of the borrower or each Fund. Upon termination, the borrower will return to each Fund the securities loaned and each Fund will return the collateral. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. Each Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to each Fund. Some of these losses may be indemnified by the lending agent. Each Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Securities lending income on the Statements of Operations. The aggregate value of securities out on loan, if any, is shown on the Statements of Assets and Liabilities.

Note 3. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with the Adviser on behalf of each Fund, pursuant to which the Adviser has overall responsibility for the selection and ongoing monitoring of the Funds’ investments, managing the Funds’ business affairs and providing certain clerical, bookkeeping and other administrative services. Pursuant to that Investment Advisory Agreement, each Fund (except for NASDAQ Internet Portfolio) has agreed to pay the Adviser an annual fee of 0.50% of the Fund’s average daily net assets.

As compensation for its services, NASDAQ Internet Portfolio has agreed to pay the Adviser an annual unitary management fee of 0.60% of the Fund’s average daily net assets. Out of the unitary management fee, the Adviser has agreed to pay for substantially all expenses of NASDAQ Internet Portfolio, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, acquired fund fees and expenses, if any, litigation expenses and other extraordinary expenses.

The Trust also has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Adviser on behalf of each Fund (except NASDAQ Internet Portfolio), pursuant to which the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses (excluding interest expenses, brokerage commissions and other trading expenses, offering costs, taxes, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund (except NASDAQ Internet Portfolio) from exceeding 0.60% of the Fund’s average daily net assets per year (the “Expense Cap”), through at least August 31, 2017. Offering costs excluded from the Expense Cap for each Fund are: (a) initial legal fees pertaining to the Funds’ Shares offered for sale; (b) initial Securities and Exchange Commission and state registration fees; and (c) initial fees paid to be listed on an exchange. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2017. During its term, the Expense Agreement cannot be terminated or amended to increase the Expense Cap without approval of the Board of Trustees.

Further, through August 31, 2018, the Adviser has contractually agreed to waive a portion of each Fund’s management fee in an amount equal to 100% of the net advisory fees an affiliate of the Adviser receives that are attributable to certain of the Fund’s investments in money market funds managed by that affiliate (excluding investments of cash collateral from securities lending). The Adviser cannot discontinue this waiver prior to its expiration. This agreement is not subject to recapture by the Adviser.

 

 

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For the six-month period ended October 31, 2016, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:

 

DWA Basic Materials Momentum Portfolio    $ 55,236   
DWA Consumer Cyclicals Momentum Portfolio      67,919   
DWA Consumer Staples Momentum Portfolio      134,978   
DWA Energy Momentum Portfolio      84,171   
DWA Financial Momentum Portfolio      39,125   
DWA Healthcare Momentum Portfolio      71,267   
DWA Industrials Momentum Portfolio      36,499   
DWA Technology Momentum Portfolio      93,176   
DWA Utilities Momentum Portfolio      81,232   
NASDAQ Internet Portfolio      68   

The Expense Agreement provides that the fees waived or expenses borne by the Adviser are subject to recapture by the Adviser for up to three years from the date the fee was waived or expense was borne by the Adviser, but no recapture payment will be made by a Fund if it would result in the Fund exceeding its Expense Cap as specified above. The Expense Agreement does not apply to NASDAQ Internet Portfolio.

For the following Funds, the amounts available for potential future recapture by the Adviser under the Expense Agreement and the expiration schedule at October 31, 2016 are as follows:

 

     Total
Potential
Recapture
Amounts		      Potential Recapture Amounts Expiring  
      4/30/17      4/30/18      4/30/19      10/31/19  
DWA Basic Materials Momentum Portfolio    $ 234,538       $ 32,772       $ 82,414       $ 64,234       $ 55,118   
DWA Consumer Cyclicals Momentum Portfolio      470,670         72,285         127,393         203,205         67,787   
DWA Consumer Staples Momentum Portfolio      523,655         58,654         101,972         228,313         134,716   
DWA Energy Momentum Portfolio      573,428         —         290,036         199,340         84,052   
DWA Financial Momentum Portfolio      281,434         69,854         94,203         78,303         39,074   
DWA Healthcare Momentum Portfolio      390,865         38,353         88,576         192,773         71,163   
DWA Industrials Momentum Portfolio      165,234         30,573         48,372         49,864         36,425   
DWA Technology Momentum Portfolio      429,401         60,072         104,492         171,801         93,036   
DWA Utilities Momentum Portfolio      308,813         53,817         83,252         90,675         81,069   

The Trust has entered into a Distribution Agreement with Invesco Distributors, Inc. (the “Distributor”), which serves as the distributor of Creation Units for each Fund. The Distributor does not maintain a secondary market in the Shares. The Funds are not charged any fees pursuant to the Distribution Agreement. The Distributor is an affiliate of the Adviser.

The Adviser has entered into a licensing agreement for each Fund with the following entities (each, a “Licensor”):

 

Full Name

   

Licensor

DWA Basic Materials Momentum Portfolio    Dorsey Wright & Associates, LLC
DWA Consumer Cyclicals Momentum Portfolio    Dorsey Wright & Associates, LLC
DWA Consumer Staples Momentum Portfolio    Dorsey Wright & Associates, LLC
DWA Energy Momentum Portfolio    Dorsey Wright & Associates, LLC
DWA Financial Momentum Portfolio    Dorsey Wright & Associates, LLC
DWA Healthcare Momentum Portfolio    Dorsey Wright & Associates, LLC
DWA Industrials Momentum Portfolio    Dorsey Wright & Associates, LLC
DWA Technology Momentum Portfolio    Dorsey Wright & Associates, LLC
DWA Utilities Momentum Portfolio    Dorsey Wright & Associates, LLC
NASDAQ Internet Portfolio    Nasdaq, Inc.

Each Underlying Index name trademark is owned by its respective Licensor. These trademarks have been licensed to the Adviser for use by the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust’s sub-licensing agreement with the Adviser. The

 

 

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Funds (except for NASDAQ Internet Portfolio) are required to pay the sub-licensing fees that are shown on the Statements of Operations. The Funds are not sponsored, endorsed, sold or promoted by the Licensors, and the Licensors make no representation regarding the advisability of investing in any of the Funds.

The Trust has entered into service agreements whereby The Bank of New York Mellon, a wholly-owned subsidiary of The Bank of New York Mellon Corporation, serves as the administrator, custodian, fund accountant and transfer agent for each Fund.

Note 4. Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

 

  Level 1 — Prices are determined using quoted prices in an active market for identical assets.

 

  Level 2 — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.

 

  Level 3 — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect a Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

Except for the Fund listed below, as of October 31, 2016, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedules of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

 

     Investments in Securities  
     Level 1      Level 2      Level 3      Total  
DWA Healthcare Momentum Portfolio            

Equity Securities

    $ 60,516,566       $ —       $ 14,948       $ 60,531,514   
  

 

 

     

 

 

     

 

 

     

 

 

  

Note 5. Tax Information

The amount and character of income and gains to be distributed are determined in accordance with federal income tax regulations, which may differ from GAAP. Reclassifications are made to the Funds’ capital accounts to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Funds’ fiscal year-end.

Capital loss carryforwards are calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforwards actually available for the Funds to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Funds had capital loss carryforwards as of April 30, 2016, which expire as follows:

 

                      Post-effective/no
expiration		              
    2017     2018     2019     Short-Term     Long-Term     Total*     Expired  
DWA Basic Materials Momentum Portfolio   $ 3,783,798      $ 4,534,904      $ 2,521,492      $ 18,863,599      $ 855,858      $ 30,559,651      $ 205,528   
DWA Consumer Cyclicals Momentum Portfolio     1,993,654        —        2,042,056        14,021,123        —        18,056,833        1,246,058   
DWA Consumer Staples Momentum Portfolio     2,156,980        3,935,363        1,180,566        5,101,746        —        12,374,655        562,037   
DWA Energy Momentum Portfolio     2,869,667        3,914,682        1,167,692        78,949,662        5,073,162        91,974,865        880,885   
DWA Financial Momentum Portfolio     1,821,971        4,413,894        1,979,006        4,049,429        —        12,264,300        614,940   
DWA Healthcare Momentum Portfolio     17,890,879        18,737,951        2,739,963        36,409,098        —        75,777,891        2,234,184   

 

 

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                      Post-effective/no
expiration		              
    2017     2018     2019     Short-Term     Long-Term     Total*     Expired  
DWA Industrials Momentum Portfolio   $ 6,525,387      $ 21,245,288      $ 2,746,746      $ 32,845,118      $ 120,210      $ 63,482,749      $ 1,476,057   
DWA Technology Momentum Portfolio     8,220,697        7,658,564        3,016,840        20,810,078        62,230        39,768,409        2,465,875   
DWA Utilities Momentum Portfolio     1,366,073        5,885,935        874,386        5,215,594        1,459,850        14,801,838        2,124,736   
NASDAQ Internet Portfolio     —        3,360        74,863        4,699,286        4,237,909        9,015,418        —   

 

* Capital loss carryforwards as of the date listed above are reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

Note 6. Investment Transactions

For the six-month period ended October 31, 2016, the cost of securities purchased and proceeds from sales of securities (other than short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, if any) were as follows:

 

     Purchases      Sales  
DWA Basic Materials Momentum Portfolio    $ 150,731,352       $ 153,101,473   
DWA Consumer Cyclicals Momentum Portfolio      34,533,642         35,384,445   
DWA Consumer Staples Momentum Portfolio      165,248,577         167,236,638   
DWA Energy Momentum Portfolio      63,955,712         66,267,726   
DWA Financial Momentum Portfolio      19,425,358         19,632,607   
DWA Healthcare Momentum Portfolio      68,210,351         67,686,942   
DWA Industrials Momentum Portfolio      29,463,977         28,582,859   
DWA Technology Momentum Portfolio      130,984,956         130,320,243   
DWA Utilities Momentum Portfolio      61,190,575         61,158,319   
NASDAQ Internet Portfolio      10,186,726         10,388,454   

For the six-month period ended October 31, 2016, in-kind transactions associated with creations and redemptions were as follows:

 

     Cost of
Securities
Received		      Value of
Securities
Delivered		  
DWA Basic Materials Momentum Portfolio    $ 120,520,259       $ 109,556,188   
DWA Consumer Cyclicals Momentum Portfolio      4,208,343         49,294,918   
DWA Consumer Staples Momentum Portfolio      56,857,677         118,658,970   
DWA Energy Momentum Portfolio      50,883,745         54,684,066   
DWA Financial Momentum Portfolio      13,818,104         16,646,002   
DWA Healthcare Momentum Portfolio      33,195,585         50,519,513   
DWA Industrials Momentum Portfolio      12,071,110         15,221,229   
DWA Technology Momentum Portfolio      47,370,184         93,298,540   
DWA Utilities Momentum Portfolio      85,677,653         141,945,380   
NASDAQ Internet Portfolio      33,694,656         52,437,636   

Gains (losses) on in-kind transactions are generally not considered taxable gains (losses) for federal income tax purposes.

At October 31, 2016, the cost of investments on a tax basis includes adjustments for financial reporting purposes, as of the most recently completed federal income tax reporting period-end:

 

     Gross
Unrealized
Appreciation		      Gross
Unrealized
(Depreciation)		      Net
Unrealized
Appreciation
(Depreciation)		      Cost  
DWA Basic Materials Momentum Portfolio    $ 10,997,485       $ (7,206,085 )     $ 3,791,400       $ 175,135,404   
DWA Consumer Cyclicals Momentum Portfolio      3,366,260         (1,604,868 )       1,761,392         43,891,274   
DWA Consumer Staples Momentum Portfolio      15,398,552         (8,829,237 )       6,569,315         228,331,208   
DWA Energy Momentum Portfolio      16,550,065         (3,171,618 )       13,378,447         108,031,847   
DWA Financial Momentum Portfolio      1,559,587         (858,240 )       701,347         25,981,030   
DWA Healthcare Momentum Portfolio      4,303,873         (6,059,511 )       (1,755,638 )       62,287,152   

 

 

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     Gross
Unrealized
Appreciation		      Gross
Unrealized
(Depreciation)		      Net
Unrealized
Appreciation
(Depreciation)		      Cost  
DWA Industrials Momentum Portfolio    $ 3,204,799       $ (1,581,752 )     $ 1,623,047       $ 40,150,568   
DWA Technology Momentum Portfolio      17,236,450         (8,777,666 )       8,458,784         153,877,135   
DWA Utilities Momentum Portfolio      4,696,901         (2,753,854 )       1,943,047         149,408,100   
NASDAQ Internet Portfolio      48,933,334         (27,888,192 )       21,045,142         293,271,760   

Note 7. Trustees’ and Officer’s Fees

Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to the Independent Trustees, any Unaffiliated Trustee, and an Officer of the Trust. The Adviser, as a result of the unitary management fee, pays for such compensation for NASDAQ Internet Portfolio. The Trustee who is an “interested person” of the Trust does not receive any Trustees’ fees.

The Trust has adopted a deferred compensation plan (the “Plan”). Under the Plan, each Independent Trustee or Unaffiliated Trustee who has executed a Deferred Fee Agreement (a “Participating Trustee”) may defer receipt of all or a portion of his compensation (“Deferral Fees”). Such Deferral Fees are deemed to be invested in select PowerShares Funds. The Deferral Fees payable to the Participating Trustee are valued as of the date such Deferral Fees would have been paid to the Participating Trustee. The value increases with contributions or with increases in the value of the Shares selected, and the value decreases with distributions or with declines in the value of the Shares selected. Obligations under the Plan represent unsecured claims against the general assets of the Funds.

Note 8. Capital

Shares are created and redeemed by each Fund only in Creation Units of 50,000 Shares. Only Authorized Participants are permitted to purchase or redeem Creation Units from the Funds. Such transactions are principally permitted in exchange for Deposit Securities, with a balancing cash component to equate the transaction to the NAV per Share of a Fund of the Trust on the transaction date. However, for all Funds, cash in an amount equivalent to the value of certain securities may be substituted, generally when the securities are not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances.

To the extent that the Funds permit transactions in exchange for Deposit Securities, each Fund may issue Shares in advance of receipt of Deposit Securities subject to various conditions, including a requirement to maintain on deposit with the Trust cash at least equal to 105% of the market value of the missing Deposit Securities. In accordance with the Trust’s Participant Agreement, Creation Units will be issued to an Authorized Participant, notwithstanding the fact that the corresponding Deposit Securities have not been received in part or in whole, in reliance on the undertaking of the Authorized Participant to deliver the missing Deposit Securities as soon as possible, which undertaking shall be secured by the Authorized Participant’s delivery and maintenance of collateral consisting of cash in the form of U.S. dollars in immediately available funds having a value (marked-to-market daily) at least equal to 105%, which the Adviser may change from time to time, of the value of the missing Deposit Securities.

Certain transaction fees may be charged by the Funds for creations and redemptions, which are treated as increases in capital.

Transactions in each Fund’s Shares are disclosed in detail in the Statements of Changes in Net Assets.

Note 9. Indemnifications

Under the Trust’s organizational documents, its officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. Each Independent Trustee and Unaffiliated Trustee is also indemnified against certain liabilities arising out of the performance of his duties to the Trust pursuant to an Indemnification Agreement between such trustee and the Trust. Additionally, in the normal course of business, the Trust enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred. However, based on experience, the Trust believes the risk of loss to be remote.

Note 10. Subsequent Event

Effective December 7, 2016, each Fund’s Shares (except for NASDAQ Internet Portfolio) were listed and began trading on The NASDAQ Stock Market LLC.

 

 

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Fees and Expenses

 

As a shareholder of a Fund of the PowerShares Exchange-Traded Fund Trust (excluding PowerShares NASDAQ Internet Portfolio), you incur advisory fees and other Fund expenses. As a shareholder of a Fund of the PowerShares NASDAQ Internet Portfolio, you incur a unitary management fee. In addition to the unitary management fee, a shareholder may pay distribution fees, if any, brokerage expenses, taxes, interest, acquired fund fees and expenses, if any, litigation expenses and other extraordinary expenses. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended October 31, 2016.

Actual Expenses

The first line in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line in the following table provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed annualized rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs, such as sales charges and brokerage commissions. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, expenses shown in the table do not include the expenses of the underlying funds, which are borne indirectly by a Fund. If transaction costs and indirect expenses were included, your costs would have been higher.

 

    Beginning
Account Value
May 1, 2016		     Ending
Account Value
October 31, 2016		     Annualized
Expense Ratio
Based on the
Six-Month Period		     Expenses Paid
During the
Six-Month Period(1)		  
PowerShares DWA Basic Materials Momentum Portfolio (PYZ)        

Actual

   $ 1,000.00      $ 1,016.09        0.60 %    $ 3.05   

Hypothetical (5% return before expenses)

     1,000.00        1,022.18        0.60        3.06   
PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)        

Actual

     1,000.00        965.66        0.60        2.97   

Hypothetical (5% return before expenses)

     1,000.00        1,022.18        0.60        3.06   
PowerShares DWA Consumer Staples Momentum Portfolio (PSL)        

Actual

     1,000.00        988.68        0.60        3.01   

Hypothetical (5% return before expenses)

     1,000.00        1,022.18        0.60        3.06   
PowerShares DWA Energy Momentum Portfolio (PXI)        

Actual

     1,000.00        1,019.78        0.60        3.05   

Hypothetical (5% return before expenses)

     1,000.00        1,022.18        0.60        3.06   
PowerShares DWA Financial Momentum Portfolio (PFI)        

Actual

     1,000.00        1,014.51        0.60        3.05   

Hypothetical (5% return before expenses)

     1,000.00        1,022.18        0.60        3.06   
PowerShares DWA Healthcare Momentum Portfolio (PTH)        

Actual

     1,000.00        1,009.69        0.60        3.04   

Hypothetical (5% return before expenses)

     1,000.00        1,022.18        0.60        3.06   

 

 

   47  

 

 

Fees and Expenses (continued)

 

    Beginning
Account Value
May 1, 2016		     Ending
Account Value
October 31, 2016		     Annualized
Expense Ratio
Based on the
Six-Month Period		     Expenses Paid
During the
Six-Month Period(1)		  
PowerShares DWA Industrials Momentum Portfolio (PRN)        

Actual

   $ 1,000.00      $ 1,031.37        0.60 %    $ 3.07   

Hypothetical (5% return before expenses)

     1,000.00        1,022.18        0.60        3.06   
PowerShares DWA Technology Momentum Portfolio (PTF)        

Actual

     1,000.00        1,090.44        0.60        3.16   

Hypothetical (5% return before expenses)

     1,000.00        1,022.18        0.60        3.06   
PowerShares DWA Utilities Momentum Portfolio (PUI)        

Actual

     1,000.00        1,036.46        0.60        3.08   

Hypothetical (5% return before expenses)

     1,000.00        1,022.18        0.60        3.06   
PowerShares NASDAQ Internet Portfolio (PNQI)        

Actual

     1,000.00        1,135.04        0.60        3.23   

Hypothetical (5% return before expenses)

     1,000.00        1,022.18        0.60        3.06   

 

(1)  Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six-month period ended October 31, 2016. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 184/365.

 

 

   48  

 

 

 

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Proxy Voting Policies and Procedures

A description of the Trust’s proxy voting policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available, without charge and upon request, by calling (800) 983-0903. This information is also available on the Securities and Exchange Commission’s (“Commission”) website at www.sec.gov.

Information regarding how each Fund voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended June 30, is also available, without charge and upon request, by (i) calling (800) 983-0903; or (ii) accessing the Trust’s Form N-PX on the Commission’s website at www.sec.gov.

Quarterly Portfolios

The Trust files its complete schedule of portfolio holdings for the Funds with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Trust’s Forms N-Q are available on the Commission’s website at www.sec.gov. The Trust’s Forms N-Q may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330.

Frequency Distribution of Discounts and Premiums

A table showing the number of days the market price of each Fund’s shares was greater than the Fund’s net asset value, and the number of days it was less than the Fund’s net asset value (i.e., premium or discount) for the most recently completed calendar year, and the calendar quarters since that year end (or the life of the Fund, if shorter) may be found at the Fund’s website at www.invescopowershares.com.

 

P-PS-SAR-3    LOGO

©2016 Invesco PowerShares Capital Management LLC

3500 Lacey Road, Suite 700

Downers Grove, IL 60515

   
powershares.com    800 983 0903   LOGO   @PowerShares   

Item 2. Code of Ethics.

Not required for semi-annual period.

Item 3. Audit Committee Financial Expert.

Not required for semi-annual period.

Item 4. Principal Accountant Fees and Services.

PricewaterhouseCoopers LLP (“PwC”) informed the Audit Committee of the Board of the Trust (the “Audit Committee”) that it has identified an issue related to its independence under Rule 2-01(c)(1)(ii)(A) of Regulation S-X (referred to as the “Loan Rule”). The Loan Rule prohibits accounting firms, such as PwC, from being deemed independent if they have certain financial relationships with their audit clients or certain affiliates of those clients. The Trust is required under various securities laws to have its financial statements audited by an independent accounting firm.

The Loan Rule specifically provides that an accounting firm would not be independent if it receives a loan from a lender that is a record or beneficial owner of more than ten percent of an audit client’s equity securities. For purposes of the Loan Rule, audit clients include the Funds as well as all registered investment companies advised by the Adviser and its affiliates, including other subsidiaries of the Adviser’s parent company, Invesco Ltd. (collectively, the Invesco Fund Complex). PwC informed the Audit Committee it has relationships with lenders who hold, as record owner, more than ten percent of the shares of certain funds within the Invesco Fund Complex. These relationships call into question PwC’s independence under the Loan Rule with respect to those funds, as well as all other funds in the Invesco Fund Complex.

On June 20, 2016, the SEC Staff issued a “no-action” letter to another mutual fund complex (see Fidelity Management & Research Company et al., No-Action Letter) related to the audit independence issue described above. In that letter, the SEC confirmed that it would not recommend enforcement action against a fund that relied on audit services performed by an audit firm that was not in compliance with the Loan Rule in certain specified circumstances.

In an August 18, 2016 letter, and in subsequent communications, PwC affirmed to the Audit Committee that, as of the date of the letter and the subsequent communications, respectively, PwC is an independent accountant with respect to the Trust, within the meaning of PCAOB Rule 3520. In its letter and in its subsequent communications, PwC also informed the Audit Committee that, after evaluating the facts and circumstances and the applicable independence rules, PwC has concluded that with regard to its compliance with the independence criteria set forth in the rules and regulations of the SEC related to the Loan Rule, it believes that it remains objective and impartial despite matters that may ultimately be determined to be inconsistent with these criteria and therefore it can continue to serve as the Trust’s registered public accounting firm. PWC has advised the Audit Committee that this conclusion is based

in part on the following considerations: (1) the lenders to PwC have no influence over any Fund, or other entity within the Invesco Fund Complex, or its investment adviser; (2) none of the officers or trustees of the Invesco Fund Complex whose shares are owned by PwC lenders are associated with those lenders; (3) PwC understands that the shares held by PwC lenders are held for the benefit of and on behalf of its policy owners/end investors; (4) investments in funds such as the Invesco Fund Complex funds are passive; (5) the PwC lenders are part of various syndicates of unrelated lenders; (6) there have been no changes to the loans in question since the origination of each respective note; (7) the debts are in good standing and no lender has the right to take action against PwC, as borrower, in connection with the financings; (8) the debt balances with each lender are immaterial to PwC and to each lender; and (9) the PwC audit engagement team has no involvement in PwC’s treasury function and PwC’s treasury function has no oversight of or ability to influence the PwC audit engagement team. In addition, PwC has communicated that the lending relationships appear to be consistent with the lending relationships described in the no-action letter and that they are not aware of other relationships that would be implicated by the Loan Rule. In addition to relying on PwC’s August 18, 2016 letter and subsequent communications regarding its independence, the Trust intends to rely upon the no-action letter.

If in the future the independence of PwC is called into question under the Loan Rule by circumstances that are not addressed in the SEC’s no-action letter, the Fund may need to take other action in order for the Fund’s filings with the SEC containing financial statements to be deemed compliant with applicable securities laws. Such additional actions could result in additional costs, impair the ability of the Funds to issue new shares or have other material adverse effects on the Funds. In addition, the SEC has indicated that the no-action relief will expire 18 months from its issuance after which the Invesco Funds will no longer be able rely on the letter unless it’s term is extended or made permanent by the SEC Staff.

Item 5. Audit Committee of Listed Registrants.

Not required for semi-annual period.

Item 6. Schedule of Investments.

 

(a)

The Schedules of Investments are included as a part of the report to shareholders filed under Item 1 of this Form N-CSR.

 

(b)

Not applicable.

 

Item 7.

Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

 

Item 8.

Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

 

Item 9.

Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees that would require disclosure herein.

Item 11. Controls and Procedures.

 

  (a)

Based on their evaluation of the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) as of a date within 90 days of the filing date of this report, the Registrant’s President (principal executive officer) and Treasurer (principal financial officer) have concluded that such disclosure controls and procedures are effective.

 

  (b)

There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits.

 

  (a)(1) 

Code of Ethics

Not required for semi-annual report.

 

  (a)(2) 

Certifications of the Registrant’s President and Treasurer pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 and Section 302 of the Sarbanes-Oxley Act of 2002 are attached as Exhibit 99.CERT.

 

  (a)(3) 

Not applicable.

 

  (b) 

Certifications of the Registrant’s President and Treasurer pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 and Section 906 of the Sarbanes-Oxley Act of 2002 are attached as Exhibit 99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant)                              PowerShares Exchange-Traded Fund Trust              

By (Signature and Title)    /s/ Daniel E. Draper                                                          

                                                  Daniel E. Draper

                                                  President

Date    January 5, 2017                                                                                                 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)    /s/ Daniel E. Draper                                                          

                                                  Daniel E. Draper

                                                  President

Date    January 5, 2017                                                                                                 

 

By (Signature and Title)    /s/ Steven Hill                                                                   

                                                  Steven Hill

                                                  Treasurer

Date    January 5, 2017