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: 811-21977

PowerShares Exchange-Traded Fund Trust II

(Exact name of registrant as specified in charter)

3500 Lacey Road

Downers Grove, IL 60515

(Address of principal executive offices) (Zip code)

Andrew Schlossberg

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: October 31

Date of reporting period: April 30, 2014

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:

April 30, 2014

2014 Semi-Annual Report to Shareholders

PIZ	PowerShares DWA Developed Markets Momentum Portfolio
PIE	PowerShares DWA Emerging Markets Momentum Portfolio
PXR	PowerShares Emerging Markets Infrastructure Portfolio
PAF	PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio
PXF	PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio
PDN	PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio
PXH	PowerShares FTSE RAFI Emerging Markets Portfolio
PAGG	PowerShares Global Agriculture Portfolio
PBD	PowerShares Global Clean Energy Portfolio
PSAU	PowerShares Global Gold and Precious Metals Portfolio
PIO	PowerShares Global Water Portfolio
IPKW	PowerShares International BuyBack AchieversTM Portfolio
IDHQ	PowerShares S&P International Developed High Quality Portfolio

Table of Contents

International Portfolios
Schedules of Investments
PowerShares DWA Developed Markets Momentum Portfolio (PIZ)	3
PowerShares DWA Emerging Markets Momentum Portfolio (PIE)	5
PowerShares Emerging Markets Infrastructure Portfolio (PXR)	7
PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio (PAF)	10
PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio (PXF)	13
PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio (PDN)	24
PowerShares FTSE RAFI Emerging Markets Portfolio (PXH)	40
PowerShares Global Agriculture Portfolio (PAGG)	45
PowerShares Global Clean Energy Portfolio (PBD)	47
PowerShares Global Gold and Precious Metals Portfolio (PSAU)	50
PowerShares Global Water Portfolio (PIO)	52
PowerShares International BuyBack AchieversTM (IPKW)	54
PowerShares S&P International Developed High Quality Portfolio (IDHQ)	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	77
Fees and Expenses	87
Board Considerations Regarding Continuation of Investment Advisory Agreement and Sub-Advisory Agreement	89

2

Portfolio Composition

PowerShares DWA Developed Markets Momentum Portfolio (PIZ)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Consumer Discretionary	31.7
Industrials	19.4
Financials	12.3
Information Technology	11.2
Health Care	8.8
Materials	5.5
Consumer Staples	3.6
Energy	3.5
Telecommunication Services	3.3
Utilities	0.6
Other Assets Less Liabilities	0.1

Schedule of Investments

PowerShares DWA Developed Markets Momentum Portfolio (PIZ)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Australia—4.3%
	1,263,085	Challenger Ltd.	$	8,250,692
	284,225	Crown Resorts Ltd.		4,224,111
	263,279	Ramsay Health Care Ltd.		10,930,999
	512,941	Seek Ltd.		7,946,436
				31,352,238
		Belgium—1.6%
	59,768	Anheuser-Busch InBev NV		6,500,422
	92,307	KBC Groep NV		5,619,961
				12,120,383
		Canada—6.5%
	102,660	Canadian National Railway Co.		6,005,533
	29,570	Canadian Pacific Railway Ltd.		4,611,244
	71,609	Dollarama, Inc.		5,948,222
	111,497	Keyera Corp.		7,406,380
	136,596	Methanex Corp.		8,450,045
	210,265	Open Text Corp.		10,355,664
	132,003	Peyto Exploration & Development Corp.		4,860,578
				47,637,666
		Denmark—5.7%
	109,225	Coloplast A/S, Class B		9,159,151
	233,772	Novo Nordisk A/S, Class B		10,539,836
	129,573	Novozymes A/S, Class B		6,202,982
	167,084	Topdanmark A/S(a)		4,882,420

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Denmark (continued)
	246,157	Vestas Wind Systems A/S(a)	$	10,919,886
				41,704,275
		Finland—2.1%
	143,724	Kone Oyj, Class B		6,141,821
	606,877	Nokia Oyj(a)		4,539,703
	99,377	Sampo Oyj, Class A		4,931,543
				15,613,067
		France—6.7%
	1,303,649	Alcatel-Lucent(a)		5,209,426
	57,246	Arkema SA		6,379,320
	286,594	Credit Agricole SA(a)		4,512,212
	44,954	Iliad SA		12,123,365
	47,569	Publicis Groupe SA		4,049,745
	96,332	Safran SA		6,470,752
	34,707	Wendel SA		5,223,747
	162,730	Zodiac Aerospace		5,405,042
				49,373,609
		Germany—9.3%
	51,085	Continental AG		11,959,960
	232,180	CTS Eventim AG		14,776,540
	39,528	Fielmann AG		5,340,992
	212,291	Freenet AG		7,333,777
	71,273	Fuchs Petrolub SE		6,552,987
	126,357	United Internet AG		5,420,694

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

3

PowerShares DWA Developed Markets Momentum Portfolio (PIZ) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Germany (continued)
	21,826	Volkswagen AG (Preference Shares)	$	5,874,013
	258,752	Wirecard AG		10,840,307
				68,099,270
		Hong Kong—2.1%
	1,942,508	Galaxy Entertainment Group Ltd.(a)		15,246,214
		Ireland—1.3%
	10,743,958	Bank of Ireland(a)		4,215,858
	65,141	Kerry Group PLC, Class A		5,139,276
				9,355,134
		Japan—2.6%
	365,488	Fuji Heavy Industries Ltd.		9,606,807
	965,943	Mazda Motor Corp.		4,321,448
	191,442	Seiko Epson Corp.		5,221,316
				19,149,571
		Macau—2.1%
	5,636,393	SJM Holdings Ltd.		15,630,697
		Netherlands—1.1%
	96,724	ASML Holding NV		7,970,310
		Norway—1.7%
	108,072	Schibsted ASA		6,194,621
	174,871	TGS Nopec Geophysical Co. ASA		6,018,797
				12,213,418
		Singapore—1.0%
	3,942,506	Ezion Holdings Ltd.		7,129,078
		Spain—2.4%
	119,128	Grifols SA		6,359,308
	44,893	Industria de Diseno Textil SA (Inditex)		6,731,942
	58,564	Red Electrica Corp. SA		4,813,646
				17,904,896
		Sweden—3.3%
	102,273	Assa Abloy AB, Class B		5,401,704
	301,154	Hexagon AB, Class B		9,574,968
	342,416	Swedbank AB, Class A		9,074,137
				24,050,809
		Switzerland—7.2%
	200,918	ABB Ltd.		4,824,131
	88,808	Compagnie Financiere Richemont SA		9,007,388
	15,299	EMS-Chemie Holding AG		5,955,741
	18,315	Flughafen Zuerich AG		11,534,633
	5,028	Galenica AG		5,111,091
	18,549	Geberit AG		6,179,138
	39,801	Sonova Holding AG		5,741,072
	38,817	Swatch Group AG (The)		4,673,294
				53,026,488
		United Kingdom—35.9%
	872,136	ARM Holdings PLC		13,128,635
	634,938	Ashtead Group PLC		9,375,731
	102,681	Associated British Foods PLC		5,151,180
	581,528	Babcock International Group PLC		11,724,355
	117,737	Berkeley Group Holdings PLC (The)		4,560,583

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		United Kingdom (continued)
	3,864,610	Booker Group PLC	$	9,592,615
	749,108	BT Group PLC		4,661,181
	1,013,327	Carphone Warehouse Group PLC		5,266,623
	360,285	Compass Group PLC		5,730,745
	102,243	Derwent London PLC REIT		4,695,875
	219,213	easyJet PLC		6,059,391
	1,260,297	GKN PLC		8,171,807
	473,750	Halma PLC		4,491,723
	529,184	Hargreaves Lansdown PLC		10,454,579
	248,910	IMI PLC		6,304,456
	980,064	Inchcape PLC		10,607,828
	105,068	Intertek Group PLC		5,155,610
	2,999,347	ITV PLC		9,217,478
	701,945	Kingfisher PLC		4,955,612
	2,210,603	Legal & General Group PLC		7,905,889
	132,892	London Stock Exchange Group PLC		4,066,034
	413,727	Mondi PLC		6,863,734
	87,182	Next PLC		9,598,170
	1,471,140	Old Mutual PLC		4,960,735
	234,834	Persimmon PLC(a)		5,202,461
	249,190	Prudential PLC		5,716,158
	344,117	Rightmove PLC		14,003,518
	388,796	Rolls-Royce Holdings PLC		6,893,267
	52,161,778	Rolls-Royce Holdings PLC (Preference Shares), Class C(a)		88,078
	137,192	Spectris PLC		5,154,337
	91,187	Spirax-Sarco Engineering PLC		4,463,701
	1,164,309	Sports Direct International PLC(a)		15,393,735
	412,306	St. James’s Place PLC		5,360,735
	3,265,006	Taylor Wimpey PLC		5,794,296
	296,053	Travis Perkins PLC		8,523,301
	187,408	Weir Group PLC (The)		8,512,447
	76,284	Whitbread PLC		5,255,422
				263,062,025
		United States—3.0%
	615,300	Sky Deutschland AG(a)		5,262,190
	122,850	Valeant Pharmaceuticals International, Inc.(a)		16,407,239
				21,669,429
		Total Investments (Cost $645,918,542)—99.9%		732,308,577
		Other assets less liabilities—0.1%		750,479
		Net Assets—100.0%	$	733,059,056

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Non-income producing security.

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

4

Portfolio Composition

PowerShares DWA Emerging Markets Momentum Portfolio (PIE)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Consumer Discretionary	22.6
Industrials	18.9
Information Technology	13.7
Consumer Staples	13.1
Financials	12.0
Health Care	8.5
Energy	4.5
Materials	2.8
Utilities	2.5
Telecommunication Services	1.5
Other Assets Less Liabilities	(0.1	)

Schedule of Investments

PowerShares DWA Emerging Markets Momentum Portfolio (PIE)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.1%
		Argentina—0.6%
	59,606	YPF SA ADR	$	1,696,387
		China—10.7%
	398,033	BYD Co. Ltd., H-Shares(a)		2,143,454
	220,463	E-House China Holdings Ltd. ADR		1,918,028
	3,919,209	Huadian Power International Co., H-Shares		2,128,233
	5,661,081	Huaneng Renewables Corp. Ltd., Class H		1,752,464
	161,681	KongZhong Corp. ADR(a)		1,642,679
	1,820,241	Lenovo Group Ltd.		2,070,790
	4,063,619	Sinotrans Ltd., H-Shares		2,243,341
	798,020	Tong Ren Tang Technologies Co. Ltd., H-Shares		2,300,541
	326,820	Trina Solar Ltd. ADR(a)		3,653,848
	338,830	Tsingtao Brewery Co. Ltd., H-Shares		2,467,087
	397,621	Vimicro International Corp. ADR(a)		1,391,673
	50,801	WuXi PharmaTech Cayman, Inc. ADR(a)		1,727,234
	1,891,231	Xinjiang Goldwind Science & Technology Co. Ltd., H-Shares		2,053,976
	897,496	Zhuzhou CSR Times Electric Co. Ltd., H-Shares		2,633,617
				30,126,965
		Hong Kong—2.2%
	5,051,933	PT Astra International Tbk		3,244,441
	5,086,569	PT Indofood Sukses Makmur Tbk		3,101,700
				6,346,141

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		India—2.7%
	52,631	Dr Reddy’s Laboratories Ltd. ADR	$	2,372,079
	45,314	HDFC Bank Ltd. ADR		1,814,826
	90,293	Tata Motors Ltd. ADR		3,378,764
				7,565,669
		Indonesia—3.3%
	1,802,633	PT Bank Central Asia Tbk		1,715,086
	26,100,320	PT Hanson International Tbk(a)		1,399,662
	45,470,839	PT Kalbe Farma Tbk		6,076,413
				9,191,161
		Malaysia—5.7%
	750,900	AMMB Holdings Bhd		1,651,037
	903,000	Axiata Group Bhd		1,861,029
	2,032,000	BIMB Holdings Bhd		2,644,618
	3,173,800	Dialog Group Bhd		3,489,188
	5,700,800	Perisai Petroleum Teknologi Bhd(a)		2,740,853
	240,600	Petronas Dagangan Bhd		2,232,485
	210,500	Petronas Gas Bhd		1,514,852
				16,134,062
		Mexico—4.4%
	2,187,441	Cemex SAB de CV, Series CPO		2,777,544
	1,474,919	Controladora Comercial Mexicana SAB de CV		5,520,382
	151,612	Grupo Aeroportuario del Sureste SAB de CV, Class B		1,854,580

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

5

PowerShares DWA Emerging Markets Momentum Portfolio (PIE) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Mexico (continued)
	457,731	Grupo Carso SAB de CV, Series A1	$	2,331,144
				12,483,650
		Netherlands—0.6%
	649,656	PT Unilever Indonesia Tbk		1,643,596
		Panama—1.2%
	24,035	Copa Holdings SA, Class A		3,251,455
		Philippines—5.8%
	1,646,980	International Container Terminal Services, Inc.		3,993,686
	644,676	Semirara Mining Corp.		5,943,514
	1,994,351	Universal Robina Corp.		6,531,522
				16,468,722
		South Africa—17.2%
	187,017	Aspen Pharmacare Holdings Ltd.		4,971,836
	128,982	Cashbuild Ltd.		1,537,082
	661,335	Coronation Fund Managers Ltd.		6,373,368
	713,211	EOH Holdings Ltd.		5,688,811
	327,681	Famous Brands Ltd.		3,282,675
	468,320	FirstRand Ltd.		1,719,209
	207,633	Invicta Holdings Ltd.		2,364,078
	320,711	Mediclinic International Ltd.		2,238,337
	1,106,728	Metair Investments Ltd.		4,464,261
	38,935	Naspers Ltd., Class N		3,667,550
	85,873	Omnia Holdings Ltd.		1,842,847
	228,151	Pioneer Foods Ltd.		2,036,453
	320,038	PSG Group Ltd.		3,165,994
	361,414	RMB Holdings Ltd.		1,729,999
	285,240	Sanlam Ltd.		1,523,552
	374,896	Steinhoff International Holdings Ltd.		1,944,049
				48,550,101
		South Korea—20.0%
	5,935	Amorepacific Group, Inc.		3,067,154
	81,230	Cheil Worldwide, Inc.(a)		1,973,166
	42,372	CJ CGV Co. Ltd.		1,970,362
	20,611	CJ Corp.		2,493,346
	24,318	Coway Co. Ltd.		1,918,046
	119,210	Daesang Corp.		4,707,024
	41,445	Dongbu Insurance Co. Ltd.		2,286,233
	60,250	Grand Korea Leisure Co. Ltd.		2,510,174
	17,744	Hanmi Pharm Co. Ltd.(a)		2,000,558
	78,298	Hanssem Co. Ltd.		6,395,385
	46,277	Hotel Shilla Co. Ltd.		3,891,872
	114,040	Hyundai Greenfood Co. Ltd.		1,914,830
	34,582	Hyundai Motor Co. (Preference Shares)		4,852,792
	56,660	iMarketKorea, Inc.		1,708,080
	3,192	KCC Corp.		1,587,814
	25,721	KEPCO Plant Service & Engineering Co. Ltd.		1,672,749
	26,399	Korea Gas Corp.(a)		1,578,882
	11,722	LG Hausys Ltd.		2,064,651
	363,820	SBS Media Holdings Co. Ltd.		1,536,896
	19,657	SK C&C Co. Ltd.		2,691,828
	90,080	Youngone Corp.		3,670,152
				56,491,994

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Taiwan—16.4%
	314,003	Advanced Semiconductor Engineering, Inc. ADR	$	1,855,758
	414,000	Advantech Co. Ltd.		2,673,356
	2,477,700	China Life Insurance Co. Ltd.		2,166,080
	276,000	China Steel Chemical Corp.		1,590,304
	256,000	Delta Electronics, Inc.		1,568,316
	522,078	Himax Technologies, Inc. ADR		4,552,520
	280,000	Hotai Motor Co. Ltd.		3,282,337
	7,293,000	Inotera Memories, Inc.(a)		7,462,537
	1,975,000	Inventec Corp.		1,818,167
	249,000	President Chain Store Corp.		1,851,133
	1,158,000	Ruentex Development Co. Ltd.		2,047,725
	78,825	Taiwan Semiconductor Manufacturing Co. Ltd. ADR(a)		1,584,382
	1,471,000	Teco Electric and Machinery Co. Ltd.		1,597,748
	1,643,000	Ton Yi Industrial Corp.		1,746,483
	478,000	Yulon Nissan Motor Co. Ltd.		6,078,283
	1,487,000	Yungtay Engineering Co. Ltd.		4,382,509
				46,257,638
		Thailand—6.8%
	763,511	Bumrungrad Hospital PCL		2,312,240
	2,123,464	Central Pattana PCL		2,969,306
	4,843,235	Charoen Pokphand Foods PCL		4,041,018
	96,716	Charoen Pokphand Foods PCL NVDR		80,696
	861,060	Thai Union Frozen Products PCL		1,862,614
	642,872	Total Access Communication PCL NVDR		2,473,349
	4,509,117	Toyo-Thai Corp. PCL		5,295,008
				19,034,231
		Turkey—2.5%
	1,035,686	Aselsan Elektronik Sanayi Ve Ticaret AS		4,583,158
	294,087	Tav Havalimanlari Holding AS		2,347,252
				6,930,410
		Total Investments (Cost $257,208,029)—100.1%		282,172,182
		Other assets less liabilities—(0.1)%		(333,891	)
		Net Assets—100.0%	$	281,838,291

Investment Abbreviations:

ADR—American Depositary Receipt

NVDR—Non-voting Depositary Receipt

Notes to Schedule of Investments:

^(a)  Non-income producing security.

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

6

Portfolio Composition

PowerShares Emerging Markets Infrastructure Portfolio (PXR)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Industrials	53.1
Materials	42.8
Financials	1.8
Consumer Discretionary	0.9
Telecommunication Services	0.7
Utilities	0.7
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments

PowerShares Emerging Markets Infrastructure Portfolio (PXR)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Bahamas—0.4%
	56,052	LSR Group OJSC GDR(a)	$	167,595
		Brazil—7.4%
	54,495	Cia Siderurgica Nacional SA ADR(b)		210,896
	64,255	Gerdau SA ADR		386,173
	59,700	Iochpe-Maxion SA		538,781
	166,700	Magnesita Refratarios SA		353,546
	687,958	PT Vale Indonesia Tbk		211,240
	92,556	Vale SA ADR		1,223,590
	20,280	WEG SA		244,182
				3,168,408
		Chile—0.8%
	24,144	CAP SA		361,926
		China—25.7%
	1,003,352	Angang Steel Co. Ltd., H-Shares(a)		608,261
	408,690	Anhui Conch Cement Co. Ltd., H-Shares		1,518,186
	1,082,189	BBMG Corp. H-Shares		760,743
	1,460,190	China Communications Construction Co. Ltd., H-Shares		954,896
	244,583	China Machinery Engineering Corp., H-Shares		161,523
	1,212,501	China Molybdenum Co. Ltd., H-Shares		539,560
	205,523	China National Building Material Co. Ltd., H-Shares		194,314
	567,953	China Railway Construction Corp. Ltd., H-Shares		469,579
	1,260,871	China Railway Group Ltd., H-Shares		561,085
	705,279	CSG Holding Co. Ltd., Class B		546,731
	314,428	Dongfang Electric Corp. Ltd., H-Shares		490,733
	370,733	First Tractor Co. Ltd., H-Shares		217,098

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		China (continued)
	407,642	Guangzhou Shipyard International Co. Ltd., H-Shares	$	722,444
	250,997	Hangzhou Steam Turbine Co., Class B		263,207
	624,734	Harbin Electric Co. Ltd., H-Shares		365,033
	1,509,059	Hunan Non-Ferrous Metal Corp. Ltd., H-Shares(a)		437,953
	457,428	Jiangxi Copper Co. Ltd., H-Shares		755,216
	1,741,538	Lonking Holdings Ltd.(a)		321,224
	889,832	Midas Holdings Ltd.		333,151
	932,190	Shanghai Electric Group Co. Ltd., H-Shares		365,525
	393,123	Xinjiang Goldwind Science & Technology Co. Ltd., H-Shares		426,952
				11,013,414
		Cyprus—0.2%
	6,032	Novolipetsk Steel OJSC GDR(a)		70,032
		France—2.8%
	15,717	Alstom SA		643,311
	4,681	Areva SA(a)		117,737
	812	Konya Cimento Sanayii AS		102,583
	117,724	Lafarge Malaysia Bhd		327,702
				1,191,333
		Germany—0.4%
	95,092	PT Indocement Tunggal Prakarsa Tbk		180,536
		Hong Kong—0.5%
	109,878	PT United Tractors Tbk		206,232
		India—1.7%
	15,955	Larsen & Toubro Ltd. GDR		343,830

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

7

PowerShares Emerging Markets Infrastructure Portfolio (PXR) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		India (continued)
	21,691	Mahindra & Mahindra Ltd. GDR	$	386,317
				730,147
		Indonesia—2.5%
	1,100,722	PT Aneka Tambang (Persero) Tbk		111,867
	208,876	PT Semen Indonesia (Persero) Tbk		268,287
	569,336	PT Tower Bersama Infrastructure Tbk(a)		320,087
	1,987,389	PT Wijaya Karya Persero Tbk		389,347
				1,089,588
		Israel—0.7%
	5,384	Caesarstone Sdot-Yam Ltd.(a)		280,937
		Malaysia—6.2%
	471,459	Dialog Group Bhd		518,309
	546,384	Gamuda Bhd		771,346
	313,807	IJM Corp. Bhd		613,103
	131,782	Malaysia Marine and Heavy Engineering Holdings Bhd		159,406
	244,300	Sunway Bhd		231,918
	555,480	WCT Holdings Bhd		382,738
				2,676,820
		Mexico—7.8%
	84,375	Cemex SAB de CV ADR(a)		1,066,500
	522,581	Empresas ICA SAB de CV(a)		935,048
	32,853	Grupo Carso SAB de CV, Series A1		167,315
	84,028	Promotora y Operadora de Infraestructura SAB de CV(a)		1,172,887
				3,341,750
		Philippines—0.9%
	3,423,769	Metro Pacific Investments Corp.		389,379
		Russia—2.8%
	39,679	Magnitogorsk Iron & Steel Works GDR(a)		83,326
	134,756	Mechel ADR(a)(b)		272,207
	40,950	MMC Norilsk Nickel OJSC ADR		738,328
	12,645	Severstal OAO GDR		89,021
				1,182,882
		Singapore—0.4%
	58,010	SembCorp Marine Ltd.		188,076
		South Africa—9.7%
	32,016	African Rainbow Minerals Ltd.		601,063
	11,521	Assore Ltd.		444,785
	299,497	Aveng Ltd.(a)		642,725
	358,023	Murray & Roberts Holdings Ltd.(a)		836,316
	185,805	PPC Ltd.		539,887
	50,026	Reunert Ltd.		327,770
	61,067	Wilson Bayly Holmes-Ovcon Ltd.		788,507
				4,181,053
		Spain—1.7%
	12,640	ACS, Actividades de Construccion y Servicios SA		541,115
	10,378	Leighton Holdings Ltd.(b)		183,468
				724,583

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Sweden—2.8%
	41,755	Atlas Copco AB, Class A(b)	$	1,205,833
		Switzerland—2.9%
	46,611	ABB Ltd.(a)		1,142,942
	480,050	PT Holcim Indonesia Tbk		117,921
				1,260,863
		Taiwan—14.4%
	760,583	Asia Cement Corp.		999,905
	1,267,200	BES Engineering Corp.		332,347
	863,907	China Steel Corp.		725,215
	566,959	CTCI Corp.		904,942
	1,237,360	Goldsun Development & Construction Co. Ltd.		436,383
	59,000	King Slide Works Co. Ltd.		767,832
	911,573	Taiwan Cement Corp.		1,445,935
	673,076	Tung Ho Steel Enterprise Corp.		573,936
				6,186,495
		Turkey—2.3%
	215,507	Aksa Enerji Uretim AS(a)		285,999
	44,978	Cimsa Cimento Sanayi ve Tica AS		261,278
	171,109	Tekfen Holding AS		430,722
				977,999
		United Kingdom—0.4%
	99,348	Evraz PLC(a)		161,547
		United States—4.6%
	12,236	Caterpillar, Inc.		1,289,674
	7,891	Pall Corp.		664,028
				1,953,702
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $48,180,092)—100.0%		42,891,130
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—3.4%
	1,465,775	Invesco Liquid Assets Portfolio—Institutional Class(c)(d) (Cost $1,465,775)		1,465,775
		Total Investments (Cost $49,645,867)—103.4%		44,356,905
		Other assets less liabilities—(3.4)%		(1,465,428	)
		Net Assets—100.0%	$	42,891,477

Investment Abbreviations:

ADR—American Depositary Receipt

GDR—Global Depositary Receipt

Notes to Schedule of Investments:

^(a)  Non-income producing security.

^(b)  All or a portion of this security was out on loan at April 30, 2014.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

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

8

PowerShares Emerging Markets Infrastructure Portfolio (PXR) (continued)

April 30, 2014

(Unaudited)

^(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. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of April 30, 2014.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman	$	1,394,875	$	(1,394,875	)	$	—

* Amount does not include excess collateral received, if any.

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

9

Portfolio Composition

PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio (PAF)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Financials	42.6
Materials	13.0
Industrials	11.4
Information Technology	7.4
Consumer Discretionary	7.3
Consumer Staples	6.0
Telecommunication Services	4.1
Energy	4.1
Utilities	3.4
Health Care	0.7
Other Assets Less Liabilities	0.0

Schedule of Investments

PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio (PAF)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Australia—49.4%
	14,059	AGL Energy Ltd.	$	205,426
	24,019	Amcor Ltd.		229,002
	77,408	AMP Ltd.		362,198
	14,143	APA Group		87,274
	83,683	Arrium Ltd.		92,268
	21,764	Asciano Ltd.		109,095
	2,627	ASX Ltd.		86,506
	29,980	Aurizon Holdings Ltd.		143,890
	59,265	Australia & New Zealand Banking Group Ltd.		1,892,815
	7,804	Bank of Queensland Ltd.		88,649
	12,662	Bendigo & Adelaide Bank Ltd.		135,035
	656,750	BGP Holdings PLC(a)		0
	63,702	BHP Billiton Ltd.		2,228,121
	24,680	BlueScope Steel Ltd.(a)		147,951
	21,754	Boral Ltd.		114,688
	24,772	Brambles Ltd.		216,442
	5,323	Caltex Australia Ltd.		109,836
	44,816	CFS Retail Property Trust Group REIT		83,464
	12,694	Coca-Cola Amatil Ltd.		108,795
	31,486	Commonwealth Bank of Australia		2,301,777
	6,183	Computershare Ltd.		70,751
	4,624	Crown Resorts Ltd.		68,721
	3,315	CSL Ltd.		210,184
	20,569	David Jones Ltd.		74,899
	121,603	Dexus Property Group REIT		127,882
	18,489	Downer EDI Ltd.		85,484

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Australia (continued)
	43,684	DUET Group	$	87,832
	73,693	Fairfax Media Ltd.		66,915
	13,649	Fortescue Metals Group Ltd.		63,865
	26,555	Goodman Group REIT		122,530
	35,361	GPT Group REIT		128,434
	8,145	Iluka Resources Ltd.		67,091
	50,031	Incitec Pivot Ltd.		133,506
	41,243	Insurance Australia Group Ltd.		219,347
	14,794	Lend Lease Group		177,510
	7,980	Macquarie Group Ltd.		426,626
	55,894	Metcash Ltd.		143,972
	88,207	Mirvac Group REIT		143,024
	25,682	Myer Holdings Ltd.		52,826
	59,436	National Australia Bank Ltd.		1,943,985
	27,754	Newcrest Mining Ltd.(a)		268,984
	9,346	Orica Ltd.		189,384
	24,152	Origin Energy Ltd.		333,433
	23,516	OZ Minerals Ltd.		80,183
	108,339	Qantas Airways Ltd.(a)		122,465
	51,126	QBE Insurance Group Ltd.		548,554
	8,728	Rio Tinto Ltd.		498,963
	19,481	Santos Ltd.		248,189
	10,091	Sims Metal Management Ltd.(a)		91,535
	7,152	Sonic Healthcare Ltd.		117,292
	74,652	Stockland REIT		269,067
	41,447	Suncorp Group Ltd.		500,003

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

10

PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio (PAF) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Australia (continued)
	18,581	Sydney Airport	$	72,652
	26,572	TABCORP Holdings Ltd.		91,587
	44,378	Tatts Group Ltd.		124,178
	115,412	Telstra Corp. Ltd.		558,200
	26,431	Toll Holdings Ltd.		129,550
	20,126	Transurban Group		133,740
	18,881	Treasury Wine Estates Ltd.		66,653
	10,620	UGL Ltd.		66,420
	22,729	Wesfarmers Ltd.		899,453
	49,038	Westfield Group REIT		497,526
	53,822	Westfield Retail Trust REIT		159,081
	65,406	Westpac Banking Corp.		2,128,339
	11,296	Woodside Petroleum Ltd.		427,025
	26,487	Woolworths Ltd.		915,889
	8,015	WorleyParsons Ltd.		124,836
				22,821,797
		China—0.6%
	76,214	BOC Hong Kong (Holdings) Ltd.		223,151
	44,000	Want Want China Holdings Ltd.		69,012
				292,163
		Hong Kong—11.8%
	116,810	AIA Group Ltd.		566,509
	19,152	Bank of East Asia Ltd. (The)		78,927
	33,204	Cathay Pacific Airways Ltd.		62,700
	25,986	Cheung Kong (Holdings) Ltd.		442,437
	30,089	CLP Holdings Ltd.		240,623
	66,998	Esprit Holdings Ltd.		111,305
	48,277	Hang Lung Properties Ltd.		143,532
	25,565	Henderson Land Development Co. Ltd.		152,344
	57,502	Hong Kong & China Gas Co. Ltd.		132,614
	7,112	Hong Kong Exchanges & Clearing Ltd.		128,152
	14,294	Hongkong Land Holdings Ltd.		100,058
	48,833	Hutchison Whampoa Ltd.		667,664
	1,882	Jardine Cycle & Carriage Ltd.		70,327
	2,603	Jardine Matheson Holdings Ltd.		162,167
	2,850	Jardine Strategic Holdings Ltd.		101,745
	21,396	Kerry Properties Ltd.		70,236
	156,039	Li & Fung Ltd.		226,626
	39,529	Link (The) REIT		196,553
	23,271	MTR Corp. Ltd.		87,797
	143,096	New World Development Co. Ltd.		147,658
	230,399	Noble Group Ltd.		235,841
	17,556	Power Assets Holdings Ltd.		151,719
	61,938	Sino Land Co. Ltd.		92,673
	39,005	Sun Hung Kai Properties Ltd.		491,282
	15,636	Swire Pacific Ltd., Class A		180,504
	26,694	Swire Properties Ltd.		80,225
	36,628	Wharf Holdings Ltd. (The)		256,302
	22,163	Yue Yuen Industrial (Holdings) Ltd.		68,466
				5,446,986
		Indonesia—0.2%
	191,118	Golden Agri-Resources Ltd.		92,868
		New Zealand—0.7%
	15,205	Fletcher Building Ltd.		128,667

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		New Zealand (continued)
	76,988	Telecom Corp. of New Zealand Ltd.	$	183,209
				311,876
		Singapore—6.5%
	37,000	Ascendas REIT		67,495
	60,000	CapitaLand Ltd.		152,945
	46,471	CapitaMall Trust REIT		73,852
	40,235	ComfortDelGro Corp. Ltd.		67,948
	34,693	DBS Group Holdings Ltd.		468,156
	32,000	Global Logistic Properties Ltd.		72,649
	184,000	Hutchison Port Holdings Trust		125,120
	31,294	Keppel Corp. Ltd.		262,497
	44,169	Oversea-Chinese Banking Corp. Ltd.		339,531
	18,647	SembCorp Industries Ltd.		79,766
	18,000	SembCorp Marine Ltd.		58,358
	7,353	Singapore Airlines Ltd.		60,799
	25,803	Singapore Press Holdings Ltd.		86,123
	20,751	Singapore Technologies Engineering Ltd.		63,145
	156,934	Singapore Telecommunications Ltd.		478,797
	20,412	United Overseas Bank Ltd.		353,818
	62,118	Wilmar International Ltd.		168,241
				2,979,240
		South Korea—29.9%
	6,240	BS Financial Group, Inc.		95,415
	1,187	Cheil Industries, Inc.		75,702
	716	CJ Corp.		86,616
	1,041	Daelim Industrial Co. Ltd.		84,727
	2,700	Daewoo Shipbuilding & Marine Engineering Co. Ltd.		78,128
	1,664	Dongbu Insurance Co. Ltd.		91,791
	1,967	Doosan Heavy Industries & Construction Co. Ltd.		66,246
	4,990	Doosan Infracore Co. Ltd.(a)		60,123
	520	E-Mart Co. Ltd.		118,765
	2,051	GS Engineering & Construction Corp.(a)		72,052
	2,851	GS Holdings		132,714
	8,743	Hana Financial Group, Inc.		307,566
	2,187	Hanwha Corp.		63,601
	1,403	Hyosung Corp.		100,069
	1,794	Hyundai Engineering & Construction Co. Ltd.		96,879
	1,741	Hyundai Heavy Industries Co. Ltd.		326,027
	2,780	Hyundai Marine & Fire Insurance Co. Ltd.		81,519
	996	Hyundai Mobis		284,351
	4,266	Hyundai Motor Co.		949,560
	1,820	Hyundai Steel Co.		118,891
	8,670	Industrial Bank of Korea		106,560
	12,408	KB Financial Group, Inc.		422,686
	6,842	Kia Motors Corp.		379,412
	14,650	Korea Electric Power Corp.		560,026
	1,493	Korea Gas Corp.(a)		89,294
	2,409	Korean Air Lines Co. Ltd.(a)		77,634
	9,510	KT Corp.		301,876
	2,568	KT&G Corp.		205,778
	1,075	LG Chem Ltd.		273,614
	2,719	LG Corp.		151,304
	10,820	LG Display Co. Ltd.(a)		287,437

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

11

PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio (PAF) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		South Korea (continued)
	6,865	LG Electronics, Inc.	$	456,426
	2,968	LG International Corp.		87,750
	7,860	LG Uplus Corp.		77,208
	393	Lotte Chemical Corp.		61,995
	383	Lotte Shopping Co. Ltd.		118,610
	953	LS Corp.		74,613
	405	OCI Co. Ltd.(a)		70,943
	3,040	POSCO		904,674
	3,771	Samsung C&T Corp.		236,486
	1,428	Samsung Electro-Mechanics Co. Ltd.		91,487
	1,941	Samsung Electronics Co. Ltd.		2,522,755
	996	Samsung Engineering Co. Ltd.(a)		74,510
	956	Samsung Fire & Marine Insurance Co. Ltd.		226,672
	4,820	Samsung Heavy Industries Co. Ltd.		131,544
	1,969	Samsung Life Insurance Co. Ltd.		183,123
	722	Samsung SDI Co. Ltd.		105,509
	13,299	Shinhan Financial Group Co. Ltd.		579,169
	295	Shinsegae Co. Ltd.		63,950
	804	SK C&C Co. Ltd.		110,100
	1,206	SK Holdings Co. Ltd.		213,586
	5,700	SK Hynix, Inc.(a)		221,480
	3,278	SK Innovation Co. Ltd.		374,339
	10,530	SK Networks Co. Ltd.(a)		97,015
	1,361	SK Telecom Co. Ltd.		281,209
	2,027	S-Oil Corp.		118,485
	16,380	Woori Finance Holdings Co. Ltd.(a)		184,677
				13,814,678
		Spain—0.3%
	7,077	Leighton Holdings Ltd.		125,111
		United Kingdom—0.4%
	11,143	Hang Seng Bank Ltd.		181,528
		United States—0.2%
	10,400	Sands China Ltd.		75,926
		Total Common Stocks and Other Equity Interests (Cost $41,581,535)		46,142,173
		Rights—0.0%
		Australia—0.0%
	900	Bank of Queensland Ltd., expiring 05/09/14(a)		1,259
	4,680	Transurban Group, expiring 05/23/14(a)		1,830
				3,089
		South Korea—0.0%
	662	GS Engineering & Construction Corp., expiring 05/23/14(a)		5,574
		Total Rights (Cost $0)		8,663

Number of Shares			Value
		Warrant—0.0%
		Hong Kong—0.0%
	3,250	Sun Hung KAI Properties Ltd., expiring 05/22/16(a) (Cost $1,006)	$	2,188
		Total Investments (Cost $41,582,541)—100.0%		46,153,024
		Other assets less liabilities—0.0%		15,758
		Net Assets—100.0%	$	46,168,782

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Non-income producing security.

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

12

Portfolio Composition

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio (PXF)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Financials	27.4
Industrials	12.3
Energy	11.9
Consumer Discretionary	9.8
Materials	8.7
Consumer Staples	7.7
Telecommunication Services	6.8
Utilities	5.7
Health Care	5.6
Information Technology	4.0
Money Market Fund Plus Other Assets Less Liabilities	0.1

Schedule of Investments

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio (PXF)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Australia—6.1%
	30,489	AGL Energy Ltd.	$	445,496
	52,090	Amcor Ltd.		496,636
	167,866	AMP Ltd.		785,458
	30,671	APA Group		189,265
	181,476	Arrium Ltd.		200,094
	47,200	Asciano Ltd.		236,596
	5,694	ASX Ltd.		187,501
	65,016	Aurizon Holdings Ltd.		312,046
	129,799	Australia & New Zealand Banking Group Ltd.		4,145,542
	16,922	Bank of Queensland Ltd.		192,226
	27,457	Bendigo & Adelaide Bank Ltd.		292,818
	231,466	BGP Holdings PLC(a)		0
	139,293	BHP Billiton Ltd.		4,872,086
	53,524	BlueScope Steel Ltd.(a)		320,864
	47,178	Boral Ltd.		248,726
	53,722	Brambles Ltd.		469,389
	11,548	Caltex Australia Ltd.		238,285
	97,188	CFS Retail Property Trust Group REIT		181,000
	27,533	Coca-Cola Amatil Ltd.		235,974
	68,840	Commonwealth Bank of Australia		5,032,532
	13,412	Computershare Ltd.		153,472
	10,026	Crown Resorts Ltd.		149,005
	7,194	CSL Ltd.		456,127
	44,606	David Jones Ltd.		162,426
	263,706	Dexus Property Group REIT		277,322

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Australia (continued)
	40,098	Downer EDI Ltd.	$	185,392
	94,734	DUET Group		190,473
	159,807	Fairfax Media Ltd.		145,108
	29,601	Fortescue Metals Group Ltd.		138,505
	57,586	Goodman Group REIT		265,714
	76,682	GPT Group REIT		278,515
	17,661	Iluka Resources Ltd.		145,474
	108,496	Incitec Pivot Ltd.		289,518
	89,440	Insurance Australia Group Ltd.		475,677
	32,086	Lend Lease Group		384,994
	17,302	Macquarie Group Ltd.		924,998
	121,210	Metcash Ltd.		312,214
	191,285	Mirvac Group REIT		310,161
	55,698	Myer Holdings Ltd.		114,568
	130,117	National Australia Bank Ltd.		4,255,763
	60,186	Newcrest Mining Ltd.(a)		583,305
	20,272	Orica Ltd.		410,785
	52,375	Origin Energy Ltd.		723,068
	50,999	OZ Minerals Ltd.		173,891
	234,943	Qantas Airways Ltd.(a)		265,577
	110,874	QBE Insurance Group Ltd.		1,189,617
	18,925	Rio Tinto Ltd.		1,081,907
	42,251	Santos Ltd.		538,280
	21,885	Sims Metal Management Ltd.(a)		198,517
	15,506	Sonic Healthcare Ltd.		254,297

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

13

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio (PXF) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Australia (continued)
	161,893	Stockland REIT	$	583,507
	89,882	Suncorp Group Ltd.		1,084,307
	40,296	Sydney Airport		157,559
	57,623	TABCORP Holdings Ltd.		198,613
	96,239	Tatts Group Ltd.		269,294
	250,281	Telstra Corp. Ltd.		1,210,506
	57,317	Toll Holdings Ltd.		280,936
	43,643	Transurban Group		290,013
	40,943	Treasury Wine Estates Ltd.		144,535
	23,032	UGL Ltd.		144,047
	49,289	Wesfarmers Ltd.		1,950,510
	106,344	Westfield Group REIT		1,078,936
	116,718	Westfield Retail Trust REIT		344,983
	143,088	Westpac Banking Corp.		4,656,144
	24,498	Woodside Petroleum Ltd.		926,103
	57,437	Woolworths Ltd.		1,986,104
	17,384	WorleyParsons Ltd.		270,761
				49,694,062
		Austria—0.3%
	2,565	Andritz AG		159,100
	1,992	BUWOG AG(a)		36,555
	21,487	Erste Group Bank AG		720,688
	6,221	Immoeast AG(a)		0
	40,528	Immofinanz AG(a)		150,151
	9,908	OMV AG		463,174
	5,651	Raiffeisen Bank International AG		178,255
	22,313	Telekom Austria AG		221,207
	8,318	Voestalpine AG		379,446
				2,308,576
		Bahamas—0.0%
	17,105	Vedanta Resources PLC		273,230
		Belgium—0.8%
	19,111	Ageas		821,051
	17,489	Anheuser-Busch InBev NV		1,902,120
	13,148	Belgacom SA		402,161
	3,013	Colruyt SA		170,198
	12,248	Delhaize Group SA		909,241
	3,220	Groupe Bruxelles Lambert SA(b)		325,342
	10,361	KBC Groep NV		630,813
	2,962	Solvay SA		479,282
	3,582	UCB SA		293,477
	7,783	Umicore SA(b)		381,210
				6,314,895
		Canada—7.0%
	5,442	Agnico Eagle Mines Ltd.		160,515
	6,058	Agrium, Inc.		581,098
	7,636	Aimia, Inc.		122,808
	12,831	Alimentation Couche Tard, Inc., Class B		361,155
	3,981	AltaGas Ltd.		169,404
	12,051	ARC Resources Ltd.		357,099
	3,469	ATCO Ltd., Class I		169,143
	33,812	Bank of Montreal(b)		2,327,666
	52,317	Bank of Nova Scotia		3,174,917
	67,549	Barrick Gold Corp.		1,177,468

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Canada (continued)
	6,032	Baytex Energy Corp.(b)	$	250,745
	14,369	BCE, Inc.		638,942
	95,973	Blackberry Ltd.(a)(b)		731,964
	4,418	Bombardier, Inc., Class A(a)		17,794
	126,335	Bombardier, Inc., Class B		507,665
	14,933	Bonavista Energy Corp.(b)		234,313
	28,191	Brookfield Asset Management, Inc., Class A		1,181,893
	13,192	Cameco Corp.		280,440
	19,794	Canadian Imperial Bank of Commerce		1,762,513
	15,948	Canadian National Railway Co.		932,946
	39,933	Canadian Natural Resources Ltd.		1,625,047
	40,874	Canadian Oil Sands Ltd.		884,930
	2,435	Canadian Pacific Railway Ltd.		379,722
	3,999	Canadian Tire Corp. Ltd., Class A		392,266
	6,603	Canadian Utilities Ltd., Class A		243,615
	6,745	Capital Power Corp.		151,316
	19,389	Celestica, Inc.(a)		214,835
	41,117	Cenovus Energy, Inc.		1,223,263
	6,763	CGI Group, Inc., Class A(a)		243,541
	4,574	CI Financial Corp.(b)		148,375
	14,548	Crescent Point Energy Corp.(b)		591,093
	28,158	Eldorado Gold Corp.		171,393
	3,551	Empire Co. Ltd., Class A		224,330
	23,974	Enbridge, Inc.		1,155,392
	64,180	Encana Corp.		1,484,833
	17,475	Enerplus Corp.(b)		387,095
	1,097	Fairfax Financial Holdings Ltd.		477,704
	7,799	Finning International, Inc.		210,352
	14,682	First Quantum Minerals Ltd.		292,048
	12,762	Fortis, Inc.		374,447
	3,266	George Weston Ltd.		245,757
	31,585	Goldcorp, Inc.		779,084
	16,838	Great-West Lifeco, Inc.		473,173
	17,809	Husky Energy, Inc.		581,273
	45,149	IAMGOLD Corp.		157,154
	4,339	IGM Financial, Inc.		215,833
	5,047	Industrial Alliance Insurance & Financial Services, Inc.		208,098
	5,267	Intact Financial Corp.		345,406
	15,962	Just Energy Group, Inc.(b)		126,684
	2,507	Keyera Corp.		166,532
	84,121	Kinross Gold Corp.(a)		341,098
	32,550	Lightstream Resources Ltd.(b)		195,457
	7,709	Loblaw Cos. Ltd.(b)		334,716
	8,961	Magna International, Inc.		876,789
	95,422	Manulife Financial Corp.		1,789,407
	5,617	Metro, Inc.		345,788
	15,610	National Bank of Canada		647,044
	4,920	Onex Corp.		280,643
	8,326	Pembina Pipeline Corp.		326,758
	52,656	Pengrowth Energy Corp.(b)		341,620
	91,569	Penn West Petroleum Ltd.		826,870
	23,040	Potash Corp. of Saskatchewan, Inc.		831,787
	33,133	Power Corp. of Canada		931,691
	16,745	Power Financial Corp.		531,287
	13,218	Precision Drilling Corp.		171,631

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

14

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio (PXF) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Canada (continued)
	6,685	Quebecor, Inc., Class B	$	157,463
	6,937	RioCan REIT		172,121
	19,475	Rogers Communications, Inc., Class B		772,470
	60,892	Royal Bank of Canada		4,058,727
	3,715	Saputo, Inc.		198,402
	17,137	Shaw Communications, Inc., Class B		414,586
	6,117	SNC-Lavalin Group, Inc.		277,131
	32,487	Sun Life Financial, Inc.		1,098,244
	70,282	Suncor Energy, Inc.		2,707,661
	76,398	Talisman Energy, Inc.		788,728
	37,917	Teck Resources Ltd., Class B		863,061
	10,421	TELUS Corp.		366,722
	18,362	Thomson Reuters Corp.		663,739
	3,287	Tim Hortons, Inc.		180,067
	74,976	Toronto-Dominion Bank (The)		3,602,428
	26,568	TransAlta Corp.		324,156
	31,970	TransCanada Corp.		1,488,020
	8,852	Veresen, Inc.		130,749
	2,885	Vermilion Energy, Inc.		191,720
	31,423	Yamana Gold, Inc.		235,075
				56,778,935
		China—0.1%
	165,481	BOC Hong Kong (Holdings) Ltd.		484,521
	96,797	Want Want China Holdings Ltd.		151,822
				636,343
		Colombia—0.0%
	16,961	Pacific Rubiales Energy Corp.		276,488
		Denmark—0.7%
	217	A.P. Moeller—Maersk A/S, Class A		491,803
	434	A.P. Moeller—Maersk A/S, Class B		1,033,592
	4,650	Carlsberg A/S, Class B		464,305
	53,678	Danske Bank A/S		1,515,694
	5,608	DSV A/S		187,001
	3,388	FLSmidth & Co. A/S		180,948
	3,271	Jyske Bank A/S(a)		179,560
	21,013	Novo Nordisk A/S, Class B		947,391
	53,228	TDC A/S		499,348
	8,924	Vestas Wind Systems A/S(a)		395,882
				5,895,524
		Finland—0.9%
	7,750	Elisa Oyj		231,356
	28,547	Fortum Oyj		643,996
	5,782	Kesko Oyj, Class B		236,021
	7,720	Kone Oyj, Class B		329,902
	11,853	Metso Oyj		474,636
	12,230	Neste Oil Oyj(b)		250,971
	304,894	Nokia Oyj(a)		2,280,739
	4,173	Nokian Renkaat Oyj(b)		165,598
	4,299	Orion Oyj, Class B		130,958
	16,847	Sampo Oyj, Class A		836,026
	41,852	Stora Enso Oyj, Class R		426,229
	40,160	UPM-Kymmene Oyj		701,616
	5,112	Wartsila Oyj Abp		284,514

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Finland (continued)
	16,609	YIT Oyj(b)	$	170,416
				7,162,978
		France—10.5%
	7,586	Accor SA		370,667
	1,352	Aeroports de Paris		168,022
	34,170	Air France-KLM(a)		491,077
	11,141	Air Liquide SA		1,592,642
	16,739	Airbus Group NV		1,148,635
	150,248	Alcatel-Lucent(a)		600,396
	26,437	Alstom SA		1,082,091
	2,701	Arkema SA		300,991
	2,267	AtoS		195,608
	155,755	AXA SA(b)		4,054,686
	67,900	BNP Paribas SA		5,094,277
	23,040	Bouygues SA(b)		1,035,533
	4,710	Bureau Veritas SA		143,674
	6,733	Cap Gemini SA		475,277
	65,247	Carrefour SA		2,535,823
	6,148	Casino Guichard Perrachon SA		782,123
	22,086	CGG SA(a)		381,567
	1,873	Christian Dior SA		384,747
	29,611	Cie de Saint-Gobain		1,807,334
	9,481	Cie Generale des Etablissements Michelin		1,156,837
	14,150	CNP Assurances		325,883
	83,152	Credit Agricole SA(a)		1,309,167
	21,679	Danone SA		1,597,936
	5,237	Edenred		176,524
	4,464	Eiffage SA		337,021
	20,118	Electricite de France		771,146
	3,716	Essilor International SA		397,200
	1,981	Eurazeo SA		166,783
	4,974	Eutelsat Communications SA		170,555
	4,770	Faurecia(a)		214,255
	1,829	Fonciere des Regions REIT		185,559
	176,885	GDF Suez(b)		4,457,596
	11,021	Groupe Eurotunnel SA		147,754
	1,549	ICADE REIT(b)		157,861
	3,222	Kering		712,113
	3,872	Klepierre REIT		177,409
	12,907	Lafarge SA		1,178,464
	10,302	Lagardere SCA		431,027
	7,680	Legrand SA		495,164
	5,399	L’Oreal SA(b)		928,261
	6,994	LVMH Moet Hennessy Louis Vuitton SA		1,374,624
	58,249	Natixis		413,275
	1,889	Neopost SA(b)		154,689
	3,820	Nexans SA		214,751
	322,487	Orange SA		5,220,407
	6,016	Pernod Ricard SA		721,621
	75,062	Peugeot SA(a)(b)		1,327,504
	3,703	Publicis Groupe SA		315,252
	11,554	Renault SA		1,123,816
	17,647	Rexel SA		445,325
	6,957	Safran SA		467,311
	55,241	Sanofi		5,975,892
	20,893	Schneider Electric SA		1,956,867

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

15

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio (PXF) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		France (continued)
	10,918	SCOR SE	$	398,214
	52,333	Societe Generale SA		3,250,790
	3,977	Sodexo		428,462
	25,065	Suez Environnement Co.		491,767
	4,712	Technip SA(b)		529,860
	2,144	Teleperformance		122,745
	4,675	Thales SA		297,205
	177,912	Total SA		12,699,278
	3,399	Unibail-Rodamco SE REIT		916,420
	3,144	Valeo SA		430,438
	9,377	Vallourec SA		553,936
	72,548	Veolia Environnement SA(b)		1,351,948
	26,823	Vinci SA(b)		2,020,981
	108,121	Vivendi SA		2,899,358
	1,564	Wendel SA		235,398
	3,808	Zodiac Aerospace		126,482
				84,604,301
		Germany—8.6%
	5,848	Adidas AG		623,790
	33,333	Allianz SE(b)		5,770,297
	6,534	Aurubis AG		348,074
	43,496	BASF SE(b)		5,031,608
	23,672	Bayer AG(b)		3,282,239
	18,898	Bayerische Motoren Werke AG		2,362,987
	1,784	Beiersdorf AG		178,743
	2,557	Bilfinger SE		303,593
	2,160	Brenntag AG		390,391
	86,330	Commerzbank AG(a)		1,532,768
	3,171	Continental AG		742,391
	55,078	Daimler AG		5,096,060
	82,902	Deutsche Bank AG		3,650,739
	7,365	Deutsche Boerse AG		539,088
	23,481	Deutsche Lufthansa AG(b)		588,641
	52,180	Deutsche Post AG		1,963,221
	275,592	Deutsche Telekom AG		4,617,942
	298,583	E.ON SE(b)		5,706,990
	3,411	Evonik Industries AG(a)		134,484
	4,925	Freenet AG		170,138
	7,039	Fresenius Medical Care AG & Co. KGaA		483,604
	4,555	Fresenius SE & Co. KGaA		691,888
	5,629	GEA Group AG		251,668
	4,458	Hannover Rueck SE		414,823
	8,910	HeidelbergCement AG(b)		772,382
	2,750	Henkel AG & Co. KGaA		282,086
	4,288	Henkel AG & Co. KGaA (Preference Shares)		477,247
	29,565	Infineon Technologies AG		343,483
	15,130	K+S AG		528,763
	11,517	Kloeckner & Co. SE(a)		174,061
	4,927	LANXESS AG		374,368
	1,787	Leoni AG		132,635
	6,376	Linde AG		1,321,233
	1,628	MAN SE		208,507
	1,484	Merck KGaA		250,106
	21,110	Metro AG		842,977
	13,317	Muenchener Rueckversicherungs-Gesellschaft AG(b)		3,073,445

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Germany (continued)
	3,741	Osram Licht AG(a)	$	195,709
	4,980	Porsche Automobil Holding SE (Preference Shares)		547,913
	9,256	ProSiebenSat.1 Media AG		404,460
	72,137	RWE AG		2,749,091
	5,914	Salzgitter AG		250,389
	16,770	SAP AG		1,349,571
	10,011	Scania AB, Class B		302,623
	37,687	Siemens AG		4,964,213
	5,871	Suedzucker AG		125,037
	2,845	Symrise AG		143,490
	4,336	Talanx AG		165,663
	41,994	ThyssenKrupp AG(a)		1,194,813
	16,564	TUI AG		275,027
	37,663	TUI Travel PLC		272,063
	2,000	Volkswagen AG		533,821
	10,177	Volkswagen AG (Preference Shares)		2,738,928
				69,870,271
		Greece—0.1%
	15,656	Hellenic Telecommunications Organization SA(a)		249,423
	25,886	OPAP SA		412,760
	14,968	Public Power Corp. SA		226,010
				888,193
		Hong Kong—1.5%
	253,483	AIA Group Ltd.		1,229,349
	41,537	Bank of East Asia Ltd. (The)		171,177
	71,816	Cathay Pacific Airways Ltd.		135,613
	59,973	Cheung Kong (Holdings) Ltd.		1,021,100
	65,824	CLP Holdings Ltd.		526,398
	145,331	Esprit Holdings Ltd.		241,442
	103,941	Hang Lung Properties Ltd.		309,027
	56,464	Henderson Land Development Co. Ltd.		336,475
	126,230	Hong Kong & China Gas Co. Ltd.		291,118
	15,399	Hong Kong Exchanges & Clearing Ltd.		277,477
	31,320	Hongkong Land Holdings Ltd.		219,240
	110,334	Hutchison Whampoa Ltd.		1,508,530
	5,609	Jardine Cycle & Carriage Ltd.		209,598
	5,730	Jardine Matheson Holdings Ltd.		356,979
	6,791	Jardine Strategic Holdings Ltd.		242,439
	46,561	Kerry Properties Ltd.		152,844
	339,991	Li & Fung Ltd.		493,792
	85,948	Link (The) REIT		427,365
	51,342	MTR Corp. Ltd.		193,703
	331,548	New World Development Co. Ltd.		342,117
	500,797	Noble Group Ltd.		512,625
	38,148	Power Assets Holdings Ltd.		329,674
	137,530	Sino Land Co. Ltd.		205,776
	86,296	Sun Hung Kai Properties Ltd.		1,086,930
	34,325	Swire Pacific Ltd., Class A		396,253
	58,192	Swire Properties Ltd.		174,887
	83,992	Wharf Holdings Ltd. (The)		587,728
	48,678	Yue Yuen Industrial (Holdings) Ltd.		150,375
				12,130,031

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

16

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio (PXF) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Indonesia—0.0%
	414,401	Golden Agri-Resources Ltd.	$	201,366
		Ireland—0.4%
	1,256,249	Bank of Ireland(a)		492,944
	44,987	CRH PLC		1,303,522
	5,279	DCC PLC		270,357
	3,110	Kerry Group PLC, Class A		245,362
	4,786	Shire PLC		272,990
	8,355	Smurfit Kappa Group PLC		185,759
				2,770,934
		Israel—0.4%
	44,062	Bank Hapoalim BM		248,615
	81,767	Bank Leumi Le-Israel(a)		319,622
	232,486	Bezeq Israeli Telecommunication Corp. Ltd.		421,139
	40,340	Israel Chemicals Ltd.		357,329
	32,527	Teva Pharmaceutical Industries Ltd.		1,621,041
				2,967,746
		Italy—4.2%
	160,991	A2A SpA		196,547
	103,522	Assicurazioni Generali SpA(b)		2,415,750
	15,308	Atlantia SpA		397,974
	1,659,989	Banca Monte dei Paschi di Siena SpA(a)(b)		552,167
	28,787	Banca Popolare dell’Emilia Romagna SC(a)		330,692
	381,729	Banca Popolare di Milano Scarl(a)(b)		384,262
	35,715	Banco Popolare SC(a)		734,886
	9,355	Endesa SA		354,307
	54,539	Enel Green Power SpA		155,779
	866,010	Enel SpA		4,891,918
	287,893	Eni SpA		7,468,616
	138,493	Fiat SpA(a)		1,666,797
	51,088	Finmeccanica SpA(a)		471,414
	903,797	Intesa Sanpaolo SpA		3,082,771
	63,878	Mediaset SpA(a)		351,800
	29,306	Mediobanca SpA(a)		324,261
	13,738	Pirelli & C. SpA		230,105
	10,138	Prysmian SpA		263,425
	20,908	Saipem SpA		559,506
	104,234	Snam SpA		626,085
	1,608,201	Telecom Italia SpA(a)		2,059,266
	902,748	Telecom Italia SpA RSP		895,595
	64,953	Terna-Rete Elettrica Nationale SpA		351,236
	74,158	UBI Banca-Unione di Banche Italiane ScpA		705,371
	461,914	UniCredit SpA		4,124,604
	20,422	Unipol Gruppo Finanziario SpA		147,385
	25,749	Unipol Gruppo Finanziario SpA (Preference Shares)		169,586
				33,912,105
		Japan—19.0%
	82,287	Aeon Co. Ltd.		951,355
	11,576	Air Water, Inc.		162,619
	18,158	Aisin Seiki Co. Ltd.		641,707
	33,806	Ajinomoto Co., Inc.		497,079
	4,276	Alfresa Holdings Corp.		266,230
	12,173	Alps Electric Co. Ltd.		137,758
	22,023	Amada Co. Ltd.		159,324

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Japan (continued)
	93,493	ANA Holdings, Inc.(b)	$	204,101
	133,541	Asahi Glass Co. Ltd.		756,928
	22,470	Asahi Group Holdings Ltd.		619,877
	103,040	Asahi Kasei Corp.		701,055
	83,222	Astellas Pharma, Inc.		926,318
	25,864	Bank of Kyoto Ltd. (The)		210,659
	82,605	Bank of Yokohama Ltd. (The)		414,844
	3,968	Benesse Holdings, Inc.		150,912
	30,166	Bridgestone Corp.		1,080,838
	15,729	Brother Industries Ltd.		219,729
	80,720	Canon, Inc.		2,540,527
	12,131	Casio Computer Co. Ltd.		138,470
	10,856	Central Japan Railway Co.		1,332,690
	50,502	Chiba Bank Ltd. (The)		320,859
	51,311	Chubu Electric Power Co., Inc.(a)		584,187
	23,804	Chugoku Electric Power Co., Inc. (The)		311,561
	117,000	Cosmo Oil Co. Ltd.		218,767
	10,375	Credit Saison Co. Ltd.		220,805
	54,146	Dai Nippon Printing Co. Ltd.		488,719
	21,645	Daicel Corp.		180,958
	28,384	Daido Steel Co. Ltd.		138,655
	20,073	Daihatsu Motor Co. Ltd.		332,290
	92,314	Dai-ichi Life Insurance Co. Ltd. (The)		1,277,846
	48,022	Daiichi Sankyo Co. Ltd.		805,303
	8,700	Daikin Industries Ltd.		502,581
	4,467	Daito Trust Construction Co. Ltd.		454,353
	38,812	Daiwa House Industry Co. Ltd.		654,656
	50,261	Daiwa Securities Group, Inc.		376,404
	42,355	Denki Kagaku Kogyo Kabushiki Kaisha		140,561
	17,255	Denso Corp.		785,808
	11,485	Dentsu, Inc.		472,217
	79,148	DIC Corp.		209,977
	25,557	East Japan Railway Co.		1,864,673
	22,725	Ebara Corp.		135,037
	15,885	Eisai Co. Ltd.		613,163
	12,255	Electric Power Development Co. Ltd.		325,600
	2,944	FamilyMart Co. Ltd.		122,342
	3,684	FANUC Corp.		663,589
	708	Fast Retailing Co. Ltd.		220,197
	38,118	Fuji Electric Co. Ltd.		172,772
	16,851	Fuji Heavy Industries Ltd.		442,926
	35,988	FUJIFILM Holdings Corp.		930,086
	37,064	Fujikura Ltd.		159,649
	196,509	Fujitsu Ltd.		1,154,238
	83,530	Fukuoka Financial Group, Inc.		340,989
	101,043	Furukawa Electric Co. Ltd.		227,507
	28,744	Gunma Bank Ltd. (The)		152,795
	21,553	Hakuhodo DY Holdings, Inc.		167,318
	60,639	Hankyu Hanshin Holdings, Inc.		332,431
	22,621	Haseko Corp.		143,277
	12,064	Hino Motors Ltd.		158,964
	9,197	Hitachi Chemical Co. Ltd.		135,321
	8,563	Hitachi Construction Machinery Co. Ltd.		159,021
	380,791	Hitachi Ltd.		2,710,084
	23,248	Hokkaido Electric Power Co., Inc.(a)		142,242
	71,176	Hokuhoku Financial Group, Inc.		137,266

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

17

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio (PXF) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Japan (continued)
	10,526	Hokuriku Electric Power Co.	$	130,660
	122,529	Honda Motor Co. Ltd.		4,054,312
	17,842	Hoya Corp.		526,439
	8,603	Ibiden Co. Ltd.		155,048
	11,253	Idemitsu Kosan Co. Ltd.		248,414
	86,175	IHI Corp.		343,350
	71,603	Inpex Corp.		1,043,028
	31,809	Isetan Mitsukoshi Holdings Ltd.		395,472
	64,992	Isuzu Motors Ltd.		377,291
	133,060	ITOCHU Corp.		1,490,168
	43,210	J Front Retailing Co. Ltd.		274,107
	5,261	Japan Airlines Co. Ltd.		272,449
	27,087	Japan Steel Works Ltd. (The)		114,288
	33,798	Japan Tobacco, Inc.		1,110,388
	52,683	JFE Holdings, Inc.		974,752
	7,041	JGC Corp.		228,152
	31,343	Joyo Bank Ltd. (The)		152,496
	10,824	JSR Corp.		177,486
	15,680	JTEKT Corp.		228,715
	266,637	JX Holdings, Inc.		1,383,432
	98,547	Kajima Corp.		375,279
	18,132	Kamigumi Co. Ltd.		172,889
	23,978	Kaneka Corp.		140,840
	98,531	Kanematsu Corp.		151,438
	65,629	Kansai Electric Power Co., Inc. (The)(a)		549,960
	21,200	Kao Corp.		798,398
	95,946	Kawasaki Heavy Industries Ltd.		355,982
	97,915	Kawasaki Kisen Kaisha Ltd.		196,501
	26,312	KDDI Corp.		1,401,761
	19,345	Keikyu Corp.		160,593
	30,492	Keio Corp.		215,817
	9,368	Kewpie Corp.		134,719
	599	Keyence Corp.		230,951
	12,626	Kinden Corp.		116,186
	95,908	Kintetsu Corp.		337,063
	75,108	Kirin Holdings Co. Ltd.		1,040,409
	398,148	Kobe Steel Ltd.		522,289
	9,130	Koito Manufacturing Co. Ltd.		199,135
	53,609	Komatsu Ltd.		1,181,865
	39,113	Konica Minolta, Inc.		363,370
	5,066	K’s Holdings Corp.		147,145
	42,026	Kubota Corp.		540,599
	24,217	Kuraray Co. Ltd.		271,923
	7,182	Kurita Water Industries Ltd.		151,163
	17,145	Kyocera Corp.		806,814
	14,908	Kyowa Hakko Kirin Co. Ltd.		169,877
	28,676	Kyushu Electric Power Co., Inc.(a)		289,427
	3,065	Lawson, Inc.		213,035
	15,284	LIXIL Group Corp.		404,431
	3,966	Makita Corp.		210,433
	196,637	Marubeni Corp.		1,312,838
	19,499	Marui Group Co. Ltd.		173,134
	107,227	Mazda Motor Corp.		479,714
	19,332	Medipal Holdings Corp.		271,765
	5,673	MEIJI Holdings Co. Ltd.		348,211
	158,350	Mitsubishi Chemical Holdings Corp.		634,020

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Japan (continued)
	133,750	Mitsubishi Corp.	$	2,393,490
	105,911	Mitsubishi Electric Corp.		1,205,820
	30,031	Mitsubishi Estate Co. Ltd.		680,291
	27,447	Mitsubishi Gas Chemical Co., Inc.		158,529
	188,666	Mitsubishi Heavy Industries Ltd.		993,659
	135,382	Mitsubishi Materials Corp.		392,296
	36,507	Mitsubishi Motors Corp.		395,269
	12,455	Mitsubishi Tanabe Pharma Corp.		170,700
	998,173	Mitsubishi UFJ Financial Group, Inc.		5,296,229
	158,165	Mitsui & Co. Ltd.		2,243,574
	146,241	Mitsui Chemicals, Inc.		356,476
	100,882	Mitsui Engineering & Shipbuilding Co. Ltd.		195,542
	26,996	Mitsui Fudosan Co. Ltd.		798,384
	57,740	Mitsui Mining & Smelting Co. Ltd.		143,008
	137,921	Mitsui OSK Lines Ltd.		460,412
	1,590,238	Mizuho Financial Group, Inc.		3,113,535
	44,258	MS&AD Insurance Group Holdings, Inc.		992,176
	5,605	Murata Manufacturing Co. Ltd.		466,397
	59,970	Nagoya Railroad Co. Ltd.		190,213
	8,694	Namco Bandai Holdings, Inc.		187,583
	314,088	NEC Corp.		882,460
	8,811	NGK Insulators Ltd.		166,387
	8,338	NGK Spark Plug Co. Ltd.		191,084
	12,730	NHK Spring Co. Ltd.		114,900
	33,515	Nichirei Corp.		162,736
	5,362	Nidec Corp.		305,290
	19,867	Nikon Corp.		311,765
	7,003	Nintendo Co. Ltd.		736,292
	64,614	Nippon Electric Glass Co. Ltd.		315,638
	92,833	Nippon Express Co. Ltd.		438,946
	19,453	Nippon Meat Packers, Inc.		337,262
	16,519	Nippon Paper Industries Co. Ltd.		301,757
	148,507	Nippon Sheet Glass Co. Ltd.(a)		190,450
	546,692	Nippon Steel & Sumitomo Metal Corp.		1,434,297
	48,921	Nippon Telegraph & Telephone Corp.		2,711,129
	213,637	Nippon Yusen Kabushiki Kaisha		579,319
	242,016	Nissan Motor Co. Ltd.		2,077,807
	18,550	Nisshin Seifun Group, Inc.		215,917
	3,332	Nissin Foods Holdings Co. Ltd.		159,505
	8,654	Nitto Denko Corp.		373,609
	37,439	NKSJ Holdings, Inc.		934,234
	9,040	NOK Corp.		147,967
	145,167	Nomura Holdings, Inc.		835,616
	7,260	Nomura Real Estate Holdings, Inc.		135,463
	23,041	NSK Ltd.		242,477
	55,369	NTN Corp.		189,713
	8,042	NTT Data Corp.		311,367
	98,974	NTT DOCOMO, Inc.		1,571,570
	60,454	Obayashi Corp.		390,007
	25,907	Odakyu Electric Railway Co. Ltd.		227,495
	96,961	OJI Holdings Corp.		407,208
	8,193	Olympus Corp.(a)		250,241
	5,816	OMRON Corp.		205,539
	2,602	Ono Pharmaceutical Co. Ltd.		206,071
	1,351	Oriental Land Co. Ltd.		202,419
	47,282	ORIX Corp.		683,657

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

18

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio (PXF) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Japan (continued)
	157,767	Osaka Gas Co. Ltd.	$	594,619
	17,913	Otsuka Holdings Co. Ltd.		516,084
	170,885	Panasonic Corp.		1,871,956
	30,043	Rengo Co. Ltd.		134,407
	135,676	Resona Holdings, Inc.		693,322
	63,431	Ricoh Co. Ltd.		729,627
	5,199	Rohm Co. Ltd.		248,117
	3,441	Sankyo Co. Ltd.		137,606
	2,960	Santen Pharmaceutical Co. Ltd.		132,135
	42,355	Sapporo Holdings Ltd.		179,537
	10,753	SBI Holdings, Inc.		122,636
	8,561	Secom Co. Ltd.		493,043
	8,422	Sega Sammy Holdings, Inc.		169,512
	8,237	Seiko Epson Corp.		224,653
	17,836	Seino Holdings Co. Ltd.		176,003
	31,061	Sekisui Chemical Co. Ltd.		315,323
	39,372	Sekisui House Ltd.		472,927
	45,260	Seven & I Holdings Co. Ltd.		1,786,031
	223,351	Sharp Corp.(a)		559,744
	14,874	Shikoku Electric Power Co., Inc.(a)		174,149
	2,003	Shimamura Co. Ltd.		186,672
	1,734	Shimano, Inc.		173,145
	61,828	Shimizu Corp.		350,449
	19,139	Shin-Etsu Chemical Co. Ltd.		1,123,796
	77,662	Shinsei Bank Ltd.		151,295
	13,146	Shionogi & Co. Ltd.		230,361
	22,029	Shiseido Co. Ltd.		393,352
	35,662	Shizuoka Bank Ltd. (The)		340,735
	217,564	Showa Denko K.K.		289,659
	31,711	Showa Shell Sekiyu K.K.		321,922
	1,207	SMC Corp.		286,832
	21,054	SoftBank Corp.		1,564,365
	281,065	Sojitz Corp.		442,990
	136,504	Sony Corp.		2,394,666
	9,886	Sony Financial Holdings, Inc.		158,524
	6,844	Stanley Electric Co. Ltd.		151,419
	157,071	Sumitomo Chemical Co. Ltd.		588,920
	116,165	Sumitomo Corp.		1,509,065
	53,583	Sumitomo Electric Industries Ltd.		740,143
	12,626	Sumitomo Forestry Co. Ltd.		128,547
	51,673	Sumitomo Heavy Industries Ltd.		219,541
	38,424	Sumitomo Metal Mining Co. Ltd.		579,651
	80,601	Sumitomo Mitsui Financial Group, Inc.		3,182,221
	160,480	Sumitomo Mitsui Trust Holdings, Inc.		661,401
	12,790	Sumitomo Realty & Development Co. Ltd.		495,824
	14,987	Sumitomo Rubber Industries Ltd.		208,189
	3,889	Suntory Beverage & Food Ltd.		135,725
	4,684	Suzuken Co. Ltd.		168,743
	28,760	Suzuki Motor Corp.		741,876
	57,527	T&D Holdings, Inc.		686,494
	72,162	Taiheiyo Cement Corp.		252,903
	82,136	Taisei Corp.		380,326
	2,039	Taisho Pharmaceutical Holdings Co. Ltd.		150,305
	23,869	Taiyo Nippon Sanso Corp.		190,204
	25,726	Takashimaya Co. Ltd.		243,786
	44,334	Takeda Pharmaceutical Co. Ltd.		1,991,232

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Japan (continued)
	9,736	TDK Corp.	$	415,555
	132,463	Teijin Ltd.		325,484
	13,211	Terumo Corp.		262,409
	61,344	Tobu Railway Co., Ltd.		300,264
	31,643	Tohoku Electric Power Co., Inc.		301,096
	46,530	Tokio Marine Holdings, Inc.		1,371,530
	41,330	Tokuyama Corp.		119,762
	396,831	Tokyo Electric Power Co., Inc.(a)		1,499,528
	6,520	Tokyo Electron Ltd.		370,392
	179,416	Tokyo Gas Co. Ltd.		939,673
	85,376	Tokyu Corp.		537,413
	42,321	TonenGeneral Sekiyu K.K.		399,802
	51,767	Toppan Printing Co. Ltd.		356,262
	90,627	Toray Industries, Inc.		591,759
	422,152	Toshiba Corp.		1,653,067
	61,728	Tosoh Corp.		235,672
	13,052	TOTO Ltd.		184,632
	14,586	Toyo Seikan Group Holdings Ltd.		216,898
	4,555	Toyo Suisan Kaisha Ltd.		145,814
	82,233	Toyobo Co. Ltd.		132,829
	6,783	Toyoda Gosei Co. Ltd.		125,102
	9,241	Toyota Industries Corp.		426,090
	123,934	Toyota Motor Corp.		6,692,315
	33,478	Toyota Tsusho Corp.		881,276
	140,104	Ube Industries Ltd.		237,278
	2,317	Unicharm Corp.		125,660
	33,921	UNY Group Holding Co., Ltd.		218,834
	17,659	West Japan Railway Co.		716,214
	161,672	Yamada Denki Co. Ltd.		596,675
	15,962	Yamaguchi Financial Group, Inc.		147,197
	11,079	Yamaha Corp.		148,371
	20,585	Yamaha Motor Co. Ltd.		317,793
	21,804	Yamato Holdings Co. Ltd.		448,674
	15,962	Yamazaki Baking Co. Ltd.		195,013
	23,393	Yokohama Rubber Co. Ltd. (The)		209,083
				154,124,737
		Liechtenstein—0.0%
	18,454	Antofagasta PLC		245,233
		Luxembourg—0.4%
	6,303	APERAM(a)		163,777
	151,035	ArcelorMittal SA		2,451,231
	3,430	Luxottica Group SpA		196,274
	11,188	SES SA FDR		421,093
				3,232,375
		Netherlands—4.9%
	178,915	Aegon NV		1,621,166
	11,954	Akzo Nobel NV		919,736
	3,652	ASML Holding NV		300,934
	3,948	Corio NV REIT		184,669
	14,582	Delta Lloyd NV		383,245
	4,320	Fugro NV CVA		285,808
	5,722	Heineken Holding NV		364,956
	10,168	Heineken NV		704,922
	254,366	ING Groep NV CVA(a)		3,609,792

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

19

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio (PXF) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Netherlands (continued)
	344,563	Koninklijke (Royal) KPN NV(a)	$	1,224,005
	42,813	Koninklijke Ahold NV		825,433
	34,522	Koninklijke BAM Groep NV		186,727
	3,423	Koninklijke Boskalis Westminster NV		193,786
	10,130	Koninklijke DSM NV		725,884
	45,829	Koninklijke Philips Electronics NV		1,466,281
	4,395	Nutreco NV		203,901
	90,179	PostNL NV(a)		395,369
	5,089	Randstad Holding NV		295,688
	12,619	Reed Elsevier NV		257,291
	331,109	Royal Dutch Shell PLC, Class A		13,121,941
	210,925	Royal Dutch Shell PLC, Class B		8,975,168
	61,379	Royal Imtech NV(a)(b)		119,913
	10,236	SBM Offshore NV(a)		186,847
	68,968	SNS REAAL NV(a)(b)		0
	17,201	Tenaris SA		384,939
	24,225	TNT Express NV		217,994
	52,050	Unilever NV CVA		2,228,967
	12,902	Wolters Kluwer NV(b)		359,037
	5,791	Ziggo NV		251,163
				39,995,562
		New Zealand—0.1%
	32,974	Fletcher Building Ltd.		279,031
	166,956	Telecom Corp. of New Zealand Ltd.		397,306
				676,337
		Norway—0.9%
	9,343	Aker Solutions ASA(b)		149,257
	50,887	DNB ASA		897,941
	7,170	Gjensidige Forsikring ASA(b)		131,937
	16,723	Marine Harvest ASA		204,401
	91,748	Norsk Hydro ASA		490,003
	56,736	Orkla ASA		467,616
	18,223	Petroleum Geo-Services ASA		219,217
	279,172	REC Silicon ASA(a)		155,051
	17,683	Seadrill Ltd.		616,045
	93,176	Statoil ASA		2,822,140
	26,408	Storebrand ASA(a)		147,733
	28,776	Telenor ASA		673,973
	10,549	Yara International ASA		496,978
				7,472,292
		Portugal—0.3%
	972,327	Banco Comercial Portugues SA, Class R(a)		295,251
	138,018	Banco Espirito Santo SA(a)		244,187
	158,140	EDP-Energias de Portugal SA		767,441
	15,427	Galp Energia SGPS SA		267,058
	8,563	Jeronimo Martins SGPS SA		149,659
	146,045	Portugal Telecom SGPS SA		607,496
				2,331,092
		Singapore—0.8%
	79,960	Ascendas REIT		145,862
	130,433	CapitaLand Ltd.		332,485
	101,863	CapitaMall Trust REIT		161,881
	87,294	ComfortDelGro Corp. Ltd.		147,420
	76,413	DBS Group Holdings Ltd.		1,031,136

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Singapore (continued)
	70,492	Global Logistic Properties Ltd.	$	160,037
	398,762	Hutchison Port Holdings Trust		271,158
	71,582	Keppel Corp. Ltd.		600,437
	96,332	Oversea-Chinese Banking Corp. Ltd.		740,514
	40,121	SembCorp Industries Ltd.		171,625
	39,980	SembCorp Marine Ltd.		129,620
	16,322	Singapore Airlines Ltd.		134,960
	55,612	Singapore Press Holdings Ltd.		185,617
	44,328	Singapore Technologies Engineering Ltd.		134,889
	341,763	Singapore Telecommunications Ltd.		1,042,699
	46,701	United Overseas Bank Ltd.		809,506
	135,765	Wilmar International Ltd.		367,707
				6,567,553
		South Korea—3.7%
	13,520	BS Financial Group, Inc.		206,732
	2,573	Cheil Industries, Inc.		164,096
	1,557	CJ Corp.		188,353
	2,253	Daelim Industrial Co. Ltd.		183,371
	5,830	Daewoo Shipbuilding & Marine Engineering Co. Ltd.		168,699
	3,610	Dongbu Insurance Co. Ltd.		199,139
	4,267	Doosan Heavy Industries & Construction Co. Ltd.		143,706
	10,830	Doosan Infracore Co. Ltd.(a)		130,488
	1,125	E-Mart Co. Ltd.		256,944
	5,192	GS Engineering & Construction Corp.(a)		182,396
	6,167	GS Holdings		287,073
	18,946	Hana Financial Group, Inc.		666,493
	4,730	Hanwha Corp.		137,556
	3,044	Hyosung Corp.		217,113
	3,887	Hyundai Engineering & Construction Co. Ltd.		209,905
	3,777	Hyundai Heavy Industries Co. Ltd.		707,297
	6,010	Hyundai Marine & Fire Insurance Co. Ltd.		176,234
	2,162	Hyundai Mobis		617,236
	9,252	Hyundai Motor Co.		2,059,383
	3,949	Hyundai Steel Co.		257,967
	18,800	Industrial Bank of Korea		231,066
	26,898	KB Financial Group, Inc.		916,297
	14,840	Kia Motors Corp.		822,928
	31,780	Korea Electric Power Corp.		1,214,855
	3,240	Korea Gas Corp.(a)		193,779
	5,208	Korean Air Lines Co. Ltd.(a)		167,837
	20,600	KT Corp.		653,905
	5,573	KT&G Corp.		446,573
	2,333	LG Chem Ltd.		593,805
	5,893	LG Corp.		327,928
	23,450	LG Display Co. Ltd.(a)		622,958
	14,888	LG Electronics, Inc.		989,844
	6,436	LG International Corp.		190,283
	17,040	LG Uplus Corp.		167,382
	856	Lotte Chemical Corp.		135,031
	835	Lotte Shopping Co. Ltd.		258,589
	2,064	LS Corp.		161,596
	881	OCI Co. Ltd.(a)		154,322
	6,589	POSCO		1,960,822

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

20

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio (PXF) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		South Korea (continued)
	8,178	Samsung C&T Corp.	$	512,856
	3,098	Samsung Electro-Mechanics Co. Ltd.		198,478
	4,238	Samsung Electronics Co. Ltd.		5,508,211
	2,162	Samsung Engineering Co. Ltd.(a)		161,737
	2,070	Samsung Fire & Marine Insurance Co. Ltd.		490,806
	10,450	Samsung Heavy Industries Co. Ltd.		285,193
	4,274	Samsung Life Insurance Co. Ltd.		397,495
	1,569	Samsung SDI Co. Ltd.		229,284
	28,823	Shinhan Financial Group Co. Ltd.		1,255,236
	645	Shinsegae Co. Ltd.		139,824
	1,747	SK C&C Co. Ltd.		239,234
	2,613	SK Holdings Co. Ltd.		462,769
	12,350	SK Hynix, Inc.(a)		479,873
	7,108	SK Innovation Co. Ltd.		811,714
	22,840	SK Networks Co. Ltd.(a)		210,430
	2,949	SK Telecom Co. Ltd.		609,321
	4,394	S-Oil Corp.		256,845
	34,940	Woori Finance Holdings Co. Ltd.(a)		393,933
				30,013,220
		Spain—4.8%
	861	Abengoa SA		4,790
	43,122	Abengoa SA, Class B		191,988
	21,143	Abertis Infraestructuras SA		475,063
	3,424	Acciona SA		277,731
	19,294	ACS, Actividades de Construccion y Servicios SA		825,970
	6,945	Amadeus IT Holding SA, Class A		288,454
	390,253	Banco Bilbao Vizcaya Argentaria SA		4,786,073
	173,603	Banco de Sabadell SA		589,737
	78,662	Banco Popular Espanol SA		578,064
	1,221,484	Banco Santander SA		12,138,372
	76,822	Bankia SA(a)		156,474
	27,908	Bankinter SA		213,330
	86,848	CaixaBank SA		528,640
	33,571	Distribuidora Internacional de Alimentacion SA		299,675
	9,013	Enagas SA		277,433
	25,482	Ferrovial SA		565,313
	6,479	Fomento de Construcciones y Contratas SA(a)		142,522
	12,649	Gamesa Corp. Tecnologica SA(a)		125,418
	20,605	Gas Natural SDG SA		590,396
	2,849	Hochtief AG(b)		264,629
	380,066	Iberdrola SA		2,653,345
	7,440	Indra Sistemas SA		139,368
	4,107	Industria de Diseno Textil SA (Inditex)		615,866
	15,348	Leighton Holdings Ltd.		271,331
	90,360	Mapfre SA		380,251
	3,998	Red Electrica Corp. SA		328,614
	105,316	Repsol SA		2,832,901
	17,223	Telefonica Deutschland Holding AG		142,973
	499,760	Telefonica SA		8,363,807
				39,048,528
		Sweden—2.0%
	8,027	Alfa Laval AB(b)		212,472

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Sweden (continued)
	6,459	Assa Abloy AB, Class B(a)	$	341,142
	17,490	Atlas Copco AB, Class A(b)		505,090
	10,872	Atlas Copco AB, Class B(b)		294,618
	19,281	Boliden AB(b)		292,311
	15,831	Electrolux AB, Series B		437,746
	4,866	Getinge AB, Class B		142,689
	24,657	Hennes & Mauritz AB, Class B(b)		1,001,883
	4,412	Hexagon AB, Class B		140,276
	4,159	Industrivarden AB, Class A		92,920
	2,504	Industrivarden AB, Class C		52,255
	8,985	Meda AB, Class A		160,483
	104	NCC AB, Class A		3,688
	5,811	NCC AB, Class B		202,323
	142,819	Nordea Bank AB		2,058,931
	14,037	Ratos AB, Class B		142,268
	49,813	Sandvik AB		701,306
	25,704	Securitas AB, Class B		309,423
	50,583	Skandinaviska Enskilda Banken AB, Class A		695,071
	28,630	Skanska AB, Class B		653,268
	17,069	SKF AB, Class B		440,024
	22,484	SSAB AB, Class A(a)(b)		194,758
	10,133	SSAB AB, Class B(a)(b)		76,174
	23,070	Svenska Cellulosa (SCA) AB, Class B		644,639
	18,391	Svenska Handelsbanken AB, Class A		920,834
	35,642	Swedbank AB, Class A		944,525
	5,636	Swedish Match AB		192,770
	25,651	Tele2 AB, Class B		326,694
	135,675	Telefonaktiebolaget LM Ericsson, Class B		1,634,287
	128,570	TeliaSonera AB		930,406
	8,024	Trelleborg AB, Class B		170,653
	77,458	Volvo AB, Class B		1,218,285
				16,134,212
		Switzerland—5.2%
	86,074	ABB Ltd.(a)		2,066,675
	6,036	Adecco SA(a)		504,228
	2,385	Aryzta AG(a)		220,093
	3,063	Baloise Holding AG		372,243
	6,982	Chugai Pharmaceutical Co. Ltd.		176,139
	12,915	Clariant AG(a)		254,061
	9,591	Coca-Cola HBC AG(a)		242,599
	7,431	Compagnie Financiere Richemont SA		753,692
	76,457	Credit Suisse Group AG		2,423,664
	755	Geberit AG		251,509
	183	Georg Fischer AG(a)		144,870
	208	Givaudan SA(a)		327,669
	509,265	Glencore Xstrata PLC(a)		2,738,844
	294	Helvetia Holding AG		146,090
	12,357	Holcim Ltd.(a)		1,131,210
	5,623	Julius Baer Group Ltd.(a)		262,805
	1,705	Kuehne + Nagel International AG		232,769
	1	Lindt & Spruengli AG		58,300
	12	Lindt & Spruengli AG NVTG		58,334
	1,983	Lonza Group AG(a)		207,095
	99,695	Nestle SA		7,694,106
	72,026	Novartis AG		6,241,790
	15,331	Roche Holding AG		4,492,473

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

21

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio (PXF) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Switzerland (continued)
	542	Schindler Holding AG	$	82,613
	1,131	Schindler Holding AG NVTG		174,959
	129	SGS SA		321,603
	54	Sika AG		218,282
	977	Sonova Holding AG(a)		140,927
	43,361	STMicroelectronics NV(a)		414,602
	1,024	Sulzer AG		157,476
	868	Swatch Group AG (The)		104,501
	555	Swatch Group BR AG (The)		355,838
	2,589	Swiss Life Holding AG(a)		635,745
	20,636	Swiss Re AG(a)		1,801,211
	936	Swisscom AG		568,755
	2,795	Syngenta AG		1,106,635
	86,064	UBS AG(a)		1,798,600
	11,858	Zurich Insurance Group AG(a)		3,395,311
				42,278,316
		United Kingdom—15.9%
	18,910	3i Group PLC		121,272
	19,953	Aberdeen Asset Management PLC		147,165
	7,074	Admiral Group PLC		166,988
	6,130	Aggreko PLC		163,232
	12,143	AMEC PLC		253,225
	28,124	Amlin PLC		212,607
	89,905	Anglo American PLC		2,401,620
	7,401	Associated British Foods PLC		371,285
	60,635	AstraZeneca PLC		4,775,248
	261,347	Aviva PLC		2,319,019
	8,652	Babcock International Group PLC		174,435
	203,640	BAE Systems PLC		1,375,426
	66,626	Balfour Beatty PLC		315,341
	1,213,832	Barclays PLC		5,169,132
	28,880	Barratt Developments PLC		180,188
	125,398	BG Group PLC		2,536,655
	91,780	BHP Billiton PLC		2,973,973
	1,746,275	BP PLC		14,719,776
	67,057	British American Tobacco PLC		3,869,039
	28,956	British Land Co. PLC REIT		337,611
	27,539	British Sky Broadcasting Group PLC		409,209
	269,755	BT Group PLC		1,678,499
	10,509	Bunzl PLC		298,293
	8,017	Burberry Group PLC		201,026
	258,574	Cable & Wireless Communications PLC		230,533
	15,671	Capita PLC		287,105
	36,026	Carillion PLC		224,956
	24,132	Catlin Group Ltd.		215,354
	357,260	Centrica PLC		1,990,730
	41,297	Cobham PLC		215,263
	60,032	Compass Group PLC		954,878
	108,911	Debenhams PLC		147,489
	57,365	Diageo PLC		1,760,498
	79,283	Direct Line Insurance Group PLC		335,085
	376,945	Dixons Retail PLC(a)		286,293
	18,564	Drax Group PLC		207,512
	27,324	DS Smith PLC		145,335
	23,061	Experian PLC		442,355
	114,319	FirstGroup PLC(a)		249,399

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		United Kingdom (continued)
	102,156	G4S PLC	$	407,089
	46,066	GKN PLC		298,693
	195,474	GlaxoSmithKline PLC		5,386,704
	9,652	Greene King PLC		145,133
	28,834	Hammerson PLC REIT		277,763
	24,301	Hang Seng Bank Ltd.		395,882
	75,438	Hays PLC		191,963
	11,576	Hiscox Ltd.		137,999
	98,771	Home Retail Group PLC		340,231
	1,200,069	HSBC Holdings PLC		12,241,343
	30,478	ICAP PLC		213,111
	8,134	IMI PLC		206,020
	44,821	Imperial Tobacco Group PLC		1,935,202
	22,901	Inchcape PLC		247,871
	23,633	Informa PLC		192,464
	15,772	Inmarsat PLC		193,880
	7,133	Intercontinental Hotels Group PLC		243,057
	19,019	Intermediate Capital Group PLC		142,460
	49,968	International Consolidated Airlines Group SA(a)		340,953
	2,879	Intertek Group PLC		141,270
	35,678	Intu Properties PLC REIT		175,913
	29,834	Investec PLC		262,712
	59,617	ITV PLC		183,213
	144,297	J Sainsbury PLC		817,942
	15,238	John Wood Group PLC		201,596
	8,010	Johnson Matthey PLC		442,683
	53,766	Kazakhmys PLC(a)		216,163
	114,268	Kingfisher PLC		806,713
	58,510	Ladbrokes PLC		151,456
	13,180	Lancashire Holdings Ltd.		155,786
	29,592	Land Securities Group PLC REIT		530,656
	261,635	Legal & General Group PLC		935,698
	1,966,757	Lloyds Banking Group PLC(a)		2,502,682
	263,692	Man Group PLC		438,801
	88,524	Marks & Spencer Group PLC		659,344
	26,443	Meggitt PLC		212,848
	16,104	Mondi PLC		267,165
	178,746	National Grid PLC		2,536,811
	2,812	Next PLC		309,583
	308,126	Old Mutual PLC		1,039,012
	41,321	Pearson PLC		773,778
	16,827	Pennon Group PLC		215,230
	5,975	Persimmon PLC(a)		132,369
	8,298	Petrofac Ltd.		203,588
	4,922	Provident Financial PLC		165,140
	87,606	Prudential PLC		2,009,590
	15,968	Reckitt Benckiser Group PLC		1,287,472
	21,631	Reed Elsevier PLC		318,498
	64,704	Rentokil Initial PLC		129,905
	107,558	Resolution Ltd.		541,764
	46,530	Rexam PLC		389,698
	54,109	Rio Tinto PLC		2,946,089
	59,132	Rolls-Royce Holdings PLC(a)		1,048,397
	7,792,636	Rolls-Royce Holdings PLC (Preference Shares), Class C(a)		13,158

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

22

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio (PXF) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		United Kingdom (continued)
	163,284	Royal Bank of Scotland Group PLC(a)	$	823,831
	481,516	RSA Insurance Group PLC		798,022
	24,562	SABMiller PLC		1,335,676
	33,618	Sage Group PLC (The)		242,049
	2,205	Schroders PLC		95,166
	965	Schroders PLC NVTG		31,758
	34,868	Segro PLC REIT		206,008
	32,077	Serco Group PLC		184,210
	12,025	Severn Trent PLC		374,624
	21,449	Smith & Nephew PLC		333,022
	13,590	Smiths Group PLC		306,348
	73,164	SSE PLC		1,884,002
	114,494	Standard Chartered PLC		2,477,510
	123,283	Standard Life PLC		795,624
	11,846	Subsea 7 SA		236,478
	24,930	Tate & Lyle PLC		295,090
	71,889	Taylor Wimpey PLC		127,579
	670,625	Tesco PLC		3,317,319
	121,399	Thomas Cook Group PLC(a)		358,115
	7,563	Travis Perkins PLC		217,737
	20,101	Tullow Oil PLC		298,686
	39,745	Unilever PLC		1,774,426
	33,980	United Utilities Group PLC		456,720
	2,465,320	Vodafone Group PLC		9,322,628
	4,966	Weir Group PLC (The)		225,566
	3,284	Whitbread PLC		226,244
	26,497	William Hill PLC		158,698
	226,154	William Morrison Supermarkets PLC		767,182
	11,670	Wolseley PLC		674,121
	40,681	WPP PLC		875,135
				128,783,164
		United States—0.3%
	7,500	Carnival PLC		299,633
	4,467	Catamaran Corp.(a)		169,489
	9,214	Celesio AG		319,264
	9,383	Imperial Oil Ltd.		457,586
	6,344	QIAGEN NV(a)		138,981
	23,145	Sands China Ltd.		168,971
	21,845	Transocean Ltd.(a)		931,164
	1,672	Valeant Pharmaceuticals International, Inc.(a)		223,304
				2,708,392
		Total Common Stocks and Other Equity Interests (Cost $700,880,628)		810,296,991
		Warrants—0.0%
		France—0.0%
	75,062	Peugeot SA, expiring 04/29/17(a)(b)		143,523
		Hong Kong—0.0%
	6,914	Sun Hung Kai Properties Ltd., expiring 04/22/16(a)		4,655
		Total Warrants (Cost $2,140)		148,178

Number of Shares			Value
		Rights—0.0%
		Australia—0.0%
	1,920	Bank of Queensland Ltd., expiring 05/09/14(a)	$	2,686
	9,982	Transurban Group, expiring 05/23/14(a)		3,902
				6,588
		South Korea—0.0%
	1,417	GS Engineering & Construction Corp., expiring 05/23/14(a)		11,931
		Total Rights (Cost $0)		18,519
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $700,882,768)—99.9%		810,463,688
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—4.7%
	37,755,422	Invesco Liquid Assets Portfolio—Institutional Class(c)(d) (Cost $37,755,422)		37,755,422
		Total Investments (Cost $738,638,190)—104.6%		848,219,110
		Other assets less liabilities—(4.6)%		(37,213,612	)
		Net Assets—100.0%	$	811,005,498

Investment Abbreviations:

CVA—Dutch Certificates

FDR—Fiduciary Depositary Receipt

NVTG—Non-voting Shares

REIT—Real Estate Investment Trust

RSP—Registered Savings Plan Shares

Notes to Schedule of Investments:

^(a)  Non-income producing security.

^(b)  All or a portion of this security was out on loan at April 30, 2014.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

^(d)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2H. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of April 30, 2014.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman	$	35,612,341	$	(35,612,341	)	$	—

* Amount does not include excess collateral received, if any.

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

23

Portfolio Composition

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio (PDN)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Industrials	21.6
Financials	18.9
Consumer Discretionary	18.1
Materials	12.8
Information Technology	8.5
Consumer Staples	7.0
Energy	5.6
Health Care	4.3
Utilities	1.9
Telecommunication Services	1.2
Money Market Fund Plus Other Assets Less Liabilities	0.1

Schedule of Investments

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio (PDN)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Australia—5.7%
	21,014	Abacus Property Group REIT	$	47,508
	29,837	Adelaide Brighton Ltd.		108,094
	20,489	ALS Ltd.		142,381
	78,230	Alumina Ltd.(a)		97,853
	5,586	Ansell Ltd.		93,629
	29,557	Ardent Leisure Group		73,121
	13,265	Aristocrat Leisure Ltd.		61,822
	80,376	Atlas Iron Ltd.		67,397
	81,213	Ausdrill Ltd.		69,981
	32,242	Australand Property Group REIT		127,860
	12,562	Automotive Holdings Group Ltd.		46,557
	23,877	Aveo Group		44,910
	47,517	AWE Ltd.(a)		68,902
	67,753	Beach Energy Ltd.		107,662
	148,174	Billabong International Ltd.(a)		65,213
	24,061	Bradken Ltd.		94,302
	19,224	BWP Trust REIT		44,530
	11,663	Cabcharge Australia Ltd.		41,929
	9,422	Cardno Ltd.		60,935
	3,749	carsales.Com Ltd.		37,689
	27,575	Challenger Ltd.		180,125
	13,134	Charter Hall Group REIT		51,111
	20,939	Charter Hall Retail REIT		74,888
	2,344	Cochlear Ltd.		127,465
	10,458	Contact Energy Ltd.		51,122

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Australia (continued)
	63,465	Cromwell Property Group REIT	$	58,215
	58,813	CSR Ltd.		198,900
	12,742	DuluxGroup Ltd.		67,649
	73,991	Echo Entertainment Group Ltd.		193,329
	146,262	Emeco Holdings Ltd.(a)		35,235
	49,287	Envestra Ltd.		53,202
	43,536	Evolution Mining Ltd.		34,489
	51,153	Federation Centres REIT		118,016
	1,757	Flight Centre Travel Group Ltd.		87,502
	144,893	Goodman Fielder Ltd.		90,619
	19,700	GrainCorp Ltd., Class A		161,722
	9,916	GUD Holdings Ltd.		49,154
	83,310	Gunns Ltd.(a)		0
	19,463	GWA Group Ltd.		48,510
	42,654	Harvey Norman Holdings Ltd.		129,629
	4,678	iiNET Ltd.		31,034
	7,999	Independence Group NL		32,092
	40,910	Investa Office Fund REIT		126,603
	4,007	Invocare Ltd.		39,503
	10,848	IOOF Holdings Ltd.		85,234
	4,516	Iress Ltd.		34,646
	7,132	JB Hi-Fi Ltd.		127,537
	51,238	Kagara Ltd.(a)		0
	43,665	Kingsgate Consolidated Ltd.		36,210
	13,124	Mermaid Marine Australia Ltd.		26,022

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

24

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio (PDN) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Australia (continued)
	6,076	Mineral Resources Ltd.	$	65,417
	6,233	Monadelphous Group Ltd.		100,950
	61,772	Mount Gibson Iron Ltd.		41,781
	8,409	Navitas Ltd.		57,266
	39,688	NRW Holdings Ltd.		41,186
	23,600	Nufarm Ltd.		90,746
	21,373	OceanaGold Corp.(a)		54,141
	22,210	Oil Search Ltd.		182,944
	79,508	Pacific Brands Ltd.		37,202
	124,692	Paladin Energy Ltd.(a)		50,257
	38,206	PanAust Ltd.		56,817
	1,774	Perpetual Ltd.		77,090
	4,850	Platinum Asset Management Ltd.		29,569
	8,604	Premier Investments Ltd.		79,083
	39,041	Primary Health Care Ltd.		169,653
	17,810	Qube Holdings Ltd.		36,634
	3,365	Ramsay Health Care Ltd.		139,710
	68,602	Resolute Mining Ltd.(a)		38,456
	13,062	SAI Global Ltd.		51,678
	4,497	Seek Ltd.		69,667
	8,123	Seven Group Holdings Ltd.		61,716
	72,504	Seven West Media Ltd.		125,288
	87,081	Sigma Pharmaceuticals Ltd.		58,497
	16,553	Skilled Group Ltd.		42,024
	45,243	Southern Cross Media Group Ltd.		53,867
	111,706	SP Ausnet		144,902
	41,251	Spark Infrastructure Group		67,460
	106,946	St. Barbara Ltd.(a)		21,305
	24,509	STW Communications Group Ltd.		32,019
	4,400	Super Retail Group Ltd.		41,420
	221,224	Ten Network Holdings Ltd.(a)		55,343
	74,191	Transfield Services Ltd.(a)		65,648
	98,532	Transpacific Industries Group Ltd.(a)		101,794
	5,665	Village Roadshow Ltd.		37,005
	112,977	Virgin Australia Airlines Services(a)		0
	88,116	Virgin Australia Holdings Ltd.(a)		30,208
	11,602	Western Areas Ltd.		44,397
	69,825	Whitehaven Coal Ltd.(a)		94,457
				6,399,635
		Austria—0.9%
	274	ams AG		41,204
	4,067	CA Immobilien Anlagen AG(a)		77,425
	3,695	Conwert Immobilien Invest SE		53,180
	1,907	EVN AG		26,574
	477	Flughafen Wien AG		46,753
	961	Lenzing AG		61,294
	289	Mayr-Melnhof Karton AG		36,749
	2,353	Oesterreichische Post AG		120,094
	2,265	RHI AG		79,267
	368	Schoeller-Bleckmann Oilfield Equipment AG		46,724
	5,998	Verbund AG		116,223
	3,430	Vienna Insurance Group AG Wiener Versicherung Gruppe		182,744
	6,530	Wienerberger AG		121,190
	1,893	Zumtobel AG		39,371
				1,048,792

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Belgium—1.3%
	1,064	Ackermans & van Haaren NV	$	137,497
	21,404	AGFA-Gevaert NV(a)		81,910
	575	Barco NV		42,797
	936	Befimmo Sicafi SA REIT		68,135
	4,290	Bekaert SA NV		174,464
	4,530	bpost SA		101,973
	382	Cie d’Entreprises CFE		42,066
	1,227	Cofinimmo REIT		150,293
	2,420	D’ieteren SA/NV		111,837
	1,288	Elia System Operator SA/NV		68,256
	2,487	Euronav SA(a)		30,035
	540	EVS Broadcast Equipment SA		34,142
	664	Gimv NV		34,405
	1,851	Imerys SA		162,383
	36,428	Nyrstar(a)		144,860
	402	Sofina SA		48,226
	2,205	Tessenderlo Chemie NV		67,460
				1,500,739
		Bermuda—0.1%
	8,869	Daily Mail & General Trust PLC NV, Class A		121,977
		British Virgin Islands—0.2%
	15,000	First Resources Ltd.		30,709
	32,500	Orient Overseas International Ltd.		155,104
				185,813
		Cambodia—0.0%
	32,000	NagaCorp Ltd.		29,058
		Canada—9.4%
	15,478	Advantage Oil & Gas Ltd.(a)		97,879
	6,522	Aecon Group, Inc.		109,408
	10,896	African Barrick Gold PLC		45,683
	9,552	AGF Management Ltd., Class B		106,274
	4,561	Alamos Gold, Inc.		42,599
	7,919	Algonquin Power & Utilities Corp.		56,861
	1,683	Allied Properties Real Estate Investment Trust REIT		52,463
	7,119	Argonaut Gold, Inc.(a)		26,272
	4,255	Artis Real Estate Investment Trust REIT		61,918
	16,406	Athabasca Oil Corp.(a)		121,686
	2,710	ATS Automation Tooling Systems, Inc.(a)		35,065
	20,511	AuRico Gold, Inc.		85,225
	12,224	B2Gold Corp.(a)		35,086
	8,954	Bankers Petroleum Ltd.(a)		48,709
	2,234	Bell Aliant, Inc.(b)		54,962
	31,719	Bellatrix Exploration Ltd.(a)		308,100
	4,154	Birchcliff Energy Ltd.(a)		48,109
	3,376	Black Diamond Group Ltd.		106,007
	13,055	BlackPearl Resources, Inc.(a)		36,639
	1,633	Boardwalk REIT		91,928
	704	Bonterra Energy Corp.(b)		36,674
	10,462	CAE, Inc.		137,943
	1,903	Calfrac Well Services Ltd.		65,806
	4,482	Calloway REIT(b)		109,370
	7,997	Canaccord Genuity Group, Inc.		69,007
	1,877	Canadian REIT		77,273

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

25

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio (PDN) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Canada (continued)
	3,767	Canadian Apartment Properties REIT	$	72,186
	2,995	Canadian Energy Services & Technology Corp.(b)		88,203
	3,200	Canadian Western Bank		108,295
	9,423	Canexus Corp.		41,386
	3,099	Canfor Corp.(a)		70,200
	27,053	Capstone Mining Corp.(a)		71,241
	1,069	CCL Industries, Inc., Class B		97,076
	16,755	Centerra Gold, Inc.		85,802
	5,243	Chartwell Retirement Residences		49,829
	3,820	Cineplex, Inc.		143,792
	674	Cogeco Cable, Inc.		36,849
	5,182	Cominar REIT		89,715
	192	Constellation Software, Inc		42,469
	5,228	Corus Entertainment, Inc., Class B		117,284
	9,583	Cott Corp.		77,715
	10,264	Crew Energy, Inc.(a)		116,159
	4,323	Davis + Henderson Corp.		125,028
	6,985	Detour Gold Corp.(a)		69,439
	1,088	Dollarama, Inc.		90,375
	3,680	Dominion Diamond Corp.(a)		46,174
	1,610	Dorel Industries, Inc., Class B		57,625
	5,942	Dundee Corp., Class A(a)		86,630
	5,929	Dundee Precious Metals, Inc.(a)		19,665
	3,553	Dundee Real Estate Investment Trust, Class A REIT		93,499
	1,981	Emera, Inc.		61,193
	2,748	Enerflex Ltd.		43,670
	5,995	Ensign Energy Services, Inc.		94,231
	9,617	Extendicare, Inc.		59,063
	5,741	First Capital Realty, Inc.		93,900
	3,270	First Majestic Silver Corp.(a)		30,988
	1,711	FirstService Corp.		84,346
	2,865	Franco-Nevada Corp.		137,918
	7,004	Gibson Energy, Inc.		186,739
	2,280	Gildan Activewear, Inc.		116,405
	1,175	Granite Real Estate Investment Trust REIT		45,203
	2,435	Great Canadian Gaming Corp.(a)		33,614
	7,604	H&R REIT		159,916
	2,320	Home Capital Group, Inc.		97,899
	13,875	HudBay Minerals, Inc.		118,212
	3,260	Hudson’s Bay Co.		51,479
	4,448	Innergex Renewable Energy, Inc.		42,962
	6,796	InnVest REIT		32,820
	3,355	Jean Coutu Group (PJC), Inc. (The), Class A		67,531
	2,877	Laurentian Bank of Canada		123,422
	12,511	Legacy Oil + Gas, Inc.(a)		97,243
	2,397	Linamar Corp.		119,845
	34,693	Lundin Mining Corp.(a)		177,029
	761	MacDonald Dettwiler & Associates Ltd.		58,941
	6,042	Major Drilling Group International, Inc.		47,457
	4,636	Manitoba Telecom Services, Inc.		127,955
	7,261	Maple Leaf Foods, Inc.		119,820
	8,494	Martinrea International, Inc.		85,447
	5,237	MEG Energy Corp.(a)		188,302
	2,672	Methanex Corp.		165,294

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Canada (continued)
	1,783	Morguard REIT	$	27,311
	4,890	Mullen Group Ltd.		132,426
	10,828	Nevsun Resources Ltd.		39,170
	24,751	New Gold, Inc.(a)		124,945
	1,902	North West Co., Inc. (The)		42,011
	4,316	Northland Power, Inc.		67,368
	5,480	Nuvista Energy Ltd.(a)		54,628
	2,296	Open Text Corp.		113,079
	15,835	Osisko Mining Corp.(a)		113,267
	8,430	Pan American Silver Corp.		109,076
	7,296	Parkland Fuel Corp.(b)		134,957
	1,775	Pason Systems, Inc.		49,233
	3,576	Peyto Exploration & Development Corp.(b)		131,674
	6,991	Progressive Waste Solutions Ltd.		169,958
	10,506	Reitmans (Canada) Ltd., Class A		63,661
	2,946	Ritchie Bros Auctioneers, Inc.(b)		73,526
	6,202	RONA, Inc.		62,447
	5,738	Russel Metals, Inc.		168,619
	4,950	Savanna Energy Services Corp.		40,098
	1,913	Secure Energy Services, Inc.		34,270
	10,529	SEMAFO, Inc.		39,336
	2,445	ShawCor Ltd.		108,766
	60,343	Sherritt International Corp.		255,129
	4,376	Silver Standard Resources, Inc.(a)		43,264
	6,305	Silver Wheaton Corp.		139,664
	12,817	Silvercorp Metals, Inc.		26,628
	1,145	Stantec, Inc.		67,775
	14,147	Superior Plus Corp.(b)		170,287
	15,208	Taseko Mines Ltd.(a)		32,842
	1,172	TMX Group Ltd.		61,662
	3,862	Toromont Industries Ltd.		95,402
	2,633	Tourmaline Oil Corp.(a)		136,154
	8,497	Transcontinental, Inc., Class A		123,648
	6,602	TransForce, Inc.		143,957
	9,457	Trican Well Service Ltd.		135,291
	1,736	Trilogy Energy Corp.		47,455
	9,277	Trinidad Drilling Ltd.		103,637
	1,973	West Fraser Timber Co. Ltd.		88,092
	2,017	Westshore Terminals Investment Corp.(b)		65,466
	4,219	Whitecap Resources, Inc.		55,590
	2,559	WSP Global, Inc.		87,465
				10,611,660
		China—1.0%
	14,344	AAC Technologies Holdings, Inc.		80,112
	13,502	China Gold International Resources Corp. Ltd.(a)		34,695
	31,954	China Mengniu Dairy Co. Ltd.		164,245
	341,612	China Rongsheng Heavy Industries Group Holdings Ltd.(a)		59,044
	152,017	China Travel International Investment Hong Kong Ltd.		30,588
	107,000	Honghua Group Ltd.		25,256
	23,796	Minth Group Ltd.		37,384
	1,664,200	Semiconductor Manufacturing International Corp.(a)		135,234
	247,106	Shougang Fushan Resources Group Ltd.		74,264

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

26

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio (PDN) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		China (continued)
	67,000	SITC International Holdings Co. Ltd.	$	29,556
	67,984	Sun Art Retail Group Ltd.		88,566
	60,644	Tingyi Cayman Islands Holding Corp.		168,567
	146,028	Yangzijiang Shipbuilding Holdings Ltd.		127,957
	41,582	Yingde Gases Group Co. Ltd.		41,996
				1,097,464
		Denmark—1.3%
	7,819	Alm. Brand A/S(a)		37,911
	1,639	Chr. Hansen Holding A/S		73,835
	1,080	Coloplast A/S, Class B		90,564
	721	D/S Norden A/S		28,797
	2,849	GN Store Nord A/S		68,697
	3,093	H. Lundbeck A/S		90,094
	1,399	Matas A/S(a)		38,334
	1,793	NKT Holding A/S		112,915
	3,404	Novozymes A/S, Class B		162,958
	1,898	Pandora A/S		127,602
	239	Rockwool International A/S, Class B		46,041
	243	Royal Unibrew A/S		37,784
	887	Schouw & Co. A/S		49,433
	1,436	Simcorp A/S		54,953
	2,730	Spar Nord Bank A/S		30,682
	4,897	Sydbank A/S(a)		130,452
	3,954	Topdanmark A/S(a)		115,541
	1,165	Tryg A/S		110,591
	452	William Demant Holding(a)		40,447
				1,447,631
		Egypt—0.1%
	57,369	Centamin PLC(a)		62,724
		Finland—1.6%
	5,916	Amer Sports Oyj		122,058
	3,113	Cargotec Corp., Class B		138,813
	7,351	Caverion Corp.		81,133
	10,049	Citycon Oyj		37,620
	1,957	Cramo Oyj		43,551
	6,176	Huhtamaki Oyj		162,104
	7,043	Kemira Oyj		107,420
	4,549	Konecranes Oyj		146,521
	802,862	Outokumpu Oyj(a)		244,906
	12,167	Outotec Oyj(b)		135,889
	4,136	Ramirent Oyj		46,222
	11,672	Rautaruukki Oyj(a)		145,007
	11,799	Sanoma Oyj		79,280
	17,837	Sponda Oyj		91,755
	1,911	Stockmann Oyj Abp, Class B		27,107
	3,580	Tieto Oyj		97,738
	2,744	Uponor Oyj		54,293
				1,761,417
		France—3.8%
	1,258	Alten Ltd.		64,163
	6,626	Altran Technologies SA(a)		72,092
	78,258	Beni Stabili SpA REIT		69,825
	575	bioMerieux		62,753
	197	Bollore SA		125,458

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		France (continued)
	3,980	Bourbon SA	$	131,008
	8,238	Bull(a)		43,634
	1,234	Dassault Systemes		151,646
	17,019	Derichebourg SA		66,073
	1,530	Eramet		199,392
	4,029	Etablissements Maurel et Prom		71,785
	110	Eurofins Scientific		30,504
	1,078	Gecina SA REIT		145,061
	979	Groupe FNAC SA(a)		46,831
	4,138	Groupe Steria SCA		116,529
	12,216	Havas SA		97,055
	117	Hermes International		41,068
	441	Iliad SA		118,931
	877	Ingenico(b)		76,426
	1,927	Ipsos		74,652
	2,234	JC Decaux SA		91,533
	1,930	Korian-Medica		72,467
	184	LISI		29,850
	2,674	Mercialys SA REIT		61,472
	6,607	Metropole Television SA		141,445
	5,531	Mobistar SA		107,711
	2,639	Nexity		118,189
	1,445	Orpea		104,947
	22,399	Parmalat SpA		77,767
	2,466	Plastic Omnium SA		83,771
	141	Puma SE(b)		41,603
	2,310	Rallye SA		117,387
	1,054	Remy Cointreau SA		92,640
	1,884	Rubis		133,957
	1,909	Saft Groupe SA		67,841
	1,873	SEB SA		172,493
	1,190	Societe BIC SA		157,706
	8,132	Societe Television Francaise 1(b)		138,124
	67,497	Solocal Group(a)(b)		154,420
	318	Sopra Group SA		36,707
	26,045	Technicolor SA(a)		194,214
	8,674	UbiSoft Entertainment SA(a)		161,522
	628	Vicat SA		54,466
	276	Vilmorin & Cie SA(b)		36,394
	125	Virbac SA		29,941
				4,283,453
		Georgia—0.0%
	1,237	Bank of Georgia Holdings PLC		54,370
		Germany—3.6%
	3,077	Aareal Bank AG(a)		139,405
	10,442	Air Berlin PLC(a)(b)		25,163
	3,112	Aixtron SE(a)		49,384
	4,575	Alstria Office AG REIT(a)		63,086
	1,860	Aurelius AG		69,014
	2,410	Axel Springer AG		147,030
	1,242	Bauer AG		32,263
	1,415	BayWa AG		80,107
	666	Bechtle AG		59,109
	2,329	Deutsche Euroshop AG		112,023
	1,992	Deutsche Wohnen AG(a)		41,706

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

27

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio (PDN) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Germany (continued)
	2,625	Deutsche Wohnen BR AG	$	56,215
	5,302	Deutz AG(a)		44,190
	1,507	Dialog Semiconductor PLC(a)		38,061
	2,424	DMG MORI SEIKI AG		76,059
	228	Draegerwerk AG & Co. KGAA		23,372
	425	Draegerwerk AG & Co. KGaA (Preference Shares)		50,207
	475	Duerr AG(b)		37,435
	1,171	ElringKlinger AG		47,110
	700	Euler Hermes SA		84,392
	473	Fielmann AG		63,911
	2,157	Fraport AG Frankfurt Airport Services Worldwide		159,080
	476	Fuchs Petrolub SE(b)		43,764
	977	Fuchs Petrolub SE (Preference Shares)		98,037
	6,344	GAGFAH SA(a)		100,102
	1,454	Gerresheimer AG(a)(b)		98,514
	838	Gerry Weber International AG		44,153
	1,561	Hamburger Hafen und Logistik AG		37,769
	21,219	Heidelberger Druckmaschinen AG(a)		66,963
	1,563	Indus Holding AG		73,251
	1,674	Jenoptik AG		27,865
	949	Jungheinrich AG (Preference Shares)		70,463
	1,421	KION Group AG(a)		67,128
	5,670	Kontron AG		39,474
	729	Krones AG		69,623
	45	KSB AG (Preference Shares)		28,702
	955	KUKA AG		48,795
	76	KWS Saat AG		27,124
	1,501	LEG Immobilien AG(a)		100,065
	1,861	MTU Aero Engines AG		175,026
	3,446	Nordex SE(a)		54,876
	1,042	Norma Group AG		54,411
	539	Pfeiffer Vacuum Technology AG		64,085
	81	Rational AG		25,831
	1,114	Rheinmetall AG(b)		73,871
	3,599	Rhoen Klinikum AG		116,097
	2,078	SGL Carbon SE(b)		69,150
	1,022	Sixt SE		41,272
	1,288	Sixt SE (Preference Shares)		41,611
	910	SMA Solar Technology AG		38,036
	2,743	Software AG		103,051
	3,119	Stada Arzneimittel AG		135,880
	4,445	TAG Immobilien AG		56,412
	1,451	Takkt AG(b)		29,373
	1,956	United Internet AG		83,912
	689	Vossloh AG		67,972
	1,175	Wacker Chemie AG(b)		137,732
	1,996	Wincor Nixdorf AG		130,296
	1,057	Wirecard AG		44,283
				4,083,291
		Gibraltar—0.0%
	22,891	Bwin.Party Digital Entertainment PLC		49,166
		Greece—0.8%
	71,431	Alpha Bank AE(a)		69,033

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Greece (continued)
	12,353	Ellaktor SA(a)	$	65,087
	1,923	Folli Follie Group(a)		66,658
	10,036	Hellenic Petroleum SA		85,858
	8,838	Intralot SA Integrated Lottery Systems & Services		25,612
	3,378	JUMBO SA(a)		54,566
	109,111	Marfin Investment Group Holdings SA(a)		75,341
	1,881	Metka SA		33,645
	6,265	Motor Oil (Hellas) Corinth Refineries SA(a)		78,876
	7,726	Mytilineos Holdings SA(a)		68,881
	17,429	National Bank of Greece SA(a)		67,665
	39,345	Piraeus Bank SA(a)		92,741
	2,765	Titan Cement Co. SA(a)		87,027
	16,568	TT Hellenic Postbank SA(a)		0
				870,990
		Hong Kong—3.0%
	12,208	ASM Pacific Technology Ltd.		135,735
	83,000	Brightoil Petroleum Holdings Ltd.(a)		25,587
	12,663	Cafe de Coral Holdings Ltd.		39,772
	124,497	Champion REIT		58,613
	12,108	Cheung Kong Infrastructure Holdings Ltd.		79,024
	12,108	Chow Sang Sang Holdings International Ltd.		29,704
	25,762	Chow Tai Fook Jewellery Group Ltd.		36,153
	18,960	Dah Sing Banking Group Ltd.		28,417
	11,329	Dah Sing Financial Holdings Ltd.		50,487
	166,000	First Pacific Co. Ltd.		183,925
	51,000	Fortune REIT		40,390
	15,688	Galaxy Entertainment Group Ltd.(a)		123,131
	86,695	Giordano International Ltd.		58,260
	10,848	Great Eagle Holdings Ltd.		38,829
	864,000	G-Resources Group Ltd.(a)		23,737
	19,000	Hang Lung Group Ltd.		103,052
	91,088	Hopewell Highway Infrastructure Ltd.		44,411
	30,677	Hopewell Holdings Ltd.		105,648
	147,340	Huabao International Holdings Ltd.		69,747
	110,436	Hutchison Telecommunications Hong Kong Holdings Ltd.		36,181
	33,952	Hysan Development Co. Ltd.		145,174
	60,587	Johnson Electric Holdings Ltd.		57,908
	69,070	Ju Teng International Holdings Ltd.		51,048
	62,804	K Wah International Holdings Ltd.		41,719
	25,000	Kerry Logistics Network Ltd.(a)		36,761
	14,582	Luk Fook Holdings International Ltd.		41,379
	71,388	Midland Holdings Ltd.		29,926
	75,632	New World China Land Ltd.		62,727
	35,804	NWS Holdings Ltd.		61,329
	197,736	Pacific Basin Shipping Ltd.		115,027
	20,426	Pacific Textile Holdings Ltd.		25,925
	312,000	PCCW Ltd.		166,607
	225,000	REXLot Holdings Ltd.		23,798
	31,110	Samsonite International SA		98,713
	61,908	Shangri-La Asia Ltd.		102,051
	256,562	Shui On Land Ltd.		67,840
	113,800	Shun Tak Holdings Ltd.		55,925
	46,004	SmarTone Telecommunications Holding Ltd.		47,411
	48,802	Techtronic Industries Co.		155,480

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

28

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio (PDN) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Hong Kong (continued)
	18,069	Television Broadcasts Ltd.	$	112,686
	57,847	Texwinca Holdings Ltd.		62,153
	51,804	Truly International Holdings Ltd.		34,880
	12,378	VTech Holdings Ltd.		170,833
	26,000	Wheelock & Co. Ltd.		106,980
	7,021	Wing Hang Bank Ltd.		113,019
	79,388	Xinyi Glass Holdings Co. Ltd.		62,463
	115,958	Yuexiu Real Estate Investment Trust REIT		54,742
				3,415,307
		India—0.0%
	32,456	Essar Energy PLC(a)		36,828
		Ireland—0.7%
	12,907	Aer Lingus Group PLC		27,202
	13,814	C&C Group PLC		82,170
	5,273	Glanbia PLC		78,633
	11,231	Grafton Group PLC		110,182
	19,025	Greencore Group PLC		83,878
	9,441	James Hardie Industries PLC CDI		120,016
	122,154	Kenmare Resources PLC(a)		25,783
	5,598	Kingspan Group PLC		105,290
	795	Paddy Power PLC		61,288
	9,878	UDG Healthcare PLC		59,829
				754,271
		Israel—1.1%
	16,038	Africa-Israel Investments Ltd.(a)		35,020
	4,088	Alony Hetz Properties & Investments Ltd. REIT		29,243
	1,642	Azrieli Group		55,551
	10,582	Cellcom Israel Ltd.		133,968
	1,742	Elbit Systems Ltd.		102,719
	2,528	First International Bank of Israel Ltd.		40,769
	5,854	Gazit-Globe Ltd.		75,177
	7,085	Harel Insurance Investments & Financial Services Ltd.		40,345
	93,650	Israel Discount Bank Ltd., Class A(a)		167,208
	20,348	Migdal Insurance & Financial Holding Ltd.		33,303
	7,598	Mizrahi Tefahot Bank Ltd.		101,503
	1,502	NICE Systems Ltd.		65,178
	274,722	Oil Refineries Ltd.(a)		76,353
	3,829	Ormat Industries Ltd.		28,518
	15,330	Partner Communications Co. Ltd.(a)		137,254
	406	Paz Oil Co. Ltd.		63,352
	13,210	Shikun & Binui Ltd.		34,379
				1,219,840
		Italy—3.0%
	3,864	ACEA SpA		55,398
	5,682	Ansaldo STS SpA		63,027
	6,483	Astaldi SpA		70,114
	1,775	ASTM SpA		30,050
	17,867	Autogrill SpA(a)		171,185
	1,232	Azimut Holding SpA		38,350
	126,283	Banca Carige SpA(a)		93,152
	1,565	Banca Generali SpA		49,171
	14,530	Banca Popolare di Sondrio Scarl		104,158

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Italy (continued)
	1,413	Brembo SpA	$	52,212
	970	Brunello Cucinelli SpA		27,840
	6,125	Buzzi Unicem SpA		108,451
	4,321	Cementir Holding SpA		41,100
	26,047	CIR-Compagnie Industriali Riunite SpA(a)		40,088
	5,135	Credito Emiliano SpA		52,545
	60,607	Credito Valtellinese Scarl(a)		144,371
	995	Danieli & C. Officine Meccaniche SpA		35,649
	3,249	Danieli S.p.A—Officine Meccaniche Danieli & C. RSP		77,845
	9,950	Davide Campari-Milano SpA		86,364
	1,958	De’Longhi SpA		42,460
	628	DiaSorin SpA		25,879
	7,417	ERG SpA		127,933
	3,782	Esprinet SpA		41,322
	7,817	Geox SpA		33,968
	4,420	Gtech SpA		129,557
	56,417	Hera SpA		165,993
	3,647	Indesit Co. SpA		51,933
	2,582	Interpump Group SpA		36,552
	57,466	Iren SpA		97,448
	5,428	Italcementi SpA		65,854
	8,088	Italcementi SpA RSP		62,801
	324	Italmobiliare SpA(a)		14,735
	822	Italmobiliare SpA RSP(a)		25,416
	2,385	MARR SpA		46,131
	17,136	Mediolanum SpA		153,727
	19,055	Piaggio & C. SpA		78,681
	34,244	RCS Mediagroup SpA(a)		78,344
	3,917	Recordati SpA		68,432
	2,364	Safilo Group SpA(a)		53,789
	980	Salvatore Ferragamo SpA		30,995
	29,464	Saras SpA(a)		51,067
	1,740	Societa’ Cattolica di Assicurazioni Scarl		42,944
	4,506	Societa Iniziative Autostradali e Servizi SpA		53,481
	20,230	Sorin SpA(a)		61,598
	488	Tod’s SpA		68,273
	44,177	UnipolSai SpA(a)		162,077
	1,414	UnipolSai SpA RSP, Class B(a)		5,235
	80,644	Vard Holdings Ltd.(a)		61,992
	4,713	World Duty Free SpA(a)		63,094
				3,342,781
		Japan—29.9%
	29,000	77 Bank Ltd. (The)		130,876
	1,008	ABC-Mart, Inc.		45,244
	6,444	Accordia Golf Co. Ltd.		82,640
	18,000	Achilles Corp.		23,789
	17,978	ACOM Co. Ltd.(a)		61,247
	2,354	Adastria Holdings Co. Ltd.		51,182
	6,508	ADEKA Corp.		71,610
	2,404	Aderans Co. Ltd.		34,171
	7,260	Advantest Corp.		80,027
	1,892	AEON Delight Co. Ltd.		41,711
	4,948	AEON Financial Service Co. Ltd.		124,536
	3,852	AEON Mall Co. Ltd.		91,784
	2,544	Aica Kogyo Co. Ltd.		53,171

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

29

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio (PDN) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Japan (continued)
	11,108	Aichi Steel Corp.	$	40,887
	18,108	Aiful Corp.(a)		61,867
	766	Ain Pharmaciez, Inc.		33,707
	11,482	Akebono Brake Industry Co. Ltd.		58,450
	2,566	Alpen Co. Ltd.		47,326
	3,678	Alpine Electronics, Inc.		43,963
	4,300	Amano Corp.		41,421
	3,378	Anritsu Corp.		37,798
	2,152	AOKI Holdings, Inc.		29,304
	6,634	Aoyama Trading Co. Ltd.		164,632
	51,530	Aozora Bank Ltd.		153,354
	1,974	ARC Land Sakamoto Co. Ltd.		39,132
	2,948	Arcs Co. Ltd.		59,104
	3,140	Asahi Diamond Industrial Co. Ltd.		42,481
	2,192	Asahi Holdings, Inc.		34,613
	4,704	Asatsu-DK, Inc.		106,329
	6,960	ASICS Corp.		135,521
	918	ASKUL Corp.		22,746
	7,934	Autobacs Seven Co. Ltd.		122,796
	1,608	Avex Group Holdings, Inc.		29,720
	6,582	Awa Bank Ltd. (The)		35,246
	6,592	Azbil Corp.		149,522
	926	Bank of Iwate Ltd. (The)		41,110
	8,108	Bank of Nagoya Ltd. (The)		30,479
	780	Bank of Okinawa Ltd. (The)		32,720
	4,122	Bank of The Ryukyus Ltd.		54,556
	13,272	BIC Camera, Inc.		96,795
	1,692	Calbee, Inc.		41,476
	28,114	Calsonic Kansei Corp.		138,437
	1,644	Canon Electronics, Inc.		27,810
	8,392	Canon Marketing Japan, Inc.		135,225
	3,140	Capcom Co. Ltd.		54,685
	1,992	Cawachi Ltd.		36,330
	18,114	Central Glass Co. Ltd.		59,405
	2,666	Century Tokyo Leasing Corp.		77,096
	2,404	Chiyoda Co. Ltd.		57,141
	9,108	Chiyoda Corp.		122,064
	2,500	Chudenko Corp.		35,732
	12,000	Chuetsu Pulp & Paper Co. Ltd.		22,555
	14,000	Chugoku Bank Ltd. (The)		185,570
	5,630	Chugoku Marine Paints Ltd.		35,880
	20,000	Citizen Holdings Co. Ltd.		146,843
	2,900	CKD Corp.		26,402
	3,056	Coca-Cola East Japan Co. Ltd.		68,749
	8,140	Coca-Cola West Co. Ltd.		141,683
	2,272	Cocokara Fine, Inc.		64,434
	3,318	Colowide Co. Ltd.		33,294
	9,448	COMSYS Holdings Corp.		154,923
	200	Cosmos Pharmaceutical Corp.		21,400
	3,952	Daibiru Corp.		39,385
	3,000	Daido Metal Co. Ltd.		31,953
	36,154	Daiei, Inc. (The)(a)		101,578
	4,522	Daifuku Co. Ltd.		52,104
	9,266	Daihen Corp.		35,105
	23,688	Daikyo, Inc.		46,147
	15,200	Dainippon Screen Manufacturing Co. Ltd.		66,365

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Japan (continued)
	7,786	Dainippon Sumitomo Pharma Co. Ltd.	$	118,219
	9,948	Daio Paper Corp.		104,398
	12,004	Daishi Bank Ltd. (The)		43,362
	55,692	Daiwabo Holdings Co. Ltd.		95,955
	9,740	DCM Holdings Co. Ltd.		65,887
	6,556	DeNA Co. Ltd.		110,390
	1,008	DISCO Corp.		61,279
	5,008	DMG Mori Seiki Co. Ltd.		62,508
	2,696	Don Quijote Co. Ltd.		141,992
	2,544	Doutor Nichires Holdings Co. Ltd.		45,575
	18,688	DOWA Holdings Co. Ltd.		156,968
	1,400	DTS Corp.		23,176
	4,918	Duskin Co. Ltd.		90,898
	778	DyDo Drinco, Inc.		31,646
	1,226	Earth Chemical Co. Ltd.		43,867
	26,400	EDION Corp.		153,774
	3,318	EXEDY Corp.		88,610
	7,792	Ezaki Glico Co. Ltd.		102,520
	2,056	F.C.C. Co. Ltd.		35,142
	3,752	Fancl Corp.		41,579
	14,300	FIDEA Holdings Co. Ltd.		26,738
	2,178	Foster Electric Co. Ltd.		26,396
	2,100	FP Corp.		65,374
	5,600	Fuji Machine Manufacturing Co. Ltd.		49,504
	4,948	Fuji Media Holdings, Inc.		83,363
	5,530	Fuji Oil Co. Ltd.		74,816
	926	Fuji Seal International, Inc.		30,141
	3,774	Fuji Soft, Inc.		78,916
	1,300	Fujimori Kogyo Co. Ltd.		36,576
	3,074	Fujitec Co. Ltd.		35,540
	3,474	Fujitsu General Ltd.		40,062
	9,948	Fukuyama Transporting Co. Ltd.		58,237
	4,800	Funai Electric Co. Ltd.		51,501
	22,062	Furukawa Co. Ltd.		39,956
	3,152	Futaba Corp.		49,494
	7,334	Futaba Industrial Co. Ltd.(a)		32,883
	2,092	Fuyo General Lease Co. Ltd.		71,986
	6,078	Geo Holdings Corp.		55,633
	4,548	Glory Ltd.		117,362
	27,114	Godo Steel Ltd.		38,222
	1,172	Goldcrest Co. Ltd.		24,450
	6,656	Gree, Inc.		64,898
	27,270	GS Yuasa Corp.		154,303
	3,400	Gulliver International Co. Ltd.		27,759
	20,270	Gunze Ltd.		55,363
	18,740	H2O Retailing Corp.		141,444
	26,952	Hachijuni Bank Ltd. (The)		147,227
	2,730	Hamamatsu Photonics KK		122,937
	31,114	Hanwa Co. Ltd.		121,532
	16,374	Hazama Ando Corp.		72,132
	3,296	Heiwa Corp.		54,885
	3,622	Heiwa Real Estate Co. Ltd.		56,839
	3,092	Heiwado Co. Ltd.		43,800
	11,108	Higashi-Nippon Bank Ltd. (The)		27,838
	9,056	Higo Bank Ltd. (The)		46,543
	846	Hikari Tsushin, Inc.		71,225

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

30

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio (PDN) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Japan (continued)
	974	Hirose Electric Co. Ltd.	$	137,399
	42,000	Hiroshima Bank Ltd. (The)		172,687
	2,288	HIS Co. Ltd.		63,455
	3,318	Hisamitsu Pharmaceutical Co., Inc.		139,021
	3,252	Hitachi Capital Corp.		80,098
	5,914	Hitachi High-Technologies Corp.		135,243
	5,466	Hitachi Koki Co. Ltd.		40,774
	2,474	Hitachi Kokusai Electric, Inc.		28,240
	8,740	Hitachi Metals Ltd.		118,587
	5,396	Hitachi Transport System Ltd.		82,723
	20,666	Hitachi Zosen Corp.		101,155
	566	Hogy Medical Co. Ltd.		29,145
	8,640	Hokkoku Bank Ltd. (The)		28,927
	15,478	Hokuetsu Kishu Paper Co. Ltd.		73,640
	1,792	Hokuto Corp.		35,998
	1,256	Horiba Ltd.		43,342
	2,118	Hoshizaki Electric Co. Ltd.		85,736
	13,286	Hosiden Corp.		60,350
	7,196	House Foods Group, Inc.		119,757
	3,500	Hulic Co. Ltd.		42,110
	12,056	Hyakugo Bank Ltd. (The)		46,737
	10,422	Hyakujushi Bank Ltd. (The)		34,893
	2,444	IBJ Leasing Co. Ltd.		55,938
	10,948	Iino Kaiun Kaisha Ltd.		53,802
	3,074	Inaba Denki Sangyo Co. Ltd.		94,191
	5,878	Inabata & Co. Ltd.		55,299
	1,600	Internet Initiative Japan, Inc.		37,106
	14,108	Iseki & Co. Ltd.		36,461
	48,430	Ishihara Sangyo Kaisha Ltd.(a)		45,988
	7,070	IT Holdings Corp.		109,493
	5,626	ITO EN Ltd.		120,341
	1,932	ITOCHU Techno-Solutions Corp.		80,476
	11,582	Itoham Foods, Inc.		52,496
	21,688	Iwatani Corp.		127,177
	16,934	Iyo Bank Ltd. (The)		152,348
	3,518	Izumi Co. Ltd.		102,940
	2,400	J Trust Co. Ltd.		25,844
	16,582	Jaccs Co. Ltd.		73,535
	608	JAFCO Co. Ltd.		23,243
	2,678	Japan Airport Terminal Co. Ltd.		61,687
	2,474	Japan Aviation Electronics Industry Ltd.		42,142
	4,100	Japan Exchange Group, Inc.		80,997
	3,522	Japan Petroleum Exploration Co. Ltd.		131,019
	8,860	Japan Securities Finance Co. Ltd.		48,745
	14,108	J-Oil Mills, Inc.		37,704
	17,640	Juroku Bank Ltd. (The)		61,649
	54,518	JVC KENWOOD Holdings, Inc.(a)		115,280
	1,856	Kadokawa Corp.		61,049
	2,500	Kaga Electronics Co. Ltd.		29,883
	4,870	Kagome Co. Ltd.		82,430
	6,882	Kagoshima Bank Ltd. (The)		42,983
	4,474	Kaken Pharmaceutical Co. Ltd.		77,173
	900	Kameda Seika Co. Ltd.		25,604
	1,118	Kanamoto Co. Ltd.		35,132
	17,300	Kandenko Co. Ltd.		92,809
	13,056	Kansai Paint Co. Ltd.		182,899

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Japan (continued)
	34,952	Kansai Urban Banking Corp.	$	43,797
	1,574	Kato Sangyo Co. Ltd.		32,759
	22,056	Keihan Electric Railway Co. Ltd.		90,901
	4,730	Keihin Corp.		68,531
	19,214	Keisei Electric Railway Co. Ltd.		167,217
	14,688	Keiyo Bank Ltd. (The)		64,705
	9,330	Kenedix, Inc.(a)		32,150
	10,422	Kikkoman Corp.		211,501
	896	Kintetsu World Express, Inc.		35,524
	2,012	Kissei Pharmaceutical Co. Ltd.		47,134
	8,522	Kitz Corp.		40,295
	5,512	Kiyo Bank Ltd. (The)		64,914
	1,406	Kobayashi Pharmaceutical Co. Ltd.		85,337
	6,896	Kohnan Shoji Co. Ltd.		69,939
	6,970	Kokuyo Co. Ltd.		53,358
	4,074	Komeri Co. Ltd.		110,195
	3,566	Komori Corp.		45,347
	6,800	Konami Corp.		155,105
	1,656	Konishi Co. Ltd.		29,635
	2,200	Konoike Transport Co. Ltd.		34,265
	1,948	Kose Corp.		64,743
	26,484	Kumagai Gumi Co. Ltd.(a)		68,446
	17,952	Kurabo Industries Ltd.		30,579
	11,422	KUREHA Corp.		54,007
	3,370	Kuroda Electric Co. Ltd.		54,138
	25,640	KYB Co. Ltd.		104,417
	2,644	Kyoei Steel Ltd.		45,840
	2,196	Kyokuto Kaihatsu Kogyo Co. Ltd.		28,850
	12,000	Kyokuyo Co. Ltd.		31,013
	3,922	KYORIN Holdings, Inc.		75,714
	5,926	Kyowa Exeo Corp.		76,693
	8,000	Kyudenko Corp.		68,997
	29,400	Leopalace21 Corp.(a)		151,965
	5,212	Lintec Corp.		96,893
	18,796	Lion Corp.		103,042
	1,320	Mabuchi Motor Co. Ltd.		90,326
	1,000	Macnica, Inc.		29,613
	13,530	Maeda Corp.		100,664
	4,574	Maeda Road Construction Co. Ltd.		70,882
	5,630	Makino Milling Machine Co. Ltd.		41,887
	1,226	Mandom Corp.		43,027
	4,118	Maruichi Steel Tube Ltd.		104,452
	3,322	Matsui Securities Co. Ltd.		30,537
	3,640	Matsumotokiyoshi Holdings Co. Ltd.		107,436
	7,040	Megmilk Snow Brand Co. Ltd.		93,453
	11,582	Meidensha Corp.		47,961
	1,326	Meitec Corp.		35,295
	18,852	Minebea Co. Ltd.		152,625
	1,892	Ministop Co. Ltd.		28,690
	3,566	Miraca Holdings, Inc.		154,649
	6,992	Mirait Holdings Corp.		61,467
	4,640	Misawa Homes Co. Ltd.		56,825
	3,304	MISUMI Group, Inc.		80,409
	3,300	Mitsuba Corp.		48,652
	10,948	Mitsubishi Logistics Corp.		157,120
	56,644	Mitsubishi Paper Mills Ltd.(a)		48,798

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

31

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio (PDN) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Japan (continued)
	1,744	Mitsubishi Shokuhin Co. Ltd.	$	39,080
	17,530	Mitsubishi Steel Manufacturing Co. Ltd.		35,009
	32,400	Mitsubishi UFJ Lease & Finance Co. Ltd.		159,542
	22,582	Mitsui Matsushima Co. Ltd.		32,718
	7,948	Mitsui Sugar Co. Ltd.		32,990
	10,948	Mitsui-Soko Co. Ltd.		43,406
	14,256	Mitsumi Electric Co. Ltd.		91,411
	1,692	Miura Co. Ltd.		48,151
	8,000	Mizuno Corp.		43,622
	1,016	Mochida Pharmaceutical Co. Ltd.		71,612
	18,740	Morinaga & Co. Ltd.		41,278
	22,848	Morinaga Milk Industry Co. Ltd.		85,219
	1,774	MOS Food Services, Inc.		35,341
	3,100	Moshi Moshi Hotline, Inc.		31,379
	2,912	Musashi Seimitsu Industry Co. Ltd.		64,226
	2,192	Musashino Bank Ltd. (The)		70,170
	4,966	Nabtesco Corp.		106,904
	9,266	Nachi-Fujikoshi Corp.		57,329
	6,966	Nagase & Co. Ltd.		85,379
	4,192	Namura Shipbuilding Co. Ltd.		31,517
	18,000	Nankai Electric Railway Co. Ltd.		69,780
	1,966	NEC Networks & System Integration Corp.		41,610
	6,918	NET One Systems Co. Ltd.		56,279
	6,948	Nichias Corp.		47,068
	6,218	Nichicon Corp.		46,140
	4,440	Nichii Gakkan Co.		39,075
	2,570	Nichi-iko Pharmaceutical Co. Ltd.		39,902
	2,804	Nifco, Inc.		78,232
	1,344	Nihon Kohden Corp.		55,063
	1,718	Nihon Parkerizing Co. Ltd.		37,488
	4,534	Nihon Unisys Ltd.		45,984
	2,818	Nikkiso Co. Ltd.		31,559
	5,734	Nippo Corp.		87,512
	14,422	Nippon Carbon Co. Ltd.		25,413
	15,582	Nippon Chemi-Con Corp.(a)		49,728
	29,626	Nippon Coke & Engineering Co. Ltd.		34,513
	15,266	Nippon Denko Co. Ltd.		42,443
	4,274	Nippon Densetsu Kogyo Co. Ltd.		63,430
	9,582	Nippon Flour Mills Co. Ltd.		53,468
	10,740	Nippon Kayaku Co. Ltd.		127,955
	6,792	Nippon Koei Co. Ltd.		32,580
	2,892	Nippon Konpo Unyu Soko Co. Ltd.		48,837
	75,300	Nippon Light Metal Holdings Co. Ltd.		106,150
	8,740	Nippon Paint Co. Ltd.		135,185
	6,792	Nippon Road Co. Ltd. (The)		34,575
	2,156	Nippon Seiki Co. Ltd.		37,675
	2,318	Nippon Shinyaku Co. Ltd.		40,823
	18,530	Nippon Shokubai Co. Ltd.		213,508
	3,204	Nippon Signal Co. Ltd. (The)		26,567
	12,422	Nippon Soda Co. Ltd.		69,072
	33,000	Nippon Steel & Sumikin Texeng Co. Ltd.		116,300
	59,000	Nippon Suisan Kaisha Ltd.(a)		135,732
	4,474	Nippon Synthetic Chemical Industry Co. Ltd. (The)		29,783
	4,170	Nippon Television Holdings, Inc.		62,172
	5,792	Nippon Thompson Co. Ltd.		26,309

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Japan (continued)
	11,822	Nippon Yakin Kogyo Co. Ltd.(a)	$	32,752
	12,692	Nipro Corp.		109,836
	25,958	Nishimatsu Construction Co. Ltd.		93,261
	59,800	Nishi-Nippon City Bank Ltd. (The)		135,816
	13,896	Nishi-Nippon Railroad Co. Ltd.		53,462
	900	Nishio Rent All Co. Ltd.		33,084
	9,866	Nissan Chemical Industries Ltd.		147,290
	4,830	Nissan Shatai Co. Ltd.		73,573
	3,444	Nissha Printing Co. Ltd.		44,807
	19,422	Nisshin Oillio Group Ltd. (The)		65,025
	14,500	Nisshin Steel Holdings Co. Ltd.		148,762
	20,848	Nisshinbo Holdings, Inc.		178,581
	2,822	Nissin Kogyo Co. Ltd.		52,103
	3,568	Nitori Holdings Co. Ltd.		163,642
	7,630	Nittetsu Mining Co. Ltd.		28,458
	11,266	Nitto Boseki Co. Ltd.		46,983
	1,666	Nitto Kogyo Corp.		34,511
	9,622	NOF Corp.		66,690
	4,700	Nomura Research Institute Ltd.		135,962
	11,108	Noritake Co. Ltd.		27,186
	3,292	Noritz Corp.		58,428
	29,500	North Pacific Bank Ltd.		119,559
	1,156	NS Solutions Corp.		28,937
	2,674	NSD Co. Ltd.		33,062
	7,260	NTT Urban Development Corp.		63,823
	2,192	OBIC Co. Ltd.		65,771
	26,270	Ogaki Kyoritsu Bank Ltd. (The)		70,979
	12,108	Oita Bank Ltd. (The)		44,094
	2,552	Okabe Co. Ltd.		35,051
	4,630	Okamura Corp.		39,524
	3,474	Okasan Securities Group, Inc.		24,214
	64,714	Oki Electric Industry Co. Ltd.		126,704
	1,944	Okinawa Electric Power Co., Inc. (The)		63,468
	9,266	OKUMA Corp.		79,462
	11,478	Okumura Corp.		52,474
	18,374	Onward Holdings Co. Ltd.		123,573
	61,888	Orient Corp.(a)		130,259
	1,856	OSAKA Titanium Technologies Co. Ltd.		38,083
	2,456	OSG Corp.		39,623
	1,156	Otsuka Corp.		136,819
	19,740	Pacific Metals Co. Ltd.(a)		91,791
	9,108	PanaHome Corp.		60,542
	800	Paramount Bed Holdings Co. Ltd.		24,121
	3,722	Park24 Co. Ltd.		67,991
	22,718	Penta-Ocean Construction Co. Ltd.		74,281
	800	Pilot Corp.		33,558
	75,518	Pioneer Corp.(a)		163,382
	1,100	Pola Orbis Holdings, Inc.		43,020
	10,792	Press Kogyo Co. Ltd.		39,513
	15,796	Prima Meat Packers Ltd.		34,793
	578	Relo Holdings, Inc.		31,687
	3,170	Resorttrust, Inc.		49,683
	1,326	Ricoh Leasing Co. Ltd.		34,620
	6,792	Riken Corp.		27,793
	1,474	Rinnai Corp.		122,653
	5,062	Rohto Pharmaceutical Co. Ltd.		89,347

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

32

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio (PDN) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Japan (continued)
	5,512	Round One Corp.	$	39,553
	15,848	Ryobi Ltd.		46,854
	1,104	Ryohin Keikaku Co. Ltd.		124,072
	3,026	Ryosan Co. Ltd.		63,956
	4,156	Ryoyo Electro Corp.		49,880
	3,326	Saizeriya Co. Ltd.		38,160
	1,292	San-A Co. Ltd.		37,274
	10,582	Sanden Corp.		50,346
	1,674	Sangetsu Co. Ltd.		43,116
	9,056	San-in Godo Bank Ltd. (The)		59,753
	8,582	Sanken Electric Co. Ltd.(a)		59,650
	4,792	Sanki Engineering Co. Ltd.		29,460
	2,420	Sankyo Tateyama, Inc.		47,855
	24,848	Sankyu, Inc.		94,624
	1,408	Sanrio Co. Ltd.		44,590
	4,070	Sanshin Electronics Co. Ltd.		25,540
	10,582	Sanwa Holdings Corp.		64,642
	6,948	Sanyo Chemical Industries Ltd.		42,511
	11,108	Sanyo Shokai Ltd.		30,339
	13,582	Sanyo Special Steel Co. Ltd.		52,919
	19,952	Sasebo Heavy Industries Co. Ltd.(a)		22,267
	1,226	Sawai Pharmaceutical Co. Ltd.		75,972
	1,604	SCSK Corp.		42,334
	15,056	Seiko Holdings Corp.		54,977
	3,848	Seiren Co. Ltd.		32,321
	9,948	Senko Co. Ltd.		45,479
	17,696	Senshu Ikeda Holdings, Inc.		81,247
	32,270	Seven Bank Ltd.		122,256
	9,582	Shiga Bank Ltd. (The)		52,342
	2,466	Shima Seiki Manufacturing Ltd.		41,136
	19,322	Shimadzu Corp.		165,131
	8,008	Shinko Electric Industries Co. Ltd.		52,838
	4,586	Shinko Plantech Co. Ltd.		34,524
	4,474	Shinmaywa Industries Ltd.		39,506
	1,226	Ship Healthcare Holdings, Inc.		41,767
	5,400	Shizuoka Gas Co. Ltd.		32,511
	3,318	Shochiku Co. Ltd.		27,479
	4,448	Showa Corp.		48,856
	4,452	Sintokogio Ltd.		31,990
	21,908	SKY Perfect JSAT Holdings, Inc.		117,743
	7,278	Sodick Co. Ltd.		27,003
	5,708	Sohgo Security Services Co. Ltd.		120,865
	27,162	Sotetsu Holdings, Inc.		97,055
	3,444	Square Enix Holdings Co. Ltd.		55,225
	2,318	Sugi Holdings Co. Ltd.		104,384
	11,018	Sumco Corp.		84,563
	24,848	Sumitomo Bakelite Co. Ltd.		94,624
	89,492	Sumitomo Mitsui Construction Co. Ltd.(a)		91,989
	36,852	Sumitomo Osaka Cement Co. Ltd.		146,470
	14,266	Sumitomo Warehouse Co. Ltd. (The)		69,130
	1,992	Sundrug Co. Ltd.		81,513
	8,108	Suruga Bank Ltd.		139,062
	31,536	SWCC Showa Holdings Co. Ltd.(a)		30,255
	3,348	Sysmex Corp.		106,028
	3,656	Tachi-S Co. Ltd.		57,336
	3,630	Tadano Ltd.		51,385

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Japan (continued)
	2,666	Taikisha Ltd.	$	57,652
	9,748	Taiyo Yuden Co. Ltd.		120,430
	1,700	Takaoka Toko Co. Ltd.		24,248
	13,422	Takara Holdings, Inc.		102,751
	4,630	Takara Standard Co. Ltd.		33,042
	4,000	Takasago International Corp.		19,579
	5,678	Takasago Thermal Engineering Co. Ltd.		55,474
	2,748	Takata Corp.		64,752
	3,000	Takuma Co. Ltd.		24,258
	1,326	Tamron Co. Ltd.		33,192
	10,688	Tekken Corp.		31,180
	2,012	Temp Holdings Co. Ltd.		51,270
	5,152	T-Gaia Corp.		45,392
	6,044	THK Co. Ltd.		127,980
	22,114	Toa Corp.		41,565
	19,056	Toagosei Co. Ltd.		79,843
	28,644	Toda Corp.		100,387
	6,630	Toei Co. Ltd.		37,125
	7,296	Toho Co. Ltd.		140,635
	27,000	Toho Gas Co. Ltd.		132,423
	7,400	Toho Holdings Co. Ltd.		149,376
	12,266	Toho Zinc Co. Ltd.		39,025
	31,270	Tokai Carbon Co. Ltd.		100,407
	5,960	Tokai Rika Co. Ltd.		103,622
	5,748	Tokai Rubber Industries Ltd.		59,478
	5,574	Tokai Tokyo Financial Holdings, Inc.		37,433
	818	Token Corp.		36,275
	4,522	Tokyo Broadcasting System Holdings, Inc.		49,138
	6,948	Tokyo Dome Corp.		31,084
	2,512	Tokyo Ohka Kogyo Co. Ltd.		57,421
	13,426	Tokyo Steel Manufacturing Co. Ltd.		65,586
	20,000	Tokyo Tatemono Co. Ltd.		159,373
	9,388	Tokyu Construction Co. Ltd.		41,449
	1,700	Tomen Electronics Corp.		27,326
	6,692	Tomony Holdings, Inc.		28,432
	13,196	Tomy Co. Ltd.		62,654
	2,400	Topcon Corp.		41,891
	4,118	Toppan Forms Co. Ltd.		37,894
	2,100	Topre Corp.		21,236
	30,426	Topy Industries Ltd.		51,529
	2,770	Toray Chemical Korea, Inc.(a)		38,871
	5,630	Toshiba Machine Co. Ltd.		25,243
	2,156	Toshiba Plant Systems & Services Corp.		31,723
	12,582	Toshiba TEC Corp.		81,909
	1,666	Totetsu Kogyo Co. Ltd.		33,875
	28,952	Towa Bank Ltd. (The)		27,492
	9,772	Toyo Construction Co. Ltd.		34,630
	10,108	Toyo Engineering Corp.		44,628
	18,300	Toyo Ink SC Holdings Co. Ltd.		74,705
	11,200	Toyo Tire & Rubber Co. Ltd.		83,438
	12,348	Toyota Boshoku Corp.		127,530
	1,800	TPR Co. Ltd.		26,573
	1,926	transcosmos, Inc.		35,861
	4,596	Trend Micro, Inc.		148,701
	1,256	Trusco Nakayama Corp.		28,341
	2,574	TS Tech Co. Ltd.		68,690

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

33

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio (PDN) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Japan (continued)
	9,856	TSI Holdings Co. Ltd.	$	66,479
	7,108	Tsubakimoto Chain Co.		50,657
	4,456	Tsumura & Co.		105,827
	566	Tsuruha Holdings, Inc.		56,960
	1,904	TV Asahi Corp.		33,196
	14,422	UACJ Corp.		57,039
	1,772	UKC Holdings Corp.		28,501
	4,248	Ulvac, Inc.(a)		80,510
	3,726	Unipres Corp.		71,967
	1,244	United Arrows Ltd.		48,104
	108,492	Unitika Ltd.(a)		61,601
	10,082	Ushio, Inc.		131,762
	7,486	USS Co. Ltd.		109,120
	6,044	Valor Co. Ltd.		78,338
	11,582	Wacoal Holdings Corp.		114,176
	5,100	Wacom Co. Ltd.		33,401
	2,474	Wakita & Co. Ltd.		27,973
	1,766	Warabeya Nichiyo Co. Ltd.		32,951
	2,000	WATAMI Co. Ltd.		29,134
	752	Welcia Holdings Co. Ltd.		45,422
	3,012	Xebio Co. Ltd.		55,611
	22,652	Yahoo! Japan Corp.		98,458
	3,140	Yakult Honsha Co., Ltd.		169,680
	3,074	Yamato Kogyo Co. Ltd.		88,594
	5,078	Yamazen Corp.		32,809
	700	Yaoko Co. Ltd.		31,728
	10,214	Yaskawa Electric Corp.		115,289
	12,108	Yodogawa Steel Works Ltd.		47,650
	2,318	Yokogawa Bridge Holdings Corp.		30,702
	11,326	Yokogawa Electric Corp.		154,672
	3,600	Yokohama Reito Co. Ltd.		29,145
	1,492	Yorozu Corp.		27,854
	2,904	Yoshinoya Holdings Co. Ltd.		36,815
	33,208	Yuasa Trading Co. Ltd.		63,068
	6,030	Zensho Co. Ltd.		61,038
	14,896	Zeon Corp.		138,679
				33,763,795
		Jersey Island—0.2%
	5,256	Atrium European Real Estate Ltd.(a)		30,244
	7,846	Heritage Oil PLC(a)		41,759
	3,173	Kentz Corp. Ltd.		38,683
	1,922	Randgold Resources Ltd.		155,130
				265,816
		Luxembourg—0.1%
	1,333	Ipsen SA		59,107
	13,806	L’occitane International SA		33,906
				93,013
		Macau—0.1%
	56,484	SJM Holdings Ltd.		156,640
		Malaysia—0.2%
	144,336	Genting Singapore PLC		152,344
	214,226	Parkson Retail Group Ltd.		62,725
				215,069

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Mexico—0.1%
	6,385	Fresnillo PLC	$	91,804
		Netherlands—1.7%
	4,310	Aalberts Industries NV		143,335
	5,208	AMG Advanced Metallurgical Group NV(a)		52,324
	2,992	Arcadis NV		106,120
	2,380	ASM International NV(a)		103,933
	1,055	Axfood AB		55,964
	5,281	BinckBank NV		59,619
	438	Brunel International NV		29,670
	7,643	Corbion NV		176,871
	2,854	Eurocommercial Properties NV		130,944
	1,833	Gemalto NV(b)		205,103
	2,170	Koninklijke Ten Cate NV		64,554
	2,509	Koninklijke Vopak NV		124,839
	9,801	Nieuwe Steen Investments Funds NV REIT		59,305
	9,412	Prada SpA		75,147
	2,216	TKH Group NV CVA		77,122
	10,883	TomTom NV(a)		77,305
	6,783	USG People NV		116,857
	1,764	Vastned Retail NV REIT		90,668
	1,716	Wereldhave NV REIT		144,115
				1,893,795
		New Zealand—0.8%
	57,277	Air New Zealand Ltd.		103,334
	31,405	Auckland International Airport Ltd.		107,111
	53,100	Chorus Ltd.		80,744
	18,150	Fisher & Paykel Healthcare Corp. Ltd.		63,774
	17,894	Infratil Ltd.		35,357
	29,757	Kiwi Income Property Trust REIT		29,399
	26,081	Mighty River Power Ltd.		52,094
	5,756	Ryman Healthcare Ltd.		42,774
	22,854	Sky Network Television Ltd.		131,351
	34,509	SKYCITY Entertainment Group Ltd.		125,405
	7,985	Trade Me Ltd.		27,097
	16,759	Z Energy Ltd.		56,295
				854,735
		Norway—1.0%
	1,337	Aker ASA, Class A		45,120
	33,575	Archer Ltd.(a)		45,548
	3,526	Atea ASA		40,404
	6,259	Austevoll Seafood ASA		40,353
	24,457	BW Offshore Ltd.		31,864
	6,233	Cermaq ASA		73,516
	14,895	DNO International ASA(a)		51,541
	2,330	Fred Olsen Energy ASA		73,975
	30,386	Golden Ocean Group Ltd.		53,618
	18,465	Kvaerner ASA		36,892
	1,151	Leroy Seafood Group ASA		40,582
	5,061	Nordic Semiconductor ASA(a)		28,296
	5,619	Odfjell Drilling Ltd.		31,698
	15,444	ProSafe SE		135,612
	1,827	Schibsted ASA		104,722
	4,546	Sparebank 1 Sr Bank ASA		43,887
	6,514	Sparebanken 1 SMN		57,691

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

34

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio (PDN) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Norway (continued)
	1,647	Stolt-Nielsen Ltd.	$	44,382
	4,625	TGS Nopec Geophysical Co. ASA		159,186
				1,138,887
		Peru—0.0%
	13,623	Hochschild Mining PLC		37,955
		Portugal—0.5%
	7,823	Altri SGPS SA		26,532
	27,294	Banco BPI SA(a)		69,974
	11,560	EDP Renovaveis SA		79,133
	8,998	Mota-Engil SGPS SA		68,706
	8,086	Portucel SA		38,288
	2,099	Semapa-Sociedade de Investimento e Gestao SGPS SA		31,475
	88,678	Sonae		166,483
	10,574	Sonaecom SGPS SA		33,721
	5,860	ZON OPTIMUS SGPS SA		42,243
				556,555
		Russia—0.1%
	12,375	Polymetal International PLC		118,270
	15,648	Polyus Gold International Ltd.		48,882
				167,152
		Singapore—2.2%
	38,062	Ascott Residence Trust REIT		36,384
	44,218	Biosensors International Group Ltd.		33,462
	34,904	Cache Logistics Trust REIT		31,975
	55,958	Cambridge Industrial Trust REIT		32,986
	123,178	CapitaCommercial Trust REIT		156,996
	53,536	CapitaMalls Asia Ltd.		94,248
	25,896	CapitaRetail China Trust REIT		30,530
	31,796	CDL Hospitality Trusts REIT		45,465
	23,000	City Developments Ltd.		198,423
	46,062	Ezra Holdings Ltd.		38,527
	24,740	Frasers Centrepoint Trust REIT		35,375
	65,000	Keppel REIT		62,652
	53,378	Keppel Land Ltd.		147,121
	14,582	M1 Ltd.		39,029
	59,808	Mapletree Commercial Trust REIT		60,268
	79,000	Mapletree Greater China Commercial Trust REIT		53,176
	64,800	Mapletree Industrial Trust REIT		74,331
	81,118	Mapletree Logistics Trust REIT		71,080
	90,922	Neptune Orient Lines Ltd.(a)		73,514
	72,318	Olam International Ltd.		128,466
	19,266	OUE Ltd.		34,838
	44,010	SATS Ltd.		111,134
	7,948	SIA Engineering Co.		30,327
	24,530	Singapore Exchange Ltd.		135,219
	73,070	Singapore Post Ltd.		82,363
	55,010	SMRT Corp. Ltd.		53,461
	45,122	Starhill Global REIT		29,114
	27,900	StarHub Ltd.		92,233
	127,284	Suntec REIT		173,889
	57,000	Swiber Holdings Ltd.		29,060
	28,796	UOL Group Ltd.		147,266

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Singapore (continued)
	9,530	Venture Corp. Ltd.	$	58,227
	20,218	Wing Tai Holdings Ltd.		32,211
				2,453,350
		South Africa—0.0%
	79,080	Aquarius Platinum Ltd.(a)		28,709
		South Korea—7.6%
	89	Amorepacific Corp.		114,986
	138	Amorepacific Group, Inc.		71,317
	18,010	Asiana Airlines(a)		85,841
	5,300	Capro Corp.(a)		23,799
	723	Celltrion, Inc.(a)		33,656
	2,415	Cheil Worldwide, Inc.(a)		58,663
	586	Chongkundang Holdings Corp.		28,186
	652	CJ CheilJedang Corp.		195,606
	1,532	CJ E&M Corp.(a)		74,724
	1,890	CJ Hellovision Co. Ltd.		32,283
	823	CJ Korea Express Co. Ltd.(a)		86,816
	115	CJ O Shopping Co. Ltd.		40,600
	1,627	Coway Co. Ltd.		128,327
	4,160	Daeduck Electronics Co.		30,637
	1,360	Daesang Corp.		53,700
	16,020	Daewoo Engineering & Construction Co. Ltd.(a)		132,712
	1,160	Daewoo Industrial Development Co. Ltd.(a)		0
	3,830	Daewoo International Corp.		134,363
	15,250	Daewoo Securities Co. Ltd.(a)		124,857
	2,890	Daishin Securities Co. Ltd.		26,095
	2,120	Daishin Securities Co. Ltd. (Preference Shares)		12,187
	1,860	Daou Technology, Inc.		25,921
	583	Daum Communications Corp.		42,259
	7,270	DGB Financial Group, Inc.		110,109
	301	Dong-A Socio Holdings Co. Ltd.		37,869
	3,900	Dongbu HiTek Co. Ltd.(a)		26,269
	8,290	Dongkuk Steel Mill Co. Ltd.		79,426
	1,360	Doosan Corp.		175,051
	4,690	Doosan Engine Co. Ltd.(a)		39,352
	377	Fila Korea Ltd.		32,800
	123	GS Home Shopping, Inc.		27,771
	1,420	GS Retail Co. Ltd.		39,441
	348	Hanil Cement Co. Ltd.		40,077
	1,710	Hanil E-Hwa Co. Ltd.		34,918
	6,929	Hanjin Heavy Industries & Construction Co. Ltd.(a)		81,474
	26,420	Hanjin Shipping Co. Ltd.(a)		154,690
	2,173	Hanjin Transportation Co. Ltd.		53,310
	2,550	Hankook Tire Co. Ltd.		147,329
	2,970	Hankook Tire Worldwide Co. Ltd.		60,073
	7,310	Hansol Paper Co.		80,295
	8,991	Hanwha Chemical Corp.		158,798
	9,330	Hanwha General Insurance Co. Ltd.(a)		46,050
	15,810	Hanwha Life Insurance Co. Ltd.		102,819
	2,407	Hite Jinro Co. Ltd.		58,236
	1,012	Hotel Shilla Co. Ltd.		85,109
	1,260	Huchems Fine Chemical Corp.		26,583

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

35

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio (PDN) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		South Korea (continued)
	1,840	Hyundai Corp.	$	56,003
	888	Hyundai Department Store Co. Ltd.		114,298
	5,240	Hyundai Development Co.-Engineering & Construction		149,852
	508	Hyundai Glovis Co. Ltd.		119,712
	2,900	Hyundai Greenfood Co. Ltd.		48,694
	203	Hyundai Home Shopping Network Corp.		30,451
	2,018	Hyundai Hysco Co. Ltd.		107,608
	7,040	Hyundai Merchant Marine Co. Ltd.(a)		70,516
	852	Hyundai Mipo Dockyard Co. Ltd.		115,848
	16,710	Hyundai Securities Co. Ltd.(a)		112,230
	9,870	Hyundai Securities Co. Ltd. (Preference Shares)		65,049
	865	Hyundai Wia Corp.		142,311
	1,310	iMarketKorea, Inc.		39,491
	4,930	Kangwon Land, Inc.		142,418
	308	KCC Corp.		153,210
	1,770	Kolon Corp.		37,086
	2,046	Kolon Industries, Inc.		135,832
	1,450	Korea Aerospace Industries Ltd.		46,238
	2,670	Korea Investment Holdings Co. Ltd.		97,803
	1,229	Korea Line Corp.(a)		32,351
	537	Korea Zinc Co. Ltd.		176,956
	9,630	Korean Reinsurance Co.		95,060
	1,716	Kumho Petro Chemical Co. Ltd.		144,979
	12,270	Kumho Tire Co., Inc.(a)		154,370
	2,760	LF Corp.		71,584
	351	LG Hausys Ltd.		61,823
	231	LG Household & Health Care Ltd.		105,518
	839	LG Innotek Co. Ltd.(a)		92,564
	4,840	LIG Insurance Co. Ltd.		141,692
	41	Lotte Chilsung Beverage Co. Ltd.		62,018
	39	Lotte Confectionery Co. Ltd.		66,805
	859	Lotte Himart Co. Ltd.		60,270
	896	Mando Corp.		107,523
	6,045	Meritz Fire & Marine Insurance Co. Ltd.		75,175
	15,630	Meritz Securities Co. Ltd.		34,261
	2,007	Mirae Asset Securities Co. Ltd.		82,160
	220	Naver Corp.		157,128
	262	NCsoft Corp.		51,979
	3,992	Nexon Co. Ltd.		31,186
	367	NHN Entertainment Corp.(a)		29,941
	231	Nong Shim Co. Ltd.		68,743
	76	Orion Corp.		57,958
	126	Ottogi Corp.		49,934
	6,290	Pan Ocean Co. Ltd.(a)		20,940
	3,990	Poongsan Corp.		98,080
	670	S1 Corp.		50,900
	277	Samchully Co. Ltd.		41,551
	4,432	Samsung Card Co. Ltd.		160,629
	1,489	Samsung Fine Chemicals Co. Ltd.		59,370
	4,329	Samsung Securities Co., Ltd.		164,856
	2,246	Samsung Techwin Co. Ltd.		125,853
	1,753	Seah Besteel Corp.		47,248
	17,856	SK Broadband Co. Ltd.(a)		73,961
	2,943	SK Chemicals Co. Ltd.		171,174

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		South Korea (continued)
	2,000	SKC Co. Ltd.	$	66,099
	6,220	STX Engine Co. Ltd.(a)		21,129
	3,578	Sungwoo Hitech Co. Ltd.		57,654
	21,662	Taihan Electric Wire Co. Ltd.(a)		44,129
	45,040	TONGYANG Securities, Inc.(a)		100,036
	27,560	Tongyang, Inc.(a)		7,548
	11,490	Woori Investment & Securities Co. Ltd.		96,964
	25	Young Poong Corp.		28,791
	1,130	Youngone Corp.		46,040
	239	Yuhan Corp.		41,981
	1,622	Zyle Motor Sales Corp.(a)		0
				8,576,945
		Spain—1.6%
	6,630	Acerinox SA		115,830
	2,818	Almirall SA		47,161
	1,672	Atresmedia Corp. de Medios de Cominicaion SA(a)		23,948
	3,697	Bolsas y Mercados Espanoles		160,933
	3,775	Caja de Ahorros del Mediterraneo(a)		0
	120	Construcciones y Auxiliar de Ferrocarriles SA		57,403
	6,888	Duro Felguera SA		46,989
	6,193	Ebro Foods SA		142,543
	12,453	Ence Energia y Celulosa SA		36,605
	1,879	Grifols SA		100,305
	2,237	Grupo Catalana Occidente SA		87,375
	61,783	Liberbank SA(a)		77,013
	9,545	Mediaset Espana Comunicacion SA(a)		105,612
	3,475	Melia Hotels International SA		43,846
	10,651	NH Hoteles SA(a)		67,934
	3,379	Obrascon Huarte Lain SA		156,320
	745	Pescanova SA(a)		0
	164,304	Promotora de Informaciones SA, Class A(a)		91,354
	12,460	Prosegur Cia de Seguridad SA		83,445
	13,350	Sacyr Vallehermoso SA(a)		87,554
	2,048	Tecnicas Reunidas SA		123,198
	1,932	Viscofan SA		100,590
				1,755,958
		Sweden—2.3%
	1,018	AarhusKarlshamn AB		67,842
	1,103	AF AB, Class B		39,774
	866	Avanza Bank Holding AB(b)		32,358
	852	Axis Communications AB(b)		25,350
	1,584	Betsson AB(a)		57,484
	6,281	BillerudKorsnas AB		91,272
	8,039	Castellum AB		136,432
	9,099	Elekta AB, Class B(b)		127,056
	10,186	Eniro AB(a)		80,651
	7,033	Fabege AB		98,368
	2,072	Fastighets AB Balder, Class B(a)		26,469
	161	Fastighets AB Balder (Preference Shares)		8,659
	3,270	Haldex AB(b)		41,647
	545	Hexpol AB		51,348
	4,498	Holmen AB, Class B		158,195
	4,634	Hufvudstaden AB, Class A		67,552
	26,213	Husqvarna AB, Class B		217,205

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

36

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio (PDN) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Sweden (continued)
	858	ICA Gruppen AB	$	28,675
	861	Indutrade AB(b)		37,257
	1,396	Intrum Justitia AB(b)		40,293
	2,436	JM AB(b)		82,235
	3,108	Klovern AB		16,978
	722	Klovern AB (Preference Shares)		17,560
	10,487	Kungsleden AB(b)		85,288
	3,164	Lindab International AB(a)		39,326
	3,383	Loomis AB, Class B		91,623
	1,652	Lundbergforetagen AB, Class B		76,936
	5,129	Lundin Petroleum AB(a)		109,319
	2,751	Modern Times Group AB, Class B		121,870
	1,552	NIBE Industrier AB, Class B		43,462
	3,787	Nobia AB		34,285
	21,783	Peab AB		167,963
	3,855	Rezidor Hotel Group AB(a)		23,898
	3,431	Saab AB, Class B		104,769
	39,918	SAS AB(a)(b)		85,142
	3,258	Wallenstam AB, Class B		53,143
	2,996	Wihlborgs Fastigheter AB(b)		57,466
				2,645,150
		Switzerland—3.0%
	1,661	Actelion Ltd.(a)		163,091
	1,558	AFG Arbonia-Forster Holding AG(a)		51,759
	379	Allreal Holding AG(a)		53,420
	487	Alpiq Holding AG(a)		59,682
	1,354	Ascom Holding AG		25,144
	398	Autoneum Holding AG(a)		84,125
	159	Banque Cantonale Vaudoise		94,268
	67	Barry Callebaut AG(a)		90,937
	281	Bucher Industries AG		91,278
	80	Burckhardt Compression Holding AG		41,433
	208	Daetwyler Holding AG		32,838
	1,629	DKSH Holding AG(b)		134,139
	930	Dufry Group(a)		153,583
	114	Emmi AG(a)		41,790
	192	EMS-Chemie Holding AG		74,744
	133	Flughafen Zuerich AG		83,762
	58	Forbo Holding AG(a)		59,980
	153	Galenica AG		155,528
	6,741	GAM Holding AG(a)		122,501
	2,439	Gategroup Holding AG(a)		75,903
	559	Implenia AG(a)		40,951
	167	Kaba Holding AG, Class B(a)		80,375
	2,518	Kudelski SA		43,328
	230	Kuoni Reisen Holding AG, Class B(a)		101,553
	5,127	Logitech International SA		69,296
	3,621	Meyer Burger Technology AG(a)(b)		44,623
	298	Mobimo Holding AG(a)		63,936
	6,037	Nobel Biocare Holding AG(a)		83,995
	5,762	OC Oerlikon Corp. AG(a)		91,621
	1,358	Osem Investments Ltd.		32,223
	687	Panalpina Welttransport Holding AG		107,679
	391	Partners Group Holding AG		106,937
	1,776	PSP Swiss Property AG(a)		170,449
	287	Rieter Holding AG(a)		64,705

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Switzerland (continued)
	63,241	Schmolz + Bickenbach AG(a)	$	90,503
	42	Schweiter Technologies AG(a)		31,722
	545	Schweizerische National-Versicherungs-Gesellschaft AG		37,728
	234	Straumann Holding AG		51,852
	2,066	Swiss Prime Site AG(a)		173,526
	260	Tecan Group AG		32,424
	903	Valiant Holding AG(a)		99,946
	307	Valora Holding AG		86,648
	1,115	Vontobel Holding AG(b)		43,627
				3,439,552
		Taiwan—0.2%
	231,120	FIH Mobile Ltd.(a)		124,610
	70,336	TCC International Holdings Ltd.		34,475
	38,796	Uni-President China Holdings Ltd.		32,126
				191,211
		Ukraine—0.0%
	13,668	Ferrexpo PLC		33,603
		United Arab Emirates—0.0%
	13,516	Lamprell PLC(a)		35,032
		United Kingdom—10.1%
	46,646	Afren PLC(a)		124,053
	8,042	Alent PLC		43,182
	2,644	APR Energy PLC		35,448
	9,270	ARM Holdings PLC		139,545
	17,380	Ashmore Group PLC		102,832
	11,405	Ashtead Group PLC		168,410
	1,226	Aveva Group PLC		43,639
	12,603	AZ Electronic Materials SA		85,677
	25,018	BBA Aviation PLC		130,957
	25,135	Beazley PLC		104,067
	4,598	Bellway PLC		111,723
	6,460	Berendsen PLC		112,898
	3,040	Berkeley Group Holdings PLC (The)		117,755
	2,213	Betfair Group PLC		36,134
	4,315	Big Yellow Group PLC REIT		37,451
	9,307	Bodycote PLC		114,801
	57,474	Booker Group PLC		142,660
	4,024	Bovis Homes Group PLC		53,712
	7,839	Brewin Dolphin Holdings PLC		42,754
	9,292	Britvic PLC		113,674
	47,407	Cairn Energy PLC(a)		147,531
	12,941	Capital & Counties Properties PLC		72,919
	16,395	Carphone Warehouse Group PLC		85,211
	21,144	Chemring Group PLC		79,974
	4,985	Chesnara PLC		27,735
	7,202	Cineworld Group PLC		39,249
	6,714	Close Brothers Group PLC		158,264
	3,092	Countrywide PLC		30,882
	5,086	Crest Nicholson Holdings PLC		29,886
	3,821	Croda International PLC		166,202
	4,470	CSR PLC		43,362
	11,085	Dairy Crest Group PLC		86,457
	8,465	De La Rue PLC		117,136

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

37

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio (PDN) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		United Kingdom (continued)
	3,000	Dechra Pharmaceuticals PLC	$	34,953
	2,853	Derwent London PLC REIT		131,034
	7,297	Devro PLC		26,060
	1,231	Dignity PLC		29,745
	2,658	Diploma PLC		29,555
	3,181	Domino Printing Sciences PLC		41,627
	3,342	Domino’s Pizza Group PLC		29,006
	1,855	Dunelm Group PLC		29,334
	5,957	easyJet PLC		164,661
	30,525	Electrocomponents PLC		149,732
	15,105	Elementis PLC		70,727
	46,978	Enquest PLC(a)		108,913
	41,273	Enterprise Inns PLC(a)		95,129
	8,660	Entertainment One Ltd.(a)		43,284
	6,943	eSure Group PLC		29,485
	80,430	Evraz PLC(a)		130,785
	32,306	F&C Asset Management PLC		65,133
	9,786	Fenner PLC		68,393
	995	Fidessa Group PLC		37,668
	4,995	Filtrona PLC		67,474
	4,281	Galliford Try PLC		85,877
	5,506	Genel Energy PLC(a)		90,089
	2,143	Genus PLC		36,692
	2,638	Go-Ahead Group PLC		87,885
	10,107	Grainger PLC		36,436
	9,088	Great Portland Estates PLC REIT		96,217
	8,138	Greggs PLC		73,517
	15,453	Halfords Group PLC		115,514
	10,939	Halma PLC		103,715
	24,000	Hansteen Holdings PLC REIT		41,700
	1,997	Hargreaves Lansdown PLC		39,453
	35,678	Henderson Group PLC		151,092
	2,353	Hikma Pharmaceuticals PLC		61,663
	9,598	HomeServe PLC		54,746
	9,410	Howden Joinery Group PLC		51,672
	946	Hugo Boss AG		131,168
	6,607	Hunting PLC		94,438
	14,805	IG Group Holdings PLC		158,994
	10,615	International Personal Finance PLC		100,195
	6,832	Interserve PLC		76,254
	7,456	ITE Group PLC		28,957
	3,012	Jardine Lloyd Thompson Group PLC		53,606
	2,802	JD Wetherspoon PLC		39,909
	10,515	Jupiter Fund Management PLC		68,925
	489	Kabel Deutschland Holding AG		66,189
	3,189	Keller Group PLC		53,686
	3,074	Kier Group PLC		86,320
	14,653	Laird PLC		68,685
	19,634	Lifestyle International Holdings Ltd.		38,443
	4,951	London Stock Exchange Group PLC		151,483
	18,011	Londonmetric Property PLC REIT		42,060
	29,093	Lonmin PLC(a)		139,269
	44,758	Marston’s PLC		111,248
	10,868	Michael Page International PLC		85,847
	5,224	Micro Focus International PLC		68,363
	13,234	Mitchells & Butlers PLC(a)		98,435

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		United Kingdom (continued)
	24,897	Mitie Group PLC	$	133,729
	12,596	Moneysupermarket.com Group PLC		38,710
	14,384	Morgan Advanced Materials PLC		81,365
	7,178	Mothercare PLC(a)		22,574
	5,961	N Brown Group PLC		51,636
	19,982	National Express Group PLC		94,170
	11,009	Northgate PLC		96,385
	2,760	Ocado Group PLC(a)		15,659
	7,367	Ophir Energy PLC(a)		32,791
	1,133	Oxford Instruments PLC		24,660
	12,352	Pace PLC		76,065
	12,894	Paragon Group of Cos. PLC		77,944
	5,356	Partnership Assurance Group PLC(a)		11,938
	10,425	Petra Diamonds Ltd.(a)		28,693
	9,798	Phoenix Group Holdings		112,998
	3,560	Playtech Ltd.		40,095
	22,299	Premier Farnell PLC		83,552
	52,519	Premier Foods PLC(a)		50,992
	27,453	Premier Oil PLC		157,053
	36,909	Qinetiq Group PLC		131,376
	5,677	Redrow PLC		27,473
	21,423	Regus PLC		75,603
	838	Renishaw PLC		25,711
	6,030	Restaurant Group PLC		63,535
	651	Rightmove PLC		26,492
	1,980	Rotork PLC		86,626
	5,695	RPC Group PLC		57,698
	7,250	RPS Group PLC		36,053
	23,497	Salamander Energy PLC(a)		53,166
	4,162	Savills PLC		42,166
	14,033	Senior PLC		67,722
	8,510	Shaftesbury PLC REIT		95,055
	18,355	Shanks Group PLC		31,536
	43,098	SIG PLC		139,361
	6,233	Soco International PLC(a)		45,477
	3,528	Spectris PLC		132,548
	26,888	Speedy Hire PLC		25,652
	2,539	Spirax-Sarco Engineering PLC		124,287
	30,551	Spirent Communications PLC		49,085
	31,750	Spirit Pub Co. PLC		42,085
	3,321	Sports Direct International PLC(a)		43,908
	10,767	St. James’s Place PLC		139,991
	4,323	St. Modwen Properties PLC		27,118
	23,148	Stagecoach Group PLC		145,011
	2,167	Strauss Group Ltd.		39,192
	7,780	SVG Capital PLC(a)		55,832
	2,240	Synergy Health PLC		46,901
	9,787	Synthomer PLC		43,628
	24,683	TalkTalk Telecom Group PLC		119,534
	3,995	Telecity Group PLC		48,367
	954	Telecom Plus PLC		24,936
	1,323	Telenet Group Holding NV		77,494
	10,758	Tullett Prebon PLC		57,748
	27,008	Turquoise Hill Resources Ltd.(a)		104,838
	12,823	UBM PLC		142,147
	2,859	Ultra Electronics Holdings PLC		81,876

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

38

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio (PDN) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		United Kingdom (continued)
	4,762	Unite Group PLC (The)	$	33,973
	12,230	Vesuvius PLC		86,115
	1,885	Victrex PLC		59,234
	5,584	WH Smith PLC		103,152
	3,401	Workspace Group PLC REIT		32,963
	3,688	WS Atkins PLC		79,897
				11,421,191
		United States—0.6%
	19,311	Alacer Gold Corp.		46,102
	36,096	Atlantic Power Corp.(b)		107,553
	138,145	Boart Longyear Group(a)		36,479
	3,249	Genworth MI Canada, Inc.(b)		113,831
	1,470	Halla Visteon Climate Control Corp.		61,315
	12,426	MGM China Holdings Ltd.		43,275
	35,162	Thompson Creek Metals Co., Inc.(a)(b)		94,197
	23,270	Wynn Macau Ltd.		91,695
	7,758	Zardoya Otis SA		135,967
				730,414
		Total Common Stocks and Other Equity Interests (Cost $101,174,812)		112,923,538
		Rights—0.0%
		Austria—0.0%
	24,553	Immofinanz AG, expiring 12/31/49(a)		0
		Israel—0.0%
	445	Africa-Israel Investments Ltd., expiring 06/01/14(a)		383
		Portugal—0.0%
	19,888	Mota-Engil SGPS SA, expiring 05/01/14(a)		10,829
		Sweden—0.0%
	3,855	Rezidor Hotel Group AB, expiring 06/21/14(a)		1,784
		Total Rights (Cost $10,588)		12,996
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $101,185,400)—99.9%		112,936,534
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—2.2%
	2,492,045	Invesco Liquid Assets Portfolio—Institutional Class(c)(d) (Cost $2,492,045)		2,492,045
		Total Investments (Cost $103,677,445)—102.1%		115,428,579
		Other assets less liabilities—(2.1)%		(2,377,910	)
		Net Assets—100.0%	$	113,050,669

Investment Abbreviations:

CDI—Chess Depositary Interests

CVA—Dutch Certificates

REIT—Real Estate Investment Trust

RSP—Registered Savings Plan Shares

Notes to Schedule of Investments:

^(a)  Non-income producing security.

^(b)  All or a portion of this security was out on loan at April 30, 2014.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

^(d)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2H. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of April 30, 2014.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Citibank	$	2,418,372	$	(2,418,372	)	$	—

* Amount does not include excess collateral received, if any.

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

39

Portfolio Composition

PowerShares FTSE RAFI Emerging Markets Portfolio (PXH)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Financials	29.7
Energy	24.1
Information Technology	10.6
Materials	10.5
Telecommunication Services	9.8
Consumer Staples	4.6
Consumer Discretionary	3.8
Utilities	3.7
Industrials	3.6
Health Care	0.3
Other Assets Less Liabilities	(0.7)

Schedule of Investments

PowerShares FTSE RAFI Emerging Markets Portfolio (PXH)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.7%
		Belgium—0.5%
	252,350	Ambev SA	$	1,840,446
		Brazil—20.5%
	13,300	AES Tiete SA		86,883
	20,500	AES Tiete SA (Preference Shares)		160,610
	82,500	All America Latina Logistica SA		325,947
	91,490	Banco Bradesco SA		1,399,603
	373,043	Banco Bradesco SA (Preference Shares)		5,539,854
	401,058	Banco do Brasil SA		4,200,885
	48,800	Banco do Estado do Rio Grande do SUL SA (Preference Shares), Class B		273,155
	257,385	BM&FBOVESPA SA		1,312,866
	46,100	BR Malls Participacoes SA		397,686
	41,209	Braskem SA (Preference Shares), Class A		280,633
	75,000	BRF SA		1,694,669
	72,700	CCR SA		568,601
	192,210	Centrais Eletricas Brasileiras SA		669,095
	145,800	Centrais Eletricas Brasileiras SA (Preference Shares), Class B		824,588
	17,179	Cia Brasileira de Distribuicao (Preference Shares)		810,928
	66,192	Cia de Saneamento Basico do Estado de Sao Paulo		625,506
	29,680	Cia Energetica de Minas Gerais		227,485
	266,422	Cia Energetica de Minas Gerais (Preference Shares)		2,001,488

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Brazil (continued)
	36,521	Cia Energetica de Sao Paulo (Preference Shares), Class B	$	431,889
	39,708	Cia Paranaense de Energia (Preference Shares), Class B		567,651
	239,882	Cia Siderurgica Nacional SA		918,763
	44,484	Cielo SA		786,200
	18,400	Cosan SA Industria e Comercio		314,824
	76,900	CPFL Energia SA		650,654
	46,400	Cyrela Brazil Realty SA Empreendimentos E Participacoes		280,690
	97,100	Eletropaulo Metropolitana SA (Preference Shares)		395,795
	85,967	Embraer SA		741,602
	29,055	Fibria Celulose SA(a)		288,606
	32,313	Gerdau SA		156,291
	215,217	Gerdau SA (Preference Shares)		1,287,479
	45,890	Itau Unibanco Holding SA		705,305
	467,650	Itau Unibanco Holding SA (Preference Shares)		7,700,181
	258,706	Itausa - Investimentos Itau SA (Preference Shares)		1,134,396
	150,882	JBS SA(a)		519,829
	243,300	Klabin SA (Preference Shares)		248,204
	37,504	Light SA		298,696
	8,300	Lojas Americanas SA		53,255
	10,900	Lojas Renner SA		319,936

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

40

PowerShares FTSE RAFI Emerging Markets Portfolio (PXH) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Brazil (continued)
	243,200	Marfrig Alimentos SA(a)	$	452,678
	70,470	Metalurgica Gerdau SA (Preference Shares)		509,539
	23,300	Natura Cosmeticos SA		398,142
	104,922	Oi SA		105,629
	479,989	Oi SA (Preference Shares)		459,597
	490,400	PDG Realty SA Empreendimentos e Participacoes(a)		300,610
	1,327,062	Petroleo Brasileiro SA		9,280,735
	1,543,647	Petroleo Brasileiro SA (Preference Shares)		11,444,655
	45,496	Ultrapar Participacoes SA		1,139,563
	37,284	Usinas Siderurgicas de Minas Gerais SA(a)		133,625
	122,232	Usinas Siderurgicas de Minas Gerais SA (Preference Shares), Class A(a)		476,907
	314,723	Vale SA		4,140,073
	491,427	Vale SA (Preference Shares)		5,809,303
				73,851,784
		British Virgin Islands—0.3%
	789,276	Evergrande Real Estate Group Ltd.		352,244
	124,375	Turkcell Iletisim Hizmet AS(a)		722,496
				1,074,740
		Chile—0.7%
	2,635,243	Banco de Chile		338,531
	146,334	Cencosud SA		487,465
	20,734,488	Corpbanca SA		238,807
	19,006	Empresa Nacional de Telecomunicaciones SA (ENTEL)		233,279
	29,603	Empresas COPEC SA		381,862
	38,935	LATAM Airlines Group SA		593,996
	32,003	S.A.C.I. Falabella		272,190
				2,546,130
		China—21.2%
	344,198	Agile Property Holdings Ltd.		279,253
	4,073,223	Agricultural Bank of China Ltd., H-Shares		1,707,498
	767,514	Aluminum Corp. of China Ltd., H-Shares(a)		274,223
	381,548	Angang Steel Co. Ltd., H-Shares(a)		231,305
	103,498	Anhui Conch Cement Co. Ltd., H-Shares		384,470
	16,051,461	Bank of China Ltd., H-Shares		7,060,047
	1,571,242	Bank of Communications Co. Ltd., H-Shares		976,852
	32,417	Beijing Enterprises Holdings Ltd.		281,820
	426,424	Belle International Holdings Ltd.		441,668
	1,237,283	China CITIC Bank Corp. Ltd., H-Shares		737,309
	1,047,758	China Coal Energy Co. Ltd., H-Shares		566,257
	1,468,702	China Communications Construction Co. Ltd., H-Shares		960,462
	523,146	China Communications Services Corp. Ltd., H-Shares		265,188
	13,493,082	China Construction Bank Corp., H-Shares		9,311,155
	511,652	China COSCO Holdings Co. Ltd., H-Shares(a)		202,606
	720,845	China Life Insurance Co. Ltd., H-Shares		1,857,702
	586,030	China Merchants Bank Co. Ltd., H-Shares		1,046,151
	113,816	China Merchants Holdings International Co. Ltd.		356,003
	628,924	China Minsheng Banking Corp. Ltd., H-Shares		632,749

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		China (continued)
	798,983	China Mobile Ltd.	$	7,595,277
	672,667	China National Building Material Co. Ltd., H-Shares		635,979
	108,135	China Oilfield Services Ltd., H-Shares		257,755
	329,973	China Overseas Land & Investment Ltd.		809,520
	221,637	China Pacific Insurance (Group) Co. Ltd., H-Shares		694,684
	7,075,659	China Petroleum & Chemical Corp. (Sinopec), H-Shares		6,251,671
	791,497	China Railway Construction Corp. Ltd., H-Shares		654,404
	1,634,700	China Railway Group Ltd., H-Shares		727,438
	165,451	China Resources Enterprise Ltd.		470,562
	167,966	China Resources Land Ltd.		345,774
	210,879	China Resources Power Holdings Co. Ltd.		530,404
	622,567	China Shenhua Energy Co. Ltd., H-Shares		1,686,336
	3,435,569	China Telecom Corp. Ltd., H-Shares		1,763,682
	877,793	China Unicom (Hong Kong) Ltd.		1,347,341
	431,039	China Yurun Food Group Ltd.(a)		207,379
	342,819	Citic Pacific Ltd.		601,371
	2,439,160	CNOOC Ltd.		4,033,359
	219,798	COSCO Pacific Ltd.		294,279
	615,758	Datang International Power Generation Co. Ltd., H-Shares		229,534
	476,126	Dongfeng Motor Group Co. Ltd., H-Shares		635,011
	2,104,091	GOME Electrical Appliances Holdings Ltd.		396,238
	219,635	Guangzhou R&F Properties Co. Ltd., H-Shares		286,695
	31,479	Hengan International Group Co. Ltd.		331,525
	598,364	Huaneng Power International, Inc., H-Shares		584,252
	13,713,464	Industrial & Commercial Bank of China Ltd., H-Shares		8,171,989
	269,223	Jiangxi Copper Co. Ltd., H-Shares		444,489
	181,923	Kunlun Energy Co. Ltd.		283,930
	774,002	Lenovo Group Ltd.		880,540
	3,653,954	PetroChina Co. Ltd., H-Shares		4,232,315
	269,803	PICC Property & Casualty Co. Ltd., H-Shares		355,661
	145,490	Ping An Insurance (Group) Co. of China Ltd., H-Shares		1,076,230
	80,866	Shanghai Industrial Holdings Ltd.		250,332
	159,365	Shimao Property Holdings Ltd.		314,502
	107,445	Sinopharm Group Co. Ltd., H-Shares		282,719
	7,180	Tencent Holdings Ltd.		447,497
	65,159	Weichai Power Co. Ltd., H-Shares		226,922
	584,742	Yanzhou Coal Mining Co. Ltd., H-Shares		440,469
				76,350,783
		Cyprus—0.1%
	16,744	Novolipetsk Steel OJSC GDR		194,398
		France—0.3%
	180,414	Orange Polska SA		616,169
	29,454	Tractebel Energia SA		431,738
				1,047,907
		Hong Kong—0.6%
	543,219	Country Garden Holdings Co. Ltd.		217,908
	1,517,759	PT Astra International Tbk		974,732

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

41

PowerShares FTSE RAFI Emerging Markets Portfolio (PXH) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Hong Kong (continued)
	504,579	PT Indofood Sukses Makmur Tbk	$	307,684
	174,411	PT United Tractors Tbk		327,355
	447,270	Skyworth Digital Holdings Ltd.		214,034
				2,041,713
		India—6.3%
	36,487	HDFC Bank Ltd. ADR		1,461,304
	64,788	ICICI Bank Ltd. ADR		2,764,504
	51,528	Infosys Ltd. ADR		2,767,569
	39,540	Larsen & Toubro Ltd. GDR		852,087
	59,644	Mahindra & Mahindra Ltd. GDR		1,062,260
	236,826	Reliance Industries Ltd. GDR(b)		7,341,606
	39,567	State Bank of India GDR		2,708,361
	46,856	Tata Motors Ltd. ADR		1,753,351
	194,005	Tata Steel Ltd. GDR		1,265,883
	41,961	Wipro Ltd. ADR		501,854
				22,478,779
		Indonesia—1.2%
	3,186,792	PT Adaro Energy Tbk		326,631
	634,996	PT Bank Central Asia Tbk		604,156
	737,780	PT Bank Mandiri Persero Tbk		626,968
	750,091	PT Bank Negara Indonesia (Persero) Tbk		312,389
	804,527	PT Bank Rakyat Indonesia (Persero) Tbk		688,909
	946,963	PT Perusahaan Gas Negara Persero Tbk		436,153
	221,972	PT Semen Indonesia (Persero) Tbk		285,109
	5,933,910	PT Telekomunikasi Indonesia Persero Tbk		1,162,505
				4,442,820
		Italy—0.8%
	10,497	Bank Pekao SA		672,109
	437,070	Empresa Nacional de Electricidad SA		646,468
	3,456,042	Enersis SA		1,117,588
	102,666	Tim Participacoes SA		555,833
				2,991,998
		Malaysia—2.7%
	164,500	AMMB Holdings Bhd		361,693
	462,400	Axiata Group Bhd		952,979
	460,000	CIMB Group Holdings Bhd		1,057,908
	305,000	DiGi.Com Bhd		517,440
	143,500	Genting Bhd		430,654
	218,100	Genting Malaysia Bhd		281,850
	405,100	IOI Corp. Bhd		620,273
	35,700	Kuala Lumpur Kepong Bhd		264,566
	414,800	Malayan Banking Bhd		1,257,547
	233,100	Maxis Bhd		496,109
	121,700	MISC Bhd(a)		242,617
	214,300	Petronas Chemicals Group Bhd		441,660
	80,700	Public Bank Bhd		497,718
	334,200	Sime Darby Bhd		966,115
	139,700	Telekom Malaysia Bhd		265,240
	127,400	Tenaga Nasional Bhd		464,266
	81,400	UMW Holdings Bhd		268,217
	697,000	YTL Power International Bhd(a)		335,106
				9,721,958

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Mexico—3.8%
	234,860	Alfa SAB de CV, Class A	$	620,121
	4,315,354	America Movil SAB de CV, Series L		4,348,653
	1,936,999	Cemex SAB de CV, Series CPO		2,459,540
	28,905	Coca-Cola Femsa SAB de CV, Series L		323,699
	167,542	Empresas ICA SAB de CV(a)		299,781
	144,451	Fomento Economico Mexicano SAB de CV		1,311,746
	131,910	Grupo Bimbo SAB de CV, Series A		363,612
	119,002	Grupo Financiero Banorte SAB de CV, Class O		789,983
	99,780	Grupo Financiero Inbursa SA de CV, Class O		255,453
	339,215	Grupo Mexico SAB de CV, Series B		1,021,092
	178,687	Grupo Televisa SAB de CV, Series CPO		1,170,223
	10,325	Industrias Penoles SAB de CV		240,270
	92,359	Mexichem SAB de CV		343,991
				13,548,164
		Poland—1.8%
	47,886	KGHM Polska Miedz SA		1,731,143
	127,769	PGE SA		886,244
	66,024	Polski Koncern Naftowy Orlen SA		987,890
	217,596	Polskie Gornictwo Naftowe i Gazownictwo SA		338,517
	82,738	Powszechna Kasa Oszczednosci Bank Polski SA		1,134,127
	6,826	Powszechny Zaklad Ubezpieczen SA		967,687
	133,834	Tauron Polska Energia SA		236,499
				6,282,107
		Portugal—0.1%
	84,741	EDP - Energias do Brasil SA		367,409
		Russia—10.8%
	160,632	Federal Hydrogenerating Co. (RUSHYDRO) JSC ADR		248,980
	2,218,170	Gazprom OAO ADR		16,015,187
	37,502	JSFC Sistema GDR		892,548
	146,887	LUKOIL OAO ADR		7,773,260
	7,885	Magnit OJSC GDR		370,989
	108,303	Mechel ADR(a)		218,772
	8,284	Megafon OAO GDR		215,384
	74,663	MMC Norilsk Nickel OJSC ADR		1,346,174
	92,233	Mobile TeleSystems OJSC ADR		1,545,825
	3,156	NovaTek OAO GDR		326,015
	215,755	Rosneft Oil Co. GDR		1,353,431
	36,768	Rostelecom OJSC ADR		477,984
	384,356	Sberbank of Russia ADR(a)		3,221,672
	57,565	Severstal OAO GDR		405,258
	172,824	Surgutneftegas OJSC ADR		1,223,594
	33,548	Tatneft ADR		1,150,696
	25,056	Uralkali OJSC GDR		554,990
	664,118	VTB Bank OJSC GDR		1,406,602
				38,747,361
		Saudi Arabia—0.1%
	154,693	Turk Telekomunikasyon AS		462,457
		South Africa—7.9%
	372,434	African Bank Investments Ltd.		441,001

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

42

PowerShares FTSE RAFI Emerging Markets Portfolio (PXH) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		South Africa (continued)
	52,751	AngloGold Ashanti Ltd.	$	951,067
	9,544	Aspen Pharmacare Holdings Ltd.		253,727
	32,150	Barloworld Ltd.		349,887
	45,566	Bidvest Group Ltd.		1,248,277
	17,407	Exxaro Resources Ltd.		236,994
	356,894	FirstRand Ltd.		1,310,163
	38,348	Foschini Group Ltd. (The)		395,091
	308,275	Gold Fields Ltd.		1,291,218
	221,368	Growthpoint Properties Ltd. REIT		510,793
	101,250	Harmony Gold Mining Co. Ltd.(a)		334,387
	106,947	Impala Platinum Holdings Ltd.		1,202,388
	38,391	Imperial Holdings Ltd.		714,294
	34,279	Investec Ltd.		300,795
	126,991	MMI Holdings Ltd.		318,347
	13,179	Mondi Ltd.		219,000
	224,880	MTN Group Ltd.		4,501,593
	64,736	Nampak Ltd.		240,966
	6,995	Naspers Ltd., Class N		658,906
	160,351	Netcare Ltd.		388,272
	37,635	Remgro Ltd.		756,370
	222,143	Sanlam Ltd.		1,186,532
	82,544	Sappi Ltd.(a)		261,086
	71,632	Sasol Ltd.		4,015,103
	46,389	Shoprite Holdings Ltd.		773,902
	177,164	Sibanye Gold Ltd.		457,582
	29,378	Spar Group Ltd. (The)		344,519
	164,732	Standard Bank Group Ltd.		2,159,897
	202,438	Steinhoff International Holdings Ltd.		1,049,756
	18,883	Tiger Brands Ltd.		504,101
	45,397	Truworths International Ltd.		363,611
	81,638	Woolworths Holdings Ltd.		554,272
				28,293,897
		Spain—1.4%
	378,484	Banco Santander Brasil SA		2,523,283
	9,778,892	Banco Santander Chile		590,859
	269,257	Grupo Financiero Santander Mexico SAB de CV, Class B		642,851
	67,343	Telefonica Brasil SA (Preference Shares)		1,413,783
				5,170,776
		Taiwan—13.5%
	1,071,331	Acer, Inc.(a)		661,644
	703,811	Advanced Semiconductor Engineering, Inc.		815,729
	247,405	Asia Cement Corp.		325,253
	151,738	Asustek Computer, Inc.		1,567,728
	3,434,000	AU Optronics Corp.(a)		1,296,364
	47,000	Catcher Technology Co. Ltd.		396,102
	654,562	Cathay Financial Holding Co. Ltd.		923,384
	121,894	Cheng Shin Rubber Industry Co. Ltd.		349,560
	1,568,081	China Development Financial Holding Corp.		449,166
	355,000	China Life Insurance Co. Ltd.		310,352
	985,000	China Steel Corp.		826,868
	561,000	Chunghwa Telecom Co. Ltd.		1,749,990
	1,114,054	Compal Electronics, Inc.		795,015
	1,273,969	CTBC Financial Holding Co. Ltd.		757,260
	156,000	Delta Electronics, Inc.		955,693

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Taiwan (continued)
	402,800	E.Sun Financial Holding Co. Ltd.	$	243,430
	240,930	Far Eastern New Century Corp.		246,531
	211,000	Far EasTone Telecommunications Co. Ltd.		456,265
	449,335	First Financial Holding Co. Ltd.		263,369
	257,920	Formosa Chemicals & Fibre Corp.		623,490
	93,000	Formosa Petrochemical Corp.		233,747
	293,280	Formosa Plastics Corp.		755,586
	151,745	Foxconn Technology Co. Ltd.		376,875
	852,928	Fubon Financial Holding Co. Ltd.		1,101,536
	2,068,895	Hon Hai Precision Industry Co. Ltd.		5,933,052
	24,000	Hotai Motor Co. Ltd.		281,343
	371,233	HTC Corp.		1,905,461
	2,851,142	Innolux Corp.(a)		981,915
	640,000	Inventec Corp.		589,178
	322,282	Lite-On Technology Corp.		491,993
	96,091	MediaTek, Inc.		1,501,919
	987,640	Mega Financial Holding Co. Ltd.		755,497
	392,940	Nan Ya Plastics Corp.		860,101
	50,000	Novatek Microelectronics Corp.		230,976
	586,106	Pegatron Corp.		887,951
	223,740	Pou Chen Corp.		284,510
	222,200	Powertech Technology, Inc.		359,443
	48,000	President Chain Store Corp.		356,845
	453,000	Quanta Computer, Inc.		1,242,082
	1,164,696	Shin Kong Financial Holding Co. Ltd.		352,518
	446,000	Siliconware Precision Industries Co.		653,537
	677,456	SinoPac Financial Holdings Co. Ltd.		301,735
	294,000	Synnex Technology International Corp.		457,093
	879,880	Taishin Financial Holding Co. Ltd.		399,177
	440,089	Taiwan Cement Corp.		698,068
	174,400	Taiwan Mobile Co. Ltd.		562,506
	1,889,000	Taiwan Semiconductor Manufacturing Co. Ltd.		7,412,627
	51,000	TPK Holding Co. Ltd.		388,436
	417,000	Unimicron Technology Corp.		354,197
	507,609	Uni-President Enterprises Corp.		858,958
	2,662,000	United Microelectronics Corp.		1,150,378
	726,000	Wintek Corp.(a)		242,817
	936,858	Wistron Corp.		781,801
	299,760	WPG Holdings Ltd.		368,273
	1,059,306	Yuanta Financial Holding Co. Ltd.		527,934
				48,653,258
		Thailand—2.4%
	103,446	Advanced Info. Service PCL		773,607
	66,159	Bangkok Bank PCL		386,405
	341,373	Banpu PCL		316,477
	409,202	Charoen Pokphand Foods PCL		341,423
	219,223	CP ALL PCL		284,529
	2,794,074	IRPC PCL		317,744
	100,470	Kasikornbank PCL		610,085
	467,234	Krung Thai Bank PCL		261,339
	133,815	PTT Exploration & Production PCL		659,564
	24,124	PTT Exploration & Production PCL NVDR		118,905
	293,130	PTT Global Chemical PCL		631,824
	178,310	PTT PCL		1,724,692
	36,996	PTT PCL NVDR		357,842

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

43

PowerShares FTSE RAFI Emerging Markets Portfolio (PXH) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Thailand (continued)
	27,800	Siam Cement PCL	$	374,561
	133,980	Siam Commercial Bank PCL		685,219
	238,707	Thai Oil PCL		385,428
	92,050	Total Access Communication PCL		354,148
				8,583,792
		Turkey—2.4%
	313,186	Akbank TAS		1,090,101
	14,928	BIM Birlesik Magazalar AS		343,695
	256,720	Eregli Demir ve Celik Fabrikalari TAS		355,242
	182,102	Haci Omer Sabanci Holding AS		765,424
	189,082	Koc Holding AS		842,091
	44,722	Tupras Turkiye Petrol Rafine AS		1,003,256
	79,330	Turk Hava Yollari AO		252,893
	376,195	Turkiye Garanti Bankasi AS		1,373,376
	124,830	Turkiye Halk Bankasi AS		831,257
	360,558	Turkiye Is Bankasi, Class C		846,308
	257,081	Turkiye Vakiflar Bankasi TAO, Class D		535,434
	172,858	Yapi ve Kredi Bankasi AS		358,386
				8,597,463
		United Kingdom—0.9%
	7,029	Anglo American Platinum Ltd.(a)		333,724
	60,720	Barclays Africa Group Ltd.		887,926
	11,969	Kumba Iron Ore Ltd.		425,222
	32,247	Nedbank Group Ltd.		689,423
	46,075	Souza Cruz SA		419,529
	47,287	Vodacom Group Ltd.		563,296
				3,319,120
		United States—0.4%
	21,429	Massmart Holdings Ltd.		283,349
	426,670	Wal-Mart de Mexico SAB de CV, Series V		1,078,980
				1,362,329
		Total Common Stocks and Other Equity Interests (Cost $387,582,036)		361,971,589
		Rights—0.0%
		Belgium—0.0%
	353	Ambev SA, expiring 05/29/14(a)		39
		Brazil—0.0%
	1,475	Klabin SA, expiring 06/23/14(a)		66
		Taiwan—0.0%
	36,692	E.Sun Financial Holding Co. Ltd., expiring 05/06/14(a)		3,949
		Total Rights (Cost $0)		4,054
		Total Investments (Cost $387,582,036)—100.7%		361,975,643
		Other assets less liabilities—(0.7)%		(2,466,057	)
		Net Assets—100.0%	$	359,509,586

Investment Abbreviations:

ADR—American Depositary Receipt

GDR—Global Depositary Receipt

NVDR—Non-voting Depositary Receipt

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Non-income producing security.

^(b)  Security purchased or received in a transaction exempt from registration under the Securities Act of 1933 (the “1933 Act”), as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at April 30, 2014 was 7,341,606 which represented 2.04% of the Fund’s Net Assets.

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

44

Portfolio Composition

PowerShares Global Agriculture Portfolio (PAGG)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Fertilizers & Agricultural Chemicals	56.9
Agricultural Products	39.1
Diversified Chemicals	2.7
Oil & Gas Refining & Marketing	1.2
Money Market Plus Other Assets Less Liabilities	0.1

Schedule of Investments

PowerShares Global Agriculture Portfolio (PAGG)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Australia—4.1%
	85,357	GrainCorp Ltd., Class A	$	700,716
	766,891	Incitec Pivot Ltd.		2,046,420
	82,379	Nufarm Ltd.		316,762
				3,063,898
		Brazil—1.4%
	51,158	Cosan SA Industria e Comercio		875,314
	22,938	SLC Agricola SA		174,476
				1,049,790
		British Virgin Islands—0.6%
	221,118	First Resources Ltd.		452,681
		Canada—12.4%
	31,484	Agrium, Inc.		3,020,020
	175,467	Potash Corp. of Saskatchewan, Inc.(a)		6,334,687
				9,354,707
		China—1.6%
	978,291	China Agri-Industries Holdings Ltd.		391,173
	329,133	China BlueChemical Ltd., H-Shares		176,605
	990,211	China Modern Dairy Holdings Ltd.(b)		424,038
	1,321,262	GMG Global Ltd.		94,725
	850,304	Sinofert Holdings Ltd.		105,289
				1,191,830
		Denmark—0.2%
	4,195	Auriga Industries A/S, Class B(b)		155,080
		Germany—4.5%
	85,743	K+S AG		2,996,544
	1,046	KWS Saat AG		373,315
				3,369,859
		Hong Kong—0.9%
	154,084	PT Astra Agro Lestari Tbk		391,824

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Hong Kong (continued)
	1,304,091	PT Perusahaan Perkebunan London Sumatra Indonesia Tbk	$	276,350
				668,174
		Indonesia—3.4%
	2,991,645	Golden Agri-Resources Ltd.		1,453,701
	3,440,180	PT Charoen Pokphand Indonesia Tbk		1,121,782
				2,575,483
		Israel—3.2%
	207,688	Israel Chemicals Ltd.		1,839,689
	1,076	Israel Corp. Ltd. (The)(b)		606,499
				2,446,188
		Japan—1.0%
	9,124	Hokuto Corp.		183,284
	17,286	Kumiai Chemical Industry Co. Ltd.		117,440
	19,532	Nihon Nohyaku Co. Ltd.		243,409
	13,923	Sakata Seed Corp.		194,636
				738,769
		Malaysia—7.6%
	867,300	Felda Global Ventures Holdings Bhd		1,200,489
	1,742,390	IOI Corp. Bhd		2,667,876
	248,774	Kuala Lumpur Kepong Bhd		1,843,617
				5,711,982
		Netherlands—2.0%
	32,745	Nutreco NV		1,519,169
		Norway—4.4%
	71,399	Yara International ASA(a)		3,363,704
		Russia—0.5%
	36,228	Phosagro OAO GDR		420,607

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

45

PowerShares Global Agriculture Portfolio (PAGG) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Singapore—3.5%
	983,802	Wilmar International Ltd.	$	2,664,537
		Switzerland—8.4%
	15,969	Syngenta AG		6,322,668
		Taiwan—0.9%
	342,099	Taiwan Fertilizer Co. Ltd.		679,712
		Turkey—0.1%
	38,929	Gubre Fabrikalari TAS(b)		77,034
		United States—39.2%
	8,719	American Vanguard Corp.		155,285
	142,897	Archer-Daniels-Midland Co.		6,248,886
	36,438	Bunge Ltd.		2,902,287
	11,561	CF Industries Holdings, Inc.		2,834,410
	76,599	Darling International, Inc.(b)		1,532,746
	17,302	Fresh Del Monte Produce, Inc.		499,855
	31,603	Ingredion, Inc.		2,226,431
	25,776	Intrepid Potash, Inc.(a)(b)		420,149
	52,732	Monsanto Co.		5,837,432
	118,740	Mosaic Co. (The)		5,941,750
	16,780	Scotts Miracle-Gro Co. (The), Class A		1,027,104
				29,626,335
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $76,613,709)—99.9%		75,452,207
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—7.3%
	5,477,500	Invesco Liquid Assets Portfolio—Institutional Class(c)(d) (Cost $5,477,500)		5,477,500
		Total Investments (Cost $82,091,209)—107.2%		80,929,707
		Other assets less liabilities—(7.2)%		(5,415,895	)
		Net Assets—100.0%	$	75,513,812

Investment Abbreviations:

GDR—Global Depositary Receipt

Notes to Schedule of Investments:

^(a)  All or a portion of this security was out on loan at April 30, 2014.

^(b)  Non-income producing security.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

^(d)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2H. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of April 30, 2014.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Citibank	$	5,400,258	$	(5,400,258	)	$	—

* Amount does not include excess collateral received, if any.

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

46

Portfolio Composition

PowerShares Global Clean Energy Portfolio (PBD)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Semiconductors	15.9
Renewable Electricity	13.2
Semiconductor Equipment	11.6
Heavy Electrical Equipment	7.5
Electrical Components & Equipment	7.4
Building Products	7.4
Electric Utilities	7.2
Industrial Machinery	3.4
Oil & Gas Refining & Marketing	3.3
Construction & Engineering	2.8
Electronic Equipment & Instruments	2.4
Environmental & Facilities Services	2.2
Auto Parts & Equipment	2.0
Automobile Manufacturers	2.0
Application Software	1.5
Diversified Chemicals	1.4
Electronic Components	1.3
Packaged Foods & Meats	1.3
Specialty Chemicals	1.3
Oil & Gas Storage & Transportation	1.3
Coal & Consumable Fuels	0.9
Diversified Support Services	0.6
Independent Power Producers & Energy Traders	0.5
Research & Consulting Services	0.5
Homebuilding	0.4
Aerospace & Defense	0.4
Electronic Manufacturing Services	0.2
Money Market Fund Plus Other Assets Less Liabilities	0.1

Schedule of Investments

PowerShares Global Clean Energy Portfolio (PBD)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Australia—1.5%
	284,834	Contact Energy Ltd.	$	1,392,348
		Austria—1.3%
	64,733	Verbund AG		1,254,333

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Brazil—2.6%
	73,034	Cosan SA Industria e Comercio	$	1,249,612
	82,000	Sao Martinho SA		1,225,441
				2,475,053

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

47

PowerShares Global Clean Energy Portfolio (PBD) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Canada—2.7%
	32,353	Ballard Power Systems, Inc.(a)(b)	$	117,921
	34,479	Canadian Solar, Inc.(a)(b)		935,070
	6,266	Hydrogenics Corp.(a)(b)		132,087
	139,847	Innergex Renewable Energy, Inc.(a)		1,350,748
				2,535,826
		Cayman Islands—1.0%
	264,140	Infinis Energy PLC(b)		970,080
		China—15.4%
	70,162	BYD Co. Ltd., H-Shares(b)		377,831
	7,829,229	China Datang Corp. Renewable Power Co. Ltd., H-Shares		1,040,147
	759,740	China Everbright International Ltd.		952,511
	1,232,554	China Longyuan Power Group Corp., H-Shares		1,268,666
	813,021	China Singyes Solar Technologies Holdings Ltd.		1,189,196
	3,501,112	China Suntien Green Energy Corp. Ltd., H-Shares		1,183,167
	3,377,369	GCL-Poly Energy Holdings Ltd.(b)		1,010,660
	7,213,392	Hanergy Solar Group Ltd.(b)		1,032,764
	3,426,994	Huaneng Renewables Corp. Ltd., H-Shares		1,060,873
	35,726	JA Solar Holdings Co. Ltd. ADR(a)(b)		344,041
	1,061,676	Shunfeng Photovoltaic International Ltd.(b)		1,368,032
	84,915	Trina Solar Ltd. ADR(a)(b)		949,350
	2,843,000	Trony Solar Holdings Co. Ltd.(b)		57,756
	755,931	Wasion Group Holdings Ltd.		541,145
	1,135,604	Xinjiang Goldwind Science & Technology Co. Ltd., H-Shares		1,233,325
	251,106	Yingli Green Energy Holding Co. Ltd. ADR(a)(b)		858,782
				14,468,246
		Denmark—4.6%
	25,038	Novozymes A/S, Class B		1,198,631
	8,083	Rockwool International A/S, Class B		1,557,123
	34,497	Vestas Wind Systems A/S(b)		1,530,338
				4,286,092
		Finland—1.2%
	48,807	Fortum Oyj		1,101,045
		France—2.4%
	11,062	Albioma		308,294
	15,470	Blue Solutions SA(b)		521,233
	4,083	Saft Groupe SA		145,098
	38,190	SunPower Corp.(a)(b)		1,276,310
				2,250,935
		Germany—5.8%
	96,306	Aixtron SE(b)		1,528,285
	17,617	CENTROTEC Sustainable AG		450,064
	84,076	Nordex SE(b)		1,338,870
	25,257	Osram Licht AG(b)		1,321,307
	19,713	SMA Solar Technology AG(a)		823,955
				5,462,481
		Hong Kong—1.9%
	1,712,840	China High Speed Transmission Equipment Group Co. Ltd.(b)		1,193,024
	5,911,619	Sinopoly Battery Ltd.(b)		366,004

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Hong Kong (continued)
	2,319,932	United Photovoltaics Group Ltd.(b)	$	182,534
				1,741,562
		Ireland—1.7%
	84,181	Kingspan Group PLC		1,583,322
		Israel—1.2%
	42,462	Ormat Technologies, Inc.		1,132,886
		Italy—1.7%
	446,442	Enel Green Power SpA		1,275,168
	184,890	Falck Renewables SpA(b)		352,238
				1,627,406
		Japan—3.3%
	84,603	GS Yuasa Corp.		478,713
	54,909	Japan Wind Development Co. Ltd.(b)		336,496
	374,155	Meidensha Corp.		1,549,364
	46,312	Takuma Co. Ltd.		374,486
	28,578	West Holdings Corp.		383,837
				3,122,896
		New Zealand—1.5%
	697,500	Mighty River Power Ltd.		1,393,192
		Norway—1.4%
	1,791,017	REC Silicon ASA(b)		994,725
	22,841	REC Solar ASA(b)		343,223
				1,337,948
		Philippines—0.4%
	2,865,629	Energy Development Corp.		359,329
		Portugal—1.4%
	191,446	EDP Renovaveis SA		1,310,523
		South Korea—1.9%
	36,883	Seoul Semiconductor Co. Ltd.		1,479,532
	13,434	Taewoong Co. Ltd.(b)		323,726
				1,803,258
		Spain—3.7%
	241,283	Abengoa SA, Class B		1,074,242
	15,528	Acciona SA		1,259,524
	117,381	Gamesa Corp. Tecnologica SA(b)		1,163,858
				3,497,624
		Sweden—1.9%
	63,426	NIBE Industrier AB, Class B		1,776,189
		Switzerland—1.0%
	76,318	Meyer Burger Technology AG(a)(b)		940,485
		Taiwan—5.0%
	674,131	Epistar Corp.(b)		1,471,131
	635,000	Motech Industries, Inc.(b)		1,072,422
	950,241	Neo Solar Power Corp.(b)		1,124,946
	631,000	Sino-American Silicon Products, Inc.(b)		1,055,219
				4,723,718
		Thailand—1.7%
	3,431,502	Energy Absolute PCL		1,240,685

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

48

PowerShares Global Clean Energy Portfolio (PBD) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Thailand (continued)
	575,574	SPCG PCL(b)	$	377,076
				1,617,761
		Turkey—0.6%
	834,829	Akenerji Elektrik Uretim AS(b)		508,609
		United Kingdom—1.4%
	31,237	Dialight PLC		504,772
	212,261	Renewables Infrastructure Group Ltd. (The)		369,166
	40,627	Ricardo PLC		464,770
				1,338,708
		United States—29.7%
	34,164	A.O. Smith Corp.		1,597,509
	11,393	Acuity Brands, Inc.		1,419,226
	11,049	Aerovironment, Inc.(b)		373,125
	57,613	Ameresco, Inc., Class A(b)		369,299
	74,095	Capstone Turbine Corp.(a)(b)		152,636
	62,810	Covanta Holding Corp.		1,158,844
	26,974	Cree, Inc.(b)		1,272,364
	22,956	EnerNOC, Inc.(b)		541,762
	40,069	Enphase Energy, Inc.(a)(b)		302,521
	16,129	First Solar, Inc.(b)		1,088,546
	19,519	Fuel Systems Solutions, Inc.(b)		204,559
	59,583	FuelCell Energy, Inc.(a)(b)		135,253
	10,313	Green Plains Renewable Energy, Inc.		308,359
	66,472	GT Advanced Technologies, Inc.(a)(b)		1,104,100
	57,866	International Rectifier Corp.(b)		1,506,831
	44,936	Itron, Inc.(b)		1,707,568
	34,716	Johnson Controls, Inc.		1,567,080
	33,744	LSB Industries, Inc.(b)		1,288,683
	9,081	Maxwell Technologies, Inc.(b)		136,760
	45,848	Pattern Energy Group, Inc.		1,228,726
	20,446	Plug Power, Inc.(a)(b)		95,074
	13,144	Polypore International, Inc.(a)(b)		455,834
	18,768	PowerSecure International, Inc.(b)		417,213
	17,603	Quantum Fuel Systems Technologies Worldwide, Inc.(a)(b)		116,356
	27,672	Renewable Energy Group, Inc.(b)		325,699
	41,407	Rubicon Technology, Inc.(a)(b)		419,453
	96,654	Silver Spring Networks, Inc.(a)(b)		1,447,877
	18,376	SolarCity Corp.(a)(b)		978,522
	81,269	Solazyme, Inc.(a)(b)		874,454
	60,052	SunEdison, Inc.(b)		1,154,800
	7,207	Tesla Motors, Inc.(b)		1,498,263
	47,390	Universal Display Corp.(a)(b)		1,234,510
	38,399	Veeco Instruments, Inc.(b)		1,419,611
				27,901,417
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $75,819,740)—99.9%		93,913,272

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—10.2%
	9,611,289	Invesco Liquid Assets Portfolio—Institutional Class(c)(d) (Cost $9,611,289)	$	9,611,289
		Total Investments (Cost $85,431,029)—110.1%		103,524,561
		Other assets less liabilities—(10.1)%		(9,459,915	)
		Net Assets—100.0%	$	94,064,646

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

^(a)  All or a portion of this security was out on loan at April 30, 2014.

^(b)  Non-income producing security.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

^(d)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2H. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of April 30, 2014.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Citibank	$	9,202,404	$	(9,202,404	)	$	—

* Amount does not include excess collateral received, if any.

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

49

Portfolio Composition

PowerShares Global Gold and Precious Metals Portfolio (PSAU)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Gold	75.3
Precious Metals & Minerals	15.6
Silver	9.2
Money Market Fund Plus Other Assets Less Liabilities	(0.1)

Schedule of Investments

PowerShares Global Gold and Precious Metals Portfolio (PSAU)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.1%
		Australia—5.8%
	125,889	Beadell Resources Ltd.(a)	$	76,984
	74,457	Evolution Mining Ltd.		58,985
	118,103	Newcrest Mining Ltd.(a)		1,144,620
	58,077	Regis Resources Ltd.		130,761
	68,579	Resolute Mining Ltd.(a)		38,443
				1,449,793
		Canada—50.9%
	23,785	African Barrick Gold PLC		99,723
	27,636	Agnico-Eagle Mines Ltd.		815,142
	20,331	Alamos Gold, Inc.		189,888
	24,537	Argonaut Gold, Inc.(a)		90,551
	39,477	AuRico Gold, Inc.		164,030
	107,050	B2Gold Corp.(a)		307,264
	103,329	Barrick Gold Corp.		1,801,161
	25,590	Centerra Gold, Inc.		131,045
	16,216	Continental Gold Ltd.(a)		57,627
	24,879	Detour Gold Corp.(a)		247,328
	16,841	Dundee Precious Metals, Inc.(a)		55,858
	113,637	Eldorado Gold Corp.		691,690
	18,637	First Majestic Silver Corp.(a)		176,614
	20,055	Fortuna Silver Mines, Inc.(a)		82,965
	20,566	Franco-Nevada Corp.		990,024
	33,636	Gabriel Resources Ltd.(a)		29,423
	78,307	Goldcorp, Inc.		1,931,542
	59,767	IAMGOLD Corp.		208,037
	181,420	Kinross Gold Corp.		735,632
	79,881	New Gold, Inc.(a)		403,244
	69,739	Osisko Mining Corp.(a)		498,839
	24,037	Pan American Silver Corp.		311,017
	12,542	Pretium Resources, Inc.(a)(b)		81,141
	18,728	Primero Mining Corp.(a)		118,260
	16,244	Sandstorm Gold Ltd.(a)(b)		89,846
	43,741	SEMAFO, Inc.		163,413
	12,855	Silver Standard Resources, Inc.(a)		127,092
	55,091	Silver Wheaton Corp.		1,220,340
	115,630	Torex Gold Resources, Inc.(a)		128,542

Number of Shares			Value
		Common Stocks (continued)
		Canada (continued)
	105,007	Yamana Gold, Inc.	$	785,555
				12,732,833
		China—1.4%
	38,495	China Gold International Resources Corp. Ltd.(a)		98,917
	41,289	Zhaojin Mining Industry Co. Ltd., H-Shares		24,764
	953,684	Zijin Mining Group Co. Ltd., H-Shares		232,490
				356,171
		Egypt—0.7%
	164,819	Centamin PLC(a)		180,203
		Hong Kong—0.6%
	588,279	China Precious Metal Resources Holdings Co. Ltd.(a)		59,186
	3,541,705	G-Resources Group Ltd.(a)		97,304
				156,490
		Japan—0.3%
	5,226	Asahi Holdings, Inc.		82,521
		Jersey Island—4.3%
	13,217	Randgold Resources Ltd.		1,066,780
		Mexico—3.4%
	26,888	Fresnillo PLC		386,596
	20,178	Industrias Penoles S.A.B. de C.V.		469,556
				856,152
		Peru—0.3%
	26,882	Hochschild Mining PLC		74,896
		Russia—1.2%
	31,510	Polymetal International PLC		301,147
		Singapore—0.1%
	164,005	LionGold Corp. Ltd.(a)		12,803
		South Africa—12.9%
	59,513	AngloGold Ashanti Ltd.		1,072,982
	122,240	Gold Fields Ltd.		512,005

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

50

PowerShares Global Gold and Precious Metals Portfolio (PSAU) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks (continued)
		South Africa (continued)
	67,701	Great Basin Gold Ltd.(a)	$	0
	59,646	Harmony Gold Mining Co. Ltd.(a)		196,986
	81,890	Impala Platinum Holdings Ltd.		920,676
	55,066	Northam Platinum Ltd.(a)		214,383
	116,613	Sibanye Gold Ltd.		301,190
				3,218,222
		Turkey—0.3%
	7,283	Koza Altin Isletmeleri AS		72,403
		United Kingdom—3.1%
	9,412	Anglo American Platinum Ltd.(a)		446,865
	68,660	Lonmin PLC(a)		328,678
				775,543
		United States—14.8%
	36,964	Alacer Gold Corp.		88,246
	16,412	Coeur Mining, Inc.(a)		142,128
	52,914	Hecla Mining Co.		162,446
	34,080	McEwen Mining, Inc.(a)		81,792
	76,071	Newmont Mining Corp.		1,888,843
	9,612	Royal Gold, Inc.		636,314
	18,931	Stillwater Mining Co.(a)		298,731
	17,385	Tahoe Resources, Inc.(a)		386,369
				3,684,869
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $39,833,214)—100.1%		25,020,826
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—0.5%
	132,830	Invesco Liquid Assets Portfolio—Institutional Class(c)(d) (Cost $132,830)		132,830
		Total Investments (Cost $39,966,044)—100.6%		25,153,656
		Other assets less liabilities—(0.6)%		(147,051	)
		Net Assets—100.0%	$	25,006,605

Notes to Schedule of Investments:

^(a)  Non-income producing security.

^(b)  All or a portion of this security was out on loan at April 30, 2014.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

^(d)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2H. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of April 30, 2014.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Citibank	$	125,264	$	(125,264	)	$	—

* Amount does not include excess collateral received, if any.

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

51

Portfolio Composition

PowerShares Global Water Portfolio (PIO)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Industrials	50.3
Utilities	41.4
Health Care	3.6
Information Technology	3.1
Materials	1.6
Money Market Fund Plus Other Assets Less Liabilities	(0.0)

Schedule of Investments

PowerShares Global Water Portfolio (PIO)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Brazil—5.4%
	1,223,417	Cia de Saneamento Basico do Estado de Sao Paulo	$	11,561,139
	210,800	Cia de Saneamento de Minas Gerais-Copasa MG		3,282,328
				14,843,467
		Canada—0.1%
	54,457	Pure Technologies Ltd.		350,823
		Cayman Islands—0.4%
	96,910	Consolidated Water Co. Ltd.		1,126,094
		China—7.8%
	15,716,442	Beijing Enterprises Water Group Ltd.		9,973,738
	97,718,367	HanKore Environment Tech Group Ltd.(a)		8,796,093
	5,008,350	Tianjin Capital Environmental Protection Group Co. Ltd., H-Shares		2,655,065
				21,424,896
		Finland—2.2%
	291,029	Kemira Oyj		4,438,786
	85,170	Uponor Oyj		1,685,178
				6,123,964
		France—12.0%
	563,050	Suez Environnement Co.		11,046,855
	1,189,346	Veolia Environnement SA(b)		22,163,724
				33,210,579
		Hong Kong—0.1%
	2,102,061	China Water Industry Group Ltd.(a)		344,340
		Japan—4.0%
	11,992	Ebara Jitsugyo Co. Ltd.		167,289
	442,142	Kurita Water Industries Ltd.		9,305,975

Number of Shares			Value
		Common Stocks (continued)
		Japan (continued)
	96,957	Organo Corp.	$	461,293
	101,630	Torishima Pump Manufacturing Co. Ltd.		1,245,627
				11,180,184
		Malaysia—0.5%
	1,500,900	Puncak Niaga Holding Bhd		1,342,100
		Singapore—1.1%
	656,616	Hyflux Ltd.		627,665
	2,260,653	United Envirotech Ltd.		2,350,063
				2,977,728
		Switzerland—7.0%
	58,226	Geberit AG		19,396,543
		United Kingdom—12.1%
	361,330	Halma PLC		3,425,846
	554,608	Pennon Group PLC		7,093,863
	363,203	Severn Trent PLC		11,315,136
	861,995	United Utilities Group PLC		11,585,954
				33,420,799
		United States—47.3%
	191,944	American Water Works Co., Inc.		8,739,210
	204,495	Aqua America, Inc.		5,130,779
	277,316	Flowserve Corp.		20,257,934
	128,623	Itron, Inc.(a)		4,887,674
	54,405	Lindsay Corp.(b)		4,794,713
	130,935	Pall Corp.		11,018,180
	278,689	Pentair Ltd.		20,703,806
	166,059	Roper Industries, Inc.		23,073,898
	74,879	Valmont Industries, Inc.		11,150,232
	101,081	Waters Corp.(a)		9,960,522

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

52

PowerShares Global Water Portfolio (PIO) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks (continued)
		United States (continued)
	286,161	Xylem, Inc.	$	10,756,792
				130,473,740
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $210,885,380)—100.0%		276,215,257
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—7.9%
	21,752,467	Invesco Liquid Assets Portfolio—Institutional Class(c)(d) (Cost $21,752,467)		21,752,467
		Total Investments (Cost $232,637,847)—107.9%		297,967,724
		Other assets less liabilities—(7.9)%		(21,890,570	)
		Net Assets—100.0%	$	276,077,154

Notes to Schedule of Investments:

^(a)  Non-income producing security.

^(b)  All or a portion of this security was out on loan at April 30, 2014.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

^(d)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2H. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of April 30, 2014.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Citibank	$	19,890,149	$	(19,890,149	)	$	—

* Amount does not include excess collateral received, if any.

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

53

Portfolio Composition

PowerShares International BuyBack Achievers^TM Portfolio (IPKW)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Financials	28.9
Consumer Discretionary	15.7
Consumer Staples	15.1
Materials	12.0
Health Care	7.9
Energy	7.8
Information Technology	7.3
Industrials	3.2
Telecommunication Services	2.1
Other Assets Less Liabilities	0.0

Schedule of Investments

PowerShares International BuyBack Achievers^TM Portfolio (IPKW)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Australia—5.3%
	217,972	Stockland REIT	$	785,632
		Canada—8.5%
	16,691	AGF Management Ltd., Class B		185,701
	7,762	Agrium, Inc.		744,549
	31,601	Celestica, Inc.(a)		350,146
				1,280,396
		Denmark—8.4%
	30,512	GN Store Nord A/S		735,728
	18,054	Topdanmark A/S(a)		527,562
				1,263,290
		France—2.6%
	48,017	Havas SA		381,492
		Germany—4.8%
	8,603	Drillisch AG		320,161
	24,868	GAGFAH SA(a)		392,390
				712,551
		Hong Kong—0.6%
	55,337	Man Wah Holdings Ltd.		90,648
		Japan—30.5%
	1,732	Adastria Holdings Co. Ltd.		37,658
	4,519	Ai Holdings Corp.		72,021
	52,568	Ajinomoto Co., Inc.		772,953
	204,245	Aozora Bank Ltd.		607,836
	39,587	Fujikura Ltd.		170,517
	13,140	Itoham Foods, Inc.		59,558

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Japan (continued)
	5,369	Izumi Co. Ltd.	$	157,102
	14,434	Kurita Water Industries Ltd.		303,799
	23,883	Nippon Meat Packers, Inc.		414,066
	2,753	Sangetsu Co. Ltd.		70,907
	9,963	Santen Pharmaceutical Co. Ltd.		444,751
	167,273	Sumitomo Mitsui Trust Holdings, Inc.		689,397
	3,087	T-Gaia Corp.		27,198
	35,277	TonenGeneral Sekiyu K.K.		333,258
	26,266	USS Co. Ltd.		382,869
	1,577	Yellow Hat Ltd.		30,212
				4,574,102
		Mexico—1.9%
	32,842	Gruma SAB de CV, Class B(a)		290,306
		Russia—1.5%
	32,701	Severstal OAO GDR(a)		230,215
		South Africa—2.7%
	6,539	Assore Ltd.		252,447
	57,238	Super Group Ltd.(a)		153,977
				406,424
		South Korea—1.5%
	6,323	Samsung Card Co. Ltd.		229,165
		Switzerland—6.1%
	294	Forbo Holding AG(a)		304,034
	33,810	GAM Holding AG(a)		614,413
				918,447

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

54

PowerShares International BuyBack Achievers^TM Portfolio (IPKW) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		United Kingdom—21.7%
	40,501	AMEC PLC	$	844,592
	18,224	Betfair Group PLC		297,567
	32,495	CSR PLC		315,225
	27,026	Micro Focus International PLC		353,669
	41,736	SVG Capital PLC(a)		299,512
	22,745	WH Smith PLC		420,162
	213,347	William Morrison Supermarkets PLC		723,736
				3,254,463
		United States—3.9%
	6,238	Domtar Corp.		581,539
		Total Investments (Cost $15,129,510)—100.0%		14,998,670
		Other assets less liabilities—0.0%		4,120
		Net Assets—100.0%	$	15,002,790

Investment Abbreviations:

GDR—Global Depositary Receipt

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Non-income producing security.

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

55

Portfolio Composition

PowerShares S&P International Developed High Quality Portfolio (IDHQ)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Consumer Discretionary	22.9
Industrials	19.5
Consumer Staples	18.0
Health Care	11.3
Financials	9.3
Materials	6.8
Utilities	4.3
Energy	3.5
Information Technology	3.2
Telecommunication Services	1.1
Other Assets Less Liabilities	0.1

Schedule of Investments

PowerShares S&P International Developed High Quality Portfolio (IDHQ)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Australia—7.5%
	11,108	ALS Ltd.	$	77,191
	4,858	Ansell Ltd.		81,426
	4,115	ARB Corp. Ltd.		46,516
	1,545	Australia & New Zealand Banking Group Ltd.		49,345
	15,239	Cardno Ltd.		98,555
	8,127	Coca-Cola Amatil Ltd.		69,653
	1,632	Cochlear Ltd.		88,747
	1,884	Commonwealth Bank of Australia		137,729
	734	CSL Ltd.		46,538
	2,825	Domino’s Pizza Enterprises Ltd.		51,827
	5,187	Iress Ltd.		39,794
	2,268	JB Hi-Fi Ltd.		40,557
	15,432	M2 Group Ltd.		80,644
	8,371	McMillan Shakespeare Ltd.		75,312
	16,241	Mermaid Marine Australia Ltd.		32,203
	15,530	Metcash Ltd.		40,002
	5,703	Monadelphous Group Ltd.		92,366
	15,727	Navitas Ltd.		107,103
	2,237	Ramsay Health Care Ltd.		92,877
	10,487	Slater & Gordon Ltd.		45,669
	2,908	Sonic Healthcare Ltd.		47,691
	3,858	Super Retail Group Ltd.		36,318
	7,129	UGL Ltd.		44,586
	1,110	Wesfarmers Ltd.		43,926
	2,879	Woolworths Ltd.		99,553
				1,666,128

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Austria—0.2%
	682	Andritz AG	$	42,303
		Belgium—1.5%
	1,556	Colruyt SA		87,895
	1,476	Delhaize Group SA		109,572
	882	D’ieteren SA		40,761
	8,210	Econocom Group		88,018
				326,246
		Canada—9.7%
	3,534	Alimentation Couche Tard, Inc., Class B		99,472
	2,021	ATCO Ltd., Class I		98,541
	1,493	Bank of Nova Scotia		90,604
	1,036	BCE, Inc.		46,068
	1,622	Canadian National Railway Co.		94,886
	940	Canadian Tire Corp. Ltd., Class A		92,206
	2,588	Canadian Utilities Ltd., Class A		95,483
	2,443	Canadian Western Bank		82,676
	1,533	Emera, Inc.		47,354
	2,019	Enbridge, Inc.		97,303
	3,078	Fortis, Inc.		90,311
	2,959	Great-West Lifeco, Inc.		83,152
	1,431	Husky Energy, Inc.		46,707
	851	IGM Financial, Inc.		42,331
	1,020	Industrial Alliance Insurance & Financial Services, Inc.		42,057
	2,034	Laurentian Bank of Canada		87,257

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

56

PowerShares S&P International Developed High Quality Portfolio (IDHQ) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Canada (continued)
	3,309	Loblaw Cos. Ltd.	$	143,673
	2,202	Manulife Financial Corp.		41,293
	2,174	Metro, Inc.		133,833
	1,080	National Bank of Canada		44,767
	1,567	Power Corp. of Canada		44,064
	1,352	Power Financial Corp.		42,896
	1,094	Richelieu Hardware Ltd.		48,936
	681	Royal Bank of Canada		45,392
	1,923	Saputo, Inc.		102,699
	1,950	SNC-Lavalin Group, Inc.		88,345
	1,313	Suncor Energy, Inc.		50,584
	1,339	TELUS Corp.		47,120
	768	Tim Hortons, Inc.		42,072
	1,815	Toromont Industries Ltd.		44,835
				2,156,917
		China—0.7%
	76,000	Daphne International Holdings Ltd.		30,487
	18,000	ENN Energy Holdings Ltd.		125,837
				156,324
		Denmark—1.4%
	678	Coloplast A/S, Class B		56,854
	3,497	Novo Nordisk A/S, Class B		157,666
	2,055	Novozymes A/S, Class B		98,378
				312,898
		Finland—0.4%
	988	Kone Oyj, Class B		42,221
	1,571	Orion Oyj, Class B		47,856
				90,077
		France—5.9%
	988	Air Liquide SA		141,238
	243	Christian Dior SA		49,916
	357	Dassault Systemes		43,872
	788	Essilor International SA		84,228
	2,757	Eutelsat Communications SA		94,536
	132	Hermes International		46,333
	990	Ipsos		38,353
	429	Kering		94,816
	509	LVMH Moet Hennessy Louis Vuitton SA		100,040
	400	Pernod Ricard SA		47,980
	492	Publicis Groupe SA		41,886
	677	Rubis		48,136
	850	Sanofi		91,952
	519	SEB SA		47,797
	850	Sodexo		91,575
	1,314	Vinci SA		99,003
	602	Virbac SA		144,195
				1,305,856
		Germany—5.0%
	706	Adidas AG		75,307
	1,671	BayWa AG		94,600
	582	Bechtle AG		51,654
	414	Bilfinger SE		49,154
	831	CTS Eventim AG		52,887

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Germany (continued)
	772	Fielmann AG	$	104,312
	281	Fresenius SE & Co. KGaA		42,683
	1,591	Fuchs Petrolub SE		146,280
	1,364	Fuchs Petrolub SE (Preference Shares)		136,870
	3,109	Gerry Weber International AG		163,810
	455	MTU Aero Engines AG		42,792
	138	Rational AG		44,009
	1,468	Rhoen Klinikum AG		47,355
	2,273	Scania AB, Class B		68,711
				1,120,424
		Greece—0.2%
	3,622	Motor Oil (Hellas) Corinth Refineries SA		45,600
		Hong Kong—2.7%
	10,600	Bank of East Asia Ltd. (The)		43,683
	3,000	Cheung Kong (Holdings) Ltd.		51,078
	28,000	Chow Sang Sang Holdings International Ltd.		68,692
	4,500	Dairy Farm International Holdings Ltd.		45,945
	19,170	Hong Kong & China Gas Co. Ltd.		44,211
	3,000	Jardine Cycle & Carriage Ltd.		112,104
	1,300	Jardine Strategic Holdings Ltd.		46,410
	30,000	Li & Fung Ltd.		43,571
	74,000	SA SA International Holdings Ltd.		62,042
	15,500	Techtronic Industries Co.		49,382
	14,000	Yue Yuen Industrial (Holdings) Ltd.		43,249
				610,367
		Ireland—1.4%
	110,572	Bank of Ireland(a)		43,388
	1,667	CRH PLC		48,331
	908	DCC PLC		46,502
	640	Kerry Group PLC, Class A		50,492
	1,038	Paddy Power PLC		80,022
	7,698	UDG Healthcare PLC		46,625
				315,360
		Italy—2.5%
	1,606	Brembo SpA		59,344
	1,900	Danieli SpA—Officine Meccaniche Danieli & C. RSP		45,523
	10,664	Davide Campari-Milano SpA		92,561
	6,229	Recordati SpA		108,824
	6,318	Saipem SpA		169,072
	558	Tod’s SpA		78,066
				553,390
		Japan—20.9%
	1,090	ABC-Mart, Inc.		48,925
	1,190	Adastria Holdings Co. Ltd.		25,874
	1,600	AEON Mall Co. Ltd.		38,124
	1,800	Ain Pharmaciez, Inc.		79,207
	3,000	Air Water, Inc.		42,144
	4,692	Arcs Co. Ltd.		94,070
	4,694	Asahi Group Holdings Ltd.		129,493
	8,988	Bank of Yokohama Ltd. (The)		45,138
	400	Central Japan Railway Co.		49,104
	1,000	CyberAgent, Inc.		41,214

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

57

PowerShares S&P International Developed High Quality Portfolio (IDHQ) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Japan (continued)
	2,600	Daihatsu Motor Co. Ltd.	$	43,041
	1,500	Daiichikosho Co. Ltd.		43,289
	694	Daikin Industries Ltd.		40,091
	2,100	Daiseki Co. Ltd.		33,304
	896	Daito Trust Construction Co. Ltd.		91,135
	2,000	DeNA Co. Ltd.		33,676
	788	Denso Corp.		35,886
	600	East Japan Railway Co.		43,777
	2,800	F@N Communications, Inc.		46,955
	300	FANUC Corp.		54,038
	100	Fast Retailing Co. Ltd.		31,101
	2,400	FP Corp.		74,714
	4,000	Fujitsu General Ltd.		46,128
	1,100	Fuyo General Lease Co. Ltd.		37,851
	7,000	GS Yuasa Corp.		39,608
	894	Hisamitsu Pharmaceutical Co., Inc.		37,458
	2,400	Hokuto Corp.		48,211
	2,900	House Foods Group, Inc.		48,262
	1,312	Izumi Co. Ltd.		38,390
	988	JGC Corp.		32,015
	2,300	JSR Corp.		37,714
	6,000	Kaken Pharmaceutical Co. Ltd.		103,495
	5,998	Kansai Paint Co. Ltd.		84,025
	1,400	Kao Corp.		52,724
	700	KDDI Corp.		37,292
	6,300	Kewpie Corp.		90,599
	1,100	Kintetsu World Express, Inc.		43,612
	3,100	Kirin Holdings Co. Ltd.		42,942
	1,594	Kobayashi Pharmaceutical Co. Ltd.		96,748
	5,012	Koito Manufacturing Co. Ltd.		109,317
	4,690	K’s Holdings Corp.		136,224
	3,700	Kuraray Co. Ltd.		41,546
	2,094	Kurita Water Industries Ltd.		44,073
	2,990	Maeda Road Construction Co. Ltd.		46,336
	1,792	Miraca Holdings, Inc.		77,715
	3,100	Mitsui & Co. Ltd.		43,974
	700	Mochida Pharmaceutical Co. Ltd.		49,339
	1,800	NEC Networks & System Integration Corp.		38,097
	3,806	NHK Spring Co. Ltd.		34,353
	2,800	Nichi-iko Pharmaceutical Co. Ltd.		43,473
	1,200	Nihon Kohden Corp.		49,163
	3,000	Nihon Nohyaku Co. Ltd.		37,386
	3,300	Nippon Densetsu Kogyo Co. Ltd.		48,975
	1,900	Nitori Holdings Co. Ltd.		87,141
	7,800	NTT Urban Development Corp.		68,570
	300	Oriental Land Co. Ltd.		44,949
	800	Relo Holdings, Inc.		43,857
	588	Rinnai Corp.		48,928
	2,800	Rohto Pharmaceutical Co. Ltd.		49,421
	496	Ryohin Keikaku Co. Ltd.		55,742
	6,000	San-in Godo Bank Ltd. (The)		39,589
	700	Sawai Pharmaceutical Co. Ltd.		43,377
	1,396	Shimamura Co. Ltd.		130,102
	800	Shin-Etsu Chemical Co. Ltd.		46,974
	1,794	Stanley Electric Co. Ltd.		39,691
	998	Sugi Holdings Co. Ltd.		44,942

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Japan (continued)
	1,400	Sumitomo Real Estate Sales Co. Ltd.	$	42,007
	988	Sumitomo Realty & Development Co. Ltd.		38,301
	2,896	Sundrug Co. Ltd.		118,505
	1,512	Suzuki Motor Corp.		39,003
	3,000	Sysmex Corp.		95,007
	2,000	Taikisha Ltd.		43,250
	1,000	Takeda Pharmaceutical Co. Ltd.		44,914
	2,200	Tokai Rika Co. Ltd.		38,250
	2,900	Toshiba Plant Systems & Services Corp.		42,670
	2,400	Totetsu Kogyo Co. Ltd.		48,799
	2,100	Towa Pharmaceutical Co. Ltd.		89,736
	1,000	Toyo Suisan Kaisha Ltd.		32,012
	996	Toyota Industries Corp.		45,924
	690	Toyota Motor Corp.		37,259
	1,592	Unicharm Corp.		86,341
	3,200	Valor Co. Ltd.		41,476
	14,400	Yahoo! Japan Corp.		62,590
	13,208	Yamada Denki Co. Ltd.		48,746
	1,300	Yamato Kogyo Co. Ltd.		37,467
				4,656,885
		Jersey Island—0.3%
	707	Randgold Resources Ltd.		57,064
		Luxembourg—0.4%
	2,641	SES SA FDR		99,402
		Netherlands—1.3%
	2,430	Arcadis NV		86,187
	718	Heineken Holding NV		45,795
	676	Heineken NV		46,865
	1,565	Koninklijke Vopak NV		77,869
	13,983	Royal Imtech NV(a)		27,318
				284,034
		New Zealand—0.2%
	6,690	Ryman Healthcare Ltd.		49,715
		Norway—0.2%
	1,039	Yara International ASA		48,949
		Portugal—0.6%
	11,493	EDP-Energias de Portugal SA		55,775
	4,508	Jeronimo Martins SGPS SA		78,788
				134,563
		Singapore—1.2%
	10,000	Keppel Corp. Ltd.		83,881
	36,000	Olam International Ltd.		63,950
	25,000	SembCorp Marine Ltd.		81,053
	15,000	Super Group Ltd.		41,821
				270,705
		South Korea—7.4%
	94	Amorepacific Corp.		121,446
	2,198	Coway Co. Ltd.		173,364
	1,638	Dongbu Insurance Co. Ltd.		90,357
	2,857	Dongsuh Co., Inc.		43,686
	910	Hanssem Co. Ltd.		74,329

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

58

PowerShares S&P International Developed High Quality Portfolio (IDHQ) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		South Korea (continued)
	653	Hotel Shilla Co. Ltd.	$	54,917
	298	Hyundai Department Store Co. Ltd.		38,357
	2,710	Hyundai Greenfood Co. Ltd.		45,503
	168	Hyundai Mobis		47,963
	147	Korea Zinc Co. Ltd.		48,440
	1,420	LF Corp.		36,830
	337	LG Chem Ltd.		85,775
	639	LG Chem Ltd. (Preference Shares)		92,452
	255	LG Household & Health Care Ltd.		116,481
	62	Lotte Food Co. Ltd.		46,442
	235	OCI Co. Ltd.(a)		41,164
	119	Ottogi Corp.		47,160
	3,608	Partron Co. Ltd.		48,884
	628	S1 Corp.		47,709
	2,237	Samsung Engineering Co. Ltd.(a)		167,347
	185	Samsung Fire & Marine Insurance Co. Ltd.		43,864
	2,450	Samsung Heavy Industries Co. Ltd.		66,864
	183	Shinsegae Co. Ltd.		39,671
	231	Yuhan Corp.		40,575
				1,659,580
		Spain—5.5%
	44,410	Abengoa SA, Class B		197,723
	3,878	Abertis Infraestructuras SA		87,135
	169	Construcciones y Auxiliar de Ferrocarriles SA		80,843
	1,883	Ebro Foods SA		43,340
	1,741	Gas Natural SDG SA		49,885
	1,013	Hochtief AG		94,092
	6,979	Iberdrola SA		48,722
	2,439	Indra Sistemas SA		45,688
	822	Industria de Diseno Textil SA (Inditex)		123,263
	18,981	Mapfre SA		79,875
	12,808	Prosegur Cia de Seguridad SA		85,776
	1,991	Red Electrica Corp. SA		163,649
	2,676	Telefonica SA		44,785
	1,519	Viscofan SA		79,087
				1,223,863
		Sweden—2.1%
	1,762	Alfa Laval AB		46,639
	5,830	Elekta AB, Class B		81,408
	4,012	Getinge AB, Class B		117,647
	1,982	Hennes & Mauritz AB, Class B		80,534
	1,953	NIBE Industrier AB, Class B		54,692
	3,367	Skandinaviska Enskilda Banken AB, Class A		46,267
	1,468	Swedish Match AB		50,211
				477,398
		Switzerland—1.2%
	42	Galenica AG		42,694
	1,932	Osem Investments Ltd.		45,843
	318	Sonova Holding AG		45,870
	327	Syngenta AG		129,470
				263,877
		United Kingdom—18.6%
	5,586	Aberdeen Asset Management PLC		41,200
	3,961	Admiral Group PLC		93,503

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		United Kingdom (continued)
	3,129	Aggreko PLC	$	83,320
	2,478	ARM Holdings PLC		37,302
	6,584	Ashmore Group PLC		38,955
	3,196	Associated British Foods PLC		160,333
	1,519	AstraZeneca PLC		119,627
	1,169	Aveva Group PLC		41,610
	2,187	Babcock International Group PLC		44,093
	1,662	Bellway PLC		40,384
	4,027	BG Group PLC		81,462
	3,326	Bovis Homes Group PLC		44,395
	2,553	British American Tobacco PLC		147,302
	3,136	British Sky Broadcasting Group PLC		46,599
	1,854	Bunzl PLC		52,625
	2,557	Capita PLC		46,846
	16,187	Carillion PLC		101,076
	2,786	Compass Group PLC		44,315
	3,637	Dechra Pharmaceuticals PLC		42,375
	2,728	Diageo PLC		83,721
	1,801	Dignity PLC		43,518
	3,695	Diploma PLC		41,085
	5,065	Domino’s Pizza Group PLC		43,960
	2,436	Experian PLC		46,727
	2,220	Galliford Try PLC		44,533
	3,857	Genus PLC		66,039
	11,871	Greggs PLC		107,240
	8,620	Halma PLC		81,728
	1,525	IMI PLC		38,626
	12,573	Intermediate Capital Group PLC		94,177
	3,994	Interserve PLC		44,578
	2,621	Intertek Group PLC		128,611
	8,978	ITE Group PLC		34,868
	7,345	J Sainsbury PLC		41,635
	4,093	John Wood Group PLC		54,150
	23,500	Lifestyle International Holdings Ltd.		46,013
	29,940	Man Group PLC		49,822
	5,012	Meggitt PLC		40,343
	16,783	Mitie Group PLC		90,146
	9,978	N Brown Group PLC		86,432
	857	Next PLC		94,350
	4,015	Pennon Group PLC		51,355
	2,097	Persimmon PLC(a)		46,457
	1,719	Reckitt Benckiser Group PLC		138,600
	16,094	Redrow PLC		77,885
	975	Rightmove PLC		39,677
	1,905	Rotork PLC		83,344
	1,756	SABMiller PLC		95,491
	6,652	Sage Group PLC (The)		47,894
	15,978	Serco Group PLC		91,758
	3,044	Smith & Nephew PLC		47,262
	1,789	Spirax-Sarco Engineering PLC		87,573
	1,964	SSE PLC		50,574
	4,030	Standard Chartered PLC		87,204
	1,149	Ted Baker PLC		35,873
	24,566	Tesco PLC		121,518
	1,415	Travis Perkins PLC		40,738
	1,451	Victrex PLC		45,596

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

59

PowerShares S&P International Developed High Quality Portfolio (IDHQ) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		United Kingdom (continued)
	1,285	Weir Group PLC (The)	$	58,367
	2,628	WH Smith PLC		48,546
	20,804	William Morrison Supermarkets PLC		70,573
	3,932	WPP PLC		84,586
				4,160,495
		United States—0.9%
	1,320	Halla Visteon Climate Control Corp.		55,058
	3,116	Imperial Oil Ltd.		151,960
				207,018
		Total Investments (Cost $18,708,798)—99.9%		22,295,438
		Other assets less liabilities—0.1%		21,909
		Net Assets—100.0%	$	22,317,347

Investment Abbreviations:

FDR—Fiduciary Depositary Receipt

RSP—Registered Savings Plan Shares

Notes to Schedule of Investments:

^(a)  Non-income producing security.

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

April 30, 2014

(Unaudited)

	PowerShares DWA Developed Markets Momentum Portfolio (PIZ)			PowerShares DWA Emerging Markets Momentum Portfolio (PIE)			PowerShares Emerging Markets Infrastructure Portfolio (PXR)			PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio (PAF)			PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio (PXF)			PowerShares FTSE RAFI Developed Markets ex- U.S. Small-Mid Portfolio (PDN)
Assets:
Unaffiliated investments, at value(a)	$	732,308,577		$	282,172,182		$	42,891,130		$	46,153,023		$	810,463,688		$	112,936,534
Affiliated investments, at value		—			—			1,465,775			—			37,755,422			2,492,045
Total investments, at value		732,308,577			282,172,182			44,356,905			46,153,023			848,219,110			115,428,579
Foreign currencies, at value		65,716			9,309			304,002			—			—			—
Receivables:
Investments sold		2,620,704			—			—			—			675,526			47,644
Dividends		2,228,927			162,101			88,140			58,462			2,842,524			435,962
Foreign tax reclaims		422,037			25,403			117			1,647			731,002			71,421
Shares sold		—			1,344,468			—			—			11,512,192			—
Security lending		—			—			2,757			—			105,307			—
Total Assets		737,645,961			283,713,463			44,751,921			46,213,132			864,085,661			115,983,606
Liabilities:
Due to custodian		768,682			366,232			365,636			24,450			894,704			212,453
Due to foreign custodian		—			—			—			1,285			98,312			178,709
Payables:
Shares repurchased		2,636,903			—			—			—			—			—
Investments purchased		695,129			1,300,776			—			—			14,024,732			3,256
Collateral upon return of securities loaned		—			—			1,465,775			—			37,755,422			2,492,045
Accrued unitary management fees		483,465			207,061			27,801			18,615			289,078			45,241
Accrued expenses		2,726			1,103			1,232			—			17,915			1,233
Total Liabilities		4,586,905			1,875,172			1,860,444			44,350			53,080,163			2,932,937
Net Assets	$	733,059,056		$	281,838,291		$	42,891,477		$	46,168,782		$	811,005,498		$	113,050,669
Net Assets Consist of:
Shares of beneficial interest	$	689,922,921		$	349,758,078		$	79,567,598		$	48,602,768		$	736,289,238		$	106,175,078
Undistributed net investment income (loss)		1,388,103			(874,783	)		80,960			(190,654	)		4,393,198			(418,064	)
Undistributed net realized gain (loss)		(44,661,679	)		(92,009,234	)		(31,471,740	)		(6,813,912	)		(39,279,406	)		(4,457,462	)
Net unrealized appreciation (depreciation)		86,409,711			24,964,230			(5,285,341	)		4,570,580			109,602,468			11,751,117
Net Assets	$	733,059,056		$	281,838,291		$	42,891,477		$	46,168,782		$	811,005,498		$	113,050,669
Shares outstanding (unlimited amount authorized, $0.01 par value)		27,800,000			15,900,000			1,150,000			800,000			18,200,000			4,000,000
Net asset value	$	26.37		$	17.73		$	37.30		$	57.71		$	44.56		$	28.26
Market price	$	26.39		$	17.82		$	37.25		$	57.77		$	44.78		$	28.20
Unaffiliated investments, at cost	$	645,918,542		$	257,208,029		$	48,180,092		$	41,582,541		$	700,882,768		$	101,185,400
Affiliated investments, at cost	$	—		$	—		$	1,465,775		$	—		$	37,755,422		$	2,492,045
Total investments, at cost	$	645,918,542		$	257,208,029		$	49,645,867		$	41,582,541		$	738,638,190		$	103,677,445
Foreign currencies, at cost	$	65,723		$	9,402		$	300,394		$	(1,286	)	$	(97,619	)	$	(176,448	)
(a) Includes securities on loan with an aggregate value of:	$	—		$	—		$	1,394,875		$	—		$	35,612,341		$	2,418,372

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

62

PowerShares FTSE RAFI Emerging Markets Portfolio (PXH)			PowerShares Global Agriculture Portfolio (PAGG)			PowerShares Global Clean Energy Portfolio (PBD)			PowerShares Global Gold and Precious Metals Portfolio (PSAU)			PowerShares Global Water Portfolio (PIO)			PowerShares International BuyBack AchieversTM Portfolio  (IPKW)			PowerShares S&P International Developed High Quality Portfolio (IDHQ)
$	361,975,643		$	75,452,207		$	93,913,272		$	25,020,826		$	276,215,257		$	14,998,670		$	22,295,438
	—			5,477,500			9,611,289			132,830			21,752,467			—			—
	361,975,643			80,929,707			103,524,561			25,153,656			297,967,724			14,998,670			22,295,438
	80,031			2,156			64,628			126			—			144			—
	4,264,133			—			—			—			—			436,545			1,791
	734,919			76,574			49,878			11,980			1,526,958			31,195			86,109
	6,127			168,778			102,257			14,465			323,876			2,857			37,597
	—			—			—			—			2,380,660			—			—
	—			6,462			50,548			300			55,589			—			—
	367,060,853			81,183,677			103,791,872			25,180,527			302,254,807			15,469,411			22,420,935
	323,750			144,659			48,866			25,617			394,519			25,189			64,430
	—			—			—			—			4,937			—			234
	7,080,345			—			—			—			—			—			—
	—			—			—			—			3,828,139			435,169			27,014
	—			5,477,500			9,611,289			132,830			21,752,467			—			—
	147,172			46,835			59,710			15,475			170,116			6,263			8,155
	—			871			7,361			—			27,475			—			3,755
	7,551,267			5,669,865			9,727,226			173,922			26,177,653			466,621			103,588
$	359,509,586		$	75,513,812		$	94,064,646		$	25,006,605		$	276,077,154		$	15,002,790		$	22,317,347
$	442,946,112		$	81,731,556		$	289,089,261		$	47,128,864		$	365,579,476		$	15,085,772		$	66,628,013
	1,668,956			139,612			103,787			(90,664	)		2,030,692			60,852			52,020
	(59,498,565	)		(5,201,425	)		(213,224,609	)		(7,218,887	)		(156,880,226	)		(12,871	)		(47,950,825	)
	(25,606,917	)		(1,155,931	)		18,096,207			(14,812,708	)		65,347,212			(130,963	)		3,588,139
$	359,509,586		$	75,513,812		$	94,064,646		$	25,006,605		$	276,077,154		$	15,002,790		$	22,317,347
	17,850,000			2,450,000			7,250,000			1,200,000			11,600,000			600,001			1,100,000
$	20.14		$	30.82		$	12.97		$	20.84		$	23.80		$	25.00		$	20.29
$	20.16		$	30.80		$	12.99		$	20.81		$	23.86		$	25.11		$	20.36
$	387,582,036		$	76,613,709		$	75,819,740		$	39,833,214		$	210,885,380		$	15,129,510		$	18,708,798
$	—		$	5,477,500		$	9,611,289		$	132,830		$	21,752,467		$	—		$	—
$	387,582,036		$	82,091,209		$	85,431,029		$	39,966,044		$	232,637,847		$	15,129,510		$	18,708,798
$	80,031		$	2,095		$	64,407		$	126		$	(4,943	)	$	144		$	(236	)
$	—		$	5,400,258		$	9,202,404		$	125,264		$	19,890,149		$	—		$	—

63

Statements of Operations

For the six months ended April 30, 2014

(Unaudited)

	PowerShares DWA Developed Markets Momentum Portfolio (PIZ)			PowerShares DWA Emerging Markets Momentum Portfolio (PIE)			PowerShares Emerging Markets Infrastructure Portfolio (PXR)			PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio (PAF)			PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio (PXF)			PowerShares FTSE RAFI Developed Markets ex- U.S. Small-Mid Portfolio (PDN)
Investment Income:
Unaffiliated dividend income	$	6,134,138		$	1,899,130		$	373,587		$	888,983		$	17,569,659		$	1,297,467
Affiliated dividend income		54			81			2			2			31			1,731
Security lending income		23,548			—			4,230			—			250,031			3,272
Foreign withholding tax		(421,885	)		(286,880	)		(43,110	)		(48,170	)		(985,925	)		(141,648	)
Total Income		5,735,855			1,612,331			334,709			840,815			16,833,796			1,160,822
Expenses:
Unitary management fees		2,526,814			1,401,852			210,112			114,153			1,604,876			260,442
Proxy		(1,558	)		(3,089	)		(437	)		(50	)		4,023			(5,257	)
Total Expenses		2,525,256			1,398,763			209,675			114,103			1,608,899			255,185
Waivers		(397	)		(508	)		(82	)		(19	)		(262	)		(73	)
Net Expenses		2,524,859			1,398,255			209,593			114,084			1,608,637			255,112
Net Investment Income		3,210,996			214,076			125,116			726,731			15,225,159			905,710
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		(3,845,065	)		(12,461,434	)		(2,348,844	)		(670,230	)		897,053			(1,361,453	)
In-kind redemptions		5,543,534			4,830,454			(1,689,535	)		322,415			—			4,201,932
Foreign currencies		(234,438	)		(571,044	)		(20,983	)		(12,918	)		6,005			(5,473	)
Net realized gain (loss)		1,464,031			(8,202,024	)		(4,059,362	)		(360,733	)		903,058			2,835,006
Change in net unrealized appreciation (depreciation) on:
Investment securities		26,544,470			(13,609,389	)		1,595,497			(900,438	)		25,427,162			952,138
Foreign currencies		15,139			8,628			6,635			46			6,055			(580	)
Net change in unrealized appreciation (depreciation)		26,559,609			(13,600,761	)		1,602,132			(900,392	)		25,433,217			951,558
Net realized and unrealized gain (loss)		28,023,640			(21,802,785	)		(2,457,230	)		(1,261,125	)		26,336,275			3,786,564
Net increase (decrease) in net assets resulting from operations	$	31,234,636		$	(21,588,709	)	$	(2,332,114	)	$	(534,394	)	$	41,561,434		$	4,692,274

^(a)  For the period February 24, 2014 (commencement of investment operations) through April 30, 2014.

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

64

PowerShares FTSE RAFI Emerging Markets Portfolio (PXH)			PowerShares Global Agriculture Portfolio (PAGG)			PowerShares Global Clean Energy Portfolio (PBD)			PowerShares Global Gold and Precious Metals Portfolio (PSAU)			PowerShares Global Water Portfolio (PIO)			PowerShares International BuyBack AchieversTM Portfolio (IPKW)(a)			PowerShares S&P International Developed High Quality Portfolio (IDHQ)
$	3,955,839		$	1,328,416		$	476,341		$	153,119		$	3,579,432		$	76,069		$	268,484
	27			2			—			—			9			—			—
	1,627			6,710			206,755			470			101,590			—			—
	(202,244	)		(72,988	)		(58,550	)		(15,135	)		(356,782	)		(4,874	)		(47,013	)
	3,755,249			1,262,140			624,546			138,454			3,324,249			71,195			221,471
	860,259			312,943			340,740			91,830			943,621			10,344			48,094
	(990	)		(397	)		(638	)		(144	)		(1,461	)		—			122
	859,269			312,546			340,102			91,686			942,160			10,344			48,216
	(201	)		(24	)		(11	)		(4	)		(70	)		(1	)		(4	)
	859,068			312,522			340,091			91,682			942,090			10,343			48,212
	2,896,181			949,618			284,455			46,772			2,382,159			60,852			173,259
	(11,794,844	)		(1,936,564	)		2,043,392			(1,842,089	)		1,548,531			(5,842	)		456,450
	1,120,212			3,761,433			1,591,832			(133,696	)		—			—			—
	(131,619	)		(19,823	)		(12,266	)		(1,029	)		(32,887	)		(7,029	)		(4,370	)
	(10,806,251	)		1,805,046			3,622,958			(1,976,814	)		1,515,644			(12,871	)		452,080
	(12,344,625	)		1,537,059			2,591,262			1,192,137			17,779,995			(130,840	)		226,821
	8,657			(1,059	)		2,850			(294	)		6,778			(123	)		75
	(12,335,968	)		1,536,000			2,594,112			1,191,843			17,786,773			(130,963	)		226,896
	(23,142,219	)		3,341,046			6,217,070			(784,971	)		19,302,417			(143,834	)		678,976
$	(20,246,038	)	$	4,290,664		$	6,501,525		$	(738,199	)	$	21,684,576		$	(82,982	)	$	852,235

65

Statements of Changes in Net Assets

For the six months ended April 30, 2014 and the year ended October 31, 2013

(Unaudited)

	PowerShares DWA Developed Markets Momentum Portfolio (PIZ)						PowerShares DWA Emerging Markets Momentum Portfolio (PIE)
	April 30, 2014			October 31, 2013			April 30, 2014			October 31, 2013
Operations:
Net investment income	$	3,210,996		$	3,785,856		$	214,076		$	4,415,740
Net realized gain (loss)		1,464,031			14,306,227			(8,202,024	)		(30,338,495	)
Net change in unrealized appreciation (depreciation)		26,559,609			54,207,327			(13,600,761	)		27,336,828
Net increase (decrease) in net assets resulting from operations		31,234,636			72,299,410			(21,588,709	)		1,414,073
Distributions to Shareholders from:
Net investment income		(12,268,784	)		(3,597,170	)		(1,745,224	)		(2,868,044	)
Shareholder Transactions:
Proceeds from shares sold		226,567,330			416,887,157			3,560,475			355,505,649
Value of shares repurchased		(20,285,143	)		(43,513,648	)		(72,363,219	)		(165,513,676	)
Transaction fees		—			—			183,142			411,672
Net increase (decrease) in net assets resulting from shares transactions		206,282,187			373,373,509			(68,619,602	)		190,403,645
Increase (Decrease) in Net Assets		225,248,039			442,075,749			(91,953,535	)		188,949,674
Net Assets:
Beginning of period		507,811,017			65,735,268			373,791,826			184,842,152
End of period	$	733,059,056		$	507,811,017		$	281,838,291		$	373,791,826
Undistributed net investment income (loss) at end of period	$	1,388,103		$	10,445,891		$	(874,783	)	$	656,365
Changes in Shares Outstanding:
Shares sold		8,600,000			18,700,000			200,000			18,500,000
Shares repurchased		(800,000	)		(2,100,000	)		(4,200,000	)		(9,200,000	)
Shares outstanding, beginning of period		20,000,000			3,400,000			19,900,000			10,600,000
Shares outstanding, end of period		27,800,000			20,000,000			15,900,000			19,900,000

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

66

PowerShares Emerging Markets Infrastructure Portfolio (PXR)						PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio (PAF)						PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio (PXF)						PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio (PDN)
April 30, 2014			October 31, 2013			April 30, 2014			October 31, 2013			April 30, 2014			October 31, 2013			April 30, 2014			October 31, 2013
$	125,116		$	1,267,324		$	726,731		$	1,706,779		$	15,225,159		$	13,679,282		$	905,710		$	1,274,839
	(4,059,362	)		(5,244,326	)		(360,733	)		1,586,216			903,058			(8,866,292	)		2,835,006			1,201,686
	1,602,132			405,575			(900,392	)		1,150,115			25,433,217			112,688,978			951,558			14,788,406
	(2,332,114	)		(3,571,427	)		(534,394	)		4,443,110			41,561,434			117,501,968			4,692,274			17,264,931
	(341,000	)		(1,102,715	)		(774,645	)		(2,197,612	)		(12,684,563	)		(13,063,725	)		(1,296,932	)		(1,686,447	)
	—			8,763,899			2,886,304			14,037,751			132,956,873			272,276,218			21,913,241			33,048,651
	(26,050,022	)		(26,826,102	)		(5,269,795	)		(23,164,981	)		—			(11,257,691	)		(10,913,823	)		(9,851,608	)
	—			—			—			—			—			—			—			—
	(26,050,022	)		(18,062,203	)		(2,383,491	)		(9,127,230	)		132,956,873			261,018,527			10,999,418			23,197,043
	(28,723,136	)		(22,736,345	)		(3,692,530	)		(6,881,732	)		161,833,744			365,456,770			14,394,760			38,775,527
	71,614,613			94,350,958			49,861,312			56,743,044			649,171,754			283,714,984			98,655,909			59,880,382
$	42,891,477		$	71,614,613		$	46,168,782		$	49,861,312		$	811,005,498		$	649,171,754		$	113,050,669		$	98,655,909
$	80,960		$	296,844		$	(190,654	)	$	(142,740	)	$	4,393,198		$	1,852,602		$	(418,064	)	$	(26,842	)
	—			200,000			50,000			250,000			3,100,000			7,100,000			800,000			1,300,000
	(700,000	)		(700,000	)		(100,000	)		(450,000	)		—			(300,000	)		(400,000	)		(400,000	)
	1,850,000			2,350,000			850,000			1,050,000			15,100,000			8,300,000			3,600,000			2,700,000
	1,150,000			1,850,000			800,000			850,000			18,200,000			15,100,000			4,000,000			3,600,000

67

Statements of Changes in Net Assets (continued)

For the six months ended April 30, 2014 and the year ended October 31, 2013

(Unaudited)

	PowerShares FTSE RAFI Emerging Markets Portfolio (PXH)						PowerShares Global Agriculture Portfolio (PAGG)
	April 30, 2014			October 31, 2013			April 30, 2014			October 31, 2013
Operations:
Net investment income	$	2,896,181		$	9,639,840		$	949,618		$	1,672,652
Net realized gain (loss)		(10,806,251	)		(7,223,361	)		1,805,046			2,098,815
Net change in unrealized appreciation (depreciation)		(12,335,968	)		9,049,618			1,536,000			(2,487,485	)
Net increase (decrease) in net assets resulting from operations		(20,246,038	)		11,466,097			4,290,664			1,283,982
Distributions to Shareholders from:
Net investment income		(2,481,781	)		(9,316,286	)		(967,340	)		(1,616,385	)
Shareholder Transactions:
Proceeds from shares sold		36,336,417			28,772,842			6,072,743			3,130,281
Value of shares repurchased		(21,200,943	)		(38,982,162	)		(27,115,237	)		(18,396,859	)
Net increase (decrease) in net assets resulting from shares transactions		15,135,474			(10,209,320	)		(21,042,494	)		(15,266,578	)
Increase (Decrease) in Net Assets		(7,592,345	)		(8,059,509	)		(17,719,170	)		(15,598,981	)
Net Assets:
Beginning of period		367,101,931			375,161,440			93,232,982			108,831,963
End of period	$	359,509,586		$	367,101,931		$	75,513,812		$	93,232,982
Undistributed net investment income (loss) at end of period	$	1,668,956		$	1,254,556		$	139,612		$	157,334
Changes in Shares Outstanding:
Shares sold		1,800,000			1,300,000			200,000			100,000
Shares repurchased		(1,100,000	)		(1,850,000	)		(900,000	)		(600,000	)
Shares outstanding, beginning of period		17,150,000			17,700,000			3,150,000			3,650,000
Shares outstanding, end of period		17,850,000			17,150,000			2,450,000			3,150,000

^(a)  For the period February 24, 2014 (commencement of investment operations) through April 30, 2014.

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

68

PowerShares Global Clean Energy Portfolio (PBD)						PowerShares Global Gold and Precious Metals Portfolio (PSAU)						PowerShares Global Water Portfolio (PIO)						PowerShares International BuyBack AchieversTM Portfolio  (IPKW)			PowerShares S&P International Developed High Quality Portfolio (IDHQ)
April 30, 2014			October 31, 2013			April 30, 2014			October 31, 2013			April 30, 2014			October 31, 2013			April 30, 2014(a)			April 30, 2014			October 31, 2013
$	284,455		$	725,953		$	46,772		$	191,981		$	2,382,159		$	3,839,204		$	60,852		$	173,259		$	356,651
	3,622,958			(3,237,116	)		(1,976,814	)		(3,370,020	)		1,515,644			8,889,038			(12,871	)		452,080			178,905
	2,594,112			35,005,372			1,191,843			(15,996,742	)		17,786,773			43,082,274			(130,963	)		226,896			3,167,850
	6,501,525			32,494,209			(738,199	)		(19,174,781	)		21,684,576			55,810,516			(82,982	)		852,235			3,703,406
	(263,107	)		(790,701	)		(27,564	)		(126,163	)		(963,308	)		(3,313,392	)		—			(176,143	)		(373,989	)
	11,570,515			12,559,892			2,888,072			16,948,200			27,501,985			7,126,712			15,085,772			—			—
	(4,744,078	)		(19,720,010	)		(6,963,216	)		(6,261,684	)		—			(38,481,569	)		—			—			—
	6,826,437			(7,160,118	)		(4,075,144	)		10,686,516			27,501,985			(31,354,857	)		15,085,772			—			—
	13,064,855			24,543,390			(4,840,907	)		(8,614,428	)		48,223,253			21,142,267			15,002,790			676,092			3,329,417
	80,999,791			56,456,401			29,847,512			38,461,940			227,853,901			206,711,634			—			21,641,255			18,311,838
$	94,064,646		$	80,999,791		$	25,006,605		$	29,847,512		$	276,077,154		$	227,853,901		$	15,002,790		$	22,317,347		$	21,641,255
$	103,787		$	82,439		$	(90,664	)	$	(109,872	)	$	2,030,692		$	611,841		$	60,852		$	52,020		$	54,904
	900,000			1,350,000			150,000			700,000			1,200,000			350,000			600,001			—			—
	(375,000	)		(2,250,000	)		(350,000	)		(250,000	)		—			(2,100,000	)		—			—			—
	6,725,000			7,625,000			1,400,000			950,000			10,400,000			12,150,000			—			1,100,000			1,100,000
	7,250,000			6,725,000			1,200,000			1,400,000			11,600,000			10,400,000			600,001			1,100,000			1,100,000

69

Financial Highlights

PowerShares DWA Developed Markets Momentum Portfolio (PIZ)

	Six Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	25.39		$	19.33		$	18.85		$	20.85		$	17.54		$	13.29
Net investment income(a)		0.13			0.35			0.40			0.37			0.16			0.25
Net realized and unrealized gain (loss) on investments		1.40			6.00			0.56			(1.99	)		3.59			4.02
Total from investment operations		1.53			6.35			0.96			(1.62	)		3.75			4.27
Distributions to shareholders from:
Net investment income		(0.55	)		(0.29	)		(0.48	)		(0.38	)		(0.44	)		(0.02	)
Net asset value at end of period	$	26.37		$	25.39		$	19.33		$	18.85		$	20.85		$	17.54
Market price at end of period(b)	$	26.39		$	25.47		$	19.44		$	18.68		$	20.94		$	17.18
Net Asset Value Total Return(c)		6.09	%		33.09	%		5.43	%		(7.81	)%		21.82	%(d)		32.14	%
Market Price Total Return(c)		5.82	%		32.75	%		6.99	%		(9.04	)%		24.88	%		33.97	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	733,059		$	507,811		$	65,735		$	64,075		$	97,980		$	22,805
Ratio to average net assets of:
Expenses		0.80	%(e)		0.81	%		0.80	%		0.80	%		0.80	%		0.80	%
Net investment income		1.02	%(e)		1.55	%		2.19	%		1.69	%		0.86	%		1.75	%
Portfolio turnover rate(f)		29	%		96	%		133	%		93	%		107	%		135	%

PowerShares DWA Emerging Markets Momentum Portfolio (PIE)

	Six Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	18.78		$	17.44		$	16.33		$	17.88		$	13.30		$	9.24
Net investment income(a)		0.01			0.24			0.19			0.20			0.13			0.08
Net realized and unrealized gain (loss) on investments		(0.98	)		1.24			1.12			(1.66	)		4.55			3.98
Total from investment operations		(0.97	)		1.48			1.31			(1.46	)		4.68			4.06
Distributions to shareholders from:
Net investment income		(0.09	)		(0.16	)		(0.20	)		(0.09	)		(0.10	)		—
Transaction fees(a)		0.01			0.02			—			—			—			—
Net asset value at end of period	$	17.73		$	18.78		$	17.44		$	16.33		$	17.88		$	13.30
Market price at end of period(b)	$	17.82		$	18.76		$	17.48		$	16.26		$	17.99		$	13.17
Net Asset Value Total Return(c)		(5.12	)%		8.66	%		8.12	%		(8.23	)%		35.43	%		43.94	%
Market Price Total Return(c)		(4.53	)%		8.29	%		8.84	%		(9.18	)%		37.62	%		39.36	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	281,838		$	373,792		$	182,842		$	172,271		$	312,086		$	28,603
Ratio to average net assets of:
Expenses		0.90	%(e)		0.91	%		0.90	%		0.90	%		0.90	%		0.90	%
Net investment income		0.14	%(e)		1.26	%		1.12	%		1.12	%		0.88	%		0.79	%
Portfolio turnover rate(f)		67	%		142	%		181	%		147	%		128	%		205	%

^(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 $0.01 per share. Had the pay-in not been made, the net asset value total return would have been 21.76%.

^(e)  Annualized.

^(f)  Portfolio turnover rate is not annualized 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 Emerging Markets Infrastructure Portfolio (PXR)

	Six Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	38.71		$	40.15		$	40.96		$	49.91		$	39.92		$	20.20
Net investment income(a)		0.08			0.54			0.58			0.82			0.53			0.56
Net realized and unrealized gain (loss) on investments		(1.27	)		(1.48	)		(0.57	)		(9.04	)		9.87			19.26
Total from investment operations		(1.19	)		(0.94	)		0.01			(8.22	)		10.40			19.82
Distributions to shareholders from:
Net investment income		(0.22	)		(0.50	)		(0.82	)		(0.73	)		(0.41	)		(0.10	)
Net asset value at end of period	$	37.30		$	38.71		$	40.15		$	40.96		$	49.91		$	39.92
Market price at end of period(b)	$	37.25		$	38.31		$	39.90		$	40.70		$	50.04		$	40.10
Net Asset Value Total Return(c)		(3.08	)%		(2.35	)%		0.13	%		(16.67	)%		26.23	%		98.46	%
Market Price Total Return(c)		(2.19	)%		(2.75	)%		0.15	%		(17.42	)%		25.98	%		99.35	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	42,891		$	71,615		$	94,351		$	131,067		$	159,698		$	103,786
Ratio to average net assets of:
Expenses		0.75	%(d)		0.76	%		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income		0.45	%(d)		1.35	%		1.46	%		1.62	%		1.22	%		1.65	%
Portfolio turnover rate(e)		12	%		30	%		20	%		34	%		36	%		38	%

PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio (PAF)

	Six Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	58.66		$	54.04		$	51.15		$	51.72		$	45.52		$	28.82
Net investment income(a)		0.86			1.54			1.37			1.40			1.08			1.19
Net realized and unrealized gain (loss) on investments		(0.92	)		5.07			2.99			(0.62	)		6.98			16.57
Total from investment operations		(0.06	)		6.61			4.36			0.78			8.06			17.76
Distributions to shareholders from:
Net investment income		(0.89	)		(1.99	)		(1.47	)		(1.35	)		(1.86	)		(1.06	)
Net asset value at end of period	$	57.71		$	58.66		$	54.04		$	51.15		$	51.72		$	45.52
Market price at end of period(b)	$	57.77		$	58.38		$	53.84		$	50.78		$	51.99		$	45.28
Net Asset Value Total Return(c)		(0.02	)%		12.50	%		8.92	%		1.44	%		18.37	%		63.18	%
Market Price Total Return(c)		0.56	%		12.38	%		9.33	%		0.16	%		19.59	%		62.64	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	46,169		$	49,861		$	56,743		$	63,934		$	43,960		$	38,690
Ratio to average net assets of:
Expenses, after Waivers		0.49	%(d)		0.51	%		0.80	%		0.80	%		0.80	%		0.80	%
Expenses, prior to Waivers		0.49	%(d)		0.53	%		0.80	%		0.80	%		0.80	%		0.80	%
Net investment income, after Waivers		3.12	%(d)		2.74	%		2.72	%		2.52	%		2.33	%		3.54	%
Portfolio turnover rate(e)		13	%		32	%		14	%		22	%		30	%		42	%

^(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 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.

71

Financial Highlights (continued)

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio (PXF)

	Six Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	42.99		$	34.18		$	35.10		$	39.00		$	37.49		$	27.86
Net investment income(a)		0.91	(b)		1.08			0.99			1.01			0.72			0.67
Net realized and unrealized gain (loss) on investments		1.42			8.75			(0.90	)		(3.71	)		1.60			9.55
Total from investment operations		2.33			9.83			0.09			(2.70	)		2.32			10.22
Distributions to shareholders from:
Net investment income		(0.76	)		(1.02	)		(1.01	)		(1.20	)		(0.81	)		(0.59	)
Net asset value at end of period	$	44.56		$	42.99		$	34.18		$	35.10		$	39.00		$	37.49
Market price at end of period(c)	$	44.78		$	43.23		$	34.29		$	34.59		$	39.43		$	37.13
Net Asset Value Total Return(d)		5.50	%		29.20	%		0.53	%		(7.08	)%		6.37	%		37.40	%
Market Price Total Return(d)		5.43	%		29.49	%		2.35	%		(9.45	)%		8.55	%		33.43	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	811,005		$	649,172		$	283,715		$	245,693		$	183,323		$	138,705
Ratio to average net assets of:
Expenses, after Waivers		0.45	%(e)		0.48	%		0.75	%		0.75	%		0.75	%		0.75	%
Expenses, prior to Waivers		0.45	%(e)		0.49	%		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income, after Waivers		4.27	%(b)(e)		2.82	%		2.99	%		2.59	%		1.99	%		2.21	%
Portfolio turnover rate(f)		14	%		17	%		17	%		17	%		21	%		28	%

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio (PDN)

	Six Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	27.40		$	22.18		$	22.40		$	22.99		$	20.99		$	13.54
Net investment income(a)		0.23			0.44			0.40			0.45			0.32			0.28
Net realized and unrealized gain (loss) on investments		0.97			5.36			(0.15	)		(0.40	)		2.31			7.34
Total from investment operations		1.20			5.80			0.25			0.05			2.63			7.62
Distributions to shareholders from:
Net investment income		(0.34	)		(0.58	)		(0.47	)		(0.64	)		(0.63	)		(0.17	)
Net asset value at end of period	$	28.26		$	27.40		$	22.18		$	22.40		$	22.99		$	20.99
Market price at end of period(c)	$	28.20		$	27.87		$	22.30		$	21.86		$	23.27		$	20.79
Net Asset Value Total Return(d)		4.43	%		26.56	%		1.32	%		0.09	%		12.93	%		56.70	%
Market Price Total Return(d)		2.44	%		28.00	%		4.40	%		(3.56	)%		15.40	%		50.21	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	113,051		$	98,656		$	59,880		$	64,965		$	59,766		$	31,490
Ratio to average net assets of:
Expenses, after Waivers		0.48	%(e)		0.52	%		0.75	%		0.75	%		0.75	%		0.75	%
Expenses, prior to Waivers		0.48	%(e)		0.54	%		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income, after Waivers		1.70	%(e)		1.78	%		1.84	%		1.82	%		1.52	%		1.74	%
Portfolio turnover rate(f)		22	%		27	%		28	%		75	%		24	%		41	%

^(a)  Based on average shares outstanding.

^(b)  Net Investment income per share and the ratio of net investment income to average net assets include a significant dividend received during the period. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividend are $0.55 and 2.56%, 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 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.

72

Financial Highlights (continued)

PowerShares FTSE RAFI Emerging Markets Portfolio (PXH)

	Six Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	21.41		$	21.20		$	21.75		$	24.74		$	20.60		$	13.45
Net investment income(a)		0.16			0.56			0.50			0.53			0.48			0.26
Net realized and unrealized gain (loss) on investments		(1.29	)		0.19			(0.44	)		(3.01	)		3.82			7.21
Total from investment operations		(1.13	)		0.75			0.06			(2.48	)		4.30			7.47
Distributions to shareholders from:
Net investment income		(0.14	)		(0.54	)		(0.61	)		(0.51	)		(0.16	)		(0.32	)
Net asset value at end of period	$	20.14		$	21.41		$	21.20		$	21.75		$	24.74		$	20.60
Market price at end of period(b)	$	20.16		$	21.21		$	21.11		$	21.80		$	25.01		$	20.57
Net Asset Value Total Return(c)		(5.27	)%		3.67	%		0.37	%		(10.16	)%		20.94	%		56.48	%
Market Price Total Return(c)		(4.28	)%		3.14	%		(0.29	)%		(10.93	)%		22.43	%		55.41	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	359,510		$	367,102		$	375,161		$	444,796		$	497,242		$	175,113
Ratio to average net assets of:
Expenses, after Waivers		0.49	%(d)		0.52	%		0.85	%		0.85	%		0.85	%		0.85	%
Expenses, prior to Waivers		0.49	%(d)		0.54	%		0.85	%		0.85	%		0.85	%		0.85	%
Net investment income, after Waivers		1.65	%(d)		2.66	%		2.34	%		2.16	%		2.13	%		1.52	%
Portfolio turnover rate(e)		16	%		24	%		33	%		20	%		41	%		52	%

PowerShares Global Agriculture Portfolio (PAGG)

	Six Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	29.60		$	29.82		$	29.71		$	30.58		$	23.48		$	16.60
Net investment income(a)		0.34			0.49			0.35			0.20			0.33			0.17
Net realized and unrealized gain (loss) on investments		1.23			(0.22	)		0.15	(f)		(0.79	)		6.92			6.72
Total from investment operations		1.57			0.27			0.50			(0.59	)		7.25			6.89
Distributions to shareholders from:
Net investment income		(0.35	)		(0.49	)		(0.39	)		(0.28	)		(0.15	)		(0.01	)
Net asset value at end of period	$	30.82		$	29.60		$	29.82		$	29.71		$	30.58		$	23.48
Market price at end of period(b)	$	30.80		$	29.49		$	29.66		$	29.47		$	30.68		$	23.27
Net Asset Value Total Return(c)		5.37	%		0.91	%		1.85	%		(1.93	)%		30.99	%		41.53	%
Market Price Total Return(c)		5.69	%		1.07	%		2.13	%		(3.04	)%		32.61	%		39.50	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	75,514		$	93,233		$	108,832		$	123,314		$	59,636		$	24,652
Ratio to average net assets of:
Expenses		0.75	%(d)		0.76	%		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income		2.28	%(d)		1.63	%		1.22	%		0.64	%		1.25	%		0.79	%
Portfolio turnover rate(e)		10	%		17	%		30	%		16	%		19	%		33	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Annualized.

^(e)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

^(f)  Due to the timing of creations and redemptions of capital shares, the net realized and unrealized gain (loss) per share is not in accord with the Fund’s change in net realized and unrealized gain (loss) on investment securities and in-kind transactions for the period.

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

73

Financial Highlights (continued)

PowerShares Global Clean Energy Portfolio (PBD)

	Six Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	12.04		$	7.40		$	9.89		$	13.95		$	15.53		$	12.25
Net investment income(a)		0.04			0.10			0.17			0.13			0.03			0.03
Net realized and unrealized gain (loss) on investments		0.93			4.65			(2.47	)		(4.10	)		(1.60	)		3.28
Total from investment operations		0.97			4.75			(2.30	)		(3.97	)		(1.57	)		3.31
Distributions to shareholders from:
Net investment income		(0.04	)		(0.11	)		(0.19	)		(0.09	)		(0.01	)		(0.03	)
Net asset value at end of period	$	12.97		$	12.04		$	7.40		$	9.89		$	13.95		$	15.53
Market price at end of period(b)	$	12.99		$	12.03		$	7.34		$	9.77		$	13.91		$	15.39
Net Asset Value Total Return(c)		8.06	%		64.73	%		(23.35	)%		(28.54	)%		(10.14	)%		27.10	%
Market Price Total Return(c)		8.32	%		65.94	%		(23.03	)%		(29.20	)%		(9.58	)%		24.13	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	94,065		$	81,000		$	56,456		$	126,634		$	161,786		$	185,973
Ratio to average net assets of:
Expenses		0.75	%(d)		0.82	%		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income		0.63	%(d)		1.10	%		2.05	%		1.00	%		0.22	%		0.23	%
Portfolio turnover rate(e)		29	%		48	%		54	%		66	%		39	%		62	%

PowerShares Global Gold and Precious Metals Portfolio (PSAU)

	Six Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	21.32		$	40.49		$	45.42		$	46.70		$	34.16		$	16.55
Net investment income(a)		0.04			0.19			0.22			0.10			0.03			0.02
Net realized and unrealized gain (loss) on investments		(0.50	)		(19.26	)		(4.54	)		0.19			12.60			17.59
Total from investment operations		(0.46	)		(19.07	)		(4.32	)		0.29			12.63			17.61
Distributions to shareholders from:
Net investment income		(0.02	)		(0.10	)		(0.61	)		(0.93	)		(0.09	)		—
Capital gains		—			—			—			(0.64	)		(0.00	)(f)		—
Total distributions		(0.02	)		(0.10	)		(0.61	)		(1.57	)		(0.09	)		—
Net asset value at end of period	$	20.84		$	21.32		$	40.49		$	45.42		$	46.70		$	34.16
Market price at end of period(b)	$	20.81		$	21.19		$	41.12		$	45.08		$	46.77		$	34.31
Net Asset Value Total Return(c)		(2.15	)%		(47.10	)%		(9.48	)%		0.41	%		37.05	%		106.41	%
Market Price Total Return(c)		(1.69	)%		(48.22	)%		(7.37	)%		(0.54	)%		36.65	%		104.96	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	25,007		$	29,848		$	38,462		$	54,500		$	58,377		$	27,325
Ratio to average net assets of:
Expenses		0.75	%(d)		0.76	%		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income		0.38	%(d)		0.70	%		0.57	%		0.20	%		0.07	%		0.08	%
Portfolio turnover rate(e)		6	%		14	%		19	%		9	%		27	%		29	%

^(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 and does not include securities received or delivered from processing creations or redemptions.

^(f)  Amount represents less than $(0.005).

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

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Financial Highlights (continued)

PowerShares Global Water Portfolio (PIO)

	Six Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	21.91		$	17.01		$	17.17		$	18.68		$	17.15		$	12.34
Net investment income(a)		0.22			0.36			0.32			0.27			0.22			0.25
Net realized and unrealized gain (loss) on investments		1.76			4.86			(0.15	)		(1.49	)		1.56			4.78
Total from investment operations		1.98			5.22			0.17			(1.22	)		1.78			5.03
Distributions to shareholders from:
Net investment income		(0.09	)		(0.32	)		(0.33	)		(0.29	)		(0.25	)		(0.22	)
Net asset value at end of period	$	23.80		$	21.91		$	17.01		$	17.17		$	18.68		$	17.15
Market price at end of period(b)	$	23.86		$	21.96		$	16.93		$	16.95		$	18.69		$	17.03
Net Asset Value Total Return(c)		9.07	%		30.91	%		1.11	%		(6.68	)%		10.47	%		41.25	%
Market Price Total Return(c)		9.09	%		31.84	%		1.95	%		(7.92	)%		11.30	%		42.58	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	276,077		$	227,854		$	206,712		$	278,951		$	322,155		$	280,424
Ratio to average net assets of:
Expenses		0.75	%(d)		0.83	%		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income		1.89	%(d)		1.86	%		1.90	%		1.38	%		1.23	%		1.82	%
Portfolio turnover rate(e)		15	%		52	%		104	%		26	%		27	%		36	%

PowerShares International BuyBack Achievers^TM Portfolio (IPKW)

	For the period February 24,  2014(f) through April 30, 2014 (Unaudited)
Per Share Operating Performance:
Net asset value at beginning of period	$	25.03
Net investment income(a)		0.14
Net realized and unrealized gain (loss) on investments		(0.17	)
Total from investment operations		(0.03	)
Net asset value at end of period	$	25.00
Market price at end of period(b)	$	25.11
Net Asset Value Total Return(c)		(0.12	)%(g)
Market Price Total Return(c)		0.32	%(g)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	15,003
Ratio to average net assets of:
Expenses		0.55	%(d)
Net investment income		3.24	%(d)
Portfolio turnover rate(e)		5	%

^(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 and does not include securities received or delivered from processing creations or redemptions.

^(f)  Commencement of Investment Operations.

^(g)  The net asset value total return from Fund Inception (February 27, 2014, the first day of trading on the Exchange) to April 30, 2014 was 0.20%. The market price total return from Fund Inception to April 30, 2014 was 0.08%.

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

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Financial Highlights (continued)

PowerShares S&P International Developed High Quality Portfolio (IDHQ)

	Six Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	19.67		$	16.65		$	16.03		$	17.09		$	15.66		$	11.32
Net investment income(a)		0.16			0.32			0.29			0.34			0.27			0.30
Net realized and unrealized gain (loss) on investments		0.62			3.04			0.62			(0.89	)		1.47			4.17
Total from investment operations		0.78			3.36			0.91			(0.55	)		1.74			4.47
Distributions to shareholders from:
Net investment income		(0.16	)		(0.34	)		(0.29	)		(0.51	)		(0.31	)		(0.13	)
Net asset value at end of period	$	20.29		$	19.67		$	16.65		$	16.03		$	17.09		$	15.66
Market price at end of period(b)	$	20.36		$	19.68		$	16.81		$	15.65		$	17.03		$	15.44
Net Asset Value Total Return(c)		4.01	%		20.44	%		5.87	%		(3.40	)%		11.33	%		39.69	%
Market Price Total Return(c)		4.31	%		19.34	%		9.50	%		(5.35	)%		12.51	%		38.34	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	22,317		$	21,641		$	18,312		$	20,033		$	32,480		$	59,514
Ratio to average net assets of:
Expenses, after Waivers		0.45	%(d)		0.57	%		0.75	%		0.75	%		0.75	%		0.75	%
Expenses, prior to Waivers		0.45	%(d)		0.59	%		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income, after Waivers		1.62	%(d)		1.79	%		1.82	%		1.89	%		1.72	%		2.49	%
Portfolio turnover rate(e)		14	%		28	%		115	%		83	%		125	%		194	%

^(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 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 II

April 30, 2014

(Unaudited)

Note 1. Organization

PowerShares Exchange-Traded Fund Trust II (the “Trust”) was organized as a Massachusetts business trust on October 10, 2006 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of April 30, 2014, the Trust offered fifty-seven portfolios. This report includes the following portfolios:

Full Name	Short Name
PowerShares DWA Developed Markets Momentum Portfolio (PIZ)	“DWA Developed Markets Momentum Portfolio”
PowerShares DWA Emerging Markets Momentum Portfolio (PIE)	“DWA Emerging Markets Momentum Portfolio”
PowerShares Emerging Markets Infrastructure Portfolio (PXR)	“Emerging Markets Infrastructure Portfolio”
PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio (PAF)	“FTSE RAFI Asia Pacific ex-Japan Portfolio”
PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio (PXF)	“FTSE RAFI Developed Markets ex-U.S. Portfolio”
PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio (PDN)	“FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio”
PowerShares FTSE RAFI Emerging Markets Portfolio (PXH)	“FTSE RAFI Emerging Markets Portfolio”
PowerShares Global Agriculture Portfolio (PAGG)	“Global Agriculture Portfolio”
PowerShares Global Clean Energy Portfolio (PBD)	“Global Clean Energy Portfolio”
PowerShares Global Gold and Precious Metals Portfolio (PSAU)	“Global Gold and Precious Metals Portfolio”
PowerShares Global Water Portfolio (PIO)	“Global Water Portfolio”
PowerShares International BuyBack AchieversTM Portfolio (IPKW)	“International BuyBack AchieversTM Portfolio”
PowerShares S&P International Developed High Quality Portfolio (IDHQ)	“S&P International Developed High Quality Portfolio”

Each portfolio (each, a “Fund”, and collectively, the “Funds”) represents a separate series of the Trust. The shares of the Funds are referred to herein as “Shares” or “Fund’s Shares.” Each Fund’s Shares are listed and traded on the following exchanges:

Fund	Exchange
DWA Developed Markets Momentum Portfolio	NYSE Arca, Inc.
DWA Emerging Markets Momentum Portfolio	NYSE Arca, Inc.
Emerging Markets Infrastructure Portfolio	NYSE Arca, Inc.
FTSE RAFI Asia Pacific ex-Japan Portfolio	NYSE Arca, Inc.
FTSE RAFI Developed Markets ex-U.S. Portfolio	NYSE Arca, Inc.
FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio	NYSE Arca, Inc.
FTSE RAFI Emerging Markets Portfolio	NYSE Arca, Inc.
Global Agriculture Portfolio	NASDAQ Stock Market LLC
Global Clean Energy Portfolio	NYSE Arca, Inc.
Global Gold and Precious Metals Portfolio	NASDAQ Stock Market LLC
Global Water Portfolio	NYSE Arca, Inc.
International BuyBack AchieversTM Portfolio	NASDAQ Stock Market LLC
S&P International Developed High Quality Portfolio	NYSE Arca, Inc.

The market prices of each Fund’s Shares may differ to some degree from the Fund’s net asset value (“NAV”). Unlike conventional mutual funds, each Fund issues and redeems Shares on a continuous basis, at NAV, only in a large specified number of Shares, each called a “Creation Unit.” Creation Units are issued and redeemed 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.

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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 Developed Markets Momentum Portfolio	Dorsey Wright® Developed Markets Technical Leaders Index
DWA Emerging Markets Momentum Portfolio	Dorsey Wright® Emerging Markets Technical Leaders Index
Emerging Markets Infrastructure Portfolio	S-Network Emerging Infrastructure Builders IndexSM
FTSE RAFI Asia Pacific ex-Japan Portfolio	FTSE RAFI Developed Asia Pacific ex Japan Index
FTSE RAFI Developed Markets ex-U.S. Portfolio	FTSE RAFI Developed ex U.S. Index
FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio	FTSE RAFI Developed ex U.S. Mid Small 1500 Index
FTSE RAFI Emerging Markets Portfolio	FTSE RAFI Emerging Markets Index
Global Agriculture Portfolio	NASDAQ OMX Global Agriculture IndexSM
Global Clean Energy Portfolio	WilderHill New Energy Global Innovation Index
Global Gold and Precious Metals Portfolio	NASDAQ OMX Global Gold and Precious Metals IndexSM
Global Water Portfolio	NASDAQ OMX Global Water IndexSM
International BuyBack AchieversTM Portfolio	NASDAQ International BuyBack AchieversTM Index
S&P International Developed High Quality Portfolio	S&P International Developed High Quality Rankings Index

Note 2. Significant Accounting Policies

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

A. Security Valuation

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

A security listed or traded on an exchange (except convertible 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 ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. 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 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

78

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/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

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 of each Fund’s 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 a Fund holds participate or factors relating to specific companies in which the Funds invest. 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 may 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. Global Agriculture Portfolio, Global Gold and Precious Metals Portfolio, Global Water Portfolio and International BuyBack Achievers^TM 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. FTSE RAFI Emerging Markets Portfolio’s use of a representative sampling approach will result in the Fund holding a smaller number of securities than are in the Fund’s Underlying Index. As a result, an adverse development to an issuer of securities held

79

by the Fund could result in a greater decline in NAV than would be the case if the Fund held all of its securities in its Underlying Index. To the extent the assets in the Fund are smaller, these risks will be greater.

Foreign Investment Risk. 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 Funds 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 Funds’ returns.

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 timing differences are primarily due to differing book and tax treatments for in-kind transactions, losses deferred due to wash sales, and passive foreign investment company adjustments, if any.

The Funds file 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.

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

E. Expenses

Each Fund 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 Funds, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses (including acquired fund fees and expenses, if any).

F. Dividends and Distributions to Shareholders

Each Fund (except for Global Agriculture Portfolio and Global Gold and Precious Metals Portfolio) declares and pays dividends from net investment income, if any, to its shareholders quarterly and records such dividends on ex-dividend date. Global Agriculture Portfolio and Global Gold and Precious Metals Portfolio each declares and pays dividends from net investment income, if any, to its shareholders annually 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 period-end.

G. Foreign Currency Transactions

The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in currencies other than the U.S. dollar, are translated into U.S. dollars using the applicable exchange rates as of the close of London world markets. The effects of changes in foreign currency exchange rates on investments in securities are not segregated in the Statements of Operations from the effects of changes in market prices of those securities, but are included with the net realized and unrealized gain or loss on investments in securities. Certain foreign exchange gains and losses included in realized and unrealized gains or losses are included in or are a reduction of ordinary income in accordance with U.S. federal income tax regulations.

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H. Securities Lending

During the six-month period ended April 30, 2014, DWA Developed Markets Momentum Portfolio, Emerging Markets Infrastructure Portfolio, FTSE RAFI Developed Markets ex-U.S. Portfolio, FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio, FTSE RAFI Emerging Markets Portfolio, Global Agriculture Portfolio, Global Clean Energy Portfolio, Global Gold and Precious Metals Portfolio and Global Water 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% of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is invested in an affiliated money market fund and is shown as such on the Schedule of Investments. It is the policy of these Funds to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to a Fund if, and to the extent that, the market value of the securities loaned were to increase, and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. A Fund could experience delays and costs in gaining access to the collateral. A Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Securities lending income on the Statements of Operations. The aggregate value of securities out on loan is shown on the Statements of Assets and Liabilities, if any. DWA Developed Markets Momentum Portfolio and FTSE RAFI Emerging Markets Portfolio no longer participate in securities lending.

Note 3. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with the Adviser pursuant to which the Adviser has overall responsibility for the selection and ongoing monitoring of the Funds’ investments, managing the Funds’ business affairs and providing certain clerical, bookkeeping and other administrative services.

As compensation for its services, each Fund has agreed to pay the Adviser an annual unitary management fee. Out of the unitary management fee, the Adviser has agreed to pay substantially all expenses of the Funds, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses (including acquired fund fees and expenses, if any). The unitary management fee is paid by each Fund to the Adviser at the following annual rates:

	% of Average Daily Net Assets
DWA Developed Markets Momentum Portfolio		0.80	%
DWA Emerging Markets Momentum Portfolio		0.90	%
Emerging Markets Infrastructure Portfolio		0.75	%
FTSE RAFI Asia Pacific ex-Japan Portfolio		0.49	%
FTSE RAFI Developed Markets ex-U.S. Portfolio		0.45	%
FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio		0.49	%
FTSE RAFI Emerging Markets Portfolio		0.49	%
Global Agriculture Portfolio		0.75	%
Global Clean Energy Portfolio		0.75	%
Global Gold and Precious Metals Portfolio		0.75	%
Global Water Portfolio		0.75	%
International BuyBack AchieversTM Portfolio		0.55	%
S&P International Developed High Quality Portfolio		0.45	%

Further, through August 31, 2015, the Adviser has contractually agreed to waive a portion of the 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.”

For the six-month period ended April 30, 2014, the Adviser waived fees for each Fund, in the following amounts:

DWA Developed Markets Momentum Portfolio	$	397
DWA Emerging Markets Momentum Portfolio		508
Emerging Markets Infrastructure Portfolio		82
FTSE RAFI Asia Pacific ex-Japan Portfolio		19
FTSE RAFI Developed Markets ex-U.S. Portfolio		262
FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio		73
FTSE RAFI Emerging Markets Portfolio		201

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Global Agriculture Portfolio	$	24
Global Clean Energy Portfolio		11
Global Gold and Precious Metals Portfolio		4
Global Water Portfolio		70
International BuyBack AchieversTM Portfolio		1
S&P International Developed High Quality Portfolio		4

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

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

Fund	Licensor
DWA Developed Markets Momentum Portfolio	Dorsey Wright & Associates, Inc.
DWA Emerging Markets Momentum Portfolio	Dorsey Wright & Associates, Inc.
Emerging Markets Infrastructure Portfolio	S-Network Global Indexes, LLC
FTSE RAFI Asia Pacific ex-Japan Portfolio	FTSE International Ltd.
FTSE RAFI Developed Markets ex-U.S. Portfolio	FTSE International Ltd.
FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio	FTSE International Ltd.
FTSE RAFI Emerging Markets Portfolio	FTSE International Ltd.
Global Agriculture Portfolio	The NASDAQ OMX Group, Inc.
Global Clean Energy Portfolio	WilderHill New Energy Finance, LLC
Global Gold and Precious Metals Portfolio	The NASDAQ OMX Group, Inc.
Global Water Portfolio	The NASDAQ OMX Group, Inc.
International BuyBack AchieversTM Portfolio	The NASDAQ OMX Group, Inc.
S&P International Developed High Quality Portfolio	Standard & Poor’s

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 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 the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

Except for the Funds listed below, as of April 30, 2014, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedule of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or

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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 Developed Markets Momentum Portfolio
Equity Securities	$	732,220,499	$	—	$	88,078	$	732,308,577
Emerging Markets Infrastructure Portfolio
Equity Securities		42,879,245		755,216		722,444		44,356,905
FTSE RAFI Asia Pacific ex-Japan Portfolio
Equity Securities		46,010,621		142,403		0		46,153,024
FTSE RAFI Developed Markets ex-U.S. Portfolio
Equity Securities		847,503,487		702,465		13,158		848,219,110
FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio
Equity Securities		115,386,906		2,167		39,506		115,428,579
FTSE RAFI Emerging Markets Portfolio
Equity Securities		361,527,139		448,504		—		361,975,643
Global Clean Energy Portfolio
Equity Securities		103,466,805		—		57,756		103,524,561
Global Gold and Precious Metals Portfolio
Equity Securities		25,153,656		—		0		25,153,656

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 carryforward) 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 carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Funds to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in 8 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 carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The following Funds had capital loss carryforwards as of October 31, 2013, which expire as follows:

											Post-effective no expiration
	2015		2016		2017		2018		2019		Short-Term		Long-Term		Total*
DWA Developed Markets Momentum Portfolio	$	—	$	17,174,329	$	6,761,697	$	1,071,796	$	11,083,378	$	9,262,659	$	—	$	45,353,859
DWA Emerging Markets Momentum Portfolio		—		14,116,179		5,190,203		602,137		18,886,830		43,800,410		—		82,595,759
Emerging Markets Infrastructure Portfolio		—		—		—		5,545		7,449,409		4,431,427		14,088,633		25,975,014
FTSE RAFI Asia Pacific ex-Japan Portfolio		—		317,335		4,187,699		923,451		—		151,150		—		5,579,635
FTSE RAFI Developed Markets ex-U.S. Portfolio		54,729		2,040,934		8,801,477		5,210,563		1,248,239		—		9,116,717		26,472,659
FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio		—		192,155		2,633,165		695,775		—		498,041		2,231,625		6,250,761
FTSE RAFI Emerging Markets Portfolio		—		5,378,903		11,700,199		450,476		—		1,909,134		14,474,422		33,913,134
Global Agriculture Portfolio		—		—		—		—		365,885		1,019,570		4,404,931		5,790,386

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											Post-effective no expiration
	2015		2016		2017		2018		2019		Short-Term		Long-Term		Total*
Global Clean Energy Portfolio	$	155,633	$	34,356,421	$	65,130,758	$	22,796,787	$	31,202,293	$	11,608,019	$	48,065,220	$	213,315,131
Global Gold and Precious Metals Portfolio		—		—		—		—		374,482		547,677		3,361,400		4,283,559
Global Water Portfolio		589,102		64,839,461		41,990,185		1,909,380		4,235,497		9,148,269		26,191,392		148,903,286
S&P International Developed High Quality Portfolio		47,847		23,676,544		19,713,557		980,146		2,056,117		1,454,103		459,209		48,387,523

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

Note 6. Investment Transactions

For the period ended April 30, 2014, the cost of securities purchased and proceeds from sales of securities, excluding short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, were as follows:

	Purchases		Sales
DWA Developed Markets Momentum Portfolio	$	184,742,580	$	194,737,181
DWA Emerging Markets Momentum Portfolio		210,644,294		239,284,547
Emerging Markets Infrastructure Portfolio		6,632,598		14,560,884
FTSE RAFI Asia Pacific ex-Japan Portfolio		5,880,964		6,687,211
FTSE RAFI Developed Markets ex-U.S. Portfolio		107,277,338		99,582,394
FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio		25,189,880		23,890,461
FTSE RAFI Emerging Markets Portfolio		67,048,617		57,949,318
Global Agriculture Portfolio		8,674,690		10,798,139
Global Clean Energy Portfolio		26,965,418		26,465,473
Global Gold and Precious Metals Portfolio		1,639,172		1,609,211
Global Water Portfolio		40,739,284		37,182,396
International BuyBack AchieversTM Portfolio		3,293,790		506,430
S&P International Developed High Quality Portfolio		3,120,039		3,146,372

For the period ended April 30, 2014, in-kind transactions associated with creations and redemptions were as follows:

	Cost of Securities Received		Value of Securities Delivered
DWA Developed Markets Momentum Portfolio	$	226,455,444	$	20,267,866
DWA Emerging Markets Momentum Portfolio		2,168,295		43,410,387
Emerging Markets Infrastructure Portfolio		—		18,365,132
FTSE RAFI Asia Pacific ex-Japan Portfolio		1,962,455		3,624,776
FTSE RAFI Developed Markets ex-U.S. Portfolio		128,219,471		—
FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio		20,253,117		10,939,897
FTSE RAFI Emerging Markets Portfolio		22,329,014		13,040,133
Global Agriculture Portfolio		5,496,653		24,496,408
Global Clean Energy Portfolio		10,501,129		4,265,453
Global Gold and Precious Metals Portfolio		2,887,563		6,948,796
Global Water Portfolio		25,518,205		—
International BuyBack AchieversTM Portfolio		12,347,991		—
S&P International Developed High Quality Portfolio		—		—

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

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At April 30, 2014, 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:

	Cost		Net Unrealized Appreciation (Depreciation)			Gross Unrealized Appreciation		Gross Unrealized (Depreciation)
DWA Developed Markets Momentum Portfolio	$	646,672,829	$	85,635,748		$	94,422,833	$	(8,787,085	)
DWA Emerging Markets Momentum Portfolio		258,419,480		23,752,702			32,094,327		(8,341,625	)
Emerging Markets Infrastructure Portfolio		51,015,853		(6,658,948	)		5,634,612		(12,293,560	)
FTSE RAFI Asia-Pacific ex-Japan Portfolio		42,456,085		3,696,938			6,754,252		(3,057,314	)
FTSE RAFI Developed Markets ex-U.S. Portfolio		752,154,410		96,064,700			127,787,045		(31,722,345	)
FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio		104,696,930		10,731,649			16,472,236		(5,740,587	)
FTSE RAFI Emerging Markets Portfolio		402,268,654		(40,293,011	)		29,707,690		(70,000,701	)
Global Agriculture Portfolio		83,307,294		(2,377,587	)		9,226,704		(11,604,291	)
Global Clean Energy Portfolio		88,963,465		14,561,096			23,990,119		(9,429,023	)
Global Gold and Precious Metals Portfolio		40,924,558		(15,770,902	)		431,660		(16,202,562	)
Global Water Portfolio		242,033,239		55,934,485			67,222,548		(11,288,063	)
International BuyBack Achievers™ Portfolio		15,129,510		(130,840	)		359,042		(489,882	)
S&P International Developed High Quality Portfolio		18,723,677		3,571,761			4,394,550		(822,789	)

Note 7. Trustees’ and Officer’s Fees

Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to each Trustee who is not an “interested person” as defined in the 1940 Act (an “Independent Trustee”) and Officer of the Funds. The Adviser, as a result of each Fund’s unitary management fee, pays for such compensation. The Trustee who is an “interested person” (the “Non-Independent Trustee”) of the Trust does not receive any Trustees’ fees.

The Trust has adopted a deferred compensation plan (the “Plan”). Under the Plan, an Independent Trustee who has executed a Deferred Fee Agreement (a “Participating Trustee”) may defer receipt of all or a portion of his compensation (“Deferral Fees”). Such Deferral Fees are deemed to be invested in select PowerShares Funds. The Deferral Fees payable to the Participating Trustee are valued as of the date such Deferral Fees would have been paid to the Participating Trustee. The value increases with contributions or with increases in the value of the Shares selected, and the value decreases with distributions or with declines in the value of the Shares selected. Obligations under the deferred compensation 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 (100,000 Shares for DWA Developed Markets Momentum Portfolio, FTSE RAFI Developed Markets ex-U.S. Portfolio and FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio and 75,000 Shares for Global Clean Energy). Only Authorized Participants are permitted to purchase or redeem Creation Units from the Funds. Such transactions are generally 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 they are not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances.

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 each Fund’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.

DWA Emerging Markets Momentum Portfolio charges certain transaction fees for creations and redemptions, which are treated as increases in capital, which are shown in the Statements of Charges in Net Assets as Transaction fees.

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

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

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Fees and Expenses

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

The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended April 30, 2014.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

	Beginning Account Value November 1, 2013		Ending Account Value April 30, 2014		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period(1)
PowerShares DWA Developed Markets Momentum Portfolio (PIZ)
Actual	$	1,000.00	$	1,060.87		0.80	%	$	4.09
Hypothetical (5% return before expenses)		1,000.00		1,020.83		0.80			4.01
PowerShares DWA Emerging Markets Momentum Portfolio (PIE)
Actual		1,000.00		948.80		0.90			4.35
Hypothetical (5% return before expenses)		1,000.00		1,020.33		0.90			4.51
PowerShares Emerging Markets Infrastructure Portfolio (PXR)
Actual		1,000.00		969.24		0.75			3.66
Hypothetical (5% return before expenses)		1,000.00		1,021.08		0.75			3.76
PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio (PAF)
Actual		1,000.00		999.77		0.49			2.43
Hypothetical (5% return before expenses)		1,000.00		1,022.36		0.49			2.46
PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio (PXF)
Actual		1,000.00		1,055.05		0.45			2.29
Hypothetical (5% return before expenses)		1,000.00		1,022.56		0.45			2.26
PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio (PDN)
Actual		1,000.00		1,044.35		0.48			2.43
Hypothetical (5% return before expenses)		1,000.00		1,022.41		0.48			2.41

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Fees and Expenses (continued)

	Beginning Account Value November 1, 2013		Ending Account Value April 30, 2014		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period(1)
PowerShares FTSE RAFI Emerging Markets Portfolio (PXH)
Actual	$	1,000.00	$	947.33		0.49	%	$	2.37
Hypothetical (5% return before expenses)		1,000.00		1,022.36		0.49			2.46
PowerShares Global Agriculture Portfolio (PAGG)
Actual		1,000.00		1,053.67		0.75			3.82
Hypothetical (5% return before expenses)		1,000.00		1,021.08		0.75			3.76
PowerShares Global Clean Energy Portfolio (PBD)
Actual		1,000.00		1,080.61		0.75			3.87
Hypothetical (5% return before expenses)		1,000.00		1,021.08		0.75			3.76
PowerShares Global Gold and Precious Metals Portfolio (PSAU)
Actual		1,000.00		978.52		0.75			3.68
Hypothetical (5% return before expenses)		1,000.00		1,021.08		0.75			3.76
PowerShares Global Water Portfolio (PIO)
Actual		1,000.00		1,090.66		0.75			3.89
Hypothetical (5% return before expenses)		1,000.00		1,021.08		0.75			3.76
PowerShares International BuyBack Achievers™ Portfolio (IPKW)(2)
Actual		1,000.00		998.80		0.55			0.98
Hypothetical (5% return before expenses)		1,000.00		1,022.07		0.55			2.76
PowerShares S&P International Developed High Quality Portfolio (IDHQ)
Actual		1,000.00		1,040.13		0.45			2.28
Hypothetical (5% return before expenses)		1,000.00		1,022.56		0.45			2.26

⁽¹⁾  Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six-month period ended April 30, 2014. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 181/365.

⁽²⁾  Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the period February 24, 2014 (Commencement of Investment Operations) through April 30, 2014. Actual expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 65/365. Hypothetical expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 181/365.

88

Board Considerations Regarding Continuation of Investment Advisory

Agreement and Sub-Advisory Agreement

At a meeting held on April 17, 2014, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust II (the “Trust”), including the Independent Trustees, approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the “Adviser”) and the Trust for the following 58 series (each, a “Fund” and collectively, the “Funds”):

PowerShares 1-30 Laddered Treasury Portfolio

PowerShares Aggregate Bond Portfolio

PowerShares Build America Bond Portfolio

PowerShares CEF Income Composite Portfolio

PowerShares Chinese Yuan Dim Sum Bond Portfolio

PowerShares DWA Developed Markets Momentum Portfolio

PowerShares DWA Emerging Markets Momentum Portfolio

PowerShares DWA SmallCap Momentum Portfolio

PowerShares Emerging Markets Infrastructure Portfolio

PowerShares Emerging Markets Sovereign Debt Portfolio

PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio

PowerShares FTSE RAFI Emerging Markets Portfolio

PowerShares Fundamental Emerging Markets Local Debt Portfolio

PowerShares Fundamental High Yield^® Corporate Bond Portfolio

PowerShares Fundamental Investment Grade Corporate Bond Portfolio

PowerShares Global Agriculture Portfolio

PowerShares Global Clean Energy Portfolio

PowerShares Global Gold and Precious Metals Portfolio

PowerShares Global Short Term High Yield Bond Portfolio

PowerShares Global Water Portfolio

PowerShares Insured California Municipal Bond Portfolio

PowerShares Insured National Municipal Bond Portfolio

PowerShares Insured New York Municipal Bond Portfolio

PowerShares International BuyBack Achievers^TM Portfolio*

PowerShares International Corporate Bond Portfolio

PowerShares KBW Bank Portfolio

PowerShares KBW Capital Markets Portfolio

PowerShares KBW High Dividend Yield Financial Portfolio

PowerShares KBW Insurance Portfolio

PowerShares KBW Premium Yield Equity REIT Portfolio

PowerShares KBW Property & Casualty Insurance Portfolio

PowerShares KBW Regional Banking Portfolio

PowerShares NYSE Century Portfolio*

PowerShares Preferred Portfolio

PowerShares S&P 500^® High Beta Portfolio

PowerShares S&P 500^® High Dividend Portfolio

PowerShares S&P 500^® High Momentum Portfolio

PowerShares S&P 500^® Low Volatility Portfolio

PowerShares S&P Emerging Markets High Beta Portfolio

PowerShares S&P Emerging Markets Low Volatility Portfolio

PowerShares S&P International Developed High Beta Portfolio

PowerShares S&P International Developed High Quality Portfolio

PowerShares S&P International Developed Low Volatility Portfolio

PowerShares S&P MidCap Low Volatility Portfolio

PowerShares S&P SmallCap Consumer Discretionary Portfolio

PowerShares S&P SmallCap Consumer Staples Portfolio

PowerShares S&P SmallCap Energy Portfolio

PowerShares S&P SmallCap Financials Portfolio

PowerShares S&P SmallCap Health Care Portfolio

PowerShares S&P SmallCap Industrials Portfolio

PowerShares S&P SmallCap Information Technology Portfolio

PowerShares S&P SmallCap Low Volatility Portfolio

PowerShares S&P SmallCap Materials Portfolio

PowerShares S&P SmallCap Utilities Portfolio

PowerShares Senior Loan Portfolio

PowerShares VRDO Tax-Free Weekly Portfolio

* The Trustees previously approved the initial Investment Advisory Agreement at a meeting held on December 17, 2013.

Also at the April 17, 2014 meeting, the Board of Trustees of the Trust, including the Independent Trustees, approved the continuation of the Investment Sub-Advisory Agreement between the Adviser and the following eight affiliated sub-advisers for PowerShares Senior Loan Portfolio (the “Sub-Advisory Agreement”): Invesco Advisers, Inc.; Invesco Asset Management Deutschland, GmbH; Invesco Asset Management Limited; Invesco Asset Management (Japan) Limited; Invesco Australia Limited; Invesco Hong Kong Limited; Invesco Senior Secured Management, Inc.; and Invesco Canada Ltd. (each, a “Sub-Adviser” and collectively, the “Sub-Advisers”).

The Trustees reviewed information from the Adviser describing: (i) the nature, extent and quality of services provided, (ii) the investment performance of the Funds and the Adviser, (iii) the costs of services provided and estimated profits realized by the Adviser, (iv) the extent to which economies of scale are realized as a Fund grows, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered to and amounts paid by other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with each Fund. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board’s analysis.

89

Board Considerations Regarding Continuation of Investment Advisory

Agreement and Sub-Advisory Agreement (continued)

Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser’s services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser’s current organization and staffing, including operational support provided by the Adviser’s parent organization, Invesco Ltd., and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser’s execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds (other than PowerShares Aggregate Bond Portfolio and PowerShares S&P 500^® High Momentum Portfolio, which Funds had not commenced operations as of April 17, 2014), their underlying indexes and their primary benchmarks for the one-year, three-year, five-year and since-inception periods ended December 31, 2013, as applicable, including reports for each of those periods on the correlation and tracking error between each Fund’s performance and the performance of its underlying index, as well as the Adviser’s analysis of the tracking error between each Fund and its underlying index. In reviewing the tracking error report, the Trustees considered information provided by Ibbotson Associates, a consultant to the Independent Trustees, with respect to general expected tracking error ranges and various explanations for any tracking error. The Trustees noted that for each applicable period, the correlation for each Fund, other than the five-year period for PowerShares Fundamental High Yield Corporate Bond Portfolio, the since-inception period for PowerShares Global Short Term High Yield Bond Portfolio, the one- and three-year periods for PowerShares Insured New York Municipal Bond Portfolio and the one-, three- and five-year periods for PowerShares VRDO Tax-Free Weekly Portfolio, was within the targeted range set forth in the Trust’s registration statement. The Trustees reviewed the reasons provided by the Adviser for PowerShares Global Short Term High Yield Bond Portfolio’s, PowerShares Insured New York Municipal Bond Portfolio’s, PowerShares Fundamental High Yield Corporate Bond Portfolio’s and PowerShares VRDO Tax-Free Weekly Portfolio’s level of correlation to its underlying index, as well as the Adviser’s expectations for such Fund’s correlation going forward. The Trustees noted that for each applicable period, the tracking error for each Fund was within the targeted range set forth in the Trust’s registration statement and concluded that each Fund’s correlation to its underlying index and the tracking error for each Fund were within an acceptable range given that Fund’s particular circumstances.

The Trustees also considered the services provided by the Adviser in its oversight of the Funds’ administrator, custodian and transfer agent. They noted the significant amount of time, effort and resources that had been devoted to this oversight function.

Based on their review, the Trustees concluded that the nature, extent and quality of services provided by the Adviser to the Funds under the Investment Advisory Agreement were appropriate and reasonable.

Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser on each Fund’s net expense ratio and unitary advisory fee, as compared to information compiled by the Adviser from Lipper Inc. databases on the net expense ratios of comparable exchange-traded funds (“ETFs”), open-end (non-ETF) index funds and open-end actively-managed funds. The Trustees noted that the annual advisory fee charged to each Fund, as set forth below, is a unitary fee and that the Adviser pays all other operating expenses of each Fund, including the fees payable to the Sub-Advisers for PowerShares Senior Loan Portfolio, except that each Fund pays its brokerage expenses, taxes, interest (including for PowerShares Senior Loan Portfolio, interest expenses associated with its line of credit), litigation expenses and other extraordinary expenses.

— 0.22%: PowerShares Fundamental Investment Grade Corporate Bond Portfolio

— 0.25%: PowerShares 1-30 Laddered Treasury Portfolio, PowerShares Aggregate Bond Portfolio, PowerShares S&P 500^® High Beta Portfolio, PowerShares S&P 500^® High Momentum Portfolio, PowerShares S&P 500^® Low Volatility Portfolio, PowerShares S&P MidCap Low Volatility Portfolio, PowerShares S&P SmallCap Low Volatility Portfolio, PowerShares VRDO Tax-Free Weekly Portfolio

— 0.28%: PowerShares Build America Bond Portfolio, PowerShares Insured California Municipal Bond Portfolio, PowerShares Insured National Municipal Bond Portfolio, PowerShares Insured New York Municipal Bond Portfolio

— 0.29%: PowerShares S&P SmallCap Consumer Discretionary, PowerShares S&P SmallCap Consumer Staples Portfolio, PowerShares S&P SmallCap Energy Portfolio, PowerShares S&P SmallCap Financials Portfolio, PowerShares S&P SmallCap Health Care Portfolio, PowerShares S&P SmallCap Industrials Portfolio, PowerShares S&P SmallCap Information Technology Portfolio, PowerShares S&P SmallCap Materials Portfolio, PowerShares S&P SmallCap Utilities Portfolio

— 0.30%: PowerShares S&P 500^® High Dividend Portfolio

— 0.35%: PowerShares Global Short Term High Yield Bond Portfolio, PowerShares KBW Bank Portfolio, PowerShares KBW Capital Markets Portfolio, PowerShares KBW High Dividend Yield Financial Portfolio, PowerShares KBW Insurance Portfolio, PowerShares KBW Premium Yield Equity REIT Portfolio, PowerShares KBW Property & Casualty Insurance Portfolio, PowerShares KBW Regional Banking Portfolio, PowerShares S&P International Developed High Beta Portfolio, PowerShares S&P International Developed Low Volatility Portfolio

90

Board Considerations Regarding Continuation of Investment Advisory

Agreement and Sub-Advisory Agreement (continued)

— 0.45%: PowerShares Chinese Yuan Dim Sum Bond Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio, PowerShares S&P Emerging Markets High Beta Portfolio, PowerShares S&P Emerging Markets Low Volatility Portfolio, PowerShares S&P International Developed High Quality Portfolio

— 0.49%: PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio, PowerShares FTSE RAFI Emerging Markets Portfolio

— 0.50%: PowerShares CEF Income Composite Portfolio, PowerShares Emerging Markets Sovereign Debt Portfolio, PowerShares Fundamental Emerging Markets Local Debt Portfolio, PowerShares Fundamental High Yield^® Corporate Bond Portfolio, PowerShares International Corporate Bond Portfolio, PowerShares NYSE Century Portfolio, PowerShares Preferred Portfolio

— 0.55% PowerShares International BuyBack Achievers^TM Portfolio

— 0.60%: PowerShares DWA SmallCap Momentum Portfolio

— 0.65%: PowerShares Senior Loan Portfolio

— 0.75%: PowerShares Emerging Markets Infrastructure Portfolio, PowerShares Global Agriculture Portfolio, PowerShares Global Clean Energy Portfolio, PowerShares Global Gold and Precious Metals Portfolio, PowerShares Global Water Portfolio

— 0.80%: PowerShares DWA Developed Markets Momentum Portfolio

— 0.90%: PowerShares DWA Emerging Markets Momentum Portfolio

The Trustees noted that the Adviser represented that it does not serve as the investment adviser to any clients, other than other ETFs also overseen by the Trustees, with comparable investment strategies as the Funds, but that the Adviser provides sub-advisory services to clients with comparable investment strategies as certain of the Funds. The Trustees further noted the Adviser’s explanation with respect to the sub-advisory fees it receives for such services in comparison to the advisory fees charged to the Funds. The Trustees noted that each Fund’s advisory fee was:

— equal to or lower than the median net expense ratio of its ETF peer funds (except for the advisory fee of each of PowerShares 1-30 Laddered Treasury Portfolio, PowerShares Aggregate Bond Portfolio, PowerShares CEF Income Composite Portfolio, PowerShares DWA Emerging Markets Momentum Portfolio, PowerShares DWA SmallCap Momentum Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio, PowerShares Fundamental High Yield^® Corporate Bond Portfolio, PowerShares Fundamental Investment Grade Corporate Bond Portfolio PowerShares Global Agriculture Portfolio, PowerShares Global Clean Energy Portfolio, PowerShares Global Gold and Precious Metals Portfolio, PowerShares Global Water Portfolio, PowerShares Insured California Municipal Bond Portfolio, PowerShares Insured National Municipal Bond Portfolio, PowerShares Insured New York Municipal Bond Portfolio, PowerShares International BuyBack Achievers^TM Portfolio, PowerShares International Corporate Bond Portfolio, PowerShares NYSE Century Portfolio, PowerShares S&P International Developed Low Volatility Portfolio, PowerShares S&P International Developed High Beta Portfolio, PowerShares S&P International Developed High Quality Portfolio, PowerShares Senior Loan Portfolio and PowerShares VRDO Tax-Free Weekly Portfolio, which were higher than the median net expense ratio of its ETF peer funds); and

— equal to or lower than the median net expense ratio of its open-end index peer funds (except for the advisory fee of each of PowerShares 1-30 Laddered Treasury Portfolio, PowerShares Aggregate Bond Portfolio, PowerShares DWA Emerging Markets Momentum Portfolio, PowerShares DWA SmallCap Momentum Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio, PowerShares Fundamental Investment Grade Corporate Bond Portfolio, PowerShares KBW Premium Yield Equity REIT Portfolio and PowerShares S&P International Developed Low Volatility Portfolio, which was higher than the median net expense ratio of its open-end index peer funds; and there was no comparable data for PowerShares Build America Bond Portfolio, PowerShares Chinese Yuan Dim Sum Bond Portfolio, PowerShares DWA Developed Markets Momentum Portfolio, PowerShares Emerging Markets Infrastructure Portfolio, PowerShares Emerging Markets Sovereign Debt Portfolio, PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio, PowerShares Fundamental Emerging Markets Local Debt Portfolio, PowerShares Fundamental High Yield^® Corporate Bond Portfolio, PowerShares Global Agriculture Portfolio, PowerShares Global Clean Energy Portfolio, PowerShares Global Gold and Precious Metals Portfolio, PowerShares Global Short Term High Yield Bond Portfolio, PowerShares Global Water Portfolio, PowerShares Insured California Municipal Bond Portfolio, PowerShares Insured National Municipal Bond Portfolio, PowerShares Insured New York Municipal Bond Portfolio, PowerShares International Corporate Bond Portfolio, PowerShares KBW Bank Portfolio, PowerShares KBW Capital Markets Portfolio, PowerShares KBW High Dividend Yield Financial Portfolio, PowerShares KBW Insurance Portfolio, PowerShares KBW Property & Casualty Insurance Portfolio, PowerShares KBW Regional Banking Portfolio, PowerShares Preferred Portfolio, PowerShares S&P SmallCap Consumer Discretionary Portfolio, PowerShares S&P SmallCap Consumer Staples Portfolio, PowerShares S&P SmallCap Energy Portfolio, PowerShares S&P

91

Board Considerations Regarding Continuation of Investment Advisory

Agreement and Sub-Advisory Agreement (continued)

SmallCap Financials Portfolio, PowerShares S&P SmallCap Health Care Portfolio, PowerShares S&P SmallCap Industrials Portfolio, PowerShares S&P SmallCap Materials Portfolio, PowerShares Senior Loan Portfolio or PowerShares VRDO Tax-Free Weekly Portfolio); but

— lower than the median expense ratio of its open-end actively-managed peer funds.

The Trustees also considered that, during the period, certain Funds incurred other expenses excluded from those Funds’ unitary advisory fees, such that those Funds’ net expense ratios were in excess of the Funds’ unitary advisory fees. The Trustees noted the Adviser’s belief that such expenses were not expected to be incurred at that level going forward. The Trustees considered that the Adviser had agreed to waive a portion of its advisory fee, at least until February 28, 2016, for PowerShares S&P Emerging Markets High Beta Portfolio, PowerShares S&P Emerging Markets Low Volatility Portfolio, PowerShares S&P International Developed High Beta Portfolio and PowerShares S&P International Developed Low Volatility Portfolio. The Trustees determined that each Fund’s advisory fee was reasonable because of the complexity of the indexes, the distinguishing factors of the Funds and the administrative, operational and management oversight costs for the Adviser. The Trustees also noted that a portion of each Fund’s advisory fee was attributable to a license fee payable out of the unitary fee charged to that Fund. The Board concluded that the unitary advisory fee charged to each Fund was reasonable and appropriate in light of the services provided.

In conjunction with their review of the unitary advisory fee, the Trustees also considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement. The Trustees reviewed information provided by the Adviser on its profitability, as well as any profits or losses realized by the Adviser from its relationship to each Fund. The Trustees concluded that the estimated profitability to the Adviser of the advisory services provided to any of the Funds was not unreasonable.

Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. The Trustees reviewed the information provided by the Adviser as to the extent to which economies of scale are realized as each Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees reviewed each Fund’s asset size and expense ratio. The Trustees noted that any reduction in fixed costs associated with the management of the Funds would be enjoyed by the Adviser, but a unitary fee provides a level of certainty in expenses for the Funds. The Trustees considered whether the advisory fee rate for each Fund was reasonable in relation to the asset size of that Fund, and concluded that the flat advisory fee was reasonable and appropriate.

The Trustees noted that the Adviser had not identified any further benefits that it derived from its relationship with the Funds and had noted that it does not have any soft-dollar arrangements.

Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund.

Investment Sub-Advisory Agreement

As noted above, the Board of Trustees of the Trust, including the Independent Trustees, approved the continuation of the Sub-Advisory Agreement for the PowerShares Senior Loan Portfolio at a meeting held on April 17, 2014. The review process followed by the Board is described in detail above. In connection with the review of the Sub-Advisory Agreement, the Board considered the factors described below, among others.

Nature, Extent and Quality of Services. The Trustees considered the nature, extent and quality of services provided under the Sub-Advisory Agreement. The Board also considered the benefits described by the Adviser in having multiple affiliated Sub-Advisers. The Board reviewed the qualifications and background of each Sub-Adviser, the investment approach of the Sub-Adviser whose investment personnel manage the PowerShares Senior Loan Portfolio’s assets, the experience and skills of the investment personnel responsible for the day-to-day management of the Fund, and the resources made available to such personnel.

Based on their review, the Trustees concluded that the nature, extent and quality of services provided by the Sub-Advisers to PowerShares Senior Loan Portfolio under the Sub-Advisory Agreement were appropriate and reasonable.

Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser and the Sub-Advisers on the sub-advisory fee rate under the Sub-Advisory Agreement. The Trustees noted that the sub-advisory fee charged by the Sub-Advisers under the Sub-Advisory Agreement is consistent with the compensation structure used throughout Invesco when Invesco’s affiliates provide sub-advisory services for funds managed by other Invesco affiliates. The Board considered how the sub-advisory fees relate to the overall advisory fee for the PowerShares Senior Loan Portfolio and noted that the Adviser compensates the Sub-Advisers from its fee. The Trustees also considered information provided by Invesco Senior Secured Management, Inc. on the revenues it

92

Board Considerations Regarding Continuation of Investment Advisory

Agreement and Sub-Advisory Agreement (continued)

receives under the Sub-Advisory Agreement. The Trustees concluded that the sub-advisory fees were reasonable in light of the sub-advisory services provided to the PowerShares Senior Loan Portfolio.

Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. As part of their review of the Investment Advisory Agreement for the PowerShares Senior Loan Portfolio, the Trustees considered the extent to which economies of scale are realized as the PowerShares Senior Loan Portfolio grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees considered whether the sub-advisory fee rate for PowerShares Senior Loan Portfolio was reasonable in relation to the asset size of the Fund, and concluded that the flat sub-advisory fee was reasonable and appropriate.

The Trustees noted that the Sub-Advisers had not identified any further benefits that they derived from their relationships with the PowerShares Senior Loan Portfolio.

Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Sub-Advisory Agreement for the PowerShares Senior Loan Portfolio. No single factor was determinative in the Board’s analysis.

93

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

Quarterly Portfolios

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

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.

©2014 Invesco PowerShares Capital Management LLC			P-PS-SAR-8
3500 Lacey Road, Suite 700 Downers Grove, IL 60515
invescopowershares.com    800.983.0903		@PowerShares

April 30, 2014

2014 Semi-Annual Report to Shareholders

PLW	PowerShares 1-30 Laddered Treasury Portfolio
BAB	PowerShares Build America Bond Portfolio
PCEF	PowerShares CEF Income Composite Portfolio
DSUM	PowerShares Chinese Yuan Dim Sum Bond Portfolio
PCY	PowerShares Emerging Markets Sovereign Debt Portfolio
PFEM	PowerShares Fundamental Emerging Markets Local Debt Portfolio
PHB	PowerShares Fundamental High Yield® Corporate Bond Portfolio
PFIG	PowerShares Fundamental Investment Grade Corporate Bond Portfolio
PGHY	PowerShares Global Short Term High Yield Bond Portfolio
PWZ	PowerShares Insured California Municipal Bond Portfolio
PZA	PowerShares Insured National Municipal Bond Portfolio
PZT	PowerShares Insured New York Municipal Bond Portfolio
PICB	PowerShares International Corporate Bond Portfolio
PGX	PowerShares Preferred Portfolio
VRP	PowerShares Variable Rate Preferred Portfolio
PVI	PowerShares VRDO Tax-Free Weekly Portfolio

Table of Contents

Fixed Income Portfolios
Schedules of Investments
PowerShares 1-30 Laddered Treasury Portfolio (PLW)	3
PowerShares Build America Bond Portfolio (BAB)	4
PowerShares CEF Income Composite Portfolio (PCEF)	11
PowerShares Chinese Yuan Dim Sum Bond Portfolio (DSUM)	14
PowerShares Emerging Markets Sovereign Debt Portfolio (PCY)	18
PowerShares Fundamental Emerging Markets Local Debt Portfolio (PFEM)	21
PowerShares Fundamental High Yield® Corporate Bond Portfolio (PHB)	24
PowerShares Fundamental Investment Grade Corporate Bond Portfolio (PFIG)	32
PowerShares Global Short Term High Yield Bond Portfolio (PGHY)	39
PowerShares Insured California Municipal Bond Portfolio (PWZ)	45
PowerShares Insured National Municipal Bond Portfolio (PZA)	48
PowerShares Insured New York Municipal Bond Portfolio (PZT)	54
PowerShares International Corporate Bond Portfolio (PICB)	57
PowerShares Preferred Portfolio (PGX)	66
PowerShares Variable Rate Preferred Portfolio (VRP)	70
PowerShares VRDO Tax-Free Weekly Portfolio (PVI)	73
Statements of Assets and Liabilities	76
Statements of Operations	78
Statements of Changes in Net Assets	80
Financial Highlights	84
Notes to Financial Statements	92
Fees and Expenses	104
Board Considerations Regarding Continuation of Investment Advisory Agreement and Sub-Advisory Agreement	106
Board Considerations Regarding Approval of Investment Advisory Agreement for PowerShares Variable Rate Preferred Portfolio	111

2

Portfolio Composition

PowerShares 1-30 Laddered Treasury Portfolio (PLW)

Duration Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Maturing in 0-5 Years	19.2
Maturing in 6-10 Years	16.2
Maturing in 11-15 Years	13.2
Maturing in 16-20 Years	13.3
Maturing in 21-25 Years	23.5
Maturing in 26-30 Years	13.6
Money Market Fund Plus Other Assets Less Liabilities	1.0

Schedule of Investments

PowerShares 1-30 Laddered Treasury Portfolio (PLW)

April 30, 2014

(Unaudited)

Principal Amount			Value
		Long-Term Investments—95.8%
		United States Government Obligations—95.8%
		United States Treasury Notes—13.0%
$	7,547,000	4.500%, 02/15/16	$	8,112,580
	7,330,000	4.625%, 02/15/17		8,111,100
	7,525,000	3.500%, 02/15/18		8,154,338
	8,514,000	2.000%, 02/15/22		8,283,858
				32,661,876
		United States Treasury Bonds—82.8%
	5,949,000	8.875%, 02/15/19		7,967,014
	5,857,000	8.500%, 02/15/20		7,996,632
	5,882,000	7.875%, 02/15/21		8,033,983
	5,924,000	7.125%, 02/15/23		8,113,564
	6,223,000	6.250%, 08/15/23		8,156,019
	5,572,000	7.625%, 02/15/25		8,173,862
	6,236,000	6.000%, 02/15/26		8,256,850
	5,881,000	6.625%, 02/15/27		8,257,753
	6,165,000	6.125%, 11/15/27		8,372,840
	6,587,000	5.250%, 02/15/29		8,322,266
	5,997,000	6.250%, 05/15/30		8,401,893
	19,361,000	5.375%, 02/15/31		25,027,113
	21,277,000	4.500%, 02/15/36		25,371,163
	6,850,000	4.750%, 02/15/37		8,453,325
	7,240,000	4.375%, 02/15/38		8,480,979
	8,350,000	3.500%, 02/15/39		8,530,043
	6,960,000	4.625%, 02/15/40		8,486,850
	6,826,000	4.750%, 02/15/41		8,500,500
	9,083,000	3.125%, 02/15/42		8,589,112
	9,137,000	3.125%, 02/15/43		8,589,493
	8,456,000	3.625%, 02/15/44		8,718,931
				208,800,185
		Total Long-Term Investments (Cost $237,074,333)		241,462,061

Principal Amount			Value
		Short-Term Investments—3.5%
		United States Government Obligations—3.2%
		United States Treasury Notes—3.2%
$	7,883,000	4.000%, 02/15/15
		(Cost $8,089,922)	$	8,127,192
Number of Shares
		Money Market Funds—0.3%
	631,518	Invesco Premier Portfolio—Institutional Class(a) (Cost $631,518)		631,518
		Total Short-Term Investments (Cost $8,721,440)		8,758,710
		Total Investments (Cost $245,795,773)—99.3%		250,220,771
		Other assets less liabilities—0.7%		1,751,517
		Net Assets—100.0%	$	251,972,288

Notes to Schedule of Investments:

^(a)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

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

3

Portfolio Composition

PowerShares Build America Bond Portfolio (BAB)

State Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
California	19.6
Colorado	2.9
Florida	5.7
Illinois	11.8
Missouri	3.0
Nevada	3.2
New Jersey	6.1
New York	6.6
Texas	9.6
Washington	4.2
Other States Less Than 3% Each	21.3
Money Market Fund Plus Other Assets Less Liabilities	6.0

Schedule of Investments

PowerShares Build America Bond Portfolio (BAB)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Municipal Bonds—94.0%
		Ad Valorem Property Tax—28.1%
$	3,000,000	Anchorage Alaska Ser. 10A-2		5.910	%		04/01/30	$	3,260,010
	2,350,000	Baltimore County Maryland Ser. 10		3.110			11/01/18		2,477,511
	1,000,000	Beaumont California University School District Ser. 09 AGM		7.471			08/01/34		1,110,360
	1,500,000	Bexar County Texas Ser. 10		5.755			06/15/40		1,610,640
	11,000,000	California State Highway Safety Air Quality Remarketed Ser. 09B		6.509			04/01/39		12,314,280
	3,505,000	California State Ser. 09		7.350			11/01/39		4,797,293
	4,500,000	California State Ser. 10		7.625			03/01/40		6,397,830
	1,010,000	Carson City Nevada (Water Improvement) Ser. 10A		6.662			11/01/39		1,085,689
	2,000,000	Channelview Texas Independent School District Ser. 10 PSF-GTD		5.926			08/15/35		2,129,400
	2,000,000	Chicago Illinois (Recovery Zone Economic Development) Ser. 10D		6.257			01/01/40		2,109,700
	2,000,000	Chicago Illinois (Taxable Project) Ser. 10B		7.517			01/01/40		2,355,600
	6,205,000	Chicago Illinois Ser. 10C		6.207			01/01/36		6,539,884
	1,500,000	Clark County Nevada Las Vegas Convention and Visitors Auth. Ser. 10A		6.554			07/01/30		1,771,845
	1,620,000	Clark County Nevada Las Vegas Convention and Visitors Auth. Ser. 10A		6.754			07/01/38		1,990,510
	4,955,000	Commonwealth of Pennsylvania First Ser. 10B		4.650			02/15/26		5,377,662
	1,600,000	Cook County Illinois Community Consolidated (School District No. 65) Ser. 09		4.400			12/01/20		1,686,288
	2,500,000	Cook County Illinois Ser. 10D		6.229			11/15/34		2,824,600
	2,000,000	Corpus Christi Texas Independent School District (School Building) Ser. 10B PSF-GTD		6.124			08/15/32		2,282,860
	1,500,000	Dallas Texas Independent School District Ser. 10C PSF-GTD		6.450			02/15/35		1,724,490
	200,000	Delaware State Ser. 09D		5.200			10/01/26		219,340
	500,000	Denver Colorado City & County School District No. 1 Ser. 09C		5.664			12/01/33		572,250
	1,000,000	Douglas County Nevada School District Ser. 10A PSF-GTD		6.110			04/01/30		1,085,600
	605,000	Hallettsville Texas Independent School Ser. 10 PSF-GTD		6.265			08/15/30		658,476
	1,000,000	Hallettsville Texas Independent School Ser. 10 PSF-GTD		6.465			08/15/35		1,080,520
	4,980,000	Hawaii State Ser. 10DX		5.230			02/01/25		5,757,478

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

4

PowerShares Build America Bond Portfolio (BAB) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Municipal Bonds (continued)
		Ad Valorem Property Tax (continued)
$	1,000,000	Hawaii State Ser. 10DX		5.530	%		02/01/30	$	1,171,580
	2,000,000	Hayward California Unified School District Ser. 10 AGM		7.350			08/01/43		2,225,260
	1,000,000	Hillsborough County Florida Ser. 09B		6.350			07/01/39		1,107,950
	9,300,000	Illinois State Ser. 10		6.900			03/01/35		10,542,201
	5,000,000	Illinois State Ser. 10-1		5.363			02/01/19		5,454,550
	14,795,000	Illinois State Ser. 10-1		5.563			02/01/21		16,341,225
	2,500,000	Illinois State Ser. 10-2		5.650			03/01/20		2,771,750
	200,000	Itasca Illinois Ser. 09A		6.100			02/01/34		208,462
	320,000	Itasca Illinois Ser. 09A		6.200			02/01/39		334,061
	1,250,000	Katy Texas Independent School District Ser. 10 PSF-GTD		5.999			02/15/30		1,401,975
	2,000,000	Kiski Pennsylvania Area School District Ser. 10 AGM		6.526			09/01/31		2,235,220
	1,000,000	Lancaster Texas Ser. 10		6.528			02/15/40		1,097,290
	1,000,000	Las Virgenes California University School District (Election of 2006) Ser. 09B-1		7.262			08/01/34		1,117,410
	500,000	Lewisville Texas Independent School District Ser. 10B		6.024			08/15/28		569,815
	3,550,000	Lexington-Fayette Urban County Kentucky Government Ser. 10		5.100			09/01/24		3,560,508
	500,000	Los Angeles California Unified School District Qualified School Construction Bonds (Election of 2005) Ser. 10J-1		5.981			05/01/27		609,885
	200,000	Los Angeles California University School District Ser. 09KRY		5.750			07/01/34		238,408
	200,000	Louisville & Jefferson County Kentucky Metro Government (Recovery Zone Economic Development) Ser. 09E		5.450			11/15/27		229,504
	500,000	Lubbock Texas Ser. 10B		6.032			02/15/30		552,790
	4,300,000	Massachusetts State Ser. 10		4.480			05/01/24		4,635,701
	1,000,000	Montgomery County Pennsylvania Ser. 10		6.030			09/01/39		1,069,920
	3,000,000	Napa Valley California University School District Ser. 10B		6.507			08/01/43		3,715,410
	1,000,000	New Orleans Louisiana Ser. 10A		8.800			12/01/39		1,189,720
	2,210,000	New York City New York Ser. 10		5.817			10/01/31		2,432,879
	4,700,000	New York City New York Ser. 10		5.968			03/01/36		5,634,783
	1,000,000	New York City Ser. 09D-1		6.385			12/01/29		1,129,750
	960,000	North Las Vegas Nevada Ser. 10		5.372			06/01/19		819,427
	1,000,000	NYE County Nevada Ser. 10B AGM		6.300			08/01/35		1,045,690
	1,000,000	NYE County Nevada Ser. 10B AGM		6.400			08/01/40		1,091,380
	1,450,000	Peoria County Illinois Community Unit School District No. 323 Ser. 10		6.020			04/01/28		1,586,300
	1,000,000	Philadelphia Pennsylvania School District Ser. 10		6.615			06/01/30		1,020,180
	500,000	Pima County Arizona Unified School District No. 20 Vail Ser. 10 AGM		5.700			07/01/24		541,550
	1,000,000	Quaker Valley Pennsylvania School District Ser. 10 AGM		5.959			10/01/30		1,052,240
	2,000,000	Round Rock Texas Independent School District Ser. 10 PSF-GTD		5.774			08/01/30		2,203,320
	1,000,000	Round Rock Texas Independent School District Ser. 10B		6.054			08/01/35		1,094,660
	2,000,000	San Antonio Texas Independent School District Ser. 10 PSF-GTD		6.397			08/15/40		2,281,540
	1,500,000	San Francisco California City & County Ser. 10		6.260			06/15/30		1,812,690
	3,850,000	San Francisco California City & County Ser. 10D		6.260			06/15/30		4,652,571
	1,000,000	San Mateo California Union High School District Ser. 10B		6.733			09/01/34		1,099,960
	1,000,000	Santa Monica California Community College (District 2008 Election) Ser. 10A-1		6.663			08/01/30		1,128,310
	1,000,000	Santa Monica California Community College (District 2008 Election) Ser. 10A-1		6.763			08/01/34		1,125,520
	1,000,000	Santa Monica-Malibu Unified School District California Ser. 10C-1		5.796			07/01/25		1,069,220
	3,500,000	Santa Monica-Malibu Unified School District California Ser. 10C-1		6.434			07/01/30		3,845,380
	1,000,000	Snohomish County Washington Public Hospital District No. 3 (Cascade Valley Hospital) Ser. 10B		6.329			12/01/35		1,017,870
	200,000	Southwestern Community College District California Ser. 09B		7.130			08/01/31		221,292
	1,000,000	Tustin Unified School District School Facilities Improvement District No. 2008-1 (2008 Election) Sub-Ser. 10A-1		6.539			08/01/30		1,126,830
	5,000,000	Utah State Ser. 10B		3.369			07/01/21		5,212,300
	2,000,000	West Contra Costa California Unified School District (Taxable Election 2005) Ser. 09C-2		8.460			08/01/34		2,324,740
	1,500,000	Westlake Ohio City School District Ser. 10		5.728			12/01/35		1,599,795
	1,500,000	Westlake Ohio City School District Ser. 10		6.028			12/01/43		1,602,720
	675,000	Wilson County Tennessee Tenth Special School District Ser. 10		6.130			04/01/35		710,910
									186,084,518

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

5

PowerShares Build America Bond Portfolio (BAB) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Municipal Bonds (continued)
		College Revenue—7.9%
$	1,000,000	California Infrastructure & Economic Development Bank Rev. (California Infrastructure Economic Development) Ser. 10		6.486	%		05/15/49	$	1,230,690
	1,000,000	Colorado State Board Governors University Enterprise System Rev. Ser. 10		5.957			03/01/33		1,162,310
	1,145,000	Elizabeth City North Carolina University Rev. Ser. 10 AGM		8.097			04/01/32		1,354,157
	1,300,000	FAU Finance Corp. Florida Capital Improvement Rev. Ser. 10		7.439			07/01/30		1,514,721
	535,000	Florida State International University (Parking Facility) Rev. Ser. 09B		6.500			07/01/29		578,977
	2,000,000	Indiana University Rev. Ser. 10		5.536			06/01/30		2,196,860
	1,500,000	Indiana University Rev. Ser. 10		5.636			06/01/35		1,634,460
	5,000,000	Massachusetts State College Building Auth. Ser. 09C		5.832			05/01/30		5,634,350
	1,215,000	Mesa State College Colorado (Auxiliary Facilities Enterprise) Rev. Ser. 09B		5.800			05/15/40		1,368,187
	1,000,000	Michigan State University Rev. General Ser. 10A		6.173			02/15/50		1,134,170
	3,000,000	New Jersey State Educational Facilities Auth. Rev. Ser. 10		6.190			07/01/40		3,313,830
	1,000,000	New Mexico State University Regents Improvement Rev. Ser. 10B		6.124			04/01/30		1,082,540
	1,000,000	North Carolina State University at Raleigh Rev. Ser. 10B		5.927			10/01/30		1,117,180
	3,000,000	Northern Arizona University Rev. (Arizona Board of Regents) Ser. 10A		6.593			08/01/30		3,309,690
	500,000	Northern Arizona University System Rev. Ser. 09A		6.687			06/01/39		537,725
	250,000	Oakland University Michigan Rev. Ser. 09B		7.150			03/01/39		272,310
	1,000,000	Pennsylvania State Higher Educational Facilities Auth. Rev. (Temple University) Ser. 10		6.141			04/01/30		1,139,280
	500,000	University of Colorado Enterprise System Rev. Sub-Ser. 09B-2		6.114			06/01/29		530,285
	3,000,000	University of Hawaii Rev. Ser. 10		5.834			10/01/30		3,252,540
	5,000,000	University of Hawaii Rev. Ser. 10		6.034			10/01/40		5,385,800
	250,000	University of Michigan University Rev. Ser. 10A		5.513			04/01/30		287,880
	500,000	University of North Carolina University Ser. 09B		5.757			12/01/39		538,045
	10,000,000	University of Texas System Ser. 10C		4.644			08/15/30		10,848,300
	500,000	Utah State Board of Regents Auxiliary & Campus Facilities System Rev. Ser. 10		6.186			04/01/30		577,970
	1,435,000	Washington State Biomedical Research Facilities No. 3 Ser. 10B		6.416			07/01/30		1,752,207
	250,000	Wayne State University Ser. 09B		6.536			11/15/39		268,718
									52,023,182
		Electric Power Revenue—9.4%
	1,915,000	American Municipal Power, Inc. Ohio (Combined Hydroelectric Projects) Rev. Ser.10		8.084			02/15/50		2,827,134
	2,090,000	American Municipal Power, Inc. Ohio (Meldahl Hydroelectric-Remarketed) Ser. 10E		6.270			02/15/50		2,420,931
	2,000,000	American Municipal Power, Inc. Ohio Ser. 10		7.499			02/15/50		2,686,980
	750,000	Benton County Washington Public Utility District No. 1 Electric Rev. Ser. 10		6.546			11/01/30		840,607
	6,500,000	Cowlitz County Washington Public Utility District No. 1 Electric Ser. 10		6.884			09/01/32		7,496,385
	2,000,000	Douglas County Washington Public Utility District No. 1 Wells Hydroelectric Ser. 10B		5.245			09/01/30		2,144,960
	2,500,000	Grant County Washington Public Utility District No. 2 (Priest Rapids Hydroelectric) Ref. Ser. 10L		5.730			01/01/30		2,878,575
	2,750,000	Grant County Washington Public Utility District No. 2 (Priest Rapids Hydroelectric) Ref. Ser. 10L		5.830			01/01/40		3,175,287
	500,000	JEA Florida Electric Systems Rev. Ser. 09F		6.406			10/01/34		579,025
	2,000,000	Los Angeles California Department of Water & Power Rev. Ser. 10		6.166			07/01/40		2,192,700
	1,500,000	Los Angeles California Department of Water & Power Rev. Ser. 10		7.000			07/01/41		1,739,070
	500,000	Missouri Joint Municipal Electric Utility Commission Power Project Rev. Ser. 09A		6.790			01/01/29		539,840
	5,000,000	Missouri Joint Municipal Electric Utility Commission Power Project Rev. Ser. 09A		6.890			01/01/42		5,987,000
	1,000,000	Missouri Joint Municipal Electric Utility Commission Power Project Rev. Ser. 10		7.597			01/01/32		1,233,770
	8,909,000	Municipal Electric Auth. of Georgia (Plant Vogtle Units 3&4 Project P) Ser. 10		7.055			04/01/57		9,785,022
	1,000,000	Northern California Power Agency Rev. (Lodi Energy Center) Ser. 10B		7.311			06/01/40		1,166,630
	250,000	Northern Illinois Municipal Power Agency Power Project Rev. Ser. 10		7.620			01/01/30		289,752
	1,000,000	Oklahoma State Municipal Power Auth. (Power Supply System) Rev. Ser. 10		6.440			01/01/45		1,120,770
	1,900,000	Southern California Public Power Auth. (Power Project) Rev. Ser. 10		5.843			07/01/30		2,170,180
	2,000,000	Southern California Public Power Auth. Rev. Ser. 10		5.921			07/01/35		2,261,700
	2,570,000	Tacoma Washington Electric System Rev. Ser. 10 AGM		5.791			01/01/32		3,045,579
	5,795,000	Virgin Islands Water & Power Auth. (Electric System) Rev. Ser. 10C AGM		6.850			07/01/35		6,033,522
									62,615,419
		Fuel Sales Tax Revenue—3.6%
	5,000,000	Cape Coral Florida Gas Tax Rev. Ser. 10B		7.147			10/01/30		5,467,100
	6,000,000	Missouri Highways & Transportation Commission (Taxable Third Lien State Road) Ser. 09C		5.063			05/01/24		6,653,940
	2,250,000	Missouri State Highway & Transportation Commission (State Road Rev.) Ser. 09		4.963			05/01/23		2,520,967

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

6

PowerShares Build America Bond Portfolio (BAB) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Municipal Bonds (continued)
		Fuel Sales Tax Revenue (continued)
$	2,000,000	Washington State Ser. 10		5.090	%		08/01/33	$	2,240,840
	1,400,000	Washoe County Nevada Highway Rev. Ser. 10		7.063			02/01/30		1,555,288
	5,000,000	Washoe County Nevada Highway Rev. Ser. 10		7.213			02/01/39		5,569,300
									24,007,435
		General Fund—5.4%
	10,790,000	California State Ser. 09		7.500			04/01/34		14,912,319
	4,500,000	California State Ser. 10		7.950			03/01/36		5,417,325
	5,000,000	California State Ser. 10		7.600			11/01/40		7,193,700
	5,000,000	California State Various Purpose Ser. 10		5.700			11/01/21		5,905,450
	2,000,000	Kauai County Hawaii Ser. 10		5.763			08/01/33		2,293,300
									35,722,094
		Grant Revenue—1.9%
	12,700,000	Chicago Board of Education Ser. 09E		6.138			12/01/39		12,801,854
		Highway Tolls Revenue—5.9%
	595,000	Idaho Housing & Financing Association Ser. 10A-2		6.348			07/15/28		697,519
	200,000	Illinois State Toll Highway Auth. Toll Highway Rev. Ser. 09A		5.293			01/01/24		214,682
	250,000	New Hampshire State Turnpike System Rev. Ser. 09B		6.259			11/01/29		281,700
	250,000	New Hampshire State Turnpike System Rev. Ser. 09B		6.009			11/01/39		299,225
	5,000,000	North Texas Tollway Auth. Rev. Subordinate Lien Ser. 10B-2		8.410			02/01/30		5,703,050
	16,175,000	North Texas Tollway Auth. Rev. Subordinate Lien Ser. 10B-2		8.910			02/01/30		18,978,289
	2,000,000	Texas State Transportation Commission Rev. (First Tier) Ser. 10B		5.028			04/01/26		2,292,720
	2,000,000	Texas State Transportation Commission Rev. (First Tier) Ser. 10B		5.178			04/01/30		2,325,360
	5,000,000	Triborough Bridge & Tunnel Auth. Ser. 09B		5.420			11/15/36		5,534,550
	2,715,000	Triborough Bridge & Tunnel Auth. Ser. 09B		5.500			11/15/39		3,031,569
									39,358,664
		Hospital Revenue—1.6%
	1,000,000	Cuyahoga County Ohio Hospital Rev. Ser. 10		8.223			02/15/40		1,159,990
	2,000,000	King County Washington Public Hospital District No. 1 Hospital Facilities Rev. Ser. 10		7.900			06/15/30		2,167,940
	2,500,000	Lee Memorial Health System Florida Hospital Rev. Ser. 10A		7.281			04/01/27		2,864,225
	1,000,000	New Liberty Missouri Hospital District Hospital Rev. Ser. 10B		7.000			12/01/35		1,055,780
	1,000,000	Oak Valley California Hospital District (Health Facility) Rev. Ser. 10B		9.000			11/01/39		999,980
	1,500,000	Tangipahoa Parish Louisiana Hospital Service District No. 1 (North Oaks Health System) Ser. 09A AGC		7.200			02/01/42		1,604,100
	500,000	University California Regents Medical Center Pooled Rev. Ser. 09F		6.458			05/15/29		585,595
									10,437,610
		Hotel Occupancy Tax—0.5%
	2,780,000	Dallas Texas Convention Center Hotel Development Corp. Ser. 09		7.088			01/01/42		3,423,153
		Income Tax Revenue—1.7%
	3,785,000	New York City Transitional Finance Auth. (Building Aid) Rev. Sub-Ser. 10S-1B		6.828			07/15/40		4,729,244
	200,000	New York State Dormitory Auth. State Personal Income Tax Rev. Ser. 09F		5.292			03/15/25		229,898
	1,800,000	New York State Dormitory Auth. State Personal Income Tax Rev. Ser. 10		5.389			03/15/40		2,104,848
	1,400,000	New York State Dormitory Auth. State Personal Income Tax Rev. Ser. 10C		4.904			02/15/23		1,555,540
	2,000,000	New York State Urban Development Corp. Rev. State Personal Income Tax Ser. 10C		5.838			03/15/40		2,403,980
									11,023,510
		Lease Revenue—6.7%
	300,000	Beverly Hills California Public Financing Auth. Lease Rev. (Various Projects) Ser. 10C		6.674			06/01/30		337,440
	1,000,000	Beverly Hills California Public Financing Auth. Lease Rev. (Various Projects) Ser. 10C		6.774			06/01/40		1,117,360
	2,000,000	Brighton Colorado COP Ser. 10B AGM		6.550			12/01/30		2,198,140
	800,000	California State Public Works Board Lease Rev. (California State University Projects) Ser. 10B-2		7.804			03/01/35		1,007,712
	5,000,000	Colorado State Building Excellent Schools Today COP Ser. 10B		6.242			03/15/30		5,376,100
	3,000,000	Colorado State Building Excellent Schools Today COP Ser. 10E		7.017			03/15/31		3,408,870
	1,000,000	Columbus Indiana Multi-High School Building Corp. Ser. 10		6.446			01/15/30		1,073,610
	2,000,000	Consolidated Wyoming Municipalities Electric Power System Joint Powers Board (Gillette Electric) Ser. 10B		6.279			06/01/25		2,222,440
	265,000	Escondido California Union High School District COP (Qualified School Construction Bonds) Ser. 10 AGM		5.000			06/01/17		271,985

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

7

PowerShares Build America Bond Portfolio (BAB) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Municipal Bonds (continued)
		Lease Revenue (continued)
$	1,000,000	Franklin County Ohio Convention Facilities Auth. Ser. 10		6.390	%		12/01/30	$	1,152,960
	1,070,000	Franklin County Ohio Convention Facilities Auth. Ser. 10		6.540			12/01/36		1,252,874
	1,500,000	Las Vegas Nevada COP (City Hall Project) Ser. 09B		7.750			09/01/29		1,767,135
	500,000	Los Angeles California Municipal Improvement Corp. Lease Rev. (Recovery Zone Economic Development) Ser. 09D		7.757			09/01/39		523,715
	1,000,000	Medical Center Educational Building Corp. Mississippi Rev. Ser. 10		6.692			06/01/32		1,063,690
	2,000,000	Miami-Dade County Florida School Board COP Ser. 10		6.935			06/15/32		2,091,720
	1,000,000	New Jersey State Educational Facilities Auth. Rev. Ser. 10B		7.225			07/01/30		1,159,430
	2,000,000	New York City Educational Construction Fund Rev. Ser. 10		6.000			04/01/35		2,210,780
	1,000,000	Passaic County New Jersey Ser. 10		6.540			08/01/31		1,077,410
	500,000	Peoria Illinois Public Building Commission (School District Facilities) Rev. Ser. 09C AGC		6.580			12/01/29		561,855
	1,000,000	Prescott Arizona Municipal Property Corp. Rev. Ser. 10		6.245			07/01/29		1,103,860
	3,000,000	Regional Transportation District Colorado COP Ser. 10		7.672			06/01/40		3,534,210
	500,000	Salt Lake County Utah Municipal Building Auth. (Lease Rev.) Ser. 09B		5.820			12/01/29		588,300
	3,000,000	San Francisco California City and County COP Ser. 09D		6.487			11/01/41		3,508,380
	1,000,000	St. Charles Missouri COP Ser. 10B		5.650			02/01/30		1,074,530
	2,000,000	USF Financing Corp. Florida COP Ser. 10		8.548			07/01/40		2,320,700
	2,250,000	Williamsburg County South Carolina Public Facilities Corp. (Installment Purchase Rev.) Ser. 10		6.526			12/01/30		2,410,965
									44,416,171
		Miscellaneous Revenue—4.8%
	500,000	Battery Park City Auth. Rev. Ser. 09A		6.375			11/01/39		564,300
	500,000	Camden County New Jersey Improvement Auth. Rev. Ser. 09A		6.180			01/15/27		554,665
	2,000,000	Commonwealth Financing Auth. Pennsylvania Rev. Ser. 10		5.587			06/01/30		2,231,080
	1,000,000	Indianapolis Indiana Local Public Improvement Bond Bank Ser. 10		5.854			01/15/30		1,148,910
	3,500,000	Indianapolis Indiana Local Public Improvement Bond Bank Ser. 10B-2		5.966			01/15/30		4,199,090
	500,000	Kansas State Development Finance Auth. Rev. (Kansas State Projects) Ser. 10E-2		6.120			11/01/29		562,330
	2,000,000	Kansas State Development Finance Auth. Rev. Ser. 10		5.945			03/01/30		2,242,580
	7,000,000	Miami-Dade County Florida Special Obligation Ser. 10B		6.743			04/01/40		7,714,490
	3,000,000	New Jersey Economic Development Auth. Rev. Ser. 10CC-1		6.425			12/15/35		3,290,970
	4,220,000	New Jersey State Turnpike Auth. Rev. Ser. 09F		7.414			01/01/40		6,005,566
	1,000,000	Port St. Lucie Florida Stormwater Utility Rev. Ser. 10A AGC		7.376			05/01/39		1,144,720
	2,000,000	St. Cloud Florida Capital Improvement Rev. Ser. 10B AGM		5.849			09/01/30		2,111,420
									31,770,121
		Port, Airport & Marina Revenue—2.7%
	3,190,000	Chicago Illinois O’Hare International Airport Ser. 10		6.845			01/01/38		3,517,804
	7,000,000	Chicago Illinois O’Hare International Airport Ser. 10		6.395			01/01/40		8,431,080
	250,000	Long Beach California Senior Airport Rev. Ser. 09C		7.765			06/01/39		273,713
	5,000,000	South Jersey Port Corp. New Jersey Rev. (Marine Terminal) Ser. 09-P-3		7.365			01/01/40		5,918,000
									18,140,597
		Resource Recovery Revenue—0.6%
	3,905,000	Delaware State Solid Waste Auth. System Rev. Ser. 10B		4.970			06/01/19		4,165,346
		Sales Tax Revenue—1.4%
	200,000	Glendale Arizona Municipal Property Corp. (Excise Tax) Rev. Ser. 08B AGM		6.157			07/01/33		218,470
	250,000	Massachusetts State School Building Auth. Dedicated Sales Tax Rev. Ser. 09B		5.715			08/15/39		292,738
	2,500,000	Miami-Dade County Florida Transit Sales Surtax Rev. Ser. 10B		5.534			07/01/32		2,664,225
	1,000,000	Missouri State Highway & Transportation Commission State Road Rev. Ser. 10		5.020			05/01/25		1,080,270
	1,025,000	Santa Clara Valley California Transportation Auth. Sales Tax Rev. Ser. 10		5.876			04/01/32		1,193,479
	3,000,000	Washoe County Nevada Sales Tax Rev. Ser. 10		7.451			02/01/40		3,676,830
									9,126,012
		Sewer Revenue—2.5%
	3,000,000	East Bay California Municipal Utility District Wastewater System Rev. Ser. 10		5.026			06/01/32		3,257,820
	500,000	Hollywood Florida Water & Sewer Improvement Rev. Ser. 10B		7.198			10/01/39		590,020
	1,030,000	Jurupa California Community Services District COP Ser. 10B		6.347			09/01/25		1,177,064
	1,070,000	Jurupa California Community Services District COP Ser. 10B		6.497			09/01/26		1,229,259
	1,125,000	Jurupa California Community Services District COP Ser. 10B		6.597			09/01/27		1,298,711

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

8

PowerShares Build America Bond Portfolio (BAB) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Municipal Bonds (continued)
		Sewer Revenue (continued)
$	1,170,000	Jurupa California Community Services District COP Ser. 10B		6.697	%		09/01/28	$	1,357,504
	500,000	Knoxville Tennessee Waste Water System Rev. Ser. 10		6.300			04/01/45		556,600
	200,000	Memphis Tennessee Sanitary Sewage System Rev. Ser. 09B AGC		6.300			10/01/29		226,934
	1,000,000	Millbrae California Wastewater Rev. COP Ser. 09A		7.423			12/01/39		1,100,720
	2,000,000	Sacramento County California Sanitation Districts Financing Auth. Rev. Ser. 10A		6.325			08/01/40		2,415,040
	200,000	Sarasota Florida Water & Sewer System Rev. Ser. 10B		5.425			10/01/30		212,070
	3,000,000	Timpanogos Special Service District Utah Sewer Rev. Ser. 10 AGM		6.500			06/01/30		3,324,810
									16,746,552
		Special Assessment—0.2%
	1,500,000	Macomb Interceptor Drainage District Michigan Ser. 10A		5.375			05/01/35		1,541,670
		Tax Increment Revenue—0.4%
	500,000	Pensacola Florida Redevelopment Rev. Ser. 09B		7.263			04/01/33		553,310
	1,000,000	Temecula California Redevelopment Agency Tax Allocation Rev. (Temecula Redevelopment No. 1) Ser. 10B		7.930			08/01/30		1,061,990
	1,000,000	Temecula California Redevelopment Agency Tax Allocation Rev. (Temecula Redevelopment No. 1) Ser. 10B		8.180			08/01/39		1,056,080
									2,671,380
		Transit Revenue—3.6%
	1,200,000	Maryland State Transportation Auth. (Transportation Facilities Projects) Rev. Ser. 10B		5.604			07/01/30		1,390,740
	2,500,000	Metropolitan Transportation Auth. New York Dedicated Tax Fund (Metro Transit Auth.) Ser. 10A-2		6.089			11/15/40		3,095,675
	1,000,000	Metropolitan Transportation Auth. New York Rev. Ser. 10E		6.814			11/15/40		1,308,980
	6,000,000	New Jersey State Transportation Trust Fund Auth. Ser. 10C		5.754			12/15/28		6,944,400
	1,125,000	New Jersey State Transportation Trust Fund Auth. Ser. 10C		6.104			12/15/28		1,254,004
	7,455,000	New Jersey State Transportation Trust Fund Auth. System Ser. 10B		6.561			12/15/40		9,516,084
									23,509,883
		Water Revenue—5.1%
	1,500,000	Beaumont Texas Waterworks & Sewer System Ser. 10B		6.007			09/01/30		1,617,510
	200,000	Davie Florida Water & Sewer Rev. Ser. 10B AGM		6.599			10/01/30		218,764
	2,000,000	Fresno California Water System Rev. Ser. 10A-2		6.500			06/01/30		2,068,720
	1,250,000	JEA Florida Water & Sewer System Rev. Ser. 10A		6.210			10/01/33		1,479,525
	2,000,000	Jurupa California Community Services District COP (Water Bonds) Ser. 10B		7.192			09/01/40		2,284,140
	125,000	Kalamazoo Michigan Water Supply System Rev. Ser. 09		6.710			09/01/34		132,622
	500,000	Los Angeles California Department of Water & Power Water System Rev. Ser. 09C		5.381			07/01/24		577,465
	1,000,000	Metropolitan Water District of Southern California Ser. 10		6.947			07/01/40		1,142,220
	1,000,000	Moulton-Niguel California Water District COP Ser. 09		6.790			09/01/29		1,130,180
	1,000,000	New York City Municipal Water Finance Auth. Water & Sewer Rev. Ser. 10		5.790			06/15/41		1,072,620
	2,000,000	New York City Municipal Water Finance Auth. Water & Sewer Rev. Ser. 10		5.724			06/15/42		2,432,040
	1,100,000	New York City Municipal Water Finance Auth. Water & Sewer Rev. Ser. 10		6.124			06/15/42		1,201,827
	1,000,000	New York City Municipal Water Finance Auth. Water & Sewer Rev. Ser. 10DD		6.452			06/15/41		1,112,250
	1,000,000	New York State Environmental Facilities Corp. (State Clean Water & Drinking) Ser. 10		5.707			06/15/30		1,172,980
	500,000	Passaic Valley New Jersey Water Commission Water Supply Rev. Ser. 09B		7.570			12/15/29		568,285
	500,000	Passaic Valley New Jersey Water Commission Water Supply Rev. Ser. 09B		7.820			12/15/39		588,865
	500,000	Riverside California Water Rev. Ser. 09B		6.349			10/01/39		601,685
	3,000,000	San Francisco California City & County Public Utilities Commission Water Rev. Ser. 10DE		5.700			11/01/27		3,488,460
	500,000	Sarasota County Florida Utility System Rev. Ser. 10		7.126			10/01/30		587,065
	2,000,000	Seminole County Florida Water & Sewer Rev. Ser. 10B		6.443			10/01/40		2,191,840
	2,000,000	South Central Connecticut Regional Water Auth. Water System Rev. Ser. 10		6.243			08/01/30		2,273,120
	1,500,000	Sunrise Florida Utility System Rev. Ser. 10B		5.813			10/01/30		1,618,860
	1,000,000	Tacoma Washington Water System Rev. Ser. 10B		5.371			12/01/30		1,096,450
	1,275,000	Tucson Arizona Water Rev. Ser. 10		5.789			07/01/26		1,391,867
	1,250,000	Upper Eagle Regional Water Auth. Colorado Rev. Ser. 10		6.518			12/01/39		1,339,225
	500,000	Western Nassau County Water Auth. Water System Rev. Ser. 10		6.701			04/01/40		587,605
									33,976,190
		Total Municipal Bonds (Cost $575,158,698)							623,561,361

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

9

PowerShares Build America Bond Portfolio (BAB) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Money Market Fund—4.4%
	29,242,308	Invesco Premier Portfolio—Institutional Class(a) (Cost $29,242,308)	$	29,242,308
		Total Investments (Cost $604,401,006)—98.4%		652,803,669
		Other assets less liabilities—1.6%		10,771,854
		Net Assets—100.0%	$	663,575,523

Investment Abbreviations:

AGC—Assured Guaranty Corp.

AGM—Assured Guaranty Municipal Corp.

Auth.—Authority

COP—Certificate of Participation

PSF-GTD—Permanent School Fund Guaranteed

Ref.—Refunding Bonds

Rev.—Revenue

Ser.—Series

Notes to Schedule of Investments:

^(a)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

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

10

Portfolio Composition

PowerShares CEF Income Composite Portfolio (PCEF)

Asset Class Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Bonds	47.7
Option Income	26.6
Bonds/High Yield	23.0
Domestic Equity	2.7
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments

PowerShares CEF Income Composite Portfolio (PCEF)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Closed-End Funds—100.0%
		Bonds—47.7%
	1,869,271	Aberdeen Asia-Pacific Income Fund, Inc. (United Kingdom)	$	11,664,251
	1,903,927	AllianceBernstein Income Fund, Inc. (France)		14,089,060
	95,743	Ares Dynamic Credit Allocation Fund, Inc.		1,752,097
	102,548	Babson Capital Global Short Duration High Yield Fund		2,490,891
	398,942	BlackRock Build America Bond Trust		8,158,364
	190,631	BlackRock Core Bond Trust		2,571,612
	848,927	BlackRock Credit Allocation Income Trust		11,613,321
	68,248	BlackRock Enhanced Government Fund, Inc.		965,027
	248,559	BlackRock Income Opportunity Trust, Inc. (The)		2,647,153
	450,232	BlackRock Income Trust, Inc.		2,940,015
	204,796	BlackRock Limited Duration Income Trust		3,553,211
	276,450	BlackRock Multi-Sector Income Trust		5,083,915
	250,603	Blackstone/GSO Strategic Credit Fund		4,450,709
	149,221	Brookfield Mortgage Opportunity Income Fund, Inc. (Canada)		2,541,234
	96,897	Brookfield Total Return Fund, Inc. (Canada)		2,368,163
	203,332	Cohen & Steers Limited Duration Preferred and Income Fund, Inc.		5,038,567
	83,862	Cohen & Steers Select Preferred and Income Fund, Inc.		2,166,994
	82,518	Cutwater Select Income Fund		1,619,003
	520,223	DoubleLine Income Solutions Fund		11,418,895
	59,489	DoubleLine Opportunistic Credit Fund		1,371,816
	152,617	Duff & Phelps Utility and Corporate Bond Trust, Inc.		1,595,000
	808,502	Eaton Vance Limited Duration Income Fund		12,531,781
	132,253	Eaton Vance Short Duration Diversified Income Fund		2,007,601
	74,340	Eaton Vance Tax-Advantaged Bond and Options Strategies Fund		1,048,937
	68,628	Federated Enhanced Treasury Income Fund		929,223

Number of Shares			Value
		Closed-End Funds (continued)
		Bonds (continued)
	122,889	First Trust Aberdeen Global Opportunity Income Fund	$	1,748,710
	398,016	First Trust Intermediate Duration Preferred & Income Fund		9,023,023
	127,704	Flaherty & Crumrine Dynamic Preferred and Income Fund, Inc.		2,906,543
	49,505	Flaherty & Crumrine Preferred Income Fund, Inc. (France)		723,268
	173,207	Flaherty & Crumrine Preferred Securities Income Fund, Inc.		3,445,087
	46,835	Flaherty & Crumrine Total Return Fund, Inc.		962,928
	187,557	Franklin Templeton Limited Duration Income Trust		2,488,881
	118,983	Guggenheim Build America Bonds Managed Duration Trust		2,495,074
	80,564	Invesco Bond Fund(a)		1,504,936
	877,129	Invesco Senior Income Trust(a)		4,394,416
	32,904	John Hancock Investors Trust (Canada)		665,977
	143,909	John Hancock Preferred Income Fund (Canada)		2,922,792
	117,161	John Hancock Preferred Income Fund II (Canada)		2,388,913
	175,774	John Hancock Preferred Income Fund III (Canada)		3,144,597
	388,103	John Hancock Premium Dividend Fund (Canada)		5,239,390
	169,547	Legg Mason BW Global Income Opportunities Fund, Inc.		2,982,332
	428,978	MFS Charter Income Trust (Canada)		3,989,495
	223,667	MFS Government Markets Income Trust (Canada)		1,288,322
	810,186	MFS Intermediate Income Trust (Canada)		4,310,190
	620,097	MFS Multimarket Income Trust (Canada)		4,105,042
	50,826	Nuveen Build America Bond Opportunity Fund		1,064,296

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

11

PowerShares CEF Income Composite Portfolio (PCEF) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Closed-End Funds (continued)
		Bonds (continued)
	183,872	Nuveen Build American Bond Term Fund	$	3,673,763
	773,092	Nuveen Credit Strategies Income Fund		7,282,527
	415,747	Nuveen Diversified Currency Opportunities Fund		4,477,595
	305,539	Nuveen Floating Rate Income Fund		3,599,249
	34,172	Nuveen Mortgage Opportunity Term Fund 2		806,801
	159,695	Nuveen Preferred & Income Term Fund		3,730,475
	755,316	Nuveen Preferred Income Opportunities Fund		7,183,055
	500,997	Nuveen Quality Preferred Income Fund		4,168,295
	929,136	Nuveen Quality Preferred Income Fund II		8,213,562
	185,777	Nuveen Quality Preferred Income Fund III		1,584,678
	144,706	PIMCO Corporate & Income Strategy Fund (Germany)		2,410,802
	60,535	PIMCO Income Opportunity Fund (Germany)		1,752,488
	119,418	PIMCO Income Strategy Fund (Germany)		1,433,016
	280,713	PIMCO Income Strategy Fund II (Germany)		2,995,208
	149,504	PIMCO Strategic Income Fund, Inc. (Germany)		1,580,257
	118,048	Pioneer Floating Rate Trust (Italy)		1,456,712
	184,237	Prudential Short Duration High Yield Fund, Inc.		3,329,163
	507,240	Putnam Master Intermediate Income Trust (Canada)		2,602,141
	1,031,249	Putnam Premier Income Trust (Canada)		5,723,432
	89,735	Stone Harbor Emerging Markets Income Fund		1,748,038
	157,630	Strategic Global Income Fund, Inc. (Switzerland)		1,464,383
	331,666	TCW Strategic Income Fund, Inc.		1,817,530
	732,000	Templeton Global Income Fund		5,812,080
	88,471	Virtus Global Multi-Sector Income Fund		1,533,202
	119,689	Western Asset Global Corporate Defined Opportunity Fund, Inc.		2,221,428
	59,893	Western Asset Investment Grade Defined Opportunity Trust, Inc.		1,222,416
	58,593	Western Asset Mortgage Defined Opportunity Fund, Inc.		1,369,904
	56,602	Western Asset Premier Bond Fund		846,766
	530,061	Western Asset/Claymore Inflation-Linked Opportunities & Income Fund		6,366,033
	231,586	Western Asset/Claymore Inflation-Linked Securities & Income Fund		2,769,769
				273,585,820
		Bonds/High Yield—23.0%
	412,682	AllianceBernstein Global High Income Fund, Inc. (France)		6,144,835
	36,360	Ares Multi-Strategy Credit Fund, Inc.		806,101
	873,853	BlackRock Corporate High Yield Fund, Inc.		10,678,484
	1,292,856	BlackRock Debt Strategies Fund, Inc.		5,287,781
	205,990	BlackRock Floating Rate Income Strategies Fund, Inc.		2,982,735
	129,551	BlackRock Floating Rate Income Trust		1,817,600
	293,354	Credit Suisse Asset Management Income Fund, Inc. (Switzerland)		1,070,742
	389,823	Credit Suisse High Yield Bond Fund (Switzerland)		1,251,332
	286,488	Dreyfus High Yield Strategies Fund		1,226,169
	136,927	DWS Multi-Market Income Trust (Germany)		1,276,160

Number of Shares			Value
		Closed-End Funds (continued)
		Bonds/High Yield (continued)
	211,190	Eaton Vance Floating-Rate Income Trust	$	3,214,312
	179,027	Eaton Vance Senior Floating-Rate Trust		2,672,873
	283,621	First Trust High Income Long/Short Fund		5,110,850
	144,727	First Trust Senior Floating Rate Income Fund II		2,029,072
	173,246	Global High Income Fund, Inc. (Switzerland)		1,754,982
	32,429	Guggenheim Credit Allocation Fund		774,080
	717,828	ING Prime Rate Trust (Netherlands)		4,149,046
	117,021	Ivy High Income Opportunities Fund		2,171,910
	87,814	KKR Income Opportunities Fund		1,584,165
	437,725	Managed High Yield Plus Fund, Inc. (Switzerland)		941,546
	188,152	Morgan Stanley Emerging Markets Debt Fund, Inc.		1,911,624
	136,287	Neuberger Berman High Yield Strategies Fund, Inc.		1,868,495
	163,094	New America High Income Fund, Inc. (The)		1,626,047
	210,751	Nuveen Floating Rate Income Opportunity Fund		2,579,592
	213,127	Nuveen Senior Income Fund		1,500,414
	241,291	PIMCO Corporate & Income Opportunity Fund (Germany)		4,422,864
	960,867	PIMCO Dynamic Credit Income Fund (Germany)		22,330,549
	33,272	Pioneer Diversified High Income Trust (Italy)		693,721
	229,984	Prudential Global Short Duration High Yield Fund, Inc.		4,073,017
	220,413	Templeton Emerging Markets Income Fund		3,184,968
	391,007	Wells Fargo Advantage Income Opportunities Fund		3,722,387
	327,523	Wells Fargo Advantage Multi-Sector Income Fund		4,837,515
	240,223	Western Asset Emerging Markets Debt Fund, Inc.		4,275,969
	224,119	Western Asset Emerging Markets Income Fund, Inc.		2,846,311
	174,235	Western Asset Global High Income Fund, Inc.		2,221,496
	402,038	Western Asset High Income Fund II, Inc.		3,775,137
	579,365	Western Asset High Income Opportunity Fund, Inc.		3,487,777
	158,059	Western Asset High Yield Defined Opportunity Fund, Inc.		2,854,546
	329,501	Western Asset Managed High Income Fund, Inc.		1,917,696
	103,176	Western Asset Worldwide Income Fund, Inc.		1,304,145
				132,379,045
		Domestic Equity—2.7%
	152,782	Cohen & Steers Global Income Builder, Inc.		1,880,746
	1,036,151	DNP Select Income Fund, Inc.		10,299,341
	114,284	GAMCO Natural Resources Gold & Income Trust		1,207,982
	108,715	John Hancock Hedged Equity & Income Fund (Canada)		1,954,696
				15,342,765
		Option Income—26.6%
	444,882	AllianzGI NFJ Dividend, Interest & Premium Strategy Fund (Germany)		8,216,971

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

12

PowerShares CEF Income Composite Portfolio (PCEF) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Closed-End Funds (continued)
		Option Income (continued)
	233,041	BlackRock Energy and Resources Trust	$	5,837,677
	340,546	BlackRock Enhanced Capital and Income Fund, Inc.		4,869,808
	1,432,463	BlackRock Enhanced Equity Dividend Trust		11,602,950
	549,338	BlackRock Global Opportunities Equity Trust		8,119,216
	30,398	BlackRock Health Sciences Trust		1,083,993
	849,131	BlackRock International Growth and Income Trust		6,860,979
	453,876	BlackRock Real Asset Equity Trust		4,143,888
	103,990	Columbia Seligman Premium Technology Growth Fund, Inc.		1,659,680
	132,021	Dow 30 Enhanced Premium & Income Fund, Inc.		1,780,963
	64,754	Dow 30 Premium & Dividend Income Fund, Inc.		1,038,654
	274,436	Eaton Vance Enhanced Equity Income Fund		3,592,367
	320,171	Eaton Vance Enhanced Equity Income Fund II		4,171,828
	491,804	Eaton Vance Risk-Managed Diversified Equity Income Fund		5,522,959
	133,649	Eaton Vance Tax-Managed Buy-Write Income Fund		2,130,365
	342,023	Eaton Vance Tax-Managed Buy-Write Opportunities Fund		4,993,536
	1,043,805	Eaton Vance Tax-Managed Diversified Equity Income Fund		11,857,625
	729,640	Eaton Vance Tax-Managed Global Buy-Write Opportunities Fund		8,959,979
	2,070,772	Eaton Vance Tax-Managed Global Diversified Equity Income Fund		21,121,874
	158,730	First Trust Enhanced Equity Income Fund		2,207,934
	104,459	Guggenheim Enhanced Equity Income Fund		947,443
	87,898	ING Asia Pacific High Dividend Equity Income Fund (Netherlands)		1,100,483
	127,764	ING Global Advantage and Premium Opportunity Fund (Netherlands)		1,505,060
	689,334	ING Global Equity Dividend & Premium Opportunity Fund (Netherlands)		6,527,993
	152,817	ING Infrastructure Industrials and Materials Fund (Netherlands)		2,674,298
	179,328	ING Risk Managed Natural Resources Fund (Netherlands)		1,927,776
	151,843	Madison Covered Call & Equity Strategy Fund		1,269,407
	85,511	NASDAQ Premium Income & Growth Fund, Inc.		1,609,317
	179,205	Nuveen Equity Premium Advantage Fund		2,320,705
	113,362	Nuveen Equity Premium and Growth Fund		1,636,947
	267,889	Nuveen Equity Premium Income Fund		3,437,016
	455,083	Nuveen Equity Premium Opportunity Fund		5,820,512
	151,117	Nuveen Global Equity Income Fund		2,064,258
				152,614,461
		Total Closed-End Funds (Cost $552,871,505)		573,922,091

Number of Shares			Value
		Money Market Fund—0.6%
	3,300,710	Invesco Premier Portfolio—Institutional Class(b) (Cost $3,300,710)	$	3,300,710
		Total Investments (Cost $556,172,215)—100.6%		577,222,801
		Other assets less liabilities—(0.6)%		(3,267,240	)
		Net Assets—100.0%	$	573,955,561

Notes to Schedule of Investments:

^(a)  Affiliated company. The Fund’s Adviser and the adviser for Invesco Bond Fund and Invesco Senior Income Trust are wholly-owned subsidiaries of Invesco Ltd, and therefore are considered to be affiliated. See Note 4.

^(b)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

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

13

Portfolio Composition

PowerShares Chinese Yuan Dim Sum Bond Portfolio (DSUM)

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Banks	24.0
Sovereign	15.9
Real Estate	12.1
Diversified Financial Services	7.1
Auto Manufacturers	5.1
Oil & Gas	3.6
Electric	3.4
Airlines	3.1
Insurance	3.0
Telecommunications	2.6
Food	2.5
Holding Companies-Diversified	2.4
Machinery-Construction & Mining	1.5

Lodging	1.5
Iron/Steel	1.4
Building Materials	1.3
Mining	1.0
Retail	1.0
Chemicals	1.0
Computers	0.9
Investment Companies	0.9
Gas	0.8
Multi-National	0.8
Water	0.7
Internet	0.4
Transportation	0.4
Leisure Time	0.2
Money Market Fund Plus Other Assets Less Liabilities	1.4

Schedule of Investments

PowerShares Chinese Yuan Dim Sum Bond Portfolio (DSUM)

April 30, 2014

(Unaudited)

Foreign Currency(a)		Principal Amount			Interest Rate			Maturity Date		Value
				Corporate Bonds—82.7%
				Australia—0.4%
	CNH		5,000,000	Australia & New Zealand Banking Group Ltd., Series E, MTN		2.900	%		08/14/15	$	807,346
				Brazil—2.1%
	CNH		24,000,000	Banco BTG Pactual SA, Series G, MTN		4.100			03/26/16		3,794,067
				British Virgin Islands—1.3%
	CNH		5,000,000	Fantasia Holdings Group Co. Ltd.		7.875			05/27/16		759,851
	CNH		10,000,000	Russian Standard Bank Via Russian Standard Finance SA		8.000			02/14/15		1,593,976
											2,353,827
				China—46.8%
	CNH		5,000,000	21Vianet Group, Inc.		7.875			03/22/16		815,298
	CNH		15,000,000	Agricultural Bank of China Ltd.		3.200			11/28/15		2,402,436
	CNH		5,000,000	Agricultural Development Bank of China		2.980			06/22/14		799,856
	CNH		3,000,000	Agricultural Development Bank of China		3.200			06/22/15		479,924
	CNH		10,000,000	Agricultural Development Bank of China		3.080			01/16/16		1,600,579
	CNH		5,000,000	Agricultural Development Bank of China		3.280			01/16/17		800,468
	CNH		4,000,000	AVIC International Finance & Investment Ltd.		4.800			07/09/15		649,243
	CNH		4,000,000	Bank of China Ltd.		3.100			07/23/15		640,627
	CNH		10,000,000	Bank of China Ltd., Series E, MTN		3.450			01/16/17		1,603,626
	CNH		8,000,000	Beijing Enterprises Water Group Ltd.		3.750			06/30/14		1,279,621
	CNH		20,000,000	Bestgain Real Estate Lyra Ltd., Series E, MTN		4.500			12/04/18		3,186,817
	CNH		16,000,000	Bitronic Ltd.		4.000			12/12/15		2,572,544
	CNH		30,000,000	BOC Aviation Pte Ltd., Series E, MTN		4.500			11/20/18		4,856,682
	CNH		13,000,000	CCBL Funding PLC		3.200			11/29/15		2,080,638
	CNH		15,000,000	Central Plaza Development Ltd.		7.600			11/29/15		2,503,150
	CNH		20,000,000	China CITIC Bank Corp. Ltd.		4.125			02/27/17		3,225,740

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

14

PowerShares Chinese Yuan Dim Sum Bond Portfolio (DSUM) (continued)

April 30, 2014

(Unaudited)

Foreign Currency(a)		Principal Amount			Interest Rate			Maturity Date		Value
				Corporate Bonds (continued)
				China (continued)
	CNH		4,000,000	China Construction Bank Asia Corp. Ltd., Series E, MTN		3.250	%		03/13/16	$	640,784
	CNH		5,000,000	China Datang Corp., Series E, MTN		3.600			04/25/16		796,695
	CNH		2,000,000	China Datang Overseas Hong Kong Co. Ltd.		4.500			06/15/15		323,677
	CNH		1,000,000	China Development Bank Corp.		2.950			08/02/15		159,992
	CNH		6,000,000	China Development Bank Corp.		4.200			01/19/27		921,451
	CNH		20,000,000	China Development Bank Corp., Series E, MTN		3.600			11/13/18		3,224,509
	CNH		10,500,000	China Electronics Corp Holdings Co Ltd, MTN		4.700			01/16/17		1,678,486
	CNH		13,000,000	China General Nuclear Power Holding Corp.		3.750			11/01/15		2,091,121
	CNH		11,700,000	China Minmetals Corp.		3.650			03/28/16		1,864,232
	CNH		6,000,000	China Resources Power Holdings Co. Ltd.		3.750			11/12/15		966,098
	CNH		11,000,000	China Shanshui Cement Group Ltd.		6.500			07/22/14		1,765,038
	CNH		4,840,000	Eastern Air Overseas Hong Kong Corp. Ltd.		4.000			08/08/14		774,634
	CNH		15,000,000	Eastern Air Overseas Hong Kong Corp. Ltd.		3.875			06/05/16		2,391,638
	CNH		7,000,000	Export-Import Bank of China (The)		2.900			04/05/15		1,122,041
	CNH		6,000,000	Export-Import Bank of China (The)		3.350			06/18/17		962,761
	CNH		10,000,000	Export-Import Bank of China (The), Series A		3.000			01/21/16		1,600,759
	CNH		10,000,000	Export-Import Bank of China (The), Series B		3.250			01/21/17		1,604,313
	CNH		1,000,000	Far East Horizon Ltd.		3.900			06/03/14		159,951
	CNH		2,000,000	Future Land Development Holdings Ltd.		9.750			04/23/16		314,375
	CNH		5,000,000	Gemdale Asia Holding Ltd.		5.625			03/21/18		763,498
	CNH		12,000,000	Gemdale International Holding Ltd.		9.150			07/26/15		2,002,135
	CNH		10,000,000	Greentown China Holdings Ltd.		5.625			05/13/16		1,579,653
	CNH		16,600,000	Hainan Airlines Hong Kong Co. Ltd.		6.000			09/16/14		2,666,732
	CNH		12,870,000	Huaneng Power International, Inc.		3.850			02/05/16		2,064,085
	CNH		1,000,000	Industrial & Commercial Bank of China Asia Ltd., Series E, MTN		6.000			11/04/21		167,713
	CNH		6,000,000	Industrial & Commercial Bank of China Ltd.		3.000			08/14/15		960,607
	CNH		10,000,000	Industrial & Commercial Bank of China Ltd., Series E, MTN		3.200			11/28/15		1,602,836
	CNH		7,100,000	Intime Retail Group Co. Ltd.		4.650			07/21/14		1,136,742
	CNH		10,000,000	Kaisa Group Holdings Ltd.		6.875			04/22/16		1,589,007
	CNH		10,000,000	Kunzhi Ltd		5.875			01/15/17		1,637,321
	CNH		1,000,000	Rainbow Days Ltd.		2.000			06/30/14		159,569
	CNH		19,100,000	Rainbow Days Ltd.		3.000			06/30/16		3,012,260
	CNH		9,000,000	Right Century Ltd.		1.850			06/03/14		1,438,167
	CNH		11,000,000	Shanghai Baosteel Group Corp.		3.500			12/01/14		1,765,329
	CNH		5,500,000	Shanghai Baosteel Group Corp.		4.150			03/01/17		893,847
	CNH		9,000,000	Sinotruk Hong Kong Ltd.		4.500			08/01/14		1,442,869
	CNH		10,000,000	Starway Assets Enterprises Inc		4.100			01/22/17		1,602,088
	CNH		5,000,000	Value Success International Ltd.		2.075			06/09/14		798,685
	CNH		10,000,000	Value Success International Ltd.		4.000			11/21/16		1,611,377
	CNH		20,000,000	Value Success International Ltd.		4.750			11/04/18		3,239,342
	CNH		10,000,000	Victor Soar Ltd.		5.750			11/10/14		1,608,432
											86,602,098
				France—4.9%
	CNH		11,000,000	Air Liquide Finance SA		3.000			09/19/16		1,775,490
	CNH		4,000,000	Lafarge Shui On Cement Ltd.		9.000			11/14/14		659,325
	CNH		17,000,000	Renault SA, Series E, MTN		5.625			10/10/14		2,747,456
	CNH		24,000,000	Total Capital SA, Series E, MTN		3.750			09/24/18		3,956,303
											9,138,574
				Germany—1.6%
	CNH		2,000,000	KFW		2.000			05/21/14		319,847
	CNH		1,000,000	Volkswagen International Finance NV, Series E, MTN		2.150			05/23/16		158,768
	CNH		5,000,000	Volkswagen International Finance NV, Series E, MTN		3.750			11/30/17		821,932
	CNH		10,000,000	Volkswagen International Finance NV, Series E, MTN		3.500			01/23/19		1,621,550
											2,922,097

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

15

PowerShares Chinese Yuan Dim Sum Bond Portfolio (DSUM) (continued)

April 30, 2014

(Unaudited)

Foreign Currency(a)		Principal Amount			Interest Rate			Maturity Date		Value
				Corporate Bonds (continued)
				Hong Kong—7.4%
	CNH		5,000,000	Asia Standard International Group Ltd.		6.500	%		04/17/18	$	780,216
	CNH		3,000,000	Bank of East Asia China Ltd.		3.650			05/11/15		483,069
	CNH		17,000,000	Far East Consortium International Ltd.		5.875			03/04/16		2,720,178
	CNH		2,000,000	Genting Hong Kong Ltd.		3.950			06/30/14		320,248
	CNH		10,000,000	HKCG Finance Ltd., Series E, MTN		1.400			04/11/16		1,550,869
	CNH		5,000,000	I.T. Ltd.		6.250			05/15/18		688,674
	CNH		6,000,000	Lai Fung Holdings Ltd.		6.875			04/25/18		932,404
	CNH		10,000,000	New World China Land Ltd.		8.500			04/11/15		1,671,315
	CNH		15,500,000	New World China Land Ltd.		5.500			02/06/18		2,516,423
	CNH		5,000,000	Noble Group Ltd., Series E, MTN		4.000			01/30/16		807,740
	CNH		5,000,000	RKI Finance 2013 Ltd., Series E, MTN		6.000			12/03/16		793,967
	CNH		3,140,000	Silvery Castle Ltd.		2.750			07/14/14		501,387
											13,766,490
				India—0.6%
	CNH		7,000,000	ICICI Bank Ltd.		4.900			09/21/15		1,143,572
				Mexico—1.8%
	CNH		20,000,000	America Movil SAB de CV		3.500			02/08/15		3,225,526
				Netherlands—0.2%
	CNH		2,000,000	Cooperatieve Centrale Raiffeisen-Boerenleenbank BA		3.250			09/20/15		325,288
				New Zealand—1.7%
	CNH		20,000,000	Fonterra Cooperative Group Ltd, Series E, MTN		3.600			01/29/19		3,206,807
				Russia—3.8%
	CNH		10,000,000	Gazprombank OJSC Via GPB Eurobond Finance PLC, Series E, MTN		4.250			01/30/17		1,537,316
	CNH		15,000,000	Russian Agricultural Bank OJSC Via RSHB Capital SA, MTN		3.600			02/04/16		2,297,353
	CNH		20,000,000	VTB Bank OJSC Via VTB Capital SA		4.500			10/30/15		3,153,752
											6,988,421
				Singapore—1.6%
	CNH		10,500,000	Global Logistic Properties Ltd.		3.375			05/11/16		1,683,265
	CNH		8,000,000	Yanlord Land HK Co. Ltd.		5.375			05/23/16		1,258,327
											2,941,592
				South Korea—0.4%
	CNH		2,000,000	Export-Import Bank of Korea, Series E, MTN		3.250			07/27/15		323,377
	CNH		3,000,000	Korea Development Bank (The)		3.300			06/21/15		485,026
											808,403
				Supranational—0.8%
	CNH		10,000,000	Asian Development Bank, Series E, MTN		2.850			10/21/20		1,548,663
				Sweden—0.6%
	CNH		7,000,000	Volvo Treasury AB, Series E, MTN		3.800			11/22/15		1,130,326
				United Arab Emirates—1.2%
	CNH		13,700,000	Emirates NBD PJSC, Series E, MTN		4.875			03/12/15		2,229,555
				United Kingdom—3.2%
	CNH		16,000,000	BP Capital Markets PLC, Series E, MTN		3.950			10/08/18		2,644,956
	CNH		5,000,000	HSBC Bank PLC, Series E, MTN		2.875			04/30/15		807,482
	CNH		15,000,000	Standard Chartered PLC		2.625			05/31/16		2,392,041
											5,844,479
				United States—2.3%
	CNH		12,000,000	Caterpillar Financial Services Corp., MTN		3.350			11/26/14		1,930,678
	CNH		5,500,000	Caterpillar Financial Services Corp., MTN		3.250			06/26/15		889,136
	CNH		9,000,000	Ford Motor Co.		4.875			03/26/15		1,472,031
											4,291,845
				Total Corporate Bonds (Cost $156,769,704)							153,068,976

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

16

PowerShares Chinese Yuan Dim Sum Bond Portfolio (DSUM) (continued)

April 30, 2014

(Unaudited)

Foreign Currency(a)		Principal Amount			Interest Rate			Maturity Date		Value
				Sovereign Debt Obligations—15.9%
				China—15.9%
	CNH		1,000,000	China Government Bond		0.600	%		08/18/14	$	159,216
	CNH		6,000,000	China Government Bond		1.800			12/01/15		956,390
	CNH		20,000,000	China Government Bond		2.870			06/27/16		3,233,756
	CNH		23,500,000	China Government Bond		1.400			08/18/16		3,682,067
	CNH		5,000,000	China Government Bond		2.600			11/22/16		805,025
	CNH		33,000,000	China Government Bond		2.560			06/29/17		5,260,253
	CNH		5,000,000	China Government Bond		1.940			08/18/18		766,112
	CNH		10,000,000	China Government Bond		3.090			11/22/18		1,604,791
	CNH		20,000,000	China Government Bond		3.090			06/29/20		3,117,009
	CNH		16,000,000	China Government Bond		2.480			12/01/20		2,370,667
	CNH		10,000,000	China Government Bond		2.360			08/18/21		1,457,641
	CNH		19,000,000	China Government Bond		3.100			06/29/22		2,854,648
	CNH		9,000,000	China Government Bond		3.160			06/27/23		1,359,881
	CNH		12,500,000	China Government Bond		3.480			06/29/27		1,863,301
				Total Sovereign Debt Obligations (Cost $30,817,511)							29,490,757
		Number of Shares
				Money Market Fund—0.6%
			1,147,533	Invesco Premier Portfolio—Institutional Class(b) (Cost $1,147,533)							1,147,533
				Total Investments (Cost $188,734,748)—99.2%							183,707,266
				Other assets less liabilities—0.8%							1,541,831
				Net Assets—100.0%						$	185,249,097

Investment Abbreviations:

CNH—Chinese Yuan

MTN—Medium-Term Notes

Notes to Schedule of Investments:

^(a)  Foreign denominated security. Principal amount denominated in currency indicated.

^(b)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

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

17

Portfolio Composition

PowerShares Emerging Markets Sovereign Debt Portfolio (PCY)

Country Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Venezuela	4.6
Brazil	4.5
Turkey	4.5
Colombia	4.4
Panama	4.4
Peru	4.4
Romania	4.4
El Salvador	4.3
Hungary	4.3
South Africa	4.3
Mexico	4.3

Indonesia	4.3
Philippines	4.3
Latvia	4.3
Uruguay	4.2
Poland	4.2
Qatar	4.2
Croatia	4.2
Lithuania	4.2
Sri Lanka	4.2
South Korea	4.2
Ukraine	4.0
Russia	3.9
Money Market Fund Plus Other Assets Less Liabilities	1.4

Schedule of Investments

PowerShares Emerging Markets Sovereign Debt Portfolio (PCY)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Sovereign Debt Obligations—98.6%
		Brazil—4.5%
$	22,087,000	Brazilian Government International Bond		8.250	%		01/20/34	$	29,927,885
	24,409,000	Brazilian Government International Bond		7.125			01/20/37		30,023,070
	28,864,000	Brazilian Government International Bond		5.625			01/07/41		30,090,720
									90,041,675
		Colombia—4.4%
	21,608,000	Colombia Government International Bond		8.125			05/21/24		28,630,600
	22,293,000	Colombia Government International Bond		7.375			09/18/37		29,315,295
	25,688,000	Colombia Government International Bond		6.125			01/18/41		29,476,980
									87,422,875
		Croatia—4.2%
	25,256,000	Croatia Government International Bond		6.750			11/05/19		27,813,170
	25,886,000	Croatia Government International Bond		6.625			07/14/20		28,345,170
	25,969,000	Croatia Government International Bond		6.375			03/24/21		28,046,520
									84,204,860
		El Salvador—4.3%
	26,855,000	El Salvador Government International Bond		8.250			04/10/32		30,077,600
	27,901,000	El Salvador Government International Bond		7.650			06/15/35		29,121,669
	26,075,000	El Salvador Government International Bond		7.625			02/01/41		27,183,187
									86,382,456
		Hungary—4.3%
	25,770,000	Hungary Government International Bond		6.250			01/29/20		28,643,355
	25,379,000	Hungary Government International Bond		6.375			03/29/21		28,361,032
	24,138,000	Hungary Government International Bond		7.625			03/29/41		29,025,945
									86,030,332

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

18

PowerShares Emerging Markets Sovereign Debt Portfolio (PCY) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Sovereign Debt Obligations (continued)
		Indonesia—4.3%
$	21,815,000	Indonesia Government International Bond		8.500	%		10/12/35	$	28,332,231
	26,595,000	Indonesia Government International Bond		6.625			02/17/37		28,888,819
	23,163,000	Indonesia Government International Bond		7.750			01/17/38		28,171,999
									85,393,049
		Latvia—4.3%
	43,319,000	Republic of Latvia		2.750			01/12/20		42,062,749
	38,543,000	Republic of Latvia		5.250			06/16/21		42,597,724
									84,660,473
		Lithuania—4.2%
	23,342,000	Lithuania Government International Bond		7.375			02/11/20		28,360,530
	24,059,000	Lithuania Government International Bond		6.125			03/09/21		27,776,116
	23,487,000	Lithuania Government International Bond		6.625			02/01/22		28,037,606
									84,174,252
		Mexico—4.3%
	25,393,000	Mexico Government International Bond, MTN		6.050			01/11/40		29,430,487
	20,488,000	Mexico Government International Bond, Series A, MTN		7.500			04/08/33		27,402,700
	23,055,000	Mexico Government International Bond, Series A, MTN		6.750			09/27/34		28,818,750
									85,651,937
		Panama—4.4%
	23,376,000	Panama Government International Bond		7.125			01/29/26		29,453,760
	20,270,000	Panama Government International Bond		8.875			09/30/27		28,631,375
	24,167,000	Panama Government International Bond		6.700			01/26/36		29,151,444
									87,236,579
		Peru—4.4%
	22,065,000	Peruvian Government International Bond		7.350			07/21/25		29,015,475
	19,202,000	Peruvian Government International Bond		8.750			11/21/33		28,947,015
	26,549,000	Peruvian Government International Bond		5.625			11/18/50		29,037,969
									87,000,459
		Philippines—4.3%
	18,618,000	Philippine Government International Bond		9.500			02/02/30		29,183,715
	19,868,000	Philippine Government International Bond		7.750			01/14/31		27,393,005
	22,402,000	Philippine Government International Bond		6.375			10/23/34		28,114,510
									84,691,230
		Poland—4.2%
	25,274,000	Poland Government International Bond		5.125			04/21/21		28,085,733
	25,651,000	Poland Government International Bond		5.000			03/23/22		27,991,654
	30,159,000	Poland Government International Bond		3.000			03/17/23		28,364,539
									84,441,926
		Qatar—4.2%
	16,917,000	Qatar Government International Bond		9.750			06/15/30		26,728,860
	24,233,000	Qatar Government International Bond		6.400			01/20/40		29,108,680
	25,673,000	Qatar Government International Bond		5.750			01/20/42		28,432,847
									84,270,387
		Romania—4.4%
	36,355,000	Romanian Government International Bond, MTN		6.750			02/07/22		43,171,562
	42,924,000	Romanian Government International Bond, MTN		4.375			08/22/23		43,675,170
									86,846,732
		Russia—3.9%
	27,600,000	Russian Foreign Bond—Eurobond		4.875			09/16/23		26,323,500
	28,200,000	Russian Foreign Bond—Eurobond		5.625			04/04/42		26,226,000
	27,800,000	Russian Foreign Bond—Eurobond		5.875			09/16/43		26,062,500
									78,612,000

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

19

PowerShares Emerging Markets Sovereign Debt Portfolio (PCY) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Sovereign Debt Obligations (continued)
		South Africa—4.3%
$	25,556,000	South Africa Government International Bond		5.500	%		03/09/20	$	27,919,930
	25,654,000	South Africa Government International Bond		5.875			05/30/22		28,577,273
	25,671,000	South Africa Government International Bond		6.250			03/08/41		29,200,763
									85,697,966
		South Korea—4.2%
	33,646,000	Republic of Korea		7.125			04/16/19		41,342,522
	40,264,000	Republic of Korea		3.875			09/11/23		42,629,510
									83,972,032
		Sri Lanka—4.2%
	26,359,000	Sri Lanka Government International Bond		6.250			10/04/20		27,644,001
	27,139,000	Sri Lanka Government International Bond		6.250			07/27/21		28,088,865
	28,065,000	Sri Lanka Government International Bond		5.875			07/25/22		28,275,488
									84,008,354
		Turkey—4.5%
	23,907,000	Turkey Government International Bond		8.000			02/14/34		30,679,853
	26,009,000	Turkey Government International Bond		6.875			03/17/36		29,851,830
	24,191,000	Turkey Government International Bond		7.250			03/05/38		28,968,722
									89,500,405
		Ukraine—4.0%
	30,004,000	Ukraine Government International Bond		9.250			07/24/17		27,303,640
	30,912,000	Ukraine Government International Bond		6.750			11/14/17		26,352,480
	30,462,000	Ukraine Government International Bond		7.750			09/23/20		25,968,855
									79,624,975
		Uruguay—4.2%
	21,369,000	Uruguay Government International Bond		8.000			11/18/22		27,459,165
	21,945,000	Uruguay Government International Bond		7.875			01/15/33		29,104,556
	21,335,000	Uruguay Government International Bond		7.625			03/21/36		28,082,194
									84,645,915
		Venezuela—4.6%
	27,945,000	Venezuela Government International Bond		13.625			08/15/18		29,691,563
	37,982,000	Venezuela Government International Bond		7.000			12/01/18		31,411,114
	32,610,000	Venezuela Government International Bond		11.750			10/21/26		30,408,825
									91,511,502
		Total Sovereign Debt Obligations (Cost $2,066,813,324)							1,966,022,371
Number of Shares
		Money Market Fund—0.5%
	9,849,108	Invesco Premier Portfolio—Institutional Class(a) (Cost $9,849,108)							9,849,108
		Total Investments (Cost $2,076,662,432)—99.1%							1,975,871,479
		Other assets less liabilities—0.9%							17,615,805
		Net Assets—100.0%						$	1,993,487,284

Investment Abbreviations:

MTN—Medium-Term Notes

Notes to Schedule of Investments:

^(a) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

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

20

Portfolio Composition

PowerShares Fundamental Emerging Markets Local Debt Portfolio (PFEM)

Country Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Russia	9.8
Brazil	9.0
Indonesia	8.2
Mexico	8.2
South Korea	7.1
Poland	5.0
Czech Republic	4.8
Israel	4.6
Malaysia	4.6
Philippines	4.5
Colombia	4.4
Chile	4.4
Thailand	4.3
South Africa	4.2
Hungary	4.0
Peru	3.9
China	3.7
Turkey	3.5
Other Assets Less Liabilities	1.8

Schedule of Investments

PowerShares Fundamental Emerging Markets Local Debt Portfolio (PFEM)

April 30, 2014

(Unaudited)

Foreign Currency(a)		Principal Amount			Interest Rate			Maturity Date		Value
				Sovereign Debt Obligations—98.2%
				Brazil—9.0%
	BRL		500,000	Brazil Notas do Tesouro Nacional, Series NTNF		10.000	%		01/01/17	$	213,132
	BRL		450,000	Brazil Notas do Tesouro Nacional, Series NTNF		10.000			01/01/23		176,525
											389,657
				Chile—4.4%
	CLP		20,000,000	Chile Government International Bond		6.000			01/01/18		37,326
	CLP		80,000,000	Chile Government International Bond		6.000			01/01/20		151,413
											188,739
				China—3.7%
	CNH		1,000,000	China Government Bond		2.560			06/29/17		159,402
				Colombia—4.4%
	COP		150,000,000	Colombian TES, Series B		7.250			06/15/16		80,890
	COP		200,000,000	Colombian TES, Series B		7.000			05/04/22		108,210
											189,100

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

21

PowerShares Fundamental Emerging Markets Local Debt Portfolio (PFEM) (continued)

April 30, 2014

(Unaudited)

Foreign Currency(a)		Principal Amount			Interest Rate			Maturity Date		Value
				Sovereign Debt Obligations (continued)
				Czech Republic—4.8%
	CZK		1,500,000	Czech Republic Government Bond, Series 51		4.000	%		04/11/17	$	83,517
	CZK		2,100,000	Czech Republic Government Bond, Series 61		3.850			09/29/21		123,638
											207,155
				Hungary—4.0%
	HUF		35,000,000	Hungary Government Bond, Series 17/A		6.750			11/24/17		173,361
				Indonesia—8.2%
	IDR		1,000,000,000	Indonesia Treasury Bond, Series FR40		11.000			09/15/25		104,029
	IDR		1,000,000,000	Indonesia Treasury Bond, Series FR58		8.250			06/15/32		84,529
	IDR		2,000,000,000	Indonesia Treasury Bond, Series FR61		7.000			05/15/22		163,339
											351,897
				Israel—4.6%
	ILS		400,000	Israel Government Bond, Series 0122		5.500			01/31/22		136,473
	ILS		200,000	Israel Government Bond, Series 0816		4.250			08/31/16		62,144
											198,617
				Malaysia—4.6%
	MYR		150,000	Malaysia Government Bond, Series 0311		4.392			04/15/26		46,464
	MYR		500,000	Malaysia Government Bond, Series 0512		3.314			10/31/17		152,131
											198,595
				Mexico—8.2%
	MXN		2,000,000	Mexican Bonos, Series M		5.000			06/15/17		155,949
	MXN		2,200,000	Mexican Bonos, Series M 20		8.500			05/31/29		195,517
											351,466
				Peru—3.9%
	PEN		200,000	Peru Government Bond		7.840			08/12/20		79,710
	PEN		250,000	Peru Government Bond		6.900			08/12/37		89,494
											169,204
				Philippines—4.5%
	PHP		4,000,000	Philippine Government Bond, Series 2017		8.000			07/19/31		120,770
	PHP		3,000,000	Philippine Government Bond, Series 7-51		5.000			08/18/18		71,570
											192,340
				Poland—5.0%
	PLN		300,000	Poland Government Bond, Series 0922		5.750			09/23/22		111,569
	PLN		300,000	Poland Government Bond, Series 1016		4.750			10/25/16		103,927
											215,496
				Russia—9.8%
	RUB		9,000,000	Russian Federal Bond—OFZ, Series 5080		7.400			04/19/17		244,207
	RUB		7,000,000	Russian Federal Bond—OFZ, Series 6209		7.600			07/20/22		178,449
											422,656
				South Africa—4.2%
	ZAR		1,200,000	South Africa Government Bond, Series R186		10.500			12/21/26		131,961
	ZAR		500,000	South Africa Government Bond, Series R203		8.250			09/15/17		48,465
											180,426
				South Korea—7.1%
	KRW		300,000,000	Korea Treasury Bond, Series 2106		4.250			06/10/21		306,712
				Thailand—4.3%
	THB		3,000,000	Thailand Government Bond		3.250			06/16/17		94,938
	THB		3,000,000	Thailand Government Bond		3.580			12/17/27		90,234
											185,172

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

22

PowerShares Fundamental Emerging Markets Local Debt Portfolio (PFEM) (continued)

April 30, 2014

(Unaudited)

Foreign Currency(a)		Principal Amount			Interest Rate			Maturity Date		Value
				Sovereign Debt Obligations (continued)
				Turkey—3.5%
	TRY		300,000	Turkey Government Bond		10.500	%		01/15/20	$	150,397
				Total Investments (Cost $4,898,375)—98.2%							4,230,392
				Other assets less liabilities—1.8%							78,800
				Net Assets—100.0%						$	4,309,192

Investment Abbreviations:

BRL—Brazilian Real

CLP—Chilean Peso

CNH—Chinese Yuan

COP—Colombian Peso

CZK—Czech Koruna

HUF—Hungarian Forint

IDR—Indonesian Rupiah

ILS—Israeli Sheqel

KRW—South Korean Won

MXN—Mexican Peso

MYR—Malaysian Ringgit

PEN—Peruvian Nuevo Sol

PHP—Philippine Peso

PLN—Polish Zloty

RUB—Russian Ruble

THB—Thai Baht

TRY—Turkish Lira

ZAR—South African Rand

Notes to Schedule of Investments:

^(a) Foreign denominated security. Principal amount denominated in currency indicated.

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

23

Portfolio Composition

PowerShares Fundamental High Yield^® Corporate Bond Portfolio (PHB)

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Oil & Gas	12.3
Healthcare-Services	6.5
Telecommunications	5.7
Commercial Services	5.6
Retail	5.3
Media	4.7
Diversified Financial Services	4.5
Electric	3.3
Packaging & Containers	3.1
Chemicals	2.9
Banks	2.4
Auto Parts & Equipment	2.2
Auto Manufacturers	2.1
Lodging	2.1
Building Materials	2.1
Pipelines	1.9
Home Builders	1.9
Internet	1.8
Oil & Gas Services	1.8
Iron/Steel	1.8
Entertainment	1.8
Semiconductors	1.7
Food	1.6
Coal	1.6

Electronics	1.5
Pharmaceuticals	1.5
REITs	1.4
Healthcare-Products	1.3
Aerospace/Defense	1.3
Apparel	1.2
Mining	1.0
Advertising	0.9
Miscellaneous Manufacturing	0.9
Electrical Components & Equipment	0.8
Leisure Time	0.6
Machinery-Construction & Mining	0.5
Airlines	0.5
Environmental Control	0.5
Beverages	0.5
Transportation	0.5
Real Estate	0.5
Computers	0.4
Forest Products & Paper	0.4
Machinery-Diversified	0.4
Holding Companies-Diversified	0.3
Biotechnology	0.3
Engineering & Construction	0.3
Home Furnishings	0.2
Housewares	0.0
Money Market Fund Plus Other Assets Less Liabilities	1.6

Schedule of Investments

PowerShares Fundamental High Yield^® Corporate Bond Portfolio (PHB)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Corporate Bonds—98.4%
		Advertising—0.9%
$	1,443,000	Interpublic Group of Cos., Inc. (The)		6.250	%		11/15/14	$	1,491,485
	1,700,000	Interpublic Group of Cos., Inc. (The)		3.750			02/15/23		1,687,024
	2,380,000	Lamar Media Corp.		5.875			02/01/22		2,552,550
									5,731,059
		Aerospace/Defense—1.3%
	2,400,000	Alliant Techsystems, Inc.		6.875			09/15/20		2,622,000
	2,400,000	B/E Aerospace, Inc.		5.250			04/01/22		2,496,000
	1,200,000	GenCorp, Inc.		7.125			03/15/21		1,308,000
	985,000	Triumph Group, Inc.		8.625			07/15/18		1,044,100
	1,000,000	Triumph Group, Inc.		4.875			04/01/21		990,000
									8,460,100

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

24

PowerShares Fundamental High Yield^® Corporate Bond Portfolio (PHB) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Corporate Bonds (continued)
		Airlines—0.5%
$	3,000,000	US Airways Group, Inc.		6.125	%		06/01/18	$	3,165,000
		Apparel—1.2%
	2,500,000	Hanesbrands, Inc.		6.375			12/15/20		2,737,500
	2,000,000	Nine West Holdings, Inc.(a)		8.250			03/15/19		1,980,000
	1,500,000	William Carter Co. (The)(a)		5.250			08/15/21		1,560,000
	1,410,000	Wolverine World Wide, Inc.		6.125			10/15/20		1,529,850
									7,807,350
		Auto Manufacturers—2.1%
	6,500,000	General Motors Co.(a)		3.500			10/02/18		6,654,375
	6,800,000	General Motors Co.(a)		4.875			10/02/23		7,063,500
									13,717,875
		Auto Parts & Equipment—2.2%
	1,400,000	American Axle & Manufacturing, Inc.		6.625			10/15/22		1,524,250
	1,500,000	Dana Holding Corp.		6.500			02/15/19		1,601,250
	1,600,000	Dana Holding Corp.		5.375			09/15/21		1,660,000
	5,140,000	Goodyear Tire & Rubber Co. (The)		8.250			08/15/20		5,711,825
	2,680,000	Tenneco, Inc.		6.875			12/15/20		2,948,000
	1,000,000	Titan International, Inc.(a)		6.875			10/01/20		1,065,000
									14,510,325
		Banks—2.4%
	3,950,000	CIT Group, Inc.		5.000			05/15/17		4,231,437
	6,201,000	Regions Bank		7.500			05/15/18		7,333,445
	3,637,000	Synovus Financial Corp.		5.125			06/15/17		3,846,128
									15,411,010
		Beverages—0.5%
	1,400,000	Constellation Brands, Inc.		7.250			05/15/17		1,620,500
	1,500,000	Constellation Brands, Inc.		4.250			05/01/23		1,477,500
									3,098,000
		Biotechnology—0.3%
	1,975,000	Bio-Rad Laboratories, Inc.		4.875			12/15/20		2,081,164
		Building Materials—2.1%
	1,500,000	Griffon Corp.(a)		5.250			03/01/22		1,485,000
	1,150,000	Headwaters, Inc.		7.625			04/01/19		1,242,000
	1,955,000	Masco Corp.		6.125			10/03/16		2,165,162
	1,700,000	Masco Corp.		7.125			03/15/20		1,984,750
	3,000,000	Owens Corning		4.200			12/15/22		2,997,153
	1,495,000	Vulcan Materials Co.		6.500			12/01/16		1,671,597
	1,600,000	Vulcan Materials Co.		7.500			06/15/21		1,892,000
									13,437,662
		Chemicals—2.9%
	3,350,000	Ashland, Inc.		3.875			04/15/18		3,458,875
	1,600,000	Celanese US Holdings LLC		6.625			10/15/18		1,692,000
	1,600,000	Celanese US Holdings LLC		4.625			11/15/22		1,616,000
	2,210,000	Chemtura Corp.		5.750			07/15/21		2,303,925
	3,700,000	Huntsman International LLC		4.875			11/15/20		3,764,750
	1,400,000	Kraton Polymers LLC		6.750			03/01/19		1,491,875
	1,621,000	PolyOne Corp.		5.250			03/15/23		1,645,315
	2,900,000	Rockwood Specialties Group, Inc.		4.625			10/15/20		2,987,000
									18,959,740
		Coal—1.6%
	1,600,000	Alpha Natural Resources, Inc.		9.750			04/15/18		1,512,000
	1,800,000	Alpha Natural Resources, Inc.		6.000			06/01/19		1,377,000
	1,600,000	CONSOL Energy, Inc.		8.000			04/01/17		1,667,680

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

25

PowerShares Fundamental High Yield^® Corporate Bond Portfolio (PHB) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Corporate Bonds (continued)
		Coal (continued)
$	1,800,000	CONSOL Energy, Inc.		8.250	%		04/01/20	$	1,968,750
	1,800,000	Peabody Energy Corp.		6.000			11/15/18		1,921,500
	1,900,000	Peabody Energy Corp.		6.250			11/15/21		1,938,000
									10,384,930
		Commercial Services—5.6%
	2,000,000	ADT Corp. (The)		2.250			07/15/17		1,983,750
	2,200,000	ADT Corp. (The)		3.500			07/15/22		1,947,000
	2,216,000	Avis Budget Car Rental LLC		8.250			01/15/19		2,371,120
	2,400,000	Avis Budget Car Rental LLC		5.500			04/01/23		2,436,000
	3,100,000	CoreLogic, Inc.		7.250			06/01/21		3,379,000
	2,000,000	FTI Consulting, Inc.		6.750			10/01/20		2,162,500
	1,350,000	H&E Equipment Services, Inc.		7.000			09/01/22		1,491,750
	5,312,000	Hertz Corp. (The)		6.750			04/15/19		5,723,680
	2,900,000	Iron Mountain, Inc.		6.000			08/15/23		3,095,750
	3,700,000	PHH Corp.		6.375			08/15/21		3,848,000
	348,000	R.R. Donnelley & Sons Co.		7.250			05/15/18		405,420
	2,050,000	R.R. Donnelley & Sons Co.		7.875			03/15/21		2,357,500
	2,755,000	United Rentals North America, Inc.		7.625			04/15/22		3,113,150
	1,765,000	Verisk Analytics, Inc.		5.800			05/01/21		1,968,104
									36,282,724
		Computers—0.4%
	2,700,000	NCR Corp.(a)		6.375			12/15/23		2,902,500
		Diversified Financial Services—4.5%
	1,100,000	Aircastle Ltd.		6.750			04/15/17		1,237,500
	1,100,000	Aircastle Ltd.		6.250			12/01/19		1,190,750
	2,700,000	Discover Financial Services		6.450			06/12/17		3,083,891
	2,723,000	Discover Financial Services		5.200			04/27/22		2,965,091
	2,200,000	E*TRADE Financial Corp.		6.750			06/01/16		2,389,750
	2,127,000	E*TRADE Financial Corp.		6.375			11/15/19		2,321,089
	6,622,000	International Lease Finance Corp.		8.750			03/15/17		7,727,046
	1,242,000	National Money Mart Co.		10.375			12/15/16		1,310,310
	3,300,000	SLM Corp., MTN		6.250			01/25/16		3,572,250
	3,308,000	SLM Corp., MTN		8.000			03/25/20		3,833,145
									29,630,822
		Electric—3.3%
	3,228,000	AES Corp. (The)		8.000			10/15/17		3,841,320
	3,100,000	AES Corp. (The)		7.375			07/01/21		3,565,000
	4,100,000	FirstEnergy Corp., Series A		2.750			03/15/18		4,130,557
	4,200,000	FirstEnergy Corp., Series B		4.250			03/15/23		4,135,001
	2,500,000	NRG Energy, Inc.		7.625			01/15/18		2,843,750
	2,650,000	NRG Energy, Inc.		8.250			09/01/20		2,938,188
									21,453,816
		Electrical Components & Equipment—0.8%
	2,470,000	Anixter, Inc.		5.625			05/01/19		2,649,075
	2,700,000	WESCO Distribution, Inc.(a)		5.375			12/15/21		2,754,000
									5,403,075
		Electronics—1.5%
	5,900,000	Flextronics International Ltd.		5.000			02/15/23		5,959,000
	1,600,000	Jabil Circuit, Inc.		8.250			03/15/18		1,916,000
	2,100,000	Jabil Circuit, Inc.		4.700			09/15/22		2,094,750
									9,969,750
		Engineering & Construction—0.3%
	2,100,000	MasTec, Inc.		4.875			03/15/23		2,037,000

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

26

PowerShares Fundamental High Yield^® Corporate Bond Portfolio (PHB) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Corporate Bonds (continued)
		Entertainment—1.8%
$	2,400,000	Cinemark USA, Inc.		5.125	%		12/15/22	$	2,412,000
	1,525,000	National CineMedia LLC		6.000			04/15/22		1,608,875
	2,300,000	Pinnacle Entertainment, Inc.		7.500			04/15/21		2,507,000
	3,480,000	Regal Entertainment Group		5.750			03/15/22		3,593,100
	1,307,000	Vail Resorts, Inc.		6.500			05/01/19		1,378,068
									11,499,043
		Environmental Control—0.5%
	2,075,000	Covanta Holding Corp.		7.250			12/01/20		2,285,094
	855,000	Darling International, Inc.(a)		5.375			01/15/22		879,581
									3,164,675
		Food—1.6%
	1,400,000	B&G Foods, Inc.		4.625			06/01/21		1,396,500
	1,700,000	Chiquita Brands International, Inc.		7.875			02/01/21		1,901,875
	4,348,000	Dean Foods Co.		7.000			06/01/16		4,793,670
	1,750,000	Post Holdings, Inc.		7.375			02/15/22		1,876,875
	500,000	TreeHouse Foods, Inc.		4.875			03/15/22		507,500
									10,476,420
		Forest Products & Paper—0.4%
	960,000	Cascades, Inc. (Canada)		7.750			12/15/17		1,001,160
	1,583,000	Clearwater Paper Corp.		7.125			11/01/18		1,683,916
									2,685,076
		Healthcare-Products—1.3%
	2,300,000	Alere, Inc.		7.250			07/01/18		2,535,750
	2,500,000	Hologic, Inc.		6.250			08/01/20		2,656,250
	1,500,000	Hospira, Inc.		6.050			03/30/17		1,657,995
	1,500,000	Hospira, Inc.		5.800			08/12/23		1,657,999
									8,507,994
		Healthcare-Services—6.5%
	1,908,000	Centene Corp.		5.750			06/01/17		2,094,030
	2,999,000	CHS/Community Health Systems, Inc.		8.000			11/15/19		3,295,151
	4,500,000	CHS/Community Health Systems, Inc.(a)		6.875			02/01/22		4,685,625
	3,700,000	DaVita HealthCare Partners, Inc.		5.750			08/15/22		3,931,250
	4,900,000	HCA, Inc.		6.500			02/15/16		5,328,750
	4,784,000	HCA, Inc.		6.500			02/15/20		5,346,120
	3,250,000	Health Net, Inc.		6.375			06/01/17		3,550,625
	2,350,000	Kindred Healthcare, Inc.		8.250			06/01/19		2,520,375
	2,500,000	LifePoint Hospitals, Inc.(a)		5.500			12/01/21		2,606,250
	1,700,000	Tenet Healthcare Corp.		6.250			11/01/18		1,877,225
	1,700,000	Tenet Healthcare Corp.(a)		6.000			10/01/20		1,788,188
	2,606,000	Universal Health Services, Inc.		7.125			06/30/16		2,931,750
	2,600,000	WellCare Health Plans, Inc.		5.750			11/15/20		2,788,500
									42,743,839
		Holding Companies-Diversified—0.3%
	1,000,000	Leucadia National Corp.		8.125			09/15/15		1,090,400
	1,000,000	Leucadia National Corp.		5.500			10/18/23		1,054,010
									2,144,410
		Home Builders—1.9%
	1,900,000	Centex Corp.		6.500			05/01/16		2,099,500
	1,300,000	D.R. Horton, Inc.		3.750			03/01/19		1,300,000
	1,570,000	D.R. Horton, Inc.		4.375			09/15/22		1,556,262
	1,600,000	KB Home		7.000			12/15/21		1,720,000
	2,356,000	Lennar Corp., Series B		5.600			05/31/15		2,467,910
	445,000	Standard Pacific Corp.		8.375			05/15/18		527,325

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

27

PowerShares Fundamental High Yield^® Corporate Bond Portfolio (PHB) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Corporate Bonds (continued)
		Home Builders (continued)
$	400,000	Standard Pacific Corp.		8.375	%		01/15/21	$	476,000
	850,000	Toll Brothers Finance Corp.		8.910			10/15/17		1,024,250
	1,155,000	Toll Brothers Finance Corp.		5.875			02/15/22		1,244,513
									12,415,760
		Home Furnishings—0.2%
	1,400,000	Tempur Sealy International, Inc.		6.875			12/15/20		1,533,000
		Housewares—0.0%
	103,000	Libbey Glass, Inc.		6.875			05/15/20		106,291
		Internet—1.8%
	800,000	Cyrusone LP		6.375			11/15/22		854,000
	2,101,000	Equinix, Inc.		5.375			04/01/23		2,148,272
	2,770,000	Expedia, Inc.		5.950			08/15/20		3,075,883
	1,900,000	IAC/InterActiveCorp		4.750			12/15/22		1,876,250
	2,000,000	Netflix, Inc.(a)		5.750			03/01/24		2,080,000
	1,850,000	VeriSign, Inc.		4.625			05/01/23		1,780,625
									11,815,030
		Iron/Steel—1.8%
	2,755,000	Commercial Metals Co.		7.350			08/15/18		3,144,144
	3,150,000	Steel Dynamics, Inc.		7.625			03/15/20		3,425,625
	2,200,000	United States Steel Corp.		6.050			06/01/17		2,392,500
	2,292,000	United States Steel Corp.		7.375			04/01/20		2,578,500
									11,540,769
		Leisure Time—0.6%
	1,700,000	Royal Caribbean Cruises Ltd.		7.250			06/15/16		1,895,500
	2,200,000	Royal Caribbean Cruises Ltd.		5.250			11/15/22		2,255,000
									4,150,500
		Lodging—2.1%
	2,100,000	Choice Hotels International, Inc.		5.750			07/01/22		2,228,625
	1,500,000	Felcor Lodging LP		6.750			06/01/19		1,612,500
	2,100,000	MGM Resorts International		6.625			07/15/15		2,231,250
	2,100,000	MGM Resorts International		7.750			03/15/22		2,447,550
	4,465,000	Wynn Las Vegas LLC		7.750			08/15/20		4,956,597
									13,476,522
		Machinery-Construction & Mining—0.5%
	2,975,000	Terex Corp.		6.000			05/15/21		3,198,125
		Machinery-Diversified—0.4%
	2,200,000	Manitowoc Co., Inc. (The)		8.500			11/01/20		2,480,500
		Media—4.7%
	1,835,000	AMC Networks, Inc.		7.750			07/15/21		2,064,375
	1,900,000	Cablevision Systems Corp.		8.625			09/15/17		2,242,000
	5,590,000	CCO Holdings LLC		6.625			01/31/22		6,044,188
	4,000,000	Clear Channel Worldwide Holdings, Inc., Series B		6.500			11/15/22		4,300,000
	1,900,000	CSC Holdings LLC		6.750			11/15/21		2,125,625
	2,643,000	DISH DBS Corp.		7.125			02/01/16		2,894,085
	2,600,000	DISH DBS Corp.		6.750			06/01/21		2,944,500
	1,850,000	McClatchy Co. (The)		9.000			12/15/22		2,122,875
	1,935,000	Nielsen Finance LLC		7.750			10/15/18		2,068,031
	1,900,000	Nielsen Finance LLC		4.500			10/01/20		1,923,750
	1,900,000	Sinclair Television Group, Inc.		6.125			10/01/22		1,949,875
									30,679,304
		Mining—1.0%
	1,750,000	Alcoa, Inc.		5.550			02/01/17		1,904,031
	3,500,000	Alcoa, Inc.		5.400			04/15/21		3,702,514
	1,200,000	Hecla Mining Co.		6.875			05/01/21		1,167,000
									6,773,545

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

28

PowerShares Fundamental High Yield^® Corporate Bond Portfolio (PHB) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Corporate Bonds (continued)
		Miscellaneous Manufacturing—0.9%
$	2,550,000	Harsco Corp.		5.750	%		05/15/18	$	2,736,469
	2,600,000	SPX Corp.		6.875			09/01/17		2,964,000
									5,700,469
		Oil & Gas—12.3%
	1,800,000	Atwood Oceanics, Inc.		6.500			02/01/20		1,926,000
	3,700,000	Berry Petroleum Co.		6.375			09/15/22		3,811,000
	1,700,000	Bill Barrett Corp.		7.625			10/01/19		1,844,500
	700,000	Bonanza Creek Energy, Inc.		6.750			04/15/21		752,500
	1,000,000	Carrizo Oil & Gas, Inc.		8.625			10/15/18		1,075,000
	3,160,000	Chesapeake Energy Corp.		9.500			02/15/15		3,383,570
	3,317,000	Chesapeake Energy Corp.		6.625			08/15/20		3,744,064
	2,300,000	Cimarex Energy Co.		5.875			05/01/22		2,512,750
	1,300,000	Clayton Williams Energy, Inc.		7.750			04/01/19		1,391,000
	2,300,000	Concho Resources, Inc.		5.500			04/01/23		2,406,375
	3,376,000	Denbury Resources, Inc.		4.625			07/15/23		3,228,300
	1,500,000	EP Energy LLC		9.375			05/01/20		1,736,250
	400,000	Forest Oil Corp.		7.500			09/15/20		348,000
	700,000	Kodiak Oil & Gas Corp.		8.125			12/01/19		780,500
	1,150,000	Laredo Petroleum, Inc.(a)		5.625			01/15/22		1,174,437
	5,400,000	Murphy Oil USA, Inc.(a)		6.000			08/15/23		5,602,500
	3,400,000	Newfield Exploration Co.		5.625			07/01/24		3,561,500
	500,000	Oasis Petroleum, Inc.		7.250			02/01/19		536,250
	1,000,000	Offshore Group Investment Ltd.		7.500			11/01/19		1,045,000
	1,590,000	Parker Drilling Co.(a)		6.750			07/15/22		1,653,600
	1,300,000	PDC Energy, Inc.		7.750			10/15/22		1,433,250
	2,625,000	QEP Resources, Inc.		6.875			03/01/21		2,913,750
	2,500,000	Range Resources Corp.		6.750			08/01/20		2,706,250
	800,000	Resolute Energy Corp.		8.500			05/01/20		840,000
	1,400,000	Rosetta Resources, Inc.		5.625			05/01/21		1,431,500
	2,600,000	SandRidge Energy, Inc.		7.500			03/15/21		2,775,500
	1,850,000	SM Energy Co.		6.625			02/15/19		1,986,437
	2,000,000	Stone Energy Corp.		7.500			11/15/22		2,180,000
	1,700,000	Swift Energy Co.		7.875			03/01/22		1,700,000
	2,100,000	Tesoro Corp.		4.250			10/01/17		2,226,000
	2,123,000	Tesoro Corp.		5.375			10/01/22		2,213,228
	2,100,000	Unit Corp.		6.625			05/15/21		2,236,500
	1,830,000	W&T Offshore, Inc.		8.500			06/15/19		1,985,550
	2,823,000	Western Refining, Inc.		6.250			04/01/21		2,950,035
	1,140,000	Whiting Petroleum Corp.		6.500			10/01/18		1,208,400
	1,300,000	Whiting Petroleum Corp.		5.000			03/15/19		1,374,750
	1,200,000	Whiting Petroleum Corp.		5.750			03/15/21		1,290,000
	2,200,000	WPX Energy, Inc.		5.250			01/15/17		2,367,750
	1,900,000	WPX Energy, Inc.		6.000			01/15/22		1,973,625
									80,305,621
		Oil & Gas Services—1.8%
	1,475,000	Basic Energy Services, Inc.		7.750			02/15/19		1,585,625
	1,392,000	Forum Energy Technologies, Inc.(a)		6.250			10/01/21		1,485,960
	1,350,000	Hornbeck Offshore Services, Inc.		5.875			04/01/20		1,410,750
	1,850,000	Key Energy Services, Inc.		6.750			03/01/21		1,961,000
	2,510,000	Oil States International, Inc.		6.500			06/01/19		2,641,775
	2,200,000	SESI LLC		7.125			12/15/21		2,486,000
									11,571,110
		Packaging & Containers—3.1%
	3,722,000	Ball Corp.		4.000			11/15/23		3,470,765
	3,505,000	Crown Americas LLC		6.250			02/01/21		3,811,687
	4,100,000	Crown Americas LLC		4.500			01/15/23		3,936,000

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

29

PowerShares Fundamental High Yield^® Corporate Bond Portfolio (PHB) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Corporate Bonds (continued)
		Packaging & Containers (continued)
$	2,500,000	Graphic Packaging International, Inc.		4.750	%		04/15/21	$	2,500,000
	3,717,000	Owens-Brockway Glass Container, Inc.		7.375			05/15/16		4,135,163
	2,200,000	Silgan Holdings, Inc.		5.000			04/01/20		2,277,000
									20,130,615
		Pharmaceuticals—1.5%
	2,500,000	Endo Health Solutions, Inc.		7.000			07/15/19		2,700,000
	1,900,000	Forest Laboratories, Inc.(a)		4.375			02/01/19		2,023,500
	1,900,000	Forest Laboratories, Inc.(a)		5.000			12/15/21		2,035,375
	2,600,000	Omnicare, Inc.		7.750			06/01/20		2,860,000
									9,618,875
		Pipelines—1.9%
	6,291,000	Kinder Morgan Finance Co. LLC		5.700			01/05/16		6,716,033
	4,951,000	ONEOK, Inc.		4.250			02/01/22		4,816,085
	1,000,000	Sabine Pass Liquefaction LLC(a)		6.250			03/15/22		1,050,000
									12,582,118
		Real Estate—0.5%
	3,000,000	CBRE Services, Inc.		5.000			03/15/23		3,037,500
		REITs—1.4%
	3,000,000	Crown Castle International Corp.		5.250			01/15/23		3,097,500
	1,000,000	DuPont Fabros Technology LP		5.875			09/15/21		1,047,500
	1,800,000	EPR Properties		5.750			08/15/22		1,941,016
	1,300,000	MPT Operating Partnership LP		6.875			05/01/21		1,420,250
	1,825,000	Omega Healthcare Investors, Inc.		6.750			10/15/22		1,993,812
									9,500,078
		Retail—5.3%
	1,795,000	AutoNation, Inc.		6.750			04/15/18		2,073,225
	1,700,000	AutoNation, Inc.		5.500			02/01/20		1,853,000
	3,700,000	Best Buy Co., Inc.		5.000			08/01/18		3,848,000
	3,704,000	Best Buy Co., Inc.		5.500			03/15/21		3,815,120
	2,550,000	Limited Brands, Inc.		6.900			07/15/17		2,913,375
	2,700,000	Limited Brands, Inc.		5.625			02/15/22		2,851,875
	2,760,000	Penske Automotive Group, Inc.		5.750			10/01/22		2,901,450
	2,700,000	PVH Corp.		4.500			12/15/22		2,669,625
	4,100,000	QVC, Inc.(a)		4.850			04/01/24		4,209,183
	5,000,000	Rite Aid Corp.		8.000			08/15/20		5,550,000
	2,100,000	Sally Holdings LLC		5.750			06/01/22		2,241,750
									34,926,603
		Semiconductors—1.7%
	95,000	Advanced Micro Devices, Inc.		8.125			12/15/17		99,750
	1,000,000	Advanced Micro Devices, Inc.(a)		6.750			03/01/19		1,040,000
	1,700,000	Advanced Micro Devices, Inc.		7.750			08/01/20		1,814,750
	2,495,000	Amkor Technology, Inc.		6.625			06/01/21		2,694,600
	4,900,000	Micron Technology, Inc.(a)		5.875			02/15/22		5,181,750
									10,830,850
		Telecommunications—5.7%
	3,600,000	CenturyLink, Inc., Series S		6.450			06/15/21		3,897,000
	2,300,000	Cincinnati Bell, Inc.		8.375			10/15/20		2,541,500
	3,065,000	Embarq Corp.		7.082			06/01/16		3,414,533
	2,230,000	Frontier Communications Corp.		8.250			04/15/17		2,606,312
	2,200,000	Frontier Communications Corp.		8.500			04/15/20		2,572,625
	1,300,000	GCI, Inc.		8.625			11/15/19		1,395,875
	2,000,000	Hughes Satellite Systems Corp.		6.500			06/15/19		2,210,000
	1,700,000	SBA Telecommunications, Inc.		5.750			07/15/20		1,793,500
	3,200,000	T-Mobile USA, Inc. (Germany)		6.731			04/28/22		3,464,000

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

30

PowerShares Fundamental High Yield^® Corporate Bond Portfolio (PHB) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Corporate Bonds (continued)
		Telecommunications (continued)
$	1,935,000	tw Telecom Holdings, Inc.		5.375	%		10/01/22	$	1,971,281
	1,200,000	ViaSat, Inc.		6.875			06/15/20		1,291,500
	4,000,000	Virgin Media Secured Finance PLC (United Kingdom)		5.250			01/15/21		4,130,000
	5,200,000	Windstream Corp.		7.750			10/15/20		5,642,000
									36,930,126
		Transportation—0.5%
	1,578,000	Bristow Group, Inc.		6.250			10/15/22		1,698,323
	1,300,000	Gulfmark Offshore, Inc.		6.375			03/15/22		1,355,250
									3,053,573
		Total Corporate Bonds (Cost $623,117,366)							642,022,243
Number of Shares
		Money Market Fund—0.2%
	1,315,533	Invesco Premier Portfolio—Institutional Class(b) (Cost $1,315,533)							1,315,533
		Total Investments (Cost $624,432,899)—98.6%							643,337,776
		Other assets less liabilities—1.4%							9,292,530
		Net Assets—100.0%						$	652,630,306

Investment Abbreviations:

MTN—Medium-Term Notes

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a) Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at April 30, 2014 was $62,960,324, which represented 9.65% of the Fund’s Net Assets.

^(b) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

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

31

Portfolio Composition

PowerShares Fundamental Investment Grade Corporate Bond Portfolio (PFIG)

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Banks	10.0
Insurance	7.4
Retail	6.8
Pharmaceuticals	6.6
Oil & Gas	6.0
Electric	5.4
Diversified Financial Services	4.1
Media	3.7
Telecommunications	3.6
Food	3.4
REITs	3.2
Healthcare-Products	2.9
Semiconductors	2.7
Aerospace/Defense	2.3
Software	2.2
Healthcare-Services	2.1
Transportation	2.0
Agriculture	2.0
Computers	1.9
Chemicals	1.8
Miscellaneous Manufacturing	1.6
Oil & Gas Services	1.3

Internet	1.3
Beverages	1.3
Pipelines	1.1
Electronics	1.0
Biotechnology	1.0
Cosmetics/Personal Care	1.0
Machinery-Diversified	0.9
Household Products/Wares	0.9
Office/Business Equipment	0.9
Iron/Steel	0.8
Environmental Control	0.8
Mining	0.7
Apparel	0.5
Forest Products & Paper	0.5
Electrical Components & Equipment	0.4
Gas	0.4
Auto Parts & Equipment	0.4
Machinery-Construction & Mining	0.4
Lodging	0.4
Leisure Time	0.4
Commercial Services	0.2
Engineering & Construction	0.2
Advertising	0.2
Money Market Fund Plus Other Assets Less Liabilities	1.3

Schedule of Investments

PowerShares Fundamental Investment Grade Corporate Bond Portfolio (PFIG)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Corporate Bonds—98.7%
		Advertising—0.2%
$	50,000	Omnicom Group, Inc.		3.625	%		05/01/22	$	50,284
		Aerospace/Defense—2.3%
	50,000	Boeing Co. (The)		3.500			02/15/15		51,237
	50,000	Boeing Co. (The)		4.875			02/15/20		56,477
	100,000	General Dynamics Corp.		2.250			11/15/22		93,941
	50,000	Lockheed Martin Corp.		2.125			09/15/16		51,400
	100,000	Lockheed Martin Corp.		4.250			11/15/19		110,255
	50,000	Northrop Grumman Corp.		3.250			08/01/23		48,931
	200,000	United Technologies Corp.		3.100			06/01/22		202,386
									614,627

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

32

PowerShares Fundamental Investment Grade Corporate Bond Portfolio (PFIG) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Corporate Bonds (continued)
		Agriculture—2.0%
$	100,000	Altria Group, Inc.		9.700	%		11/10/18	$	132,132
	100,000	Altria Group, Inc.		2.850			08/09/22		95,350
	100,000	Archer-Daniels-Midland Co.		4.479			03/01/21		109,883
	50,000	Lorillard Tobacco Co.		3.500			08/04/16		52,744
	75,000	Philip Morris International, Inc.		5.650			05/16/18		86,191
	50,000	Reynolds American, Inc.		3.250			11/01/22		47,800
									524,100
		Apparel—0.5%
	150,000	NIKE, Inc.		2.250			05/01/23		140,146
		Auto Parts & Equipment—0.4%
	100,000	Johnson Controls, Inc.		5.500			01/15/16		107,729
		Banks—10.0%
	150,000	Bank of America Corp., MTN		6.875			04/25/18		176,872
	200,000	Bank of America Corp., MTN		3.300			01/11/23		194,494
	150,000	Bank of New York Mellon Corp. (The)		3.550			09/23/21		156,948
	150,000	BB&T Corp.		5.250			11/01/19		170,000
	50,000	Capital One Financial Corp.		4.750			07/15/21		55,272
	250,000	Citigroup, Inc.		6.125			11/21/17		285,958
	100,000	Citigroup, Inc.		8.500			05/22/19		127,543
	50,000	Discover Bank		4.200			08/08/23		52,051
	50,000	Fifth Third Bancorp		3.625			01/25/16		52,381
	100,000	Goldman Sachs Group, Inc. (The)		6.150			04/01/18		114,680
	50,000	Goldman Sachs Group, Inc. (The)		5.750			01/24/22		57,140
	150,000	Huntington National Bank (The)		1.300			11/20/16		150,850
	150,000	JPMorgan Chase & Co.		6.000			01/15/18		172,093
	100,000	JPMorgan Chase & Co.		4.500			01/24/22		108,379
	50,000	KeyCorp, MTN		5.100			03/24/21		56,611
	100,000	Morgan Stanley, MTN		5.625			09/23/19		114,154
	100,000	PNC Funding Corp.		2.700			09/19/16		103,992
	50,000	State Street Corp.		3.100			05/15/23		48,040
	100,000	SunTrust Banks, Inc.		3.600			04/15/16		105,107
	100,000	US Bancorp, MTN		2.950			07/15/22		96,993
	100,000	Wells Fargo & Co.		5.625			12/11/17		114,256
	150,000	Wells Fargo & Co., MTN		3.500			03/08/22		154,221
									2,668,035
		Beverages—1.3%
	100,000	Coca-Cola Co. (The)		5.350			11/15/17		114,260
	100,000	Coca-Cola Co. (The)		3.300			09/01/21		103,403
	100,000	PepsiCo, Inc.		7.900			11/01/18		125,427
									343,090
		Biotechnology—1.0%
	200,000	Amgen, Inc.		3.875			11/15/21		210,932
	50,000	Gilead Sciences, Inc.		4.400			12/01/21		54,665
									265,597
		Chemicals—1.8%
	100,000	Dow Chemical Co. (The)		2.500			02/15/16		102,926
	100,000	E.I. du Pont de Nemours & Co.		6.000			07/15/18		117,043
	50,000	Eastman Chemical Co.		2.400			06/01/17		51,151
	100,000	Ecolab, Inc.		3.000			12/08/16		105,200
	100,000	Praxair, Inc.		4.500			08/15/19		111,053
									487,373
		Commercial Services—0.2%
	50,000	Block Financial LLC		5.500			11/01/22		53,976

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

33

PowerShares Fundamental Investment Grade Corporate Bond Portfolio (PFIG) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Corporate Bonds (continued)
		Computers—1.9%
$	150,000	Apple, Inc.		2.400	%		05/03/23	$	140,430
	100,000	Computer Sciences Corp.		6.500			03/15/18		115,486
	100,000	EMC Corp.		2.650			06/01/20		100,920
	100,000	Hewlett-Packard Co.		2.600			09/15/17		103,430
	50,000	International Business Machines Corp.		5.700			09/14/17		57,244
									517,510
		Cosmetics/Personal Care—1.0%
	50,000	Avon Products, Inc.		5.000			03/15/23		50,450
	100,000	Procter & Gamble Co. (The)		4.700			02/15/19		112,847
	100,000	Procter & Gamble Co. (The)		3.100			08/15/23		99,576
									262,873
		Diversified Financial Services—4.1%
	100,000	American Express Co.		7.000			03/19/18		119,257
	50,000	Ameriprise Financial, Inc.		5.300			03/15/20		57,204
	100,000	BlackRock, Inc., Series 2		5.000			12/10/19		113,564
	50,000	Charles Schwab Corp. (The)		4.450			07/22/20		55,257
	150,000	General Electric Capital Corp., MTN		4.650			10/17/21		166,277
	150,000	General Electric Capital Corp., Series G, MTN		5.625			05/01/18		172,078
	150,000	Jefferies Group LLC		5.125			04/13/18		164,322
	200,000	Jefferies Group LLC		6.875			04/15/21		233,364
									1,081,323
		Electric—5.4%
	100,000	Consolidated Edison Co. of New York, Inc.		7.125			12/01/18		121,768
	100,000	Consumers Energy Co.		6.700			09/15/19		122,151
	50,000	Duke Energy Progress, Inc.		5.300			01/15/19		57,030
	100,000	Entergy Texas, Inc.		7.125			02/01/19		121,012
	100,000	Exelon Corp.		4.900			06/15/15		104,442
	100,000	Georgia Power Co.		4.250			12/01/19		109,399
	100,000	NextEra Energy Capital Holdings, Inc.		7.875			12/15/15		111,056
	50,000	NiSource Finance Corp.		6.400			03/15/18		57,660
	30,000	Ohio Power Co., Series M		5.375			10/01/21		34,866
	100,000	Pacific Gas & Electric Co.		3.500			10/01/20		104,342
	100,000	PPL Energy Supply LLC		4.600			12/15/21		102,038
	100,000	Southern California Edison Co.		3.875			06/01/21		107,232
	100,000	Virginia Electric and Power Co.		5.400			04/30/18		113,764
	150,000	Xcel Energy, Inc.		4.700			05/15/20		166,234
									1,432,994
		Electrical Components & Equipment—0.4%
	100,000	Emerson Electric Co.		4.875			10/15/19		113,348
		Electronics—1.0%
	100,000	Agilent Technologies, Inc.		6.500			11/01/17		114,806
	50,000	Honeywell International, Inc.		5.000			02/15/19		56,665
	100,000	Thermo Fisher Scientific, Inc.		4.500			03/01/21		108,720
									280,191
		Engineering & Construction—0.2%
	50,000	Fluor Corp.		3.375			09/15/21		50,691
		Environmental Control—0.8%
	100,000	Republic Services, Inc.		3.800			05/15/18		106,670
	100,000	Waste Management, Inc.		4.750			06/30/20		110,914
									217,584
		Food—3.4%
	100,000	Campbell Soup Co.		4.250			04/15/21		106,058
	100,000	ConAgra Foods, Inc.		3.200			01/25/23		96,641

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

34

PowerShares Fundamental Investment Grade Corporate Bond Portfolio (PFIG) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Corporate Bonds (continued)
		Food (continued)
$	100,000	Kellogg Co.		4.000	%		12/15/20	$	105,489
	100,000	Kroger Co. (The)		6.150			01/15/20		117,483
	300,000	Mondelez International, Inc.		4.125			02/09/16		317,715
	150,000	Safeway, Inc.		3.950			08/15/20		152,450
									895,836
		Forest Products & Paper—0.5%
	100,000	International Paper Co.		7.950			06/15/18		122,897
		Gas—0.4%
	100,000	Sempra Energy		6.500			06/01/16		110,938
		Healthcare-Products—2.9%
	100,000	Baxter International, Inc.		1.850			06/15/18		99,741
	100,000	Becton Dickinson and Co.		1.750			11/08/16		102,246
	100,000	Covidien International Finance SA		6.000			10/15/17		114,871
	100,000	Medtronic, Inc.		4.450			03/15/20		110,765
	150,000	St. Jude Medical, Inc.		3.250			04/15/23		147,108
	190,000	Zimmer Holdings, Inc.		4.625			11/30/19		211,121
									785,852
		Healthcare-Services—2.1%
	100,000	Cigna Corp.		2.750			11/15/16		104,426
	200,000	Humana, Inc.		3.150			12/01/22		194,812
	150,000	UnitedHealth Group, Inc.		2.875			03/15/22		146,911
	100,000	WellPoint, Inc.		5.250			01/15/16		107,432
									553,581
		Household Products/Wares—0.9%
	200,000	Kimberly-Clark Corp.		6.125			08/01/17		231,205
		Insurance—7.4%
	100,000	Aflac, Inc.		8.500			05/15/19		129,467
	200,000	Allstate Corp. (The)		3.150			06/15/23		199,325
	150,000	American International Group, Inc.		8.250			08/15/18		187,751
	200,000	Berkshire Hathaway Finance Corp.		5.400			05/15/18		228,642
	100,000	Chubb Corp. (The)		5.750			05/15/18		115,046
	200,000	Hartford Financial Services Group, Inc.		5.125			04/15/22		224,983
	150,000	Lincoln National Corp.		8.750			07/01/19		195,113
	150,000	Loews Corp.		2.625			05/15/23		140,662
	200,000	Marsh & McLennan Cos., Inc.		4.800			07/15/21		219,618
	100,000	MetLife, Inc.		6.750			06/01/16		111,997
	100,000	Prudential Financial, Inc., Series B, MTN		5.100			09/20/14		101,793
	100,000	Travelers Cos., Inc. (The)		3.900			11/01/20		106,941
									1,961,338
		Internet—1.3%
	100,000	eBay, Inc.		2.600			07/15/22		95,893
	100,000	Google, Inc.		3.625			05/19/21		106,403
	150,000	Symantec Corp.		4.200			09/15/20		155,195
									357,491
		Iron/Steel—0.8%
	100,000	Allegheny Technologies, Inc.		5.950			01/15/21		109,061
	100,000	Nucor Corp.		5.750			12/01/17		113,055
									222,116
		Leisure Time—0.4%
	100,000	Carnival Corp.		1.875			12/15/17		100,440
		Lodging—0.4%
	100,000	Marriott International, Inc.		3.000			03/01/19		102,646

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

35

PowerShares Fundamental Investment Grade Corporate Bond Portfolio (PFIG) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Corporate Bonds (continued)
		Machinery-Construction & Mining—0.4%
$	100,000	Caterpillar, Inc.		3.900	%		05/27/21	$	107,382
		Machinery-Diversified—0.9%
	150,000	Cummins, Inc.		3.650			10/01/23		154,327
	100,000	Deere & Co.		2.600			06/08/22		97,125
									251,452
		Media—3.7%
	100,000	21st Century Fox America, Inc.		5.300			12/15/14		102,992
	100,000	CBS Corp.		8.875			05/15/19		129,090
	100,000	DIRECTV Holdings LLC		3.500			03/01/16		104,607
	100,000	NBCUniversal Media LLC		5.150			04/30/20		114,316
	100,000	Time Warner Cable, Inc.		8.250			04/01/19		126,781
	100,000	Viacom, Inc.		6.250			04/30/16		110,731
	200,000	Viacom, Inc.		4.250			09/01/23		208,838
	100,000	Walt Disney Co. (The), MTN		2.350			12/01/22		94,299
									991,654
		Mining—0.7%
	100,000	Freeport-McMoRan Copper & Gold, Inc.		3.550			03/01/22		96,850
	100,000	Newmont Mining Corp.		3.500			03/15/22		94,243
									191,093
		Miscellaneous Manufacturing—1.6%
	200,000	3M Co., MTN		2.000			06/26/22		188,103
	100,000	Illinois Tool Works, Inc.		6.250			04/01/19		118,704
	100,000	Ingersoll-Rand Global Holding Co. Ltd.		6.875			08/15/18		118,867
									425,674
		Office/Business Equipment—0.9%
	100,000	Pitney Bowes, Inc., MTN		5.750			09/15/17		112,550
	100,000	Xerox Corp.		6.350			05/15/18		116,518
									229,068
		Oil & Gas—6.0%
	100,000	Anadarko Petroleum Corp.		5.950			09/15/16		111,513
	200,000	Apache Corp.		3.250			04/15/22		204,207
	200,000	Chevron Corp.		2.355			12/05/22		189,530
	100,000	ConocoPhillips		5.750			02/01/19		116,843
	150,000	ConocoPhillips Co.		2.400			12/15/22		142,414
	150,000	DeVon Energy Corp.		3.250			05/15/22		149,131
	100,000	Hess Corp.		8.125			02/15/19		126,075
	100,000	Marathon Oil Corp.		5.900			03/15/18		114,959
	200,000	Marathon Petroleum Corp.		5.125			03/01/21		224,557
	100,000	Occidental Petroleum Corp., Series 1		4.100			02/01/21		108,939
	100,000	Valero Energy Corp.		6.125			06/15/17		114,404
									1,602,572
		Oil & Gas Services—1.3%
	150,000	FMC Technologies, Inc.		3.450			10/01/22		144,439
	100,000	Halliburton Co.		6.150			09/15/19		119,057
	100,000	National Oilwell Varco, Inc.		2.600			12/01/22		95,730
									359,226
		Pharmaceuticals—6.6%
	150,000	Abbott Laboratories		5.125			04/01/19		170,252
	200,000	AbbVie, Inc.		2.900			11/06/22		195,233
	150,000	Allergan, Inc.		5.750			04/01/16		162,689
	100,000	AmerisourceBergen Corp.		3.500			11/15/21		103,895
	100,000	Bristol-Myers Squibb Co.		2.000			08/01/22		91,691
	100,000	Cardinal Health, Inc.		4.000			06/15/15		103,483

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

36

PowerShares Fundamental Investment Grade Corporate Bond Portfolio (PFIG) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Corporate Bonds (continued)
		Pharmaceuticals (continued)
$	100,000	Eli Lilly & Co.		5.200	%		03/15/17	$	111,580
	150,000	Express Scripts Holding Co.		3.125			05/15/16		157,270
	150,000	Johnson & Johnson		2.950			09/01/20		156,733
	100,000	McKesson Corp.		3.250			03/01/16		104,342
	200,000	Merck Sharp & Dohme Corp.		4.000			06/30/15		208,739
	200,000	Pfizer, Inc.		5.350			03/15/15		208,206
									1,774,113
		Pipelines—1.1%
	100,000	Spectra Energy Capital LLC		6.200			04/15/18		114,398
	150,000	Williams Partners LP		5.250			03/15/20		166,855
									281,253
		REITs—3.2%
	150,000	Boston Properties LP		4.125			05/15/21		159,761
	150,000	ERP Operating LP		4.625			12/15/21		164,202
	100,000	HCP, Inc.		5.375			02/01/21		113,324
	150,000	Hospitality Properties Trust		5.000			08/15/22		157,957
	125,000	Ventas Realty LP		4.750			06/01/21		136,051
	100,000	Weyerhaeuser Co.		7.375			10/01/19		121,925
									853,220
		Retail—6.8%
	150,000	Dollar General Corp.		3.250			04/15/23		141,903
	150,000	Gap, Inc. (The)		5.950			04/12/21		170,942
	150,000	Home Depot, Inc. (The)		5.400			03/01/16		163,076
	150,000	Home Depot, Inc. (The)		4.400			04/01/21		167,237
	100,000	Kohl’s Corp.		6.250			12/15/17		115,722
	100,000	Lowe’s Cos., Inc.		5.400			10/15/16		110,847
	150,000	Macy’s Retail Holdings, Inc.		2.875			02/15/23		142,387
	100,000	McDonald’s Corp., MTN		5.350			03/01/18		113,427
	125,000	Target Corp.		6.000			01/15/18		144,721
	200,000	Walgreen Co.		3.100			09/15/22		194,625
	325,000	Wal-Mart Stores, Inc.		3.250			10/25/20		340,361
									1,805,248
		Semiconductors—2.7%
	100,000	Applied Materials, Inc.		4.300			06/15/21		108,783
	100,000	Intel Corp.		1.350			12/15/17		99,935
	200,000	Intel Corp.		3.300			10/01/21		206,335
	200,000	Maxim Integrated Products, Inc.		3.375			03/15/23		192,006
	100,000	Texas Instruments, Inc.		2.375			05/16/16		103,632
									710,691
		Software—2.2%
	200,000	Adobe Systems, Inc.		3.250			02/01/15		204,015
	100,000	CA, Inc.		5.375			12/01/19		112,507
	50,000	Fiserv, Inc.		3.125			06/15/16		52,114
	100,000	Microsoft Corp.		3.625			12/15/23		104,050
	100,000	Oracle Corp.		5.750			04/15/18		115,612
									588,298
		Telecommunications—3.6%
	100,000	AT&T, Inc.		5.500			02/01/18		113,490
	200,000	AT&T, Inc.		3.000			02/15/22		197,222
	100,000	Cisco Systems, Inc.		4.450			01/15/20		110,703
	100,000	Qwest Corp.		7.500			10/01/14		102,584
	200,000	Verizon Communications, Inc.		3.650			09/14/18		213,742
	200,000	Verizon Communications, Inc.		5.150			09/15/23		220,881
									958,622

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

37

PowerShares Fundamental Investment Grade Corporate Bond Portfolio (PFIG) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Corporate Bonds (continued)
		Transportation—2.0%
$	130,000	CSX Corp.		6.250	%		03/15/18	$	150,241
	100,000	FedEx Corp.		8.000			01/15/19		125,193
	250,000	United Parcel Service, Inc.		3.125			01/15/21		258,435
									533,869
		Total Corporate Bonds (Cost $26,111,284)							26,319,246
Number of Shares
		Money Market Fund—0.4%
	112,850	Invesco Premier Portfolio—Institutional Class(a) (Cost $112,850)							112,850
		Total Investments (Cost $26,224,134)—99.1%							26,432,096
		Other assets less liabilities—0.9%							226,484
		Net Assets—100.0%						$	26,658,580

Investment Abbreviations:

MTN—Medium-Term Notes

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

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

38

Portfolio Composition

PowerShares Global Short Term High Yield Bond Portfolio (PGHY)

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Sovereign	13.2
Banks	13.0
Diversified Financial Services	10.9
Iron/Steel	5.8
Telecommunications	4.5
Lodging	3.6
Oil & Gas	3.4
Electric	3.1
Food	3.1
Building Materials	3.1
Mining	3.0
Healthcare-Services	2.5
Home Builders	2.5
Media	2.5
Real Estate	2.3
Coal	2.1
Machinery-Diversified	2.0
Miscellaneous Manufacturing	1.4
Chemicals	1.3

Pipelines	1.2
Leisure Time	1.1
Municipal	1.0
Semiconductors	1.0
Beverages	0.8
Packaging & Containers	0.7
Transportation	0.7
Forest Products & Paper	0.7
Airlines	0.7
Computers	0.7
Auto Manufacturers	0.7
Metal Fabricate/Hardware	0.7
Investment Companies	0.6
Healthcare-Products	0.5
Commercial Services	0.5
Regional (state/province)	0.5
REITS	0.4
Savings & Loans	0.3
Retail	0.3
Apparel	0.3
Money Market Fund Plus Other Assets Less Liabilities	3.3

Schedule of Investments

PowerShares Global Short Term High Yield Bond Portfolio (PGHY)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Corporate Bonds—83.5%
		Argentina—1.0%
$	150,000	Argentina Boden Bonds		7.000	%		10/03/15	$	146,067
	150,000	City of Buenos Aires Argentina, MTN		12.500			04/06/15		155,100
									301,167
		Bahamas—1.6%
	450,000	Vedanta Resources PLC		6.750			06/07/16		473,063
		Bermuda—0.6%
	200,000	Renaissance Credit LLC Via Renaissance Consumer Funding Ltd.		7.750			05/31/16		177,000
		Brazil—3.1%
	150,000	Banco Daycoval SA, Series E, MTN		6.500			03/16/15		155,250
	100,000	Banco Industrial e Comercial SA		5.250			10/25/15		103,000
	200,000	Bertin SA		10.250			10/05/16		227,250
	200,000	CSN Islands IX Corp		10.000			01/15/15		213,000
	200,000	JBS SA		10.500			08/04/16		227,000
									925,500

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

39

PowerShares Global Short Term High Yield Bond Portfolio (PGHY) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Corporate Bonds (continued)
		Bulgaria—1.0%
$	300,000	Corporate Commercial Bank AD Via Northern Lights Bulgaria BV		8.250	%		08/08/14	$	299,993
		Canada—1.4%
	250,000	Bombardier, Inc.(a)		4.250			01/15/16		260,937
	150,000	Bombardier, Inc.		4.250			01/15/16		156,563
									417,500
		Cayman Islands—0.7%
	200,000	Hyva Global BV		8.625			03/24/16		202,750
		China—1.4%
	200,000	MCC Holding Hong Kong Corp. Ltd.		4.875			07/29/16		202,553
	200,000	West China Cement Ltd.		7.500			01/25/16		207,250
									409,803
		Egypt—0.5%
	150,000	Nile Finance Ltd.		5.250			08/05/15		154,665
		Finland—0.7%
	200,000	UPM-Kymmene OYJ, MTN		5.625			12/01/14		205,180
		France—1.1%
	100,000	Lafarge SA(b)		6.200			07/09/15		106,000
	200,000	Lafarge SA		6.500			07/15/16		221,000
									327,000
		Germany—1.1%
	100,000	Dresdner Bank AG		7.250			09/15/15		106,746
	150,000	Fresenius US Finance II, Inc.		9.000			07/15/15		164,250
	49,000	Hanson Ltd.		6.125			08/15/16		53,961
									324,957
		Greece—0.7%
	200,000	Finansbank AS		5.500			05/11/16		203,500
		Hong Kong—0.3%
	74,000	RKI Finance 2010 Ltd., Series E, MTN		9.500			09/21/15		77,830
		Indonesia—1.1%
	300,000	Bumi Capital Pte Ltd.		12.000			11/10/16		142,500
	200,000	Modernland Overseas Pte Ltd.		11.000			10/25/16		198,440
									340,940
		Israel—1.1%
	300,000	Israel Electric Corp. Ltd., MTN		6.700			02/10/17		328,125
		Italy—1.0%
	100,000	Telecom Italia Capital SA		6.175			06/18/14		100,737
	100,000	Telecom Italia Capital SA		4.950			09/30/14		101,750
	100,000	Telecom Italia Capital SA		5.250			10/01/15		105,500
									307,987
		Jersey Islands—0.5%
	150,000	Consolidated Minerals Ltd.		8.875			05/01/16		157,448
		Kazakhstan—1.0%
	100,000	Kazkommertsbank JSC, MTN		8.000			11/03/15		100,250
	200,000	Kazkommertsbank JSC, MTN		7.500			11/29/16		198,126
									298,376
		Luxembourg—2.4%
	150,000	ArcelorMittal(b)		9.500			02/15/15		159,375
	200,000	ArcelorMittal(b)		4.250			02/25/15		204,500
	150,000	ArcelorMittal(b)		4.250			08/05/15		154,687
	200,000	ArcelorMittal(b)		4.250			03/01/16		208,000
									726,562

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

40

PowerShares Global Short Term High Yield Bond Portfolio (PGHY) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Corporate Bonds (continued)
		Netherlands—1.0%
$	300,000	NXP BV		3.500	%		09/15/16	$	307,875
		Norway—0.8%
	100,000	Eksportfinans ASA		2.000			09/15/15		100,100
	150,000	Eksportfinans ASA		2.375			05/25/16		150,075
									250,175
		Philippines—1.4%
	200,000	BDO Unibank, Inc.		3.875			04/22/16		207,500
	200,000	BDO Unibank, Inc.		4.500			02/16/17		210,500
									418,000
		Portugal—0.5%
	150,000	BES Investimento do Brasil SA Banco de Investimento		5.625			03/25/15		154,200
		Russia—6.1%
	200,000	AK BARS Bank Via AK BARS Luxembourg SA, Series LPN, MTN		8.750			11/19/15		201,000
	150,000	Alfa MTN Issuance Ltd., Series E, MTN		8.000			03/18/15		153,086
	250,000	ALROSA Finance SA		8.875			11/17/14		256,250
	200,000	Bank of Moscow Via BOM Capital PL		6.699			03/11/15		202,610
	200,000	Koks OAO Via Koks Finance Ltd.		7.750			06/23/16		173,000
	200,000	Severstal OAO Via Steel Capital SA		6.250			07/26/16		204,500
	150,000	Vimpel Communications OJSC Via UBS Luxembourg SA		8.250			05/23/16		159,375
	450,000	Vimpel Communications Via VIP Finance Ireland Ltd. OJSC		6.493			02/02/16		460,125
									1,809,946
		Saudi Arabia—0.7%
	200,000	Dar Al-Arkan Sukuk Co. Ltd.		5.750			11/25/16		202,300
		Ukraine—2.3%
	200,000	City of Kiev Ukraine Via CS International		8.000			11/06/15		158,444
	200,000	Ferrexpo Finance PLC		7.875			04/07/16		182,000
	200,000	Metinvest BV		10.250			05/20/15		192,540
	150,000	National JSC Naftogaz of Ukraine		9.500			09/30/14		136,500
									669,484
		United Kingdom—6.3%
	300,000	Berau Capital Resources Pte Ltd.		12.500			07/08/15		312,750
	100,000	CNH America LLC		7.250			01/15/16		109,750
	150,000	CNH Industrial Capital LLC		3.875			11/01/15		154,500
	300,000	CNH Industrial Capital LLC		6.250			11/01/16		330,000
	200,000	Evraz Group SA		8.250			11/10/15		200,662
	350,000	Royal Bank of Scotland Group PLC		5.000			10/01/14		354,586
	400,000	Royal Bank of Scotland Group PLC		5.050			01/08/15		410,192
									1,872,440
		United States—41.0%
	200,000	21st Century Oncology, Inc.		8.875			01/15/17		208,000
	200,000	AES Corp.		7.750			10/15/15		218,250
	150,000	AES Corp.		9.750			04/15/16		173,625
	300,000	Ally Financial, Inc.		6.750			12/01/14		310,125
	100,000	Ally Financial, Inc.		8.300			02/12/15		105,625
	200,000	Ally Financial, Inc.		4.625			06/26/15		208,040
	200,000	Ally Financial, Inc.		3.500			07/18/16		207,050
	150,000	Ally Financial, Inc., Series 8		6.750			12/01/14		155,250
	150,000	American Seafoods Group LLC		10.750			05/15/16		155,070
	100,000	Amsouth Bank, Series AI		5.200			04/01/15		103,648
	200,000	Ashland, Inc.		3.000			03/15/16		205,000
	100,000	Best Buy Co., Inc.		3.750			03/15/16		103,500
	150,000	Caesars Entertainment Operating Co., Inc.		5.625			06/01/15		149,813
	100,000	Caesars Entertainment Operating Co., Inc.		10.750			02/01/16		89,500
	300,000	Caesars Entertainment Operating Co., Inc.		6.500			06/01/16		273,000

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

41

PowerShares Global Short Term High Yield Bond Portfolio (PGHY) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Corporate Bonds (continued)
		United States (continued)
$	156,000	Centex Corp.		5.250	%		06/15/15	$	164,190
	150,000	CenturyLink, Inc., Series M		5.000			02/15/15		155,062
	150,000	Ceridian Corp.(b)		11.250			11/15/15		152,250
	150,000	Chesapeake Energy Corp.		9.500			02/15/15		160,612
	150,000	Chesapeake Energy Corp.		3.250			03/15/16		152,062
	200,000	CIT Group, Inc.		4.750			02/15/15		205,625
	150,000	Clear Channel Communications, Inc.		5.500			09/15/14		152,250
	150,000	Clear Channel Communications, Inc.		4.900			05/15/15		156,375
	200,000	Constellation Brands, Inc.		7.250			09/01/16		225,500
	150,000	D.R. Horton, Inc.		6.500			04/15/16		164,250
	133,000	Dean Foods Co.		7.000			06/01/16		146,632
	100,000	Dell, Inc.		2.300			09/10/15		101,125
	100,000	Dell, Inc.		3.100			04/01/16		102,500
	150,000	DISH DBS Corp.		6.625			10/01/14		153,750
	100,000	DISH DBS Corp.		7.750			05/31/15		107,000
	150,000	DISH DBS Corp.		7.125			02/01/16		164,250
	200,000	DPL, Inc.		6.500			10/15/16		217,000
	100,000	E*TRADE Financial Corp.		6.750			06/01/16		108,625
	150,000	Embarq Corp.		7.082			06/01/16		167,106
	150,000	HCA, Inc.		6.375			01/15/15		155,250
	250,000	HCA, Inc.		6.500			02/15/16		271,875
	200,000	International Lease Finance Corp		6.500			09/01/14		204,500
	150,000	International Lease Finance Corp.		4.875			04/01/15		155,063
	150,000	International Lease Finance Corp.(b)		8.625			09/15/15		165,000
	300,000	International Lease Finance Corp.		5.750			05/15/16		323,625
	150,000	International Lease Finance Corp., MTN		5.650			06/01/14		150,600
	100,000	iStar Financial, Inc., Series 1 - REIT		5.875			03/15/16		107,500
	90,000	Kinder Morgan Finance Co. LLC		5.700			01/05/16		96,081
	150,000	Kinder Morgan, Inc.		5.150			03/01/15		154,883
	100,000	Lennar Corp., Series B		5.600			05/31/15		104,750
	200,000	Marquette Transportation Co. LLC		10.875			01/15/17		212,750
	100,000	Masco Corp.		4.800			06/15/15		104,250
	100,000	Masco Corp.		6.125			10/03/16		110,750
	150,000	MGM Resorts International		6.625			07/15/15		159,375
	150,000	MGM Resorts International		7.500			06/01/16		167,250
	200,000	MGM Resorts International		10.000			11/01/16		238,500
	150,000	Nationstar Mortgage LLC		10.875			04/01/15		151,125
	200,000	NII Capital Corp.		10.000			08/15/16		76,500
	100,000	Nine West Holdings, Inc.		5.125			11/15/14		102,800
	150,000	Nuveen Investments, Inc.		5.500			09/15/15		157,500
	200,000	Owens-Brockway Glass Container, Inc.		7.375			05/15/16		222,500
	150,000	Peabody Energy Corp.		7.375			11/01/16		169,125
	250,000	Quicksilver Resources, Inc.		7.125			04/01/16		232,500
	200,000	Realogy Group LLC (The)		3.375			05/01/16		203,250
	100,000	Rockies Express Pipeline LLC		3.900			04/15/15		101,875
	150,000	Royal Caribbean Cruises Ltd.		11.875			07/15/15		169,125
	150,000	Royal Caribbean Cruises Ltd.		7.250			06/15/16		167,250
	150,000	SLM Corp., MTN		3.875			09/10/15		155,250
	150,000	SLM Corp., MTN		6.250			01/25/16		162,375
	100,000	SLM Corp., Series A, MTN		5.375			05/15/14		100,146
	100,000	SLM Corp., Series A, MTN		5.000			04/15/15		103,500
	300,000	Springleaf Finance Corp., Series I, MTN		5.400			12/01/15		314,250
	150,000	SUPERVALU, Inc.		8.000			05/01/16		166,688
	300,000	Toll Brothers Finance Corp.		5.150			05/15/15		313,500
	200,000	Trade & Development Bank of Mongolia LLC, Series E, MTN		8.500			09/20/15		195,798
	200,000	United Airlines, Inc.		6.750			09/15/15		203,750
	100,000	Universal Health Services, Inc.		7.125			06/30/16		112,500

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

42

PowerShares Global Short Term High Yield Bond Portfolio (PGHY) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Corporate Bonds (continued)
		United States (continued)
$	100,000	USG Corp.		6.300	%		11/15/16	$	108,500
									12,193,469
		Venezuela—1.1%
	100,000	Petroleos de Venezuela SA, Series 2014		4.900			10/28/14		97,150
	150,000	Petroleos de Venezuela SA, Series 2015		5.000			10/28/15		135,562
	100,000	Petroleos de Venezuela SA, Series 2016		5.125			10/28/16		84,600
									317,312
		Total Corporate Bonds (Cost $24,868,336)							24,854,547
		Sovereign Debt Obligations—13.2%
		Argentina—0.5%
	150,000	Provincia de Buenos Aires		11.750			10/05/15		147,750
		Belarus—0.3%
	100,000	Republic of Belarus		8.750			08/03/15		100,918
		Ecuador—0.5%
	150,000	Ecuador Government International Bond		9.375			12/15/15		161,063
		Hungary—0.7%
	200,000	Hungary Government International Bond		4.750			02/03/15		203,880
		Jamaica—1.1%
	300,000	Jamaica Government International Bond		9.000			06/02/15		313,875
		Jordan—1.0%
	300,000	Jordan Government International Bond		3.875			11/12/15		301,500
		Lebanon—4.2%
	200,000	Lebanon Government International Bond		9.000			05/02/14		200,000
	200,000	Lebanon Government International Bond		5.875			01/15/15		204,452
	450,000	Lebanon Government International Bond		11.625			05/11/16		517,500
	300,000	Lebanon Government International Bond, MTN		8.500			01/19/16		323,250
									1,245,202
		Pakistan—0.1%
	28,000	Pakistan Government International Bond		7.125			03/31/16		28,700
		Portugal—0.3%
	100,000	Portugal Government International Bond, MTN		3.500			03/25/15		102,250
		Sri Lanka—0.3%
	100,000	Sri Lanka Government International Bond		7.400			01/22/15		103,875
		Turkey—1.1%
	300,000	Export Credit Bank of Turkey		5.375			11/04/16		316,500
		Ukraine—1.7%
	200,000	Ukraine Government International Bond		7.950			06/04/14		196,000
	150,000	Ukraine Government International Bond		6.875			09/23/15		135,750
	200,000	Ukraine Government International Bond		6.580			11/21/16		170,250
									502,000
		Venezuela—1.0%
	150,000	Venezuela Government International Bond		8.500			10/08/14		149,625
	150,000	Venezuela Government International Bond		5.750			02/26/16		136,500
									286,125
		Vietnam—0.4%
	100,000	Vietnam Government International Bond		6.875			01/15/16		108,000
		Total Sovereign Debt Obligations (Cost $3,914,804)							3,921,638

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

43

PowerShares Global Short Term High Yield Bond Portfolio (PGHY) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Money Market Fund—1.3%
	374,091	Invesco Premier Portfolio—Institutional Class(c) (Cost $374,091)	$	374,091
		Total Investments (Cost $29,157,231)—98.0%		29,150,276
		Other assets less liabilities—2.0%		602,896
		Net Assets—100.0%	$	29,753,172

Investment Abbreviations:

MTN—Medium-Term Notes

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at April 30, 2014 was $260,937, which represented 0.88% of the Fund’s Net Assets.

^(b)  Denotes step up bond. The rate indicated is the current coupon as of April 30, 2014.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

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

44

Portfolio Composition

PowerShares Insured California Municipal Bond Portfolio (PWZ)

Revenue Type Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Ad Valorem Property Tax	39.1
Lease Revenue	12.0
Electric Power Revenue	11.2
Sales Tax Revenue	7.1
Hospital Revenue	7.1
Water Revenue	5.0
Sewer Revenue	4.8
Miscellaneous Revenue	4.2
Special Assessment	3.2
General Fund	1.1
College Revenue	1.0
Other Assets Less Liabilities	4.2

Schedule of Investments

PowerShares Insured California Municipal Bond Portfolio (PWZ)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Municipal Bonds—95.8%
		Ad Valorem Property Tax—39.1%
$	1,350,000	Antelope Valley California Community College District (Election 2004) Ser. 07B NATL RE		5.250	%		08/01/39	$	1,468,719
	500,000	Arcadia California Unified School District (Election 2006) Ser. 07A AGM		5.000			08/01/37		517,280
	800,000	Centinela Valley California Union High School District (Election 2010) Ser. 12B AGM		5.000			08/01/50		831,136
	1,000,000	Colton California Joint Unified School District (Election 2008) Ser. 09-A AGC		5.375			08/01/34		1,085,490
	1,500,000	Corona-Norco California Unified School District (Election 2006) Ser. 09C AGM		5.500			08/01/39		1,671,240
	500,000	Desert California Community College District Ser. 07C AGM		5.000			08/01/37		532,855
	1,500,000	El Monte California Union High School District (Election of 2008) Ser. 09A AGC		5.500			06/01/34		1,670,715
	500,000	Los Angeles California Community College District (Election 2001) Ser. 07A NATL RE		5.000			08/01/32		550,440
	1,505,000	Los Angeles Unified School District (Election 2002) Ser. 07C AGM		5.000			07/01/32		1,666,727
	1,000,000	Peralta Community College District Ser. 06A NATL RE		5.000			08/01/31		1,063,520
	250,000	Puerto Rico Commonwealth Public Improvement Ref. Ser. 07A-4 AGM		5.250			07/01/30		244,918
	1,100,000	Puerto Rico Commonwealth Public Improvement Ref. Ser. 07A-4 AGM		5.000			07/01/31		1,044,021
	3,000,000	Puerto Rico Commonwealth Public Improvement Ref. Ser. 12A AGM		5.000			07/01/35		2,795,850
	500,000	Riverside Community College District (Election 2004) Ser. 07C NATL RE		5.000			08/01/32		550,940
	400,000	San Diego California Community College District (Election 2006) Ser. 07 AGM		5.000			08/01/32		442,752
	2,000,000	West Contra Costa California Unified School District Ref. Ser. 12 AGM		5.000			08/01/32		2,213,000
	1,740,000	Yosemite California Community College District (Election 2004) Ser. 08C AGM		5.000			08/01/32		1,905,787
									20,255,390
		College Revenue—1.0%
	500,000	California State University Rev. Systemwide Ser. 07A AGM		5.000			11/01/37		526,480
		Electric Power Revenue—11.2%
	2,000,000	Guam Power Auth. Rev. Ser. 10A AGM		5.000			10/01/37		2,091,260
	2,000,000	Guam Power Auth. Rev. Ser. 12A AGM		5.000			10/01/30		2,201,460
	400,000	Los Angeles California Water & Power Rev. (Power System) Sub-Ser. 07A-1 AMBAC		5.000			07/01/39		427,260
	1,000,000	Redding California Electric System Rev. COP Ser. 08A AGM		5.000			06/01/30		1,101,500
									5,821,480

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

45

PowerShares Insured California Municipal Bond Portfolio (PWZ) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Municipal Bonds (continued)
		General Fund—1.1%
$	550,000	California State Ref. Ser. 07 NATL RE		4.250	%		08/01/33	$	555,638
		Hospital Revenue—7.1%
	500,000	California Statewide Communities Development Auth. Rev. (Adventist Remarketed 05/23/08) Ser. 07B AGC		5.000			03/01/37		512,685
	1,000,000	California Statewide Communities Development Auth. Rev. (Catholic Healthcare West) Ser. 07K AGC		5.500			07/01/41		1,080,960
	1,000,000	California Statewide Communities Development Auth. Rev. (St. Joseph Health System-Remarketed) Insured Ser. 07C FGIC		5.750			07/01/47		1,101,300
	945,000	University of California Regents Medical Center Pooled Rev. Ser. 07A NATL RE		4.750			05/15/31		964,297
									3,659,242
		Lease Revenue—12.0%
	1,500,000	Kern County California COP (Capital Improvements Projects) Ser. 09A AGC		5.750			08/01/35		1,647,480
	15,000	Los Angeles California Municipal Improvement Corp. Lease Rev. (Prerefunded Figueroa Plaza) Ser. 07B1 NATL RE		4.750			08/01/37		15,167
	1,000,000	Los Angeles California Municipal Improvement Corp. Lease Rev. (Real Property) Ser. 09B AGC		5.500			04/01/39		1,100,760
	485,000	Los Angeles California Municipal Improvement Corp. Lease Rev. (Unrefunded Figueroa Plaza) Ser. 07B1 NATL RE		4.750			08/01/37		487,250
	400,000	Los Angeles California Municipal Improvement Corp. Lease Rev. Police Headquarters Facility Ser. 06A NATL RE		4.250			01/01/37		383,668
	1,000,000	Richmond Joint Powers Financing Auth. Lease Rev. (Civic Center Project) Ser. 09 AGC		5.750			08/01/29		1,138,070
	400,000	Santa Clara Valley California Water District (COP Water Utility System Improvement) Ser. 07A NATL RE		5.000			06/01/37		440,484
	1,000,000	Yuba California Levee Financing Auth. Rev. (Levee Financing Project) Ser. 08A AGC		5.000			09/01/38		1,019,530
									6,232,409
		Miscellaneous Revenue—4.2%
	2,000,000	Pittsburg Unified School District Financing Auth. Rev. (District Bond Program) Ser. 11 AGM		5.500			09/01/46		2,198,000
		Sales Tax Revenue—7.1%
	1,500,000	Los Angeles County California Metropolitan Transportation Auth. Sales Tax Rev. (Proposition A First Tier Senior) Ser. 05-A AMBAC		5.000			07/01/35		1,564,845
	400,000	Puerto Rico Commonwealth Highway & Transportation Auth. Rev. Ref. Ser. 07N FGIC		5.250			07/01/39		236,328
	1,500,000	Puerto Rico Sales Tax Financing Corp. Sales Tax Rev. (First Subordinate Ser.) 10C AGM		5.125			08/01/42		1,379,490
	500,000	San Mateo County California Transit District (Sales Tax) Rev. Ref. Ser. 05A NATL RE		4.750			06/01/34		512,090
									3,692,753
		Sewer Revenue—4.8%
	400,000	Bakersfield California Wastewater Rev. Ser. 07A AGM		5.000			09/15/32		426,440
	400,000	Clovis California Public Financing Auth. Wastewater Rev. Ser. 07 AMBAC		4.500			08/01/38		389,604
	650,000	Fresno California Sewer Rev. Ser. 08A AGC		5.000			09/01/37		684,762
	460,000	Hollister California Joint Powers Financing Auth. (Wastewater Rev. Refinancing & Improvement Project) Ser. 01 AGM		5.000			06/01/32		471,624
	30,000	Los Angeles California Wastewater System Rev. (Prerefunded 2013) Ser. 05A NATL RE		4.750			06/01/35		31,478
	360,000	Los Angeles California Wastewater System Rev. (Prerefunded) Ser. 05A NATL RE		4.750			06/01/35		377,733
	110,000	Los Angeles California Wastewater System Rev. (Unrefunded 2013) Ser. 05A NATL RE		4.750			06/01/35		112,284
									2,493,925
		Special Assessment—3.2%
	1,500,000	Sacramento California Area Flood Control Agency Consolidated Capital Assessment District Ser. 08 BHAC		5.625			10/01/37		1,654,800
		Water Revenue—5.0%
	1,000,000	East Bay California Municipal Utility District Water System Rev. Ref. Ser. 07A NATL RE		5.000			06/01/32		1,104,380
	500,000	East Bay California Municipal Utility District Water System Rev. Subordinated Ser. 05A NATL RE		5.000			06/01/35		518,320
	500,000	Puerto Rico Commonwealth Aqueduct & Sewer Auth. Rev. (Senior Lien) Ser. 08A AGC		5.125			07/01/47		455,970
	500,000	San Francisco City & County Public Utilities Commission Water Rev. Ser. 06A AGM		4.500			11/01/31		526,460
									2,605,130
		Total Investments (Cost $47,951,359)(a)—95.8%							49,695,247
		Other assets less liabilities—4.2%							2,180,216
		Net Assets—100.0%						$	51,875,463

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

46

PowerShares Insured California Municipal Bond Portfolio (PWZ) (continued)

April 30, 2014

(Unaudited)

Investment Abbreviations:

AGC—Assured Guaranty Corp.

AGM—Assured Guaranty Municipal Corp.

AMBAC—American Municipal Bond Assurance Corp.

Auth.—Authority

BHAC—Berkshire Hathaway Assurance Corp.

COP—Certificate of Participation

FGIC—Financial Guaranty Insurance Co.

NATL RE—National Public Finance Guarantee Corp.

Ref.—Refunding Bonds

Rev.—Revenue

Ser.—Series

Notes to Schedule of Investments:

^(a)  This table, as of April 30, 2014, provides a listing of those entities that have either guaranteed, backed or otherwise enhanced the credit quality of more than 5% of the value of securities held in the portfolio. In instances where the entity has guaranteed, backed or otherwise enhanced the credit quality of a security, it is not primarily responsible for the borrower’s obligations but may be called upon to satisfy the borrower’s obligations.

Entities	Percentage of Total Investments
Assured Guaranty Municipal Corp.	49.9%
Assured Guaranty Corp.	20.9
National Public Finance Guarantee Corp.	18.4

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

47

Portfolio Composition

PowerShares Insured National Municipal Bond Portfolio (PZA)

State and Territory Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Alabama	5.9
California	17.3
Florida	8.4
Georgia	3.9
Illinois	5.8
Michigan	3.1
New Jersey	4.9
Pennsylvania	8.6
Puerto Rico	6.9
Texas	6.5
Other States Less Than 3% Each	25.3
Other Assets Less Liabilities	3.4

Schedule of Investments

PowerShares Insured National Municipal Bond Portfolio (PZA)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Municipal Bonds—92.2%
		Ad Valorem Property Tax—12.3%
$	1,500,000	Beaumont Texas Independent School District School Building Ser. 09 AGC		5.000	%		02/15/38	$	1,569,525
	3,000,000	Beaver County Pennsylvania Ser. 09 AGM		5.550			11/15/31		3,276,330
	3,000,000	California State Ser. 05 NATL RE		4.750			03/01/35		3,068,700
	600,000	Centinela Valley California Union High School District (Election 2010) Ser. 12B AGM		5.000			08/01/50		623,352
	5,000,000	Corona-Norca California Unified School District (Election 2006) Ser. 09B AGC		5.375			02/01/34		5,591,650
	500,000	Corona-Norco California Unified School District (Election 2006) Ser. 09C AGM		5.500			08/01/39		557,080
	1,500,000	District of Columbia Ser. 08E BHAC		5.000			06/01/33		1,659,015
	1,000,000	El Monte California Union High School District (Election of 2008) Ser. 09A AGC		5.500			06/01/34		1,113,810
	2,000,000	Lackawanna County Pennsylvania Ser. 10B AGM		5.000			09/01/35		2,024,720
	2,500,000	Los Angeles Unified School District (Election 2002) Ser. 07C AGM		5.000			07/01/32		2,768,650
	500,000	Los Angeles Unified School District (Election 2004) Ser. 06G AMBAC		5.000			07/01/31		541,085
	2,500,000	Philadelphia Pennsylvania Ser. 09B AGC		7.125			07/15/38		2,866,950
	2,600,000	Puerto Rico Commonwealth Public Improvement Ref. Ser. 07A-4 AGM		5.250			07/01/30		2,547,142
	500,000	Puerto Rico Commonwealth Public Improvement Ref. Ser. 07A-4 AGM		5.000			07/01/31		474,555
	35,500,000	Puerto Rico Commonwealth Public Improvement Ref. Ser. 12A AGM		5.000			07/01/35		33,084,225
	890,000	Reading Pennsylvania School District (State Aid Withholding) Ser. 08 AGM		5.000			03/01/35		924,238
	2,000,000	Riverside Community College District (Election 2004) Ser. 07C NATL RE		5.000			08/01/32		2,203,760
	2,500,000	San Jacinto Unified School District (Election 2006) Ser. 07 AGM		5.250			08/01/32		2,640,575
	2,000,000	State Center California Community College District Election 2002 Ser. 07A AGM		5.000			08/01/31		2,150,680
	2,500,000	Victor Valley California Union High School District (Election 2008) Ser. 09A AGC		5.000			08/01/34		2,574,050
	2,535,000	Yosemite California Community College District (Election 2004) Ser. 08C AGM		5.000			08/01/32		2,776,535
									75,036,627
		Auto Parking Revenue—0.8%
	2,000,000	Miami Florida Special Obligation (Marlins Stadium Project) Ser. 10A AGM		5.250			07/01/35		2,117,200
	2,500,000	Miami Florida Special Obligation (Marlins Stadium Project) Ser. 10A AGM		5.250			07/01/39		2,609,250
									4,726,450

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

48

PowerShares Insured National Municipal Bond Portfolio (PZA) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Municipal Bonds (continued)
		College Revenue—3.2%
$	4,510,000	California State University Rev. Systemwide Ser. 08A AGM		5.000	%		11/01/39	$	4,816,951
	3,000,000	District of Columbia Rev. (Catholic University of America) Ser. 07 NATL RE		5.000			10/01/29		3,187,170
	4,245,000	Georgia State Higher Education Facilities Auth. Rev. (USG Real Estate III) Ser. 10A AGC		5.000			06/15/38		4,409,961
	1,000,000	Lafayette Louisiana Public Trust Financing Auth. Rev. Ragin’ Cajun Facilities (Housing & Parking Project) Ser. 10 AGM		5.500			10/01/41		1,081,050
	1,250,000	Massachusetts State Health & Educational Facilities Auth. Rev. (Massachusetts Institute of Technology) Ser. 09O		6.000			07/01/36		1,482,987
	250,000	New York State Dormitory Auth. Rev. Non-Special Treatment Supported Debt (Fordham University) Ser. 08B AGC		5.000			07/01/38		264,077
	4,335,000	University of California Rev. Ser. 07J AGM		4.500			05/15/35		4,420,790
									19,662,986
		Electric Power Revenue—3.5%
	1,150,000	Guam Power Auth. Rev. Ser. 10A AGM		5.000			10/01/37		1,202,474
	9,835,000	Guam Power Auth. Rev. Ser. 12A AGM		5.000			10/01/30		10,825,680
	900,000	Kentucky State Municipal Power Agency System Rev. (Prairie State Project) Ser. 07A NATL RE		5.000			09/01/37		921,492
	500,000	Long Island Power Auth. New York Electric Systems Rev. General Ser. 08A BHAC		5.500			05/01/33		574,750
	4,200,000	Long Island Power Auth. New York Electric Systems Rev. General Ser. 11A AGM		5.000			05/01/36		4,472,286
	2,050,000	Municipal Energy Agency of Nebraska Ref. Ser. 09A BHAC		5.375			04/01/39		2,247,948
	1,000,000	Redding California Electric System Rev. COP Ser. 08A AGM		5.000			06/01/30		1,101,500
									21,346,130
		General Fund—0.1%
	500,000	California State Ref. Ser. 07 NATL RE		4.250			08/01/33		505,125
		Highway Tolls Revenue—9.2%
	7,500,000	Delaware River Port Auth. Pennsylvania & New Jersey Rev. Ser. 10D AGM		5.000			01/01/40		8,016,750
	4,250,000	North Carolina Turnpike Auth. Triangle Expressway System Rev. Ser. 09A AGC		5.500			01/01/29		4,700,500
	4,000,000	North Carolina Turnpike Auth. Triangle Expressway System Rev. Ser. 09A AGC		5.750			01/01/39		4,365,400
	16,000,000	North Texas Tollway Auth. Rev. Ref. System (First Tier) Ser. 08K-1 AGC		5.750			01/01/38		17,447,200
	8,000,000	Pennsylvania State Turnpike Commission Rev. Subordinate Ser. 08C AGC		6.250			06/01/38		8,927,680
	3,000,000	Pennsylvania State Turnpike Commission Rev. Subordinate Ser. 11A		6.500			12/01/36		3,501,240
	8,800,000	Pennsylvania State Turnpike Commission Rev. Subordinate Ser. 12B AGM		5.000			12/01/42		9,289,192
	250,000	Puerto Rico Highway & Transportation Auth. Rev. Ref. Ser. 07CC AGM		5.250			07/01/32		234,402
									56,482,364
		Hospital Revenue—15.2%
	650,000	Birmingham Alabama Special Care Facilities Financing Auth. Health Care Facilities Rev. (Children’s Hospital) Ser. 09 AGC		6.000			06/01/34		734,896
	2,500,000	Birmingham Alabama Special Care Facilities Financing Auth. Health Care Facilities Rev. (Children’s Hospital) Ser. 09 AGC		6.000			06/01/39		2,811,575
	500,000	California Health Facilities Financing Auth. Rev. (Childrens Hospital Los Angeles) Ser. 10A AGM		5.250			07/01/38		519,665
	750,000	California Statewide Communities Development Auth. Rev. (Adventist Remarketed 05/23/08) Ser. 07B AGC		5.000			03/01/37		769,027
	1,000,000	California Statewide Communities Development Auth. Rev. (Catholic Healthcare West) Ser. 07K AGC		5.500			07/01/41		1,080,960
	5,000,000	Christian County Kentucky Hospital Rev. (Hospital-Jennie Stuart Medical Center) Ser. 06 AGC		5.500			02/01/36		5,190,850
	2,500,000	Cobb County Georgia Kennestone Hospital Auth. Rev. Certificates Sub-Ser. 05B AMBAC		5.500			04/01/37		2,720,075
	10,085,000	Colorado Health Facilities Auth. Rev. (Catholic Health) Ser. 06C-1 AGM		5.100			10/01/41		10,452,094
	300,000	Connecticut State Health & Educational Facility Auth. (Yale—New Haven Hospital) Ser. 06J-1 AMBAC		5.000			07/01/31		311,277
	1,570,000	District of Columbia Hospital Rev. (Children’s Hospital Obligation Group) Ser. 08 AGC		5.250			07/15/38		1,617,477
	3,000,000	Gwinnett County Georgia Hospital Auth. RAC (Gwinnett Hospital System) Ser. 07D AGM		5.500			07/01/41		3,220,620
	2,000,000	Halifax Hospital Medical Center (Florida Hospital) Rev. Ser. 06B-1 AGM		5.500			06/01/38		2,082,640
	4,400,000	Hamilton County Ohio Health Care Facilities Rev. (Christ Hospital Project) Ser. 12 AGM		5.000			06/01/42		4,586,692
	3,800,000	Harris County Health Facilities Development Corp. Thermal Utility Rev. (TECO Project) Ser. 08 AGC		5.125			11/15/37		4,027,050
	1,000,000	Illinois Finance Auth. Rev. (Carle Foundation) Ser. 11A AGM		6.000			08/15/41		1,083,750
	1,000,000	Illinois Finance Auth. Rev. (Southern Illinois Healthcare) Ser. 05 AGM		5.250			03/01/30		1,058,970
	1,700,000	Indiana Health & Educational Facilities Finance Auth. Rev. (St. Francis) Ref. Ser. 06E AGM		5.250			05/15/41		1,749,827
	2,500,000	Iowa Finance Auth. Health Facilities Rev. (Remarketed) Ser. 08A AGC		5.625			08/15/37		2,709,950
	6,000,000	Jefferson Parish Louisiana Hospital District No. 1 Hospital Rev. Ref. (West Jefferson Medical Center) Ser. 11A AGM		6.000			01/01/39		6,591,840

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

49

PowerShares Insured National Municipal Bond Portfolio (PZA) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Municipal Bonds (continued)
		Hospital Revenue (continued)
$	1,960,000	Johnston North Carolina Memorial Hospital Auth. Ser. 08 AGM		5.250	%		10/01/36	$	2,106,353
	485,000	Maryland State Health & Higher Educational Facilities Auth. Rev. Ser. 06A NATL RE		4.750			07/01/36		487,042
	6,595,000	Medford Oregon Hospital Facilities Auth. Rev. Ref. (Asanthe Health System) Ser. 10 AGM		5.500			08/15/28		7,328,298
	2,000,000	Medical Center Hospital Auth. Georgia RAC (Columbus Regional Healthcare) Ser. 10 AGM		5.000			08/01/41		2,084,660
	1,200,000	Medical Center Hospital Auth. Georgia RAC (Columbus Regional Healthcare) Ser. 10 AGM		5.000			08/01/45		1,248,120
	10,000,000	New Jersey Health Care Facilities Financing Auth. Rev. (Virtua Health) Ser. 09 AGC		5.500			07/01/38		10,625,000
	500,000	New Jersey Health Care Facilities Financing Auth. Rev. Ref. (Barnabas Health) Ser. 11A		5.625			07/01/37		538,170
	1,000,000	Ohio State Higher Educational Facilities Community Rev. (Summa Health System 2010 Project) Ser. 10 AGM		5.250			11/15/35		1,040,800
	2,500,000	Palm Beach County Florida Health Facilities Auth. Health Facilities Rev. (Bethesda Healthcare System, Inc. Project) Ser. 10A AGM		5.250			07/01/40		2,618,850
	15,000	Roanoke Virginia Industrial Development Auth. Hospital Rev. (Unrefunded Carilion Health System-Remarketed) Ser. 05B AGM		5.000			07/01/38		17,997
	985,000	Roanoke Virginia Industrial Development Auth. Hospital Rev. Ref. (Carilion Health System-Remarketed) Ser. 05B AGM		5.000			07/01/38		1,033,295
	1,000,000	South Carolina Jobs-Economic Development Auth. Hospital Rev. Ref. & Improvement (Anmed Health) Ser. 09B AGC		5.500			02/01/38		1,094,810
	4,350,000	South Carolina Jobs-Economic Development Auth. Hospital Rev. Ref. (Palmetto Health) Ser. 11A AGM		6.500			08/01/39		4,942,426
	1,000,000	South Fork Municipal Auth. Pennsylvania Hospital Rev. (Conemaugh Valley Memorial Hospital) Ser. 10B AGC		5.375			07/01/35		1,056,430
	450,000	University of California Regents Medical Center Pooled Rev. Ser. 07A NATL RE		4.750			05/15/31		459,189
	2,050,000	Washington State Health Care Facilities Auth. Rev. (Multicare Health System Remarketed) Ser. 07B AGM		5.500			08/15/38		2,172,160
	850,000	Washington State Health Care Facilities Auth. Rev. (Providence Health) Ser. 06E AGM		5.250			10/01/33		916,649
									93,089,484
		Lease Revenue—3.7%
	1,500,000	California State Public Works Board Lease Rev. Ser. 14B		5.000			10/01/39		1,614,690
	500,000	Kern County California COP (Capital Improvements Projects) Ser. 09A AGC		5.750			08/01/35		549,160
	7,000,000	Los Angeles California Municipal Improvement Corp. Lease Rev. (Real Property) Ser. 09B AGC		5.500			04/01/39		7,705,320
	2,150,000	Miami-Dade County Florida School Board COP Ser. 08B AGC		5.000			05/01/33		2,242,235
	500,000	Miami-Dade County Florida School Board COP Ser. 09A AGC		5.375			02/01/34		538,545
	4,000,000	Richmond Joint Powers Financing Auth. Lease Rev. (Civic Center Project) Ser. 09 AGC		5.750			08/01/29		4,552,280
	5,000,000	State Public School Building Auth. Pennsylvania School Rev. (Harrisburg School District Project) Ser. 09A AGC		4.750			11/15/29		5,187,650
									22,389,880
		Miscellaneous Revenue—6.3%
	7,500,000	Arizona State Lottery Rev. Ser. 10A AGM		5.000			07/01/29		8,340,600
	2,500,000	Dallas Texas Civic Center Rev. Ref. & Improvement Ser. 09 AGC		5.250			08/15/34		2,677,900
	2,000,000	Greater Arizona Development Auth. Infrastructure Rev. Ser. 05B NATL RE		5.000			08/01/35		2,036,440
	2,025,000	Indianapolis Indiana Local Public Improvement Bond Bank (Pilot Infrastructure Project) Ser. 10F AGM		5.000			01/01/35		2,208,830
	535,000	Indianapolis Indiana Local Public Improvement Bond Bank (Pilot Infrastructure Project) Ser. 10F AGM		5.000			01/01/40		572,712
	1,000,000	Kentucky Economic Development Financial Auth. (Louisville Arena Project) Rev. Sub-Ser 08A-1 AGC		6.000			12/01/33		1,052,550
	5,545,000	Kentucky Economic Development Financial Auth. (Louisville Arena Project) Rev. Sub-Ser 08A-1 AGC		6.000			12/01/38		5,788,259
	1,500,000	Kentucky Economic Development Financial Auth. (Louisville Arena Project) Rev. Sub-Ser 08A-1 AGC		6.000			12/01/42		1,562,430
	500,000	New York City Industrial Development Agency Rev. Queens Baseball Stadium (Pilot) Ser. 09 AGC		6.500			01/01/46		556,850
	1,000,000	Newark New Jersey Housing Auth. Housing Rev. (South Ward Police Facility) Ser. 09 AGC		6.750			12/01/38		1,173,710
	11,535,000	Pittsburg Unified School District Financing Auth. Rev. (District Bond Program) Ser. 11 AGM		5.500			09/01/46		12,676,965
									38,647,246
		Port, Airport & Marina Revenue—4.6%
	3,000,000	Birmingham Alabama Airport Auth. Airport Rev. Ser. 10 AGM		5.250			07/01/30		3,304,020
	1,500,000	Birmingham Alabama Airport Auth. Airport Rev. Ser. 10 AGM		5.500			07/01/40		1,636,995
	400,000	Chicago Illinois O’Hare International Airport Rev. (Ref-Third Indenture) Ser. 05A NATL RE		5.000			01/01/29		421,448
	2,000,000	City of Cleveland Ohio Airport System Rev. Ref. Ser. 12A AGM		5.000			01/01/30		2,144,300
	1,000,000	City of Cleveland Ohio Airport System Rev. Ref. Ser. 12A AGM		5.000			01/01/31		1,066,010
	1,500,000	Manchester New Hampshire General Airport Rev. Ref. Remarketed Ser. 09A AGM		5.125			01/01/30		1,582,695
	7,000,000	Miami-Dade County Florida Aviation Rev. Ser. 10B AGM		5.000			10/01/35		7,283,500
	600,000	Philadelphia Pennsylvania Airport Rev. Ser. 10A AGM		5.000			06/15/35		629,898

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

50

PowerShares Insured National Municipal Bond Portfolio (PZA) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Municipal Bonds (continued)
		Port, Airport & Marina Revenue (continued)
$	2,500,000	Port of Seattle Rev. (Intermediate Lien) Ref. Ser. 05A NATL RE		5.000	%		03/01/35	$	2,567,850
	5,000,000	San Diego County California Regional Airport Auth. Consolidated Rental Car Facilities Ser. 14A		5.000			07/01/44		5,293,700
	2,000,000	San Jose California Airport Rev. Ser. 07B AMBAC		5.000			03/01/37		2,052,220
									27,982,636
		Recreational Revenue—0.6%
	3,000,000	New York City Industrial Development Agency Rev. Yankee Stadium (Pilot) Ser. 09 AGC		7.000			03/01/49		3,456,240
		Sales Tax Revenue—2.9%
	5,240,000	Bi-State Development Agency of Missouri-Illinois Metropolitan District Mass Transit Sales Tax (MetroLink Cross County Extension) Ser. 09 AGC		5.000			10/01/35		5,573,421
	1,500,000	Central Puget Sound Regional Transportation Auth. Sales & Use Tax Rev. Ser. 07A AGM		5.000			11/01/34		1,605,345
	400,000	Dallas Area Rapid Transit (Sr. Lien) Ser. 07 AMBAC		5.000			12/01/32		432,552
	1,815,000	Illinois Regional Transportation Auth. Ser. 00 NATL RE		6.500			07/01/30		2,452,737
	300,000	Illinois Regional Transportation Auth. Ser. 06A NATL RE		4.500			07/01/35		307,167
	3,000,000	Pittsburgh & Allegheny County Pennsylvania Sports & Exhibition Auth. Sales Ref. (Regional Asset District) Ser. 10 AGM		5.000			02/01/31		3,174,210
	2,500,000	Puerto Rico Sales Tax Financing Corp. Sales Tax Rev. (First Subordinate Ser.) 10A AGM		5.000			08/01/40		2,275,650
	1,000,000	San Francisco California Bay Area Rapid Transit District Sales Tax Rev. Ref. Ser. 05A NATL RE		5.000			07/01/30		1,040,050
	1,000,000	Santa Clara Valley California Transportation Auth. Sales Tax Rev. (Ref- Measure A) Ser. 07A AMBAC		5.000			04/01/36		1,088,400
									17,949,532
		Sewer Revenue—7.6%
	24,375,000	Chicago Illinois Wastewater Transmission Rev. (Second Lien) Ser. 12 AGM		5.000			01/01/37		25,203,262
	2,500,000	Chicago Illinois Wastewater Transmission Rev. Ser. 08A BHAC		5.500			01/01/38		2,639,275
	2,000,000	Detroit Michigan Sewage Disposal Rev. (Second Lien-Remarketed) Ser. 06A BHAC		5.500			07/01/36		2,051,280
	2,250,000	Detroit Michigan Sewage Disposal Rev. (Senior Lien-Remarketed) Ser. 03B AGM		7.500			07/01/33		2,453,603
	5,000,000	Detroit Michigan Water & Sewerage Department Sewerage Disposal System Rev. Ref. (Senior Lien-Remarketed) Ser. 12A AGM		5.000			07/01/39		4,752,600
	500,000	Fresno California Sewer Rev. Ser. 08A AGC		5.000			09/01/37		526,740
	3,000,000	King County Washington Sewer Rev. Ser. 07 AGM		5.000			01/01/42		3,121,350
	35,000	Los Angeles California Wastewater System Rev. (Prerefunded 2013) Ser. 05A NATL RE		4.750			06/01/35		36,724
	385,000	Los Angeles California Wastewater System Rev. (Prerefunded) Ser. 05A NATL RE		4.750			06/01/35		403,965
	80,000	Los Angeles California Wastewater System Rev. (Unrefunded 2013) Ser. 05A NATL RE		4.750			06/01/35		81,661
	5,000,000	Sacramento County California Sanitation District Financing Auth. Rev. (Sacramento Regional County Sanitation) Ser. 06 NATL RE		5.000			12/01/36		5,317,650
									46,588,110
		Special Assessment—0.7%
	4,000,000	Sacramento California Area Flood Control Agency Consolidated Capital Assessment District Ser. 08 BHAC		5.625			10/01/37		4,412,800
		Student Loan Revenue—0.5%
	2,850,000	Maine Educational Loan Auth. Student Loan Rev. Ser. 09A-3 Class A AGC		5.875			12/01/39		3,075,122
		Tax Increment Revenue—1.8%
	1,000,000	Park Creek Metropolitan District Colorado Rev. (Senior Limited Property Tax) Ser. 11A AGM		6.125			12/01/41		1,099,280
	3,930,000	Westminster California Redevelopment Agency Tax Allocation Rev. Subordinate (Commercial Redevelopment Project No. 1) Ser. 09 AGC		6.250			11/01/39		4,444,516
	5,000,000	Westminster California Redevelopment Agency Tax Allocation Rev. Subordinate (Commercial Redevelopment Project No. 1) Ser. 09 AGC		5.750			11/01/45		5,338,500
									10,882,296
		Transit Revenue—4.0%
	6,500,000	Metropolitan Transportation Auth. Rev. Ser. 12E AGM		5.000			11/15/42		6,902,935
	400,000	New Jersey State Transportation Trust Fund Auth. (Transit System) Ser. 07A AMBAC		5.000			12/15/32		421,700
	15,000,000	New Jersey State Transportation Trust Fund Auth. (Transit System) Ser. 08A AGC		5.500			12/15/38		16,954,950
									24,279,585
		Water Revenue—15.2%
	9,500,000	Atlanta Georgia Water & Wastewater Rev. Ser. 09-B AGM		5.250			11/01/34		10,368,300
	1,000,000	Birmingham Alabama Waterworks & Sewer Board Rev. Ser. 09A AGC		5.250			01/01/39		1,092,950

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

51

PowerShares Insured National Municipal Bond Portfolio (PZA) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Municipal Bonds (continued)
		Water Revenue (continued)
$	2,160,000	Bucks County Pennsylvania Water & Sewer Auth. System Rev. Ser. 11 AGM		5.000	%		12/01/41	$	2,305,670
	2,250,000	Chicago Illinois Waterworks Rev. Ref. (Second Lien) Ser. 08 AGM		5.250			11/01/33		2,399,715
	200,000	City of Cape Coral Florida Water & Sewer Rev. Ref. Ser. 11 AGM		5.000			10/01/41		213,362
	2,000,000	Detroit Michigan Water Supply System Rev. (Second Lien-Remarketed) Ser. 06B AGM		6.250			07/01/36		2,078,180
	5,425,000	Detroit Michigan Water Supply System Rev. (Second Lien-Remarketed) Ser. 06B AGM		7.000			07/01/36		5,868,765
	1,500,000	Detroit Water Supply System Rev. (Second Lien) Ref. Ser. 06C AGM		5.000			07/01/29		1,505,370
	1,000,000	East Bay California Municipal Utility District Water System Rev. Subordinated Ser. 05A NATL RE		5.000			06/01/35		1,036,640
	3,000,000	El Dorado California Irrigation District Rev. Ref. Ser. 14A AGM		5.000			03/01/34		3,310,770
	3,500,000	El Dorado California Irrigation District Rev. Ref. Ser. 14A AGM		5.250			03/01/39		3,915,660
	760,000	Erie Pennsylvania Water Auth. Rev. Ser.12 AGM		4.000			12/01/47		705,660
	1,500,000	Florida Municipal Loan Council Ser. 11D AGM		5.500			10/01/41		1,606,185
	3,570,000	Houston Texas Utility System Rev. Ref. (Combined-First Lien) Ser. 09A AGC		6.000			11/15/35		4,178,935
	6,535,000	Indianapolis Indiana Local Public Improvement (Waterworks Project) Ser. 09A AGC		5.500			01/01/38		7,019,048
	1,000,000	Miami-Dade County Florida Water & Sewer System Rev. Ser. 10 AGM		5.000			10/01/27		1,110,820
	20,000,000	Miami-Dade County Florida Water & Sewer System Rev. Ser. 10 AGM		5.000			10/01/29		21,984,400
	1,500,000	Miami-Dade County Florida Water & Sewer System Rev. Ser. 10 AGM		4.625			10/01/30		1,611,180
	1,000,000	New York City Municipal Water Finance Auth. Water & Sewer System Rev. (Second General Resolution) Ser. 08DD		6.000			06/15/40		1,140,100
	5,000,000	North Fort Bend Texas Water Auth. (Water System) Rev. Ser. 09 AGC		5.250			12/15/34		5,399,750
	2,500,000	North Fort Bend Texas Water Auth. (Water System) Rev. Ser. 11 AGM		5.000			12/15/36		2,688,025
	2,000,000	North Sumter County Florida Utility Dependent District Utility Rev. Ser. 10 AGM		5.375			10/01/40		2,137,660
	875,000	Philadelphia Pennsylvania Water & Wastewater Rev. Ser. 10C AGM		5.000			08/01/40		925,811
	3,000,000	Port St. Lucie Florida Utility Rev. Ref. System Ser. 09 AGC		5.000			09/01/35		3,217,500
	4,050,000	Puerto Rico Commonwealth Aqueduct & Sewer Auth. Rev. (Senior Lien) Ser. 08A AGC		5.125			07/01/47		3,693,357
	1,000,000	San Jacinto Texas River Auth. Special Project Rev. (GRP Project) Ser. 11 AGM		5.000			10/01/37		1,040,740
									92,554,553
		Total Municipal Bonds (Cost $537,649,283)							563,067,166
		Warrants—4.4%
		Ad Valorem Property Tax—3.5%
	20,000,000	City of Jasper Alabama Ser. 14 BAM		5.000			03/01/44		21,459,000
		Sewer Revenue—0.9%
	5,000,000	Jefferson County Alabama Sewer Rev. (Senior Lien) Ser. 13A AGM		5.500			10/01/53		5,223,900
		Total Warrants (Cost $26,665,833)							26,682,900
		Total Investments (Cost $564,315,116)(a)—96.6%							589,750,066
		Other assets less liabilities—3.4%							20,966,735
		Net Assets—100.0%						$	610,716,801

Investment Abbreviations:

AGC—Assured Guaranty Corp.

AGM—Assured Guaranty Municipal Corp.

AMBAC—American Municipal Bond Assurance Corp.

Auth.—Authority

BAM—Build America Mutual

BHAC—Berkshire Hathaway Assurance Corp.

COP—Certificate of Participation

NATL RE—National Public Finance Guarantee Corp.

RAC—Revenue Anticipation Certificates

Ref.—Refunding Bonds

Rev.—Revenue

Ser.—Series

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

52

PowerShares Insured National Municipal Bond Portfolio (PZA) (continued)

April 30, 2014

(Unaudited)

Notes to Schedule of Investments:

^(a) This table, as of April 30, 2014, provides a listing of those entities that have either guaranteed, backed or otherwise enhanced the credit quality of more than 5% of the value of securities held in the portfolio. In instances where the entity has guaranteed, backed or otherwise enhanced the credit quality of a security, it is not primarily responsible for the borrower’s obligations but may be called upon to satisfy the borrower’s obligations.

Entities	Percentage of Total Investments
Assured Guaranty Municipal Corp.		54.9	%
Assured Guaranty Corp.		31.0

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

53

Portfolio Composition

PowerShares Insured New York Municipal Bond Portfolio (PZT)

Revenue Type Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Electric Power Revenue	19.2
College Revenue	11.0
Miscellaneous Revenue	9.7
Sales Tax Revenue	8.7
Highway Tolls Revenue	7.8
Recreational Revenue	6.4
Ad Valorem Property Tax	5.8
Water Revenue	5.0
Transit Revenue	4.8
Port, Airport & Marina Revenue	4.7
Sewer Revenue	4.6
Hospital Revenue	3.7
Industrial Revenue	3.2
Income Tax Revenue	1.1
Other Assets Less Liabilities	4.3

Schedule of Investments

PowerShares Insured New York Municipal Bond Portfolio (PZT)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Municipal Bonds—95.7%
		Ad Valorem Property Tax—5.8%
$	1,000,000	Puerto Rico Commonwealth Public Improvement Ref. Ser. 07A-4 AGM		5.250	%		07/01/30	$	979,670
	790,000	Puerto Rico Commonwealth Public Improvement Ref. Ser. 07A-4 AGM		5.000			07/01/31		749,797
	1,000,000	Puerto Rico Commonwealth Public Improvement Ref. Ser. 12A AGM		5.000			07/01/35		931,950
									2,661,417
		College Revenue—11.0%
	1,500,000	New York State Dormitory Auth. Rev. (New York University) Ser. 01 AMBAC		5.500			07/01/40		1,806,720
	2,500,000	New York State Dormitory Auth. Rev. (The New School) Ser. 10 AGM		5.500			07/01/43		2,697,025
	500,000	New York State Dormitory Auth. Rev. Non-Special Treatment Supported Debt (Fordham University) Ser. 08B AGC		5.000			07/01/38		528,155
									5,031,900
		Electric Power Revenue—19.2%
	1,000,000	Guam Power Auth. Rev. Ser. 12A AGM		5.000			10/01/30		1,100,730
	6,500,000	Long Island Power Auth. New York Electric Systems Rev. General Ser. 08A BHAC		5.500			05/01/33		7,471,750
	185,000	New York State Power Auth. Rev. Ser. 07A NATL RE		4.500			11/15/47		189,113
									8,761,593
		Highway Tolls Revenue—7.8%
	1,000,000	New York State Thruway Auth. General Rev. Ser. 05G AGM		5.000			01/01/32		1,042,990
	600,000	New York State Thruway Auth. General Rev. Ser. 07H NATL RE		5.000			01/01/37		630,186
	2,000,000	Puerto Rico Commonwealth Highway & Transportation Auth. Rev. Ref. Ser. 07CC AGM		5.250			07/01/32		1,875,220
									3,548,396

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

54

PowerShares Insured New York Municipal Bond Portfolio (PZT) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Municipal Bonds (continued)
		Hospital Revenue—3.7%
$	555,000	New York State Dormitory Auth. Rev. Special Treatment Supported Debt (Prerefunded Mental Health Services Facilities Improvement) Ser. 05B AMBAC		5.000	%		02/15/30	$	575,691
	45,000	New York State Dormitory Auth. Rev. Special Treatment Supported Debt (Unrefunded Mental Health Services Facilities Improvement) Ser. 05B AMBAC		5.000			02/15/30		46,401
	1,000,000	New York State Dormitory Auth. Rev. Special Treatment Supported Debt (Mental Health Services Facilities Improvement) Ser. 08A AGM		5.000			02/15/38		1,071,380
									1,693,472
		Income Tax Revenue—1.1%
	500,000	New York State Urban Development Corp. Rev. (State Personal Income Tax) Ser. 07C NATL RE		4.500			03/15/37		517,525
		Industrial Revenue—3.2%
	1,275,000	New York State Liberty Development Corp. Liberty Rev. Ref. (7 World Trade Center) Ser.12		5.000			09/15/29		1,443,759
		Miscellaneous Revenue—9.7%
	2,500,000	New York City Industrial Development Agency Rev. Queens Baseball Stadium (Pilot) Ser. 09 AGC		6.500			01/01/46		2,784,250
	1,000,000	New York City Transitional Finance Auth. Building Aid Rev. (Fiscal 2007) Ser. 06S-1 NATL RE		5.000			07/15/36		1,062,300
	600,000	New York City Transitional Finance Auth. Building Aid Rev. Ser. 07S-2 NATL RE		4.250			01/15/34		609,594
									4,456,144
		Port, Airport & Marina Revenue—4.7%
	1,000,000	Port Auth. of New York & New Jersey (Consolidated-One Hundred Forty-Eighth) Ser. 07 AGM		5.000			08/15/33		1,084,080
	1,000,000	Port Auth. of New York & New Jersey (Consolidated-One Hundred Forty-Eighth) Ser. 07 AGM		5.000			08/15/37		1,072,300
									2,156,380
		Recreational Revenue—6.4%
	2,000,000	New York City Industrial Development Agency Rev. Yankee Stadium (Pilot) Ser. 09 AGC		7.000			03/01/49		2,304,160
	600,000	New York City Trust for Cultural Resources Rev. (American Museum of National History) Ser. 04A NATL RE		5.000			07/01/44		602,208
									2,906,368
		Sales Tax Revenue—8.7%
	400,000	Puerto Rico Commonwealth Highway & Transportation Auth. Rev. Ref. Ser. 07N FGIC		5.250			07/01/39		236,328
	790,000	Puerto Rico Sales Tax Financing Corp. Sales Tax Rev. (First Subordinate Ser.) 10A AGM		5.000			08/01/40		719,105
	1,435,000	Puerto Rico Sales Tax Financing Corp. Sales Tax Rev. (First Subordinate Ser.) 10C AGM		5.125			08/01/42		1,319,712
	1,690,000	Sales Tax Asset Receivables Corp. Ser. 04A AMBAC		5.000			10/15/32		1,718,054
									3,993,199
		Sewer Revenue—4.6%
	2,000,000	New York City Municipal Finance Auth. Water & Sewer System Rev. Ser. 07AA NATL RE		4.750			06/15/33		2,094,680
		Transit Revenue—4.8%
	600,000	Metropolitan Transportation Auth. Rev. Ser. 07A NATL RE		4.750			11/15/37		617,250
	1,500,000	Metropolitan Transportation Auth. Rev. Ser. 11A AGM		5.000			11/15/36		1,598,670
									2,215,920
		Water Revenue—5.0%
	2,500,000	Puerto Rico Commonwealth Aqueduct & Sewer Auth. Rev. (Senior Lien) Ser. 08A AGC		5.125			07/01/47		2,279,850
		Total Investments (Cost $43,295,576)(a)—95.7%							43,760,603
		Other assets less liabilities—4.3%							1,948,360
		Net Assets—100.0%						$	45,708,963

Investment Abbreviations:

AGC—Assured Guaranty Corp.

AGM—Assured Guaranty Municipal Corp.

AMBAC—American Municipal Bond Assurance Corp.

Auth.—Authority

BHAC—Berkshire Hathaway Assurance Corp.

FGIC—Financial Guaranty Insurance Co.

NATL RE—National Public Finance Guarantee Corp.

Ref.—Refunding Bonds

Rev.—Revenue

Ser.—Series

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

55

PowerShares Insured New York Municipal Bond Portfolio (PZT) (continued)

April 30, 2014

(Unaudited)

Notes to Schedule of Investments:

^(a) This table, as of April 30, 2014, provides a listing of those entities that have either guaranteed, backed or otherwise enhanced the credit quality of more than 5% of the value of securities held in the portfolio. In instances where the entity has guaranteed, backed or otherwise enhanced the credit quality of a security, it is not primarily responsible for the borrower’s obligations but may be called upon to satisfy the borrower’s obligations.

Entities	Percentage of Total Investments
Assured Guaranty Municipal Corp.		37.1	%
Assured Guaranty Corp.		18.0
Berkshire Hathaway Assurance Corp.		17.1
National Public Finance Guarantee Corp.		14.4
American Municipal Bond Assurance Corp.		9.5

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

56

Portfolio Composition

PowerShares International Corporate Bond Portfolio (PICB)

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Banks	46.5
Electric	11.4
Telecommunications	10.2
Oil & Gas	4.3
Insurance	2.4
Auto Manufacturers	2.4
Mining	2.4
Agriculture	2.3
Gas	1.9
Commercial Services	1.7
Pharmaceuticals	1.6
Engineering & Construction	1.5
Transportation	1.5
Beverages	1.2

Food	1.1
Media	0.6
Miscellaneous Manufacturing	0.6
Home Furnishings	0.6
Savings & Loans	0.5
Diversified Financial Services	0.5
Sovereign	0.4
Holding Companies-Diversified	0.4
Healthcare-Services	0.4
Water	0.4
Chemicals	0.3
Country Funds-Closed-end	0.3
Building Materials	0.2
Energy-Alternate Sources	0.2
Aerospace/Defense	0.2
Real Estate	0.2
Other Assets Less Liabilities	1.8

Schedule of Investments

PowerShares International Corporate Bond Portfolio (PICB)

April 30, 2014

(Unaudited)

Foreign Currency(a)		Principal Amount			Interest Rate			Maturity Date		Value
				Corporate Bonds—98.0%
				Australia—5.2%
	EUR		150,000	Australia & New Zealand Banking Group Ltd., Series E, MTN		3.750	%		03/10/17	$	225,294
	AUD		500,000	BHP Billiton Finance Ltd., MTN		3.750			10/18/17		464,443
	EUR		1,000,000	BHP Billiton Finance Ltd., Series E, MTN		2.125			11/29/18		1,452,655
	EUR		1,000,000	BHP Billiton Finance Ltd., Series E, MTN		2.250			09/25/20		1,446,763
	GBP		350,000	BHP Billiton Finance Ltd., Series E, MTN		3.250			09/25/24		569,266
	EUR		200,000	Commonwealth Bank of Australia, Series E, MTN		4.250			11/10/16		301,585
	EUR		400,000	Commonwealth Bank of Australia, Series E, MTN		5.500			08/06/19		653,602
	EUR		350,000	Commonwealth Bank of Australia, Series E, MTN		4.375			02/25/20		565,685
	AUD		1,050,000	National Australia Bank Ltd., Series DIP		6.000			02/15/17		1,035,292
	EUR		500,000	National Australia Bank Ltd., Series E, MTN		4.625			02/10/20		787,038
	EUR		250,000	National Australia Bank Ltd., Series E, MTN		2.000			11/12/20		353,836
	EUR		250,000	National Australia Bank Ltd., Series E, MTN		2.750			08/08/22		367,851
	EUR		350,000	National Australia Bank Ltd., Series G, MTN		4.000			07/13/20		555,299
	GBP		200,000	QBE Insurance Group Ltd., MTN		6.125			09/28/15		357,719
	EUR		300,000	Telstra Corp. Ltd., Series E, MTN		3.500			09/21/22		460,989
	EUR		300,000	Telstra Corp. Ltd., Series E, MTN		2.500			09/15/23		425,264
	AUD		1,000,000	Westpac Banking Corp., MTN		7.250			11/18/16		1,010,820
	EUR		200,000	Westpac Banking Corp., Series E, MTN		4.125			05/25/18		311,243
	GBP		150,000	Westpac Banking Corp., Series E, MTN		5.000			10/21/19		284,581
	GBP		200,000	WT Finance AUST Pty Ltd.		5.500			06/27/17		378,703
											12,007,928

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

57

PowerShares International Corporate Bond Portfolio (PICB) (continued)

April 30, 2014

(Unaudited)

Foreign Currency(a)		Principal Amount			Interest Rate			Maturity Date		Value
				Corporate Bonds (continued)
				Austria—0.3%
	EUR		250,000	Hypo Alpe-Adria-Bank International AG, Series E, MTN		4.250	%		10/31/16	$	354,012
	EUR		300,000	Hypo Alpe-Adria-Bank International AG, Series E, MTN		4.375			01/24/17		424,658
											778,670
				Belgium—0.9%
	GBP		300,000	Anheuser-Busch InBev NV, Series E, MTN		6.500			06/23/17		578,421
	GBP		150,000	Anheuser-Busch InBev NV, Series E, MTN		9.750			07/30/24		383,052
	GBP		500,000	Anheuser-Busch InBev NV, Series E, MTN		4.000			09/24/25		862,113
	EUR		200,000	KBC Internationale Financieringsmaatschappij NV, Series E, MTN		4.500			03/27/17		305,513
											2,129,099
				Canada—14.2%
	CAD		400,000	Bank of Montreal, Series DPNT		3.490			06/10/16		378,219
	CAD		550,000	Bank of Montreal, Series DPNT		2.960			08/02/16		515,530
	CAD		550,000	Bank of Montreal, Series DPNT		2.390			07/12/17		508,925
	CAD		1,100,000	Bank of Montreal, Series DPNT		2.240			12/11/17		1,010,372
	CAD		400,000	Bank of Montreal, Series DPNT		6.020			05/02/18		418,271
	CAD		1,000,000	Bank of Montreal, Series DPNT		3.210			09/13/18		945,647
	CAD		900,000	Bank of Montreal, Series DPNT		2.840			06/04/20		829,350
	CAD		900,000	Bank of Montreal, Series DPNT		3.400			04/23/21		847,310
	CAD		325,000	Bank of Nova Scotia		3.610			02/22/16		306,755
	CAD		1,000,000	Bank of Nova Scotia		1.800			05/09/16		914,629
	CAD		900,000	Bank of Nova Scotia		2.242			03/22/18		823,421
	CAD		850,000	Bank of Nova Scotia, Series DPNT		2.740			12/01/16		793,530
	CAD		950,000	Bank of Nova Scotia, Series DPNT		2.598			02/27/17		884,592
	CAD		450,000	Bank of Nova Scotia, Series DPNT		4.100			06/08/17		437,436
	CAD		1,200,000	Bank of Nova Scotia, Series DPNT		2.370			01/11/18		1,104,291
	CAD		900,000	Bank of Nova Scotia, Series DPNT		2.462			03/14/19		821,362
	CAD		500,000	Bank of Nova Scotia, Series DPNT		3.270			01/11/21		467,939
	CAD		275,000	Bell Canada		3.600			12/02/15		258,256
	CAD		550,000	Bell Canada		3.350			06/18/19		515,721
	CAD		575,000	Bell Canada, MTN		4.400			03/16/18		563,248
	CAD		350,000	Bell Canada, MTN		3.250			06/17/20		323,077
	CAD		500,000	Bell Canada, Series M-26		3.350			03/22/23		445,168
	CAD		500,000	Caisse Centrale Desjardins, MTN		2.795			11/19/18		463,907
	CAD		850,000	Canadian Imperial Bank of Commerce/Canada		2.650			11/08/16		791,764
	CAD		500,000	Canadian Imperial Bank of Commerce/Canada, Series DPNT		1.750			06/01/16		456,886
	CAD		850,000	Canadian Imperial Bank of Commerce/Canada, Series DPNT		2.350			10/18/17		784,135
	CAD		850,000	Canadian Imperial Bank of Commerce/Canada, Series DPNT, MTN		3.950			07/14/17		824,394
	CAD		600,000	CDP Financial, Inc.		4.600			07/15/20		609,939
	CAD		450,000	Rogers Communications, Inc.		5.800			05/26/16		442,398
	CAD		625,000	Rogers Communications, Inc.		5.340			03/22/21		638,941
	CAD		700,000	Royal Bank of Canada, Series DPNT		2.680			12/08/16		652,411
	CAD		700,000	Royal Bank of Canada, Series DPNT		3.660			01/25/17		669,333
	CAD		1,300,000	Royal Bank of Canada, Series DPNT		2.364			09/21/17		1,198,625
	CAD		1,200,000	Royal Bank of Canada, Series DPNT		2.260			03/12/18		1,099,403
	CAD		1,000,000	Royal Bank of Canada, Series DPNT		2.820			07/12/18		934,156
	CAD		1,000,000	Royal Bank of Canada, Series DPNT		2.890			10/11/18		933,637
	CAD		650,000	Royal Bank of Canada, Series DPNT		2.770			12/11/18		603,085
	CAD		1,000,000	Royal Bank of Canada, Series DPNT		2.980			05/07/19		934,785
	CAD		900,000	Royal Bank of Canada, Series DPNT		2.860			03/04/21		821,608
	CAD		1,000,000	Royal Bank of Canada, Series DPNT, MTN		3.030			07/26/16		938,102
	CAD		950,000	Shaw Communications, Inc.		5.650			10/01/19		979,363
	CAD		450,000	Shaw Communications, Inc.		6.750			11/09/39		490,262
	CAD		500,000	TELUS Corp., Series CG		5.050			12/04/19		506,738
	CAD		500,000	TELUS Corp., Series CH		5.050			07/23/20		507,121
	CAD		450,000	Toronto-Dominion Bank (The), Series DPNT		2.948			08/02/16		421,588
	CAD		1,100,000	Toronto-Dominion Bank (The), Series DPNT		2.433			08/15/17		1,019,724

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

58

PowerShares International Corporate Bond Portfolio (PICB) (continued)

April 30, 2014

(Unaudited)

Foreign Currency(a)		Principal Amount			Interest Rate			Maturity Date		Value
				Corporate Bonds (continued)
				Canada (continued)
	CAD		600,000	Toronto-Dominion Bank (The), Series DPNT		2.171	%		04/02/18	$	548,745
	CAD		500,000	Toronto-Dominion Bank (The), Series DPNT		2.447			04/02/19		456,167
											32,840,266
				Denmark—1.1%
	EUR		250,000	Carlsberg Breweries A/S, Series E, MTN		3.375			10/13/17		371,855
	EUR		200,000	Danske Bank A/S, Series E, MTN		2.500			07/09/15		283,809
	EUR		150,000	Danske Bank A/S, Series E, MTN		3.875			05/18/16		221,315
	GBP		250,000	DONG Energy A/S, Series E, MTN		4.875			01/12/32		438,395
	NOK		5,000,000	Nykredit Bank A/S, Series E, MTN		5.000			08/21/18		881,617
	GBP		150,000	TDC A/S, MTN		5.625			02/23/23		284,828
											2,481,819
				Finland—0.3%
	EUR		500,000	Fortum OYJ, Series E, MTN		2.250			09/06/22		695,528
				France—16.0%
	EUR		350,000	Areva SA, Series E, MTN		3.875			09/23/16		516,257
	EUR		150,000	Autoroutes du Sud de la France SA, Series E, MTN		5.625			07/04/22		261,400
	EUR		200,000	Banque Federative du Credit Mutuel SA, Series E, MTN		2.000			09/19/19		284,650
	EUR		500,000	Banque Federative du Credit Mutuel SA, Series E, MTN		4.125			07/20/20		791,670
	EUR		200,000	Banque Federative du Credit Mutuel SA, Series E, MTN		4.000			10/22/20		307,410
	EUR		500,000	Banque Federative du Credit Mutuel SA, Series E, MTN		2.625			02/24/21		728,537
	EUR		500,000	Banque Federative du Credit Mutuel SA, Series E, MTN		2.625			03/18/24		701,642
	EUR		200,000	BNP Paribas Fortis SA, Series E, MTN		5.757			10/04/17		317,600
	EUR		500,000	BNP Paribas SA, Series E, MTN		5.431			09/07/17		786,652
	EUR		300,000	BNP Paribas SA, Series E, MTN		2.000			01/28/19		428,954
	EUR		550,000	BNP Paribas SA, Series E, MTN		2.500			08/23/19		802,613
	EUR		700,000	BNP Paribas SA, Series E, MTN		3.750			11/25/20		1,093,128
	EUR		250,000	BNP Paribas SA, Series E, MTN		2.250			01/13/21		356,236
	EUR		300,000	BNP Paribas SA, Series E, MTN		2.875			10/24/22		440,216
	EUR		250,000	BNP Paribas SA, Series E, MTN		2.875			09/26/23		365,037
	EUR		100,000	Bouygues SA		4.250			07/22/20		158,598
	EUR		500,000	BPCE SA		4.625			07/18/23		766,061
	EUR		250,000	BPCE SA, Series E, MTN		3.750			07/21/17		376,199
	EUR		500,000	BPCE SA, Series E, MTN		2.125			03/17/21		702,640
	EUR		200,000	BPCE SA, Series E, MTN		4.500			02/10/22		325,948
	EUR		200,000	Carrefour SA, Series E, MTN		1.750			05/22/19		282,149
	EUR		200,000	Carrefour SA, Series E, MTN		4.000			04/09/20		314,487
	EUR		100,000	Carrefour SA, Series E, MTN		3.875			04/25/21		156,811
	EUR		300,000	Casino Guichard Perrachon SA, Series E, MTN		3.157			08/06/19		447,427
	EUR		150,000	Cie de St-Gobain, Series E, MTN		3.500			09/30/15		216,111
	EUR		200,000	Cie de St-Gobain, Series E, MTN		4.750			04/11/17		308,056
	EUR		150,000	Cie Financiere et Industrielle des Autoroutes SA		5.000			05/24/21		250,249
	EUR		350,000	Credit Agricole SA, Series E, MTN		5.971			02/01/18		564,306
	EUR		150,000	Credit Agricole SA, Series E, MTN		5.875			06/11/19		248,619
	EUR		600,000	Credit Agricole SA, Series E, MTN		3.900			04/19/21		918,785
	EUR		500,000	Credit Agricole SA/London, Series E, MTN		3.875			02/13/19		776,407
	EUR		300,000	Credit Agricole SA/London, Series E, MTN		2.375			11/27/20		431,887
	EUR		500,000	Credit Agricole SA/London, Series E, MTN		5.125			04/18/23		868,683
	EUR		300,000	Credit Agricole SA/London, Series E, MTN		3.125			07/17/23		444,240
	EUR		100,000	Credit Mutuel Arkea SA, Series E, MTN		5.000			06/28/17		155,858
	EUR		200,000	Danone SA, Series E, MTN		2.250			11/15/21		285,346
	EUR		300,000	Electricite de France, Series E, MTN		6.250			01/25/21		534,262
	EUR		300,000	Electricite de France, Series E, MTN		2.250			04/27/21		429,199
	EUR		300,000	Electricite de France, Series E, MTN		3.875			01/18/22		472,769
	EUR		600,000	Electricite de France, Series E, MTN		2.750			03/10/23		874,524
	EUR		650,000	Electricite de France, Series E, MTN		4.625			09/11/24		1,084,470
	EUR		400,000	Electricite de France, Series E, MTN		4.125			03/25/27		642,536

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

59

PowerShares International Corporate Bond Portfolio (PICB) (continued)

April 30, 2014

(Unaudited)

Foreign Currency(a)		Principal Amount			Interest Rate			Maturity Date		Value
				Corporate Bonds (continued)
				France (continued)
	GBP		350,000	Electricite de France, Series E, MTN		6.250	%		05/30/28	$	711,195
	GBP		1,100,000	Electricite de France, Series E, MTN		6.125			06/02/34		2,227,441
	GBP		400,000	Electricite de France, Series E, MTN		5.500			10/17/41		754,835
	EUR		200,000	GDF Suez, Series E, MTN		6.875			01/24/19		349,427
	GBP		300,000	GDF Suez, Series E, MTN		6.125			02/11/21		602,787
	EUR		1,000,000	GDF Suez, Series E, MTN		3.500			10/18/22		1,550,375
	EUR		100,000	GIE GDF SUEZ Alliance, Series E, MTN		5.750			06/24/23		179,579
	EUR		300,000	La Poste SA, Series E, MTN		4.250			11/08/21		489,805
	GBP		850,000	Orange SA, Series E, MTN		5.000			05/12/16		1,528,873
	EUR		750,000	Orange SA, Series E, MTN		3.875			04/09/20		1,168,354
	EUR		150,000	Orange SA, Series E, MTN		3.875			01/14/21		234,829
	EUR		400,000	Orange SA, Series E, MTN		3.000			06/15/22		591,848
	EUR		200,000	Pernod Ricard SA		5.000			03/15/17		307,587
	EUR		200,000	Sanofi, Series E, MTN		1.875			09/04/20		283,141
	EUR		100,000	Societe Des Autoroutes Paris-Rhin-Rhone, Series E, MTN		5.000			01/12/17		153,232
	EUR		200,000	Societe Generale SA, Series E, MTN		4.000			04/20/16		295,059
	EUR		150,000	Societe Generale SA, Series E, MTN		3.125			09/21/17		223,469
	GBP		300,000	Societe Generale SA, Series E, MTN		5.400			01/30/18		550,854
	EUR		300,000	Societe Generale SA, Series E, MTN		4.750			03/02/21		494,327
	EUR		300,000	Societe Generale SA, Series E, MTN		4.250			07/13/22		490,090
	GBP		500,000	Societe Nationale des Chemins de Fer Francais, Series E, MTN		5.375			03/18/27		974,114
	GBP		250,000	Total Capital SA, Series E, MTN		3.875			12/14/18		455,931
	EUR		250,000	Total Capital SA, Series E, MTN		4.875			01/28/19		409,355
	EUR		100,000	Vinci SA, Series E, MTN		4.125			02/20/17		150,995
	EUR		500,000	Vivendi SA, Series E, MTN		4.750			07/13/21		819,002
											37,215,133
				Germany—8.7%
	GBP		500,000	Allianz Finance II BV, Series 62		4.500			03/13/43		879,048
	EUR		250,000	Allianz Finance II BV, Series E, MTN		4.750			07/22/19		407,293
	EUR		500,000	Allianz Finance II BV, Series E, MTN		3.500			02/14/22		774,055
	EUR		250,000	BASF SE, Series 10Y		2.000			12/05/22		352,368
	EUR		400,000	BMW Finance NV, Series E, MTN		3.625			01/29/18		609,095
	GBP		250,000	BMW Finance NV, Series E, MTN		3.375			12/14/18		442,632
	EUR		450,000	BMW Finance NV, Series E, MTN		3.250			01/14/19		683,591
	EUR		300,000	BMW US Capital LLC, Series E, MTN		1.000			07/18/17		417,278
	EUR		150,000	Commerzbank AG, Series E, MTN		3.875			03/22/17		224,938
	EUR		500,000	Commerzbank AG, Series E, MTN		4.000			09/16/20		788,816
	EUR		200,000	Daimler AG, Series E, MTN		4.125			01/19/17		302,041
	NOK		2,700,000	Daimler International Finance BV, Series E, MTN		3.625			01/20/16		465,718
	GBP		200,000	Daimler International Finance BV, Series E, MTN		3.500			06/06/19		354,148
	EUR		300,000	Deutsche Bahn Finance BV, Series E, MTN		4.875			03/12/19		491,031
	EUR		150,000	Deutsche Bank AG, Series E, MTN		5.125			08/31/17		237,289
	EUR		350,000	Deutsche Bank AG, Series E, MTN		5.000			06/24/20		554,935
	EUR		300,000	Deutsche Bank AG, Series E, MTN		2.375			01/11/23		427,618
	EUR		400,000	Deutsche Telekom International Finance BV, Series E, MTN		2.125			01/18/21		569,424
	GBP		100,000	Deutsche Telekom International Finance BV, Series E, MTN		6.500			04/08/22		203,033
	EUR		500,000	Deutsche Telekom International Finance BV, Series E, MTN		4.250			07/13/22		807,410
	GBP		500,000	E.ON International Finance BV, Series E, MTN		6.000			10/30/19		979,450
	EUR		1,100,000	E.ON International Finance BV, Series E, MTN		5.750			05/07/20		1,879,663
	NOK		2,000,000	Linde AG, Series E, MTN		2.750			09/28/17		342,103
	EUR		300,000	Merck Financial Services GmbH, Series E, MTN		4.500			03/24/20		486,150
	EUR		600,000	RWE Finance BV, Series E, MTN		6.625			01/31/19		1,031,128
	GBP		400,000	RWE Finance BV, Series E, MTN		6.250			06/03/30		803,672
	GBP		800,000	RWE Finance BV, Series E, MTN		4.750			01/31/34		1,359,426
	EUR		90,000	Siemens Financieringsmaatschappij NV, Series E, MTN		5.125			02/20/17		139,999
	EUR		250,000	Siemens Financieringsmaatschappij NV, Series E, MTN		5.625			06/11/18		411,763
	EUR		100,000	Siemens Financieringsmaatschappij NV, Series E, MTN		2.875			03/10/28		144,874

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

60

PowerShares International Corporate Bond Portfolio (PICB) (continued)

April 30, 2014

(Unaudited)

Foreign Currency(a)		Principal Amount			Interest Rate			Maturity Date		Value
				Corporate Bonds (continued)
				Germany (continued)
	GBP		500,000	Siemens Financieringsmaatschappij NV, Series E, MTN		3.750	%		09/10/42	$	771,386
	EUR		150,000	Volkswagen International Finance NV, Series E, MTN		1.875			05/15/17		213,824
	EUR		450,000	Volkswagen International Finance NV, Series E, MTN		3.250			01/21/19		679,234
	EUR		400,000	Volkswagen International Finance NV, Series E, MTN		2.000			03/26/21		564,345
	EUR		300,000	Volkswagen Leasing GmbH, Series E, MTN		2.375			09/06/22		424,603
											20,223,381
				Hong Kong—0.3%
	EUR		250,000	Hutchison Whampoa Europe Finance 12 Ltd., Series E, MTN		2.500			06/06/17		362,954
	EUR		150,000	Hutchison Whampoa Finance 09 Ltd.		4.750			11/14/16		227,649
											590,603
				Italy—8.7%
	EUR		300,000	Assicurazioni Generali SpA, Series E, MTN		5.125			09/16/24		492,350
	EUR		250,000	Atlantia SpA		3.625			11/30/18		378,269
	EUR		500,000	Atlantia SpA, Series E, MTN		3.375			09/18/17		744,910
	EUR		200,000	Atlantia SpA, Series E, MTN		4.500			02/08/19		315,938
	GBP		300,000	Atlantia SpA, Series E, MTN		6.250			06/09/22		589,780
	EUR		100,000	Enel Finance International NV, Series E, MTN		4.125			07/12/17		151,463
	EUR		550,000	Enel Finance International NV, Series E, MTN		4.875			03/11/20		890,223
	EUR		250,000	Enel Finance International NV, Series E, MTN		5.000			09/14/22		413,498
	EUR		200,000	Enel Finance International NV, Series E, MTN		4.875			04/17/23		328,157
	GBP		800,000	Enel Finance International NV, Series E, MTN		5.625			08/14/24		1,510,753
	EUR		750,000	Enel Finance International NV, Series G, MTN		5.750			10/24/18		1,234,624
	EUR		200,000	Enel SpA		4.875			02/20/18		312,578
	GBP		650,000	Enel SpA, Series E, MTN		6.250			06/20/19		1,262,072
	EUR		400,000	Eni SpA		4.125			09/16/19		631,096
	EUR		400,000	Eni SpA, Series E, MTN		4.250			02/03/20		637,323
	EUR		150,000	Eni SpA, Series E, MTN		4.000			06/29/20		236,450
	EUR		300,000	Eni SpA, Series E, MTN		3.250			07/10/23		451,467
	EUR		300,000	Eni SpA, Series E, MTN		3.750			09/12/25		465,070
	EUR		200,000	Eni SpA, Series E, MTN		3.625			01/29/29		298,879
	EUR		500,000	Intesa Sanpaolo SpA, Series E, MTN		4.875			07/10/15		725,606
	EUR		400,000	Intesa Sanpaolo SpA, Series E, MTN		4.125			01/14/16		583,235
	EUR		300,000	Intesa Sanpaolo SpA, Series E, MTN		4.125			09/19/16		444,699
	EUR		300,000	Intesa Sanpaolo SpA, Series E, MTN		5.000			02/28/17		459,849
	EUR		400,000	Intesa Sanpaolo SpA, Series E, MTN		4.375			10/15/19		622,705
	EUR		250,000	Intesa Sanpaolo SpA, Series E, MTN		4.000			10/30/23		377,358
	EUR		200,000	Intesa Sanpaolo SpA, Series G, MTN		4.000			11/08/18		305,301
	EUR		100,000	Snam SpA, Series E, MTN		3.875			03/19/18		152,193
	EUR		200,000	Snam SpA, Series E, MTN		5.000			01/18/19		322,137
	EUR		300,000	Snam SpA, Series E, MTN		3.500			02/13/20		456,490
	EUR		400,000	Snam SpA, Series E, MTN		5.250			09/19/22		683,066
	GBP		500,000	Telecom Italia SpA, Series E, MTN		7.375			12/15/17		957,070
	EUR		400,000	Telecom Italia SpA, Series E, MTN		5.250			02/10/22		606,366
	EUR		250,000	Terna Rete Elettrica Nazionale SpA, Series E, MTN		4.125			02/17/17		376,372
	EUR		100,000	Terna Rete Elettrica Nazionale SpA, Series E, MTN		4.750			03/15/21		164,228
	EUR		300,000	UniCredit SpA, Series E, MTN		4.875			03/07/17		456,351
	EUR		300,000	UniCredit SpA, Series E, MTN		3.375			01/11/18		442,952
	EUR		400,000	UniCredit SpA, Series E, MTN		3.625			01/24/19		598,128
											20,079,006
				Japan—0.8%
	JPY		30,000,000	Development Bank of Japan, Inc.		1.050			06/20/23		305,515
	JPY		60,000,000	Development Bank of Japan, Inc.		2.300			03/19/26		683,619
	JPY		100,000,000	Panasonic Corp., Series 10		0.752			03/18/16		987,805
											1,976,939

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

61

PowerShares International Corporate Bond Portfolio (PICB) (continued)

April 30, 2014

(Unaudited)

Foreign Currency(a)		Principal Amount			Interest Rate			Maturity Date		Value
				Corporate Bonds (continued)
				Netherlands—8.0%
	EUR		700,000	ABN AMRO Bank NV, Series E, MTN		3.625	%		10/06/17	$	1,057,217
	EUR		450,000	ABN AMRO Bank NV, Series E, MTN		4.125			03/28/22		722,957
	EUR		200,000	ABN AMRO Bank NV, Series E, MTN		7.125			07/06/22		349,735
	EUR		200,000	Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Netherlands		3.875			07/25/23		299,221
	GBP		750,000	Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Netherlands, Series 2541		4.000			09/19/22		1,330,480
	GBP		500,000	Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Netherlands, Series E, MTN		4.000			09/10/15		878,032
	EUR		500,000	Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Netherlands, Series E, MTN		3.375			04/21/17		743,879
	EUR		300,000	Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Netherlands, Series E, MTN		4.750			01/15/18		471,693
	EUR		150,000	Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Netherlands, Series E, MTN		3.500			10/17/18		228,500
	EUR		750,000	Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Netherlands, Series E, MTN		4.125			01/12/21		1,199,165
	EUR		500,000	Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Netherlands, Series E, MTN		4.750			06/06/22		834,392
	EUR		650,000	Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Netherlands, Series E, MTN		4.125			09/14/22		994,432
	GBP		750,000	Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Netherlands, Series E, MTN		5.250			09/14/27		1,344,386
	EUR		500,000	Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Netherlands, Series G, MTN		4.125			01/14/20		794,036
	EUR		600,000	Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Netherlands, Series G, MTN		3.750			11/09/20		905,098
	EUR		650,000	Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Netherlands, Series G, MTN		4.000			01/11/22		1,032,787
	EUR		250,000	Heineken NV, Series E, MTN		2.125			08/04/20		354,789
	EUR		300,000	ING Bank NV, Series E, MTN		3.875			05/24/16		442,694
	EUR		200,000	ING Bank NV, Series E, MTN		1.875			02/27/18		286,515
	GBP		350,000	ING Bank NV, Series E, MTN		5.375			04/15/21		668,024
	EUR		700,000	ING Bank NV, Series E, MTN		4.500			02/21/22		1,152,779
	EUR		350,000	ING Groep NV, Series E, MTN		4.750			05/31/17		539,982
	EUR		250,000	Koninklijke KPN NV, Series G, MTN		4.750			01/17/17		380,694
	EUR		300,000	Koninklijke KPN NV, Series G, MTN		3.750			09/21/20		454,602
	GBP		250,000	Koninklijke KPN NV, Series G, MTN		5.750			09/17/29		459,376
	EUR		250,000	Shell International Finance BV, Series E, MTN		4.375			05/14/18		395,146
	EUR		250,000	Shell International Finance BV, Series E, MTN		2.500			03/24/26		352,352
											18,672,963
				Norway—1.1%
	NOK		1,000,000	DNB Bank ASA		4.750			04/06/17		179,318
	EUR		250,000	DNB Bank ASA, MTN		4.375			02/24/21		406,578
	EUR		275,000	DNB Bank ASA, Series E, MTN		3.875			06/29/20		436,028
	EUR		250,000	DNB Bank ASA, Series E, MTN		4.250			01/18/22		407,999
	EUR		250,000	Statoil ASA, Series E, MTN		5.625			03/11/21		437,346
	GBP		250,000	Statoil ASA, Series E, MTN		6.875			03/11/31		572,296
	EUR		50,000	Telenor ASA, Series E, MTN		4.875			05/29/17		77,716
											2,517,281
				Spain—6.4%
	EUR		250,000	Abbey National Treasury Services PLC/London, Series E, MTN		1.750			01/15/18		353,568
	EUR		250,000	Abertis Infraestructuras SA		4.625			10/14/16		377,034
	EUR		100,000	Abertis Infraestructuras SA		5.125			06/12/17		155,956
	EUR		150,000	BBVA Senior Finance SAU, Series G, MTN		3.875			08/06/15		215,735
	EUR		200,000	BBVA Senior Finance SAU, Series G, MTN		4.375			09/21/15		290,818
	EUR		200,000	BBVA Senior Finance SAU, Series G, MTN		3.250			03/21/16		288,979
	EUR		200,000	BBVA Senior Finance SAU, Series G, MTN		3.750			01/17/18		300,239
	EUR		300,000	CaixaBank SA, MTN		3.125			05/14/18		441,578
	EUR		300,000	CaixaBank SA, Series E, MTN		3.250			01/22/16		432,123
	EUR		200,000	CaixaBank SA, Series E, MTN		2.500			04/18/17		286,752
	EUR		150,000	Gas Natural Capital Markets SA, Series 5, MTN		4.375			11/02/16		225,521
	EUR		300,000	HIT Finance BV		5.750			03/09/18		485,045
	EUR		200,000	HIT Finance BV		4.875			10/27/21		331,306
	EUR		200,000	Iberdrola Finanzas SAU, Series E, MTN		4.125			03/23/20		316,107
	GBP		400,000	Iberdrola Finanzas SAU, Series E, MTN		7.375			01/29/24		845,775
	EUR		200,000	Iberdrola International BV, Series E, MTN		4.250			10/11/18		312,886
	EUR		200,000	Mapfre SA		5.125			11/16/15		295,085
	EUR		200,000	Repsol International Finance BV, Series E, MTN		4.875			02/19/19		320,505

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

62

PowerShares International Corporate Bond Portfolio (PICB) (continued)

April 30, 2014

(Unaudited)

Foreign Currency(a)		Principal Amount			Interest Rate			Maturity Date		Value
				Corporate Bonds (continued)
				Spain (continued)
	EUR		200,000	Repsol International Finance BV, Series E, MTN		2.625	%		05/28/20	$	289,313
	EUR		200,000	Repsol International Finance BV, Series E, MTN		3.625			10/07/21		304,360
	EUR		500,000	Santander International Debt SAU, Series E, MTN		4.625			03/21/16		739,731
	EUR		500,000	Santander International Debt SAU, Series E, MTN		4.000			03/27/17		747,426
	EUR		100,000	Santander International Debt SAU, Series E, MTN		4.125			10/04/17		151,637
	EUR		200,000	Santander International Debt SAU, Series E, MTN		4.000			01/24/20		312,090
	EUR		200,000	Telefonica Emisiones SAU, MTN		4.750			02/07/17		305,016
	EUR		300,000	Telefonica Emisiones SAU, Series E, MTN		4.797			02/21/18		470,890
	EUR		350,000	Telefonica Emisiones SAU, Series E, MTN		4.693			11/11/19		562,707
	EUR		200,000	Telefonica Emisiones SAU, Series E, MTN		4.710			01/20/20		320,974
	GBP		600,000	Telefonica Emisiones SAU, Series E, MTN		5.597			03/12/20		1,124,218
	GBP		700,000	Telefonica Emisiones SAU, Series E, MTN		5.289			12/09/22		1,290,148
	EUR		1,000,000	Telefonica Emisiones SAU, Series G, MTN		3.661			09/18/17		1,502,796
	EUR		300,000	Telefonica Emisiones SAU, Series G, MTN		3.987			01/23/23		465,039
											14,861,357
				Sweden—3.3%
	SEK		2,000,000	Electrolux AB, Series E, MTN		4.500			06/08/16		326,742
	GBP		550,000	Nordea Bank AB, Series E, MTN		2.125			11/13/19		905,207
	EUR		350,000	Nordea Bank AB, Series E, MTN		4.500			03/26/20		553,087
	EUR		200,000	Nordea Bank AB, Series E, MTN		4.000			06/29/20		316,663
	EUR		500,000	Nordea Bank AB, Series E, MTN		2.000			02/17/21		700,371
	EUR		200,000	Nordea Bank AB, Series E, MTN		3.250			07/05/22		304,755
	SEK		1,000,000	SBAB Bank AB, Series E, MTN		3.000			10/11/18		159,099
	EUR		200,000	Skandinaviska Enskilda Banken AB, Series E, MTN		2.000			02/19/21		281,768
	EUR		200,000	Skandinaviska Enskilda Banken AB, Series G, MTN		1.875			11/14/19		284,140
	EUR		300,000	Svenska Handelsbanken AB, Series E, MTN		2.250			06/14/18		435,285
	EUR		300,000	Svenska Handelsbanken AB, Series E, MTN		2.250			08/27/20		433,366
	EUR		400,000	Svenska Handelsbanken AB, Series E, MTN		4.375			10/20/21		655,064
	EUR		200,000	Svenska Handelsbanken AB, Series E, MTN		2.625			08/23/22		293,632
	EUR		200,000	Swedbank AB, Series E, MTN		3.375			02/09/17		296,552
	SEK		5,000,000	Swedish Match AB, Series E, MTN		4.340			07/12/15		794,444
	EUR		300,000	Vattenfall AB, Series E, MTN		6.250			03/17/21		532,991
	SEK		1,000,000	Volvo Treasury AB, Series E, MTN		5.000			12/08/16		165,985
	EUR		150,000	Volvo Treasury AB, Series E, MTN		5.000			05/31/17		231,990
											7,671,141
				Switzerland—3.4%
	EUR		200,000	ABB Finance BV, Series E, MTN		2.625			03/26/19		294,865
	EUR		525,000	Credit Suisse AG/London, Series E, MTN		3.875			01/25/17		786,834
	EUR		300,000	Credit Suisse AG/London, Series E, MTN		5.125			09/18/17		473,508
	EUR		300,000	Credit Suisse AG/London, Series E, MTN		4.750			08/05/19		488,255
	EUR		400,000	Glencore Finance Europe SA, Series E, MTN		5.250			03/22/17		615,362
	GBP		300,000	Glencore Finance Europe SA, Series E, MTN		6.500			02/27/19		579,068
	NOK		1,000,000	Nestle Holdings, Inc., Series E, MTN		2.500			07/10/17		170,089
	NOK		1,500,000	Nestle Holdings, Inc., Series E, MTN		2.250			11/20/17		252,936
	EUR		200,000	Novartis Finance SA, Series E, MTN		4.250			06/15/16		299,020
	EUR		250,000	Roche Finance Europe BV, Series E, MTN		2.000			06/25/18		363,418
	EUR		500,000	Roche Holdings, Inc., Series E, MTN		6.500			03/04/21		912,454
	CHF		700,000	Roche Kapitalmarkt AG		4.500			03/23/17		892,640
	CHF		700,000	Swisscom AG		3.250			09/14/18		892,295
	EUR		250,000	UBS AG/London, Series E, MTN		6.000			04/18/18		412,102
	GBP		200,000	Xstrata Canada Financial Corp., Series E, MTN		7.375			05/27/20		405,160
											7,838,006
				United Kingdom—19.3%
	GBP		200,000	ABP Finance PLC, Series E, MTN		6.250			12/14/26		400,912
	GBP		400,000	Bank of Scotland PLC		9.375			05/15/21		875,862

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

63

PowerShares International Corporate Bond Portfolio (PICB) (continued)

April 30, 2014

(Unaudited)

Foreign Currency(a)		Principal Amount			Interest Rate			Maturity Date		Value
				Corporate Bonds (continued)
				United Kingdom (continued)
	EUR		700,000	Barclays Bank PLC, Series E, MTN		6.000	%		01/14/21	$	1,155,023
	EUR		300,000	Barclays Bank PLC, Series E, MTN		2.125			02/24/21		424,560
	GBP		950,000	Barclays Bank PLC, Series E, MTN		10.000			05/21/21		2,125,915
	GBP		500,000	Barclays Bank PLC, Series E, MTN		5.750			08/17/21		974,434
	GBP		400,000	BAT International Finance PLC, Series E, MTN		7.250			03/12/24		869,104
	GBP		350,000	BAT International Finance PLC, Series E, MTN		4.000			09/04/26		594,884
	GBP		150,000	BAT International Finance PLC, Series E, MTN		6.000			11/24/34		310,791
	GBP		700,000	BG Energy Capital PLC, Series E, MTN		5.125			12/01/25		1,305,130
	GBP		400,000	BG Energy Capital PLC, Series E, MTN		5.000			11/04/36		726,483
	GBP		200,000	BP Capital Markets PLC, MTN		4.325			12/10/18		368,679
	EUR		150,000	BP Capital Markets PLC, Series E, MTN		3.830			10/06/17		228,258
	EUR		500,000	BP Capital Markets PLC, Series E, MTN		2.994			02/18/19		748,255
	EUR		300,000	BP Capital Markets PLC, Series E, MTN		2.177			09/28/21		426,335
	GBP		400,000	British Telecommunications PLC		5.750			12/07/28		777,863
	GBP		450,000	British Telecommunications PLC, Series E, MTN		6.625			06/23/17		864,164
	GBP		200,000	British Telecommunications PLC, Series E, MTN		6.375			06/23/37		421,196
	GBP		250,000	BUPA Finance PLC		5.000			04/25/23		430,098
	GBP		750,000	Centrica PLC, Series E, MTN		6.375			03/10/22		1,507,914
	GBP		200,000	Centrica PLC, Series E, MTN		4.375			03/13/29		339,136
	GBP		500,000	Centrica PLC, Series E, MTN		4.250			09/12/44		786,052
	GBP		250,000	Friends Life Group PLC		8.250			04/21/22		478,403
	GBP		500,000	GlaxoSmithKline Capital PLC, Series E, MTN		5.250			12/19/33		974,968
	GBP		250,000	GlaxoSmithKline Capital PLC, Series E, MTN		4.250			12/18/45		417,289
	GBP		400,000	Heathrow Funding Ltd., Series E, MTN		7.125			02/14/24		816,238
	GBP		1,000,000	Heathrow Funding Ltd., Series E, MTN		6.750			12/03/26		2,129,267
	CAD		700,000	HSBC Bank Canada, Series DPNT		2.901			01/13/17		655,306
	CAD		800,000	HSBC Bank Canada, Series DPNT		3.558			10/04/17		765,899
	CAD		500,000	HSBC Bank Canada, Series DPNT		2.938			01/14/20		461,780
	EUR		200,000	HSBC Bank PLC, Series E, MTN		3.750			11/30/16		299,502
	EUR		450,000	HSBC Bank PLC, Series E, MTN		3.875			10/24/18		699,111
	EUR		200,000	HSBC France SA, Series E, MTN		1.875			01/16/20		283,138
	GBP		250,000	HSBC Holdings PLC		6.750			09/11/28		507,611
	EUR		250,000	HSBC Holdings PLC, Series E, MTN		6.000			06/10/19		414,662
	GBP		650,000	HSBC Holdings PLC, Series E, MTN		6.500			05/20/24		1,350,329
	GBP		350,000	HSBC Holdings PLC, Series E, MTN		5.750			12/20/27		643,984
	GBP		300,000	Imperial Tobacco Finance PLC, Series E, MTN		7.750			06/24/19		619,391
	GBP		600,000	Imperial Tobacco Finance PLC, Series E, MTN		9.000			02/17/22		1,360,476
	GBP		450,000	Imperial Tobacco Finance PLC, Series E, MTN		5.500			09/28/26		848,888
	EUR		100,000	Lloyds Bank PLC, Series E, MTN		5.375			09/03/19		167,227
	EUR		300,000	Lloyds Bank PLC, Series E, MTN		6.500			03/24/20		502,473
	GBP		924,000	Lloyds Bank PLC, Series E, MTN		7.625			04/22/25		1,941,027
	GBP		200,000	Motability Operations Group PLC, Series E, MTN		5.250			09/28/16		368,096
	GBP		600,000	Nationwide Building Society, Series E, MTN		5.625			09/09/19		1,155,546
	GBP		300,000	Old Mutual PLC, Series E, MTN		8.000			06/03/21		570,635
	GBP		200,000	Rolls-Royce PLC		6.750			04/30/19		403,534
	GBP		550,000	Royal Bank of Scotland PLC (The), Series E, MTN		6.000			05/17/17		1,030,057
	GBP		250,000	Royal Bank of Scotland PLC (The), Series E, MTN		6.625			09/17/18		491,106
	EUR		250,000	Royal Bank of Scotland PLC (The), Series E, MTN		5.375			09/30/19		409,738
	EUR		300,000	Royal Bank of Scotland PLC (The), Series E, MTN		5.500			03/23/20		498,263
	GBP		200,000	Royal Bank of Scotland PLC (The), Series E, MTN		7.500			04/29/24		432,636
	GBP		400,000	Scottish Widows PLC		5.500			06/16/23		707,160
	GBP		150,000	Scottish Widows PLC		7.000			06/16/43		291,742
	GBP		200,000	Severn Trent Utilities Finance PLC, Series E, MTN		3.625			01/16/26		326,965
	GBP		100,000	SSE PLC, Series E, MTN		8.375			11/20/28		242,847
	GBP		600,000	Standard Chartered Bank, Series E, MTN		7.750			04/03/18		1,185,110
	EUR		150,000	Standard Chartered PLC		3.875			10/20/16		223,498
	EUR		400,000	Standard Chartered PLC, Series E, MTN		1.625			11/20/18		561,607

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

64

PowerShares International Corporate Bond Portfolio (PICB) (continued)

April 30, 2014

(Unaudited)

Foreign Currency(a)		Principal Amount			Interest Rate			Maturity Date		Value
				Corporate Bonds (continued)
				United Kingdom (continued)
	EUR		300,000	Standard Chartered PLC, Series E, MTN		4.125	%		01/18/19	$	467,804
	GBP		300,000	Tesco PLC, Series E, MTN		6.125			02/24/22		580,531
	GBP		200,000	Thames Water Utilities Cayman Finance Ltd., Series E, MTN		5.500			02/11/41		382,154
	GBP		300,000	Transport for London, Series E, MTN		2.250			08/09/22		478,306
	GBP		350,000	Transport for London, Series E, MTN		3.875			07/23/42		577,108
	GBP		200,000	Vodafone Group PLC, Series E, MTN		5.375			12/05/17		376,222
											44,758,682
				Total Corporate Bonds (Cost $213,574,759)							227,337,802
				Certificate of Deposit—0.2%
				Australia—0.2%
				Commonwealth Bank of Australia
	AUD		450,000	(Cost $420,201)		6.500			07/21/15		433,868
				Total Investments
				(Cost $213,994,960)—98.2%							227,771,670
				Other assets less liabilities—1.8%							4,177,479
				Net Assets—100.0%						$	231,949,149

Investment Abbreviations:

AUD—Australian Dollar

CAD—Canadian Dollar

CHF—Swiss Franc

DIP—Debt Issuance Program

DPNT—Deposit Notes

EUR—Euro

GBP—British Pound

JPY—Japanese Yen

MTN—Medium-Term Notes

NOK—Norwegian Krone

SEK—Swedish Krona

Notes to Schedule of Investments:

^(a) Foreign denominated security. Principal amount denominated in currency indicated.

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

65

Portfolio Composition

PowerShares Preferred Portfolio (PGX)

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Banks	43.7
Capital Markets	16.1
Insurance	12.4
Real Estate Investment Trusts	8.8
Diversified Financial Services	4.4
Electric Utilities	4.3
Consumer Finance	4.2
Diversified Telecommunication	2.5
Multi-Utilities	1.4
Wireless Telecommunication Services	0.8
Commercial Services & Supplies	0.7
Machinery	0.6
Media	0.2
Chemicals	0.1
Thrifts & Mortgage Finance	0.1
Money Market Fund Plus Other Assets Less Liabilities	(0.3)

Schedule of Investments^(a)

PowerShares Preferred Portfolio (PGX)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Preferred Stocks and Other Equity Interests—100.3%
		Banks—43.7%
	465,453	BAC Capital Trust VIII, 6.00%	$	11,906,288
	334,932	Bank of America Corp., 6.20%, Series D		8,353,204
	1,120,962	Bank of America Corp., 6.38%, Series 3		28,259,452
	628,090	Bank of America Corp., 6.63%, Series I		16,097,947
	30,481	Bank of America Corp., 7.25%, Series L		34,694,998
	3,251,082	Barclays Bank PLC, 8.13%, Series 5 (United Kingdom)		84,235,535
	1,419,704	BB&T Corp., 5.63%, Series E		33,150,088
	186,232	BB&T Corp., 5.85%		4,564,546
	1,949,236	Citigroup Capital XIII, 7.88%		53,136,173
	1,246,384	Citigroup, Inc., 6.88%, Series K		33,440,483
	423,539	Citigroup, Inc., 6.88%, Series L		10,724,008
	102,471	City National Corp., 5.50%, Series C		2,297,400
	48,602	City National Corp., 6.75%, Series D		1,343,845
	1,311,046	Countrywide Capital V, 7.00%		33,418,563
	92,211	Cullen/Frost Bankers, Inc., 5.38%		2,213,064
	284,020	Fifth Third Bancorp, 6.63%, Series I		7,543,571
	54,681	First Horizon National Corp., 6.20%, Series A		1,268,599

Number of Shares			Value
		Preferred Stocks and Other Equity Interests (continued)
		Banks (continued)
	210,963	First Niagara Financial Group, Inc., 8.63%, Series B	$	6,124,256
	121,590	First Republic Bank, 5.50%		2,723,616
	110,135	First Republic Bank, 6.20%, Series B		2,721,436
	181,003	First Republic Bank, 6.70%, Series A		4,640,917
	97,756	First Republic Bank, 7.00%		2,553,289
	46,270	FirstMerit Corp., 5.88%, Series A		1,112,794
	2,400,844	HSBC Holdings PLC, 8.00%, Series 2 (United Kingdom)		64,822,788
	2,197,167	HSBC Holdings PLC, 8.13% (United Kingdom)		57,499,860
	701,257	JPMorgan Chase & Co., 5.45%, Series P		15,862,433
	522,907	JPMorgan Chase & Co., 5.50%, Series O		11,864,760
	478,368	JPMorgan Chase & Co., 6.70%, Series T		12,131,412
	1,055,177	JPMorgan Chase Capital XXIX, 6.70%		27,519,016
	544,797	Lloyds Banking Group PLC, 7.75% (United Kingdom)		14,655,039
	1,109,327	PNC Financial Services Group, Inc. (The), 6.13%, Series P		29,796,523

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

66

PowerShares Preferred Portfolio (PGX) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Preferred Stocks and Other Equity Interests (continued)
		Banks (continued)
	423,699	RBS Capital Funding Trust VII, 6.08%, Series G (United Kingdom)	$	9,740,840
	321,690	Regions Financial Corp., 6.38%, Series A		7,739,861
	300,000	Regions Financial Corp., 6.38%, Series B(b)		7,455,000
	940,761	Royal Bank of Scotland Group PLC, 5.75%, Series L (United Kingdom)		20,922,525
	834,209	Royal Bank of Scotland Group PLC, 6.35%, Series N (United Kingdom)		19,153,439
	456,027	Royal Bank of Scotland Group PLC, 6.40%, Series M (United Kingdom)		10,575,266
	826,392	Royal Bank of Scotland Group PLC, 6.60%, Series S (United Kingdom)		19,792,088
	836,989	Royal Bank of Scotland Group PLC, 6.75%, Series Q (United Kingdom)		20,305,353
	911,594	Royal Bank of Scotland Group PLC, 7.25%, Series T (United Kingdom)		23,145,372
	605,655	Santander Finance Preferred SAU, 10.50%, Series 10 (Spain)		15,856,048
	283,778	SunTrust Banks, Inc., 5.88%, Series E		6,560,947
	65,903	TCF Financial Corp., 6.45%, Series B		1,634,394
	85,139	TCF Financial Corp., 7.50%		2,240,007
	155,949	Texas Capital Bancshares, Inc., 6.50%, Series A		3,781,763
	1,207,514	U.S. Bancorp, 6.00%, Series G		33,448,138
	344,909	U.S. Bancorp, 6.50%, Series F		9,950,625
	69,444	Webster Financial Corp., 6.40%, Series E		1,670,128
	320,961	Wells Fargo & Co., 5.13%, Series O		7,263,347
	317,582	Wells Fargo & Co., 5.20%		7,161,474
	880,700	Wells Fargo & Co., 5.85%		22,325,745
	177,498	Wells Fargo & Co., 6.63%		4,907,820
	2,109,433	Wells Fargo & Co., 8.00%, Series J		62,291,557
	198,775	Zions Bancorp, 5.75%, Series H		4,671,213
	93,893	Zions Bancorp, 7.90%, Series F		2,629,943
				945,898,796
		Capital Markets—16.1%
	207,460	Affiliated Managers Group, Inc., 6.38%		5,151,232
	117,592	Ameriprise Financial, Inc., 7.75%		3,011,531
	188,513	Apollo Investment Corp., 6.88%		4,586,521
	440,471	Ares Capital Corp., 7.00%		11,505,103
	414,809	Bank of New York Mellon Corp. (The), 5.20%		9,739,715
	59,333	BGC Partners, Inc., 8.13%		1,606,144
	301,698	Charles Schwab Corp. (The), 6.00%, Series B		7,645,027
	938,759	Deutsche Bank Capital Funding Trust IX, 6.63% (Germany)		24,116,719
	480,542	Deutsche Bank Contingent Capital Trust III, 7.60% (Germany)		13,214,905
	2,043,494	Deutsche Bank Contingent Capital Trust V, 8.05% (Germany)		57,565,226
	745,593	Goldman Sachs Group, Inc. (The), 5.50%, Series J		17,618,363
	542,619	Goldman Sachs Group, Inc. (The), 5.95%		12,572,482
	637,592	Goldman Sachs Group, Inc. (The), 6.13%		16,411,618
	400,832	Goldman Sachs Group, Inc. (The), 6.20%, Series B		9,888,525

Number of Shares			Value
		Preferred Stocks and Other Equity Interests (continued)
		Capital Markets (continued)
	365,000	Goldman Sachs Group, Inc. (The), 6.38%, Series K(b)	$	9,227,200
	331,918	Goldman Sachs Group, Inc. (The), 6.50%		8,809,104
	270,000	Morgan Stanley, 6.63%, Series G(b)		6,750,000
	537,165	Morgan Stanley, 6.88%		14,283,217
	752,971	Morgan Stanley, 7.13%, Series E		20,556,108
	2,505,574	Morgan Stanley Capital Trust VII, 6.60%		63,315,855
	214,751	Raymond James Financial, Inc., 6.90%		5,641,509
	62,137	Solar Capital Ltd., 6.75%		1,482,589
	319,603	State Street Corp., 5.25%, Series C		7,526,651
	432,408	State Street Corp., 5.90%, Series D(b)		11,225,312
	189,423	Stifel Financial Corp., 6.70%		4,985,613
				348,436,269
		Chemicals—0.1%
	28,329	E.I. du Pont de Nemours & Co., 4.50%, Series B		2,588,704
		Commercial Services & Supplies—0.7%
	249,279	NuStar Logistics LP, 7.63%		6,633,314
	56,553	Pitney Bowes, Inc., 5.25%		1,466,419
	268,782	Pitney Bowes, Inc., 6.70%		7,063,591
				15,163,324
		Consumer Finance—4.2%
	417,557	Ally Financial, Inc., 8.50%, Series A		11,290,741
	557,883	Capital One Financial Corp., 6.00%, Series B		13,394,771
	376,571	Discover Financial Services, 6.50%, Series B		9,489,589
	1,783,100	GMAC Capital Trust I, 8.13%, Series 2		49,017,419
	297,087	SLM Corp., 6.00%		6,660,691
				89,853,211
		Diversified Financial Services—4.4%
	63,303	GAMCO Global Gold Natural Resources & Income Trust, 5.00%		1,364,180
	558,482	General Electric Capital Corp., 4.70%		12,727,805
	968,608	General Electric Capital Corp., 4.88%		23,285,185
	201,954	ING Groep NV, 6.38% (Netherlands)		5,127,612
	1,591,173	ING Groep NV, 7.38% (Netherlands)		41,115,910
	264,282	KKR Financial Holdings LLC, 7.38%, Series A		6,699,549
	208,302	KKR Financial Holdings LLC, 8.38%		5,869,950
				96,190,191
		Diversified Telecommunication—2.5%
	644,785	Qwest Corp., 6.13%		14,804,264
	490,632	Qwest Corp., 7.00%		12,764,704
	389,626	Qwest Corp., 7.38%		10,406,910
	277,154	Qwest Corp., 7.50%		7,394,469
	312,584	Verizon Communications, Inc., 5.90%		7,836,481
				53,206,828
		Electric Utilities—4.3%
	160,596	Alabama Power Co., 6.45%		4,246,158
	145,928	BGE Capital Trust II, 6.20%		3,675,926
	315,204	Duke Energy Corp., 5.13%		7,464,031
	30,146	Entergy Arkansas, Inc., 4.90%		693,660
	199,230	Entergy Arkansas, Inc., 5.75%		5,110,250

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

67

PowerShares Preferred Portfolio (PGX) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Preferred Stocks and Other Equity Interests (continued)
		Electric Utilities (continued)
	134,984	Entergy Louisiana LLC, 5.25%	$	3,308,458
	151,548	Entergy Mississippi, Inc., 6.00%		3,826,587
	282,479	Entergy Texas, Inc., 7.88%		7,206,039
	126,550	Interstate Power & Light Co., 5.10%, Series D		3,054,917
	488,270	NextEra Energy Capital Holdings, Inc., 5.00%		10,453,861
	376,594	NextEra Energy Capital Holdings, Inc., 5.13%, Series I		8,394,280
	181,724	NextEra Energy Capital Holdings, Inc., 5.63%, Series H		4,392,269
	263,427	NextEra Energy Capital Holdings, Inc., 5.70%, Series G		6,485,573
	306,771	PPL Capital Funding, Inc., 5.90%, Series B		7,393,181
	596,730	SCE Trust I, 5.63%		14,124,599
	109,356	SCE Trust III, 5.75%(b)		2,822,478
				92,652,267
		Insurance—12.4%
	1,425,825	Aegon NV, 6.38% (Netherlands)		36,886,093
	406,826	Aegon NV, 8.00% (Netherlands)		11,602,677
	326,335	Aflac, Inc., 5.50%		7,903,834
	302,433	Allstate Corp. (The), 5.10%		7,597,117
	201,962	Allstate Corp. (The), 5.63%		4,921,814
	452,416	Allstate Corp. (The), 6.63%, Series E(b)		11,676,857
	231,720	Allstate Corp. (The), 6.75%, Series C		6,020,086
	301,992	American Financial Group, Inc., 6.38%		7,924,270
	208,126	Arch Capital Group Ltd., 6.75%, Series C		5,346,757
	80,330	Argo Group US, Inc., 6.50%		1,899,001
	148,796	Aspen Insurance Holdings Ltd., 5.95%		3,755,611
	193,077	Aspen Insurance Holdings Ltd., 7.25%		5,120,402
	257,024	Assured Guaranty Municipal Holdings, Inc., 6.25%		6,425,600
	255,767	Aviva PLC, 8.25% (United Kingdom)		7,107,765
	129,355	Axis Capital Holdings Ltd., 5.50%, Series D		2,797,949
	285,813	Axis Capital Holdings Ltd., 6.88%, Series C		7,382,550
	101,967	Endurance Specialty Holdings Ltd., 7.50%, Series B		2,682,752
	158,557	Endurance Specialty Holdings Ltd., 7.75%, Series A		4,236,643
	103,079	Hanover Insurance Group, Inc. (The), 6.35%		2,460,496
	366,985	Hartford Financial Services Group, Inc., 7.88%		10,976,521
	95,320	Kemper Corp., 7.38%		2,453,537
	228,128	Maiden Holdings Ltd., 8.25%, Series A		5,940,453
	106,844	Maiden Holdings North America Ltd., 7.75%		2,737,343
	989,429	MetLife, Inc., 6.50%, Series B		25,151,285
	87,563	Montpelier Re Holdings Ltd., 8.88%, Series A (Bermuda)		2,356,320
	264,142	PartnerRe Ltd., 5.88%, Series F		6,217,903
	229,151	PartnerRe Ltd., 7.25%, Series E		6,189,368
	179,048	Principal Financial Group, Inc., 6.52%, Series B		4,583,629
	348,347	Protective Life Corp., 6.25%		8,642,489
	454,276	Prudential Financial, Inc., 5.70%		11,125,219

Number of Shares			Value
		Preferred Stocks and Other Equity Interests (continued)
		Insurance (continued)
	336,342	Prudential Financial, Inc., 5.75%	$	8,267,286
	330,857	Prudential PLC, 6.50% (United Kingdom)		8,529,493
	244,826	Reinsurance Group of America, Inc., 6.20%		6,634,785
	248,955	RenaissanceRe Holdings Ltd., 5.38%, Series E		5,427,219
	117,948	Selective Insurance Group, Inc., 5.88%		2,800,086
	62,148	Torchmark Corp., 5.88%		1,520,140
	222,959	WR Berkley Corp., 5.63%		5,027,725
				268,329,075
		Machinery—0.6%
	486,498	Stanley Black & Decker, Inc., 5.75%		12,079,745
		Media—0.2%
	176,049	Comcast Corp., 5.00%		4,371,297
		Multi-Utilities—1.4%
	425,210	Dominion Resources, Inc., 8.38%, Series A		10,842,855
	309,746	DTE Energy Co., 6.50%		8,010,032
	254,685	Integrys Energy Group, Inc., 6.00%		6,430,796
	73,239	Pacific Gas & Electric Co., 6.00%, Series A		2,116,607
	106,173	SCANA Corp., 7.70%		2,780,671
				30,180,961
		Real Estate Investment Trusts—8.8%
	69,410	Alexandria Real Estate Equities, Inc., 6.45%, Series E		1,753,991
	126,458	Boston Properties, Inc., 5.25%		2,813,690
	256,449	CommonWealth REIT, 5.75%		5,446,977
	222,192	DDR Corp., 6.50%, Series J		5,397,044
	186,821	Digital Realty Trust, Inc., 5.88%, Series G		4,117,535
	267,529	Digital Realty Trust, Inc., 6.63%, Series F		6,514,331
	223,439	Digital Realty Trust, Inc., 7.38%, Series H		5,675,351
	76,021	EPR Properties, 6.63%, Series F		1,784,213
	140,994	Glimcher Realty Trust, 6.88%		3,482,552
	177,885	Health Care REIT, Inc., 6.50%, Series J		4,505,827
	177,824	Hospitality Properties Trust, 7.13%, Series D		4,587,859
	56,973	Kilroy Realty Corp., 6.38%, Series H		1,360,515
	51,140	Kilroy Realty Corp., 6.88%, Series G		1,291,285
	618,879	Kimco Realty Corp., 6.00%, Series I		14,970,683
	200,982	National Retail Properties, Inc., 5.70%, Series E		4,520,085
	163,560	National Retail Properties, Inc., 6.63%, Series D		4,102,085
	120,240	PS Business Parks, Inc., 5.70%		2,771,532
	255,269	PS Business Parks, Inc., 6.00%, Series T		6,111,140
	177,829	PS Business Parks, Inc., 6.45%, Series S		4,563,092
	154,910	Public Storage, 5.20%, Series W		3,408,020
	312,405	Public Storage, 6.35%, Series R		7,953,831
	130,153	Public Storage, 6.38%, Series Y		3,312,394
	1,511,727	Public Storage, 6.50%, Series Q		39,471,192
	195,174	Realty Income Corp., 6.63%, Series F		5,029,634
	210,799	Realty Income Corp., 6.75%, Series E		5,350,079
	148,279	Regency Centers Corp., 6.63%, Series 6		3,745,527
	229,030	Senior Housing Properties Trust, 5.63%		5,189,820
	150,342	SL Green Realty Corp., 6.50%, Series I		3,722,468
	165,060	Ventas Realty LP, 5.45%		4,037,368
	422,423	Vornado Realty LP, 7.88%		10,919,634

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

68

PowerShares Preferred Portfolio (PGX) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Preferred Stocks and Other Equity Interests (continued)
		Real Estate Investment Trusts (continued)
	145,956	Vornado Realty Trust, 5.70%, Series K	$	3,453,319
	336,636	Vornado Realty Trust, 6.63%, Series I		8,513,524
				189,876,597
		Thrifts & Mortgage Finance—0.1%
	85,215	Astoria Financial Corp., 6.50%, Series C		2,077,542
		Wireless Telecommunication Services—0.8%
	185,640	Telephone & Data Systems, Inc., 5.88%		4,056,234
	348,319	Telephone & Data Systems, Inc., 6.63%		8,662,693
	223,759	United States Cellular Corp., 6.95%		5,676,767
				18,395,694
		Total Preferred Stocks and Other Equity Interests (Cost $2,144,420,438)		2,169,300,501
		Money Market Fund—0.0%
	881,519	Invesco Premier Portfolio—Institutional Class(c) (Cost $881,519)		881,519
		Total Investments (Cost $2,145,301,957)—100.3%		2,170,182,020
		Other assets less liabilities—(0.3)%		(7,021,201	)
		Net Assets—100.0%	$	2,163,160,819

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.

This Fund has holdings greater than 10% of net assets in the following country:

United Kingdom 16.7 % 

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

69

Portfolio Composition

PowerShares Variable Rate Preferred Portfolio (VRP)

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Banks	48.2
Insurance	20.3
Capital Markets	10.8
Consumer Finance	6.6
Diversified Financial Services	4.5
Pipelines	4.0
Miscellaneous Manufacturing	1.5
Agriculture	0.7
Hand/Machine Tools	0.7
Commercial Services & Supplies	0.7
Multi-Utilities	0.7
Electric Utilities	0.5
Money Market Fund Plus Other Assets Less Liabilities	0.8

Schedule of Investments

PowerShares Variable Rate Preferred Portfolio (VRP)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Preferred Stocks(a)—55.1%
		Agriculture—0.7%
	2,044	CHS, Inc., 7.10%, Series 2(b)	$	56,455
		Banks—30.2%
	1,455	Bank of America Corp., 3.00%, Series H		29,027
	1,023	Bank of America Corp., 4.00%, Series 4		22,731
	2,052	Bank of America Corp., 4.00%, Series 5		44,159
	1,544	Bank of America Corp., 4.00%, Series E		34,555
	10,931	Citigroup Capital XIII, 7.88%		297,979
	7,276	Citigroup, Inc., 6.88%, Series K		195,215
	4,624	Citigroup, Inc., 7.13%, Series J		125,542
	487	City National Corp., 6.75%, Series D		13,466
	2,190	Fifth Third Bancorp, 6.63%, Series I		58,166
	1,703	First Niagara Financial Group, Inc., 8.63%, Series B		49,438
	540	FNB Corp., 7.25%		14,439
	2,519	HSBC USA, Inc., 3.50%, Series F (United Kingdom)		56,224
	1,819	HSBC USA, Inc., 4.00%, Series G (United Kingdom)		41,200
	730	HSBC USA, Inc., 4.50%, Series D (United Kingdom)		18,345
	5,110	Merrill Lynch Capital Trust I, 6.45%, Series K		129,794
	4,624	Merrill Lynch Capital Trust II, 6.45%		117,542
	7,301	PNC Financial Services Group, Inc. (The), 6.13%, Series P		196,105
	1,024	Santander Finance Preferred SAU, 4.00%, Series 6 (Spain)		20,685
	840	SunTrust Banks, Inc., 4.00%		18,001
	633	Synovus Financial Corp., 7.88%, Series C		17,692
	4,867	U.S. Bancorp, 3.50%, Series B		108,291

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

70

PowerShares Variable Rate Preferred Portfolio (VRP) (continued)

April 30, 2014

(Unaudited)

Number of Shares								Value
		Preferred Stocks(a) (continued)
		Bank (continued)
	5,281	U.S. Bancorp, 6.00%, Series G						$	146,284
	5,354	U.S. Bancorp, 6.50%, Series F							154,463
	8,396	Wells Fargo & Co., 5.85%							212,839
	4,088	Wells Fargo & Co., 6.63%							113,033
	836	Zions Bancorp, 6.30%, Series G							21,092
									2,256,307
		Capital Markets—10.7%
	3,650	Goldman Sachs Group, Inc. (The), 3.75%, Series A							72,453
	973	Goldman Sachs Group, Inc. (The), 4.00%, Series C							20,179
	6,571	Goldman Sachs Group, Inc. (The), 4.00%, Series D							133,523
	4,867	Goldman Sachs Group, Inc. (The), 5.50%, Series J							115,007
	5,354	Morgan Stanley, 4.00%, Series A							109,489
	4,137	Morgan Stanley, 6.88%							110,003
	4,198	Morgan Stanley, 7.13%, Series E							114,605
	3,650	State Street Corp., 5.90%, Series D(b)							94,754
	1,460	UBS Preferred Funding Trust IV, 0.85%, Series D (Switzerland)							26,660
									796,673
		Commercial Services & Supplies—0.7%
	1,959	NuStar Logistics LP, 7.63%							52,129
		Consumer Finance—6.6%
	4,973	Ally Financial, Inc., 8.50%, Series A							134,470
	12,980	GMAC Capital Trust I, 8.13%, Series 2							356,820
									491,290
		Electric Utilities—0.5%
	1,338	SCE Trust III, 5.75%(b)							34,534
		Insurance—5.1%
	1,217	Aegon NV, 4.00%, Series 1 (Netherlands)							27,930
	2,434	Allstate Corp. (The), 5.10%							61,142
	1,338	Aspen Insurance Holdings Ltd., 5.95%							33,771
	648	Aspen Insurance Holdings Ltd., 7.40%							17,029
	2,920	Hartford Financial Services Group, Inc., 7.88%							87,337
	2,920	MetLife, Inc., 4.00%, Series A							70,576
	1,217	Principal Financial Group, Inc., 6.52%, Series B							31,155
	1,947	Reinsurance Group of America, Inc., 6.20%							52,764
									381,704
		Multi-Utilities—0.6%
	1,947	Integrys Energy Group, Inc., 6.00%							49,162
		Total Preferred Stocks (Cost $4,108,301)							4,118,254
Principal Amount			Interest Rate			Maturity Date
		Corporate Bonds—44.1%
		Banks—18.1%
$	100,000	BAC Capital Trust XIV, Series G(c)		4.000	%		09/29/49		78,500
	300,000	Goldman Sachs Capital II(c)		4.000			12/29/49		232,875
	100,000	JPMorgan Chase Capital XXI, Series U(c)		1.173			02/02/37		82,500
	150,000	JPMorgan Chase Capital XXIII(c)		1.236			05/15/47		117,750
	100,000	Mellon Capital IV, Series 1(c)		4.000			06/29/49		85,000
	150,000	RBS Capital Trust I, Series O (United Kingdom)(c)		2.099			12/29/49		145,875
	100,000	RBS Capital Trust III (United Kingdom)(c)		5.512			09/29/49		99,250
	100,000	State Street Capital Trust IV		1.233			06/15/37		83,125
	125,000	UBS Preferred Funding Trust V, Series 1 (Switzerland)(c)		6.243			05/29/49		132,813
	300,000	Wachovia Capital Trust III		5.570			03/29/49		291,000
									1,348,688

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

71

PowerShares Variable Rate Preferred Portfolio (VRP) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Corporate Bonds (continued)
		Diversified Financial Services—4.5%
$	100,000	American Express Co.		6.800	%		09/01/66	$	110,750
	200,000	General Electric Capital Corp., Series G, MTN		6.375			11/15/67		223,250
									334,000
		Hand/Machine Tools—0.7%
	50,000	Stanley Black & Decker, Inc.		5.750			12/15/53		54,375
		Insurance—15.3%
	100,000	Allstate Corp. (The)		5.750			08/15/53		107,250
	125,000	Chubb Corp. (The)		6.375			03/29/67		139,531
	100,000	Genworth Holdings, Inc.		6.150			11/15/66		94,000
	100,000	Hartford Financial Services Group, Inc. (The)		8.125			06/15/38		118,375
	150,000	Lincoln National Corp.		7.000			05/17/66		156,000
	200,000	Prudential Financial, Inc.		8.875			06/15/38		245,500
	175,000	Prudential Financial, Inc.		5.625			06/15/43		181,344
	100,000	Voya Financial, Inc.		5.650			05/15/53		100,500
									1,142,500
		Miscellaneous Manufacturing—1.5%
	100,000	GE Capital Trust I		6.375			11/15/67		111,125
		Pipelines—4.0%
	150,000	Enterprise Products Operating LLC, Series B		7.034			01/15/68		171,187
	125,000	Transcanada Pipelines Ltd. (Canada)		6.350			05/15/67		130,313
									301,500
		Total Corporate Bonds (Cost $3,299,093)							3,292,188
Number of Shares
		Money Market Fund—0.0%
	25	Invesco Premier Portfolio—Institutional Class(d) (Cost $25)							25
		Total Investments (Cost $7,407,419)—99.2%							7,410,467
		Other assets less liabilities—0.8%							56,241
		Net Assets—100.0%						$	7,466,708

Investment Abbreviations:

MTN—Medium-Term Note

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) Variable rate coupon. Stated interest rate was in effect at April 30, 2014.

^(d) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

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

72

Portfolio Composition

PowerShares VRDO Tax-Free Weekly Portfolio (PVI)

State Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
California	19.8
Colorado	8.6
Florida	14.5
Kentucky	3.1
Michigan	4.3
Missouri	4.6
New York	12.6
Pennsylvania	9.8
Tennessee	8.5
Texas	5.0
Other States Less Than 3% Each	5.3
Other Assets Less Liabilities	3.9

Schedule of Investments

PowerShares VRDO Tax-Free Weekly Portfolio (PVI)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate(a)			Maturity Date		Value
		Municipal Bonds(b)—96.1%
		Ad Valorem Property Tax—5.6%
$	3,000,000	City of New York (Remarketed) Sub-Ser. 94-B9		0.100	%		08/15/23	$	3,000,000
	200,000	City of New York (Remarketed) Sub-Ser. 96-J3		0.100			02/15/16		200,000
	5,000,000	Luzerne County Pennsylvania Ser. 06A AGM		0.650			11/15/26		5,000,000
	400,000	Shelby County Tennessee Ser. 06C		0.110			12/01/31		400,000
									8,600,000
		College Revenue—9.2%
	2,800,000	Rhode Island State Health & Educational Building Corp. Rev. (Catholic School Pool Program) Ser. 05A		0.300			04/01/35		2,800,000
	6,500,000	University of Michigan Ser. 02		0.080			04/01/32		6,500,000
	4,800,000	WACO Texas Educational Finance Corp. Rev. Ref. (Baylor University) Ser. 08A		0.210			02/01/32		4,800,000
									14,100,000
		Electric Power Revenue—15.0%
	7,270,000	JEA Florida Electric System Rev. Ser. Three 08C-2		0.120			10/01/34		7,270,000
	8,800,000	Sevier County Tennessee Public Building Auth. (Local Government Improvement Program) Ser. 10V-D-1		0.110			06/01/26		8,800,000
	7,000,000	Southern California Public Power Auth. Subordinate Ref. (Southern Transmission) Ser. 00A AGM		0.110			07/01/23		7,000,000
									23,070,000
		Highway Tolls Revenue—11.5%
	3,825,000	Bay Area California Auth. Toll Bridge Rev. Ser. 07		0.080			04/01/47		3,825,000
	1,800,000	Illinois State Toll Highway Auth. Rev. Ref. Ser. 98B AGM		0.340			01/01/16		1,800,000
	1,400,000	Illinois State Toll Highway Auth. Rev. Ref. Ser. 98B AGM		0.340			01/01/17		1,400,000
	3,000,000	Texas Transportation Commission Rev.(First Tier) Ser. 06B		0.300			04/01/26		3,000,000
	7,655,000	Triborough New York State Bridge & Tunnel Auth. Rev. Ref. (MTA Bridges Tunnels) Ser. 07AB AGM		0.230			01/01/19		7,655,000
									17,680,000

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

73

PowerShares VRDO Tax-Free Weekly Portfolio (PVI) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate(a)			Maturity Date		Value
		Municipal Bonds(b) (continued)
		Hospital Revenue—18.6%
$	5,400,000	ABAG Finance Auth. For Nonprofit Corporations (Sharp HealthCare) Ser. 09A		0.100	%		08/01/24	$	5,400,000
	7,000,000	California State Statewide Community Development Auth. Ser. 03D		0.100			05/01/33		7,000,000
	4,450,000	Colorado State Health Facilities Auth. Rev. (Sisters Charity Health System) Ser. 03B		0.120			12/01/38		4,450,000
	7,000,000	Missouri State Health & Educational Facilities Auth. (SSM Healthcare D4-Remarketed) Ser. 05		0.140			06/01/33		7,000,000
	4,725,000	Russell Kentucky Rev. (Bon Secours Health System Obligated Group) Ser. 02-B AGM		0.120			11/01/26		4,725,000
									28,575,000
		Industrial Revenue—5.5%
	1,800,000	Mississippi Business Financing Corp. Rev. (DDR Gulfport Promenade LLC Project) Ser. 07		0.500			12/01/37		1,800,000
	6,655,000	Rensselaer County New York Industrial Development Agency Civic Facility Rev. (Rensselaer Polytech Institute Project) Ser. 97-A		0.080			02/01/22		6,655,000
									8,455,000
		Lease Revenue—5.0%
	4,800,000	Orange County Florida School Board COP Ser. 08C		0.110			08/01/25		4,800,000
	2,800,000	San Francisco California City & County Finance Corp. Lease Rev. Ref. (Moscone Center) Ser. 08-1		0.110			04/01/30		2,800,000
									7,600,000
		Miscellaneous Revenue—10.5%
	400,000	Baltimore Maryland Industrial Development Auth. (Baltimore Capital Acquisition) Ser. 86		0.160			08/01/16		400,000
	2,885,000	Clarksville Tennessee Public Building Auth. Rev. (Pooled Financing Tennessee Municipal Bond Fund) Ser. 99		0.130			06/01/29		2,885,000
	10,000,000	Delaware Valley Pennsylvania Regional Finance Auth. Local Government Rev. Ser. 85C		0.300			12/01/20		10,000,000
	900,000	Montgomery County Tennessee Public Building Auth. Pooled Funding Government Obligation (Tennessee County Loan Pool) Ser. 95		0.130			03/01/25		900,000
	2,000,000	New York State Urban Development Corp. Rev. Ref. (CVS Contract) Ser. 08A-1		0.100			01/01/30		2,000,000
									16,185,000
		Multiple Utility Revenue—5.7%
	8,765,000	Colorado Springs Colorado Utilities Rev. (Sub-Lien Improvement) Ser. 06B		0.320			11/01/36		8,765,000
		Sales Tax Revenue—6.6%
	10,095,000	Florida State Department of Environmental Protection Preservation Rev. (Everglades Restoration) Ser. 07A AGC		0.200			07/01/27		10,095,000
		Water Revenue—2.9%
	4,500,000	Metropolitan Water District Southern California Waterworks Rev. Ref. Ser. 08A-2		0.070			07/01/37		4,500,000
		Total Investments (Cost $147,625,000)(c)—96.1%							147,625,000
		Other assets less liabilities—3.9%							6,004,584
		Net Assets—100.0%						$	153,629,584

Investment Abbreviations:

AGC—Assured Guaranty Corp.

AGM—Assured Guaranty Municipal Corp.

Auth.—Authority

COP—Certificate of Participation

Ref.—Refunding Bonds

Rev.—Revenue

Ser.—Series

Notes to Schedule of Investments:

^(a)  Variable rate coupon. Stated interest rate was in effect at April 30, 2014.

^(b)  Demand Securities payable upon demand by the Fund for an amount equal to par value plus accrued interest at specified time intervals.

^(c)  This table, as of April 30, 2014, provides a listing of those entities that have either guaranteed, backed or otherwise enhanced the credit quality of more than 5% of the value of securities held in the portfolio. In instances where the entity has guaranteed, backed or otherwise enhanced the credit quality of a security, it is not primarily responsible for the borrower’s obligations but may be called upon to satisfy the borrower’s obligations.

Entities	Percentage of Total Investments
Assured Guaranty Municipal Corp.		18.7	%
Assured Guaranty Corp.		6.8

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

74

(This Page Intentionally Left Blank)

Statements of Assets and Liabilities

April 30, 2014

(Unaudited)

	PowerShares 1-30  Laddered Treasury Portfolio (PLW)			PowerShares Build America Bond  Portfolio (BAB)			PowerShares CEF  Income Composite Portfolio (PCEF)			PowerShares Chinese Yuan Dim Sum Bond Portfolio (DSUM)			PowerShares Emerging Markets Sovereign Debt Portfolio (PCY)			PowerShares Fundamental Emerging Markets Local Debt  Portfolio (PFEM)			PowerShares Fundamental High Yield® Corporate Bond Portfolio (PHB)
Assets:
Unaffiliated investments, at value	$	249,589,253		$	623,561,361		$	568,022,739		$	182,559,733		$	1,966,022,371		$	4,230,392		$	642,022,243
Affiliated investments, at value		631,518			29,242,308			9,200,062			1,147,533			9,849,108			—			1,315,533
Total investments, at value		250,220,771			652,803,669			577,222,801			183,707,266			1,975,871,479			4,230,392			643,337,776
Cash		—			—			—			—			—			—			—
Cash segregated as collateral		—			—			—			—			1,642,149			—			—
Foreign currencies, at value		—			—			—			113,180			—			12,947			—
Receivables:
Dividends and interest		2,331,313			9,666,999			720,576			2,032,226			26,150,915			88,683			9,475,911
Investments sold		—			—			—			—			—			—			2,482,900
Foreign tax reclaims		—			—			—			—			—			896			—
Shares sold		—			1,452,910			2,500,895			—			1,576,201			—			—
Total Assets		252,552,084			663,923,578			580,444,272			185,852,672			2,005,240,744			4,332,918			655,296,587
Liabilities:
Due to custodian		528,354			201,991			3,747,893			531,523			7,731,058			16,893			2,400,292
Payables:
Collateral upon receipt of securities in-kind		—			—			—			—			1,642,149			—			—
Investments purchased		—			—			2,514,971			—			1,576,202			—			—
Accrued unitary management fees		51,442			146,064			225,847			71,469			804,051			1,772			265,989
Accrued expenses		—			—			—			583			—			5,061			—
Total Liabilities		579,796			348,055			6,488,711			603,575			11,753,460			23,726			2,666,281
Net Assets	$	251,972,288		$	663,575,523		$	573,955,561		$	185,249,097		$	1,993,487,284		$	4,309,192		$	652,630,306
Net Assets Consist of:
Shares of beneficial interest	$	247,659,749		$	615,513,565		$	562,291,548		$	191,033,125		$	2,113,490,731		$	5,186,560		$	637,003,762
Undistributed net investment income (loss)		(83,567	)		(55,618	)		(3,184,195	)		(5,655	)		(367,723	)		(2,783	)		(189,390	)
Undistributed net realized gain (loss)		(28,892	)		(285,087	)		(6,202,378	)		(709,351	)		(18,844,771	)		(196,243	)		(3,088,943	)
Net unrealized appreciation (depreciation)		4,424,998			48,402,663			21,050,586			(5,069,022	)		(100,790,953	)		(678,342	)		18,904,877
Net Assets	$	251,972,288		$	663,575,523		$	573,955,561		$	185,249,097		$	1,993,487,284		$	4,309,192		$	652,630,306
Shares outstanding (unlimited amount authorized, $0.01 par value)		8,200,000			22,950,000			22,950,000			7,550,001			70,600,000			200,001			33,500,000
Net asset value	$	30.73		$	28.91		$	25.01		$	24.54		$	28.24		$	21.55		$	19.48
Market price	$	30.73		$	29.01		$	25.00		$	24.36		$	28.26		$	21.59		$	19.50
Unaffiliated investments, at cost	$	245,164,255		$	575,158,698		$	546,493,127		$	187,587,215		$	2,066,813,324		$	4,898,375		$	623,117,366
Affiliated investments, at cost	$	631,518		$	29,242,308		$	9,679,088		$	1,147,533		$	9,849,108		$	—		$	1,315,533
Total investments, at cost	$	245,795,773		$	604,401,006		$	556,172,215		$	188,734,748		$	2,076,662,432		$	4,898,375		$	624,432,899
Foreign currencies, at cost	$	—		$	—		$	—		$	113,080		$	—		$	12,977		$	—

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

76

PowerShares Fundamental Investment Grade Corporate  Bond Portfolio (PFIG)			PowerShares Global Short Term High Yield Bond Portfolio (PGHY)			PowerShares Insured California Municipal Bond Portfolio  (PWZ)			PowerShares Insured National Municipal Bond Portfolio  (PZA)			PowerShares Insured New York Municipal Bond Portfolio  (PZT)			PowerShares International Corporate Bond Portfolio  (PICB)			PowerShares Preferred Portfolio (PGX)			PowerShares Variable Rate Preferred Portfolio (VRP)		PowerShares VRDO Tax-Free Weekly Portfolio (PVI)
$	26,319,246		$	28,776,185		$	49,695,247		$	589,750,066		$	43,760,603		$	227,771,670		$	2,169,300,501		$	7,410,442	$	147,625,000
	112,850			374,091			—			—			—			—			881,519			25		—
	26,432,096			29,150,276			49,695,247			589,750,066			43,760,603			227,771,670			2,170,182,020			7,410,467		147,625,000
	—			—			1,545,511			12,651,906			643,351			—			—			—		6,009,975
	—			—			—			—			—			1,074,333			—			—		—
	—			—			—			—			—			1,085,919			—			—		—
	283,807			557,165			646,337			8,452,961			701,441			3,908,669			4,531,628			56,870		27,204
	—			159,047			—			—			614,036			150,060			—			—		—
	—			—			—			—			—			77,840			—			—		—
	—			—			—			—			—			2,441,407			6,484,422			7,460,460		—
	26,715,903			29,866,488			51,887,095			610,854,933			45,719,431			236,509,898			2,181,198,070			14,927,797		153,662,179
	52,528			104,808			—			—			—			883,628			10,851,958			—		—
	—			—			—			—			—			1,074,333			—			—		—
	—			—			—			—			—			2,511,384			6,315,633			7,460,782		—
	4,795			8,508			11,632			138,132			10,468			91,404			869,660			307		32,595
	—			—			—			—			—			—			—			—		—
	57,323			113,316			11,632			138,132			10,468			4,560,749			18,037,251			7,461,089		32,595
$	26,658,580		$	29,753,172		$	51,875,463		$	610,716,801		$	45,708,963		$	231,949,149		$	2,163,160,819		$	7,466,708	$	153,629,584
$	26,481,888		$	29,761,213		$	51,634,281		$	590,000,404		$	46,025,399		$	218,127,032		$	2,179,987,396		$	7,460,485	$	153,720,930
	7,697			(21,827	)		30,360			(158,554	)		13,938			(34,899	)		183,752			3,175		(91,343	)
	(38,967	)		20,741			(1,533,066	)		(4,559,999	)		(795,401	)		(26,341	)		(41,890,392	)		—		(3	)
	207,962			(6,955	)		1,743,888			25,434,950			465,027			13,883,357			24,880,063			3,048		—
$	26,658,580		$	29,753,172		$	51,875,463		$	610,716,801		$	45,708,963		$	231,949,149		$	2,163,160,819		$	7,466,708	$	153,629,584
	1,050,001			1,200,001			2,100,000			25,200,000			1,950,000			7,650,000			149,950,000			300,001		6,150,000
$	25.39		$	24.79		$	24.70		$	24.23		$	23.44		$	30.32		$	14.43		$	24.89	$	24.98
$	25.34		$	24.85		$	24.81		$	24.39		$	23.40		$	30.45		$	14.43			N/A	$	24.98
$	26,111,284		$	28,783,140		$	47,951,359		$	564,315,116		$	43,295,576		$	213,994,960		$	2,144,420,438		$	7,407,394	$	147,625,000
$	112,850		$	374,091		$	—		$	—		$	—		$	—		$	881,519		$	25	$	—
$	26,224,134		$	29,157,231		$	47,951,359		$	564,315,116		$	43,295,576		$	213,994,960		$	2,145,301,957		$	7,407,419	$	147,625,000
$	—		$	—		$	—		$	—		$	—		$	1,059,081		$	—		$	—	$	—

77

Statements of Operations

For the six months ended April 30, 2014

(Unaudited)

	PowerShares 1-30  Laddered Treasury Portfolio (PLW)			PowerShares Build  America Bond Portfolio (BAB)			PowerShares CEF Income Composite Portfolio (PCEF)			PowerShares Chinese Yuan Dim Sum Bond Portfolio (DSUM)			PowerShares Emerging Markets Sovereign Debt Portfolio (PCY)			PowerShares Fundamental Emerging Markets Local Debt  Portfolio (PFEM)			PowerShares Fundamental High Yield® Corporate Bond Portfolio (PHB)
Investment Income:
Unaffiliated interest income	$	2,403,060		$	16,822,562		$	—		$	3,113,415		$	47,920,318		$	106,019		$	15,828,398
Unaffiliated dividend income		—			—			18,936,533			—			—			—			—
Affiliated dividend income		33			1,005			160,920			525			1,054			—			361
Foreign withholding tax		—			—			—			(11,224	)		—			—			—
Total Income		2,403,093			16,823,567			19,097,453			3,102,716			47,921,372			106,019			15,828,759
Expenses:
Unitary management fees		217,237			875,220			1,237,979			382,737			4,654,559			10,612			1,578,129
Proxy		43			(3,775	)		(2,111	)		8			(15,112	)		—			(1,311	)
Tax expenses		—			—			—			583			—			—			—
Total Expenses		217,280			871,445			1,235,868			383,328			4,639,447			10,612			1,576,818
Waivers		(214	)		(8,082	)		(638	)		(3,485	)		(7,921	)		(3	)		(2,700	)
Net Expenses		217,066			863,363			1,235,230			379,843			4,631,526			10,609			1,574,118
Net Investment Income (Loss)		2,186,027			15,960,204			17,862,223			2,722,873			43,289,846			95,410			14,254,641
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		(187,221	)		2,580,696			1,093,814			(393,331	)		(11,437,017	)		(1,719	)		(43,251	)
In-kind redemptions		362,531			—			257,292			—			4,646,534			—			2,957,058
Foreign currencies		—			—			—			(71,883	)		—			(17,245	)		—
Net realized gain (loss)		175,310			2,580,696			1,351,106			(465,214	)		(6,790,483	)		(18,964	)		2,913,807
Change in net unrealized appreciation (depreciation) on:
Investment securities		3,600,737			18,349,339			15,623,798			(6,217,063	)		23,041,841			(192,026	)		4,807,853
Foreign currencies		—			—			—			(48,571	)		—			(547	)		—
Net change in unrealized appreciation (depreciation)		3,600,737			18,349,339			15,623,798			(6,265,634	)		23,041,841			(192,573	)		4,807,853
Net realized and unrealized gain (loss)		3,776,047			20,930,035			16,974,904			(6,730,848	)		16,251,358			(211,537	)		7,721,660
Net increase (decrease) in net assets resulting from operations	$	5,962,074		$	36,890,239		$	34,837,127		$	(4,007,975	)	$	59,541,204		$	(116,127	)	$	21,976,301

^(a)  For the period April 28, 2014 (commencement of investment operations) through April 30, 2014.

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

78

PowerShares Fundamental Investment Grade Corporate  Bond Portfolio (PFIG)			PowerShares Global Short Term High Yield Bond Portfolio (PGHY)			PowerShares Insured California Municipal Bond Portfolio  (PWZ)			PowerShares Insured National Municipal Bond Portfolio  (PZA)		PowerShares Insured New York Municipal Bond Portfolio  (PZT)			PowerShares International Corporate Bond Portfolio  (PICB)			PowerShares Preferred Portfolio (PGX)			PowerShares Variable Rate Preferred Portfolio (VRP)(a)		PowerShares VRDO Tax-Free Weekly Portfolio  (PVI)
$	402,954		$	570,637		$	1,147,877		$	13,177,206	$	1,004,459		$	2,976,883		$	—		$	—	$	129,853
	—			—			—			—		—			—			70,145,598			3,482		—
	13			39			—			—		—			14			520			—		—
	—			(48	)		—			—		—			(1,928	)		—			—		—
	402,967			570,628			1,147,877			13,177,206		1,004,459			2,974,969			70,146,118			3,482		129,853
	32,988			45,603			71,146			783,435		63,307			460,359			5,067,817			307		216,996
	129			—			(10,479	)		5,521		(8,619	)		(458	)		(11,905	)		—		(25	)
	—			—			—			—		—			—			—			—		—
	33,117			45,603			60,667			788,956		54,688			459,901			5,055,912			307		216,971
	(97	)		(273	)		—			—		—			(68	)		(3,688	)		—		—
	33,020			45,330			60,667			788,956		54,688			459,833			5,052,224			307		216,971
	369,947			525,298			1,087,210			12,388,250		949,771			2,515,136			65,093,894			3,175		(87,118	)
	(12,686	)		35,640			(1,080,354	)		49,240		9,092			43,254			(3,773,718	)		—		(3	)
	(26,269	)		—			—			—		—			—			5,581,331			—		—
	—			—			—			—		—			(64,177	)		—			—		—
	(38,955	)		35,640			(1,080,354	)		49,240		9,092			(20,923	)		1,807,613			—		(3	)
	303,163			(79,378	)		3,398,374			22,115,706		2,060,834			5,987,434			90,476,596			3,048		—
	—			—			—			—		—			29,590			—			—		—
	303,163			(79,378	)		3,398,374			22,115,706		2,060,834			6,017,024			90,476,596			3,048		—
	264,208			(43,738	)		2,318,020			22,164,946		2,069,926			5,996,101			92,284,209			3,048		(3	)
$	634,155		$	481,560		$	3,405,230		$	34,553,196	$	3,019,697		$	8,511,237		$	157,378,103		$	6,223	$	(87,121	)

79

Statements of Changes in Net Assets

For the six months ended April 30, 2014 and the year ended October 31, 2013

(Unaudited)

	PowerShares 1-30 Laddered Treasury Portfolio (PLW)						PowerShares Build America Bond Portfolio (BAB)						PowerShares CEF Income Composite Portfolio (PCEF)
	April 30, 2014			October 31, 2013			April 30, 2014			October 31, 2013			April 30, 2014			October 31, 2013
Operations:
Net investment income (loss)	$	2,186,027		$	3,708,664		$	15,960,204		$	46,957,679		$	17,862,223		$	21,390,662
Net realized gain (loss)		175,310			1,991,279			2,580,696			12,066,545			1,351,106			562,585
Net change in unrealized appreciation (depreciation)		3,600,737			(15,045,493	)		18,349,339			(91,210,140	)		15,623,798			(10,918,245	)
Net increase (decrease) in net assets resulting from operations		5,962,074			(9,345,550	)		36,890,239			(32,185,916	)		34,837,127			11,035,002
Distributions to Shareholders from:
Net investment income		(2,269,594	)		(3,728,623	)		(16,015,822	)		(47,070,053	)		(21,046,418	)		(26,361,402	)
Capital gains		—			(5,202	)		—			—			—			—
Return of capital		—			—			—			—			—			(8,400,472	)
Total distributions to shareholders		(2,269,594	)		(3,733,825	)		(16,015,822	)		(47,070,053	)		(21,046,418	)		(34,761,874	)
Shareholder Transactions:
Proceeds from shares sold		106,767,571			22,488,678			42,049,556			112,881,072			93,951,844			159,492,425
Value of shares repurchased		(9,028,048	)		(25,326,612	)		(82,991,678	)		(420,310,268	)		(3,575,703	)		(35,243,329	)
Transaction fees		—			—			—			—			—			—
Net increase from payments from service providers (Note 3)		—			—			—			—			—			—
Net increase (decrease) in net assets resulting from shares transactions		97,739,523			(2,837,934	)		(40,942,122	)		(307,429,196	)		90,376,141			124,249,096
Increase (Decrease) in Net Assets		101,432,003			(15,917,309	)		(20,067,705	)		(386,685,165	)		104,166,850			100,522,224
Net Assets:
Beginning of period		150,540,285			166,457,594			683,643,228			1,070,328,393			469,788,711			369,266,487
End of period	$	251,972,288		$	150,540,285		$	663,575,523		$	683,643,228		$	573,955,561		$	469,788,711
Undistributed net investment income (loss) at end of period	$	(83,567	)	$	—		$	(55,618	)	$	—		$	(3,184,195	)	$	—
Changes in Shares Outstanding:
Shares sold		3,550,000			700,000			1,450,000			3,700,000			3,850,000			6,200,000
Shares repurchased		(300,000	)		(800,000	)		(3,000,000	)		(14,650,000	)		(150,000	)		(1,450,000	)
Shares outstanding, beginning of period		4,950,000			5,050,000			24,500,000			35,450,000			19,250,000			14,500,000
Shares outstanding, end of period		8,200,000			4,950,000			22,950,000			24,500,000			22,950,000			19,250,000

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

80

PowerShares Chinese Yuan Dim Sum Bond Portfolio (DSUM)						PowerShares Emerging Markets Sovereign Debt Portfolio (PCY)						PowerShares Fundamental Emerging Markets Local Debt Portfolio (PFEM)						PowerShares Fundamental High Yield® Corporate Bond Portfolio (PHB)						PowerShares Fundamental Investment Grade Corporate Bond Portfolio (PFIG)
April 30, 2014			October 31, 2013			April 30, 2014			October 31, 2013			April 30, 2014			October 31, 2013			April 30, 2014			October 31, 2013			April 30, 2014			October 31, 2013
$	2,722,873		$	2,151,593		$	43,289,846		$	104,678,007		$	95,410		$	168,958		$	14,254,641		$	34,963,957		$	369,947		$	697,118
	(465,214	)		(182,989	)		(6,790,483	)		111,583,211			(18,964	)		(496,373	)		2,913,807			14,795,498			(38,955	)		63,740
	(6,265,634	)		955,094			23,041,841			(367,874,858	)		(192,573	)		(485,769	)		4,807,853			(15,222,016	)		303,163			(899,958	)
	(4,007,975	)		2,923,698			59,541,204			(151,613,640	)		(116,127	)		(813,184	)		21,976,301			34,537,439			634,155			(139,100	)
	(2,824,052	)		(2,117,217	)		(43,657,569	)		(105,617,667	)		(98,193	)		—			(14,444,031	)		(35,119,389	)		(362,250	)		(709,705	)
	—			—			—			—			—			—			—			—			(18,158	)		—
	—			—			—			—			—			(184,025	)		—			—			—			—
	(2,824,052	)		(2,117,217	)		(43,657,569	)		(105,617,667	)		(98,193	)		(184,025	)		(14,444,031	)		(35,119,389	)		(380,408	)		(709,705	)
	105,190,475			101,135,431			225,306,135			901,739,155			—			10,000,025			96,854,464			171,321,969			1,247,468			6,342,922
	(20,953,192	)		(12,401,565	)		(255,978,165	)		(1,445,018,456	)		—			(4,554,558	)		(73,185,735	)		(387,896,410	)		(8,767,206	)		(2,563,275	)
	630,718			580,146			—			—			—			10,208			—			—			—			—
	—			—			—			—			—			65,046			—			—			—			—
	84,868,001			89,314,012			(30,672,030	)		(543,279,301	)		—			5,520,721			23,668,729			(216,574,441	)		(7,519,738	)		3,779,647
	78,035,974			90,120,493			(14,788,395	)		(800,510,608	)		(214,320	)		4,523,512			31,200,999			(217,156,391	)		(7,265,991	)		2,930,842
	107,213,123			17,092,630			2,008,275,679			2,808,786,287			4,523,512			—			621,429,307			838,585,698			33,924,571			30,993,729
$	185,249,097		$	107,213,123		$	1,993,487,284		$	2,008,275,679		$	4,309,192		$	4,523,512		$	652,630,306		$	621,429,307		$	26,658,580		$	33,924,571
$	(5,655	)	$	95,524		$	(367,723	)	$	—		$	(2,783	)	$	—		$	(189,390	)	$	—		$	7,697		$	—
	4,150,000			4,050,000			8,100,000			30,200,000			—			400,001			5,000,000			8,900,000			50,000			250,000
	(850,000	)		(500,000	)		(9,400,000	)		(48,900,000	)		—			(200,000	)		(3,800,000	)		(20,300,000	)		(350,000	)		(100,000	)
	4,250,001			700,001			71,900,000			90,600,000			200,001			—			32,300,000			43,700,000			1,350,001			1,200,001
	7,550,001			4,250,001			70,600,000			71,900,000			200,001			200,001			33,500,000			32,300,000			1,050,001			1,350,001

81

Statements of Changes in Net Assets (continued)

For the six months ended April 30, 2014 and the year ended October 31, 2013

(Unaudited)

	PowerShares Global Short Term High Yield Bond Portfolio (PGHY)						PowerShares Insured California Municipal Bond Portfolio (PWZ)						PowerShares Insured National Municipal Bond Portfolio (PZA)
	April 30, 2014			October 31, 2013			April 30, 2014			October 31, 2013			April 30, 2014			October 31, 2013
Operations:
Net investment income (loss)	$	525,298		$	107,142		$	1,087,210		$	2,635,745		$	12,388,250		$	34,693,927
Net realized gain (loss)		35,640			(14,899	)		(1,080,354	)		(387,614	)		49,240			(25,803,609	)
Net change in unrealized appreciation (depreciation)		(79,378	)		72,423			3,398,374			(5,430,982	)		22,115,706			(65,916,809	)
Net increase (decrease) in net assets resulting from operations		481,560			164,666			3,405,230			(3,182,851	)		34,553,196			(57,026,491	)
Distributions to Shareholders from:
Net investment income		(555,267	)		(99,000	)		(1,056,850	)		(95	)		(12,546,804	)		(597	)
Tax-exempt income		—			—			—			(2,635,650	)		—			(34,693,330	)
Return of capital		—			—			—			(8,511	)		—			(4,201	)
Total distributions to shareholders		(555,267	)		(99,000	)		(1,056,850	)		(2,644,256	)		(12,546,804	)		(34,698,128	)
Shareholder Transactions:
Proceeds from shares sold		14,924,016			14,837,197			1,226,726			17,824,233			58,802,330			185,888,327
Value of shares repurchased		—			—			(12,878,473	)		(14,227,103	)		(34,689,540	)		(462,743,101	)
Transaction fees		—			—			70,526			—			—			—
Net increase (decrease) in net assets resulting from shares transactions		14,924,016			14,837,197			(11,581,221	)		3,597,130			24,112,790			(276,854,774	)
Increase (Decrease) in Net Assets		14,850,309			14,902,863			(9,232,841	)		(2,229,977	)		46,119,182			(368,579,393	)
Net Assets:
Beginning of period		14,902,863			—			61,108,304			63,338,281			564,597,619			933,177,012
End of period	$	29,753,172		$	14,902,863		$	51,875,463		$	61,108,304		$	610,716,801		$	564,597,619
Undistributed net investment income (loss) at end of period	$	(21,827	)	$	8,142		$	30,360		$	—		$	(158,554	)	$	—
Changes in Shares Outstanding:
Shares sold		600,000			600,001			50,000			700,000			2,450,000			7,200,000
Shares repurchased		—			—			(550,000	)		(600,000	)		(1,500,000	)		(19,200,000	)
Shares outstanding, beginning of period		600,001			—			2,600,000			2,500,000			24,250,000			36,250,000
Shares outstanding, end of period		1,200,001			600,001			2,100,000			2,600,000			25,200,000			24,250,000

^(a)  For the period April 28, 2014 (commencement of investment operations) through April 30, 2014.

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

82

PowerShares Insured New York Municipal Bond Portfolio (PZT)						PowerShares International Corporate Bond Portfolio (PICB)						PowerShares Preferred Portfolio (PGX)						PowerShares Variable Rate Preferred Portfolio (VRP)		PowerShares VRDO Tax-Free Weekly Portfolio (PVI)
April 30, 2014			October 31, 2013			April 30, 2014			October 31, 2013			April 30, 2014			October 31, 2013			April 30, 2014(a)		April 30, 2014			October 31, 2013
$	949,771		$	2,469,726		$	2,515,136		$	4,225,850		$	65,093,894		$	145,598,441		$	3,175	$	(87,118	)	$	75,658
	9,092			(755,255	)		(20,923	)		(854,664	)		1,807,613			34,391,873			—		(3	)		—
	2,060,834			(6,062,616	)		6,017,024			2,943,697			90,476,596			(217,947,419	)		3,048		—			—
	3,019,697			(4,348,145	)		8,511,237			6,314,883			157,378,103			(37,957,105	)		6,223		(87,121	)		75,658
	(935,833	)		(5,386	)		(2,549,885	)		(3,371,501	)		(64,910,142	)		(147,728,843	)		—		(4,225	)		(64	)
	—			(2,464,340	)		—			—			—			—			—		—			(76,762	)
	—			(10,213	)		—			(655,978	)		—			—			—		—			(21,885	)
	(935,833	)		(2,479,939	)		(2,549,885	)		(4,027,479	)		(64,910,142	)		(147,728,843	)		—		(4,225	)		(98,711	)
	28,034			4,825,722			69,518,764			43,391,129			135,687,052			663,144,378			7,460,485		8,747,370			44,989,309
	(5,606,705	)		(20,777,045	)		—			(21,178,344	)		(172,024,744	)		(451,617,054	)		—		(48,726,028	)		(168,715,726	)
	—			—			132,755			161,424			—			—			—		—			—
	(5,578,671	)		(15,951,323	)		69,651,519			22,374,209			(36,337,692	)		211,527,324			7,460,485		(39,978,658	)		(123,726,417	)
	(3,494,807	)		(22,779,407	)		75,612,871			24,661,613			56,130,269			25,841,376			7,466,708		(40,070,004	)		(123,749,470	)
	49,203,770			71,983,177			156,336,278			131,674,665			2,107,030,550			2,081,189,174			—		193,699,588			317,449,058
$	45,708,963		$	49,203,770		$	231,949,149		$	156,336,278		$	2,163,160,819		$	2,107,030,550		$	7,466,708	$	153,629,584		$	193,699,588
$	13,938		$	—		$	(34,899	)	$	(150	)	$	183,752		$	—		$	3,175	$	(91,343	)	$	—
	—			200,000			2,350,000			1,500,000			9,600,000			44,850,000			300,001		350,000			1,800,000
	(250,000	)		(900,000	)		—			(750,000	)		(12,600,000	)		(32,300,000	)		—		(1,950,000	)		(6,750,000	)
	2,200,000			2,900,000			5,300,000			4,550,000			152,950,000			140,400,000			—		7,750,000			12,700,000
	1,950,000			2,200,000			7,650,000			5,300,000			149,950,000			152,950,000			300,001		6,150,000			7,750,000

83

Financial Highlights

PowerShares 1-30 Laddered Treasury Portfolio (PLW)

	Six-Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of year	$	30.41		$	32.96		$	31.40		$	29.24		$	27.58		$	26.31
Net investment income(a)		0.37			0.74			0.76			0.81			0.87			0.92
Net realized and unrealized gain (loss) on investments		0.33			(2.55	)		1.59			2.26			1.79			1.33
Total from investment operations		0.70			(1.81	)		2.35			3.07			2.66			2.25
Distributions to shareholders from:
Net investment income		(0.38	)		(0.74	)		(0.79	)		(0.79	)		(0.87	)		(0.91	)
Capital gains		—			(0.00	)(b)		—			—			—			—
Return of capital		—			—			—			(0.12	)		(0.13	)		(0.07	)
Total distributions		(0.38	)		(0.74	)		(0.79	)		(0.91	)		(1.00	)		(0.98	)
Net asset value at end of year	$	30.73		$	30.41		$	32.96		$	31.40		$	29.24		$	27.58
Market price at end of year(c)	$	30.73		$	30.40		$	32.92		$	31.54		$	29.23		$	27.59
Net Asset Value Total Return(d)		2.33	%		(5.55	)%		7.56	%		10.86	%		9.91	%		8.55	%
Market Price Total Return(d)		2.36	%		(5.47	)%		6.94	%		11.38	%		9.84	%		8.38	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	251,972		$	150,540		$	166,458		$	260,646		$	76,024		$	66,180
Ratio to average net assets of:
Expenses		0.25	%(e)		0.25	%		0.25	%		0.25	%		0.25	%		0.25	%
Net investment income		2.52	%(e)		2.33	%		2.34	%		2.82	%		3.12	%		3.22	%
Portfolio turnover rate(f)		4	%		5	%		4	%		4	%		1	%		1	%

PowerShares Build America Bond Portfolio (BAB)

	Six-Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,									For the Period November 16,  2009(g) Through October 31, 2010
				2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of period	$	27.90		$	30.19		$	28.16		$	26.13		$	24.90
Net investment income(a)		0.71			1.42			1.45			1.49			1.30
Net realized and unrealized gain (loss) on investments		1.01			(2.29	)		2.06			2.03			1.17
Total from investment operations		1.72			(0.87	)		3.51			3.52			2.47
Distributions to shareholders from:
Net investment income		(0.71	)		(1.42	)		(1.48	)		(1.49	)		(1.22	)
Return of capital		—			—			—			(0.00	)(b)		(0.02	)
Total distributions		(0.71	)		(1.42	)		(1.48	)		(1.49	)		(1.24	)
Net asset value at end of period	$	28.91		$	27.90		$	30.19		$	28.16		$	26.13
Market price at end of period(c)	$	29.01		$	27.79		$	30.16		$	28.18		$	26.16
Net Asset Value Total Return(d)		6.28	%		(3.00	)%		12.74	%		14.10	%		10.16	%(h)
Market Price Total Return(d)		7.08	%		(3.28	)%		12.54	%		14.04	%		10.29	%(h)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	663,576		$	683,643		$	1,070,328		$	664,596		$	569,606
Ratio to average net assets of:
Expenses, after Waivers		0.28	%(e)		0.28	%		0.28	%		0.28	%		0.28	%(e)
Expenses, prior to Waivers		0.28	%(e)		0.28	%		0.31	%		0.35	%		0.35	%(e)
Net investment income, after Waivers		5.11	%(e)		4.80	%		4.92	%		5.68	%		5.42	%(e)
Portfolio turnover rate(f)		3	%		5	%		2	%		15	%		5	%

^(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 and does not include securities received or delivered from processing creations or redemptions.

^(g)  Commencement of Investment Operations.

^(h)  The net asset value total return from Fund Inception (November 17, 2009, the first day of trading on the Exchange) to October 31, 2010 was 10.34%. The market price total return from Fund Inception to October 31, 2010 was 10.06%.

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

84

Financial Highlights (continued)

PowerShares CEF Income Composite Portfolio (PCEF)

	Six-Months Ended April 30,  2014 (Unaudited)			Year Ended October 31,									For the Period February 16,  2010(a) Through October 31, 2010
				2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of period	$	24.40		$	25.47		$	23.84		$	26.16		$	25.00
Net investment income(b)		0.87			1.21			1.40			1.27			1.03
Net realized and unrealized gain (loss) on investments		0.77			(0.31	)		4.28			(1.57	)		1.58
Total from investment operations		1.64			0.90			5.68			(0.30	)		2.61
Distributions to shareholders from:
Net investment income		(1.03	)		(1.49	)		(3.83	)		(1.39	)		(0.98	)
Return of capital		—			(0.48	)		(0.22	)		(0.63	)		(0.47	)
Total distributions		(1.03	)		(1.97	)		(4.05	)		(2.02	)		(1.45	)
Net asset value at end of period	$	25.01		$	24.40		$	25.47		$	23.84		$	26.16
Market price at end of period(c)	$	25.00		$	24.40		$	25.52		$	23.86		$	26.18
Net Asset Value Total Return(d)		6.93	%		3.64	%		16.20	%		(1.26	)%		10.78	%(e)
Market Price Total Return(d)		6.88	%		3.43	%		16.32	%		(1.26	)%		10.81	%(e)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	573,956		$	469,789		$	369,266		$	244,408		$	166,094
Ratio to average net assets of:
Expenses(f)		0.50	%(g)		0.50	%		0.50	%		0.50	%		0.50	%(g)
Net investment income		7.21	%(g)		4.82	%		5.67	%		5.04	%		5.90	%(g)
Portfolio turnover rate(h)		12	%		33	%		22	%		32	%		29	%

PowerShares Chinese Yuan Dim Sum Bond Portfolio (DSUM)

	Six-Months Ended April 30,  2014 (Unaudited)			Year Ended October 31,						For the Period September 22,  2011(a) Through October 31, 2011
				2013			2012
Per Share Operating Performance:
Net asset value at beginning of period	$	25.23		$	24.42		$	23.57		$	24.42
Net investment income(b)		0.40			0.82			0.77			0.09
Net realized and unrealized gain (loss) on investments		(0.76	)		0.59			0.77			(0.94	)
Total from investment operations		(0.36	)		1.41			1.54			(0.85	)
Distributions to shareholders from:
Net investment income		(0.42	)		(0.82	)		(0.81	)		—
Return of capital		—			—			(0.02	)		—
Total distributions		(0.42	)		(0.82	)		(0.83	)		—
Transaction fees(b)		0.09			0.22			0.14			—
Net asset value at end of period	$	24.54		$	25.23		$	24.42		$	23.57
Market price at end of period(c)	$	24.36		$	25.41		$	24.57		$	23.72
Net Asset Value Total Return(d)		(1.11	)%		6.77	%		7.26	%		(3.48	)%(i)
Market Price Total Return(d)		(2.53	)%		6.85	%		7.21	%		(2.87	)%(i)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	185,249		$	107,213		$	17,093		$	3,536
Ratio to average net assets of:
Expenses		0.45	%(g)		0.45	%		0.45	%(f)		0.45	%(g)
Net investment income		3.20	%(g)		3.30	%		3.21	%		3.46	%(g)
Portfolio turnover rate(h)		8	%		25	%		12	%		0	%

^(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 (February 19, 2010, the first day of trading on the Exchange) to October 31, 2010 was 9.81%. The market price total return from Fund Inception to October 31, 2010 was 9.76%.

^(f)  In addition to the fees and expenses, which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment company expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment company and are deducted from the value of the funds that 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 and does not include securities received or delivered from processing creations or redemptions.

⁽ⁱ⁾  The net asset value total return from Fund Inception (September 23, 2011, the first day of trading on the Exchange) to October 31, 2011 was (1.38)%. The market price total return from Fund Inception to October 31, 2011, was (4.51)%.

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

85

Financial Highlights (continued)

PowerShares Emerging Markets Sovereign Debt Portfolio (PCY)

	Six-Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of year	$	27.93		$	31.00		$	27.42		$	28.25		$	25.60		$	18.09
Net investment income(a)		0.63			1.30			1.44			1.42			1.54			1.58
Net realized and unrealized gain (loss) on investments		0.32			(3.08	)		3.60			(0.76	)		2.72			7.52
Total from investment operations		0.95			(1.78	)		5.04			0.66			4.26			9.10
Distributions to shareholders from:
Net investment income		(0.64	)		(1.29	)		(1.46	)		(1.43	)		(1.57	)		(1.57	)
Return of capital		—			—			—			(0.06	)		(0.04	)		(0.02	)
Total distributions		(0.64	)		(1.29	)		(1.46	)		(1.49	)		(1.61	)		(1.59	)
Net asset value at end of year	$	28.24		$	27.93		$	31.00		$	27.42		$	28.25		$	25.60
Market price at end of year(b)	$	28.26		$	27.92		$	31.11		$	27.45		$	28.28		$	25.89
Net Asset Value Total Return(c)		3.49	%		(5.85	)%		19.02	%		2.60	%		17.31	%		52.11	%
Market Price Total Return(c)		3.60	%		(6.22	)%		19.30	%		2.60	%		16.10	%		66.52	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	1,993,487		$	2,008,276		$	2,808,786		$	1,319,124		$	1,002,915		$	419,877
Ratio to average net assets of:
Expenses		0.50	%(d)		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%
Net investment income		4.65	%(d)		4.37	%		5.03	%		5.28	%		5.86	%		6.89	%
Portfolio turnover rate(e)		9	%		9	%		4	%		4	%		5	%		13	%

PowerShares Fundamental Emerging Markets Local Debt Portfolio (PFEM)

	Six-Months Ended April 30, 2014 (Unaudited)			For the Period May 6,  2013(f) Through October 31, 2013
Per Share Operating Performance:
Net asset value at beginning of period	$	22.62		$	25.00
Net investment income(a)		0.48			0.44
Net realized and unrealized gain (loss) on investments		(1.06	)		(2.56	)
Total from investment operations		(0.58	)		(2.12	)
Distributions to shareholders from:
Net investment income		(0.49	)		—
Return of capital		—			(0.46	)
Total distributions		(0.49	)		(0.46	)
Transaction fees(a)		—			0.03
Net increase from payments from service providers		—			0.17
Net asset value at end of period	$	21.55		$	22.62
Market price at end of period(b)	$	21.59		$	22.59
Net Asset Value Total Return(c)		(2.52	)%		(7.65	)%(g)(h)
Market Price Total Return(c)		(2.21	)%		(7.77	)%(g)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	4,309		$	4,524
Ratio to average net assets of:
Expenses		0.50	%(d)		0.50	%(d)
Net investment income		4.54	%(d)		3.99	%(d)
Portfolio turnover rate(e)		1	%		56	%

^(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 and does not include securities received or delivered from processing creations or redemptions.

^(f)  Commencement of Investment Operations.

^(g)  The net asset value total return from Fund Inception (May 9, 2013, the first day of trading on the Exchange) to October 31, 2013 was (7.65)%. The market price total return from Fund Inception to October 31, 2013 was (8.32)%.

^(h)  Amount includes the effect of the payments from service providers related to the economic impact of a transaction. Had the payments not been made, the net asset value total return would have been (8.34)%.

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

86

Financial Highlights (continued)

PowerShares Fundamental High Yield^® Corporate Bond Portfolio (PHB)

	Six-Months Ended April 30,  2014 (Unaudited)			Year Ended October 31,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of year	$	19.24		$	19.19		$	18.22		$	18.49		$	17.54		$	15.73
Net investment income(a)		0.43			0.90			0.98			1.03			1.39			1.61
Net realized and unrealized gain (loss) on investments		0.25			0.05			0.97			(0.16	)		1.03			1.81
Total from investment operations		0.68			0.95			1.95			0.87			2.42			3.42
Distributions to shareholders from:
Net investment income		(0.44	)		(0.90	)		(0.98	)		(1.07	)		(1.47	)		(1.61	)
Return of capital		—			—			—			(0.07	)		—			—
Total distributions		(0.44	)		(0.90	)		(0.98	)		(1.14	)		(1.47	)		(1.61	)
Net asset value at end of year	$	19.48		$	19.24		$	19.19		$	18.22		$	18.49		$	17.54
Market price at end of year(b)	$	19.50		$	19.26		$	19.17		$	18.21		$	18.50		$	17.51
Net Asset Value Total Return(c)		3.57	%		5.06	%		11.02	%		4.85	%		14.47	%		23.73	%
Market Price Total Return(c)		3.57	%		5.29	%		10.95	%		4.72	%		14.70	%		20.39	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	652,630		$	621,429		$	838,586		$	566,731		$	391,893		$	171,936
Ratio to average net assets of:
Expenses		0.50	%(d)		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%
Net investment income		4.52	%(d)		4.66	%		5.26	%		5.63	%		7.89	%		9.93	%
Portfolio turnover rate(e)		9	%		23	%		21	%		27	%		33	%		68	%

PowerShares Fundamental Investment Grade Corporate Bond Portfolio (PFIG)

	Six-Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,						For the Period September 12,  2011(f) Through October 31, 2011
				2013			2012
Per Share Operating Performance:
Net asset value at beginning of period	$	25.13		$	25.83		$	24.79		$	24.85
Net investment income(a)		0.31			0.54			0.56			0.07
Net realized and unrealized gain (loss) on investments		0.26			(0.69	)		1.11			(0.13	)
Total from investment operations		0.57			(0.15	)		1.67			(0.06	)
Distributions to shareholders from:
Net investment income		(0.30	)		(0.55	)		(0.63	)		—
Capital gains		(0.01	)		—			—			—
Total distributions		(0.31	)		(0.55	)		(0.63	)		—
Net asset value at end of period	$	25.39		$	25.13		$	25.83		$	24.79
Market price at end of period(b)	$	25.34		$	25.12		$	25.85		$	25.25
Net Asset Value Total Return(c)		2.29	%		(0.57	)%		6.85	%		(0.24	)%(g)
Market Price Total Return(c)		2.13	%		(0.68	)%		4.97	%		1.61	%(g)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	26,659		$	33,925		$	30,994		$	4,958
Ratio to average net assets of:
Expenses		0.22	%(d)		0.22	%		0.22	%		0.22	%(d)
Net investment income		2.47	%(d)		2.15	%		2.23	%		2.39	%(d)
Portfolio turnover rate(e)		5	%		20	%		1	%		1	%

^(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 and does not include securities received or delivered from processing creations or redemptions.

^(f)  Commencement of Investment Operations.

^(g)  The net asset value total return from Fund Inception (September 15, 2011, the first day of trading on the Exchange) to October 31, 2011 was 0.40%. The market price total return from Fund Inception to October 31, 2011 was 2.43%.

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

87

Financial Highlights (continued)

PowerShares Global Short Term High Yield Bond Portfolio (PGHY)

	Six-Months Ended April 30, 2014 (Unaudited)			For the Period June 17,  2013(a) Through October 31, 2013
Per Share Operating Performance:
Net asset value at beginning of period	$	24.84		$	24.70
Net investment income(b)		0.49			0.34
Net realized and unrealized gain (loss) on investments		(0.02	)		0.10
Total from investment operations		0.47			0.44
Distributions to shareholders from:
Net investment income		(0.52	)		(0.30	)
Net asset value at end of period	$	24.79		$	24.84
Market price at end of period(c)	$	24.85		$	25.06
Net Asset Value Total Return(d)		1.92	%		1.78	%(e)
Market Price Total Return(d)		1.26	%		2.67	%(e)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	29,753		$	14,903
Ratio to average net assets of:
Expenses		0.35	%(f)		0.35	%(f)
Net investment income		4.03	%(f)		3.71	%(f)
Portfolio turnover rate(g)		13	%		4	%

PowerShares Insured California Municipal Bond Portfolio (PWZ)

	Six-Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of year	$	23.50		$	25.34		$	23.80		$	24.24		$	23.50		$	21.26
Net investment income(b)		0.51			0.91			0.99			1.03			1.03			1.06
Net realized and unrealized gain (loss) on investments		1.15			(1.84	)		1.54			(0.40	)		0.78			2.26
Total from investment operations		1.66			(0.93	)		2.53			0.63			1.81			3.32
Distributions to shareholders from:
Net investment income		(0.49	)		(0.00	)(h)		(0.00	)(h)		(0.03	)		(0.04	)		(0.02	)
Tax-exempt income		—			(0.91	)		(0.99	)		(1.04	)		(1.03	)		(1.06	)
Return of capital		—			(0.00	)(h)		—			—			—			—
Total distributions		(0.49	)		(0.91	)		(0.99	)		(1.07	)		(1.07	)		(1.08	)
Transaction fee(b)		0.03			—			—			—			—			—
Net asset value at end of year	$	24.70		$	23.50		$	25.34		$	23.80		$	24.24		$	23.50
Market price at end of year(c)	$	24.81		$	23.42		$	25.34		$	23.80		$	24.24		$	23.48
Net Asset Value Total Return(d)		7.31	%		(3.74	)%		10.83	%		2.90	%		7.91	%		16.06	%
Market Price Total Return(d)		8.16	%		(4.06	)%		10.83	%		2.90	%		8.00	%		16.38	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	51,875		$	61,108		$	63,338		$	36,884		$	43,640		$	31,727
Ratio to average net assets of:
Expenses, after Waivers		0.24	%(f)		0.30	%		0.28	%		0.28	%		0.28	%		0.28	%
Expenses, prior to Waivers		0.24	%(f)		0.30	%		0.31	%		0.35	%		0.35	%		0.35	%
Net investment income, after Waivers		4.28	%(f)		3.70	%		3.98	%		4.52	%		4.31	%		4.71	%
Portfolio turnover rate(g)		0	%		1	%		6	%		33	%		8	%		34	%

^(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 20, 2013, the first day of trading on the Exchange) to October 31, 2013 was 2.82%. The market price total return from Fund Inception to October 31, 2013 was 4.02%.

^(f)  Annualized.

^(g)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

^(h) Amount represents less than $0.005.

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

88

Financial Highlights (continued)

PowerShares Insured National Municipal Bond Portfolio (PZA)

	Six-Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of year	$	23.28		$	25.74		$	23.97		$	24.28		$	23.61		$	21.00
Net investment income(a)		0.52			0.98			1.05			1.08			1.07			1.12
Net realized and unrealized gain (loss) on investments		0.95			(2.46	)		1.78			(0.28	)		0.70			2.60
Total from investment operations		1.47			(1.48	)		2.83			0.80			1.77			3.72
Distributions to shareholders from:
Net investment income		(0.52	)		(0.00	)(b)		(0.01	)		(0.02	)		(0.03	)		(0.00	)(b)
Tax-exempt income		—			(0.98	)		(1.05	)		(1.09	)		(1.07	)		(1.11	)
Return of capital		—			(0.00	)(b)		—			—			—			—
Total distributions		(0.52	)		(0.98	)		(1.06	)		(1.11	)		(1.10	)		(1.11	)
Net asset value at end of year	$	24.23		$	23.28		$	25.74		$	23.97		$	24.28		$	23.61
Market price at end of year(c)	$	24.39		$	23.23		$	25.79		$	23.98		$	24.29		$	23.56
Net Asset Value Total Return(d)		6.42	%		(5.90	)%		12.02	%		3.63	%		7.70	%		18.22	%
Market Price Total Return(d)		7.35	%		(6.27	)%		12.18	%		3.63	%		7.97	%		16.35	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	610,717		$	564,598		$	933,177		$	535,671		$	658,066		$	446,288
Ratio to average net assets of:
Expenses, after Waivers		0.28	%(e)		0.28	%		0.28	%		0.28	%		0.28	%		0.28	%
Expenses, prior to Waivers		0.28	%(e)		0.28	%		0.31	%		0.35	%		0.35	%		0.35	%
Net investment income, after Waivers		4.43	%(e)		3.93	%		4.18	%		4.72	%		4.47	%		4.97	%
Portfolio turnover rate(f)		8	%		12	%		15	%		17	%		8	%		25	%

PowerShares Insured New York Municipal Bond Portfolio (PZT)

	Six-Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of year	$	22.37		$	24.82		$	23.49		$	23.83		$	22.94		$	21.14
Net investment income(a)		0.47			0.92			0.98			1.00			1.03			1.06
Net realized and unrealized gain (loss) on investments		1.06			(2.45	)		1.33			(0.30	)		0.92			1.80
Total from investment operations		1.53			(1.53	)		2.31			0.70			1.95			2.86
Distributions to shareholders from:
Net investment income		(0.46	)		(0.00	)(b)		(0.00	)(b)		(0.04	)		(0.03	)		(0.02	)
Tax-exempt income		—			(0.92	)		(0.98	)		(1.00	)		(1.03	)		(1.04	)
Return of capital		—			(0.00	)(b)		(0.00	)(b)		—			—			—
Total distributions		(0.46	)		(0.92	)		(0.98	)		(1.04	)		(1.06	)		(1.06	)
Net asset value at end of year	$	23.44		$	22.37		$	24.82		$	23.49		$	23.83		$	22.94
Market price at end of year(c)	$	23.40		$	22.28		$	24.86		$	23.45		$	23.83		$	22.92
Net Asset Value Total Return(d)		6.95	%		(6.32	)%		10.02	%		3.24	%		8.71	%		13.92	%
Market Price Total Return(d)		7.21	%		(6.83	)%		10.38	%		3.07	%		8.81	%		13.13	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	45,709		$	49,204		$	71,983		$	37,584		$	41,698		$	33,260
Ratio to average net assets of:
Expenses, after Waivers		0.24	%(e)		0.30	%		0.28	%		0.28	%		0.28	%		0.28	%
Expenses, prior to Waivers		0.24	%(e)		0.31	%		0.31	%		0.35	%		0.35	%		0.35	%
Net investment income, after Waivers		4.20	%(e)		3.84	%		4.02	%		4.41	%		4.42	%		4.75	%
Portfolio turnover rate(f)		3	%		20	%		0	%		37	%		3	%		10	%

^(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 and does not include securities received or delivered from processing creations or redemptions.

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

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Financial Highlights (continued)

PowerShares International Corporate Bond Portfolio (PICB)

	Six-Months Ended April 30,  2014 (Unaudited)			Year Ended October 31,									For the Period June 1, 2010(a) Through October 31, 2010
				2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of period	$	29.50		$	28.94		$	27.92		$	28.29		$	25.00
Net investment income(b)		0.40			0.86			0.93			0.95			0.17
Net realized and unrealized gain (loss) on investments		0.81			0.49			0.99			(0.29	)		3.49
Total from investment operations		1.21			1.35			1.92			0.66			3.66
Distributions to shareholders from:
Net investment income		(0.41	)		(0.69	)		(0.89	)		(0.87	)		—
Return of capital		—			(0.13	)		(0.04	)		(0.16	)		(0.37	)
Total distributions		(0.41	)		(0.82	)		(0.93	)		(1.03	)		(0.37	)
Transaction fees(b)		0.02			0.03			0.03			—			—
Net asset value at end of period	$	30.32		$	29.50		$	28.94		$	27.92		$	28.29
Market price at end of period(c)	$	30.45		$	29.55		$	29.07		$	27.67		$	28.42
Net Asset Value Total Return(d)		4.19	%		4.88	%		7.28	%		2.45	%		14.75	%(e)
Market Price Total Return(d)		4.46	%		4.59	%		8.72	%		1.04	%		15.28	%(e)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	231,949		$	156,336		$	131,675		$	79,559		$	33,944
Ratio to average net assets of:
Expenses		0.50	%(f)		0.50	%		0.50	%		0.50	%		0.50	%(f)
Net investment income		2.73	%(f)		2.99	%		3.39	%		3.48	%		2.53	%(f)
Portfolio turnover rate(g)		2	%		27	%		12	%		12	%		14	%

PowerShares Preferred Portfolio (PGX)

	Six-Months Ended April 30,  2014 (Unaudited)			Year Ended October 31,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of year	$	13.78		$	14.82		$	13.96		$	14.28		$	13.01		$	12.25
Net investment income(b)		0.44			0.91			0.94			0.95			0.92			0.98
Net realized and unrealized gain (loss) on investments		0.65			(1.03	)		0.86			(0.32	)		1.36			0.89
Total from investment operations		1.09			(0.12	)		1.80			0.63			2.28			1.87
Distributions to shareholders from:
Net investment income		(0.44	)		(0.92	)		(0.94	)		(0.95	)		(0.99	)		(1.02	)
Return of capital		—			—			—			—			(0.02	)		(0.09	)
Total distributions		(0.44	)		(0.92	)		(0.94	)		(0.95	)		(1.01	)		(1.11	)
Net asset value at end of year	$	14.43		$	13.78		$	14.82		$	13.96		$	14.28		$	13.01
Market price at end of year(c)	$	14.43		$	13.79		$	14.84		$	14.00		$	14.29		$	13.06
Net Asset Value Total Return(d)		8.09	%		(0.88	)%		13.37	%		4.53	%		18.08	%		17.02	%
Market Price Total Return(d)		8.01	%		(0.95	)%		13.18	%		4.75	%		17.70	%		13.88	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	2,163,161		$	2,107,031		$	2,081,189		$	1,395,458		$	1,345,981		$	769,925
Ratio to average net assets of:
Expenses		0.50	%(f)		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%
Net investment income		6.42	%(f)		6.27	%		6.52	%		6.70	%		6.66	%		8.26	%
Portfolio turnover rate(g)		8	%		29	%		29	%		30	%		12	%		34	%

^(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 3, 2010, the first day trading on the Exchange) to October 31, 2010 was 15.54%. The market price total return from Fund Inception to October 31, 2010 was 15.27%.

^(f)  Annualized.

^(g)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

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

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Financial Highlights (continued)

PowerShares Variable Rate Preferred Portfolio (VRP)

	For the Period April 28,  2014(a) Through April 30, 2014
Per Share Operating Performance:
Net asset value at beginning of period	$	24.87
Net investment income(b)		0.01
Net realized and unrealized gain on investments		0.01
Total from investment operations		0.02
Distributions to shareholders from:
Net investment income		—
Net asset value at end of period	$	24.89
Market price at end of period(c)		N/A
Net Asset Value Total Return(d)		0.08	%
Market Price Total Return(d)		N/A	(e)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	7,467
Ratio to average net assets of:
Expenses		0.50	%(f)
Net investment income		5.18	%(f)
Portfolio turnover rate(g)		0	%

PowerShares VRDO Tax-Free Weekly Portfolio (PVI)

	Six-Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of year	$	24.99		$	25.00		$	25.00		$	25.00		$	25.00		$	25.03
Net investment income(b)		(0.01	)		0.01			0.06			0.14			0.07			0.30
Net realized and unrealized gain (loss) on investments		—			(0.01	)		—			—			—			0.09
Total from investment operations		(0.01	)		—			0.06			0.14			0.07			0.39
Distributions to shareholders from:
Net investment income		(0.00	)(h)		(0.00	)(h)		—			—			—			(0.02	)
Tax-exempt income		—			(0.01	)		(0.06	)		(0.14	)		(0.07	)		(0.40	)
Return of capital		—			(0.00	)(h)		—			—			—			—
Total distributions		(0.00	)(h)		(0.01	)		(0.06	)		(0.14	)		(0.07	)		(0.42	)
Net asset value at end of year	$	24.98		$	24.99		$	25.00		$	25.00		$	25.00		$	25.00
Market price at end of year(c)	$	24.98		$	24.99		$	24.99		$	25.00		$	25.00		$	25.00
Net Asset Value Total Return(d)		(0.04	)%		(0.00	)%(i)		0.23	%		0.55	%		0.31	%		1.58	%
Market Price Total Return(d)		(0.04	)%		0.04	%		0.18	%		0.55	%		0.31	%		1.49	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	153,630		$	193,700		$	317,449		$	427,502		$	637,413		$	1,069,879
Ratio to average net assets of:
Expenses		0.25	%(f)		0.25	%		0.25	%		0.25	%		0.25	%		0.25	%
Net investment income		(0.10	)%(f)		0.03	%		0.22	%		0.57	%		0.29	%		1.24	%

^(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)  Market Price Total Return will be available on the first day of trading on the Exchange, which occurred on May 1, 2014.

^(f)  Annualized.

^(g)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

^(h)  Amount represents less than $0.005.

⁽ⁱ⁾  Amount represents less than 0.005%.

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 II

April 30, 2014

(Unaudited)

Note 1. Organization

PowerShares Exchange-Traded Fund Trust II (the “Trust”) was organized as a Massachusetts business trust on October 10, 2006 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of April 30, 2014, the Trust offered fifty-seven portfolios. This report includes the following portfolios:

Full Name	Short Name
PowerShares 1-30 Laddered Treasury Portfolio (PLW)	“1-30 Laddered Treasury Portfolio”
PowerShares Build America Bond Portfolio (BAB)	“Build America Bond Portfolio”
PowerShares CEF Income Composite Portfolio (PCEF)	“CEF Income Composite Portfolio”
PowerShares Chinese Yuan Dim Sum Bond Portfolio (DSUM)	“Chinese Yuan Dim Sum Bond Portfolio”
PowerShares Emerging Markets Sovereign Debt Portfolio (PCY)	“Emerging Markets Sovereign Debt Portfolio”
PowerShares Fundamental Emerging Markets Local Debt Portfolio (PFEM)	“Fundamental Emerging Markets Local Debt Portfolio”
PowerShares Fundamental High Yield® Corporate Bond Portfolio (PHB)	“Fundamental High Yield® Corporate Bond Portfolio”
PowerShares Fundamental Investment Grade Corporate Bond Portfolio (PFIG)	“Fundamental Investment Grade Corporate Bond Portfolio”
PowerShares Global Short Term High Yield Bond Portfolio (PGHY)	“Global Short Term High Yield Bond Portfolio”
PowerShares Insured California Municipal Bond Portfolio (PWZ)	“Insured California Municipal Bond Portfolio”
PowerShares Insured National Municipal Bond Portfolio (PZA)	“Insured National Municipal Bond Portfolio”
PowerShares Insured New York Municipal Bond Portfolio (PZT)	“Insured New York Municipal Bond Portfolio”
PowerShares International Corporate Bond Portfolio (PICB)	“International Corporate Bond Portfolio”
PowerShares Preferred Portfolio (PGX)	“Preferred Portfolio”
PowerShares Variable Rate Preferred Portfolio (VRP)*	“Variable Rate Preferred Portfolio”
PowerShares VRDO Tax-Free Weekly Portfolio (PVI)	“VRDO Tax-Free Weekly Portfolio”

* Commenced operations on April 28, 2014.

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 prices of each Fund’s Shares may differ to some degree from the Fund’s net asset value (“NAV”). Unlike conventional mutual funds, each Fund issues and redeems Shares on a continuous basis, at NAV, only in a large specified number of Shares, each called a “Creation Unit.” Creation Units of 1-30 Laddered Treasury Portfolio, CEF Income Composite Portfolio, Emerging Markets Sovereign Debt Portfolio, Fundamental High Yield^® Corporate Bond Portfolio, Fundamental Investment Grade Corporate Bond Portfolio, Global Short Term High Yield Bond Portfolio, Preferred Portfolio and Variable Rate Preferred Portfolio are issued and redeemed in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”). Creation Units of Build America Bond Portfolio, Chinese Yuan Dim Sum Bond Portfolio, Fundamental Emerging Markets Local Debt Portfolio, Insured California Municipal Bond Portfolio, Insured National Municipal Bond Portfolio, Insured New York Municipal Bond Portfolio, International Corporate Bond Portfolio and VRDO Tax-Free Weekly Portfolio generally are issued and redeemed in exchange for the deposit or delivery of cash. 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
1-30 Laddered Treasury Portfolio	Ryan/NASDAQ U.S. 1-30 Year Treasury Laddered Index
Build America Bond Portfolio	BofA Merrill Lynch Build America Bond Index
CEF Income Composite Portfolio	S-Network Composite Closed-End Fund IndexSM
Chinese Yuan Dim Sum Bond Portfolio	Citi Custom Dim Sum (Offshore CNY) Bond Index
Emerging Markets Sovereign Debt Portfolio	DB Emerging Market USD Liquid Balanced Index
Fundamental Emerging Markets Local Debt Portfolio	Citi RAFI Bonds Sovereign Emerging Markets Extended Local Currency Index
Fundamental High Yield® Corporate Bond Portfolio	RAFI® Bonds US High Yield 1-10 Index
Fundamental Investment Grade Corporate Bond Portfolio	RAFI® Bonds US Investment Grade 1-10 Index

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Fund	Underlying Index
Global Short Term High Yield Bond Portfolio	DB Global Short Maturity High Yield Bond Index
Insured California Municipal Bond Portfolio	BofA Merrill Lynch California Insured Long-Term Core Plus Municipal Securities Index
Insured National Municipal Bond Portfolio	BofA Merrill Lynch National Insured Long-Term Core Plus Municipal Securities Index
Insured New York Municipal Bond Portfolio	BofA Merrill Lynch New York Insured Long-Term Core Plus Municipal Securities Index
International Corporate Bond Portfolio	S&P International Corporate Bond Index®
Preferred Portfolio	BofA Merrill Lynch Core Plus Fixed Rate Preferred Securities Index
Variable Rate Preferred Portfolio	Wells Fargo® Hybrid and Preferred Securities Floating and Variable Rate Index
VRDO Tax-Free Weekly Portfolio	Bloomberg US Municipal AMT-Free Weekly VRDO Index

Note 2. Significant Accounting Policies

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

A. Security Valuation

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

Securities, including restricted securities in a fund that is held as an investment (the “Underlying Fund”) of a Fund are valued in accordance with the Underlying Fund’s valuation policy. The policies of Underlying Funds affiliated with the Funds as a result of having the same investment adviser are set forth below.

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 ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. 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

93

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/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

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 of each Fund’s 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.

Fixed-Income Securities Risk. Fixed-income securities are subject to interest rate risk and credit risk. Interest rate risk refers to fluctuations in the value of a fixed-income security resulting from changes in the general level of interest rates. When the general level of interest rates goes up, the prices of most fixed-income securities go down. When the general level of interest rates goes down, the prices of most fixed-income securities go up. Fixed-income securities with longer maturities typically are more sensitive to changes in interest rates, making them more volatile than securities with shorter maturities. Credit risk refers to the possibility that the issuer of a security will be unable and/or unwilling to make timely interest payments and/or repay the principal on its debt. Debt instruments are subject to varying degrees of credit risk, which may be reflected in credit ratings. There is a possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Securities issued by the U.S. Government are subject to limited credit risk; however, securities issued by U.S. Government agencies are not necessarily backed by the full faith and credit of the U.S. Government.

Industry Concentration Risk. In following its methodology, each Fund’s Underlying Index from time to time may 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 (except for Build America Bond Portfolio, CEF Income Composite Portfolio, Fundamental High Yield^® Corporate Bond Portfolio, Insured National Municipal Bond Portfolio and VRDO Tax-Free Weekly 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. Because the Build America Bond Portfolio, Chinese Yuan Dim Sum Bond Portfolio, Fundamental Emerging Markets Local Debt Portfolio, Insured California Municipal Bond Portfolio, Insured National Municipal Bond Portfolio, Insured New York Municipal Bond Portfolio, International Corporate Bond Portfolio and VRDO Tax-Free Weekly Portfolio issue and redeem Creation Units principally for cash, those funds will incur higher costs in buying and selling securities than if it they issued and redeemed Creation Units principally in-kind. 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.

94

Sampling Risk. With respect to each of the Build America Bond Portfolio, Chinese Yuan Dim Sum Bond Portfolio, Fundamental Emerging Markets Local Debt Portfolio, Fundamental High Yield^® Corporate Bond Portfolio, Fundamental Investment Grade Corporate Bond Portfolio, Global Short Term High Yield Bond Portfolio, Insured California Municipal Bond Portfolio, Insured National Municipal Bond Portfolio, Insured New York Municipal Bond Portfolio, International Corporate Bond Portfolio, Preferred Portfolio, Variable Rate Preferred Portfolio and VRDO Tax-Free Weekly Portfolio, each Fund’s use of a representative sampling approach will result in the Fund holding a smaller number of securities than are in its respective Underlying Index. As a result, an adverse development respecting to an issuer of securities that a Fund holds could result in a greater decline in NAV than would be the case if a Fund held all of the securities in its Underlying Index. To the extent the assets in a Fund are smaller, these risks will be greater.

Cash Transaction Risk. Unlike most exchange-traded funds (“ETFs”), the Build America Bond Portfolio, Chinese Yuan Dim Sum Bond Portfolio, Fundamental Emerging Markets Local Debt Portfolio, Insured California Municipal Bond Portfolio, Insured National Municipal Bond Portfolio, Insured New York Municipal Bond Portfolio, International Corporate Bond Portfolio and VRDO Tax-Free Weekly Portfolio currently effect creations and redemptions principally for cash, rather than primarily in-kind because of the nature of the Funds’ investments. As such, investments in such Funds’ Shares may be less tax efficient than investments in conventional ETFs.

Foreign Investment Risk. 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 Funds 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 Funds’ returns.

Fund of Funds Risk. Because CEF Income Composite Portfolio is a fund of funds, its investment performance largely depends on the investment performance of the underlying funds in which it invests. An investment in the Fund is subject to the risks associated with the underlying funds that comprise its Underlying Index. The Fund will pay indirectly a proportional share of the fees and expenses of the underlying funds in which it invests, including their investment advisory and administration fees, while continuing to pay its own unitary management fee. As a result, shareholders will absorb duplicate levels of fees with respect to investments in the Underlying Funds. In addition, at times certain segments of the market represented by constituent underlying funds in its Underlying Index may be out of favor and underperform other segments.

Global Bonds Risk. Chinese Yuan Dim Sum Bond Portfolio, Emerging Markets Sovereign Debt Portfolio, Fundamental Emerging Markets Local Debt Portfolio, Global Short Term High Yield Bond Portfolio and International Corporate Bond Portfolio invest in global bonds. Global bonds are subject to the same risks as other debt issues, notably credit risk, market risk, interest rate risk and liquidity risk. Generally, investments in the securities of non-U.S. issuers involve risks beyond those associated with investments in U.S. securities. These additional risks include greater market volatility, the availability of less reliable financial information, higher transactional costs, taxation by foreign governments, decreased market liquidity and political instability. Foreign issuers often are subject to less stringent requirements regarding accounting, auditing, financial reporting and record keeping than are U.S. securities and, therefore, not all material information regarding these issuers will be available. Securities exchanges or foreign governments may adopt rules or regulations that may negatively impact a Fund’s ability to invest in foreign securities or may prevent the Fund from repatriating its investments. In addition, a Fund may not receive shareholder communications or be permitted to vote the securities that it holds, as the issuers may be under no legal obligation to distribute them.

High Yield Securities Risk. For Fundamental High Yield^® Corporate Bond Portfolio and Global Short Term High Yield Bond 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.

Municipal Securities Risk. Build America Bond Portfolio, Insured California Municipal Bond Portfolio, Insured National Municipal Bond Portfolio, Insured New York Municipal Bond Portfolio and VRDO Tax-Free Weekly Portfolio invest in municipal securities. Municipal securities are subject to the risk that litigation, legislation or other political events, local business or economic conditions or the bankruptcy of the issuer could have a significant effect on an issuer’s ability to make payments of principal and/or interest. In addition, there is a risk that, as a result of the recent economic crisis, the ability of any issuer to pay, when due, the principal or interest on its municipal bonds may be materially affected.

Political changes and uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal security holders can significantly affect municipal securities. Because many securities are issued to finance similar projects, especially those relating to education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal market. In addition, changes in the financial condition of an individual municipal issuer can affect the overall municipal market.

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Municipal securities backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the discontinuance of the taxation supporting the project or assets or the inability to collect revenues for the project or from the assets. If the Internal Revenue Service determines that an issuer of a municipal security has not complied with applicable tax requirements, interest from the security could become taxable and the security could decline significantly in value.

The market for municipal bonds may be less liquid than for taxable bonds. There also may be less information available on the financial condition of issuers of municipal securities than for public corporations. This means that it may be harder to buy and sell municipal securities, especially on short notice, and municipal securities may be more difficult for the Funds to value accurately than securities of public corporations. Since these Funds invest a significant portion of their portfolios in municipal securities, the Funds’ portfolios may have greater exposure to liquidity risk than funds that invest in non-municipal securities.

Sovereign Debt Risk. For Fundamental Emerging Markets Local Debt Portfolio and Global Short Term High Yield Bond Portfolio, risks of sovereign debt include the relative size of the debt burden to the economy as a whole and the government debtor’s policy towards the International Monetary Fund and the political constraints to which a government debtor may be subject. The governmental authority that controls the repayment of sovereign debt may be unwilling or unable to repay the principal and/or interest when due in accordance with the terms of such securities due to the extent of its foreign reserves. If an issuer of sovereign debt defaults on payments of principal and/or interest, the Fund may have limited legal recourse against the issuer and/or guarantor. In certain cases, remedies must be pursued in the courts of the defaulting party itself, and the Fund’s ability to obtain recourse may be limited.

Risks of Investing in Closed-End Funds. For CEF Income Composite Portfolio, the shares of closed-end funds may trade at a discount or premium to, or at, their NAV. To the extent that the Fund invests a portion of its assets in closed-end funds, those assets will be subject to the risks of the closed-end fund’s portfolio securities, and a shareholder in the Fund will bear not only his or her proportionate share of the expenses of the Fund, but also, indirectly, the expenses of the closed-end fund. The securities of closed-end funds in which the Fund may invest may be leveraged. As a result, the Fund may be exposed indirectly to leverage through an investment in such securities. An investment in securities of closed-end funds that use leverage may expose the Fund to higher volatility in the market value of such securities and the possibility that the Fund’s long-term returns on such securities (and, indirectly, the long-term returns of the Shares) will be diminished.

Preferred Stock Risk. Preferred stock is subject to issuer-specific and overall market risks that are generally applicable to equity securities as a whole; however, there are special risks associated with investing in preferred stock. Preferred stock may be less liquid than many other types of securities, such as common stock, and generally provides no voting rights with respect to the issuer. Preferred stock also may be subordinated to bonds or other debt instruments in an issuer’s capital structure, meaning that an issuer’s preferred stock generally pays dividends only after the issuer makes required payments to holders of its bonds and other debt. This subjects preferred stock to a greater risk of non-payment than more senior securities. Because of the subordinated position of preferred stock in an issuer’s capital structure, the ability to defer dividend or interest payments for extended periods of time without triggering an event of default for the issuer, and certain other features, its quality and value are heavily dependent on the profitability and cash flows of the issuer rather than on any legal claims to specific assets. Also, in certain circumstances, an issuer of a preferred stock may call or redeem it prior to a specified date or may convert it to common stock, all of which may negatively impact its return.

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 timing differences are primarily due to differing book and tax treatments for in-kind transactions, losses deferred due to wash sales, and passive foreign investment company adjustments, if any.

The Funds file 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. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes. Interest income is recorded on the accrual basis. Dividend income (net of withholding tax, if any) is recorded on the

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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.

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

E. Expenses

Each Fund 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 Funds, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses (including acquired fund fees and expenses, if any).

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.

F. Dividends and Distributions to Shareholders

Each Fund declares and pays dividends from net investment income, if any, to its shareholders monthly 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 period-end.

G. Foreign Currency Transactions

The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in currencies other than the U.S. dollar, are translated into U.S. dollars using the applicable exchange rates as of the close of London world markets. The effects of changes in foreign currency exchange rates on investments in securities are not segregated in the Statements of Operations from the effects of changes in market prices of those securities, but are included with the net realized and unrealized gain or loss on investments in securities. Certain foreign exchange gains and losses included in realized and unrealized gains or losses are included in or are a reduction of ordinary income in accordance with U.S. federal income tax regulations.

H. Securities Lending

Preferred Portfolio may lend portfolio securities having a market value up to one-third of the Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is invested in an affiliated money market fund and is shown as such on the Schedule of Investments. It is the policy of the Fund to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if, and to the extent that, the market value of the securities loaned were to increase, and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Securities lending income on the Statements of Operations. The aggregate value of securities out on loan is shown on the Statements of Assets and Liabilities, if any.

Note 3. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with the Adviser pursuant to which the Adviser has overall responsibility for the selection and ongoing monitoring of the Funds’ investments, managing the Funds’ business affairs and providing certain clerical, bookkeeping and other administrative services.

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As compensation for its services, each Fund has agreed to pay the Adviser an annual unitary management fee. Out of the unitary management fee, the Adviser has agreed to pay for substantially all expenses of the Funds, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses (including acquired fund fees and expenses, if any). The unitary management fee is paid by each Fund to the Adviser at the following annual rates:

	% of Average Daily Net Assets
1-30 Laddered Treasury Portfolio		0.25	%
Build America Bond Portfolio		0.28	%
CEF Income Composite Portfolio		0.50	%
Chinese Yuan Dim Sum Bond Portfolio		0.45	%
Emerging Markets Sovereign Debt Portfolio		0.50	%
Fundamental Emerging Markets Local Debt Portfolio		0.50	%
Fundamental High Yield® Corporate Bond Portfolio		0.50	%
Fundamental Investment Grade Corporate Bond Portfolio		0.22	%
Global Short Term High Yield Bond Portfolio		0.35	%
Insured California Municipal Bond Portfolio		0.28	%
Insured National Municipal Bond Portfolio		0.28	%
Insured New York Municipal Bond Portfolio		0.28	%
International Corporate Bond Portfolio		0.50	%
Preferred Portfolio		0.50	%
Variable Rate Preferred Portfolio		0.50	%
VRDO Tax-Free Weekly Portfolio		0.25	%

Further, through August 31, 2015, the Adviser has contractually agreed to waive a portion of the 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.

For the six-month period ended April 30, 2014, the Adviser waived fees for each Fund, in the following amounts:

1-30 Laddered Treasury Portfolio	$	214
Build America Bond Portfolio		8,082
CEF Income Composite Portfolio		638
Chinese Yuan Dim Sum Bond Portfolio		3,485
Emerging Markets Sovereign Debt Portfolio		7,921
Fundamental Emerging Markets Local Debt Portfolio		3
Fundamental High Yield® Corporate Bond Portfolio		2,700
Fundamental Investment Grade Corporate Bond Portfolio		97
Global Short Term High Yield Bond Portfolio		273
Insured California Municipal Bond Portfolio		—
Insured National Municipal Bond Portfolio		—
Insured New York Municipal Bond Portfolio		—
International Corporate Bond Portfolio		68
Preferred Portfolio		3,688
Variable Rate Preferred Portfolio		—
VRDO Tax-Free Weekly Portfolio		—

For the fiscal year ended October 31, 2013, Fundamental Emerging Markets Local Debt Portfolio received payments from service providers of $65,046 related to the economic impact of a transaction.

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

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

Fund	Licensor
1-30 Laddered Treasury Portfolio	NASDAQ OMX Group, Inc.
Build America Bond Portfolio	Merrill Lynch, Pierce, Fenner & Smith Inc.
CEF Income Composite Portfolio	S-Network Global Indexes, LLC
Chinese Yuan Dim Sum Bond Portfolio	Citigroup Index LLC
Emerging Markets Sovereign Debt Portfolio	Deutsche Bank Securities, Inc.
Fundamental Emerging Markets Local Debt Portfolio	Citigroup Index, LLC
Fundamental High Yield® Corporate Bond Portfolio	Research Affiliates®
Fundamental Investment Grade Corporate Bond Portfolio	Research Affiliates®
Global Short Term High Yield Bond Portfolio	Deutsche Bank Securities, Inc.
Insured California Municipal Bond Portfolio	Merrill Lynch, Pierce, Fenner & Smith Inc.
Insured National Municipal Bond Portfolio	Merrill Lynch, Pierce, Fenner & Smith Inc.
Insured New York Municipal Bond Portfolio	Merrill Lynch, Pierce, Fenner & Smith Inc.
International Corporate Bond Portfolio	Standard & Poor’s®
Preferred Portfolio	Merrill Lynch, Pierce, Fenner & Smith Inc.
Variable Rate Preferred Portfolio	Wells Fargo LLC and Wells Fargo & Company
VRDO Tax-Free Weekly Portfolio	Bloomberg Finance L.P.

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 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

Each Fund’s Adviser and the adviser for Invesco Bond Fund and Invesco Senior Income Trust are wholly-owned subsidiaries of Invesco Ltd., and therefore are considered to be affiliated. The table below shows the Fund’s transactions in, and earnings from, its investments in Invesco Bond Fund and Invesco Senior Income Trust for the six-month period ended April 30, 2014.

CEF Income Composite Portfolio

	Value October 31, 2013		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)			Value April 30, 2014		Dividend Income
Invesco Bond Fund	$	1,406,164	$	267,146	$	(218,614	)	$	72,729		$	(22,489	)(a)	$	1,504,936	$	40,170
Invesco Senior Income Trust		3,421,181		1,250,145		(59,452	)		(212,298	)		(5,160	)		4,394,416		120,646
Total Investments in Affiliates	$	4,827,345	$	1,517,291	$	(278,066	)	$	(139,569	)	$	(27,649	)	$	5,899,352	$	160,816

^(a) Includes $17,544 of capital gains distributions from affiliated underlying funds.

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 the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

Except for the CEF Income Composite Portfolio, Preferred Portfolio and the Funds listed below, as of April 30, 2014, all of the securities in each Fund were valued based on Level 2 inputs (see the Schedule of Investments for security categories). All of the securities in CEF Income Composite Portfolio and Preferred Portfolio were valued based on Level 1 inputs (see the Schedule of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Investments in Securities
	Level 1		Level 2		Level 3		Total
1-30 Laddered Treasury Portfolio
U.S. Treasury Securities	$	—	$	249,589,253	$	—	$	249,589,253
Money Market Fund		631,518		—		—		631,518
Total Investments	$	631,518	$	249,589,253	$	—	$	250,220,771
Build America Bond Portfolio
Municipal Obligations	$	—	$	623,561,361	$	—	$	623,561,361
Money Market Fund		29,242,308		—		—		29,242,308
Total Investments	$	29,242,308	$	623,561,361	$	—	$	652,803,669
Chinese Yuan Dim Sum Bond Portfolio
Foreign Corporate Debt Securities	$	—	$	153,068,976	$	—	$	153,068,976
Foreign Government Debt Securities		—		29,490,757		—		29,490,757
Money Market Fund		1,147,533		—		—		1,147,533
Total Investments	$	1,147,533	$	182,559,733	$	—	$	183,707,266
Emerging Markets Sovereign Debt Portfolio
Foreign Government Debt Securities	$	—	$	1,966,022,371	$	—	$	1,966,022,371
Money Market Fund		9,849,108		—		—		9,849,108
Total Investments	$	9,849,108	$	1,966,022,371	$	—	$	1,975,871,479
Fundamental High Yield® Corporate Bond Portfolio
Corporate Debt Securities	$	—	$	642,022,243	$	—	$	642,022,243
Money Market Fund		1,315,533		—		—		1,315,533
Total Investments	$	1,315,533	$	642,022,243	$	—	$	643,337,776
Fundamental Investment Grade Corporate Bond Portfolio
Corporate Debt Securities	$	—	$	26,319,246	$	—	$	26,319,246
Money Market Fund		112,850		—		—		112,850
Total Investments	$	112,850	$	26,319,246	$	—	$	26,432,096
Global Short Term High Yield Bond Portfolio
Foreign Corporate Debt Securities	$	—	$	24,854,547	$	—	$	24,854,547
Foreign Government Debt Securities		—		3,921,638		—		3,921,638
Money Market Fund		374,091		—		—		374,091
Total Investments	$	374,091	$	28,776,185	$	—	$	29,150,276
Variable Rate Preferred Portfolio
Corporate Debt Securities	$	—	$	3,292,188	$	—	$	3,292,188
Preferred Stocks		4,118,254		—		—		4,118,254
Money Market Fund		25		—		—		25
Total Investments	$	4,118,279	$	3,292,188	$	—	$	7,410,467

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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 carryforward) 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 carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Funds to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in 8 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 carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The following Funds had capital loss carryforwards as of October 31, 2013, which expire as follows:

									Post-effective no expiration
	2016		2017		2018		2019		Short-term		Long-term		Total*		Utilized		Expired
1-30 Laddered Treasury Portfolio	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Build America Bond Portfolio		—		—		6,399		—		1,843,673		1,015,711		2,865,783		—		—
CEF Income Composite Portfolio		—		—		—		1,538,035		—		—		1,538,035		1,531,725		—
Chinese Yuan Dim Sum Bond Portfolio		—		—		—		—		244,137		—		244,137		—		—
Emerging Markets Sovereign Debt Portfolio		531,185		558,313		212,582		818,907		5,970,826		3,814,434		11,906,247		—		—
Fundamental Emerging Markets Local Debt Portfolio		—		—		—		—		177,279		—		177,279		—		—
Fundamental High Yield® Corporate Bond Portfolio		—		—		—		—		4,556,777		1,386,064		5,942,841		—		—
Fundamental Investment Grade Corporate Bond Portfolio		—		—		—		—		—		—		—		—		—
Global Short Term High Yield Bond Portfolio		—		—		—		—		14,899		—		14,899		—		—
Insured California Municipal Bond Portfolio		—		—		—		438,783		—		13,929		452,712		—		—
Insured National Municipal Bond Portfolio		—		—		—		3,919,330		689,909		—		4,609,239		—		—
Insured New York Municipal Bond Portfolio		136,120		125,849		—		74,902		287,266		180,356		804,493		—		—
International Corporate Bond Portfolio		—		—		—		—		—		—		—		—		—
Preferred Portfolio		—		37,146,794		—		—		3,901,101		—		41,047,895		—		—
VRDO Tax-Free Weekly Portfolio		—		—		—		—		—		—		—		—		—

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

Note 7. Investment Transactions

For the six-month period ended April 30, 2014, the cost of securities purchased and proceeds from sales of securities, excluding short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, were as follows:

	Purchases		Sales
Build America Bond Portfolio	$	18,126,616	$	75,276,471
CEF Income Composite Portfolio		62,559,559		62,304,777
Chinese Yuan Dim Sum Bond Portfolio		93,425,146		12,192,000
Emerging Markets Sovereign Debt Portfolio		185,142,680		159,934,229

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	Purchases		Sales
Fundamental Emerging Markets Local Debt Portfolio	$	52,891	$	45,900
Fundamental High Yield® Corporate Bond Portfolio		65,375,674		57,875,864
Fundamental Investment Grade Corporate Bond Portfolio		1,465,898		1,463,505
Global Short Term High Yield Bond Portfolio		8,363,968		2,787,129
Insured California Municipal Bond Portfolio		—		11,088,306
Insured National Municipal Bond Portfolio		59,355,809		43,004,016
Insured New York Municipal Bond Portfolio		1,419,624		5,321,859
International Corporate Bond Portfolio		58,747,920		3,368,712
Preferred Portfolio		182,056,314		169,206,018
Variable Rate Preferred Portfolio		7,407,394		—
VRDO Tax-Free Weekly Portfolio		—		—

For the six-month period ended April 30, 2014, the cost of securities purchased and the proceeds from sales of U.S. government securities, excluding short-term securities, money market funds and in-kind transactions, for the 1-30 Laddered Treasury Portfolio amounted to $8,124,091 and $7,193,211, respectively.

For the six-month period ended April 30, 2014, in-kind transactions associated with creations and redemptions were as follows:

	Cost of Securities Received		Value of Securities Delivered
1-30 Laddered Treasury Portfolio	$	102,751,878	$	8,909,675
Build America Bond Portfolio		—		—
CEF Income Composite Portfolio		94,765,385		3,685,339
Chinese Yuan Dim Sum Bond Portfolio		—		—
Emerging Markets Sovereign Debt Portfolio		194,957,810		233,407,718
Fundamental Emerging Markets Local Debt Portfolio		—		—
Fundamental High Yield® Corporate Bond Portfolio		90,789,249		73,942,539
Fundamental Investment Grade Corporate Bond Portfolio		1,264,588		8,483,195
Global Short Term High Yield Bond Portfolio		8,525,982		—
Insured California Municipal Bond Portfolio		—		—
Insured National Municipal Bond Portfolio		—		—
Insured New York Municipal Bond Portfolio		—		—
International Corporate Bond Portfolio		13,589,281		—
Preferred Portfolio		125,522,568		166,171,928
Variable Rate Preferred Portfolio		—		—
VRDO Tax-Free Weekly Portfolio		—		—

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

At April 30, 2014, 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.

	Cost		Net Unrealized Appreciation (Depreciation)			Gross Unrealized Appreciation		Gross Unrealized (Depreciation)
1-30 Laddered Treasury Portfolio	$	245,999,975	$	4,220,796			4,795,899	$	(575,103	)
Build America Bond Portfolio		604,401,006		48,402,663			52,471,335		(4,068,672	)
CEF Income Composite Portfolio		562,187,664		15,035,137			31,427,052		(16,391,915	)
Chinese Yuan Dim Sum Bond Portfolio		188,734,748		(5,027,482	)		129,130		(5,156,612	)
Emerging Markets Sovereign Debt Portfolio		2,076,810,473		(100,938,994	)		12,495,529		(113,434,523	)
Fundamental Emerging Markets Local Debt Portfolio		4,898,375		(667,983	)		36,791		(704,774	)
Fundamental High Yield® Corporate Bond Portfolio		624,492,808		18,844,968			20,884,641		(2,039,673	)
Fundamental Investment Grade Corporate Bond Portfolio		26,224,134		207,962			424,983		(217,021	)
Global Short Term High Yield Bond Portfolio		29,157,231		(6,955	)		304,596		(311,551	)

102

	Cost		Net Unrealized Appreciation (Depreciation)		Gross Unrealized Appreciation		Gross Unrealized (Depreciation)
Insured California Municipal Bond Portfolio	$	47,951,359	$	1,743,888	$	2,520,521	$	(776,633	)
Insured National Municipal Bond Portfolio		564,315,116		25,434,950		32,023,314		(6,588,364	)
Insured New York Municipal Bond Portfolio		43,295,576		465,027		1,878,246		(1,413,219	)
International Corporate Bond Portfolio		214,000,378		13,771,292		15,575,167		(1,803,875	)
Preferred Portfolio		2,147,952,067		22,229,953		65,803,873		(43,573,920	)
Variable Rate Preferred Portfolio		7,407,419		3,048		15,881		(12,833	)
VRDO Tax-Free Weekly Portfolio		147,625,000		—		—		—

Note 8. Trustees’ and Officer’s Fees

Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to each Trustee who is not an “interested person” as defined in the 1940 Act (an “Independent Trustee”) and Officer of the Funds. The Adviser, as a result of each Fund’s unitary management fee, pays for such compensation. The Trustee who is an “interested person” (the “Non-Independent Trustee”) of the Trust does not receive any Trustees’ fees.

The Trust has adopted a deferred compensation plan (the “Plan”). Under the Plan, an Independent Trustee who has executed a Deferred Fee Agreement (a “Participating Trustee”) may defer receipt of all or a portion of his compensation (“Deferral Fees”). Such Deferral Fees are deemed to be invested in select PowerShares Funds. The Deferral Fees payable to the Participating Trustee are valued as of the date such Deferral Fees would have been paid to the Participating Trustee. The value increases with contributions or with increases in the value of the Shares selected, and the value decreases with distributions or with declines in the value of the Shares selected. Obligations under the deferred compensation 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 (100,000 Shares for Emerging Markets Sovereign Debt Portfolio, Fundamental High Yield^® Corporate Bond Portfolio and Variable Rate Preferred Portfolio). Only Authorized Participants are permitted to purchase or redeem Creation Units from the Funds. 1-30 Laddered Treasury Portfolio, CEF Income Composite Portfolio, Emerging Markets Sovereign Debt Portfolio, Fundamental High Yield^® Corporate Bond Portfolio, Fundamental Investment Grade Corporate Bond Portfolio, Global Short Term High Yield Bond Portfolio, Preferred Portfolio and Variable Rate Preferred Portfolio are generally 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. For Build America Bond Portfolio, Chinese Yuan Dim Sum Bond Portfolio, Fundamental Emerging Markets Local Debt Portfolio, Insured California Municipal Bond Portfolio, Insured National Municipal Bond Portfolio, Insured New York Municipal Bond Portfolio, International Corporate Bond Portfolio and VRDO Tax-Free Weekly Portfolio, such transactions are in exchange for the deposit or delivery of cash.

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 each Fund’s Participant Agreement, Creation Units will be issued to an Authorized Participant, notwithstanding the fact that the corresponding Deposit Securities have not been received in part or in whole, in reliance on the undertaking of the Authorized Participant to deliver the missing Deposit Securities as soon as possible, which undertaking shall be secured by the Authorized Participant’s delivery and maintenance of collateral consisting of cash in the form of U.S. dollars in immediately available funds having a value (marked-to-market daily) at least equal to 105%, which the Adviser may change from time to time, of the value of the missing Deposit Securities.

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

Chinese Yuan Dim Sum Bond Portfolio, Fundamental Emerging Markets Local Debt Portfolio, Insured California Municipal Bond Portfolio and International Corporate Bond Portfolio charge certain transaction fees for creations and redemptions, which are treated as increases in capital, which are shown in the Statements of Changes in Net Assets as Transaction fees.

Note 10. Indemnifications

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

103

Fees and Expenses

As a shareholder of a Fund of the PowerShares Exchange-Traded Fund Trust II, 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, litigation expenses and other extraordinary expenses (including acquired fund fees and expenses, if any). 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 (or shorter) period ended April 30, 2014.

In addition to the fees and expenses which the PowerShares CEF Income Composite 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 you bear indirectly are included in the Portfolio’s total returns.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

	Beginning Account Value November 1, 2013		Ending Account Value April 30, 2014		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period(1)
PowerShares 1-30 Laddered Treasury Portfolio (PLW)
Actual	$	1,000.00	$	1,023.28		0.25	%	$	1.25
Hypothetical (5% return before expenses)		1,000.00		1,023.55		0.25			1.25
PowerShares Build America Bond Portfolio (BAB)
Actual		1,000.00		1,062.82		0.28			1.43
Hypothetical (5% return before expenses)		1,000.00		1,023.41		0.28			1.40
PowerShares CEF Income Composite Portfolio (PCEF)
Actual		1,000.00		1,069.30		0.50			2.57
Hypothetical (5% return before expenses)		1,000.00		1,022.32		0.50			2.51
PowerShares Chinese Yuan Dim Sum Bond Portfolio (DSUM)
Actual		1,000.00		988.86		0.45			2.22
Hypothetical (5% return before expenses)		1,000.00		1,022.56		0.45			2.26

104

Fees and Expenses (continued)

	Beginning Account Value November 1, 2013		Ending Account Value April 30, 2014		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period(1)
PowerShares Emerging Markets Sovereign Debt Portfolio (PCY)
Actual	$	1,000.00	$	1,034.88		0.50	%	$	2.52
Hypothetical (5% return before expenses)		1,000.00		1,022.32		0.50			2.51
PowerShares Fundamental Emerging Markets Local Debt Portfolio (PFEM)
Actual		1,000.00		974.79		0.50			2.45
Hypothetical (5% return before expenses)		1,000.00		1,022.32		0.50			2.51
PowerShares Fundamental High Yield® Corporate Bond Portfolio (PHB)
Actual		1,000.00		1,035.71		0.50			2.52
Hypothetical (5% return before expenses)		1,000.00		1,022.32		0.50			2.51
PowerShares Fundamental Investment Grade Corporate Bond Portfolio (PFIG)
Actual		1,000.00		1,022.91		0.22			1.10
Hypothetical (5% return before expenses)		1,000.00		1,023.70		0.22			1.10
PowerShares Global Short Term High Yield Bond Portfolio (PGHY)
Actual		1,000.00		1,019.17		0.35			1.75
Hypothetical (5% return before expenses)		1,000.00		1,023.06		0.35			1.76
PowerShares Insured California Municipal Bond Portfolio (PWZ)
Actual		1,000.00		1,073.09		0.24			1.23
Hypothetical (5% return before expenses)		1,000.00		1,023.60		0.24			1.20
PowerShares Insured National Municipal Bond Portfolio (PZA)
Actual		1,000.00		1,064.18		0.28			1.43
Hypothetical (5% return before expenses)		1,000.00		1,023.41		0.28			1.40
PowerShares Insured New York Municipal Bond Portfolio (PZT)
Actual		1,000.00		1,069.52		0.24			1.23
Hypothetical (5% return before expenses)		1,000.00		1,023.60		0.24			1.20
PowerShares International Corporate Bond Portfolio (PICB)
Actual		1,000.00		1,041.95		0.50			2.53
Hypothetical (5% return before expenses)		1,000.00		1,022.32		0.50			2.51
PowerShares Preferred Portfolio (PGX)
Actual		1,000.00		1,080.88		0.50			2.58
Hypothetical (5% return before expenses)		1,000.00		1,022.32		0.50			2.51
PowerShares Variable Rate Preferred Portfolio (VRP)(2)
Actual		1,000.00		1,000.80		0.50			0.04
Hypothetical (5% return before expenses)		1,000.00		1,022.32		0.50			2.51
PowerShares VRDO Tax-Free Weekly Portfolio (PVI)
Actual		1,000.00		999.60		0.25			1.24
Hypothetical (5% return before expenses)		1,000.00		1,023.55		0.25			1.25

⁽¹⁾  Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six-month period ended April 30, 2014. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 181/365.

⁽²⁾  Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the period April 28, 2014 (Commencement of Investment Operations) through April 30, 2014. Actual expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 3/365. Hypothetical expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 181/365.

105

Board Considerations Regarding Continuation of Investment Advisory

Agreement and Sub-Advisory Agreement

At a meeting held on April 17, 2014, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust II (the “Trust”), including the Independent Trustees, approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the “Adviser”) and the Trust for the following 58 series (each, a “Fund” and collectively, the “Funds”):

PowerShares 1-30 Laddered Treasury Portfolio

PowerShares Aggregate Bond Portfolio

PowerShares Build America Bond Portfolio

PowerShares CEF Income Composite Portfolio

PowerShares Chinese Yuan Dim Sum Bond Portfolio

PowerShares DWA Developed Markets Momentum Portfolio

PowerShares DWA Emerging Markets Momentum Portfolio

PowerShares DWA SmallCap Momentum Portfolio

PowerShares Emerging Markets Infrastructure Portfolio

PowerShares Emerging Markets Sovereign Debt Portfolio

PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio

PowerShares FTSE RAFI Emerging Markets Portfolio

PowerShares Fundamental Emerging Markets Local Debt Portfolio

PowerShares Fundamental High Yield^® Corporate Bond Portfolio

PowerShares Fundamental Investment Grade Corporate Bond Portfolio

PowerShares Global Agriculture Portfolio

PowerShares Global Clean Energy Portfolio

PowerShares Global Gold and Precious Metals Portfolio

PowerShares Global Short Term High Yield Bond Portfolio

PowerShares Global Water Portfolio

PowerShares Insured California Municipal Bond Portfolio

PowerShares Insured National Municipal Bond Portfolio

PowerShares Insured New York Municipal Bond Portfolio

PowerShares International BuyBack Achievers^TM Portfolio*

PowerShares International Corporate Bond Portfolio

PowerShares KBW Bank Portfolio

PowerShares KBW Capital Markets Portfolio

PowerShares KBW High Dividend Yield Financial Portfolio

PowerShares KBW Insurance Portfolio

PowerShares KBW Premium Yield Equity REIT Portfolio

PowerShares KBW Property & Casualty Insurance Portfolio

PowerShares KBW Regional Banking Portfolio

PowerShares NYSE Century Portfolio*

PowerShares Preferred Portfolio

PowerShares S&P 500^® High Beta Portfolio

PowerShares S&P 500^® High Dividend Portfolio

PowerShares S&P 500^® High Momentum Portfolio

PowerShares S&P 500^® Low Volatility Portfolio

PowerShares S&P Emerging Markets High Beta Portfolio

PowerShares S&P Emerging Markets Low Volatility Portfolio

PowerShares S&P International Developed High Beta Portfolio

PowerShares S&P International Developed High Quality Portfolio

PowerShares S&P International Developed Low Volatility Portfolio

PowerShares S&P MidCap Low Volatility Portfolio

PowerShares S&P SmallCap Consumer Discretionary Portfolio

PowerShares S&P SmallCap Consumer Staples Portfolio

PowerShares S&P SmallCap Energy Portfolio

PowerShares S&P SmallCap Financials Portfolio

PowerShares S&P SmallCap Health Care Portfolio

PowerShares S&P SmallCap Industrials Portfolio

PowerShares S&P SmallCap Information Technology Portfolio

PowerShares S&P SmallCap Low Volatility Portfolio

PowerShares S&P SmallCap Materials Portfolio

PowerShares S&P SmallCap Utilities Portfolio

PowerShares Senior Loan Portfolio

PowerShares VRDO Tax-Free Weekly Portfolio

* The Trustees previously approved the initial Investment Advisory Agreement at a meeting held on December 17, 2013.

Also at the April 17, 2014 meeting, the Board of Trustees of the Trust, including the Independent Trustees, approved the continuation of the Investment Sub-Advisory Agreement between the Adviser and the following eight affiliated sub-advisers for PowerShares Senior Loan Portfolio (the “Sub-Advisory Agreement”): Invesco Advisers, Inc.; Invesco Asset Management Deutschland, GmbH; Invesco Asset Management Limited; Invesco Asset Management (Japan) Limited; Invesco Australia Limited; Invesco Hong Kong Limited; Invesco Senior Secured Management, Inc.; and Invesco Canada Ltd. (each, a “Sub-Adviser” and collectively, the “Sub-Advisers”).

The Trustees reviewed information from the Adviser describing: (i) the nature, extent and quality of services provided, (ii) the investment performance of the Funds and the Adviser, (iii) the costs of services provided and estimated profits realized by the Adviser, (iv) the extent to which economies of scale are realized as a Fund grows, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered to and amounts paid by other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with each Fund. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board’s analysis.

106

Board Considerations Regarding Continuation of Investment Advisory

Agreement and Sub-Advisory Agreement (continued)

Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser’s services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser’s current organization and staffing, including operational support provided by the Adviser’s parent organization, Invesco Ltd., and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser’s execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds (other than PowerShares Aggregate Bond Portfolio and PowerShares S&P 500^® High Momentum Portfolio, which Funds had not commenced operations as of April 17, 2014), their underlying indexes and their primary benchmarks for the one-year, three-year, five-year and since-inception periods ended December 31, 2013, as applicable, including reports for each of those periods on the correlation and tracking error between each Fund’s performance and the performance of its underlying index, as well as the Adviser’s analysis of the tracking error between each Fund and its underlying index. In reviewing the tracking error report, the Trustees considered information provided by Ibbotson Associates, a consultant to the Independent Trustees, with respect to general expected tracking error ranges and various explanations for any tracking error. The Trustees noted that for each applicable period, the correlation for each Fund, other than the five-year period for PowerShares Fundamental High Yield Corporate Bond Portfolio, the since-inception period for PowerShares Global Short Term High Yield Bond Portfolio, the one- and three-year periods for PowerShares Insured New York Municipal Bond Portfolio and the one-, three- and five-year periods for PowerShares VRDO Tax-Free Weekly Portfolio, was within the targeted range set forth in the Trust’s registration statement. The Trustees reviewed the reasons provided by the Adviser for PowerShares Global Short Term High Yield Bond Portfolio’s, PowerShares Insured New York Municipal Bond Portfolio’s, PowerShares Fundamental High Yield Corporate Bond Portfolio’s and PowerShares VRDO Tax-Free Weekly Portfolio’s level of correlation to its underlying index, as well as the Adviser’s expectations for such Fund’s correlation going forward. The Trustees noted that for each applicable period, the tracking error for each Fund was within the targeted range set forth in the Trust’s registration statement and concluded that each Fund’s correlation to its underlying index and the tracking error for each Fund were within an acceptable range given that Fund’s particular circumstances.

The Trustees also considered the services provided by the Adviser in its oversight of the Funds’ administrator, custodian and transfer agent. They noted the significant amount of time, effort and resources that had been devoted to this oversight function.

Based on their review, the Trustees concluded that the nature, extent and quality of services provided by the Adviser to the Funds under the Investment Advisory Agreement were appropriate and reasonable.

Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser on each Fund’s net expense ratio and unitary advisory fee, as compared to information compiled by the Adviser from Lipper Inc. databases on the net expense ratios of comparable exchange-traded funds (“ETFs”), open-end (non-ETF) index funds and open-end actively-managed funds. The Trustees noted that the annual advisory fee charged to each Fund, as set forth below, is a unitary fee and that the Adviser pays all other operating expenses of each Fund, including the fees payable to the Sub-Advisers for PowerShares Senior Loan Portfolio, except that each Fund pays its brokerage expenses, taxes, interest (including for PowerShares Senior Loan Portfolio, interest expenses associated with its line of credit), litigation expenses and other extraordinary expenses.

— 0.22%: PowerShares Fundamental Investment Grade Corporate Bond Portfolio

— 0.25%: PowerShares 1-30 Laddered Treasury Portfolio, PowerShares Aggregate Bond Portfolio, PowerShares S&P 500^® High Beta Portfolio, PowerShares S&P 500^® High Momentum Portfolio, PowerShares S&P 500^® Low Volatility Portfolio, PowerShares S&P MidCap Low Volatility Portfolio, PowerShares S&P SmallCap Low Volatility Portfolio, PowerShares VRDO Tax-Free Weekly Portfolio

— 0.28%: PowerShares Build America Bond Portfolio, PowerShares Insured California Municipal Bond Portfolio, PowerShares Insured National Municipal Bond Portfolio, PowerShares Insured New York Municipal Bond Portfolio

— 0.29%: PowerShares S&P SmallCap Consumer Discretionary, PowerShares S&P SmallCap Consumer Staples Portfolio, PowerShares S&P SmallCap Energy Portfolio, PowerShares S&P SmallCap Financials Portfolio, PowerShares S&P SmallCap Health Care Portfolio, PowerShares S&P SmallCap Industrials Portfolio, PowerShares S&P SmallCap Information Technology Portfolio, PowerShares S&P SmallCap Materials Portfolio, PowerShares S&P SmallCap Utilities Portfolio

— 0.30%: PowerShares S&P 500^® High Dividend Portfolio

— 0.35%: PowerShares Global Short Term High Yield Bond Portfolio, PowerShares KBW Bank Portfolio, PowerShares KBW Capital Markets Portfolio, PowerShares KBW High Dividend Yield Financial Portfolio, PowerShares KBW Insurance Portfolio, PowerShares KBW Premium Yield Equity REIT Portfolio, PowerShares KBW Property & Casualty Insurance Portfolio, PowerShares KBW Regional Banking Portfolio, PowerShares S&P International Developed High Beta Portfolio, PowerShares S&P International Developed Low Volatility Portfolio

107

Board Considerations Regarding Continuation of Investment Advisory

Agreement and Sub-Advisory Agreement (continued)

— 0.45%: PowerShares Chinese Yuan Dim Sum Bond Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio, PowerShares S&P Emerging Markets High Beta Portfolio, PowerShares S&P Emerging Markets Low Volatility Portfolio, PowerShares S&P International Developed High Quality Portfolio

— 0.49%: PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio, PowerShares FTSE RAFI Emerging Markets Portfolio

— 0.50%: PowerShares CEF Income Composite Portfolio, PowerShares Emerging Markets Sovereign Debt Portfolio, PowerShares Fundamental Emerging Markets Local Debt Portfolio, PowerShares Fundamental High Yield^® Corporate Bond Portfolio, PowerShares International Corporate Bond Portfolio, PowerShares NYSE Century Portfolio, PowerShares Preferred Portfolio

— 0.55% PowerShares International BuyBack Achievers^TM Portfolio

— 0.60%: PowerShares DWA SmallCap Momentum Portfolio

— 0.65%: PowerShares Senior Loan Portfolio

— 0.75%: PowerShares Emerging Markets Infrastructure Portfolio, PowerShares Global Agriculture Portfolio, PowerShares Global Clean Energy Portfolio, PowerShares Global Gold and Precious Metals Portfolio, PowerShares Global Water Portfolio

— 0.80%: PowerShares DWA Developed Markets Momentum Portfolio

— 0.90%: PowerShares DWA Emerging Markets Momentum Portfolio

The Trustees noted that the Adviser represented that it does not serve as the investment adviser to any clients, other than other ETFs also overseen by the Trustees, with comparable investment strategies as the Funds, but that the Adviser provides sub-advisory services to clients with comparable investment strategies as certain of the Funds. The Trustees further noted the Adviser’s explanation with respect to the sub-advisory fees it receives for such services in comparison to the advisory fees charged to the Funds. The Trustees noted that each Fund’s advisory fee was:

— equal to or lower than the median net expense ratio of its ETF peer funds (except for the advisory fee of each of PowerShares 1-30 Laddered Treasury Portfolio, PowerShares Aggregate Bond Portfolio, PowerShares CEF Income Composite Portfolio, PowerShares DWA Emerging Markets Momentum Portfolio, PowerShares DWA SmallCap Momentum Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio, PowerShares Fundamental High Yield^® Corporate Bond Portfolio, PowerShares Fundamental Investment Grade Corporate Bond Portfolio PowerShares Global Agriculture Portfolio, PowerShares Global Clean Energy Portfolio, PowerShares Global Gold and Precious Metals Portfolio, PowerShares Global Water Portfolio, PowerShares Insured California Municipal Bond Portfolio, PowerShares Insured National Municipal Bond Portfolio, PowerShares Insured New York Municipal Bond Portfolio, PowerShares International BuyBack Achievers^TM Portfolio, PowerShares International Corporate Bond Portfolio, PowerShares NYSE Century Portfolio, PowerShares S&P International Developed Low Volatility Portfolio, PowerShares S&P International Developed High Beta Portfolio, PowerShares S&P International Developed High Quality Portfolio, PowerShares Senior Loan Portfolio and PowerShares VRDO Tax-Free Weekly Portfolio, which were higher than the median net expense ratio of its ETF peer funds); and

— equal to or lower than the median net expense ratio of its open-end index peer funds (except for the advisory fee of each of PowerShares 1-30 Laddered Treasury Portfolio, PowerShares Aggregate Bond Portfolio, PowerShares DWA Emerging Markets Momentum Portfolio, PowerShares DWA SmallCap Momentum Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio, PowerShares Fundamental Investment Grade Corporate Bond Portfolio, PowerShares KBW Premium Yield Equity REIT Portfolio and PowerShares S&P International Developed Low Volatility Portfolio, which was higher than the median net expense ratio of its open-end index peer funds; and there was no comparable data for PowerShares Build America Bond Portfolio, PowerShares Chinese Yuan Dim Sum Bond Portfolio, PowerShares DWA Developed Markets Momentum Portfolio, PowerShares Emerging Markets Infrastructure Portfolio, PowerShares Emerging Markets Sovereign Debt Portfolio, PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio, PowerShares Fundamental Emerging Markets Local Debt Portfolio, PowerShares Fundamental High Yield^® Corporate Bond Portfolio, PowerShares Global Agriculture Portfolio, PowerShares Global Clean Energy Portfolio, PowerShares Global Gold and Precious Metals Portfolio, PowerShares Global Short Term High Yield Bond Portfolio, PowerShares Global Water Portfolio, PowerShares Insured California Municipal Bond Portfolio, PowerShares Insured National Municipal Bond Portfolio, PowerShares Insured New York Municipal Bond Portfolio, PowerShares International Corporate Bond Portfolio, PowerShares KBW Bank Portfolio, PowerShares KBW Capital Markets Portfolio, PowerShares KBW High Dividend Yield Financial Portfolio, PowerShares KBW Insurance Portfolio, PowerShares KBW Property & Casualty Insurance Portfolio, PowerShares KBW Regional Banking Portfolio, PowerShares Preferred Portfolio, PowerShares S&P SmallCap Consumer Discretionary Portfolio, PowerShares S&P SmallCap Consumer Staples Portfolio, PowerShares S&P SmallCap Energy Portfolio, PowerShares S&P

108

Board Considerations Regarding Continuation of Investment Advisory

Agreement and Sub-Advisory Agreement (continued)

SmallCap Financials Portfolio, PowerShares S&P SmallCap Health Care Portfolio, PowerShares S&P SmallCap Industrials Portfolio, PowerShares S&P SmallCap Materials Portfolio, PowerShares Senior Loan Portfolio or PowerShares VRDO Tax-Free Weekly Portfolio); but

— lower than the median expense ratio of its open-end actively-managed peer funds.

The Trustees also considered that, during the period, certain Funds incurred other expenses excluded from those Funds’ unitary advisory fees, such that those Funds’ net expense ratios were in excess of the Funds’ unitary advisory fees. The Trustees noted the Adviser’s belief that such expenses were not expected to be incurred at that level going forward. The Trustees considered that the Adviser had agreed to waive a portion of its advisory fee, at least until February 28, 2016, for PowerShares S&P Emerging Markets High Beta Portfolio, PowerShares S&P Emerging Markets Low Volatility Portfolio, PowerShares S&P International Developed High Beta Portfolio and PowerShares S&P International Developed Low Volatility Portfolio. The Trustees determined that each Fund’s advisory fee was reasonable because of the complexity of the indexes, the distinguishing factors of the Funds and the administrative, operational and management oversight costs for the Adviser. The Trustees also noted that a portion of each Fund’s advisory fee was attributable to a license fee payable out of the unitary fee charged to that Fund. The Board concluded that the unitary advisory fee charged to each Fund was reasonable and appropriate in light of the services provided.

In conjunction with their review of the unitary advisory fee, the Trustees also considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement. The Trustees reviewed information provided by the Adviser on its profitability, as well as any profits or losses realized by the Adviser from its relationship to each Fund. The Trustees concluded that the estimated profitability to the Adviser of the advisory services provided to any of the Funds was not unreasonable.

Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. The Trustees reviewed the information provided by the Adviser as to the extent to which economies of scale are realized as each Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees reviewed each Fund’s asset size and expense ratio. The Trustees noted that any reduction in fixed costs associated with the management of the Funds would be enjoyed by the Adviser, but a unitary fee provides a level of certainty in expenses for the Funds. The Trustees considered whether the advisory fee rate for each Fund was reasonable in relation to the asset size of that Fund, and concluded that the flat advisory fee was reasonable and appropriate.

The Trustees noted that the Adviser had not identified any further benefits that it derived from its relationship with the Funds and had noted that it does not have any soft-dollar arrangements.

Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund.

Investment Sub-Advisory Agreement

As noted above, the Board of Trustees of the Trust, including the Independent Trustees, approved the continuation of the Sub-Advisory Agreement for the PowerShares Senior Loan Portfolio at a meeting held on April 17, 2014. The review process followed by the Board is described in detail above. In connection with the review of the Sub-Advisory Agreement, the Board considered the factors described below, among others.

Nature, Extent and Quality of Services. The Trustees considered the nature, extent and quality of services provided under the Sub-Advisory Agreement. The Board also considered the benefits described by the Adviser in having multiple affiliated Sub-Advisers. The Board reviewed the qualifications and background of each Sub-Adviser, the investment approach of the Sub-Adviser whose investment personnel manage the PowerShares Senior Loan Portfolio’s assets, the experience and skills of the investment personnel responsible for the day-to-day management of the Fund, and the resources made available to such personnel.

Based on their review, the Trustees concluded that the nature, extent and quality of services provided by the Sub-Advisers to PowerShares Senior Loan Portfolio under the Sub-Advisory Agreement were appropriate and reasonable.

Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser and the Sub-Advisers on the sub-advisory fee rate under the Sub-Advisory Agreement. The Trustees noted that the sub-advisory fee charged by the Sub-Advisers under the Sub-Advisory Agreement is consistent with the compensation structure used throughout Invesco when Invesco’s affiliates provide sub-advisory services for funds managed by other Invesco affiliates. The Board considered how the sub-advisory fees relate to the overall advisory fee for the PowerShares Senior Loan Portfolio and noted that the Adviser compensates the Sub-Advisers from its fee. The Trustees also considered information provided by Invesco Senior Secured Management, Inc. on the revenues it

109

Board Considerations Regarding Continuation of Investment Advisory

Agreement and Sub-Advisory Agreement (continued)

receives under the Sub-Advisory Agreement. The Trustees concluded that the sub-advisory fees were reasonable in light of the sub-advisory services provided to the PowerShares Senior Loan Portfolio.

Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. As part of their review of the Investment Advisory Agreement for the PowerShares Senior Loan Portfolio, the Trustees considered the extent to which economies of scale are realized as the PowerShares Senior Loan Portfolio grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees considered whether the sub-advisory fee rate for PowerShares Senior Loan Portfolio was reasonable in relation to the asset size of the Fund, and concluded that the flat sub-advisory fee was reasonable and appropriate.

The Trustees noted that the Sub-Advisers had not identified any further benefits that they derived from their relationships with the PowerShares Senior Loan Portfolio.

Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Sub-Advisory Agreement for the PowerShares Senior Loan Portfolio. No single factor was determinative in the Board’s analysis.

110

Board Considerations Regarding Approval of Investment Advisory Agreement for PowerShares Variable Rate Preferred Portfolio

At a meeting held on March 4, 2014, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust II (the “Trust”), including the Independent Trustees, approved the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the “Adviser”) and the Trust for the PowerShares Variable Rate Preferred Portfolio (the “Fund”).

The Trustees reviewed information from the Adviser describing: (i) the nature, extent and quality of services to be provided, (ii) the costs of services to be provided and estimated profits to be realized by the Adviser, (iii) the extent to which economies of scale may be realized as the Fund grows, (iv) whether the fee level reflects any possible economies of scale for the benefit of Fund shareholders, (v) comparisons of services rendered and amounts paid to other registered investment companies and (vi) any benefits to be realized by the Adviser from its relationship with the Fund. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the Investment Advisory Agreement for the Fund. No single factor was determinative in the Board’s analysis.

Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser’s services, the Trustees reviewed information concerning the functions to be performed by the Adviser for the Fund, information describing the Adviser’s current organization and staffing, including operations assistance provided by the Adviser’s parent organization, Invesco Ltd., and the background and experience of the persons who will be responsible for the day-to-day management of the Fund, and considered the quality of services provided by the Adviser to other exchange-traded funds (“ETFs”). The Trustees also reviewed information related to the Adviser’s portfolio transaction policies and procedures, as well as reports on the correlation and tracking error between the underlying indexes and the performance of other ETFs for which the Adviser serves as investment adviser.

The Trustees also considered the services to be provided by the Adviser in its oversight of the Fund’s administrator, custodian and transfer agent. They noted the significant amount of time and effort that had been devoted to this oversight function for the other ETFs and that was expected to be provided for the Fund.

Based on their review, the Trustees concluded that the nature, extent and quality of services to be provided by the Adviser to the Fund under the Investment Advisory Agreement were expected to be appropriate and reasonable.

Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser on the Fund’s proposed advisory fee, as compared to information compiled from Lipper Inc. databases on the average and median net expense ratios of comparable ETF peers, as well as the average and median net expense ratios of the Fund’s Lipper peer group, which includes ETF and non-ETF funds. The Trustees also noted the information compiled by the Adviser from Lipper Inc. databases on the advisory fees and net expense ratios of various types of ETFs and open-end actively managed funds that they had received in connection with the 2014 contract renewal process for other ETFs for which the Adviser serves as investment adviser. The Trustees noted that the proposed annual advisory fee to be charged to the Fund was a unitary fee, and that the Adviser has agreed to pay all other expenses of the Fund except brokerage commissions and other trading expenses, taxes, interest and extraordinary expenses. The Trustees noted that the Fund’s proposed unitary advisory fee generally was lower than or within an acceptable range of the average and median advisory fees and net expense ratios of the ETFs in its ETF universe and of the Fund’s Lipper peer group. The Trustees considered the Fund’s proposed advisory fee in light of the higher administrative, operational and management oversight costs. The Trustees noted that the Fund’s licensing fee was payable out of the unitary fee to be charged to the Fund. The Board concluded that the unitary advisory fee to be charged to the Fund is reasonable and appropriate in light of the services expected to be provided.

In conjunction with their review of the unitary advisory fee, the Trustees also considered information provided by the Adviser on the costs of services for the Fund and the fees to be paid by the Adviser. The Trustees considered information provided by the Adviser on its profitability, as well as any profits or losses realized by the Adviser from its relationship with other ETFs for which it serves as investment adviser. The Trustees concluded that the estimated profits to be realized by the Adviser with respect to the Fund appeared to be reasonable in comparison with the cost of providing investment advisory services to the Fund.

Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. The Trustees reviewed the information provided by the Adviser as to the extent to which economies of scale may be realized as the Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees noted that any reduction in fixed costs associated with the management of the Fund would be enjoyed by the Adviser, but that a unitary fee provides certainty in expenses for the Fund. The Trustees considered whether the advisory fee rate for the Fund is reasonable in relation to the projected asset size of the Fund, and concluded that the flat advisory fee was reasonable and appropriate.

111

Board Considerations Regarding Approval of Investment Advisory Agreement for PowerShares Variable Rate Preferred Portfolio (continued)

The Trustees noted that the Adviser had not identified any further benefits that it would derive from its relationships with the Fund, and had noted that it does not have any soft-dollar arrangements.

Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the Investment Advisory Agreement for the Fund. No single factor was determinative in the Board’s analysis.

112

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

Quarterly Portfolios

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

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.

©2014 Invesco PowerShares Capital Management LLC			P-PS-SAR-9
3500 Lacey Road, Suite 700 Downers Grove, IL 60515
invescopowershares.com    800.983.0903		@PowerShares

April 30, 2014

2014 Semi-Annual Report to Shareholders

DWAS	PowerShares DWA SmallCap Momentum Portfolio
PSCD	PowerShares S&P SmallCap Consumer Discretionary Portfolio
PSCC	PowerShares S&P SmallCap Consumer Staples Portfolio
PSCE	PowerShares S&P SmallCap Energy Portfolio
PSCF	PowerShares S&P SmallCap Financials Portfolio
PSCH	PowerShares S&P SmallCap Health Care Portfolio
PSCI	PowerShares S&P SmallCap Industrials Portfolio
PSCT	PowerShares S&P SmallCap Information Technology Portfolio
PSCM	PowerShares S&P SmallCap Materials Portfolio
PSCU	PowerShares S&P SmallCap Utilities Portfolio

Table of Contents

S&P SmallCap Sector Portfolios
Schedules of Investments
PowerShares DWA SmallCap Momentum Portfolio (DWAS)	3
PowerShares S&P SmallCap Consumer Discretionary Portfolio (PSCD)	6
PowerShares S&P SmallCap Consumer Staples Portfolio (PSCC)	8
PowerShares S&P SmallCap Energy Portfolio (PSCE)	10
PowerShares S&P SmallCap Financials Portfolio (PSCF)	11
PowerShares S&P SmallCap Health Care Portfolio (PSCH)	13
PowerShares S&P SmallCap Industrials Portfolio (PSCI)	15
PowerShares S&P SmallCap Information Technology Portfolio (PSCT)	17
PowerShares S&P SmallCap Materials Portfolio (PSCM)	19
PowerShares S&P SmallCap Utilities Portfolio (PSCU)	21
Statements of Assets and Liabilities	22
Statements of Operations	24
Statements of Changes in Net Assets	26
Financial Highlights	30
Notes to Financial Statements	35
Fees and Expenses	42
Board Consideration Regarding Continuation of Investment Advisory Agreement and Sub-Advisory Agreement	44

2

Portfolio Composition

PowerShares DWA SmallCap Momentum Portfolio (DWAS)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Health Care	26.6
Industrials	17.6
Information Technology	15.8
Financials	12.1
Consumer Discretionary	11.8
Materials	7.1
Energy	4.7
Consumer Staples	3.5
Telecommunication Services	0.8
Money Market Funds Plus Other Assets Less Liabilities	(0.0)

Schedule of Investments^(a)

PowerShares DWA SmallCap Momentum Portfolio (DWAS)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—11.8%
	37,738	Asbury Automotive Group, Inc.(b)	$	2,329,944
	14,012	Buffalo Wild Wings, Inc.(b)		2,047,433
	110,921	Caesars Entertainment Corp.(b)(c)		2,048,711
	279,327	Career Education Corp.(b)		2,016,741
	71,063	Carmike Cinemas, Inc.(b)		2,107,729
	43,933	Cheesecake Factory, Inc. (The)		1,972,152
	54,718	Dorman Products, Inc.(b)		3,149,021
	328,877	Entravision Communications Corp., Class A		1,746,337
	55,365	Flexsteel Industries, Inc.		1,900,127
	73,874	Gentherm, Inc.(b)		2,685,320
	29,107	G-III Apparel Group Ltd.(b)		2,089,009
	44,602	Grand Canyon Education, Inc.(b)		1,923,238
	88,799	Kate Spade & Co.(b)		3,087,541
	96,117	Live Nation Entertainment, Inc.(b)		2,006,923
	29,464	Loral Space & Communications, Inc.(b)		2,121,113
	92,925	M/I Homes, Inc.(b)		2,069,440
	328,682	McClatchy Co. (The), Class A(b)(c)		1,801,177
	37,478	Monro Muffler Brake, Inc.		2,113,759
	231,696	Nautilus, Inc.(b)		1,930,028
	265,730	Orbitz Worldwide, Inc.(b)		1,953,116
	58,372	Oxford Industries, Inc.		3,853,136
	41,448	Papa John’s International, Inc.		1,817,909
	49,165	Penske Automotive Group, Inc.		2,254,707
	34,586	Rentrak Corp.(b)		1,971,056
	49,303	Shutterfly, Inc.(b)		2,017,972
	76,584	Tower International, Inc.(b)		2,129,801
	148,208	Tuesday Morning Corp.(b)		2,071,948

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	72,252	World Wrestling Entertainment, Inc., Class A(c)	$	1,408,914
				60,624,302
		Consumer Staples—3.5%
	9,801	Boston Beer Co., Inc. (The), Class A(b)		2,411,438
	118,472	Boulder Brands, Inc.(b)		1,748,647
	22,914	Hain Celestial Group, Inc. (The)(b)		1,971,062
	158,559	Inventure Foods, Inc.(b)		1,905,879
	100,321	Pilgrim’s Pride Corp. (Brazil)(b)		2,193,017
	412,682	Rite Aid Corp.(b)		3,012,579
	36,938	Susser Holdings Corp.(b)(c)		2,858,262
	29,365	United Natural Foods, Inc.(b)		2,027,066
				18,127,950
		Energy—4.7%
	30,999	Diamondback Energy, Inc.(b)		2,230,068
	184,096	Evolution Petroleum Corp.		2,172,333
	47,739	Exterran Holdings, Inc.		2,053,732
	112,052	Green Plains Renewable Energy, Inc.		3,350,355
	121,218	Penn Virginia Corp.(b)		2,017,067
	36,536	REX American Resources Corp.(b)		2,387,993
	38,861	RigNet, Inc.(b)		1,817,140
	193,842	Synergy Resources Corp.(b)		2,256,321
	21,010	Targa Resources Corp.		2,268,870
	70,013	Westmoreland Coal Co.(b)		2,073,085
	165,082	Willbros Group, Inc.(b)		1,834,061
				24,461,025

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

3

PowerShares DWA SmallCap Momentum Portfolio (DWAS) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials—12.1%
	41,790	Bank of the Ozarks, Inc.	$	2,503,221
	264,091	BBX Capital Corp., Class A(b)		4,946,425
	80,748	BofI Holding, Inc.(b)		6,509,096
	131,852	CNO Financial Group, Inc.		2,274,447
	57,879	Eagle Bancorp, Inc.(b)		1,932,580
	230,439	FelCor Lodging Trust, Inc. REIT		2,126,952
	35,545	First Financial Bankshares, Inc.(c)		2,098,932
	94,038	Flagstar Bancorp, Inc.(b)		1,655,069
	89,405	Hanmi Financial Corp.		1,901,644
	192,007	HFF, Inc., Class A		6,528,238
	144,220	iStar Financial, Inc. REIT(b)		2,143,109
	551,377	MGIC Investment Corp.(b)		4,741,842
	130,083	NorthStar Realty Finance Corp. REIT		2,083,930
	129,231	Pacific Premier Bancorp, Inc.(b)		1,764,003
	80,272	Preferred Bank(b)		1,721,834
	173,929	Radian Group, Inc.		2,431,528
	59,324	Stewart Information Services Corp.		1,809,382
	239,176	Strategic Hotels & Resorts, Inc. REIT(b)		2,580,709
	32,104	Texas Capital Bancshares, Inc.(b)		1,803,924
	77,967	Tree.com, Inc.(b)		2,267,280
	164,554	Universal Insurance Holdings, Inc.		2,407,425
	84,851	Western Alliance Bancorp(b)		1,957,513
	97,521	Yadkin Financial Corp.(b)		1,867,527
				62,056,610
		Health Care—26.6%
	47,955	Acadia Healthcare Co., Inc.(b)		2,015,069
	342,952	ACADIA Pharmaceuticals, Inc.(b)		6,903,624
	368,199	Accelerate Diagnostics, Inc.(b)(c)		6,785,908
	184,005	AcelRX Pharmaceuticals, Inc.(b)(c)		1,990,934
	42,586	Air Methods Corp.(b)		2,370,763
	155,184	Albany Molecular Research, Inc.(b)		2,492,255
	44,291	Align Technology, Inc.(b)		2,231,823
	270,735	Alimera Sciences, Inc.(b)(c)		1,646,069
	111,267	Alliance HealthCare Services, Inc.(b)		3,166,659
	153,365	Anacor Pharmaceuticals, Inc.(b)		2,525,922
	50,881	Anika Therapeutics, Inc.(b)		2,174,654
	14,130	athenahealth, Inc.(b)		1,747,033
	110,950	Cambrex Corp.(b)		2,273,365
	88,125	Cantel Medical Corp.		2,922,225
	65,568	Cardiovascular Systems, Inc.(b)		1,885,080
	616,950	Cell Therapeutics, Inc.(b)(c)		1,820,002
	33,527	Centene Corp.(b)		2,226,193
	34,038	Clovis Oncology, Inc.(b)		1,840,435
	41,863	CorVel Corp.(b)		1,906,441
	33,343	Cyberonics, Inc.(b)		1,972,572
	52,402	DexCom, Inc.(b)		1,699,921
	233,109	Dyax Corp.(b)		1,540,850
	525,782	Exact Sciences Corp.(b)(c)		6,309,384
	60,316	ExamWorks Group, Inc.(b)		2,219,629
	47,268	Fluidigm Corp.(b)		1,775,386
	329,425	Horizon Pharma, Inc.(b)(c)		4,671,246
	54,033	Insys Therapeutics, Inc.(b)		2,218,595
	23,442	Intercept Pharmaceuticals, Inc.(b)		6,191,501
	365,908	Keryx Biopharmaceuticals, Inc.(b)(c)		5,404,461
	152,953	Lannett Co., Inc.(b)		5,281,467
	47,205	Ligand Pharmaceuticals, Inc.(b)		2,981,940

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	50,995	Medidata Solutions, Inc.(b)	$	1,851,628
	779,186	MEI Pharma, Inc.(b)(c)		6,093,235
	14,875	MWI Veterinary Supply, Inc.(b)		2,330,020
	96,231	Neogen Corp.(b)		4,020,050
	283,486	OPKO Health, Inc.(b)(c)		2,344,429
	63,497	Pacira Pharmaceuticals, Inc.(b)		4,348,910
	38,631	PAREXEL International Corp.(b)		1,751,916
	389,827	Pernix Therapeutics Holdings(b)(c)		1,875,068
	95,190	Prothena Corp. PLC (Ireland)(b)		2,094,180
	49,807	Receptos, Inc.(b)		1,682,979
	162,916	Repligen Corp.(b)		2,582,219
	168,521	Rockwell Medical, Inc.(b)(c)		1,712,173
	149,481	Sangamo BioSciences, Inc.(b)(c)		2,068,817
	83,836	Spectranetics Corp.(b)		1,782,353
	331,659	TherapeuticsMD, Inc.(b)(c)		1,392,968
	138,829	Vanda Pharmaceuticals, Inc.(b)(c)		1,933,888
	50,496	West Pharmaceutical Services, Inc.		2,190,516
	454,910	ZIOPHARM Oncology, Inc.(b)(c)		1,637,676
				136,884,431
		Industrials—17.6%
	76,870	AAON, Inc.		2,179,265
	15,688	Acuity Brands, Inc.		1,954,254
	32,897	Advisory Board Co. (The)(b)		1,883,682
	58,844	Altra Industrial Motion Corp.		2,010,111
	76,694	American Airlines Group, Inc.(b)		2,689,659
	30,637	American Railcar Industries, Inc.(c)		2,127,433
	58,153	ArcBest Corp.		2,292,391
	49,212	Astronics Corp.(b)		2,810,990
	39,722	Deluxe Corp.		2,182,724
	31,828	DXP Enterprises, Inc.(b)		3,603,248
	114,106	GenCorp, Inc.(b)(c)		2,003,701
	78,568	GP Strategies Corp.(b)		2,064,767
	57,634	H&E Equipment Services, Inc.(b)		2,221,791
	80,393	HEICO Corp.		4,447,341
	32,885	Huron Consulting Group, Inc.(b)		2,341,412
	92,986	Lydall, Inc.(b)		2,176,802
	128,082	Manitex International, Inc.(b)		2,108,230
	9,364	Middleby Corp. (The)(b)		2,364,223
	37,511	Moog, Inc., Class A(b)		2,455,095
	219,469	Mueller Water Products, Inc., Class A		2,001,557
	156,187	On Assignment, Inc.(b)		5,466,545
	37,124	Park-Ohio Holdings Corp.(b)		2,167,670
	47,023	Patrick Industries, Inc.(b)		1,884,212
	459,999	PGT, Inc.(b)		4,576,990
	29,039	Power Solutions International, Inc.(b)		2,402,977
	91,800	PowerSecure International, Inc.(b)		2,040,714
	70,071	Primoris Services Corp.		1,960,587
	55,423	Saia, Inc.(b)		2,281,765
	71,989	Sparton Corp.(b)		1,955,221
	36,290	Spirit Airlines, Inc.(b)		2,062,724
	115,640	TASER International, Inc.(b)		1,867,586
	21,434	Teledyne Technologies, Inc.(b)		1,990,361
	31,760	Tennant Co.		2,025,970
	28,468	Trex Co., Inc.(b)		2,235,307
	63,678	USG Corp.(b)		1,901,425
	38,947	WageWorks, Inc.(b)		1,650,184

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

4

PowerShares DWA SmallCap Momentum Portfolio (DWAS) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	139,980	Xerium Technologies, Inc.(b)	$	1,889,730
	92,695	YRC Worldwide, Inc.(b)(c)		2,079,149
				90,357,793
		Information Technology—15.8%
	35,252	ACI Worldwide, Inc.(b)		2,014,652
	74,292	ARRIS Group, Inc.(b)		1,938,278
	49,366	Aspen Technology, Inc.(b)		2,122,244
	59,366	Bottomline Technologies, Inc.(b)		1,878,340
	202,422	CalAmp Corp.(b)		3,592,990
	61,613	Cognex Corp.(b)		2,121,336
	43,504	Cornerstone OnDemand, Inc.(b)		1,599,207
	11,271	CoStar Group, Inc.(b)		1,813,391
	66,901	Cray, Inc.(b)		1,920,728
	99,883	CTS Corp.		1,776,919
	48,096	Electronics for Imaging, Inc.(b)		1,817,548
	51,937	Envestnet, Inc.(b)		1,913,878
	20,407	FEI Co.		1,622,765
	205,010	GT Advanced Technologies, Inc.(b)(c)		3,405,216
	55,255	Interactive Intelligence Group, Inc.(b)		3,457,305
	22,689	Littelfuse, Inc.		2,054,489
	76,258	Manhattan Associates, Inc.(b)		2,404,415
	198,342	Marchex, Inc., Class B		1,834,663
	105,850	Measurement Specialties, Inc.(b)		6,811,448
	23,057	Mesa Laboratories, Inc.		1,975,985
	78,681	Monotype Imaging Holdings, Inc.		2,077,965
	56,215	Proofpoint, Inc.(b)		1,430,110
	354,786	SunEdison, Inc.(b)		6,822,535
	110,647	SunPower Corp. (France)(b)(c)		3,697,823
	25,149	Tyler Technologies, Inc.(b)		2,053,416
	55,356	Ubiquiti Networks, Inc.(b)(c)		2,143,938
	19,949	Ultimate Software Group, Inc. (The)(b)		2,386,499
	62,360	Verint Systems, Inc.(b)		2,729,497
	114,862	Web.com Group, Inc.(b)		3,527,412
	22,831	WEX, Inc.(b)		2,191,091
	27,519	Yelp, Inc.(b)		1,604,908
	23,650	Zillow, Inc., Class A(b)(c)		2,570,755
				81,311,746
		Materials—7.1%
	160,442	Ferro Corp.(b)		2,082,537
	414,649	Graphic Packaging Holding Co.(b)		4,254,299
	288,925	Headwaters, Inc.(b)		3,605,784
	312,769	KapStone Paper and Packaging Corp.(b)		8,250,846
	66,224	Neenah Paper, Inc.		3,335,703
	159,027	PolyOne Corp.		5,958,742
	85,651	UFP Technologies, Inc.(b)		2,172,109
	174,715	U.S. Concrete, Inc.(b)		4,301,483
	54,571	U.S. Silica Holdings, Inc.		2,464,972
				36,426,475
		Telecommunication Services—0.8%
	153,180	FairPoint Communications, Inc.(b)		2,089,375
	157,242	Inteliquent, Inc.		2,144,781
				4,234,156
		Total Common Stocks and Other Equity Interests (Cost $503,033,342)		514,484,488

Number of Shares			Value
		Money Market Fund—0.0%
	25,371	Invesco Premier Portfolio—Institutional Class(d) (Cost $25,371)	$	25,371
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $503,058,713)—100.0%		514,509,859
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—9.5%
	48,738,773	Invesco Liquid Assets Portfolio—Institutional Class(d)(e) (Cost $48,738,773)		48,738,773
		Total Investments (Cost $551,797,486)—109.5%		563,248,632
		Other assets less liabilities—(9.5)%		(48,798,199	)
		Net Assets—100.0%	$	514,450,433

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

^(c)  All or a portion of this security was out on loan at April 30, 2014.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

^(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 2G. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of April 30, 2014.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman	$	48,408,502	$	(48,408,502	)	$	—

* Amount does not include excess collateral received, if any.

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

5

Portfolio Composition

PowerShares S&P SmallCap Consumer Discretionary Portfolio (PSCD)

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Specialty Retail	30.5
Hotels, Restaurants & Leisure	22.2
Textiles, Apparel & Luxury Goods	13.7
Household Durables	10.1
Diversified Consumer Services	5.3
Media	4.9
Auto Components	4.3
Distributors	2.9
Leisure Products	2.6
Internet & Catalog Retail	1.7
Multi-Line Retail	1.1
Automobiles	0.7
Money Market Fund Plus Other Assets Less Liabilities	(0.0)

Schedule of Investments^(a)

PowerShares S&P SmallCap Consumer Discretionary Portfolio (PSCD)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Auto Components—4.3%
	33,654	Dorman Products, Inc.(b)	$	1,936,788
	24,545	Drew Industries, Inc.		1,235,104
	38,000	Spartan Motors, Inc.		201,780
	22,949	Standard Motor Products, Inc.		871,833
	25,595	Superior Industries International, Inc.		541,078
				4,786,583
		Automobiles—0.7%
	30,789	Winnebago Industries, Inc.(b)		735,857
		Distributors—2.9%
	49,998	Pool Corp.		2,950,882
	21,931	VOXX International Corp.(b)		257,689
				3,208,571
		Diversified Consumer Services—5.3%
	19,589	American Public Education, Inc.(b)		677,779
	12,207	Capella Education Co.		712,401
	64,147	Career Education Corp.(b)		463,141
	70,034	Hillenbrand, Inc.		2,129,034
	20,248	ITT Educational Services, Inc.(b)(c)		546,696
	48,495	Regis Corp.		637,224
	11,993	Strayer Education, Inc.(b)(c)		511,262
	23,548	Universal Technical Institute, Inc.		282,811
				5,960,348

Number of Shares			Value
		Common Stocks (continued)
		Hotels, Restaurants & Leisure—22.2%
	1,625	Biglari Holdings, Inc.(b)	$	697,158
	27,717	BJ’s Restaurants, Inc.(b)		791,320
	83,833	Boyd Gaming Corp.(b)		990,906
	20,893	Buffalo Wild Wings, Inc.(b)		3,052,885
	26,459	Cracker Barrel Old Country Store, Inc.		2,506,726
	17,982	DineEquity, Inc.		1,363,215
	44,023	Interval Leisure Group, Inc.		1,134,473
	46,538	Jack in the Box, Inc.(b)		2,491,645
	20,143	Marcus Corp.		336,992
	33,213	Marriott Vacations Worldwide Corp.(b)		1,809,444
	10,798	Monarch Casino & Resort, Inc.(b)		173,200
	32,877	Multimedia Games Holding Co., Inc.(b)		960,008
	34,431	Papa John’s International, Inc.		1,510,144
	65,757	Pinnacle Entertainment, Inc.(b)		1,530,165
	14,561	Red Robin Gourmet Burgers, Inc.(b)		989,857
	64,126	Ruby Tuesday, Inc.(b)		494,411
	39,957	Ruth’s Hospitality Group, Inc.		503,059
	53,944	Scientific Games Corp., Class A(b)		646,249
	58,350	Sonic Corp.(b)		1,110,984
	66,062	Texas Roadhouse, Inc.		1,634,374
				24,727,215
		Household Durables—10.1%
	9,430	Blyth, Inc.(c)		88,359

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

6

PowerShares S&P SmallCap Consumer Discretionary Portfolio (PSCD) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks (continued)
		Household Durables (continued)
	28,910	Ethan Allen Interiors, Inc.	$	701,935
	29,651	Helen of Troy Ltd.(b)		1,859,118
	32,236	iRobot Corp.(b)(c)		1,079,906
	58,137	La-Z-Boy, Inc.		1,408,660
	27,144	M/I Homes, Inc.(b)		604,497
	40,799	Meritage Homes Corp.(b)		1,574,025
	51,751	Ryland Group, Inc. (The)		1,986,721
	166,612	Standard Pacific Corp.(b)		1,331,230
	17,275	Universal Electronics, Inc.(b)		645,221
				11,279,672
		Internet & Catalog Retail—1.7%
	14,187	Blue Nile, Inc.(b)		492,715
	21,018	FTD Cos., Inc.(b)		637,686
	31,845	Nutrisystem, Inc.		477,675
	22,427	PetMed Express, Inc.(c)		293,569
				1,901,645
		Leisure Products—2.6%
	14,600	Arctic Cat, Inc.		596,994
	85,917	Callaway Golf Co.		748,337
	19,077	JAKKS Pacific, Inc.		167,115
	21,492	Sturm Ruger & Co., Inc.(c)		1,383,010
				2,895,456
		Media—4.9%
	33,405	E.W. Scripps Co. (The), Class A(b)		572,228
	48,634	Harte-Hanks, Inc.		391,017
	157,812	Live Nation Entertainment, Inc.(b)		3,295,114
	28,620	Scholastic Corp.		941,884
	26,001	Sizmek, Inc.(b)		249,090
				5,449,333
		Multi-line Retail—1.1%
	38,017	Fred’s, Inc., Class A		692,670
	41,318	Tuesday Morning Corp.(b)		577,626
				1,270,296
		Specialty Retail—30.5%
	87,190	Aeropostale, Inc.(b)(c)		433,334
	41,240	Barnes & Noble, Inc.(b)		676,336
	19,815	Big 5 Sporting Goods Corp.		241,941
	45,563	Brown Shoe Co., Inc.		1,074,831
	31,138	Buckle, Inc. (The)(c)		1,463,175
	29,901	Cato Corp. (The), Class A		851,879
	24,741	Children’s Place Retail Stores, Inc. (The)		1,187,568
	40,458	Christopher & Banks Corp.(b)		252,458
	54,488	Finish Line, Inc. (The), Class A		1,500,055
	46,667	Francesca’s Holdings Corp.(b)		763,472
	26,473	Genesco, Inc.(b)		2,021,743
	23,429	Group 1 Automotive, Inc.		1,689,934
	22,258	Haverty Furniture Cos., Inc.		568,469
	28,674	Hibbett Sports, Inc.(b)(c)		1,544,095
	31,089	Jos. A. Bank Clothiers, Inc.(b)(c)		2,006,795
	16,716	Kirkland’s, Inc.(b)		286,011
	25,046	Lithia Motors, Inc., Class A		1,860,417
	30,522	Lumber Liquidators Holdings, Inc.(b)		2,660,298
	27,309	MarineMax, Inc.(b)		438,583
	50,088	Men’s Wearhouse, Inc. (The)		2,373,169
	33,187	Monro Muffler Brake, Inc.		1,871,747
	22,329	Outerwall, Inc.(b)(c)		1,548,516
	59,070	PEP Boys-Manny Moe & Jack (The)(b)		603,695

Number of Shares			Value
		Common Stocks (continued)
		Specialty Retail (continued)
	60,828	Select Comfort Corp.(b)	$	1,119,235
	37,901	Sonic Automotive, Inc., Class A		922,510
	34,671	Stage Stores, Inc.		664,990
	31,163	Stein Mart, Inc.		389,538
	33,907	Vitamin Shoppe, Inc.(b)		1,623,467
	35,906	Zale Corp.(b)		768,029
	24,556	Zumiez, Inc.(b)		600,394
				34,006,684
		Textiles, Apparel & Luxury Goods—13.7%
	98,357	Crocs, Inc.(b)		1,488,141
	18,355	G-III Apparel Group Ltd.(b)		1,317,338
	53,922	Iconix Brand Group, Inc.(b)		2,291,685
	20,036	Movado Group, Inc.		787,014
	16,044	Oxford Industries, Inc.		1,059,065
	13,760	Perry Ellis International, Inc.(b)		207,776
	143,864	Quiksilver, Inc.(b)		923,607
	44,043	Skechers U.S.A., Inc., Class A(b)		1,805,323
	64,594	Steven Madden Ltd.(b)		2,300,192
	111,987	Wolverine World Wide, Inc.		3,146,835
				15,326,976
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $91,679,268)—100.0%		111,548,636
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—7.0%
	7,788,282	Invesco Liquid Assets Portfolio—Institutional Class(d)(e) (Cost $7,788,282)		7,788,282
		Total Investments (Cost $99,467,550)—107.0%		119,336,918
		Other assets less liabilities—(7.0)%		(7,793,143	)
		Net Assets—100.0%	$	111,543,775

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

^(c)  All or a portion of this security was out on loan at April 30, 2014.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

^(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 2G. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of April 30, 2014.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman	$	7,636,266	$	(7,636,266	)	$	—

* Amount does not include excess collateral received, if any.

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

7

Portfolio Composition

PowerShares S&P SmallCap Consumer Staples Portfolio (PSCC)

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Food Products	57.9
Food & Staples Retailing	20.0
Beverages	8.9
Household Products	6.3
Personal Products	5.7
Tobacco	1.2
Money Market Funds Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares S&P SmallCap Consumer Staples Portfolio (PSCC)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Beverages—8.9%
	12,568	Boston Beer Co., Inc. (The), Class A(b)	$	3,092,231
		Food & Staples Retailing—20.0%
	27,155	Andersons, Inc. (The)		1,691,485
	54,631	Casey’s General Stores, Inc.		3,750,964
	72,126	Spartan Stores, Inc.		1,553,594
				6,996,043
		Food Products—57.9%
	33,579	Annie’s, Inc.(b)		1,091,653
	52,727	B&G Foods, Inc.		1,729,446
	27,382	Calavo Growers, Inc.		851,307
	26,399	Cal-Maine Foods, Inc.		1,574,172
	233,214	Darling International, Inc.(b)		4,666,612
	43,393	Diamond Foods, Inc.(b)(c)		1,326,524
	16,292	J & J Snack Foods Corp.		1,524,931
	20,293	Sanderson Farms, Inc.		1,669,505
	14,005	Seneca Foods Corp., Class A(b)		397,742
	56,887	Snyders-Lance, Inc.		1,510,919
	51,800	TreeHouse Foods, Inc.(b)		3,876,712
				20,219,523
		Household Products—6.3%
	82,911	Central Garden & Pet Co., Class A(b)		685,674
	20,759	WD-40 Co.		1,512,085
				2,197,759
		Personal Products—5.7%
	33,597	Inter Parfums, Inc.		1,229,314
	23,836	Medifast, Inc.(b)		754,409
				1,983,723

Number of Shares			Value
		Common Stocks (continued)
		Tobacco—1.2%
	161,940	Alliance One International, Inc.(b)	$	416,186
		Total Common Stocks (Cost $34,416,405)		34,905,465
		Money Market Fund—0.0%
	2,577	Invesco Premier Portfolio—Institutional Class(d) (Cost $2,577)		2,577
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $34,418,982)—100.0%		34,908,042
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—2.6%
	911,493	Invesco Liquid Assets Portfolio—Institutional Class(d)(e) (Cost $911,493)		911,493
		Total Investments (Cost $35,330,475)—102.6%		35,819,535
		Other assets less liabilities—(2.6)%		(894,417	)
		Net Assets—100.0%	$	34,925,118

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

^(c)  All or a portion of this security was out on loan at April 30, 2014.

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

8

PowerShares S&P SmallCap Consumer Staples Portfolio (PSCC) (continued)

April 30, 2014

(Unaudited)

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

^(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 2G. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of April 30, 2014.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman	$	898,849	$	(898,849	)	$	–

* Amount does not include excess collateral received, if any.

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

9

Portfolio Composition

PowerShares S&P SmallCap Energy Portfolio (PSCE)

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Energy Equipment & Services	51.8
Oil, Gas & Consumable Fuels	48.2
Money Market Fund Plus Other Assets Less Liabilities	(0.0)

Schedule of Investments^(a)

PowerShares S&P SmallCap Energy Portfolio (PSCE)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Energy Equipment & Services—51.8%
	47,321	Basic Energy Services, Inc.(b)	$	1,250,221
	64,095	Bristow Group, Inc.		4,922,496
	81,254	C&J Energy Services, Inc.(b)		2,442,495
	33,178	Era Group, Inc.(b)		947,232
	103,672	Exterran Holdings, Inc.		4,459,969
	23,209	Geospace Technologies Corp.(b)		1,349,139
	21,777	Gulf Island Fabrication, Inc.		436,847
	57,412	Hornbeck Offshore Services, Inc.(b)		2,378,579
	225,687	ION Geophysical Corp.(b)		993,023
	46,547	Matrix Service Co.(b)		1,441,561
	152,606	Newpark Resources, Inc.(b)		1,837,376
	110,506	Pioneer Energy Services Corp.(b)		1,654,275
	33,507	SEACOR Holdings, Inc.(b)		2,794,149
	56,109	Tesco Corp.(b)		1,122,180
	139,421	TETRA Technologies, Inc.(b)		1,742,762
				29,772,304
		Oil, Gas & Consumable Fuels—48.2%
	62,659	Approach Resources, Inc.(b)		1,300,174
	375,121	Arch Coal, Inc.		1,718,054
	73,123	Carrizo Oil & Gas, Inc.(b)		4,023,228
	107,610	Cloud Peak Energy, Inc.(b)		2,118,841
	78,616	Comstock Resources, Inc.		2,185,525
	27,379	Contango Oil & Gas Co.(b)		1,315,287
	210,421	Forest Oil Corp.(b)		391,383
	55,527	Green Plains Renewable Energy, Inc.		1,660,257
	100,558	Northern Oil and Gas, Inc.(b)		1,551,610
	63,033	PDC Energy, Inc.(b)		4,013,311
	93,563	Penn Virginia Corp.(b)		1,556,889
	102,313	PetroQuest Energy, Inc.(b)		615,924
	87,986	Stone Energy Corp.(b)		4,315,713
	76,825	Swift Energy Co.(b)		947,252
				27,713,448
		Total Common Stocks (Cost $52,211,100)		57,485,752

Number of Shares			Value
		Money Market Fund—0.0%
	7,466	Invesco Premier Portfolio—Institutional Class(c) (Cost $7,466)	$	7,466
		Total Investments (Cost $52,218,566)—100.0%		57,493,218
		Other assets less liabilities—(0.0)%		(12,238	)
		Net Assets—100.0%	$	57,480,980

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.

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

10

Portfolio Composition

PowerShares S&P SmallCap Financials Portfolio (PSCF)

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Real Estate Investment Trusts	35.9
Banks	33.2
Insurance	9.6
Capital Markets	8.5
Consumer Finance	5.9
Thrifts & Mortgage Finance	4.1
Diversified Financial Services	2.3
Real Estate Management & Development	0.4
Other Assets Less Liabilities	0.1

Schedule of Investments^(a)

PowerShares S&P SmallCap Financials Portfolio (PSCF)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Banks—33.2%
	24,925	Bank of the Ozarks, Inc.	$	1,493,008
	14,991	Banner Corp.		592,744
	61,043	BBCN Bancorp, Inc.		940,673
	61,455	Boston Private Financial Holdings, Inc.		768,802
	24,557	Cardinal Financial Corp.		412,558
	12,059	City Holding Co.		518,416
	39,375	Columbia Banking System, Inc.		977,288
	31,113	Community Bank System, Inc.		1,157,092
	72,244	CVB Financial Corp.		1,044,648
	127,210	F.N.B. Corp.		1,582,492
	76,382	First BanCorp.(b)		392,603
	72,389	First Commonwealth Financial Corp.		621,822
	44,191	First Financial Bancorp		715,452
	23,340	First Financial Bankshares, Inc.		1,378,227
	57,838	First Midwest Bancorp, Inc.		946,808
	57,145	Glacier Bancorp, Inc.		1,466,341
	24,400	Hanmi Financial Corp.		518,988
	36,507	Home BancShares, Inc.		1,157,637
	18,278	Independent Bank Corp.		678,479
	42,202	MB Financial, Inc.		1,132,702
	85,532	National Penn Bancshares, Inc.		835,648
	33,708	NBT Bancorp, Inc.		763,486
	81,039	Old National Bancorp		1,144,271
	25,523	Pinnacle Financial Partners, Inc.		882,330
	50,124	PrivateBancorp, Inc.		1,381,919
	22,851	S&T Bancorp, Inc.		531,514
	12,493	Simmons First National Corp., Class A		451,747
	60,578	Sterling Bancorp		724,513
	143,931	Susquehanna Bancshares, Inc.		1,491,125
	11,718	Taylor Capital Group, Inc.(b)		249,476

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Banks (continued)
	32,827	Texas Capital Bancshares, Inc.(b)	$	1,844,549
	9,067	Tompkins Financial Corp.		427,418
	28,827	UMB Financial Corp.		1,692,433
	48,048	United Bankshares, Inc.		1,405,404
	29,687	United Community Banks, Inc.(b)		479,445
	27,624	ViewPoint Financial Group, Inc.		720,158
	52,184	Wilshire Bancorp, Inc.		521,840
	35,479	Wintrust Financial Corp.		1,590,169
				35,634,225
		Capital Markets—8.5%
	14,672	Calamos Asset Management, Inc., Class A		178,705
	26,642	Evercore Partners, Inc., Class A		1,423,482
	39,161	Financial Engines, Inc.		1,732,874
	29,179	FXCM, Inc., Class A		451,691
	25,473	HFF, Inc., Class A		866,082
	27,881	Investment Technology Group, Inc.(b)		575,464
	12,427	Piper Jaffray Cos.(b)		545,048
	46,562	Stifel Financial Corp.(b)		2,177,705
	22,360	SWS Group, Inc.(b)		165,688
	5,388	Virtus Investment Partners, Inc.(b)		996,726
				9,113,465
		Consumer Finance—5.9%
	21,607	Cash America International, Inc.		940,985
	18,015	Encore Capital Group, Inc.(b)		778,608
	41,780	EZCORP, Inc., Class A(b)		435,765
	22,193	First Cash Financial Services, Inc.(b)		1,082,353
	16,846	Green Dot Corp., Class A(b)		292,615
	38,313	Portfolio Recovery Associates, Inc.(b)		2,189,588

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

11

PowerShares S&P SmallCap Financials Portfolio (PSCF) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Finance (continued)
	7,898	World Acceptance Corp.(b)	$	573,395
				6,293,309
		Diversified Financial Services—2.3%
	36,963	Interactive Brokers Group, Inc., Class A		883,416
	29,016	MarketAxess Holdings, Inc.		1,563,382
				2,446,798
		Insurance—9.6%
	14,308	AMERISAFE, Inc.		610,236
	14,308	eHealth, Inc.(b)		599,362
	24,059	Employers Holdings, Inc.		489,601
	7,773	HCI Group, Inc.		300,660
	31,174	Horace Mann Educators Corp.		937,402
	8,839	Infinity Property & Casualty Corp.		567,198
	35,650	Meadowbrook Insurance Group, Inc.		199,640
	8,188	Navigators Group, Inc. (The)(b)		466,470
	46,442	ProAssurance Corp.		2,109,396
	26,403	RLI Corp.		1,136,913
	9,815	Safety Insurance Group, Inc.		527,164
	43,154	Selective Insurance Group, Inc.		989,953
	16,080	Stewart Information Services Corp.		490,440
	29,967	Tower Group International Ltd.		73,719
	16,570	United Fire Group, Inc.		460,977
	21,824	Universal Insurance Holdings, Inc.		319,285
				10,278,416
		Real Estate Investment Trusts—35.9%
	42,922	Acadia Realty Trust REIT		1,164,474
	11,498	Agree Realty Corp. REIT		343,445
	26,379	American Assets Trust, Inc. REIT		895,567
	44,234	Associated Estates Realty Corp. REIT		742,246
	73,587	Capstead Mortgage Corp. REIT		940,442
	52,315	Cedar Realty Trust, Inc. REIT		323,830
	16,389	CoreSite Realty Corp. REIT		498,553
	141,702	Cousins Properties, Inc. REIT		1,647,994
	150,083	DiamondRock Hospitality Co. REIT		1,841,518
	23,734	EastGroup Properties, Inc. REIT		1,501,175
	40,637	EPR Properties REIT		2,178,550
	66,976	Franklin Street Properties Corp. REIT		815,768
	55,355	Geo Group, Inc. (The) REIT		1,856,053
	20,530	Getty Realty Corp. REIT		388,428
	42,018	Government Properties Income Trust REIT		1,069,358
	73,704	Healthcare Realty Trust, Inc. REIT		1,853,656
	64,384	Inland Real Estate Corp. REIT		672,813
	100,573	Kite Realty Group Trust REIT		623,553
	79,840	LaSalle Hotel Properties REIT		2,641,107
	156,647	Lexington Realty Trust REIT		1,685,522
	26,743	LTC Properties, Inc. REIT		1,033,082
	130,718	Medical Properties Trust, Inc. REIT		1,764,693
	55,503	Parkway Properties, Inc. REIT		1,046,787
	52,567	Pennsylvania Real Estate Investment Trust REIT		869,984
	41,711	Post Properties, Inc. REIT		2,094,309
	15,462	PS Business Parks, Inc. REIT		1,326,176
	29,916	Sabra Health Care REIT, Inc. REIT		896,582
	9,722	Saul Centers, Inc. REIT		446,143
	24,979	Sovran Self Storage, Inc. REIT		1,895,906

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Real Estate Investment Trusts (continued)
	73,278	Tanger Factory Outlet Centers, Inc. REIT	$	2,614,559
	9,881	Universal Health Realty Income Trust REIT		419,251
	19,657	Urstadt Biddle Properties, Inc., Class A REIT		401,199
				38,492,723
		Real Estate Management & Development—0.4%
	26,829	Forestar Group, Inc.(b)		457,434
		Thrifts & Mortgage Finance—4.1%
	33,266	Bank Mutual Corp.		200,261
	9,437	BofI Holding, Inc.(b)		760,717
	54,133	Brookline Bancorp, Inc.		491,528
	22,568	Dime Community Bancshares, Inc.		367,858
	72,477	Northwest Bancshares, Inc.		963,219
	30,204	Oritani Financial Corp.		447,925
	41,258	Provident Financial Services, Inc.		717,064
	72,663	TrustCo Bank Corp. NY		480,303
				4,428,875
		Total Investments (Cost $85,362,333)—99.9%		107,145,245
		Other assets less liabilities—0.1%		110,885
		Net Assets—100.0%	$	107,256,130

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.

12

Portfolio Composition

PowerShares S&P SmallCap Health Care Portfolio (PSCH)

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Health Care Providers & Services	32.1
Health Care Equipment & Supplies	30.7
Pharmaceuticals	16.6
Biotechnology	7.2
Life Sciences Tools & Services	6.8
Health Care Technology	6.6
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares S&P SmallCap Health Care Portfolio (PSCH)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Biotechnology—7.2%
	97,130	Acorda Therapeutics, Inc.(b)	$	3,443,258
	128,550	ArQule, Inc.(b)		208,251
	68,282	Emergent Biosolutions, Inc.(b)		1,799,914
	48,458	Ligand Pharmaceuticals, Inc., Class B(b)		3,061,092
	108,545	Momenta Pharmaceuticals, Inc.(b)		1,239,584
	70,520	Repligen Corp.(b)		1,117,742
	128,904	Spectrum Pharmaceuticals, Inc.(b)		885,570
				11,755,411
		Health Care Equipment & Supplies—30.7%
	49,149	Abaxis, Inc.(b)		1,995,941
	83,299	Abiomed, Inc.(b)		1,973,353
	29,176	Analogic Corp.		2,190,534
	26,532	Anika Therapeutics, Inc.(b)		1,133,978
	78,631	Cantel Medical Corp.		2,607,404
	63,949	CONMED Corp.		2,962,757
	59,008	CryoLife, Inc.		535,793
	56,769	Cyberonics, Inc.(b)		3,358,454
	45,797	Cynosure, Inc., Class A(b)		1,123,859
	57,942	Greatbatch, Inc.(b)		2,667,070
	122,001	Haemonetics Corp.(b)		3,703,950
	31,568	ICU Medical, Inc.(b)		1,760,863
	55,616	Integra LifeSciences Holdings Corp.(b)		2,534,977
	67,727	Invacare Corp.		1,070,087
	97,665	Meridian Bioscience, Inc.		1,950,370
	95,452	Merit Medical Systems, Inc.(b)		1,228,467
	65,505	Natus Medical, Inc.(b)		1,626,489
	86,052	Neogen Corp.(b)		3,594,822
	107,983	NuVasive, Inc.(b)		3,640,107
	31,780	SurModics, Inc.(b)		691,533
	88,128	Symmetry Medical, Inc.(b)		727,937
	165,381	West Pharmaceutical Services, Inc.		7,174,228
				50,252,973

Number of Shares			Value
		Common Stocks (continued)
		Health Care Providers & Services—32.1%
	82,753	Air Methods Corp.(b)	$	4,606,860
	19,687	Almost Family, Inc.(b)		422,680
	76,300	Amedisys, Inc.(b)		1,039,969
	108,967	AMN Healthcare Services, Inc.(b)		1,359,908
	76,363	AmSurg Corp.(b)		3,307,282
	57,982	Bio-Reference Labs, Inc.(b)		1,472,743
	135,463	Centene Corp.(b)		8,994,743
	41,682	Chemed Corp.		3,470,860
	26,562	CorVel Corp.(b)		1,209,633
	63,567	Cross Country Healthcare, Inc.(b)		450,690
	46,364	Ensign Group, Inc. (The)		1,970,470
	67,341	Gentiva Health Services, Inc.(b)		507,078
	81,721	Hanger, Inc.(b)		2,833,267
	82,516	Healthways, Inc.(b)		1,485,288
	40,102	IPC The Hospitalist Co., Inc.(b)		1,624,131
	127,195	Kindred Healthcare, Inc.		3,192,595
	22,416	Landauer, Inc.		969,268
	28,567	LHC Group, Inc.(b)		593,622
	64,609	Magellan Health Services, Inc.(b)		3,729,231
	67,006	Molina Healthcare, Inc.(b)		2,506,024
	30,220	MWI Veterinary Supply, Inc.(b)		4,733,661
	69,855	PharMerica Corp.(b)		1,899,357
				52,379,360
		Health Care Technology—6.6%
	24,652	Computer Programs & Systems, Inc.		1,556,281
	48,341	HealthStream, Inc.(b)		1,094,924
	119,724	Medidata Solutions, Inc.(b)		4,347,178
	83,712	Omnicell, Inc.(b)		2,216,694
	103,312	Quality Systems, Inc.		1,525,918
				10,740,995

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

13

PowerShares S&P SmallCap Health Care Portfolio (PSCH) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks (continued)
		Life Sciences Tools & Services—6.8%
	170,370	Affymetrix, Inc.(b)	$	1,265,849
	43,847	Albany Molecular Research, Inc.(b)		704,183
	71,659	Cambrex Corp.(b)		1,468,293
	87,811	Luminex Corp.(b)		1,686,849
	133,085	PAREXEL International Corp.(b)		6,035,405
				11,160,579
		Pharmaceuticals—16.6%
	167,650	Akorn, Inc.(b)		4,228,133
	152,511	Impax Laboratories, Inc.(b)		3,988,163
	152,065	Medicines Co. (The)(b)		4,044,929
	121,758	Prestige Brands Holdings, Inc.(b)		4,081,328
	131,049	Questcor Pharmaceuticals, Inc.		10,769,607
				27,112,160
		Total Common Stocks (Cost $153,671,164)		163,401,478
		Money Market Fund—0.0%
	36,516	Invesco Premier Portfolio—Institutional Class(c) (Cost $36,516)		36,516
		Total Investments (Cost $153,707,680)—100.0%		163,437,994
		Other assets less liabilities—(0.0)%		(24,601	)
		Net Assets—100.0%	$	163,413,393

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.

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

14

Portfolio Composition

PowerShares S&P SmallCap Industrials Portfolio (PSCI)

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Machinery	23.5
Aerospace & Defense	17.3
Commercial Services & Supplies	13.7
Professional Services	9.4
Electrical Equipment	7.3
Building Products	6.0
Construction & Engineering	5.9
Road & Rail	5.0
Trading Companies & Distributors	4.9
Air Freight & Logistics	3.7
Airlines	2.3
Marine	1.0
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares S&P SmallCap Industrials Portfolio (PSCI)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Aerospace & Defense—17.3%
	44,252	AAR Corp.	$	1,146,127
	22,091	Aerovironment, Inc.(b)		746,013
	8,792	American Science & Engineering, Inc.		590,822
	23,360	Cubic Corp.		1,107,965
	53,699	Curtiss-Wright Corp.		3,433,514
	19,268	Engility Holdings, Inc.(b)		840,856
	65,190	GenCorp, Inc.(b)		1,144,736
	50,727	Moog, Inc., Class A(b)		3,320,082
	5,478	National Presto Industries, Inc.		395,840
	67,704	Orbital Sciences Corp.(b)		1,990,498
	58,002	TASER International, Inc.(b)		936,732
	42,088	Teledyne Technologies, Inc.(b)		3,908,292
				19,561,477
		Air Freight & Logistics—3.7%
	27,998	Atlas Air Worldwide Holdings, Inc.(b)		979,650
	34,353	Forward Air Corp.		1,519,433
	38,967	Hub Group, Inc., Class A(b)		1,739,877
				4,238,960
		Airlines—2.3%
	16,426	Allegiant Travel Co.		1,929,234
	57,448	SkyWest, Inc.		666,397
				2,595,631

Number of Shares			Value
		Common Stocks (continued)
		Building Products—6.0%
	31,229	AAON, Inc.	$	885,342
	13,554	American Woodmark Corp.(b)		406,756
	32,251	Apogee Enterprises, Inc.		1,024,614
	32,306	Gibraltar Industries, Inc.(b)		551,787
	49,044	Griffon Corp.		521,828
	41,918	Quanex Building Products Corp.		789,735
	45,951	Simpson Manufacturing Co., Inc.		1,506,733
	22,305	Universal Forest Products, Inc.		1,126,180
				6,812,975
		Commercial Services & Supplies—13.7%
	58,092	ABM Industries, Inc.		1,573,712
	52,481	Brady Corp., Class A		1,353,485
	22,320	G&K Services, Inc., Class A		1,181,621
	78,396	Healthcare Services Group, Inc.		2,281,324
	65,493	Interface, Inc.		1,178,219
	45,880	Mobile Mini, Inc.		2,026,978
	72,627	Tetra Tech, Inc.(b)		2,082,216
	17,027	UniFirst Corp.		1,638,679
	44,302	United Stationers, Inc.		1,662,654
	22,726	Viad Corp.		523,834
				15,502,722

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

15

PowerShares S&P SmallCap Industrials Portfolio (PSCI) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks (continued)
		Construction & Engineering—5.9%
	42,460	Aegion Corp.(b)	$	1,082,306
	42,083	Comfort Systems USA, Inc.		631,245
	37,786	Dycom Industries, Inc.(b)		1,186,480
	74,834	EMCOR Group, Inc.		3,441,616
	30,580	Orion Marine Group, Inc.(b)		358,703
				6,700,350
		Electrical Equipment—7.3%
	28,556	AZZ, Inc.		1,239,901
	20,844	Encore Wire Corp.		1,015,728
	52,736	EnerSys		3,563,899
	43,725	Franklin Electric Co., Inc.		1,690,846
	10,331	Powell Industries, Inc.		654,159
	20,253	Vicor Corp.(b)		169,315
				8,333,848
		Machinery—23.5%
	81,372	Actuant Corp., Class A		2,755,256
	31,547	Albany International Corp., Class A		1,135,061
	20,962	Astec Industries, Inc.		837,432
	52,784	Barnes Group, Inc.		2,033,240
	52,567	Briggs & Stratton Corp.		1,123,357
	19,692	CIRCOR International, Inc.		1,599,187
	23,721	EnPro Industries, Inc.(b)		1,689,172
	29,625	ESCO Technologies, Inc.		990,067
	70,203	Federal Signal Corp.(b)		1,065,682
	30,627	John Bean Technologies Corp.		887,877
	14,449	Lindsay Corp.		1,273,390
	18,808	Lydall, Inc.(b)		440,295
	63,367	Mueller Industries, Inc.		1,833,841
	14,270	Standex International Corp.		847,210
	20,680	Tennant Co.		1,319,177
	59,901	Titan International, Inc.		1,048,867
	63,068	Toro Co. (The)		4,007,341
	31,985	Watts Water Technologies, Inc., Class A		1,701,602
				26,588,054
		Marine—1.0%
	48,009	Matson, Inc.		1,137,333
		Professional Services—9.4%
	16,135	CDI Corp.		247,188
	14,607	Exponent, Inc.		1,028,625
	18,025	Heidrick & Struggles International, Inc.		339,771
	25,382	Insperity, Inc.		813,747
	30,546	Kelly Services, Inc., Class A		643,299
	55,610	Korn/Ferry International(b)		1,615,471
	54,875	Navigant Consulting, Inc.(b)		921,900
	51,934	On Assignment, Inc.(b)		1,817,690
	43,656	Resources Connection, Inc.		594,158
	45,959	TrueBlue, Inc.(b)		1,229,403
	33,475	WageWorks, Inc.(b)		1,418,336
				10,669,588
		Road & Rail—5.0%
	27,190	ArcBest Corp.		1,071,830
	55,900	Heartland Express, Inc.		1,216,384
	67,630	Knight Transportation, Inc.		1,604,860
	28,142	Roadrunner Transportation Systems, Inc.(b)		693,137

Number of Shares			Value
		Common Stocks (continued)
		Road & Rail (continued)
	27,372	Saia, Inc.(b)	$	1,126,905
				5,713,116
		Trading Companies & Distributors—4.9%
	29,830	Aceto Corp.		652,680
	46,926	Applied Industrial Technologies, Inc.		2,248,694
	11,829	DXP Enterprises, Inc.(b)		1,339,161
	30,033	Kaman Corp.		1,260,485
				5,501,020
		Total Common Stocks (Cost $99,041,350)		113,355,074
		Money Market Fund—0.0%
	29,804	Invesco Premier Portfolio—Institutional Class(c) (Cost $29,804)		29,804
		Total Investments (Cost $99,071,154)—100.0%		113,384,878
		Other assets less liabilities—(0.0)%		(16,210	)
		Net Assets—100.0%	$	113,368,668

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.

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

16

Portfolio Composition

PowerShares S&P SmallCap Information Technology Portfolio (PSCT)

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Electronic Equipment, Instruments & Components	27.4
Semiconductors & Semiconductor Equipment	22.8
Software	14.4
IT Services	11.6
Internet Software & Services	11.0
Communications Equipment	8.9
Technology Hardware, Storage & Peripherals	3.0
Money Market Fund Plus Other Assets Less Liabilities	0.9

Schedule of Investments^(a)

PowerShares S&P SmallCap Information Technology Portfolio (PSCT)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—99.1%
		Communications Equipment—8.9%
	232,101	ARRIS Group, Inc.(b)	$	6,055,515
	19,475	Bel Fuse, Inc., Class B		423,776
	30,769	Black Box Corp.		654,149
	65,719	CalAmp Corp.(b)		1,166,512
	30,099	Comtech Telecommunications Corp.		955,643
	50,817	Digi International, Inc.(b)		450,239
	193,529	Harmonic, Inc.(b)		1,360,509
	110,671	Ixia(b)		1,374,534
	71,600	NETGEAR, Inc.(b)		2,312,680
	35,413	Oplink Communications, Inc.(b)		606,979
	34,208	PC-Tel, Inc.		282,216
	40,560	Procera Networks, Inc.(b)		375,585
	83,271	ViaSat, Inc.(b)		5,346,831
				21,365,168
		Electronic Equipment, Instruments & Components—27.4%
	27,813	Agilysys, Inc.(b)		348,775
	52,426	Anixter International, Inc.		5,136,700
	28,293	Badger Meter, Inc.		1,401,918
	85,377	Belden, Inc.		6,301,676
	105,456	Benchmark Electronics, Inc.(b)		2,444,470
	81,372	Checkpoint Systems, Inc.(b)		1,039,120
	162,027	Cognex Corp.(b)		5,578,590
	48,779	Coherent, Inc.(b)		2,912,594
	66,212	CTS Corp.		1,177,912
	75,366	Daktronics, Inc.		981,265
	33,318	DTS, Inc.(b)		620,048
	49,937	Electro Scientific Industries, Inc.		423,466

Number of Shares			Value
		Common Stocks (continued)
		Electronic Equipment, Instruments & Components (continued)
	51,650	Fabrinet (Cayman Islands)(b)	$	1,115,640
	33,754	FARO Technologies, Inc.(b)		1,346,785
	106,992	II-VI, Inc.(b)		1,540,685
	81,520	Insight Enterprises, Inc.(b)		2,129,302
	44,107	Littelfuse, Inc.		3,993,889
	29,798	Measurement Specialties, Inc.(b)		1,917,501
	65,301	Mercury Systems, Inc.(b)		911,602
	69,741	Methode Electronics, Inc.		1,934,615
	30,009	MTS Systems Corp.		1,934,680
	76,873	Newport Corp.(b)		1,435,988
	36,796	OSI Systems, Inc.(b)		2,053,585
	40,987	Park Electrochemical Corp.		1,092,713
	66,640	Plexus Corp.(b)		2,793,549
	55,328	Rofin-Sinar Technologies, Inc.(b)		1,228,282
	35,119	Rogers Corp.(b)		2,107,842
	162,568	Sanmina Corp.(b)		3,292,002
	55,980	ScanSource, Inc.(b)		2,150,192
	51,869	SYNNEX Corp.(b)		3,494,933
	107,148	TTM Technologies, Inc.(b)		845,398
				65,685,717
		Internet Software & Services—11.0%
	82,849	Blucora, Inc.(b)		1,594,843
	63,115	comScore, Inc.(b)		1,977,393
	85,143	Dealertrack Technologies, Inc.(b)		3,890,184
	72,341	Dice Holdings, Inc.(b)		553,409
	55,228	Digital River, Inc.(b)		844,436
	87,328	j2 Global, Inc.		4,048,526

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

17

PowerShares S&P SmallCap Information Technology Portfolio (PSCT) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks (continued)
		Internet Software & Services (continued)
	51,362	Liquidity Services, Inc.(b)	$	885,994
	96,741	LivePerson, Inc.(b)		957,736
	44,689	LogMeIn, Inc.(b)		2,031,115
	188,757	Monster Worldwide, Inc.(b)		1,300,536
	117,499	NIC, Inc.		2,154,932
	46,049	OpenTable, Inc.(b)		3,092,651
	66,687	Perficient, Inc.(b)		1,218,371
	56,369	QuinStreet, Inc.(b)		343,851
	28,772	Stamps.com, Inc.(b)		998,676
	48,781	XO Group, Inc.(b)		518,054
				26,410,707
		IT Services—11.6%
	46,081	CACI International, Inc., Class A(b)		3,209,542
	87,358	Cardtronics, Inc.(b)		2,924,746
	133,858	CIBER, Inc.(b)		578,267
	67,176	CSG Systems International, Inc.		1,770,759
	60,028	ExlService Holdings, Inc.(b)		1,698,492
	24,826	Forrester Research, Inc.		879,585
	72,091	Heartland Payment Systems, Inc.		2,951,406
	63,956	Higher One Holdings, Inc.(b)		383,097
	57,672	iGATE Corp.(b)		2,110,795
	46,557	ManTech International Corp., Class A		1,388,795
	133,256	MAXIMUS, Inc.		5,672,708
	76,684	Sykes Enterprises, Inc.(b)		1,517,576
	37,303	TeleTech Holdings, Inc.(b)		900,121
	50,980	Virtusa Corp.(b)		1,680,811
				27,666,700
		Semiconductors & Semiconductor Equipment—22.8%
	74,115	Advanced Energy Industries, Inc.(b)		1,621,636
	130,882	Brooks Automation, Inc.		1,338,923
	47,992	Cabot Microelectronics Corp.(b)		2,081,413
	43,172	CEVA, Inc.(b)		700,682
	122,381	Cirrus Logic, Inc.(b)		2,729,096
	45,845	Cohu, Inc.		472,203
	71,534	Diodes, Inc.(b)		1,886,352
	44,307	DSP Group, Inc.(b)		352,684
	180,670	Entropic Communications, Inc.(b)		666,672
	93,247	Exar Corp.(b)		1,008,933
	265,780	GT Advanced Technologies, Inc.(b)		4,414,606
	61,618	Hittite Microwave Corp.		3,657,644
	120,001	Kopin Corp.(b)		391,203
	150,033	Kulicke & Soffa Industries, Inc. (Singapore)(b)		2,206,985
	88,395	Micrel, Inc.		880,414
	186,047	Microsemi Corp.(b)		4,375,825
	104,848	MKS Instruments, Inc.		2,951,471
	69,134	Monolithic Power Systems, Inc.(b)		2,564,871
	44,320	Nanometrics, Inc.(b)		720,643
	40,784	Pericom Semiconductor Corp.(b)		329,127
	59,415	Power Integrations, Inc.		2,806,170
	44,235	Rubicon Technology, Inc.(b)		448,101
	64,692	Rudolph Technologies, Inc.(b)		589,344
	61,158	Sigma Designs, Inc.(b)		230,566
	69,857	Synaptics, Inc.(b)		4,341,613
	93,870	Tessera Technologies, Inc.		2,058,569
	321,599	TriQuint Semiconductor, Inc.(b)		4,560,274
	55,008	Ultratech, Inc.(b)		1,464,313

Number of Shares			Value
		Common Stocks (continued)
		Semiconductors & Semiconductor Equipment (continued)
	78,250	Veeco Instruments, Inc.(b)	$	2,892,903
				54,743,236
		Software—14.4%
	90,571	Blackbaud, Inc.		2,757,887
	73,177	Bottomline Technologies, Inc.(b)		2,315,320
	62,667	Ebix, Inc.		988,885
	60,914	Epiq Systems, Inc.		779,090
	30,980	Interactive Intelligence Group, Inc.(b)		1,938,419
	150,125	Manhattan Associates, Inc.(b)		4,733,441
	17,754	MicroStrategy, Inc., Class A(b)		2,155,868
	76,626	Monotype Imaging Holdings, Inc.		2,023,693
	73,046	Netscout Systems, Inc.(b)		2,845,872
	101,293	Progress Software Corp.(b)		2,173,748
	59,891	Synchronoss Technologies, Inc.(b)		1,823,082
	182,857	Take-Two Interactive Software, Inc.(b)		3,726,626
	66,842	Tangoe, Inc.(b)		1,005,304
	56,899	Tyler Technologies, Inc.(b)		4,645,803
	57,358	VASCO Data Security International, Inc.(b)		654,455
				34,567,493
		Technology Hardware, Storage & Peripherals—3.0%
	92,222	Electronics for Imaging, Inc.(b)		3,485,069
	46,972	Intevac, Inc.(b)		378,124
	170,765	QLogic Corp.(b)		1,977,459
	65,252	Super Micro Computer, Inc.(b)		1,328,531
				7,169,183
		Total Common Stocks (Cost $208,284,565)		237,608,204
		Money Market Fund—0.9%
	2,214,969	Invesco Premier Portfolio—Institutional Class(c) (Cost $2,214,969)		2,214,969
		Total Investments (Cost $210,499,534)—100.0%		239,823,173
		Other assets less liabilities—(0.0)%		(38,743	)
		Net Assets—100.0%	$	239,784,430

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.

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

18

Portfolio Composition

PowerShares S&P SmallCap Materials Portfolio (PSCM)

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Chemicals	39.1
Metals & Mining	32.6
Paper & Forest Products	20.7
Construction Materials	6.6
Containers & Packaging	1.2
Money Market Fund Plus Other Assets Less Liabilities	(0.2)

Schedule of Investments^(a)

PowerShares S&P SmallCap Materials Portfolio (PSCM)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.2%
		Chemicals—39.1%
	41,211	A. Schulman, Inc.	$	1,480,299
	35,433	American Vanguard Corp.		631,062
	42,901	Balchem Corp.		2,657,717
	76,055	Calgon Carbon Corp.(b)		1,523,382
	64,649	Flotek Industries, Inc.(b)		1,810,818
	31,903	FutureFuel Corp.		640,293
	70,854	H.B. Fuller Co.		3,282,666
	13,380	Hawkins, Inc.		484,356
	31,634	Innophos Holdings, Inc.		1,785,423
	29,207	Koppers Holdings, Inc.		1,247,139
	46,083	Kraton Performance Polymers, Inc.(b)		1,200,462
	27,114	LSB Industries, Inc.(b)		1,035,484
	45,287	OM Group, Inc.		1,326,456
	18,683	Quaker Chemical Corp.		1,390,576
	26,876	Stepan Co.		1,554,239
	35,668	Tredegar Corp.		742,251
	32,518	Zep, Inc.		562,236
				23,354,859
		Construction Materials—6.6%
	103,824	Headwaters, Inc.(b)		1,295,724
	30,387	Texas Industries, Inc.(b)		2,634,553
				3,930,277
		Containers & Packaging—1.2%
	37,376	Myers Industries, Inc.		698,931
		Metals & Mining—32.6%
	24,220	A.M. Castle & Co.(b)		297,422
	193,476	AK Steel Holding Corp.(b)		1,354,332
	35,450	AMCOL International Corp.		1,625,382
	72,830	Century Aluminum Co.(b)		1,001,412
	90,586	Globe Specialty Metals, Inc.		1,755,557
	17,531	Haynes International, Inc.		930,020
	25,499	Kaiser Aluminum Corp.		1,795,130

Number of Shares			Value
		Common Stocks (continued)
		Metals & Mining (continued)
	29,188	Materion Corp.	$	982,176
	12,882	Olympic Steel, Inc.		339,570
	43,253	RTI International Metals, Inc.(b)		1,218,004
	169,335	Stillwater Mining Co.(b)		2,672,106
	98,694	SunCoke Energy, Inc.(b)		2,059,744
	75,803	US Silica Holdings, Inc.		3,424,021
				19,454,876
		Paper & Forest Products—20.7%
	44,577	Boise Cascade Co.(b)		1,115,317
	29,601	Clearwater Paper Corp.(b)		1,817,205
	15,793	Deltic Timber Corp.		959,425
	113,814	KapStone Paper and Packaging Corp.(b)		3,002,413
	23,179	Neenah Paper, Inc.		1,167,526
	61,075	P.H. Glatfelter Co.		1,558,634
	43,031	Schweitzer-Mauduit International, Inc.		1,877,873
	70,418	Wausau Paper Corp.		842,199
				12,340,592
		Total Common Stocks (Cost $56,769,555)		59,779,535
		Money Market Fund—0.0%
	7,794	Invesco Premier Portfolio—Institutional Class(c) (Cost $7,794)		7,794
		Total Investments (Cost $56,777,349)—100.2%		59,787,329
		Other assets less liabilities—(0.2)%		(151,541	)
		Net Assets—100.0%	$	59,635,788

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

19

PowerShares S&P SmallCap Materials Portfolio (PSCM) (continued)

April 30, 2014

(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.

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

20

Portfolio Composition

PowerShares S&P SmallCap Utilities Portfolio (PSCU)

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Gas Utilities	39.8
Electric Utilities	25.4
Diversified Telecommunication Services	17.4
Multi-Utilities	9.4
Water Utilities	4.2
Wireless Telecommunication Services	3.8
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares S&P SmallCap Utilities Portfolio (PSCU)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Diversified Telecommunication Services—17.4%
	147,937	8x8, Inc.(b)	$	1,434,989
	22,755	Atlantic Tele-Network, Inc.		1,346,413
	64,372	Cbeyond, Inc.(b)		636,639
	453,135	Cincinnati Bell, Inc.(b)		1,518,002
	70,487	General Communication, Inc., Class A(b)		735,884
	41,197	Lumos Networks Corp.		544,213
				6,216,140
		Electric Utilities—25.4%
	31,137	ALLETE, Inc.		1,611,651
	45,509	El Paso Electric Co.		1,721,150
	70,957	UIL Holdings Corp.		2,606,251
	52,322	UNS Energy Corp.		3,142,459
				9,081,511
		Gas Utilities—39.8%
	33,900	Laclede Group, Inc. (The)		1,607,199
	52,955	New Jersey Resources Corp.		2,633,452
	36,624	Northwest Natural Gas Co.		1,621,345
	97,944	Piedmont Natural Gas Co., Inc.		3,505,416
	28,382	South Jersey Industries, Inc.		1,630,546
	58,431	Southwest Gas Corp.		3,214,289
				14,212,247
		Multi-Utilities—9.4%
	52,680	Avista Corp.		1,693,662
	34,319	NorthWestern Corp.		1,660,353
				3,354,015
		Water Utilities—4.2%
	49,312	American States Water Co.		1,497,112

Number of Shares			Value
		Common Stocks (continued)
		Wireless Telecommunication Services—3.8%
	35,007	NTELOS Holdings Corp.	$	482,747
	49,648	USA Mobility, Inc.		850,470
				1,333,217
		Total Common Stocks (Cost $28,472,227)		35,694,242
		Money Market Fund—0.0%
	14,478	Invesco Premier Portfolio—Institutional Class(c) (Cost $14,478)		14,478
		Total Investments (Cost $28,486,705)—100.0%		35,708,720
		Other assets less liabilities—0.0%		8,335
		Net Assets—100.0%	$	35,717,055

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.

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

21

Statements of Assets and Liabilities

April 30, 2014

(Unaudited)

	PowerShares DWA SmallCap Momentum Portfolio (DWAS)			PowerShares S&P SmallCap Consumer Discretionary Portfolio (PSCD)		PowerShares S&P SmallCap Consumer Staples Portfolio (PSCC)		PowerShares S&P SmallCap Energy Portfolio (PSCE)
Assets:
Unaffiliated investments, at value(a)	$	514,484,488		$	111,548,636	$	34,905,465	$	57,485,752
Affiliated investments, at value		48,764,144			7,788,282		914,070		7,466
Total investments, at value		563,248,632			119,336,918		35,819,535		57,493,218
Receivables:
Investments sold		7,196,960			—		—		2,585,527
Security lending		175,273			11,213		344		—
Dividends		44,859			36,291		25,435		—
Foreign tax reclaims		1,694			—		—		—
Shares sold		—			—		—		—
Total Assets		570,667,418			119,384,422		35,845,314		60,078,745
Liabilities:
Due to custodian		28			25,503		28		28
Payables:
Collateral upon return of securities loaned		48,738,773			7,788,282		911,493		—
Shares repurchased		7,195,488			—		—		2,585,064
Investments purchased		—			—		—		—
Accrued unitary management fees		282,696			26,862		8,675		12,673
Total Liabilities		56,216,985			7,840,647		920,196		2,597,765
Net Assets	$	514,450,433		$	111,543,775	$	34,925,118	$	57,480,980
Net Assets Consist of:
Shares of beneficial interest	$	513,360,919		$	83,541,719	$	28,050,403	$	58,671,878
Undistributed net investment income (loss)		(128,360	)		116,053		48,681		(13,824	)
Undistributed net realized gain (loss)		(10,233,272	)		8,016,635		6,336,974		(6,451,726	)
Net unrealized appreciation		11,451,146			19,869,368		489,060		5,274,652
Net Assets	$	514,450,433		$	111,543,775	$	34,925,118	$	57,480,980
Shares outstanding (unlimited amount authorized, $0.01 par value)		14,150,001			2,400,000		700,000		1,100,000
Net asset value	$	36.36		$	46.48	$	49.89	$	52.26
Market price	$	36.34		$	46.46	$	49.84	$	52.24
Unaffiliated investments, at cost	$	503,033,342		$	91,679,268	$	34,416,405	$	52,211,100
Affiliated investments, at cost	$	48,764,144		$	7,788,282	$	914,070	$	7,466
Total investments, at cost	$	551,797,486		$	99,467,550	$	35,330,475	$	52,218,566
(a) Includes securities on loan with an aggregate value of:	$	48,408,502		$	7,636,266	$	898,849	$	—

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

22

PowerShares S&P SmallCap Financials Portfolio (PSCF)		PowerShares S&P SmallCap Health Care Portfolio (PSCH)		PowerShares S&P SmallCap Industrials Portfolio (PSCI)		PowerShares S&P SmallCap Information Technology Portfolio (PSCT)			PowerShares S&P SmallCap Materials Portfolio (PSCM)		PowerShares S&P SmallCap Utilities Portfolio (PSCU)
$	107,145,245	$	163,401,478	$	113,355,074	$	237,608,204		$	59,779,535	$	35,694,242
	—		36,516		29,804		2,214,969			7,794		14,478
	107,145,245		163,437,994		113,384,878		239,823,173			59,787,329		35,708,720
	—		—		644,733		—			4,965,650		—
	—		—		—		—			—		—
	188,208		16,543		18,762		19,838			31,689		16,847
	—		—		—		—			—		—
	—		—		—		—			4,388,565		—
	107,333,453		163,454,537		114,048,373		239,843,011			69,173,233		35,725,567
	51,328		28		28		28			28		28
	—		—		—		—			—		—
	—		—		—		—			4,417,466		—
	—		—		652,382		—			5,106,208		—
	25,995		41,116		27,295		58,553			13,743		8,484
	77,323		41,144		679,705		58,581			9,537,445		8,512
$	107,256,130	$	163,413,393	$	113,368,668	$	239,784,430		$	59,635,788	$	35,717,055
$	84,667,835	$	128,123,606	$	97,748,313	$	205,942,296		$	56,486,866	$	29,511,450
	276,489		64,111		53,752		(123,047	)		36,397		138,824
	528,894		25,495,362		1,252,879		4,641,542			102,545		(1,155,234	)
	21,782,912		9,730,314		14,313,724		29,323,639			3,009,980		7,222,015
$	107,256,130	$	163,413,393	$	113,368,668	$	239,784,430		$	59,635,788	$	35,717,055
	2,800,000		3,100,000		2,550,000		5,550,000			1,350,000		1,000,000
$	38.31	$	52.71	$	44.46	$	43.20		$	44.17	$	35.72
$	38.30	$	52.71	$	44.45	$	43.19		$	44.26	$	35.74
$	85,362,333	$	153,671,164	$	99,041,350	$	208,284,565		$	56,769,555	$	28,472,227
$	—	$	36,516	$	29,804	$	2,214,969		$	7,794	$	14,478
$	85,362,333	$	153,707,680	$	99,071,154	$	210,499,534		$	56,777,349	$	28,486,705
$	—	$	—	$	—	$	—		$	—	$	—

23

Statements of Operations

For the six months ended April 30, 2014

(Unaudited)

	PowerShares DWA SmallCap Momentum Portfolio (DWAS)			PowerShares S&P SmallCap Consumer Discretionary Portfolio (PSCD)			PowerShares S&P SmallCap Consumer Staples Portfolio (PSCC)			PowerShares S&P SmallCap Energy Portfolio (PSCE)
Investment Income:
Unaffiliated dividend income	$	1,585,906		$	481,240		$	195,890		$	74,582
Security lending income		286,778			44,865			4,199			—
Affiliated dividend income		23			10			1			1
Foreign withholding tax		(2,541	)		—			—			—
Total Income		1,870,166			526,115			200,090			74,583
Expenses:
Unitary management fees		1,791,599			163,942			68,953			69,618
Waivers		(168	)		(64	)		(17	)		(7	)
Net Expenses		1,791,431			163,878			68,936			69,611
Net Investment Income		78,735			362,237			131,154			4,972
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain (loss) from:
Investment securities		(23,339,681	)		102,213			(51,925	)		(1,296,477	)
In-kind redemptions		20,664,993			10,299,424			7,034,270			2,385,399
Net realized gain (loss)		(2,674,688	)		10,401,637			6,982,345			1,088,922
Net change in unrealized appreciation (depreciation) on investment securities		(20,373,736	)		(8,799,865	)		(6,304,533	)		2,316,198
Net realized and unrealized gain (loss)		(23,048,424	)		1,601,772			677,812			3,405,120
Net increase (decrease) in net assets resulting from operations	$	(22,969,689	)	$	1,964,009		$	808,966		$	3,410,092

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

24

PowerShares S&P SmallCap Financials Portfolio (PSCF)			PowerShares S&P SmallCap Health Care Portfolio (PSCH)			PowerShares S&P SmallCap Industrials Portfolio (PSCI)			PowerShares S&P SmallCap Information Technology Portfolio (PSCT)			PowerShares S&P SmallCap Materials Portfolio (PSCM)			PowerShares S&P SmallCap Utilities Portfolio (PSCU)
$	1,606,241		$	363,372		$	495,551		$	657,641		$	149,280		$	540,136
	—			—			—			—			—			—
	4			9			55			12			—			1
	—			—			—			—			—			—
	1,606,245			363,381			495,606			657,653			149,280			540,137
	152,587			276,764			145,004			332,145			45,690			48,651
	(30	)		(47	)		(346	)		(17	)		(3	)		(8	)
	152,557			276,717			144,658			332,128			45,687			48,643
	1,453,688			86,664			350,948			325,525			103,593			491,494
	(286,462	)		(795,280	)		(388,992	)		(645,296	)		(113,430	)		(179,926	)
	1,795,640			28,721,190			2,359,505			8,489,176			570,147			—
	1,509,178			27,925,910			1,970,513			7,843,880			456,717			(179,926	)
	(1,882,156	)		(21,812,849	)		1,581,699			(565,191	)		1,414,402			1,585,946
	(372,978	)		6,113,061			3,552,212			7,278,689			1,871,119			1,406,020
$	1,080,710		$	6,199,725		$	3,903,160		$	7,604,214		$	1,974,712		$	1,897,514

25

Statements of Changes in Net Assets

For the six months ended April 30, 2014 and the year ended October 31, 2013

(Unaudited)

	PowerShares DWA SmallCap Momentum Portfolio (DWAS)						PowerShares S&P SmallCap Consumer Discretionary Portfolio (PSCD)
	April 30, 2014			October 31, 2013			April 30, 2014			October 31, 2013
Operations:
Net investment income	$	78,735		$	147,357		$	362,237		$	783,995
Net realized gain (loss)		(2,674,688	)		4,970,131			10,401,637			3,420,020
Net change in unrealized appreciation (depreciation)		(20,373,736	)		31,731,201			(8,799,865	)		22,376,466
Net increase (decrease) in net assets resulting from operations		(22,969,689	)		36,848,689			1,964,009			26,580,481
Distributions to Shareholders from:
Net investment income		(207,095	)		(256,651	)		(317,347	)		(788,119	)
Capital gains		—			—			—			—
Total distributions to shareholders		(207,095	)		(256,651	)		(317,347	)		(788,119	)
Shareholder Transactions:
Proceeds from shares sold		192,122,456			538,248,946			30,921,893			29,566,862
Value of shares repurchased		(159,541,216	)		(84,025,929	)		(23,222,369	)		(14,312,423	)
Net increase (decrease) in net assets resulting from shares transactions		32,581,240			454,223,017			7,699,524			15,254,439
Increase (Decrease) in Net Assets		9,404,456			490,815,055			9,346,186			41,046,801
Net Assets:
Beginning of period		505,045,977			14,230,922			102,197,589			61,150,788
End of period	$	514,450,433		$	505,045,977		$	111,543,775		$	102,197,589
Undistributed net investment income (loss) at end of period	$	(128,360	)	$	—		$	116,053		$	71,163
Changes in Shares Outstanding:
Shares sold		4,900,000			15,400,000			650,000			700,000
Shares repurchased		(4,350,000	)		(2,350,000	)		(500,000	)		(350,000	)
Shares outstanding, beginning of period		13,600,001			550,001			2,250,000			1,900,000
Shares outstanding, end of period		14,150,001			13,600,001			2,400,000			2,250,000

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

26

PowerShares S&P SmallCap Consumer Staples Portfolio (PSCC)						PowerShares S&P SmallCap Energy Portfolio (PSCE)						PowerShares S&P SmallCap Financials Portfolio (PSCF)
April 30, 2014			October 31, 2013			April 30, 2014			October 31, 2013			April 30, 2014			October 31, 2013
$	131,154		$	208,241		$	4,972		$	225,579		$	1,453,688		$	2,084,560
	6,982,345			3,708,126			1,088,922			(2,537,285	)		1,509,178			5,630,987
	(6,304,533	)		6,013,409			2,316,198			13,755,864			(1,882,156	)		13,497,012
	808,966			9,929,776			3,410,092			11,444,158			1,080,710			21,212,559
	(168,660	)		(212,076	)		(557	)		(224,127	)		(1,475,568	)		(2,375,822	)
	—			—			—			—			(77,662	)		—
	(168,660	)		(212,076	)		(557	)		(224,127	)		(1,553,230	)		(2,375,822	)
	26,894,803			28,105,896			15,120,843			27,600,720			15,645,628			28,588,475
	(38,761,027	)		(20,769,670	)		(9,328,538	)		(29,862,036	)		(5,886,235	)		(20,930,779	)
	(11,866,224	)		7,336,226			5,792,305			(2,261,316	)		9,759,393			7,657,696
	(11,225,918	)		17,053,926			9,201,840			8,958,715			9,286,873			26,494,433
	46,151,036			29,097,110			48,279,140			39,320,425			97,969,257			71,474,824
$	34,925,118		$	46,151,036		$	57,480,980		$	48,279,140		$	107,256,130		$	97,969,257
$	48,681		$	86,187		$	(13,824	)	$	(18,239	)	$	276,489		$	298,369
	550,000			650,000			300,000			600,000			400,000			800,000
	(800,000	)		(550,000	)		(200,000	)		(800,000	)		(150,000	)		(600,000	)
	950,000			850,000			1,000,000			1,200,000			2,550,000			2,350,000
	700,000			950,000			1,100,000			1,000,000			2,800,000			2,550,000

27

Statements of Changes in Net Assets (continued)

For the six months ended April 30, 2014 and the year ended October 31, 2013

(Unaudited)

	PowerShares S&P SmallCap Health Care Portfolio (PSCH)						PowerShares S&P SmallCap Industrials Portfolio (PSCI)
	April 30, 2014			October 31, 2013			April 30, 2014			October 31, 2013
Operations:
Net investment income	$	86,664		$	422,111		$	350,948		$	359,197
Net realized gain (loss)		27,925,910			11,993,053			1,970,513			1,030,175
Net change in unrealized appreciation (depreciation)		(21,812,849	)		35,345,915			1,581,699			12,358,533
Net increase in net assets resulting from operations		6,199,725			47,761,079			3,903,160			13,747,905
Distributions to Shareholders from:
Net investment income		(50,440	)		(438,238	)		(355,342	)		(473,313	)
Shareholder Transactions:
Proceeds from shares sold		60,966,967			68,405,949			44,556,627			51,494,761
Value of shares repurchased		(81,866,454	)		(59,430,329	)		(8,762,844	)		(9,105,548	)
Net increase (decrease) in net assets resulting from shares transactions		(20,899,487	)		8,975,620			35,793,783			42,389,213
Increase (Decrease) in Net Assets		(14,750,202	)		56,298,461			39,341,601			55,663,805
Net Assets:
Beginning of period		178,163,595			121,865,134			74,027,067			18,363,262
End of period	$	163,413,393		$	178,163,595		$	113,368,668		$	74,027,067
Undistributed net investment income (loss) at end of period	$	64,111		$	27,887		$	53,752		$	58,146
Changes in Shares Outstanding:
Shares sold		1,100,000			1,450,000			1,000,000			1,400,000
Shares repurchased		(1,500,000	)		(1,500,000	)		(200,000	)		(250,000	)
Shares outstanding, beginning of period		3,500,000			3,550,000			1,750,000			600,000
Shares outstanding, end of period		3,100,000			3,500,000			2,550,000			1,750,000

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

28

PowerShares S&P SmallCap Information Technology Portfolio (PSCT)						PowerShares S&P SmallCap Materials Portfolio (PSCM)						PowerShares S&P SmallCap Utilities Portfolio (PSCU)
April 30, 2014			October 31, 2013			April 30, 2014			October 31, 2013			April 30, 2014			October 31, 2013
$	325,525		$	293,953		$	103,593		$	75,187		$	491,494		$	954,658
	7,843,880			8,229,116			456,717			582,835			(179,926	)		461,853
	(565,191	)		36,654,232			1,414,402			1,796,511			1,585,946			2,941,872
	7,604,214			45,177,301			1,974,712			2,454,533			1,897,514			4,358,383
	(471,499	)		(899,671	)		(79,942	)		(80,742	)		(506,557	)		(1,270,957	)
	46,822,208			117,530,934			44,004,203			14,953,329			1,752,777			4,911,103
	(24,188,812	)		(30,296,222	)		(4,417,466	)		(5,217,979	)		—			(4,966,528	)
	22,633,396			87,234,712			39,586,737			9,735,350			1,752,777			(55,425	)
	29,766,111			131,512,342			41,481,507			12,109,141			3,143,734			3,032,001
	210,018,319			78,505,977			18,154,281			6,045,140			32,573,321			29,541,320
$	239,784,430		$	210,018,319		$	59,635,788		$	18,154,281		$	35,717,055		$	32,573,321
$	(123,047	)	$	22,927		$	36,397		$	12,746		$	138,824		$	153,887
	1,050,000			3,250,000			1,000,000			400,000			50,000			150,000
	(550,000	)		(850,000	)		(100,000	)		(150,000	)		—			(150,000	)
	5,050,000			2,650,000			450,000			200,000			950,000			950,000
	5,550,000			5,050,000			1,350,000			450,000			1,000,000			950,000

29

Financial Highlights

PowerShares DWA SmallCap Momentum Portfolio (DWAS)

	Six-Months Ended April 30, 2014 (Unaudited)			Year Ended October 31, 2013			For the Period July 16,  2012(a) Through October 31, 2012
Per Share Operating Performance:
Net asset value at beginning of period	$	37.14		$	25.87		$	24.85
Net investment income(b)		0.00	(c)		0.04			0.03
Net realized and unrealized gain (loss) on investments		(0.77	)		11.50			0.99	(d)
Total from investment operations		(0.77	)		11.54			1.02
Distributions to shareholders from:
Net investment income		(0.01	)		(0.27	)		—
Net asset value at end of period	$	36.36		$	37.14		$	25.87
Market price at end of period(e)	$	36.34		$	37.22		$	25.80
Net Asset Value Total Return(f)		(2.07	)%		44.98	%		4.10	%(g)
Market Price Total Return(f)		(2.33	)%		45.69	%		3.82	%(g)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	514,450		$	505,046		$	14,231
Ratio to average net assets of:
Expenses		0.60	%(h)		0.60	%(i)		0.60	%(h)
Net investment income		0.03	%(h)		0.10	%		0.41	%(h)
Portfolio turnover rate(j)		85	%		145	%		18	%

PowerShares S&P SmallCap Consumer Discretionary Portfolio (PSCD)

	Six-Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,									For the Period April 5,  2010(a) Through October 31, 2010
				2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of period	$	45.42		$	32.18		$	27.16		$	24.96		$	25.61
Net investment income(b)		0.15			0.40			0.15			0.17			0.05
Net realized and unrealized gain (loss) on investments		1.04			13.25			5.03			2.18			(0.70	)(d)
Total from investment operations		1.19			13.65			5.18			2.35			(0.65	)
Distributions to shareholders from:
Net investment income		(0.13	)		(0.41	)		(0.16	)		(0.15	)		—
Net asset value at end of period	$	46.48		$	45.42		$	32.18		$	27.16		$	24.96
Market price at end of period(e)	$	46.46		$	45.52		$	32.18		$	27.19		$	24.96
Net Asset Value Total Return(f)		2.60	%		42.81	%		19.17	%		9.39	%		(2.54	)%(k)
Market Price Total Return(f)		2.32	%		43.13	%		19.04	%		9.51	%		(2.54	)%(k)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	111,544		$	102,198		$	61,151		$	43,450		$	31,206
Ratio to average net assets of:
Expenses		0.29	%(h)		0.30	%		0.29	%		0.29	%		0.29	%(h)
Net investment income		0.64	%(h)		1.04	%		0.50	%		0.61	%		0.41	%(h)
Portfolio turnover rate(j)		8	%		10	%		8	%		8	%		6	%

^(a)  Commencement of Investment Operations.

^(b)  Based on average shares outstanding.

^(c)  Amount represents less than $0.005.

^(d)  Due to the timing of creations and redemptions of capital shares, the net realized and unrealized gain (loss) per share is not in accord with the Fund’s change in net realized and unrealized gain (loss) on investment securities and in-kind transactions for the period.

^(e)  The mean between the last bid and ask prices.

^(f)  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 the 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.

^(g)  The net asset value total return from Fund Inception (July 19, 2012, the first day of trading on the Exchange) to October 31, 2012 was 3.52%. The market price total return from Fund Inception to October 31, 2012 was 3.12%.

^(h)  Annualized.

⁽ⁱ⁾  In addition to the fees and expenses, which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment company expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment company and are deducted from the value of the funds that the Fund invests in. The effect of the estimated investment companies expenses that the Fund bears indirectly is included in the Fund’s total returns.

^(j)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

^(k)  The net asset value total return from Fund Inception (April 7, 2010, the first day of trading on the Exchange) to October 31, 2010 was (3.37)%. The market price total return from Fund Inception to October 31, 2010 was (3.29)%.

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

30

Financial Highlights (continued)

PowerShares S&P SmallCap Consumer Staples Portfolio (PSCC)

	Six-Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,									For the Period April 5,  2010(a) Through October 31, 2010
				2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of period	$	48.58		$	34.23		$	30.81		$	27.42		$	25.40
Net investment income(b)		0.13			0.28			0.34			0.33			0.09
Net realized and unrealized gain on investments		1.32			14.31			3.30			3.37			1.98
Total from investment operations		1.45			14.59			3.64			3.70			2.07
Distributions to shareholders from:
Net investment income		(0.14	)		(0.24	)		(0.22	)		(0.31	)		(0.05	)
Net asset value at end of period	$	49.89		$	48.58		$	34.23		$	30.81		$	27.42
Market price at end of period(c)	$	49.84		$	48.68		$	34.14		$	30.84		$	27.44
Net Asset Value Total Return(d)		2.99	%		42.83	%		11.86	%		13.53	%		8.15	%(e)
Market Price Total Return(d)		2.68	%		43.51	%		11.45	%		13.55	%		8.23	%(e)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	34,925		$	46,151		$	29,097		$	12,324		$	5,485
Ratio to average net assets of:
Expenses		0.29	%(f)		0.30	%		0.29	%		0.29	%		0.29	%(f)
Net investment income		0.55	%(f)		0.69	%		1.01	%		1.07	%		0.61	%(f)
Portfolio turnover rate(g)		18	%		23	%		14	%		30	%		10	%

PowerShares S&P SmallCap Energy Portfolio (PSCE)

	Six-Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,									For the Period April 5,  2010(a) Through October 31, 2010
				2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of period	$	48.28		$	32.77		$	33.59		$	26.33		$	25.76
Net investment income(b)		0.00	(h)		0.29			0.01			0.11			0.00	(h)
Net realized and unrealized gain (loss) on investments		3.98			15.47			(0.81	)		7.57	(i)		0.57
Total from investment operations		3.98			15.76			(0.80	)		7.68			0.57
Distributions to shareholders from:
Net investment income		(0.00	)(j)		(0.25	)		(0.02	)		(0.24	)		—
Return of capital		—			—			(0.00	)(j)		(0.18	)		—
Total distributions		(0.00	)(j)		(0.25	)		(0.02	)		(0.42	)		—
Net asset value at end of period	$	52.26		$	48.28		$	32.77		$	33.59		$	26.33
Market price at end of period(c)	$	52.24		$	48.42		$	32.72		$	33.62		$	26.33
Net Asset Value Total Return(d)		8.25	%		48.41	%		(2.37	)%		29.21	%		2.21	%(k)
Market Price Total Return(d)		7.89	%		49.07	%		(2.61	)%		29.33	%		2.21	%(k)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	57,481		$	48,279		$	39,320		$	57,106		$	7,899
Ratio to average net assets of:
Expenses		0.29	%(f)		0.29	%		0.29	%		0.29	%		0.29	%(f)
Net investment income		0.02	%(f)		0.74	%		0.03	%		0.28	%		0.02	%(f)
Portfolio turnover rate(g)		9	%		38	%		36	%		46	%		13	%

^(a)  Commencement of Investment Operations.

^(b)  Based on average shares outstanding.

^(c)  The mean between the last bid and ask price.

^(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 the 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 (April 7, 2010, the first day of trading on the Exchange) to October 31, 2010 was 8.15%. The market price total return from Fund Inception to October 31, 2010 was 8.23%.

^(f)  Annualized.

^(g)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

^(h)  Amount represents less than $0.005.

⁽ⁱ⁾  Due to the timing of creations and redemptions of capital shares, the net realized and unrealized gain (loss) per share is not in accord with the Fund’s change in net realized and unrealized gain (loss) on investment securities and in-kind transactions for the period.

^(j)  Amount represents less than $(0.005).

^(k)  The net asset value total return from Fund Inception (April 7, 2010, the first day of trading on the Exchange) to October 31, 2010 was 2.89%. The market price total return from Fund Inception to October 31, 2010 was 3.05%.

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

31

Financial Highlights (continued)

PowerShares S&P SmallCap Financials Portfolio (PSCF)

	Six-Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,									For the Period April 5,  2010(a) Through October 31, 2010
				2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of period	$	38.42		$	30.41		$	26.33		$	25.04		$	25.41
Net investment income(b)		0.53			0.88			0.60			0.57			0.24
Net realized and unrealized gain (loss) on investments		(0.05	)		8.14			3.99			1.25			(0.46	)(c)
Total from investment operations		0.48			9.02			4.59			1.82			(0.22	)
Distributions to shareholders from:
Net investment income		(0.56	)		(1.01	)		(0.51	)		(0.53	)		(0.15	)
Capital gains		(0.03	)		—			—			—			—
Total distributions		(0.59	)		(1.01	)		(0.51	)		(0.53	)		(0.15	)
Net asset value at end of period	$	38.31		$	38.42		$	30.41		$	26.33		$	25.04
Market price at end of period(d)	$	38.30		$	38.50		$	30.39		$	26.36		$	25.02
Net Asset Value Total Return(e)		1.20	%		30.26	%		17.67	%		7.33	%		(0.84	)%(f)
Market Price Total Return(e)		0.96	%		30.62	%		17.46	%		7.54	%		(0.92	)%(f)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	107,256		$	97,969		$	71,475		$	60,557		$	50,080
Ratio to average net assets of:
Expenses		0.29	%(g)(h)		0.30	%(g)		0.29	%		0.29	%		0.29	%(h)
Net investment income		2.76	%(h)		2.56	%		2.05	%		2.14	%		1.90	%(h)
Portfolio turnover rate(i)		6	%		24	%		10	%		13	%		5	%

PowerShares S&P SmallCap Health Care Portfolio (PSCH)

	Six-Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,									For the Period April 5,  2010(a) Through October 31, 2010
				2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of period	$	50.90		$	34.33		$	30.42		$	25.31		$	25.30
Net investment income (loss)(b)		0.03			0.15			0.01			(0.02	)		(0.01	)
Net realized and unrealized gain on investments		1.79			16.56			4.22			5.20			0.02
Total from investment operations		1.82			16.71			4.23			5.18			0.01
Distributions to shareholders from:
Net investment income		(0.01	)		(0.14	)		(0.32	)		(0.07	)		—
Net asset value at end of period	$	52.71		$	50.90		$	34.33		$	30.42		$	25.31
Market price at end of period(d)	$	52.71		$	50.99		$	34.30		$	30.46		$	25.31
Net Asset Value Total Return(e)		3.58	%		48.85	%		14.01	%		20.51	%		0.04	%(j)
Market Price Total Return(e)		3.40	%		49.25	%		13.77	%		20.67	%		0.04	%(j)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	163,413		$	178,164		$	121,865		$	106,481		$	45,564
Ratio to average net assets of:
Expenses		0.29	%(h)		0.30	%		0.29	%		0.29	%		0.29	%(h)
Net investment income (loss)		0.09	%(h)		0.35	%		0.04	%		(0.06	)%		(0.08	)%(h)
Portfolio turnover rate(i)		7	%		16	%		23	%		15	%		14	%

^(a)  Commencement of Investment Operations.

^(b)  Based on average shares outstanding.

^(c)  Due to the timing of creations and redemptions of capital shares, the net realized and unrealized gain (loss) per share is not in accord with the Fund’s change in net realized and unrealized gain (loss) on investment securities and in-kind transactions for the period.

^(d)  The mean between the last bid and ask prices.

^(e)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and the 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)  The net asset value total return from Fund Inception (April 7, 2010, the first day of trading on the Exchange) to October 31, 2010 was (2.30)%. The market price total return from Fund Inception to October 31, 2010 was (2.42)%.

^(g)  In addition to the fees and expenses, which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment company expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment company and are deducted from the value of the funds that the Fund invests in. The effect of the estimated investment companies expenses that the Fund bears indirectly is included in the Fund’s total returns.

^(h)  Annualized.

⁽ⁱ⁾  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

^(j)  The net asset value total return from Fund Inception (April 7, 2010, the first day of trading on the Exchange) to October 31, 2010 was 0.92%. The market price total return from Fund Inception to October 31, 2010 was 1.00%.

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

32

Financial Highlights (continued)

PowerShares S&P SmallCap Industrials Portfolio (PSCI)

	Six-Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,									For the Period April 5,  2010(a) Through October 31, 2010
				2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of period	$	42.30		$	30.61		$	27.05		$	25.88		$	25.41
Net investment income(b)		0.15			0.32			0.42	(c)		0.19			0.12	(d)
Net realized and unrealized gain on investments		2.17			11.97			3.39			1.20			0.38
Total from investment operations		2.32			12.29			3.81			1.39			0.50
Distributions to shareholders from:
Net investment income		(0.16	)		(0.60	)		(0.25	)		(0.22	)		(0.03	)
Net asset value at end of period	$	44.46		$	42.30		$	30.61		$	27.05		$	25.88
Market price at end of period(e)	$	44.45		$	42.38		$	30.55		$	27.07		$	25.88
Net Asset Value Total Return(f)		5.48	%		40.72	%		14.16	%		5.34	%		1.95	%(g)
Market Price Total Return(f)		5.26	%		41.27	%		13.85	%		5.42	%		1.95	%(g)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	113,369		$	74,027		$	18,363		$	25,698		$	21,994
Ratio to average net assets of:
Expenses		0.29	%(h)		0.30	%		0.29	%		0.29	%		0.29	%(h)
Net investment income		0.70	%(h)		0.88	%		1.44	%(c)		0.63	%		0.95	%(d)(h)
Portfolio turnover rate(i)		5	%		30	%		9	%		9	%		11	%

PowerShares S&P SmallCap Information Technology Portfolio (PSCT)

	Six-Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,									For the Period April 5,  2010(a) Through October 31, 2010
				2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of period	$	41.59		$	29.62		$	27.80		$	26.39		$	25.53
Net investment income(b)		0.06			0.08			0.22			0.01			0.06	(j)
Net realized and unrealized gain on investments		1.64			12.21			1.62			1.46	(k)		0.80
Total from investment operations		1.70			12.29			1.84			1.47			0.86
Distributions to shareholders from:
Net investment income		(0.09	)		(0.32	)		(0.02	)		(0.05	)		—
Return of capital		—			—			—			(0.01	)		—
Total distributions		(0.09	)		(0.32	)		(0.02	)		(0.06	)		—
Net asset value at end of period	$	43.20		$	41.59		$	29.62		$	27.80		$	26.39
Market price at end of period(e)	$	43.19		$	41.67		$	29.59		$	27.80		$	26.38
Net Asset Value Total Return(f)		4.08	%		41.86	%		6.61	%		5.56	%		3.37	%(l)
Market Price Total Return(f)		3.85	%		42.28	%		6.50	%		5.60	%		3.33	%(l)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	239,784		$	210,018		$	78,506		$	80,620		$	35,626
Ratio to average net assets of:
Expenses		0.29	%(h)		0.29	%		0.29	%		0.29	%		0.29	%(h)
Net investment income		0.28	%(h)		0.23	%		0.74	%		0.02	%		0.48	%(h)(j)
Portfolio turnover rate(i)		4	%		17	%		14	%		9	%		10	%

^(a)  Commencement of Investment Operations.

^(b)  Based on average shares outstanding.

^(c)  Net Investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $10.50 per share owned of Kaydon Corp. on March 27, 2012. Net investment income per share and the ratio of net investment income to average net excluding the special dividends are $0.26 and 0.88%, respectively.

^(d)  Net investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $1 per share owned of Heartland Express, Inc. on October 5, 2010. Net investment income per share and the ratio of net investment income to average net assets excluding the special dividend are $0.09 and 0.68%, respectively.

^(e)  The mean between the last bid and ask price.

^(f)  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 the 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.

^(g)  The net asset value total return from Fund Inception (April 7, 2010, the first day of trading on the Exchange) to October 31, 2010 was 2.24%. The market price total return from Fund Inception to October 31, 2010 was 2.28%.

^(h)  Annualized.

⁽ⁱ⁾  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

^(j)  Net investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $3.25 per share owned of Anixter International, Inc. on October 28, 2010. Net investment income (loss) per share and the ratio of net investment income (loss) to average net assets excluding the special dividend are less than $(0.005) and (0.005)%, respectively.

^(k)  Due to the timing of creations and redemptions of capital shares, the net realized and unrealized gain (loss) per share is not in accord with the Fund’s change in net realized and unrealized gain (loss) on investment securities and in-kind transactions for the period.

^(l)  The net asset value total return from Fund Inception (April 7, 2010, the first day of trading on the Exchange) to October 31, 2010 was 3.33%. The market price total return from Fund Inception to October 31, 2010 was 3.33%.

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

33

Financial Highlights (continued)

PowerShares S&P SmallCap Materials Portfolio (PSCM)

	Six-Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,									For the Period April 5,  2010(a) Through October 31, 2010
				2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of period	$	40.34		$	30.23		$	25.92		$	26.22		$	25.60
Net investment income(b)		0.14			0.32			0.19			0.16			0.10
Net realized and unrealized gain (loss) on investments		3.81			10.18			4.26			(0.20	)(c)		0.60	(c)
Total from investment operations		3.95			10.50			4.45			(0.04	)		0.70
Distributions to shareholders from:
Net investment income		(0.12	)		(0.39	)		(0.14	)		(0.26	)		(0.08	)
Net asset value at end of period	$	44.17		$	40.34		$	30.23		$	25.92		$	26.22
Market price at end of period(d)	$	44.26		$	40.42		$	30.22		$	25.89		$	26.22
Net Asset Value Total Return(e)		9.80	%		35.00	%		17.24	%		(0.21	)%		2.79	%(f)
Market Price Total Return(e)		9.81	%		35.31	%		17.34	%		(0.33	)%		2.79	%(f)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	59,636		$	18,154		$	6,045		$	6,481		$	2,622
Ratio to average net assets of:
Expenses		0.29	%(g)		0.30	%		0.29	%		0.31	%		0.29	%(g)
Net investment income		0.66	%(g)		0.91	%		0.68	%		0.63	%		0.70	%(g)
Portfolio turnover rate(h)		6	%		15	%		14	%		17	%		28	%

PowerShares S&P SmallCap Utilities Portfolio (PSCU)

	Six-Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,									For the Period April 5,  2010(a) Through October 31, 2010
				2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of period	$	34.29		$	31.10		$	30.03		$	27.50		$	25.30
Net investment income(b)		0.50			1.00			1.13	(i)		0.91			0.40
Net realized and unrealized gain on investments		1.46			3.53			0.84			2.54			2.03
Total from investment operations		1.96			4.53			1.97			3.45			2.43
Distributions to shareholders from:
Net investment income		(0.53	)		(1.34	)		(0.90	)		(0.92	)		(0.23	)
Net asset value at end of period	$	35.72		$	34.29		$	31.10		$	30.03		$	27.50
Market price at end of period(d)	$	35.74		$	34.34		$	31.07		$	30.02		$	27.49
Net Asset Value Total Return(e)		5.74	%		15.06	%		6.66	%		12.76	%		9.70	%(j)
Market Price Total Return(e)		5.65	%		15.34	%		6.59	%		12.77	%		9.66	%(j)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	35,717		$	32,573		$	29,541		$	46,548		$	38,500
Ratio to average net assets of:
Expenses		0.29	%(g)		0.30	%		0.29	%		0.29	%		0.29	%(g)
Net investment income		2.91	%(g)		3.10	%		3.70	%(i)		3.16	%		3.14	%(g)
Portfolio turnover rate(h)		14	%		17	%		6	%		8	%		8	%

^(a)  Commencement of Investment Operations.

^(b)  Based on average shares outstanding.

^(c)  Due to the timing of creations and redemptions of capital shares, the net realized and unrealized gain (loss) per share is not in accord with the Fund’s change in net realized and unrealized gain (loss) on investment securities and in-kind transactions for the period.

^(d)  The mean between the last bid and ask price.

^(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 the 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)  The net asset value total return from Fund Inception (April 7, 2010, the first day of trading on the Exchange) to October 31, 2010 was 2.23%. The market price total return from Fund Inception to October 31, 2010 was 2.23%.

^(g)  Annualized.

^(h)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

⁽ⁱ⁾  Net Investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $3.00 per share owned of Neutral Tandem, Inc. on October 31, 2012. Net investment income per share and the ratio of net investment income to average net excluding the special dividends are $0.97 and 3.17%, respectively.

^(j)  The net asset value total return from Fund Inception (April 7, 2010, the first day of trading on the Exchange) to October 31, 2010 was 9.05%. The market price total return from Fund Inception to October 31, 2010 was 9.01%.

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

34

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust II

April 30, 2014

(Unaudited)

Note 1. Organization

PowerShares Exchange-Traded Fund Trust II (the “Trust”) was organized as a Massachusetts business trust on October 10, 2006 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of April 30, 2014, the Trust offered fifty-seven portfolios. This report includes the following portfolios:

Full Name	Short Name
PowerShares DWA SmallCap Momentum Portfolio (DWAS)	“DWA SmallCap Momentum Portfolio”
PowerShares S&P SmallCap Consumer Discretionary Portfolio (PSCD)	“S&P SmallCap Consumer Discretionary Portfolio”
PowerShares S&P SmallCap Consumer Staples Portfolio (PSCC)	“S&P SmallCap Consumer Staples Portfolio”
PowerShares S&P SmallCap Energy Portfolio (PSCE)	“S&P SmallCap Energy Portfolio”
PowerShares S&P SmallCap Financials Portfolio (PSCF)	“S&P SmallCap Financials Portfolio”
PowerShares S&P SmallCap Health Care Portfolio (PSCH)	“S&P SmallCap Health Care Portfolio”
PowerShares S&P SmallCap Industrials Portfolio (PSCI)	“S&P SmallCap Industrials Portfolio”
PowerShares S&P SmallCap Information Technology Portfolio (PSCT)	“S&P SmallCap Information Technology Portfolio”
PowerShares S&P SmallCap Materials Portfolio (PSCM)	“S&P SmallCap Materials Portfolio”
PowerShares S&P SmallCap Utilities Portfolio (PSCU)	“S&P SmallCap Utilities Portfolio”

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

The market prices of each Fund’s Shares may differ to some degree from the Fund’s net asset value (“NAV”). Unlike conventional mutual funds, each Fund issues and redeems Shares on a continuous basis, at NAV, only in a large specified number of Shares, each called a “Creation Unit.” Creation Units are issued and redeemed 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 SmallCap Momentum Portfolio	Dorsey Wright SmallCap Technical LeadersTM Index
S&P SmallCap Consumer Discretionary Portfolio	S&P SmallCap 600® Capped Consumer Discretionary Index
S&P SmallCap Consumer Staples Portfolio	S&P SmallCap 600® Capped Consumer Staples Index
S&P SmallCap Energy Portfolio	S&P SmallCap 600® Capped Energy Index
S&P SmallCap Financials Portfolio	S&P SmallCap 600® Capped Financials Index
S&P SmallCap Health Care Portfolio	S&P SmallCap 600® Capped Health Care Index
S&P SmallCap Industrials Portfolio	S&P SmallCap 600® Capped Industrials Index
S&P SmallCap Information Technology Portfolio	S&P SmallCap 600® Capped Information Technology Index
S&P SmallCap Materials Portfolio	S&P SmallCap 600® Capped Materials Index
S&P SmallCap Utilities Portfolio	S&P SmallCap 600® Capped Utilities & Telecommunication Services Index

Note 2. Significant Accounting Policies

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

A. Security Valuation

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

35

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 ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. 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/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

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 of each Fund’s 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 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.

36

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 Funds invest. 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 may be concentrated to a significant degree in securities of issuers located in a single industry or a sector. To the extent that an Underlying Index concentrates in the securities of issuers in a particular industry or sector, each Fund will also concentrate its investments to approximately the same extent. By concentrating its investments in an industry or sector, a Fund may face more risks than if it were diversified broadly over numerous industries or sectors. In addition, at times, an industry or sector may be out of favor and underperform other industries or the market as a whole. Any factors detrimental to the performance of such industry or sector will disproportionately impact a Fund’s NAV.

Non-Diversified Fund Risk. Each Fund is non-diversified and can invest a greater portion of its assets in securities of individual issuers than diversified funds. As a result, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund. This may increase a Fund’s volatility and cause the performance of a relatively small number of issuers to have a greater impact on a Fund’s performance.

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

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

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 timing differences are primarily due to differing book and tax treatments for in-kind transactions, losses deferred due to wash sales, and passive foreign investment company adjustments, if any.

The Funds file 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.

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

E. Expenses

Each Fund 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 Funds, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses (including acquired fund fees and expenses, if any).

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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.

F. Dividends and Distributions to Shareholders

Each Fund declares and pays dividends from net investment income, if any, to its shareholders quarterly and records such dividends on ex-dividend date. 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 period-end.

G. Securities Lending

DWA SmallCap Momentum Portfolio, S&P SmallCap Consumer Discretionary Portfolio and S&P SmallCap Consumer Staples Portfolio may lend 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% of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is invested in an affiliated money market fund and is shown as such on the Schedule of Investments. It is the policy of each Fund to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to a Fund if, and to the extent that, the market value of the securities loaned were to increase, and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. A Fund could experience delays and costs in gaining access to the collateral. A Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Securities lending income on the Statements of Operations. The aggregate value of securities out on loan is shown on the Statements of Assets and Liabilities, if any.

Note 3. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with the Adviser pursuant to which the Adviser has overall responsibility for the selection and ongoing monitoring of the Funds’ investments, managing the Funds’ business affairs and providing certain clerical, bookkeeping and other administrative services.

As compensation for its services, each Fund (except for DWA SmallCap Momentum Portfolio) has agreed to pay the Adviser an annual unitary management fee of 0.29% of each Fund’s average daily net assets. DWA SmallCap Momentum Portfolio has agreed to pay the Adviser an annual unitary fee of 0.60% of its average daily net assets. Out of the unitary management fee, the Adviser has agreed to pay substantially all expenses of the Funds, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses (including acquired fund fees and expenses, if any).

Further, through August 31, 2015, the Adviser has contractually agreed to waive a portion of the 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.

For the six-month period ended April 30, 2014, the Adviser waived fees for each Fund, in the following amounts:

DWA SmallCap Momentum Portfolio	$	168
S&P SmallCap Consumer Discretionary Portfolio		64
S&P SmallCap Consumer Staples Portfolio		17
S&P SmallCap Energy Portfolio		7
S&P SmallCap Financials Portfolio		30
S&P SmallCap Health Care Portfolio		47
S&P SmallCap Industrials Portfolio		346
S&P SmallCap Information Technology Portfolio		17
S&P SmallCap Materials Portfolio		3
S&P SmallCap Utilities Portfolio		8

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

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

Fund	Licensor
DWA SmallCap Momentum Portfolio	Dorsey Wright & Associates, Inc.
S&P SmallCap Consumer Discretionary Portfolio	Standard & Poor’s
S&P SmallCap Consumer Staples Portfolio	Standard & Poor’s
S&P SmallCap Energy Portfolio	Standard & Poor’s
S&P SmallCap Financials Portfolio	Standard & Poor’s
S&P SmallCap Health Care Portfolio	Standard & Poor’s
S&P SmallCap Industrials Portfolio	Standard & Poor’s
S&P SmallCap Information Technology Portfolio	Standard & Poor’s
S&P SmallCap Materials Portfolio	Standard & Poor’s
S&P SmallCap Utilities Portfolio	Standard & Poor’s

Each Underlying Index name trademark is owned by the 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 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 the Fund’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

As of April 30, 2014, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedule of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

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 carryforward) 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 carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Funds to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in 8 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 carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

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The following Funds had capital loss carryforwards as of October 31, 2013, which expire as follows:

					Post-effective no expiration
	2018		2019		Short-term		Long-term		Total*		Utilized
DWA SmallCap Momentum Portfolio	$	—	$	—	$	6,208,235	$	—	$	6,208,235	$	—
S&P SmallCap Consumer Discretionary Portfolio		37,390		202,033		40,440		320,284		600,147		—
S&P SmallCap Consumer Staples Portfolio		22,594		27,517		—		7,518		57,629		198,111
S&P SmallCap Energy Portfolio		—		2,406,357		1,041,996		3,020,709		6,469,062		—
S&P SmallCap Financials Portfolio		—		—		—		—		—		27,472
S&P SmallCap Health Care Portfolio		—		—		—		90,854		90,854		446,651
S&P SmallCap Industrials Portfolio		—		74,295		—		—		74,295		272,521
S&P SmallCap Information Technology Portfolio		—		567,102		—		—		567,102		1,839,322
S&P SmallCap Materials Portfolio		—		82,457		13,556		80,587		176,600		—
S&P SmallCap Utilities Portfolio		—		122,619		115,395		495,638		733,652		—

* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required be 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 April 30, 2014, the cost of securities purchased and proceeds from sales of securities, excluding short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, were as follows:

	Purchases		Sales
DWA SmallCap Momentum Portfolio	$	505,140,644	$	505,052,354
S&P SmallCap Consumer Discretionary Portfolio		8,541,616		8,749,978
S&P SmallCap Consumer Staples Portfolio		8,325,882		9,104,669
S&P SmallCap Energy Portfolio		4,741,522		4,603,381
S&P SmallCap Financials Portfolio		6,134,762		7,125,814
S&P SmallCap Health Care Portfolio		13,550,452		12,569,984
S&P SmallCap Industrials Portfolio		5,034,536		6,487,992
S&P SmallCap Information Technology Portfolio		10,311,479		12,496,282
S&P SmallCap Materials Portfolio		2,472,369		2,059,962
S&P SmallCap Utilities Portfolio		4,887,478		4,918,356

For the six-month period ended April 30, 2014, in-kind transactions associated with creations and redemptions were as follows:

	Cost of Securities Received		Value of Securities Delivered
DWA SmallCap Momentum Portfolio	$	192,043,481	$	159,541,527
S&P SmallCap Consumer Discretionary Portfolio		30,889,824		22,957,747
S&P SmallCap Consumer Staples Portfolio		26,891,216		37,915,421
S&P SmallCap Energy Portfolio		14,942,774		9,286,461
S&P SmallCap Financials Portfolio		15,554,450		4,923,164
S&P SmallCap Health Care Portfolio		60,953,000		82,716,256
S&P SmallCap Industrials Portfolio		44,536,056		7,296,860
S&P SmallCap Information Technology Portfolio		46,803,078		24,195,502
S&P SmallCap Materials Portfolio		43,974,979		4,623,348
S&P SmallCap Utilities Portfolio		1,752,835		—

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

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At April 30, 2014, 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:

	Cost		Net Unrealized Appreciation (Depreciation)			Gross Unrealized Appreciation		Gross Unrealized (Depreciation)
DWA SmallCap Momentum Portfolio	$	553,147,835	$	10,100,797		$	43,300,387	$	(33,199,590	)
S&P SmallCap Consumer Discretionary Portfolio		101,252,405		18,084,513			22,318,806		(4,234,293	)
S&P SmallCap Consumer Staples Portfolio		35,918,217		(98,682	)		1,752,966		(1,851,648	)
S&P SmallCap Energy Portfolio		53,290,152		4,203,066			8,279,084		(4,076,018	)
S&P SmallCap Financials Portfolio		86,584,527		20,560,718			23,011,708		(2,450,990	)
S&P SmallCap Health Care Portfolio		156,047,374		7,390,620			21,998,950		(14,608,330	)
S&P SmallCap Industrials Portfolio		99,715,493		13,669,385			15,902,726		(2,233,341	)
S&P SmallCap Information Technology Portfolio		213,134,770		26,688,403			36,534,839		(9,846,436	)
S&P SmallCap Materials Portfolio		56,954,921		2,832,408			4,137,288		(1,304,880	)
S&P SmallCap Utilities Portfolio		28,728,361		6,980,359			7,517,601		(537,242	)

Note 7. Trustees’ and Officer’s Fees

Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to each Trustee who is not an “interested person” as defined in the 1940 Act (an “Independent Trustee”) and Officer of the Funds. The Adviser, as a result of each Fund’s unitary management fee, pays for such compensation. The Trustee who is an “interested person” (the “Non-Independent Trustee”) of the Trust does not receive any Trustees’ fees.

The Trust has adopted a deferred compensation plan (the “Plan”). Under the Plan, an Independent Trustee who has executed a Deferred Fee Agreement (a “Participating Trustee”) may defer receipt of all or a portion of his compensation (“Deferral Fees”). Such Deferral Fees are deemed to be invested in select PowerShares Funds. The Deferral Fees payable to the Participating Trustee are valued as of the date such Deferral Fees would have been paid to the Participating Trustee. The value increases with contributions or with increases in the value of the Shares selected, and the value decreases with distributions or with declines in the value of the Shares selected. Obligations under the deferred compensation 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 generally 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 each Fund’s Participant Agreement, Creation Units will be issued to an Authorized Participant, notwithstanding the fact that the corresponding Deposit Securities have not been received in part or in whole, in reliance on the undertaking of the Authorized Participant to deliver the missing Deposit Securities as soon as possible, which undertaking shall be secured by the Authorized Participant’s delivery and maintenance of collateral consisting of cash in the form of U.S. dollars in immediately available funds having a value (marked-to-market daily) at least equal to 105%, which the Adviser may change from time to time, of the value of the missing Deposit Securities.

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

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

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Fees and Expenses

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

The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended April 30, 2014.

In addition to the fees and expenses which the PowerShares SmallCap Financials 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 you bear indirectly are included in the Portfolio’s total returns.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

	Beginning Account Value November 1, 2013		Ending Account Value April 30, 2014		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period(1)
PowerShares DWA SmallCap Momentum Portfolio (DWAS)
Actual	$	1,000.00	$	979.32		0.60	%	$	2.94
Hypothetical (5% return before expenses)		1,000.00		1,021.82		0.60			3.01
PowerShares S&P SmallCap Consumer Discretionary Portfolio (PSCD)
Actual		1,000.00		1,026.00		0.29			1.46
Hypothetical (5% return before expenses)		1,000.00		1,023.36		0.29			1.45
PowerShares S&P SmallCap Consumer Staples Portfolio (PSCC)
Actual		1,000.00		1,029.93		0.29			1.46
Hypothetical (5% return before expenses)		1,000.00		1,023.36		0.29			1.45
PowerShares S&P SmallCap Energy Portfolio (PSCE)
Actual		1,000.00		1,082.46		0.29			1.50
Hypothetical (5% return before expenses)		1,000.00		1,023.36		0.29			1.45

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Fees and Expenses (continued)

	Beginning Account Value November 1, 2013		Ending Account Value April 30, 2014		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period(1)
PowerShares S&P SmallCap Financials Portfolio (PSCF)
Actual	$	1,000.00	$	1,011.96		0.29	%	$	1.45
Hypothetical (5% return before expenses)		1,000.00		1,023.36		0.29			1.45
PowerShares S&P SmallCap Health Care Portfolio (PSCH)
Actual		1,000.00		1,035.80		0.29			1.46
Hypothetical (5% return before expenses)		1,000.00		1,023.36		0.29			1.45
PowerShares S&P SmallCap Industrials Portfolio (PSCI)
Actual		1,000.00		1,054.81		0.29			1.48
Hypothetical (5% return before expenses)		1,000.00		1,023.36		0.29			1.45
PowerShares S&P SmallCap Information Technology Portfolio (PSCT)
Actual		1,000.00		1,040.77		0.29			1.47
Hypothetical (5% return before expenses)		1,000.00		1,023.36		0.29			1.45
PowerShares S&P SmallCap Materials Portfolio (PSCM)
Actual		1,000.00		1,098.02		0.29			1.51
Hypothetical (5% return before expenses)		1,000.00		1,023.36		0.29			1.45
PowerShares S&P SmallCap Utilities Portfolio (PSCU)
Actual		1,000.00		1,057.42		0.29			1.48
Hypothetical (5% return before expenses)		1,000.00		1,023.36		0.29			1.45

⁽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 April 30, 2014. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 181/365.

43

Board Considerations Regarding Continuation of Investment Advisory

Agreement and Sub-Advisory Agreement

At a meeting held on April 17, 2014, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust II (the “Trust”), including the Independent Trustees, approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the “Adviser”) and the Trust for the following 58 series (each, a “Fund” and collectively, the “Funds”):

PowerShares 1-30 Laddered Treasury Portfolio

PowerShares Aggregate Bond Portfolio

PowerShares Build America Bond Portfolio

PowerShares CEF Income Composite Portfolio

PowerShares Chinese Yuan Dim Sum Bond Portfolio

PowerShares DWA Developed Markets Momentum Portfolio

PowerShares DWA Emerging Markets Momentum Portfolio

PowerShares DWA SmallCap Momentum Portfolio

PowerShares Emerging Markets Infrastructure Portfolio

PowerShares Emerging Markets Sovereign Debt Portfolio

PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio

PowerShares FTSE RAFI Emerging Markets Portfolio

PowerShares Fundamental Emerging Markets Local Debt Portfolio

PowerShares Fundamental High Yield^® Corporate Bond Portfolio

PowerShares Fundamental Investment Grade Corporate Bond Portfolio

PowerShares Global Agriculture Portfolio

PowerShares Global Clean Energy Portfolio

PowerShares Global Gold and Precious Metals Portfolio

PowerShares Global Short Term High Yield Bond Portfolio

PowerShares Global Water Portfolio

PowerShares Insured California Municipal Bond Portfolio

PowerShares Insured National Municipal Bond Portfolio

PowerShares Insured New York Municipal Bond Portfolio

PowerShares International BuyBack Achievers^TM Portfolio*

PowerShares International Corporate Bond Portfolio

PowerShares KBW Bank Portfolio

PowerShares KBW Capital Markets Portfolio

PowerShares KBW High Dividend Yield Financial Portfolio

PowerShares KBW Insurance Portfolio

PowerShares KBW Premium Yield Equity REIT Portfolio

PowerShares KBW Property & Casualty Insurance Portfolio

PowerShares KBW Regional Banking Portfolio

PowerShares NYSE Century Portfolio*

PowerShares Preferred Portfolio

PowerShares S&P 500^® High Beta Portfolio

PowerShares S&P 500^® High Dividend Portfolio

PowerShares S&P 500^® High Momentum Portfolio

PowerShares S&P 500^® Low Volatility Portfolio

PowerShares S&P Emerging Markets High Beta Portfolio

PowerShares S&P Emerging Markets Low Volatility Portfolio

PowerShares S&P International Developed High Beta Portfolio

PowerShares S&P International Developed High Quality Portfolio

PowerShares S&P International Developed Low Volatility Portfolio

PowerShares S&P MidCap Low Volatility Portfolio

PowerShares S&P SmallCap Consumer Discretionary Portfolio

PowerShares S&P SmallCap Consumer Staples Portfolio

PowerShares S&P SmallCap Energy Portfolio

PowerShares S&P SmallCap Financials Portfolio

PowerShares S&P SmallCap Health Care Portfolio

PowerShares S&P SmallCap Industrials Portfolio

PowerShares S&P SmallCap Information Technology Portfolio

PowerShares S&P SmallCap Low Volatility Portfolio

PowerShares S&P SmallCap Materials Portfolio

PowerShares S&P SmallCap Utilities Portfolio

PowerShares Senior Loan Portfolio

PowerShares VRDO Tax-Free Weekly Portfolio

* The Trustees previously approved the initial Investment Advisory Agreement at a meeting held on December 17, 2013.

Also at the April 17, 2014 meeting, the Board of Trustees of the Trust, including the Independent Trustees, approved the continuation of the Investment Sub-Advisory Agreement between the Adviser and the following eight affiliated sub-advisers for PowerShares Senior Loan Portfolio (the “Sub-Advisory Agreement”): Invesco Advisers, Inc.; Invesco Asset Management Deutschland, GmbH; Invesco Asset Management Limited; Invesco Asset Management (Japan) Limited; Invesco Australia Limited; Invesco Hong Kong Limited; Invesco Senior Secured Management, Inc.; and Invesco Canada Ltd. (each, a “Sub-Adviser” and collectively, the “Sub-Advisers”).

The Trustees reviewed information from the Adviser describing: (i) the nature, extent and quality of services provided, (ii) the investment performance of the Funds and the Adviser, (iii) the costs of services provided and estimated profits realized by the Adviser, (iv) the extent to which economies of scale are realized as a Fund grows, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered to and amounts paid by other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with each Fund. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board’s analysis.

44

Board Considerations Regarding Continuation of Investment Advisory

Agreement and Sub-Advisory Agreement (continued)

Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser’s services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser’s current organization and staffing, including operational support provided by the Adviser’s parent organization, Invesco Ltd., and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser’s execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds (other than PowerShares Aggregate Bond Portfolio and PowerShares S&P 500^® High Momentum Portfolio, which Funds had not commenced operations as of April 17, 2014), their underlying indexes and their primary benchmarks for the one-year, three-year, five-year and since-inception periods ended December 31, 2013, as applicable, including reports for each of those periods on the correlation and tracking error between each Fund’s performance and the performance of its underlying index, as well as the Adviser’s analysis of the tracking error between each Fund and its underlying index. In reviewing the tracking error report, the Trustees considered information provided by Ibbotson Associates, a consultant to the Independent Trustees, with respect to general expected tracking error ranges and various explanations for any tracking error. The Trustees noted that for each applicable period, the correlation for each Fund, other than the five-year period for PowerShares Fundamental High Yield Corporate Bond Portfolio, the since-inception period for PowerShares Global Short Term High Yield Bond Portfolio, the one- and three-year periods for PowerShares Insured New York Municipal Bond Portfolio and the one-, three- and five-year periods for PowerShares VRDO Tax-Free Weekly Portfolio, was within the targeted range set forth in the Trust’s registration statement. The Trustees reviewed the reasons provided by the Adviser for PowerShares Global Short Term High Yield Bond Portfolio’s, PowerShares Insured New York Municipal Bond Portfolio’s, PowerShares Fundamental High Yield Corporate Bond Portfolio’s and PowerShares VRDO Tax-Free Weekly Portfolio’s level of correlation to its underlying index, as well as the Adviser’s expectations for such Fund’s correlation going forward. The Trustees noted that for each applicable period, the tracking error for each Fund was within the targeted range set forth in the Trust’s registration statement and concluded that each Fund’s correlation to its underlying index and the tracking error for each Fund were within an acceptable range given that Fund’s particular circumstances.

The Trustees also considered the services provided by the Adviser in its oversight of the Funds’ administrator, custodian and transfer agent. They noted the significant amount of time, effort and resources that had been devoted to this oversight function.

Based on their review, the Trustees concluded that the nature, extent and quality of services provided by the Adviser to the Funds under the Investment Advisory Agreement were appropriate and reasonable.

Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser on each Fund’s net expense ratio and unitary advisory fee, as compared to information compiled by the Adviser from Lipper Inc. databases on the net expense ratios of comparable exchange-traded funds (“ETFs”), open-end (non-ETF) index funds and open-end actively-managed funds. The Trustees noted that the annual advisory fee charged to each Fund, as set forth below, is a unitary fee and that the Adviser pays all other operating expenses of each Fund, including the fees payable to the Sub-Advisers for PowerShares Senior Loan Portfolio, except that each Fund pays its brokerage expenses, taxes, interest (including for PowerShares Senior Loan Portfolio, interest expenses associated with its line of credit), litigation expenses and other extraordinary expenses.

— 0.22%: PowerShares Fundamental Investment Grade Corporate Bond Portfolio

— 0.25%: PowerShares 1-30 Laddered Treasury Portfolio, PowerShares Aggregate Bond Portfolio, PowerShares S&P 500^® High Beta Portfolio, PowerShares S&P 500^® High Momentum Portfolio, PowerShares S&P 500^® Low Volatility Portfolio, PowerShares S&P MidCap Low Volatility Portfolio, PowerShares S&P SmallCap Low Volatility Portfolio, PowerShares VRDO Tax-Free Weekly Portfolio

— 0.28%: PowerShares Build America Bond Portfolio, PowerShares Insured California Municipal Bond Portfolio, PowerShares Insured National Municipal Bond Portfolio, PowerShares Insured New York Municipal Bond Portfolio

— 0.29%: PowerShares S&P SmallCap Consumer Discretionary, PowerShares S&P SmallCap Consumer Staples Portfolio, PowerShares S&P SmallCap Energy Portfolio, PowerShares S&P SmallCap Financials Portfolio, PowerShares S&P SmallCap Health Care Portfolio, PowerShares S&P SmallCap Industrials Portfolio, PowerShares S&P SmallCap Information Technology Portfolio, PowerShares S&P SmallCap Materials Portfolio, PowerShares S&P SmallCap Utilities Portfolio

— 0.30%: PowerShares S&P 500^® High Dividend Portfolio

— 0.35%: PowerShares Global Short Term High Yield Bond Portfolio, PowerShares KBW Bank Portfolio, PowerShares KBW Capital Markets Portfolio, PowerShares KBW High Dividend Yield Financial Portfolio, PowerShares KBW Insurance Portfolio, PowerShares KBW Premium Yield Equity REIT Portfolio, PowerShares KBW Property & Casualty Insurance Portfolio, PowerShares KBW Regional Banking Portfolio, PowerShares S&P International Developed High Beta Portfolio, PowerShares S&P International Developed Low Volatility Portfolio

45

Board Considerations Regarding Continuation of Investment Advisory

Agreement and Sub-Advisory Agreement (continued)

— 0.45%: PowerShares Chinese Yuan Dim Sum Bond Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio, PowerShares S&P Emerging Markets High Beta Portfolio, PowerShares S&P Emerging Markets Low Volatility Portfolio, PowerShares S&P International Developed High Quality Portfolio

— 0.49%: PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio, PowerShares FTSE RAFI Emerging Markets Portfolio

— 0.50%: PowerShares CEF Income Composite Portfolio, PowerShares Emerging Markets Sovereign Debt Portfolio, PowerShares Fundamental Emerging Markets Local Debt Portfolio, PowerShares Fundamental High Yield^® Corporate Bond Portfolio, PowerShares International Corporate Bond Portfolio, PowerShares NYSE Century Portfolio, PowerShares Preferred Portfolio

— 0.55% PowerShares International BuyBack Achievers^TM Portfolio

— 0.60%: PowerShares DWA SmallCap Momentum Portfolio

— 0.65%: PowerShares Senior Loan Portfolio

— 0.75%: PowerShares Emerging Markets Infrastructure Portfolio, PowerShares Global Agriculture Portfolio, PowerShares Global Clean Energy Portfolio, PowerShares Global Gold and Precious Metals Portfolio, PowerShares Global Water Portfolio

— 0.80%: PowerShares DWA Developed Markets Momentum Portfolio

— 0.90%: PowerShares DWA Emerging Markets Momentum Portfolio

The Trustees noted that the Adviser represented that it does not serve as the investment adviser to any clients, other than other ETFs also overseen by the Trustees, with comparable investment strategies as the Funds, but that the Adviser provides sub-advisory services to clients with comparable investment strategies as certain of the Funds. The Trustees further noted the Adviser’s explanation with respect to the sub-advisory fees it receives for such services in comparison to the advisory fees charged to the Funds. The Trustees noted that each Fund’s advisory fee was:

— equal to or lower than the median net expense ratio of its ETF peer funds (except for the advisory fee of each of PowerShares 1-30 Laddered Treasury Portfolio, PowerShares Aggregate Bond Portfolio, PowerShares CEF Income Composite Portfolio, PowerShares DWA Emerging Markets Momentum Portfolio, PowerShares DWA SmallCap Momentum Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio, PowerShares Fundamental High Yield^® Corporate Bond Portfolio, PowerShares Fundamental Investment Grade Corporate Bond Portfolio PowerShares Global Agriculture Portfolio, PowerShares Global Clean Energy Portfolio, PowerShares Global Gold and Precious Metals Portfolio, PowerShares Global Water Portfolio, PowerShares Insured California Municipal Bond Portfolio, PowerShares Insured National Municipal Bond Portfolio, PowerShares Insured New York Municipal Bond Portfolio, PowerShares International BuyBack Achievers^TM Portfolio, PowerShares International Corporate Bond Portfolio, PowerShares NYSE Century Portfolio, PowerShares S&P International Developed Low Volatility Portfolio, PowerShares S&P International Developed High Beta Portfolio, PowerShares S&P International Developed High Quality Portfolio, PowerShares Senior Loan Portfolio and PowerShares VRDO Tax-Free Weekly Portfolio, which were higher than the median net expense ratio of its ETF peer funds); and

— equal to or lower than the median net expense ratio of its open-end index peer funds (except for the advisory fee of each of PowerShares 1-30 Laddered Treasury Portfolio, PowerShares Aggregate Bond Portfolio, PowerShares DWA Emerging Markets Momentum Portfolio, PowerShares DWA SmallCap Momentum Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio, PowerShares Fundamental Investment Grade Corporate Bond Portfolio, PowerShares KBW Premium Yield Equity REIT Portfolio and PowerShares S&P International Developed Low Volatility Portfolio, which was higher than the median net expense ratio of its open-end index peer funds; and there was no comparable data for PowerShares Build America Bond Portfolio, PowerShares Chinese Yuan Dim Sum Bond Portfolio, PowerShares DWA Developed Markets Momentum Portfolio, PowerShares Emerging Markets Infrastructure Portfolio, PowerShares Emerging Markets Sovereign Debt Portfolio, PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio, PowerShares Fundamental Emerging Markets Local Debt Portfolio, PowerShares Fundamental High Yield^® Corporate Bond Portfolio, PowerShares Global Agriculture Portfolio, PowerShares Global Clean Energy Portfolio, PowerShares Global Gold and Precious Metals Portfolio, PowerShares Global Short Term High Yield Bond Portfolio, PowerShares Global Water Portfolio, PowerShares Insured California Municipal Bond Portfolio, PowerShares Insured National Municipal Bond Portfolio, PowerShares Insured New York Municipal Bond Portfolio, PowerShares International Corporate Bond Portfolio, PowerShares KBW Bank Portfolio, PowerShares KBW Capital Markets Portfolio, PowerShares KBW High Dividend Yield Financial Portfolio, PowerShares KBW Insurance Portfolio, PowerShares KBW Property & Casualty Insurance Portfolio, PowerShares KBW Regional Banking Portfolio, PowerShares Preferred Portfolio, PowerShares S&P SmallCap Consumer Discretionary Portfolio, PowerShares S&P SmallCap Consumer Staples Portfolio, PowerShares S&P SmallCap Energy Portfolio, PowerShares S&P

46

Board Considerations Regarding Continuation of Investment Advisory

Agreement and Sub-Advisory Agreement (continued)

SmallCap Financials Portfolio, PowerShares S&P SmallCap Health Care Portfolio, PowerShares S&P SmallCap Industrials Portfolio, PowerShares S&P SmallCap Materials Portfolio, PowerShares Senior Loan Portfolio or PowerShares VRDO Tax-Free Weekly Portfolio); but

— lower than the median expense ratio of its open-end actively-managed peer funds.

The Trustees also considered that, during the period, certain Funds incurred other expenses excluded from those Funds’ unitary advisory fees, such that those Funds’ net expense ratios were in excess of the Funds’ unitary advisory fees. The Trustees noted the Adviser’s belief that such expenses were not expected to be incurred at that level going forward. The Trustees considered that the Adviser had agreed to waive a portion of its advisory fee, at least until February 28, 2016, for PowerShares S&P Emerging Markets High Beta Portfolio, PowerShares S&P Emerging Markets Low Volatility Portfolio, PowerShares S&P International Developed High Beta Portfolio and PowerShares S&P International Developed Low Volatility Portfolio. The Trustees determined that each Fund’s advisory fee was reasonable because of the complexity of the indexes, the distinguishing factors of the Funds and the administrative, operational and management oversight costs for the Adviser. The Trustees also noted that a portion of each Fund’s advisory fee was attributable to a license fee payable out of the unitary fee charged to that Fund. The Board concluded that the unitary advisory fee charged to each Fund was reasonable and appropriate in light of the services provided.

In conjunction with their review of the unitary advisory fee, the Trustees also considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement. The Trustees reviewed information provided by the Adviser on its profitability, as well as any profits or losses realized by the Adviser from its relationship to each Fund. The Trustees concluded that the estimated profitability to the Adviser of the advisory services provided to any of the Funds was not unreasonable.

Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. The Trustees reviewed the information provided by the Adviser as to the extent to which economies of scale are realized as each Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees reviewed each Fund’s asset size and expense ratio. The Trustees noted that any reduction in fixed costs associated with the management of the Funds would be enjoyed by the Adviser, but a unitary fee provides a level of certainty in expenses for the Funds. The Trustees considered whether the advisory fee rate for each Fund was reasonable in relation to the asset size of that Fund, and concluded that the flat advisory fee was reasonable and appropriate.

The Trustees noted that the Adviser had not identified any further benefits that it derived from its relationship with the Funds and had noted that it does not have any soft-dollar arrangements.

Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund.

Investment Sub-Advisory Agreement

As noted above, the Board of Trustees of the Trust, including the Independent Trustees, approved the continuation of the Sub-Advisory Agreement for the PowerShares Senior Loan Portfolio at a meeting held on April 17, 2014. The review process followed by the Board is described in detail above. In connection with the review of the Sub-Advisory Agreement, the Board considered the factors described below, among others.

Nature, Extent and Quality of Services. The Trustees considered the nature, extent and quality of services provided under the Sub-Advisory Agreement. The Board also considered the benefits described by the Adviser in having multiple affiliated Sub-Advisers. The Board reviewed the qualifications and background of each Sub-Adviser, the investment approach of the Sub-Adviser whose investment personnel manage the PowerShares Senior Loan Portfolio’s assets, the experience and skills of the investment personnel responsible for the day-to-day management of the Fund, and the resources made available to such personnel.

Based on their review, the Trustees concluded that the nature, extent and quality of services provided by the Sub-Advisers to PowerShares Senior Loan Portfolio under the Sub-Advisory Agreement were appropriate and reasonable.

Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser and the Sub-Advisers on the sub-advisory fee rate under the Sub-Advisory Agreement. The Trustees noted that the sub-advisory fee charged by the Sub-Advisers under the Sub-Advisory Agreement is consistent with the compensation structure used throughout Invesco when Invesco’s affiliates provide sub-advisory services for funds managed by other Invesco affiliates. The Board considered how the sub-advisory fees relate to the overall advisory fee for the PowerShares Senior Loan Portfolio and noted that the Adviser compensates the Sub-Advisers from its fee. The Trustees also considered information provided by Invesco Senior Secured Management, Inc. on the revenues it

47

Board Considerations Regarding Continuation of Investment Advisory

Agreement and Sub-Advisory Agreement (continued)

receives under the Sub-Advisory Agreement. The Trustees concluded that the sub-advisory fees were reasonable in light of the sub-advisory services provided to the PowerShares Senior Loan Portfolio.

Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. As part of their review of the Investment Advisory Agreement for the PowerShares Senior Loan Portfolio, the Trustees considered the extent to which economies of scale are realized as the PowerShares Senior Loan Portfolio grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees considered whether the sub-advisory fee rate for PowerShares Senior Loan Portfolio was reasonable in relation to the asset size of the Fund, and concluded that the flat sub-advisory fee was reasonable and appropriate.

The Trustees noted that the Sub-Advisers had not identified any further benefits that they derived from their relationships with the PowerShares Senior Loan Portfolio.

Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Sub-Advisory Agreement for the PowerShares Senior Loan Portfolio. No single factor was determinative in the Board’s analysis.

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 (the “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 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 Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Form N-Qs will be available on the Commission’s website at www.sec.gov. The Trust’s Form N-Qs may also be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. 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.

©2014 Invesco PowerShares Capital Management LLC			P-SCS-SAR-1
3500 Lacey Road, Suite 700 Downers Grove, IL 60515
invescopowershares.com    800.983.0903		@PowerShares

April 30, 2014

2014 Semi-Annual Report to Shareholders

KBWB	PowerShares KBW Bank Portfolio
KBWC	PowerShares KBW Capital Markets Portfolio
KBWD	PowerShares KBW High Dividend Yield Financial Portfolio
KBWI	PowerShares KBW Insurance Portfolio
KBWY	PowerShares KBW Premium Yield Equity REIT Portfolio
KBWP	PowerShares KBW Property & Casualty Insurance Portfolio
KBWR	PowerShares KBW Regional Banking Portfolio
NYCC	PowerShares NYSE Century Portfolio

Table of Contents

KBW Portfolios
Schedules of Investments
PowerShares KBW Bank Portfolio (KBWB)	3
PowerShares KBW Capital Markets Portfolio (KBWC)	4
PowerShares KBW High Dividend Yield Financial Portfolio (KBWD)	5
PowerShares KBW Insurance Portfolio (KBWI)	7
PowerShares KBW Premium Yield Equity REIT Portfolio (KBWY)	8
PowerShares KBW Property & Casualty Insurance Portfolio (KBWP)	10
PowerShares KBW Regional Banking Portfolio (KBWR)	11
PowerShares NYSE Century Portfolio (NYCC)	12
Statements of Assets and Liabilities	18
Statements of Operations	20
Statements of Changes in Net Assets	22
Financial Highlights	25
Notes to Financial Statements	29
Fees and Expenses	37
Board Considerations Regarding Continuation of Investment Advisory Agreement and Sub-Advisory Agreement	39

2

Portfolio Composition

PowerShares KBW Bank Portfolio (KBWB)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Diversified Banks	43.1
Regional Banks	41.9
Asset Management & Custody Banks	7.4
Consumer Finance	3.9
Thrifts & Mortgage Finance	3.7
Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares KBW Bank Portfolio (KBWB)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Asset Management & Custody Banks—7.4%
	158,668	Bank of New York Mellon Corp. (The)	$	5,374,085
	46,757	Northern Trust Corp.		2,817,109
	64,740	State Street Corp.		4,179,615
				12,370,809
		Consumer Finance—3.9%
	88,069	Capital One Financial Corp.		6,508,299
		Diversified Banks—43.1%
	879,147	Bank of America Corp.		13,310,286
	278,490	Citigroup, Inc.		13,342,456
	151,886	Comerica, Inc.		7,326,981
	238,927	JPMorgan Chase & Co.		13,375,133
	263,796	U.S. Bancorp		10,757,601
	280,136	Wells Fargo & Co.		13,905,951
				72,018,408
		Regional Banks—41.9%
	168,533	BB&T Corp.		6,291,337
	71,216	Commerce Bancshares, Inc.		3,096,472
	44,291	Cullen/Frost Bankers, Inc.		3,384,275
	330,078	Fifth Third Bancorp		6,802,908
	170,074	First Niagara Financial Group, Inc.		1,517,060
	713,388	Huntington Bancshares, Inc.		6,534,634
	505,805	KeyCorp		6,899,180
	60,015	M&T Bank Corp.		7,322,430
	81,492	PNC Financial Services Group, Inc. (The)		6,848,588
	669,918	Regions Financial Corp.		6,792,968
	212,927	SunTrust Banks, Inc.		8,146,587
	218,477	Zions Bancorp.		6,318,355
				69,954,794

Number of Shares			Value
		Common Stocks (continued)
		Thrifts & Mortgage Finance—3.7%
	272,221	New York Community Bancorp, Inc.	$	4,194,925
	136,985	People’s United Financial, Inc.		1,956,146
				6,151,071
		Total Investments (Cost $164,867,614)—100.0%		167,003,381
		Other assets less liabilities—0.0%		23,622
		Net Assets—100.0%	$	167,027,003

Notes to Schedule of Investments:

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

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

3

Portfolio Composition

PowerShares KBW Capital Markets Portfolio (KBWC)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Investment Banking & Brokerage	42.5
Asset Management & Custody Banks	40.9
Specialized Finance	16.6
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares KBW Capital Markets Portfolio (KBWC)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Asset Management & Custody Banks—40.9%
	2,571	BlackRock, Inc.	$	773,871
	7,156	Eaton Vance Corp.		258,117
	7,434	Franklin Resources, Inc.		389,170
	10,788	Invesco Ltd.(b)		379,845
	26,502	Janus Capital Group, Inc.		321,469
	6,620	Legg Mason, Inc.		310,412
	12,105	SEI Investments Co.		391,960
	10,905	State Street Corp.		704,027
	4,435	T. Rowe Price Group, Inc.		364,247
				3,893,118
		Investment Banking & Brokerage—42.5%
	29,394	Charles Schwab Corp. (The)		780,411
	4,263	Goldman Sachs Group, Inc. (The)		681,313
	2,226	Greenhill & Co., Inc.		111,634
	9,204	Investment Technology Group, Inc.(c)		189,971
	12,349	KCG Holdings, Inc., Class A(c)		122,872
	9,577	Lazard Ltd., Class A		450,598
	28,966	Morgan Stanley		895,918
	2,269	Piper Jaffray Cos.(c)		99,518
	6,642	Raymond James Financial, Inc.		330,107
	11,933	TD Ameritrade Holding Corp.		380,663
				4,043,005
		Specialized Finance—16.6%
	6,984	CBOE Holdings, Inc.		372,666
	4,435	CME Group, Inc.		312,180
	9,247	Interactive Brokers Group, Inc., Class A		221,004
	1,864	IntercontinentalExchange Group, Inc.		381,076
	7,777	NASDAQ OMX Group, Inc. (The)		286,971
				1,573,897
		Total Common Stocks (Cost $8,967,237)		9,510,020

Number of Shares			Value
		Money Market Fund—0.0%
	2,943	Invesco Premier Portfolio—Institutional Class(d) (Cost $2,943)	$	2,943
		Total Investments (Cost $8,970,180)—100.0%		9,512,963
		Other assets less liabilities—0.0%		3,153
		Net Assets—100.0%	$	9,516,116

Notes to Schedule of Investments:

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

^(b)  Affiliated company. The Fund’s Adviser is a wholly-owned subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated. See Note 4.

^(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.

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

4

Portfolio Composition

PowerShares KBW High Dividend Yield Financial Portfolio (KBWD)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Mortgage REITs	38.8
Asset Management & Custody Banks	27.0
Thrifts & Mortgage Finance	8.4
Regional Banks	8.1
Investment Banking & Brokerage	5.2
Property & Casualty Insurance	4.1
Hotel & Resort REITs	2.8
Trading Companies & Distributors	2.3
Residential REITs	2.2
Insurance Brokers	1.1
Money Market Fund Plus Other Assets Less Liabilities	(0.0	)

Schedule of Investments^(a)

PowerShares KBW High Dividend Yield Financial Portfolio (KBWD)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Asset Management & Custody Banks—27.0%
	1,106,271	Apollo Investment Corp.	$	8,839,105
	491,676	Ares Capital Corp.		8,442,077
	213,060	Blackstone Group LP (The)		6,291,662
	122,919	Federated Investors, Inc., Class B		3,508,108
	516,260	Hercules Technology Growth Capital, Inc.		7,062,437
	811,265	Medley Capital Corp.		10,578,896
	893,211	PennantPark Investment Corp.		9,557,358
	680,152	THL Credit, Inc.		9,134,441
	81,946	Triangle Capital Corp.		2,136,332
				65,550,416
		Hotel & Resort REITs—2.8%
	229,449	Hospitality Properties Trust REIT		6,894,942
		Insurance Brokers—1.1%
	57,362	Arthur J. Gallagher & Co.		2,582,437
		Investment Banking & Brokerage—5.2%
	1,065,298	BGC Partners, Inc., Class A		7,638,187
	1,343,914	GFI Group, Inc.		4,999,360
				12,637,547
		Mortgage REITs—38.8%
	508,065	American Capital Agency Corp. REIT		11,538,156
	925,990	Annaly Capital Management, Inc. REIT		10,695,185
	1,163,633	Anworth Mortgage Asset Corp. REIT		6,283,618
	794,876	Capstead Mortgage Corp. REIT		10,158,515

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Mortgage REITs (continued)
	278,616	Colony Financial, Inc. REIT	$	6,059,898
	516,260	Hatteras Financial Corp. REIT		10,103,208
	680,152	Invesco Mortgage Capital, Inc. REIT(b)		11,338,134
	1,286,552	MFA Financial, Inc. REIT		10,202,358
	409,730	PennyMac Mortgage Investment Trust REIT		9,604,071
	335,979	Starwood Property Trust, Inc. REIT		8,080,295
				94,063,438
		Property & Casualty Insurance—4.1%
	114,724	Mercury General Corp.		5,490,690
	81,946	Safety Insurance Group, Inc.		4,401,320
				9,892,010
		Regional Banks—8.1%
	49,168	Bank of Hawaii Corp.		2,712,599
	65,557	City Holding Co.		2,818,295
	278,616	F.N.B. Corp.		3,465,983
	49,168	Park National Corp.		3,565,663
	147,503	Trustmark Corp.		3,373,394
	131,114	United Bankshares, Inc.		3,835,085
				19,771,019
		Residential REITs—2.2%
	114,724	Sun Communities, Inc. REIT		5,227,973
		Thrifts & Mortgage Finance—8.4%
	180,281	Dime Community Bancshares, Inc.		2,938,580

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

5

PowerShares KBW High Dividend Yield Financial Portfolio (KBWD) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Thrifts & Mortgage Finance (continued)
	376,952	New York Community Bancorp, Inc.	$	5,808,831
	245,838	Northwest Bancshares, Inc.		3,267,187
	270,422	Oritani Financial Corp.		4,010,358
	311,395	People’s United Financial, Inc.		4,446,721
				20,471,677
		Trading Companies & Distributors—2.3%
	139,308	Textainer Group Holdings Ltd.		5,474,804
		Total Common Stocks and Other Equity Interests (Cost $241,246,444)		242,566,263
		Money Market Fund—0.7%
	1,738,984	Invesco Premier Portfolio—Institutional Class(c) (Cost $1,738,984)		1,738,984
		Total Investments (Cost $242,985,428)—100.7%		244,305,247
		Other assets less liabilities—(0.7)%		(1,740,896	)
		Net Assets—100.0%	$	242,564,351

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 and Invesco Mortgage Capital, Inc. REIT are subsidiaries of Invesco Ltd. and therefore, are considered to be affiliated. See Note 4.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

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

6

Portfolio Composition

PowerShares KBW Insurance Portfolio (KBWI)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Property & Casualty Insurance	35.1
Life & Health Insurance	32.1
Insurance Brokers	11.9
Multi-line Insurance	10.2
Asset Management & Custody Banks	4.3
Thrifts & Mortgage Finance	3.9
Reinsurance	2.5
Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares KBW Insurance Portfolio (KBWI)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Asset Management & Custody Banks—4.3%
	3,769	Ameriprise Financial, Inc.	$	420,734
		Insurance Brokers—11.9%
	4,569	Aon PLC		387,817
	15,557	Marsh & McLennan Cos., Inc.		767,115
				1,154,932
		Life & Health Insurance—32.1%
	11,962	Aflac, Inc.		750,257
	7,844	Lincoln National Corp.		380,512
	13,243	MetLife, Inc.		693,271
	8,717	Principal Financial Group, Inc.		408,304
	7,029	Prudential Financial, Inc.		567,100
	9,459	Unum Group		314,228
				3,113,672
		Multi-line Insurance—10.2%
	3,725	Assurant, Inc.		251,102
	21,319	Genworth Financial, Inc., Class A(b)		380,544
	9,939	Hartford Financial Services Group, Inc. (The)		356,512
				988,158
		Property & Casualty Insurance—35.1%
	6,796	Allstate Corp. (The)		387,032
	902	Arch Capital Group Ltd.(b)		51,703
	6,025	Axis Capital Holdings Ltd.		275,644
	4,453	Chubb Corp. (The)		410,032
	5,748	Cincinnati Financial Corp.		280,157
	12,020	Fidelity National Financial, Inc., Class A		386,804
	16,692	MBIA, Inc.(b)		202,307
	9,765	Progressive Corp. (The)		236,801
	9,284	Travelers Cos., Inc. (The)		840,945

Number of Shares			Value
		Common Stocks (continued)
		Property & Casualty Insurance (continued)
	10,696	XL Group PLC (Ireland)	$	335,320
				3,406,745
		Reinsurance—2.5%
	1,543	Everest Re Group Ltd.		243,840
		Thrifts & Mortgage Finance—3.9%
	44,603	MGIC Investment Corp.(b)		383,586
		Total Investments (Cost $8,904,881)—100.0%		9,711,667
		Other assets less liabilities—0.0%		2,272
		Net Assets—100.0%	$	9,713,939

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.

7

Portfolio Composition

PowerShares KBW Premium Yield Equity REIT Portfolio (KBWY)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Retail	25.6
Health Care	23.7
Diversified	21.1
Office	16.2
Hotel & Resort	7.5
Residential	3.5
Industrial	1.1
Specialized	1.3
Money Market Fund Plus Other Assets Less Liabilities	(0.0	)

Schedule of Investments^(a)

PowerShares KBW Premium Yield Equity REIT Portfolio (KBWY)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Real Estate Investment Trusts—100.0%
		Diversified—21.1%
	190,969	First Potomac Realty Trust	$	2,488,326
	261,373	Lexington Realty Trust		2,812,373
	70,403	Liberty Property Trust		2,640,113
	143,447	One Liberty Properties, Inc.		3,174,482
	107,365	Washington Real Estate Investment Trust		2,626,148
	246,412	Winthrop Realty Trust		3,425,127
				17,166,569
		Health Care—23.7%
	45,762	Health Care REIT, Inc.		2,887,125
	105,605	Healthcare Realty Trust, Inc.		2,655,966
	266,653	Medical Properties Trust, Inc.		3,599,815
	90,644	OMEGA Healthcare Investors, Inc.		3,152,598
	15,841	Sabra Health Care REIT, Inc.		474,755
	158,408	Senior Housing Properties Trust		3,717,836
	67,763	Universal Health Realty Income Trust		2,875,184
				19,363,279
		Hotel & Resort—7.5%
	121,446	Hospitality Properties Trust		3,649,452
	274,573	Summit Hotel Properties, Inc.		2,487,632
				6,137,084
		Industrial—1.1%
	38,722	STAG Industrial, Inc.		911,128
		Office—16.2%
	144,327	Brandywine Realty Trust		2,099,958
	84,484	Corporate Office Properties Trust		2,259,947
	143,447	Government Properties Income Trust		3,650,726
	60,723	Highwoods Properties, Inc.		2,450,173
	132,887	Mack-Cali Realty Corp.		2,706,908
				13,167,712

Number of Shares			Value
		Real Estate Investment Trusts (continued)
		Residential—3.5%
	63,363	Sun Communities, Inc.	$	2,887,452
		Retail—25.6%
	93,285	Agree Realty Corp.		2,786,423
	163,688	CBL & Associates Properties, Inc.		2,974,211
	219,131	Excel Trust, Inc.		2,765,433
	92,405	Inland Real Estate Corp.		965,632
	336,177	Kite Realty Group Trust		2,084,298
	68,643	National Retail Properties, Inc.		2,342,786
	125,846	Pennsylvania Real Estate Investment Trust		2,082,751
	140,807	Ramco-Gershenson Properties Trust		2,320,499
	124,086	Urstadt Biddle Properties, Inc., Class A		2,532,595
				20,854,628
		Specialized—1.3%
	19,361	EPR Properties		1,037,943
		Total Real Estate Investment Trusts Common Stocks and Other Equity Interests (Cost $84,038,861)		81,525,795
		Money Market Fund—0.2%
	167,443	Invesco Premier Portfolio—Institutional Class(b) (Cost $167,443)		167,443
		Total Investments (Cost $84,206,304)—100.2%		81,693,238
		Other assets less liabilities—(0.2)%		(168,398	)
		Net Assets—100.0%	$	81,524,840

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

8

PowerShares KBW Premium Yield Equity REIT Portfolio (KBWY) (continued)

April 30, 2014

(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)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

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

9

Portfolio Composition

PowerShares KBW Property & Casualty Insurance Portfolio (KBWP)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Property & Casualty Insurance	65.8
Reinsurance	22.4
Multi-line Insurance	11.8
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares KBW Property & Casualty Insurance Portfolio (KBWP)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Multi-line Insurance—11.8%
	8,165	American Financial Group, Inc.	$	477,081
	7,993	HCC Insurance Holdings, Inc.		367,198
	7,366	Kemper Corp.		290,294
				1,134,573
		Property & Casualty Insurance—65.8%
	3,540	Allied World Assurance Co. Holdings AG		381,223
	15,187	Allstate Corp. (The)		864,900
	8,507	Arch Capital Group Ltd.(b)		487,621
	8,736	Aspen Insurance Holdings Ltd.		399,934
	9,535	Axis Capital Holdings Ltd.		436,226
	7,651	Chubb Corp. (The)		704,504
	5,652	Hanover Insurance Group, Inc. (The)		330,359
	4,567	Mercury General Corp.		218,577
	7,936	ProAssurance Corp.		360,453
	28,034	Progressive Corp. (The)		679,825
	1,656	RLI Corp.		71,307
	10,049	Selective Insurance Group, Inc.		230,524
	8,279	Travelers Cos., Inc. (The)		749,912
	8,964	W.R. Berkley Corp.		396,567
				6,311,932
		Reinsurance—22.4%
	7,708	Endurance Specialty Holdings Ltd.		391,721
	2,512	Everest Re Group Ltd.		396,971
	8,507	Montpelier Re Holdings Ltd. (Bermuda)		260,144
	2,855	PartnerRe Ltd.		300,917
	4,339	Platinum Underwriters Holdings Ltd.		272,099
	2,797	RenaissanceRe Holdings Ltd.		283,084
	6,509	Validus Holdings Ltd.		241,289
				2,146,225
		Total Common Stocks (Cost $8,836,631)		9,592,730

Number of Shares			Value
		Money Market Fund—0.0%
	3,515	Invesco Premier Portfolio—Institutional Class(c) (Cost $3,515)	$	3,515
		Total Investments (Cost $8,840,146)—100.0%		9,596,245
		Other assets less liabilities—(0.0)%		(3,385	)
		Net Assets—100.0%	$	9,592,860

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.

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

10

Portfolio Composition

PowerShares KBW Regional Banking Portfolio (KBWR)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Regional Banks	94.9
Thrifts & Mortgage Finance	5.1
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares KBW Regional Banking Portfolio (KBWR)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Regional Banks—94.9%
	46,710	Associated Banc-Corp.	$	819,761
	48,209	BancorpSouth, Inc.		1,126,162
	10,991	Bank of Hawaii Corp.		606,373
	7,494	BOK Financial Corp.		490,258
	60,199	Boston Private Financial Holdings, Inc.		753,090
	33,971	Cathay General Bancorp		801,716
	13,489	City Holding Co.		579,892
	9,992	City National Corp.		725,119
	36,969	Columbia Banking System, Inc.		917,571
	18,734	Community Bank System, Inc.		696,717
	51,956	CVB Financial Corp.		751,284
	22,481	East West Bancorp, Inc.		775,819
	77,684	F.N.B. Corp.		966,389
	66,194	First Commonwealth Financial Corp.		568,606
	36,719	First Financial Bancorp		594,481
	14,738	First Financial Bankshares, Inc.		870,279
	72,439	First Horizon National Corp.		832,324
	53,705	First Midwest Bancorp, Inc.		879,151
	26,478	First Republic Bank		1,344,023
	50,957	FirstMerit Corp.		988,056
	46,710	Fulton Financial Corp.		569,395
	31,224	Glacier Bancorp, Inc.		801,208
	15,737	Hancock Holding Co.		530,809
	6,495	IBERIABANK Corp.		408,536
	29,975	MB Financial, Inc.		804,529
	63,197	National Penn Bancshares, Inc.		617,435
	62,264	Old National Bancorp		879,168
	50,928	PacWest Bancorp		2,005,035
	6,495	Park National Corp.		471,017
	22,481	Pinnacle Financial Partners, Inc.		777,168
	28,226	PrivateBancorp, Inc.		778,191
	14,488	Prosperity Bancshares, Inc.		854,792
	20,483	S&T Bancorp, Inc.		476,435
	9,742	Signature Bank(b)		1,157,544
	98,417	Susquehanna Bancshares, Inc.		1,019,600
	11,990	SVB Financial Group(b)		1,279,213
	272,769	Synovus Financial Corp.		875,589

Number of Shares			Value
		Common Stocks (continued)
		Regional Banks (continued)
	32,722	TCF Financial Corp.	$	513,735
	22,731	Texas Capital Bancshares, Inc.(b)		1,277,255
	22,981	Trustmark Corp.		525,575
	9,742	UMB Financial Corp.		571,953
	73,837	Umpqua Holdings Corp.		1,227,909
	28,476	United Bankshares, Inc.		832,923
	51,706	Valley National Bancorp		518,094
	36,469	Webster Financial Corp.		1,099,176
	9,992	Westamerica Bancorp.		507,793
	24,229	Wintrust Financial Corp.		1,085,944
				38,553,092
		Thrifts & Mortgage Finance—5.1%
	65,195	Brookline Bancorp, Inc.		591,971
	41,964	Provident Financial Services, Inc.		729,334
	34,221	Washington Federal, Inc.		738,489
				2,059,794
		Total Common Stocks (Cost $41,685,687)		40,612,886
		Money Market Fund—0.0%
	9,222	Invesco Premier Portfolio—Institutional Class(c) (Cost $9,222)		9,222
		Total Investments (Cost $41,694,909)—100.0%		40,622,108
		Other assets less liabilities—0.0%		14,313
		Net Assets—100.0%	$	40,636,421

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.

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

11

Portfolio Composition

PowerShares NYSE Century Portfolio (NYCC)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Financials	22.4
Industrials	19.8
Utilities	11.8
Consumer Staples	11.4
Consumer Discretionary	11.1
Materials	9.8
Health Care	5.4
Energy	4.3
Information Technology	3.2
Telecommunication Services	0.8
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares NYSE Century Portfolio (NYCC)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—11.1%
	303	Abercrombie & Fitch Co., Class A	$	11,138
	366	Brown Shoe Co., Inc.		8,634
	222	Brunswick Corp.		8,922
	145	Carter’s, Inc.		10,681
	129	Conn’s, Inc.(b)		5,706
	441	Cooper Tire & Rubber Co.		11,091
	522	Dana Holding Corp.		11,051
	246	Foot Locker, Inc.		11,446
	661	Ford Motor Co.		10,675
	346	Gannett Co., Inc.		9,401
	246	General Motors Co		8,482
	429	Goodyear Tire & Rubber Co. (The)		10,811
	15	Graham Holdings Co., Class B		10,068
	147	Hanesbrands, Inc.		12,067
	147	Harley-Davidson, Inc.		10,869
	582	Houghton Mifflin Harcourt Co.(b)		11,890
	582	Interpublic Group of Cos., Inc. (The)		10,138
	1,123	J.C. Penney Co., Inc.(b)		9,568
	186	John Wiley & Sons, Inc., Class A		10,688
	201	Johnson Controls, Inc.		9,073
	183	Jos. A. Bank Clothiers, Inc.(b)		11,813
	195	Lamar Advertising Co., Class A(b)		9,734
	65	Lands’ End, Inc.(b)		1,797
	327	Leggett & Platt, Inc.		10,745
	192	Macy’s, Inc.		11,027

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	183	Madison Square Garden Co. (The), Class A(b)	$	9,992
	240	Matthews International Corp., Class A		9,684
	444	Media General, Inc.(b)		6,802
	195	Meredith Corp.		8,594
	657	New York Times Co. (The), Class A		10,565
	315	Newell Rubbermaid, Inc.		9,485
	165	Nordstrom, Inc.		10,111
	78	PVH Corp.		9,795
	120	Scripps Networks Interactive, Inc., Class A		9,008
	219	Sears Holdings Corp.(b)		9,594
	561	Service Corp. International		10,530
	213	Sotheby’s		8,959
	168	Target Corp.		10,374
	111	Tiffany & Co.		9,711
	136	TRW Automotive Holdings Corp.(b)		10,928
	165	VF Corp.		10,080
	65	Whirlpool Corp.		9,970
	303	Wolverine World Wide, Inc.		8,514
				420,211
		Consumer Staples—11.4%
	264	Altria Group, Inc.		10,589
	231	Archer-Daniels-Midland Co.		10,102
	585	Avon Products, Inc.		8,939
	135	Brown-Forman Corp., Class B		12,112

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

12

PowerShares NYSE Century Portfolio (NYCC) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples (continued)
	123	Bunge Ltd.	$	9,797
	234	Campbell Soup Co.		10,645
	153	Church & Dwight Co., Inc.		10,559
	108	Clorox Co. (The)		9,796
	249	Coca-Cola Co. (The)		10,157
	231	Coca-Cola Enterprises, Inc.		10,497
	156	Colgate-Palmolive Co.		10,499
	303	ConAgra Foods, Inc.		9,245
	654	Coty, Inc., Class A		10,497
	141	CVS Caremark Corp.		10,253
	486	Darling International, Inc.(b)		9,725
	207	Dr Pepper Snapple Group, Inc.		11,472
	357	Fresh Del Monte Produce, Inc.		10,314
	204	General Mills, Inc.		10,816
	105	Hershey Co. (The)		10,105
	225	Hormel Foods Corp.		10,730
	150	Ingredion, Inc.		10,567
	99	J.M. Smucker Co. (The)		9,571
	170	Kellogg Co.		11,361
	99	Kimberly-Clark Corp.		11,113
	255	Kroger Co. (The)		11,740
	201	Lorillard, Inc.		11,943
	147	McCormick & Co., Inc.		10,466
	123	Mead Johnson Nutrition Co.		10,856
	181	Molson Coors Brewing Co., Class B		10,855
	291	Mondelez International, Inc., Class A		10,374
	123	PepsiCo, Inc.		10,564
	117	Philip Morris International, Inc.		9,995
	123	Procter & Gamble Co. (The)		10,154
	204	Reynolds American, Inc.		11,512
	351	Snyders-Lance, Inc.		9,323
	144	Spectrum Brands Holdings, Inc.		11,063
	315	Tootsie Roll Industries, Inc.		8,880
	147	TreeHouse Foods, Inc.(b)		11,001
	615	Vector Group Ltd.		13,099
	177	Walgreen Co.		12,018
	198	Weis Markets, Inc.		9,126
				432,430
		Energy—4.3%
	144	Buckeye Partners LP		10,974
	171	Cameron International Corp.(b)		11,108
	81	Chevron Corp.		10,167
	264	CONSOL Energy, Inc.		11,751
	237	CVR Energy, Inc.		11,648
	114	EQT Corp.		12,425
	102	Exxon Mobil Corp.		10,446
	195	FMC Technologies, Inc.(b)		11,056
	285	Marathon Oil Corp.		10,303
	130	National Oilwell Varco, Inc.		10,209
	171	ONEOK, Inc.		10,811
	525	Peabody Energy Corp.		9,980
	396	Regency Energy Partners LP		10,787
	123	SM Energy Co.		9,118
	264	Williams Cos., Inc. (The)		11,133
				161,916

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials—22.4%
	246	Alexander & Baldwin, Inc.	$	9,178
	114	American Express Co.		9,967
	177	American Financial Group, Inc.		10,342
	93	American National Insurance Co.		10,454
	90	Ameriprise Financial, Inc.		10,047
	153	Assurant, Inc.		10,314
	723	Astoria Financial Corp.		9,587
	399	BancorpSouth, Inc.		9,321
	645	Bank of America Corp.		9,765
	171	Bank of Hawaii Corp.		9,434
	294	Bank of New York Mellon Corp. (The)		9,958
	177	Bank of the Ozarks, Inc.		10,602
	273	BB&T Corp.		10,191
	87	Berkshire Hathaway, Inc., Class B(b)		11,210
	153	BOK Financial Corp.		10,009
	837	Capitol Federal Financial, Inc.		10,078
	387	CBRE Group, Inc., Class A(b)		10,310
	105	Chubb Corp. (The)		9,668
	198	CIT Group, Inc.		8,524
	195	Citigroup, Inc.		9,342
	129	CME Group, Inc.		9,080
	246	CNA Financial Corp.		10,074
	213	Comerica, Inc.		10,275
	225	Commerce Bancshares, Inc.		9,783
	138	Cullen/Frost Bankers, Inc.		10,545
	310	Fidelity National Financial, Inc., Class A		9,976
	483	Fifth Third Bancorp		9,955
	363	First American Financial Corp.		9,656
	46	First Citizens BancShares, Inc., Class A		10,345
	153	First Financial Bankshares, Inc.		9,035
	870	First Horizon National Corp.		9,996
	960	First Niagara Financial Group, Inc.		8,563
	453	FirstMerit Corp.		8,784
	652	Genworth Financial, Inc., Class A(b)		11,638
	59	Goldman Sachs Group, Inc. (The)		9,429
	276	Hancock Holding Co.		9,309
	171	Hanover Insurance Group, Inc. (The)		9,995
	279	Hartford Financial Services Group, Inc. (The)		10,008
	1,080	Hudson City Bancorp, Inc.		10,757
	1,053	Huntington Bancshares, Inc.		9,645
	159	IBERIABANK Corp.		10,001
	45	IntercontinentalExchange Group, Inc.		9,200
	174	JPMorgan Chase & Co.		9,741
	756	KeyCorp		10,312
	420	KKR & Co. LP		9,538
	225	Lazard Ltd., Class A		10,586
	231	Legg Mason, Inc.		10,832
	360	Leucadia National Corp.		9,187
	195	Lincoln National Corp.		9,459
	90	M&T Bank Corp.		10,981
	210	Marsh & McLennan Cos., Inc.		10,355
	315	MB Financial, Inc.		8,455
	132	McGraw-Hill Financial, Inc.		9,759
	189	MetLife, Inc.		9,894
	132	Moody’s Corp.		10,362
	888	National Penn Bancshares, Inc.		8,676

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

13

PowerShares NYSE Century Portfolio (NYCC) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	387	NBT Bancorp, Inc.	$	8,766
	603	New York Community Bancorp, Inc.		9,292
	165	Northern Trust Corp.		9,941
	757	Northwest Bancshares, Inc.		10,061
	655	Old National Bancorp		9,249
	597	Old Republic International Corp.		9,886
	120	Park National Corp.		8,702
	675	People’s United Financial, Inc.		9,639
	129	PNC Financial Services Group, Inc.		10,841
	351	Popular, Inc.(b)		10,846
	243	Potlatch Corp. REIT		9,290
	204	Principal Financial Group, Inc.		9,555
	204	Protective Life Corp.		10,435
	522	Provident Financial Services, Inc.		9,072
	111	Prudential Financial, Inc.		8,955
	1,029	Regions Financial Corp.		10,434
	138	State Street Corp.		8,909
	756	Sterling Bancorp		9,042
	216	Stifel Financial Corp.(b)		10,102
	276	SunTrust Banks, Inc.		10,560
	2,835	Synovus Financial Corp.		9,100
	129	Torchmark Corp.		10,281
	114	Travelers Cos., Inc. (The)		10,326
	372	Trustmark Corp.		8,508
	252	U.S. Bancorp		10,277
	156	UMB Financial Corp.		9,159
	288	Unum Group		9,567
	222	Wells Fargo & Co.		11,020
	324	Weyerhaeuser Co. REIT		9,671
	228	Willis Group Holdings PLC		9,346
	339	Zions Bancorp.		9,804
				853,123
		Health Care—5.4%
	264	Abbott Laboratories		10,227
	152	Aetna, Inc.		10,860
	144	AmerisourceBergen Corp.		9,386
	93	Becton, Dickinson and Co.		10,512
	190	Bristol-Myers Squibb Co.		9,517
	76	C.R. Bard, Inc.		10,437
	117	Cigna Corp.		9,365
	210	DENTSPLY International, Inc.		9,372
	198	Eli Lilly & Co.		11,702
	258	Hanger, Inc.(b)		8,945
	111	Johnson & Johnson		11,243
	111	Laboratory Corp. of America Holdings(b)		10,956
	63	McKesson Corp.		10,659
	204	Merck & Co., Inc.		11,946
	276	Owens & Minor, Inc.		9,257
	246	Patterson Cos., Inc.		10,012
	67	Perrigo Co. PLC		9,706
	330	Pfizer, Inc.		10,322
	144	Sirona Dental Systems, Inc.(b)		10,832
	94	Thermo Fisher Scientific, Inc.		10,716
				205,972

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials—19.8%
	74	3M Co.	$	10,293
	192	A.O. Smith Corp.		8,978
	354	ABM Industries, Inc.		9,590
	276	Actuant Corp., Class A		9,345
	285	Albany International Corp., Class A		10,254
	228	Allegion PLC		11,252
	183	Armstrong World Industries, Inc.(b)		9,618
	294	Babcock & Wilcox Co. (The)		10,228
	264	Barnes Group, Inc.		10,169
	327	Brady Corp., Class A		8,433
	459	Briggs & Stratton Corp.		9,809
	294	Brink’s Co. (The)		7,479
	179	C.H. Robinson Worldwide, Inc.		10,543
	123	Chicago Bridge & Iron Co. NV		9,849
	159	CLARCOR, Inc.		9,184
	159	Colfax Corp.(b)		11,445
	150	Crane Co.		10,910
	357	CSX Corp.		10,075
	111	Deere & Co.		10,361
	84	Dun & Bradstreet Corp. (The)		9,304
	90	DXP Enterprises, Inc.(b)		10,189
	132	Eaton Corp. PLC		9,588
	144	Emerson Electric Co.		9,818
	147	Equifax, Inc.		10,409
	132	Flowserve Corp.		9,643
	129	Fluor Corp.		9,765
	159	G&K Services, Inc., Class A		8,417
	197	GATX Corp.		12,929
	108	General Dynamics Corp.		11,821
	363	General Electric Co.		9,761
	105	Genesee & Wyoming, Inc., Class A(b)		10,396
	885	GrafTech International Ltd.(b)		9,921
	357	Harsco Corp.		8,543
	339	Herman Miller, Inc.		10,451
	111	Honeywell International, Inc.		10,312
	93	Hubbell, Inc., Class B		10,948
	117	Huntington Ingalls Industries, Inc.		12,051
	123	Illinois Tool Works, Inc.		10,483
	165	Ingersoll-Rand PLC		9,867
	179	Joy Global, Inc.		10,808
	84	Kansas City Southern		8,474
	330	KBR, Inc.		8,372
	120	Lennox International, Inc.		10,060
	141	Lincoln Electric Holdings, Inc.		9,420
	69	Lockheed Martin Corp.		11,326
	432	Manitowoc Co., Inc. (The)		13,729
	42	Middleby Corp. (The)(b)		10,604
	198	MSA Safety, Inc.		10,445
	324	Mueller Industries, Inc.		9,377
	270	Navistar International Corp.(b)		10,241
	222	Nielsen Holdings NV		10,423
	135	Nordson Corp.		10,037
	111	Norfolk Southern Corp.		10,493
	174	PACCAR, Inc.		11,133
	507	R.R. Donnelley & Sons Co.		8,923
	87	Rockwell Automation, Inc.		10,369

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

14

PowerShares NYSE Century Portfolio (NYCC) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	105	SPX Corp.	$	10,693
	126	Stanley Black & Decker, Inc.		10,822
	633	Steelcase, Inc., Class A		10,432
	151	Tennant Co.		9,632
	186	Timken Co. (The)		11,733
	561	Titan International, Inc.		9,823
	162	Toro Co. (The)		10,293
	81	Towers Watson & Co., Class A		9,090
	388	Tutor Perini Corp.(b)		11,485
	61	Union Pacific Corp.		11,616
	96	United Parcel Service, Inc., Class B		9,456
	90	United Technologies Corp.		10,650
	192	URS Corp.		9,047
	363	USG Corp.(b)		10,839
	111	WABCO Holdings, Inc.(b)		11,878
	136	Wabtec Corp.		10,139
	162	Watts Water Technologies, Inc., Class A		8,618
	222	Woodward, Inc.		9,952
				752,863
		Information Technology—3.2%
	144	Belden, Inc.		10,629
	565	Booz Allen Hamilton Holding Corp.		13,131
	285	CoreLogic, Inc.(b)		7,988
	570	Corning, Inc.		11,919
	309	Diebold, Inc.		11,621
	144	Harris Corp.		10,587
	55	International Business Machines Corp.		10,806
	300	NCR Corp.(b)		9,153
	165	Rogers Corp.(b)		9,903
	294	Unisys Corp.(b)		7,165
	588	Western Union Co. (The)		9,331
	829	Xerox Corp.		10,023
				122,256
		Materials—9.8%
	948	Alcoa, Inc.		12,770
	285	Allegheny Technologies, Inc.		11,742
	200	Ball Corp.		11,238
	249	Bemis Co., Inc.		10,020
	198	Cabot Corp.		11,444
	165	Carpenter Technology Corp.		10,362
	363	Chemtura Corp.(b)		8,095
	381	Cliffs Natural Resources, Inc.		6,751
	231	Crown Holdings, Inc.(b)		10,896
	105	Domtar Corp.		9,803
	228	Dow Chemical Co. (The)		11,377
	157	E.I. du Pont de Nemours & Co.		10,569
	135	FMC Corp.		10,395
	197	Greif, Inc., Class A		10,675
	198	H.B. Fuller Co.		9,173
	3,408	Hecla Mining Co.		10,463
	119	International Flavors & Fragrances, Inc.		11,724
	207	International Paper Co.		9,657
	284	MeadWestvaco Corp.		11,096
	89	Monsanto Co.		9,852
	30	NewMarket Corp.		11,170

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	187	Nucor Corp.	$	9,677
	348	Olin Corp.		9,779
	285	Owens-Illinois, Inc.(b)		9,057
	357	P.H. Glatfelter Co.		9,111
	162	Packaging Corp. of America		10,794
	54	PPG Industries, Inc.		10,455
	78	Praxair, Inc.		10,183
	162	Scotts Miracle-Gro Co. (The), Class A		9,916
	210	Sensient Technologies Corp.		11,351
	57	Sherwin-Williams Co. (The)		11,391
	246	Sonoco Products Co.		10,352
	336	United States Steel Corp.		8,743
	144	Valspar Corp. (The)		10,518
	174	Vulcan Materials Co.		11,228
	105	W.R. Grace & Co.(b)		9,670
				371,497
		Telecommunication Services—0.8%
	288	AT&T, Inc.		10,282
	309	Level 3 Communications, Inc.(b)		13,296
	939	Sprint Corp. (Japan)(b)		7,982
				31,560
		Utilities—11.8%
	219	AGL Resources, Inc.		11,826
	207	ALLETE, Inc.		10,714
	282	Ameren Corp.		11,649
	219	American Electric Power Co., Inc.		11,784
	240	American Water Works Co., Inc.		10,927
	225	Atmos Energy Corp.		11,484
	360	Avista Corp.		11,574
	196	Black Hills Corp.		11,319
	438	CenterPoint Energy, Inc.		10,845
	188	Consolidated Edison, Inc.		10,910
	160	Dominion Resources, Inc.		11,606
	147	Duke Energy Corp.		10,950
	224	Edison International		12,669
	296	El Paso Electric Co.		11,195
	162	Entergy Corp.		11,745
	372	Exelon Corp.		13,031
	418	Great Plains Energy, Inc.		11,215
	390	Hawaiian Electric Industries, Inc.		9,356
	186	Integrys Energy Group, Inc.		11,398
	222	Laclede Group, Inc. (The)		10,525
	262	MGE Energy, Inc.		10,014
	141	National Fuel Gas Co.		10,383
	309	NiSource, Inc.		11,223
	235	Northwest Natural Gas Co.		10,404
	231	NorthWestern Corp.		11,176
	300	OGE Energy Corp.		11,199
	41	ONE Gas, Inc.		1,500
	339	Otter Tail Corp.		9,933
	534	Pepco Holdings, Inc.		14,290
	252	PG&E Corp.		11,486
	194	Pinnacle West Capital Corp.		10,854
	318	Public Service Enterprise Group, Inc.		13,029
	183	South Jersey Industries, Inc.		10,513

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

15

PowerShares NYSE Century Portfolio (NYCC) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Utilities (continued)
	249	Southern Co. (The)	$	11,412
	591	TECO Energy, Inc.		10,614
	246	UGI Corp.		11,486
	261	UIL Holdings Corp.		9,587
	168	UNS Energy Corp.		10,090
	292	Vectren Corp.		11,846
	256	WGL Holdings, Inc.		10,186
	363	Xcel Energy, Inc.		11,569
				449,516
		Total Common Stocks and Other Equity Interests (Cost $3,692,854)		3,801,344
		Money Market Fund—0.0%
	1,124	Invesco Premier Portfolio—Institutional Class(c) (Cost $1,124)		1,124
		Total Investments (Cost $3,693,978)—100.0%		3,802,468
		Other assets less liabilities—0.0%		1,021
		Net Assets—100.0%	$	3,803,489

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.

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

16

(This Page Intentionally Left Blank)

Statements of Assets and Liabilities

April 30, 2014

(Unaudited)

	PowerShares KBW Bank Portfolio (KBWB)		PowerShares KBW Capital Markets Portfolio (KBWC)		PowerShares KBW High Dividend Yield Financial Portfolio (KBWD)			PowerShares KBW Insurance Portfolio (KBWI)
Assets:
Unaffiliated investments, at value	$	167,003,381	$	9,130,175	$	231,228,129		$	9,711,667
Affiliated investments, at value		—		382,788		13,077,118			—
Total investments, at value		167,003,381		9,512,963		244,305,247			9,711,667
Receivables:
Dividends		87,832		5,902		487,910			7,658
Investments sold		—		—		74,415			—
Shares sold		—		—		—			—
Total Assets		167,091,213		9,518,865		244,867,572			9,719,325
Liabilities:
Due to custodian		16,535		28		1,728,028			2,567
Payables:
Investments purchased		—		—		505,379			—
Accrued unitary management fees		47,675		2,721		69,814			2,819
Total Liabilities		64,210		2,749		2,303,221			5,386
Net Assets	$	167,027,003	$	9,516,116	$	242,564,351		$	9,713,939
Net Assets Consist of:
Shares of beneficial interest	$	147,243,657	$	8,326,574	$	242,405,267		$	7,894,154
Undistributed net investment income (loss)		293,716		18,380		1,512,003			31,237
Undistributed net realized gain (loss)		17,353,863		628,379		(2,672,738	)		981,762
Net unrealized appreciation (depreciation)		2,135,767		542,783		1,319,819			806,786
Net Assets	$	167,027,003	$	9,516,116	$	242,564,351		$	9,713,939
Shares outstanding (unlimited amount authorized, $0.01 par value)		4,750,001		200,001		9,600,000			150,001
Net asset value	$	35.16	$	47.58	$	25.27		$	64.76
Market price	$	35.14	$	47.51	$	25.26		$	64.69
Unaffiliated investments, at cost	$	164,867,614	$	8,607,566	$	228,921,115		$	8,904,881
Affiliated investments, at cost	$	—	$	362,614	$	14,064,313		$	—
Total investments, at cost	$	164,867,614	$	8,970,180	$	242,985,428		$	8,904,881

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

18

PowerShares KBW Premium Yield Equity REIT Portfolio  (KBWY)			PowerShares KBW Property & Casualty Insurance Portfolio (KBWP)		PowerShares KBW Regional Banking Portfolio (KBWR)			PowerShares NYSE Century Portfolio (NYCC)
$	81,525,795		$	9,592,730	$	40,612,886		$	3,801,344
	167,443			3,515		9,222			1,124
	81,693,238			9,596,245		40,622,108			3,802,468
	252,018			—		26,580			3,231
	—			—		—			12,520
	3,171,563			—		—			—
	85,116,819			9,596,245		40,648,688			3,818,219
	319,036			28		28			—
	3,251,729			—		—			13,170
	21,214			3,357		12,239			1,560
	3,591,979			3,385		12,267			14,730
$	81,524,840		$	9,592,860	$	40,636,421		$	3,803,489
$	84,956,126		$	7,694,919	$	38,653,360		$	3,690,202
	(24,464	)		11,566		79,790			5,065
	(893,756	)		1,130,276		2,976,072			(268	)
	(2,513,066	)		756,099		(1,072,801	)		108,490
$	81,524,840		$	9,592,860	$	40,636,421		$	3,803,489
	2,550,000			250,000		1,100,001			150,001
$	31.97		$	38.37	$	36.94		$	25.36
$	31.97		$	38.33	$	36.94		$	25.35
$	84,038,861		$	8,836,631	$	41,685,687		$	3,692,854
$	167,443		$	3,515	$	9,222		$	1,124
$	84,206,304		$	8,840,146	$	41,694,909		$	3,693,978

19

Statements of Operations

For the six months ended April 30, 2014

(Unaudited)

	PowerShares KBW Bank Portfolio (KBWB)			PowerShares KBW Capital Markets Portfolio (KBWC)			PowerShares KBW High Dividend Yield Financial Portfolio (KBWD)			PowerShares KBW Insurance Portfolio (KBWI)
Investment Income:
Unaffiliated dividend income	$	1,530,882		$	96,164		$	10,012,475		$	126,706
Security lending income		780			—			—			—
Affiliated dividend income		5			5,628			676,817			—
Foreign withholding tax		—			—			—			—
Total Income		1,531,667			101,792			10,689,292			126,706
Expenses:
Unitary management fees		291,264			19,039			405,747			20,047
Waivers		(31	)		(4	)		(256	)		(2	)
Net Expenses		291,233			19,035			405,491			20,045
Net Investment Income		1,240,434			82,757			10,283,801			106,661
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		42,388			17,157			(5,746,608	)		(8,874	)
In-kind redemptions		17,379,926			689,623			8,311,688			997,726
Net realized gain (loss)		17,422,314			706,780			2,565,080			988,852
Net change in unrealized appreciation (depreciation) on investment securities		(8,593,670	)		(219,247	)		(3,468,650	)		(569,688	)
Net realized and unrealized gain (loss)		8,828,644			487,533			(903,570	)		419,164
Net increase (decrease) in net assets resulting from operations	$	10,069,078		$	570,290		$	9,380,231		$	525,825

^(a)  For the period January 13, 2014 (Commencement of Investment Operations) through April 30, 2014.

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

20

PowerShares KBW Premium Yield Equity REIT Portfolio (KBWY)			PowerShares KBW Property & Casualty Insurance Portfolio (KBWP)			PowerShares KBW Regional Banking Portfolio (KBWR)			PowerShares NYSE Century Portfolio  (NYCC)(a)
$	1,760,177		$	269,115		$	416,982		$	20,456
	—			—			1,811			—
	11			—			2			—
	—			—			—			(8	)
	1,760,188			269,115			418,795			20,448
	116,409			30,397			74,262			4,937
	(66	)		(7	)		(10	)		—
	116,343			30,390			74,252			4,937
	1,643,845			238,725			344,543			15,511
	(977,467	)		15,133			(164,514	)		(268	)
	465,058			1,094,427			3,144,113			—
	(512,409	)		1,109,560			2,979,599			(268	)
	2,092,346			(1,076,503	)		(3,542,187	)		108,490
	1,579,937			33,057			(562,588	)		108,222
$	3,223,782		$	271,782		$	(218,045	)	$	123,733

21

Statements of Changes in Net Assets

For the six months ended April 30, 2014 and the year ended October 31, 2013

(Unaudited)

	PowerShares KBW Bank Portfolio (KBWB)						PowerShares KBW Capital Markets Portfolio (KBWC)
	April 30, 2014			October 31, 2013			April 30, 2014			October 31, 2013
Operations:
Net investment income	$	1,240,434		$	1,948,854		$	82,757		$	96,736
Net realized gain (loss)		17,422,314			22,745,768			706,780			1,143,979
Net change in unrealized appreciation (depreciation)		(8,593,670	)		13,376,963			(219,247	)		926,019
Net increase (decrease) in net assets resulting from operations		10,069,078			38,071,585			570,290			2,166,734
Distributions to Shareholders from:
Net investment income		(1,240,349	)		(2,132,411	)		(80,818	)		(88,138	)
Capital gains		—			—			—			—
Total distributions to shareholders		(1,240,349	)		(2,132,411	)		(80,818	)		(88,138	)
Shareholder Transactions:
Proceeds from shares sold		119,596,018			626,229,018			2,421,708			23,718,946
Value of shares repurchased		(111,566,765	)		(676,071,326	)		(4,674,001	)		(16,100,699	)
Net increase (decrease) in net assets resulting from shares transactions		8,029,253			(49,842,308	)		(2,252,293	)		7,618,247
Increase (Decrease) in Net Assets		16,857,982			(13,903,134	)		(1,762,821	)		9,696,843
Net Assets:
Beginning of period		150,169,021			164,072,155			11,278,937			1,582,094
End of period	$	167,027,003		$	150,169,021		$	9,516,116		$	11,278,937
Undistributed net investment income (loss) at end of period	$	293,716		$	293,631		$	18,380		$	16,441
Changes in Shares Outstanding:
Shares sold		3,400,000			23,500,000			50,000			600,000
Shares repurchased		(3,200,000	)		(25,400,000	)		(100,000	)		(400,000	)
Shares outstanding, beginning of period		4,550,001			6,450,001			250,001			50,001
Shares outstanding, end of period		4,750,001			4,550,001			200,001			250,001

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

22

PowerShares KBW High Dividend Yield Financial Portfolio (KBWD)						PowerShares KBW Insurance Portfolio (KBWI)						PowerShares KBW Premium Yield Equity REIT Portfolio (KBWY)						PowerShares KBW Property & Casualty Insurance Portfolio (KBWP)
April 30, 2014			October 31, 2013			April 30, 2014			October 31, 2013			April 30, 2014			October 31, 2013			April 30, 2014			October 31, 2013
$	10,283,801		$	16,620,195		$	106,661		$	80,310		$	1,643,845		$	1,939,028		$	238,725		$	327,431
	2,565,080			4,575,451			988,852			(672	)		(512,409	)		7,449,395			1,109,560			1,640,834
	(3,468,650	)		4,171,668			(569,688	)		1,398,126			2,092,346			(5,472,868	)		(1,076,503	)		1,605,612
	9,380,231			25,367,314			525,825			1,477,764			3,223,782			3,915,555			271,782			3,573,877
	(8,771,798	)		(17,279,903	)		(90,813	)		(71,098	)		(1,668,309	)		(3,159,440	)		(307,039	)		(270,734	)
	—			—			—			—			—			—			(26,197	)		—
	(8,771,798	)		(17,279,903	)		(90,813	)		(71,098	)		(1,668,309	)		(3,159,440	)		(333,236	)		(270,734	)
	52,268,899			119,318,315			3,228,322			5,694,978			21,686,655			94,249,106			—			28,972,431
	(44,660,638	)		(64,033,694	)		(3,198,936	)		—			(10,624,815	)		(51,866,771	)		(11,282,725	)		(14,363,522	)
	7,608,261			55,284,621			29,386			5,694,978			11,061,840			42,382,335			(11,282,725	)		14,608,909
	8,216,694			63,372,032			464,398			7,101,644			12,617,313			43,138,450			(11,344,179	)		17,912,052
	234,347,657			170,975,625			9,249,541			2,147,897			68,907,527			25,769,077			20,937,039			3,024,987
$	242,564,351		$	234,347,657		$	9,713,939		$	9,249,541		$	81,524,840		$	68,907,527		$	9,592,860		$	20,937,039
$	1,512,003		$	—		$	31,237		$	15,389		$	(24,464	)	$	—		$	11,566		$	79,880
	2,050,000			4,750,000			50,000			100,000			700,000			2,900,000			—			850,000
	(1,750,000	)		(2,600,000	)		(50,000	)		—			(350,000	)		(1,650,000	)		(300,000	)		(400,000	)
	9,300,000			7,150,000			150,001			50,001			2,200,000			950,000			550,000			100,000
	9,600,000			9,300,000			150,001			150,001			2,550,000			2,200,000			250,000			550,000

23

Statements of Changes in Net Assets (continued)

For the six months ended April 30, 2014 and the year ended October 31, 2013

(Unaudited)

	PowerShares KBW Regional Banking Portfolio (KBWR)						PowerShares NYSE Century Portfolio  (NYCC)(a)
	April 30, 2014			October 31, 2013			April 30, 2014
Operations:
Net investment income	$	344,543		$	465,430		$	15,511
Net realized gain (loss)		2,979,599			3,290,357			(268	)
Net change in unrealized appreciation (depreciation)		(3,542,187	)		3,368,234			108,490
Net increase (decrease) in net assets resulting from operations		(218,045	)		7,124,021			123,733
Distributions to Shareholders from:
Net investment income		(364,631	)		(395,225	)		(10,446	)
Shareholder Transactions:
Proceeds from shares sold		32,995,065			50,007,522			3,690,202
Value of shares repurchased		(25,001,467	)		(41,497,974	)		—
Net increase in net assets resulting from shares transactions		7,993,598			8,509,548			3,690,202
Increase in Net Assets		7,410,922			15,238,344			3,803,489
Net Assets:
Beginning of period		33,225,499			17,987,155			—
End of period	$	40,636,421		$	33,225,499		$	3,803,489
Undistributed net investment income at end of period	$	79,790		$	99,878		$	5,065
Changes in Shares Outstanding:
Shares sold		850,000			1,550,000			150,001
Shares repurchased		(650,000	)		(1,300,000	)		—
Shares outstanding, beginning of period		900,001			650,001			—
Shares outstanding, end of period		1,100,001			900,001			150,001

^(a)  For the period January 13, 2014 (Commencement of Investment Operations) through April 30, 2014.

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

24

Financial Highlights

PowerShares KBW Bank Portfolio (KBWB)

	Six-Months Ended April 30, 2014 (Unaudited)			Year Ended October 31, 2013			For the Period November 1,  2011(a) through October 31, 2012
Per Share Operating Performance:
Net asset value at beginning of period	$	33.00		$	25.44		$	20.68
Net investment income(b)		0.26			0.45			0.43
Net realized and unrealized gain on investments		2.18			7.52			4.84
Total from investment operations		2.44			7.97			5.27
Distributions to shareholders from:
Net investment income		(0.28	)		(0.41	)		(0.50	)
Return of capital		—			—			(0.01	)
Total distributions		(0.28	)		(0.41	)		(0.51	)
Net asset value at end of period	$	35.16		$	33.00		$	25.44
Market price at end of period(c)	$	35.14		$	33.03		$	25.46
Net Asset Value Total Return(d)		7.38	%		31.51	%		25.97	%
Market Price Total Return(d)		7.23	%		31.52	%		26.07	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	167,027		$	150,169		$	164,072
Ratio to average net assets of:
Expenses, after Waivers		0.35	%(e)		0.35	%		0.27	%(e)
Expenses, prior to Waivers		0.35	%(e)		0.35	%		0.35	%(e)
Net investment income, after Waivers		1.49	%(e)		1.51	%		1.84	%(e)
Portfolio turnover rate(f)		3	%		8	%		4	%

PowerShares KBW Capital Markets Portfolio (KBWC)

	Six-Months Ended April 30, 2014 (Unaudited)			Year Ended October 31, 2013			For the Period November 1,  2011(a) through October 31, 2012
Per Share Operating Performance:
Net asset value at beginning of period	$	45.12		$	31.64		$	30.49
Net investment income(b)		0.37			0.52			0.61
Net realized and unrealized gain on investments		2.43			13.70			1.73
Total from investment operations		2.80			14.22			2.34
Distributions to shareholders from:
Net investment income		(0.34	)		(0.74	)		(1.19	)
Net asset value at end of period	$	47.58		$	45.12		$	31.64
Market price at end of period(c)	$	47.51		$	45.17		$	31.62
Net Asset Value Total Return(d)		6.19	%		45.55	%		7.79	%
Market Price Total Return(d)		5.92	%		45.89	%		7.72	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	9,516		$	11,279		$	1,582
Ratio to average net assets of:
Expenses, after Waivers		0.35	%(e)		0.36	%		0.16	%(e)
Expenses, prior to Waivers		0.35	%(e)		0.36	%		0.35	%(e)
Net investment income, after Waivers		1.54	%(e)		1.30	%		1.98	%(e)
Portfolio turnover rate(f)		12	%		38	%		6	%

^(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 the 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 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.

25

Financial Highlights (continued)

PowerShares KBW High Dividend Yield Financial Portfolio (KBWD)

	Six-Months Ended April 30,  2014 (Unaudited)			Year Ended October 31,						For the Period November 29,  2010(a) Through October 31, 2011
				2013			2012
Per Share Operating Performance:
Net asset value at beginning of period	$	25.20		$	23.91		$	22.37		$	23.51
Net investment income(b)		1.11	(c)		1.90			2.01			1.91
Net realized and unrealized gain (loss) on investments		(0.09	)		1.37			1.88			(0.82	)
Total from investment operations		1.02			3.27			3.89			1.09
Distributions to shareholders from:
Net investment income		(0.95	)		(1.98	)		(2.35	)		(2.23	)
Net asset value at end of period	$	25.27		$	25.20		$	23.91		$	22.37
Market price at end of period(d)	$	25.26		$	25.24		$	23.86		$	22.43
Net Asset Value Total Return(e)		4.10	%		14.21	%		18.32	%		4.64	%(f)
Market Price Total Return(e)		3.89	%		14.62	%		17.75	%		4.92	%(f)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	242,564		$	234,348		$	170,976		$	26,843
Ratio to average net assets of:
Expenses(g)		0.35	%(h)		0.37	%		0.35	%		0.37	%(h)
Net investment income		8.84	%(c)(h)		7.64	%		8.56	%		9.14	%(h)
Portfolio turnover rate(i)		16	%		37	%		19	%		33	%

PowerShares KBW Insurance Portfolio (KBWI)

	Six-Months Ended April 30, 2014 (Unaudited)			Year Ended October 31, 2013			For the Period November 1,  2011(a) Through October 31, 2012
Per Share Operating Performance:
Net asset value at beginning of period	$	61.66		$	42.96		$	38.33
Net investment income(b)		0.60			0.94			1.42
Net realized and unrealized gain on investments		3.03			18.73			4.54
Total from investment operations		3.63			19.67			5.96
Distributions to shareholders from:
Net investment income		(0.53	)		(0.97	)		(1.33	)
Net asset value at end of period	$	64.76		$	61.66		$	42.96
Market price at end of period(d)	$	64.69		$	61.76		$	42.95
Net Asset Value Total Return(e)		5.88	%		46.44	%		15.91	%
Market Price Total Return(e)		5.59	%		46.72	%		15.89	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	9,714		$	9,250		$	2,148
Ratio to average net assets of:
Expenses, after Waivers		0.36	%(h)		0.36	%		0.11	%(h)
Expense, prior to Waivers		0.36	%(h)		0.36	%		0.35	%(h)
Net investment income, after Waivers		1.89	%(h)		1.74	%		3.61	%(h)
Portfolio turnover rate(i)		11	%		3	%		5	%

^(a)  Commencement of Investment Operations.

^(b)  Based on average shares outstanding.

^(c)  Net Investment income per share and the ratio of net investment income to average net assets include a significant dividend during the period. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividend are $0.97 and 7.73%, 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 the 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)  The net asset value total return from Fund Inception (December 2, 2010, the first day of trading on the Exchange) to October 31, 2011 was 2.97%. The market price total return from Fund Inception to October 31, 2011 was 3.38%.

^(g)  In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment company in which the Fund invests. Estimated investment company expenses are not expenses that are incurred directly by the Fund. They are expenses, that are incurred directly by the investment companies and are deducted from the value of the funds that the Fund invests in. The effect of the estimated investment company expenses that you bear indirectly is included in your Fund’s total return.

^(h)  Annualized.

⁽ⁱ⁾  Portfolio turnover rate is not annualized 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.

26

Financial Highlights (continued)

PowerShares KBW Premium Yield Equity REIT Portfolio (KBWY)

	Six-Months Ended April 30,  2014 (Unaudited)			Year Ended October 31,						For the Period November 29,  2010(a) Through October 31, 2011
				2013			2012
Per Share Operating Performance:
Net asset value at beginning of period	$	31.32		$	27.13		$	23.37		$	24.96
Net investment income(b)		0.75			0.89			0.91			1.01
Net realized and unrealized gain (loss) on investments		0.66			4.76			4.22			(1.27	)
Total from investment operations		1.41			5.65			5.13			(0.26	)
Distributions to shareholders from:
Net investment income		(0.76	)		(1.46	)		(1.11	)		(1.03	)
Return of capital		—			—			(0.26	)		(0.30	)
Total distributions		(0.76	)		(1.46	)		(1.37	)		(1.33	)
Net asset value at end of period	$	31.97		$	31.32		$	27.13		$	23.37
Market price at end of period(c)	$	31.97		$	31.38		$	27.11		$	23.40
Net Asset Value Total Return(d)		4.64	%		21.11	%		22.54	%		(1.20	)%(e)
Market Price Total Return(d)		4.45	%		21.42	%		22.30	%		(1.08	)%(e)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	81,525		$	68,908		$	25,769		$	7,012
Ratio to average net assets of:
Expenses		0.35	%(f)		0.36	%		0.35	%		0.36	%(f)
Net investment income		4.93	%(f)		2.85	%		3.58	%		4.54	%(f)
Portfolio turnover rate(g)		16	%		21	%		40	%		36	%

PowerShares KBW Property & Casualty Insurance Portfolio (KBWP)

	Six-Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,						November 29, 2010(a) Through October 31, 2011
				2013			2012
Per Share Operating Performance:
Net asset value at beginning of period	$	38.07		$	30.25		$	24.83		$	24.75
Net investment income(b)		0.52			0.59			0.53			0.54
Net realized and unrealized gain on investments		0.43			8.09			5.41			0.04
Total from investment operations		0.95			8.68			5.94			0.58
Distributions to shareholders from:
Net investment income		(0.60	)		(0.86	)		(0.52	)		(0.50	)
Capital gains		(0.05	)		—			—			—
Total distributions		(0.65	)		(0.86	)		(0.52	)		(0.50	)
Net asset value at end of period	$	38.37		$	38.07		$	30.25		$	24.83
Market price at end of period(c)	$	38.33		$	38.09		$	30.24		$	24.84
Net Asset Value Total Return(d)		2.51	%		29.33	%		24.21	%		2.36	%(h)
Market Price Total Return(d)		2.36	%		29.44	%		24.12	%		2.41	%(h)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	9,593		$	20,937		$	3,025		$	3,725
Ratio to average net assets of:
Expenses		0.35	%(f)		0.36	%		0.35	%		0.37	%(f)
Net investment income		2.74	%(f)		1.69	%		1.94	%		2.38	%(f)
Portfolio turnover rate(g)		2	%		12	%		2	%		4	%

^(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 the 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 (December 2, 2010, the first day of trading on the Exchange) to October 31, 2011 was (1.87)%. The market price total return from Fund Inception to October 31, 2011 was (1.55)%.

^(f)  Annualized.

^(g)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

^(h)  The net asset value total return from Fund Inception (December 2, 2010, the first day of trading on the Exchange) to October 31, 2011 was 0.38%. The market price total return from Fund Inception to October 31, 2011 was 0.45%.

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

27

Financial Highlights (continued)

PowerShares KBW Regional Banking Portfolio (KBWR)

	Six-Months Ended April 30, 2014 (Unaudited)			Year Ended October 31, 2013			For the Period November 1,  2011(a) Through October 31, 2012
Per Share Operating Performance:
Net asset value at beginning of period	$	36.92		$	27.67		$	23.85
Net investment income(b)		0.31			0.66			0.63
Net realized and unrealized gain on investments		0.03			9.12			3.94
Total from investment operations		0.34			9.78			4.57
Distributions to shareholders from:
Net investment income		(0.32	)		(0.53	)		(0.75	)
Net asset value at end of period	$	36.94		$	36.92		$	27.67
Market price at end of period(c)	$	36.94		$	36.96		$	27.67
Net Asset Value Total Return(d)		0.86	%		35.80	%		19.20	%
Market Price Total Return(d)		0.75	%		35.94	%		19.20	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	40,636		$	33,225		$	17,987
Ratio to average net assets of:
Expenses, after Waivers		0.35	%(e)		0.35	%		0.11	%(e)
Expenses, prior to Waivers		0.35	%(e)		0.35	%		0.35	%(e)
Net investment income, after Waivers		1.63	%(e)		2.05	%		2.44	%(e)
Portfolio turnover rate(f)		8	%		7	%		3	%

PowerShares NYSE Century Portfolio (NYCC)

	For the Period January 13,  2014(a) Through April 30, 2014 (Unaudited)
Per Share Operating Performance:
Net asset value at beginning of period	$	24.70
Net investment income(b)		0.11
Net realized and unrealized gain on investments		0.62
Total from investment operations		0.73
Distributions to shareholders from:
Net investment income		(0.07	)
Net asset value at end of period	$	25.36
Market price at end of period(c)	$	25.35
Net Asset Value Total Return(d)		2.95	%(g)
Market Price Total Return(d)		2.91	%(g)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	3,803
Ratio to average net assets of:
Expenses		0.50	%(e)
Net investment income		1.59	%(e)
Portfolio turnover rate(f)		1	%

^(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 the 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 and does not include securities received or delivered from processing creations or redemptions.

^(g)  The net asset value total return from Fund Inception (January 15, 2014, the first day of trading on the Exchange) to April 30, 2014 was 1.51%. The market price total return from Fund Inception to April 30, 2014 was 1.47%.

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

28

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust II

April 30, 2014

(Unaudited)

Note 1. Organization

PowerShares Exchange-Traded Fund Trust II (the “Trust”) was organized as a Massachusetts business trust on October 10, 2006 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of April 30, 2014, the Trust offered fifty-seven portfolios. This report includes the following portfolios:

Full Name	Short Name
PowerShares KBW Bank Portfolio (KBWB)	“KBW Bank Portfolio”
PowerShares KBW Capital Markets Portfolio (KBWC)	“KBW Capital Markets Portfolio”
PowerShares KBW High Dividend Yield Financial Portfolio (KBWD)	“KBW High Dividend Yield Financial Portfolio”
PowerShares KBW Insurance Portfolio (KBWI)	“KBW Insurance Portfolio”
PowerShares KBW Premium Yield Equity REIT Portfolio (KBWY)	“KBW Premium Yield Equity REIT Portfolio”
PowerShares KBW Property & Casualty Insurance Portfolio (KBWP)	“KBW Property & Casualty Insurance Portfolio”
PowerShares KBW Regional Banking Portfolio (KBWR)	“KBW Regional Banking Portfolio”
PowerShares NYSE Century Portfolio (NYCC)	“NYSE Century 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 prices of each Fund’s Shares may differ to some degree from the Fund’s net asset value (“NAV”). Unlike conventional mutual funds, each Fund issues and redeems Shares on a continuous basis, at NAV, only in a large specified number of Shares, each called a “Creation Unit.” Creation Units are issued and redeemed 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
KBW Bank Portfolio	KBW Bank Index
KBW Capital Markets Portfolio	KBW Capital Markets Index
KBW High Dividend Yield Financial Portfolio	KBW Financial Sector Dividend Yield Index
KBW Insurance Portfolio	KBW Insurance Index
KBW Premium Yield Equity REIT Portfolio	KBW Premium Yield Equity REIT Index
KBW Property & Casualty Insurance Portfolio	KBW Property & Casualty Index
KBW Regional Banking Portfolio	KBW Regional Banking Index
NYSE Century Portfolio	NYSE Century IndexSM

Note 2. Significant Accounting Policies

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

A. Security Valuation

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

A security listed or traded on an exchange (except convertible 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

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exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. 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 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 the 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/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

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 of each Fund’s 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 an 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 a Fund holds participate or factors relating to specific

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companies in which the Funds invest. 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 may 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.

High Dividend Paying Securities Risk. KBW Premium Yield Equity REIT Portfolio and KBW High Dividend Yield Financial 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.

REIT Risk. Although KBW Premium Yield Equity REIT Portfolio and KBW High Dividend Yield Financial Portfolio will not invest in real estate directly, the REITs in which the Funds invest are subject to risks inherent in the direct ownership of real estate. These risks include, but are not limited to, a possible lack of mortgage funds and associated interest rate risks, overbuilding, property vacancies, increases in property taxes and operating expenses, changes in zoning laws, losses due to environmental damages and changes in neighborhood values and appeal to purchasers.

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 timing differences are primarily due to differing book and tax treatments for in-kind transactions, losses deferred due to wash sales, and passive foreign investment company adjustments, if any.

The Funds file 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.

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

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E. Expenses

Each Fund 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 Funds, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses (including acquired fund fees and expenses, if any).

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.

F. Dividends and Distributions to Shareholders

Each Fund (except for KBW High Dividend Yield Financial Portfolio and KBW Premium Yield Equity REIT Portfolio) declares and pays dividends from net investment income, if any, to its shareholders quarterly. KBW High Dividend Yield Financial Portfolio and KBW Premium Yield Equity REIT Portfolio each declares and pays dividends from net investment income, if any, monthly. Each Fund 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 period-end.

G. Foreign Currency Transactions

The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in currencies other than the U.S. dollar, are translated into U.S. dollars using the applicable exchange rates as of the close of London world markets. The effects of changes in foreign currency exchange rates on investments in securities are not segregated in the Statements of Operations from the effects of changes in market prices of those securities, but are included with the net realized and unrealized gain or loss on investments in securities. Certain foreign exchange gains and losses included in realized and unrealized gains or losses are included in or are a reduction of ordinary income in accordance with U.S. federal income tax regulations.

H. Securities Lending

During the period, KBW Bank Portfolio, KBW Insurance Portfolio and KBW Regional Banking Portfolio could lend 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% of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is invested in an affiliated money market fund and is shown as such on the Schedule of Investments. It is the policy of these Funds to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to a Fund if, and to the extent that, the market value of the securities loaned were to increase, and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. A Fund could experience delays and costs in gaining access to the collateral. A Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Securities lending income on the Statements of Operations. The aggregate value of securities out on loan is shown on the Statements of Assets and Liabilities, if any. Effective January 2014, these Funds no longer participate in securities lending.

Note 3. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with the Adviser pursuant to which the Adviser has overall responsibility for the selection and ongoing monitoring of the Funds’ investments, managing the Funds’ business affairs and providing certain clerical, bookkeeping and other administrative services.

As compensation for its services, each Fund (except for NYSE Century Portfolio) has agreed to pay the Adviser an annual unitary management fee of 0.35% of the Fund’s average daily net assets, and NYSE Century Portfolio has agreed to pay the Adviser an annual unitary management fee of 0.50% of the Fund’s average daily net assets. Out of unitary management fee, the Adviser has agreed to pay substantially all expenses of the Funds, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses (including acquired fund fees and expenses, if any).

Further, through August 31, 2015, the Adviser has contractually agreed to waive a portion of the 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.

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For the six-month period ended April 30, 2014, the Adviser waived fees for each Fund, in the following amounts:

KBW Bank Portfolio	31
KBW Capital Markets Portfolio	4
KBW High Dividend Yield Financial Portfolio	256
KBW Insurance Portfolio	2
KBW Premium Yield Equity REIT Portfolio	66
KBW Property & Casualty Insurance Portfolio	7
KBW Regional Banking Portfolio	10

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
KBW Bank Portfolio	Keefe, Bruyette & Woods, Inc.
KBW Capital Markets Portfolio	Keefe, Bruyette & Woods, Inc.
KBW High Dividend Yield Financial Portfolio	Keefe, Bruyette & Woods, Inc.
KBW Insurance Portfolio	Keefe, Bruyette & Woods, Inc.
KBW Premium Yield Equity REIT Portfolio	Keefe, Bruyette & Woods, Inc.
KBW Property & Casualty Insurance Portfolio	Keefe, Bruyette & Woods, Inc.
KBW Regional Banking Portfolio	Keefe, Bruyette & Woods, Inc.
NYSE Century Portfolio	NYSE Group, Inc.

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 not sponsored, endorsed, sold or promoted by the Licensors, and the Licensors 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 Funds’ 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. The table below shows the following Funds’ transactions in, and earnings from, its investments in Invesco Mortgage Capital, Inc. REIT or Invesco Ltd. for the six-month period ended April 30, 2014.

KBW Capital Markets Portfolio

	Value October 31, 2013		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain		Value April 30, 2014		Dividend Income
Invesco Ltd.	$	478,609	$	98,613	$	(214,152	)	$	178	$	16,597	$	379,845	$	5,627

KBW High Dividend Yield Financial Portfolio

	Value October 31, 2013		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain/(Loss)			Value April 30, 2014		Dividend Income
Invesco Mortgage Capital, Inc. REIT	$	8,932,139	$	4,532,402	$	(2,436,348	)	$	1,266,152	$	(956,211	)	$	11,338,134	$	676,780

Note 5. Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods, giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily

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available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

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

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

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

As of April 30, 2014, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedule of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

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 carryforward) 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 carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Funds to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in 8 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 carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The following Funds had capital loss carryforwards as of October 31, 2013.

	Short-term		Long-term		Total*		Utilized
KBW Bank Portfolio	$	—	$	—	$	—	$	—
KBW Capital Markets Portfolio		—		3,149		3,149		11,388
KBW High Dividend Yield Financial Portfolio		—		—		—		—
KBW Insurance Portfolio		511		—		511		4,979
KBW Premium Yield Equity REIT Portfolio		—		—		—		388,035
KBW Property & Casualty Insurance Portfolio		—		—		—		9,892
KBW Regional Banking Portfolio		—		—		—		—

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

Note 7. Investment Transactions

For the period ended April 30, 2014, the cost of securities purchased and proceeds from sales of securities, excluding short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, were as follows:

	Purchases		Sales
KBW Bank Portfolio	$	5,802,491	$	5,777,965
KBW Capital Markets Portfolio		1,277,103		1,264,908
KBW High Dividend Yield Financial Portfolio		39,943,548		38,315,092
KBW Insurance Portfolio		1,175,518		1,158,753
KBW Premium Yield Equity REIT Portfolio		11,803,769		11,385,441
KBW Property & Casualty Insurance Portfolio		400,404		498,395

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	Purchases		Sales
KBW Regional Banking Portfolio	$	3,221,874	$	4,659,738
NYSE Century Portfolio		30,525		26,319

For the period ended April 30, 2014, in-kind transactions associated with creations and redemptions were as follows:

	Cost of Securities Received		Value of Securities Delivered
KBW Bank Portfolio	$	119,588,138	$	111,563,582
KBW Capital Markets Portfolio		2,421,748		4,674,376
KBW High Dividend Yield Financial Portfolio		51,990,837		43,874,269
KBW Insurance Portfolio		3,228,271		3,199,137
KBW Premium Yield Equity REIT Portfolio		21,676,583		10,926,809
KBW Property & Casualty Insurance Portfolio		—		11,283,186
KBW Regional Banking Portfolio		32,994,529		23,600,100
NYSE Century Portfolio		3,689,615		—

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

At April 30, 2014, 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:

	Cost		Net Unrealized Appreciation (Depreciation)			Gross Unrealized Appreciation		Gross Unrealized (Depreciation)
KBW Bank Portfolio	$	164,954,069	$	2,049,312		$	4,746,079	$	(2,696,767	)
KBW Capital Markets Portfolio		9,045,097		467,866			677,968		(210,102	)
KBW High Dividend Yield Financial Portfolio		248,223,246		(3,917,999	)		10,531,254		(14,449,253	)
KBW Insurance Portfolio		8,911,460		800,207			859,662		(59,455	)
KBW Premium Yield Equity REIT Portfolio		84,587,651		(2,894,413	)		1,320,132		(4,214,545	)
KBW Property & Casualty Insurance Portfolio		8,847,941		748,304			835,556		(87,252	)
KBW Regional Banking Portfolio		41,707,458		(1,085,350	)		684,294		(1,769,644	)
NYSE Century Portfolio		3,693,978		108,490			189,449		(80,959	)

Note 8. Trustees’ and Officer’s Fees

Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to each Trustee who is not an “interested person” as defined in the 1940 Act (an “Independent Trustee”) and Officer of the Funds. The Adviser, as a result of each Fund’s unitary management fee, pays for such compensation. The Trustee who is an “interested person” (the “Non-Independent Trustee”) of the Trust does not receive any Trustees’ fees.

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

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

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

Note 10. Indemnifications

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

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Fees and Expenses

As a shareholder of a Fund of the PowerShares Exchange-Traded Fund Trust II, 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, litigation expenses and other extraordinary expenses (including acquired fund fees and expenses, if any). 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 (or shorter) period ended April 30, 2014.

In addition to the fees and expenses which the PowerShares KBW High Dividend Yield Financial 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 you bear indirectly are included in the Portfolio’s total returns.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

	Beginning Account Value November 1, 2013		Ending Account Value April 30, 2014		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month  Period(1)
PowerShares KBW Bank Portfolio (KBWB)
Actual	$	1,000.00	$	1,073.82		0.35	%	$	1.80
Hypothetical (5% return before expenses)		1,000.00		1,023.06		0.35			1.76
PowerShares KBW Capital Markets Portfolio (KBWC)
Actual		1,000.00		1,061.89		0.35			1.79
Hypothetical (5% return before expenses)		1,000.00		1,023.06		0.35			1.76
PowerShares KBW High Dividend Yield Financial Portfolio (KBWD)
Actual		1,000.00		1,041.02		0.35			1.77
Hypothetical (5% return before expenses)		1,000.00		1,023.06		0.35			1.76
PowerShares KBW Insurance Portfolio (KBWI)
Actual		1,000.00		1,058.83		0.36			1.84
Hypothetical (5% return before expenses)		1,000.00		1,023.01		0.36			1.81

37

Fees and Expenses (continued)

	Beginning Account Value November 1, 2013		Ending Account Value April 30, 2014		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month  Period(1)
PowerShares KBW Premium Yield Equity REIT Portfolio (KBWY)
Actual	$	1,000.00	$	1,046.44		0.35	%	$	1.78
Hypothetical (5% return before expenses)		1,000.00		1,023.06		0.35			1.76
PowerShares KBW Property & Casualty Insurance Portfolio (KBWP)
Actual		1,000.00		1,025.13		0.35			1.76
Hypothetical (5% return before expenses)		1,000.00		1,023.06		0.35			1.76
PowerShares KBW Regional Banking Portfolio (KBWR)
Actual		1,000.00		1,008.57		0.35			1.74
Hypothetical (5% return before expenses)		1,000.00		1,023.06		0.35			1.76
PowerShares NYSE Century Portfolio (NYCC)(2)
Actual		1,000.00		1,029.50		0.50			1.50
Hypothetical (5% return before expenses)		1,000.00		1,022.32		0.50			2.51

⁽¹⁾  Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six-month period ended April 30, 2014. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 181/365.

⁽²⁾  Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the period January 13, 2014 (Commencement of Investment Operations) through April 30, 2014. Actual expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 108/365. Hypothetical expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 181/365.

38

Board Considerations Regarding Continuation of Investment Advisory

Agreement and Sub-Advisory Agreement

At a meeting held on April 17, 2014, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust II (the “Trust”), including the Independent Trustees, approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the “Adviser”) and the Trust for the following 58 series (each, a “Fund” and collectively, the “Funds”):

PowerShares 1-30 Laddered Treasury Portfolio

PowerShares Aggregate Bond Portfolio

PowerShares Build America Bond Portfolio

PowerShares CEF Income Composite Portfolio

PowerShares Chinese Yuan Dim Sum Bond Portfolio

PowerShares DWA Developed Markets Momentum Portfolio

PowerShares DWA Emerging Markets Momentum Portfolio

PowerShares DWA SmallCap Momentum Portfolio

PowerShares Emerging Markets Infrastructure Portfolio

PowerShares Emerging Markets Sovereign Debt Portfolio

PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio

PowerShares FTSE RAFI Emerging Markets Portfolio

PowerShares Fundamental Emerging Markets Local Debt Portfolio

PowerShares Fundamental High Yield^® Corporate Bond Portfolio

PowerShares Fundamental Investment Grade Corporate Bond Portfolio

PowerShares Global Agriculture Portfolio

PowerShares Global Clean Energy Portfolio

PowerShares Global Gold and Precious Metals Portfolio

PowerShares Global Short Term High Yield Bond Portfolio

PowerShares Global Water Portfolio

PowerShares Insured California Municipal Bond Portfolio

PowerShares Insured National Municipal Bond Portfolio

PowerShares Insured New York Municipal Bond Portfolio

PowerShares International BuyBack Achievers^TM Portfolio*

PowerShares International Corporate Bond Portfolio

PowerShares KBW Bank Portfolio

PowerShares KBW Capital Markets Portfolio

PowerShares KBW High Dividend Yield Financial Portfolio

PowerShares KBW Insurance Portfolio

PowerShares KBW Premium Yield Equity REIT Portfolio

PowerShares KBW Property & Casualty Insurance Portfolio

PowerShares KBW Regional Banking Portfolio

PowerShares NYSE Century Portfolio*

PowerShares Preferred Portfolio

PowerShares S&P 500^® High Beta Portfolio

PowerShares S&P 500^® High Dividend Portfolio

PowerShares S&P 500^® High Momentum Portfolio

PowerShares S&P 500^® Low Volatility Portfolio

PowerShares S&P Emerging Markets High Beta Portfolio

PowerShares S&P Emerging Markets Low Volatility Portfolio

PowerShares S&P International Developed High Beta Portfolio

PowerShares S&P International Developed High Quality Portfolio

PowerShares S&P International Developed Low Volatility Portfolio

PowerShares S&P MidCap Low Volatility Portfolio

PowerShares S&P SmallCap Consumer Discretionary Portfolio

PowerShares S&P SmallCap Consumer Staples Portfolio

PowerShares S&P SmallCap Energy Portfolio

PowerShares S&P SmallCap Financials Portfolio

PowerShares S&P SmallCap Health Care Portfolio

PowerShares S&P SmallCap Industrials Portfolio

PowerShares S&P SmallCap Information Technology Portfolio

PowerShares S&P SmallCap Low Volatility Portfolio

PowerShares S&P SmallCap Materials Portfolio

PowerShares S&P SmallCap Utilities Portfolio

PowerShares Senior Loan Portfolio

PowerShares VRDO Tax-Free Weekly Portfolio

* The Trustees previously approved the initial Investment Advisory Agreement at a meeting held on December 17, 2013.

Also at the April 17, 2014 meeting, the Board of Trustees of the Trust, including the Independent Trustees, approved the continuation of the Investment Sub-Advisory Agreement between the Adviser and the following eight affiliated sub-advisers for PowerShares Senior Loan Portfolio (the “Sub-Advisory Agreement”): Invesco Advisers, Inc.; Invesco Asset Management Deutschland, GmbH; Invesco Asset Management Limited; Invesco Asset Management (Japan) Limited; Invesco Australia Limited; Invesco Hong Kong Limited; Invesco Senior Secured Management, Inc.; and Invesco Canada Ltd. (each, a “Sub-Adviser” and collectively, the “Sub-Advisers”).

The Trustees reviewed information from the Adviser describing: (i) the nature, extent and quality of services provided, (ii) the investment performance of the Funds and the Adviser, (iii) the costs of services provided and estimated profits realized by the Adviser, (iv) the extent to which economies of scale are realized as a Fund grows, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered to and amounts paid by other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with each Fund. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board’s analysis.

39

Board Considerations Regarding Continuation of Investment Advisory

Agreement and Sub-Advisory Agreement (continued)

Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser’s services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser’s current organization and staffing, including operational support provided by the Adviser’s parent organization, Invesco Ltd., and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser’s execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds (other than PowerShares Aggregate Bond Portfolio and PowerShares S&P 500^® High Momentum Portfolio, which Funds had not commenced operations as of April 17, 2014), their underlying indexes and their primary benchmarks for the one-year, three-year, five-year and since-inception periods ended December 31, 2013, as applicable, including reports for each of those periods on the correlation and tracking error between each Fund’s performance and the performance of its underlying index, as well as the Adviser’s analysis of the tracking error between each Fund and its underlying index. In reviewing the tracking error report, the Trustees considered information provided by Ibbotson Associates, a consultant to the Independent Trustees, with respect to general expected tracking error ranges and various explanations for any tracking error. The Trustees noted that for each applicable period, the correlation for each Fund, other than the five-year period for PowerShares Fundamental High Yield Corporate Bond Portfolio, the since-inception period for PowerShares Global Short Term High Yield Bond Portfolio, the one- and three-year periods for PowerShares Insured New York Municipal Bond Portfolio and the one-, three- and five-year periods for PowerShares VRDO Tax-Free Weekly Portfolio, was within the targeted range set forth in the Trust’s registration statement. The Trustees reviewed the reasons provided by the Adviser for PowerShares Global Short Term High Yield Bond Portfolio’s, PowerShares Insured New York Municipal Bond Portfolio’s, PowerShares Fundamental High Yield Corporate Bond Portfolio’s and PowerShares VRDO Tax-Free Weekly Portfolio’s level of correlation to its underlying index, as well as the Adviser’s expectations for such Fund’s correlation going forward. The Trustees noted that for each applicable period, the tracking error for each Fund was within the targeted range set forth in the Trust’s registration statement and concluded that each Fund’s correlation to its underlying index and the tracking error for each Fund were within an acceptable range given that Fund’s particular circumstances.

The Trustees also considered the services provided by the Adviser in its oversight of the Funds’ administrator, custodian and transfer agent. They noted the significant amount of time, effort and resources that had been devoted to this oversight function.

Based on their review, the Trustees concluded that the nature, extent and quality of services provided by the Adviser to the Funds under the Investment Advisory Agreement were appropriate and reasonable.

Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser on each Fund’s net expense ratio and unitary advisory fee, as compared to information compiled by the Adviser from Lipper Inc. databases on the net expense ratios of comparable exchange-traded funds (“ETFs”), open-end (non-ETF) index funds and open-end actively-managed funds. The Trustees noted that the annual advisory fee charged to each Fund, as set forth below, is a unitary fee and that the Adviser pays all other operating expenses of each Fund, including the fees payable to the Sub-Advisers for PowerShares Senior Loan Portfolio, except that each Fund pays its brokerage expenses, taxes, interest (including for PowerShares Senior Loan Portfolio, interest expenses associated with its line of credit), litigation expenses and other extraordinary expenses.

— 0.22%: PowerShares Fundamental Investment Grade Corporate Bond Portfolio

— 0.25%: PowerShares 1-30 Laddered Treasury Portfolio, PowerShares Aggregate Bond Portfolio, PowerShares S&P 500^® High Beta Portfolio, PowerShares S&P 500^® High Momentum Portfolio, PowerShares S&P 500^® Low Volatility Portfolio, PowerShares S&P MidCap Low Volatility Portfolio, PowerShares S&P SmallCap Low Volatility Portfolio, PowerShares VRDO Tax-Free Weekly Portfolio

— 0.28%: PowerShares Build America Bond Portfolio, PowerShares Insured California Municipal Bond Portfolio, PowerShares Insured National Municipal Bond Portfolio, PowerShares Insured New York Municipal Bond Portfolio

— 0.29%: PowerShares S&P SmallCap Consumer Discretionary, PowerShares S&P SmallCap Consumer Staples Portfolio, PowerShares S&P SmallCap Energy Portfolio, PowerShares S&P SmallCap Financials Portfolio, PowerShares S&P SmallCap Health Care Portfolio, PowerShares S&P SmallCap Industrials Portfolio, PowerShares S&P SmallCap Information Technology Portfolio, PowerShares S&P SmallCap Materials Portfolio, PowerShares S&P SmallCap Utilities Portfolio

— 0.30%: PowerShares S&P 500^® High Dividend Portfolio

— 0.35%: PowerShares Global Short Term High Yield Bond Portfolio, PowerShares KBW Bank Portfolio, PowerShares KBW Capital Markets Portfolio, PowerShares KBW High Dividend Yield Financial Portfolio, PowerShares KBW Insurance Portfolio, PowerShares KBW Premium Yield Equity REIT Portfolio, PowerShares KBW Property & Casualty Insurance Portfolio, PowerShares KBW Regional Banking Portfolio, PowerShares S&P International Developed High Beta Portfolio, PowerShares S&P International Developed Low Volatility Portfolio

40

Board Considerations Regarding Continuation of Investment Advisory

Agreement and Sub-Advisory Agreement (continued)

— 0.45%: PowerShares Chinese Yuan Dim Sum Bond Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio, PowerShares S&P Emerging Markets High Beta Portfolio, PowerShares S&P Emerging Markets Low Volatility Portfolio, PowerShares S&P International Developed High Quality Portfolio

— 0.49%: PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio, PowerShares FTSE RAFI Emerging Markets Portfolio

— 0.50%: PowerShares CEF Income Composite Portfolio, PowerShares Emerging Markets Sovereign Debt Portfolio, PowerShares Fundamental Emerging Markets Local Debt Portfolio, PowerShares Fundamental High Yield^® Corporate Bond Portfolio, PowerShares International Corporate Bond Portfolio, PowerShares NYSE Century Portfolio, PowerShares Preferred Portfolio

— 0.55% PowerShares International BuyBack Achievers^TM Portfolio

— 0.60%: PowerShares DWA SmallCap Momentum Portfolio

— 0.65%: PowerShares Senior Loan Portfolio

— 0.75%: PowerShares Emerging Markets Infrastructure Portfolio, PowerShares Global Agriculture Portfolio, PowerShares Global Clean Energy Portfolio, PowerShares Global Gold and Precious Metals Portfolio, PowerShares Global Water Portfolio

— 0.80%: PowerShares DWA Developed Markets Momentum Portfolio

— 0.90%: PowerShares DWA Emerging Markets Momentum Portfolio

The Trustees noted that the Adviser represented that it does not serve as the investment adviser to any clients, other than other ETFs also overseen by the Trustees, with comparable investment strategies as the Funds, but that the Adviser provides sub-advisory services to clients with comparable investment strategies as certain of the Funds. The Trustees further noted the Adviser’s explanation with respect to the sub-advisory fees it receives for such services in comparison to the advisory fees charged to the Funds. The Trustees noted that each Fund’s advisory fee was:

— equal to or lower than the median net expense ratio of its ETF peer funds (except for the advisory fee of each of PowerShares 1-30 Laddered Treasury Portfolio, PowerShares Aggregate Bond Portfolio, PowerShares CEF Income Composite Portfolio, PowerShares DWA Emerging Markets Momentum Portfolio, PowerShares DWA SmallCap Momentum Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio, PowerShares Fundamental High Yield^® Corporate Bond Portfolio, PowerShares Fundamental Investment Grade Corporate Bond Portfolio PowerShares Global Agriculture Portfolio, PowerShares Global Clean Energy Portfolio, PowerShares Global Gold and Precious Metals Portfolio, PowerShares Global Water Portfolio, PowerShares Insured California Municipal Bond Portfolio, PowerShares Insured National Municipal Bond Portfolio, PowerShares Insured New York Municipal Bond Portfolio, PowerShares International BuyBack Achievers^TM Portfolio, PowerShares International Corporate Bond Portfolio, PowerShares NYSE Century Portfolio, PowerShares S&P International Developed Low Volatility Portfolio, PowerShares S&P International Developed High Beta Portfolio, PowerShares S&P International Developed High Quality Portfolio, PowerShares Senior Loan Portfolio and PowerShares VRDO Tax-Free Weekly Portfolio, which were higher than the median net expense ratio of its ETF peer funds); and

— equal to or lower than the median net expense ratio of its open-end index peer funds (except for the advisory fee of each of PowerShares 1-30 Laddered Treasury Portfolio, PowerShares Aggregate Bond Portfolio, PowerShares DWA Emerging Markets Momentum Portfolio, PowerShares DWA SmallCap Momentum Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio, PowerShares Fundamental Investment Grade Corporate Bond Portfolio, PowerShares KBW Premium Yield Equity REIT Portfolio and PowerShares S&P International Developed Low Volatility Portfolio, which was higher than the median net expense ratio of its open-end index peer funds; and there was no comparable data for PowerShares Build America Bond Portfolio, PowerShares Chinese Yuan Dim Sum Bond Portfolio, PowerShares DWA Developed Markets Momentum Portfolio, PowerShares Emerging Markets Infrastructure Portfolio, PowerShares Emerging Markets Sovereign Debt Portfolio, PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio, PowerShares Fundamental Emerging Markets Local Debt Portfolio, PowerShares Fundamental High Yield^® Corporate Bond Portfolio, PowerShares Global Agriculture Portfolio, PowerShares Global Clean Energy Portfolio, PowerShares Global Gold and Precious Metals Portfolio, PowerShares Global Short Term High Yield Bond Portfolio, PowerShares Global Water Portfolio, PowerShares Insured California Municipal Bond Portfolio, PowerShares Insured National Municipal Bond Portfolio, PowerShares Insured New York Municipal Bond Portfolio, PowerShares International Corporate Bond Portfolio, PowerShares KBW Bank Portfolio, PowerShares KBW Capital Markets Portfolio, PowerShares KBW High Dividend Yield Financial Portfolio, PowerShares KBW Insurance Portfolio, PowerShares KBW Property & Casualty Insurance Portfolio, PowerShares KBW Regional Banking Portfolio, PowerShares Preferred Portfolio, PowerShares S&P SmallCap Consumer Discretionary Portfolio, PowerShares S&P SmallCap Consumer Staples Portfolio, PowerShares S&P SmallCap Energy Portfolio, PowerShares S&P

41

Board Considerations Regarding Continuation of Investment Advisory

Agreement and Sub-Advisory Agreement (continued)

SmallCap Financials Portfolio, PowerShares S&P SmallCap Health Care Portfolio, PowerShares S&P SmallCap Industrials Portfolio, PowerShares S&P SmallCap Materials Portfolio, PowerShares Senior Loan Portfolio or PowerShares VRDO Tax-Free Weekly Portfolio); but

— lower than the median expense ratio of its open-end actively-managed peer funds.

The Trustees also considered that, during the period, certain Funds incurred other expenses excluded from those Funds’ unitary advisory fees, such that those Funds’ net expense ratios were in excess of the Funds’ unitary advisory fees. The Trustees noted the Adviser’s belief that such expenses were not expected to be incurred at that level going forward. The Trustees considered that the Adviser had agreed to waive a portion of its advisory fee, at least until February 28, 2016, for PowerShares S&P Emerging Markets High Beta Portfolio, PowerShares S&P Emerging Markets Low Volatility Portfolio, PowerShares S&P International Developed High Beta Portfolio and PowerShares S&P International Developed Low Volatility Portfolio. The Trustees determined that each Fund’s advisory fee was reasonable because of the complexity of the indexes, the distinguishing factors of the Funds and the administrative, operational and management oversight costs for the Adviser. The Trustees also noted that a portion of each Fund’s advisory fee was attributable to a license fee payable out of the unitary fee charged to that Fund. The Board concluded that the unitary advisory fee charged to each Fund was reasonable and appropriate in light of the services provided.

In conjunction with their review of the unitary advisory fee, the Trustees also considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement. The Trustees reviewed information provided by the Adviser on its profitability, as well as any profits or losses realized by the Adviser from its relationship to each Fund. The Trustees concluded that the estimated profitability to the Adviser of the advisory services provided to any of the Funds was not unreasonable.

Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. The Trustees reviewed the information provided by the Adviser as to the extent to which economies of scale are realized as each Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees reviewed each Fund’s asset size and expense ratio. The Trustees noted that any reduction in fixed costs associated with the management of the Funds would be enjoyed by the Adviser, but a unitary fee provides a level of certainty in expenses for the Funds. The Trustees considered whether the advisory fee rate for each Fund was reasonable in relation to the asset size of that Fund, and concluded that the flat advisory fee was reasonable and appropriate.

The Trustees noted that the Adviser had not identified any further benefits that it derived from its relationship with the Funds and had noted that it does not have any soft-dollar arrangements.

Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund.

Investment Sub-Advisory Agreement

As noted above, the Board of Trustees of the Trust, including the Independent Trustees, approved the continuation of the Sub-Advisory Agreement for the PowerShares Senior Loan Portfolio at a meeting held on April 17, 2014. The review process followed by the Board is described in detail above. In connection with the review of the Sub-Advisory Agreement, the Board considered the factors described below, among others.

Nature, Extent and Quality of Services. The Trustees considered the nature, extent and quality of services provided under the Sub-Advisory Agreement. The Board also considered the benefits described by the Adviser in having multiple affiliated Sub-Advisers. The Board reviewed the qualifications and background of each Sub-Adviser, the investment approach of the Sub-Adviser whose investment personnel manage the PowerShares Senior Loan Portfolio’s assets, the experience and skills of the investment personnel responsible for the day-to-day management of the Fund, and the resources made available to such personnel.

Based on their review, the Trustees concluded that the nature, extent and quality of services provided by the Sub-Advisers to PowerShares Senior Loan Portfolio under the Sub-Advisory Agreement were appropriate and reasonable.

Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser and the Sub-Advisers on the sub-advisory fee rate under the Sub-Advisory Agreement. The Trustees noted that the sub-advisory fee charged by the Sub-Advisers under the Sub-Advisory Agreement is consistent with the compensation structure used throughout Invesco when Invesco’s affiliates provide sub-advisory services for funds managed by other Invesco affiliates. The Board considered how the sub-advisory fees relate to the overall advisory fee for the PowerShares Senior Loan Portfolio and noted that the Adviser compensates the Sub-Advisers from its fee. The Trustees also considered information provided by Invesco Senior Secured Management, Inc. on the revenues it

42

Board Considerations Regarding Continuation of Investment Advisory

Agreement and Sub-Advisory Agreement (continued)

receives under the Sub-Advisory Agreement. The Trustees concluded that the sub-advisory fees were reasonable in light of the sub-advisory services provided to the PowerShares Senior Loan Portfolio.

Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. As part of their review of the Investment Advisory Agreement for the PowerShares Senior Loan Portfolio, the Trustees considered the extent to which economies of scale are realized as the PowerShares Senior Loan Portfolio grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees considered whether the sub-advisory fee rate for PowerShares Senior Loan Portfolio was reasonable in relation to the asset size of the Fund, and concluded that the flat sub-advisory fee was reasonable and appropriate.

The Trustees noted that the Sub-Advisers had not identified any further benefits that they derived from their relationships with the PowerShares Senior Loan Portfolio.

Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Sub-Advisory Agreement for the PowerShares Senior Loan Portfolio. No single factor was determinative in the Board’s analysis.

43

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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 (the “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 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 Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Form N-Qs will be available on the Commission’s website at www.sec.gov. The Trust’s Form N-Qs may also be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. 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 assets 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.

©2014 Invesco PowerShares Capital Management LLC			P-KBW-SAR-1
3500 Lacey Road, Suite 700 Downers Grove, IL 60515
invescopowershares.com    800.983.0903		@PowerShares

April 30, 2014

2014 Semi-Annual Report to Shareholders

BKLN PowerShares Senior Loan Portfolio

Table of Contents

Schedule of Investments	3
Statement of Assets and Liabilities	9
Statement of Operations	10
Statement of Changes in Net Assets	11
Statement of Cash Flows	12
Financial Highlights	13
Notes to Financial Statements	14
Fees and Expenses	21
Board Considerations Regarding Continuation of Investment Advisory Agreement and Sub-Advisory Agreement	22

2

Portfolio Composition

PowerShares Senior Loan Portfolio (BKLN)

Credit Quality Rating Breakdown (% of the Fund's Net Assets) as of April 30, 2014 (Unaudited)
Baa2	0.8
Baa3	5.0
Ba1	3.1
Ba2	15.1
Ba3	24.5
B1	25.0
B2	10.8
B3	2.5
Caa1	3.8
Not Rated	3.5
Money Market Fund Plus Other Assets Less Liabilities	5.9

Schedule of Investments

PowerShares Senior Loan Portfolio (BKLN)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Senior Floating Rate Loans—85.1%(a)(b)
		Advertising—0.8%
$	57,337,911	Getty Images, Inc., Term Loan		4.750	%		10/18/19	$	54,998,811
		Aerospace/Defense—1.9%
	53,185,086	Accudyne Industries LLC, Term Loan (Luxembourg)		4.000			12/13/19		53,111,957
	87,523,512	TransDigm, Inc., Term Loan C		3.750			02/28/20		87,215,429
									140,327,386
		Airlines—0.9%
	66,745,072	American Airlines Inc., Term Loan B		3.750			06/27/19		66,714,036
		Auto Manufacturers—1.3%
	98,701,791	Chrysler Group LLC, Term Loan (Italy)		3.500			05/24/17		98,728,440
		Chemicals—3.1%
	74,133,750	DuPont Performance Coatings, Inc., Term Loan B		4.000			02/01/20		74,059,987
	64,398,985	Ineos Holdings Ltd., Term Loan (Switzerland)		3.750			05/04/18		63,931,127
	89,071,153	Univar, Inc., Term Loan B		5.000			06/30/17		89,057,347
									227,048,461
		Coal—0.8%
	61,156,852	Arch Coal, Inc., Term Loan		6.250			05/16/18		59,643,220
		Commercial Services—2.3%
	22,895,182	Ceridian Corp., Term Loan		4.402			05/09/17		22,938,110
	63,480,460	Laureate Education, Inc., Extended Term Loan		5.000			06/15/18		62,865,652
	33,530,617	Pharmaceutical Product Development, Inc., Term Loan		4.000			12/05/18		33,569,009
	63,137,076	Weight Watchers International, Inc., Term Loan B2 (Luxembourg)		4.000			04/02/20		49,606,485
									168,979,256

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

3

PowerShares Senior Loan Portfolio (BKLN) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Senior Floating Rate Loans (continued)
		Computers—1.3%
$	39,602,210	CDW LLC, Term Loan		3.250	%		04/29/20	$	39,230,939
		SunGard Data Systems, Inc.
	1,105,423	Term Loan C		3.903			02/28/17		1,107,147
	56,334,473	Term Loan E		4.000			03/08/20		56,563,473
									96,901,559
		Diversified Financial Services—1.7%
	85,303,393	Nuveen Investments, Inc., Term Loan B		4.152			05/13/17		85,416,847
	42,299,976	Walter Investment Management Corp., Term Loan B		4.750			12/18/20		42,031,371
									127,448,218
		Electric—3.4%
	67,058,189	NRG Energy, Inc., Term Loan		2.750			07/01/18		66,471,430
		Texas Competitive Electric Holdings Co. LLC(c)(d)
	123,553,410	Extended Term Loan		4.737			10/10/17		93,402,671
	118,447,680	Term Loan		3.737			10/10/14		89,394,833
									249,268,934
		Entertainment—2.6%
	75,535,751	Alpha Topco Ltd., Term Loan B (Luxembourg)		4.500			04/30/19		75,819,010
	79,620,450	Scientific Games International, Inc., Term Loan		4.250			10/18/20		79,537,645
	33,992,809	SeaWorld Parks & Entertainment, Inc., Term Loan B2		3.000			05/14/20		33,363,942
									188,720,597
		Environmental Control—0.8%
	60,389,070	ADS Waste Holdings, Inc., Term Loan B2		3.750			10/09/19		60,065,989
		Food—7.0%
		ARAMARK Corp.
	47,007	Extended LOC 3		3.731			07/26/16		46,831
	71,596,360	Term Loan F		3.250			02/24/21		71,014,639
	57,392,992	Big Heart Pet Brands, Term Loan		3.500			03/09/20		57,058,391
		H.J. Heinz Co.
	94,701,467	Term Loan B1		3.250			06/07/19		94,829,787
	133,092,136	Term Loan B2		3.500			06/05/20		133,500,064
	51,006,702	Pinnacle Foods Finance LLC, Term Loan G		3.250			04/29/20		50,631,293
	40,324,124	SUPERVALU, Inc., Term Loan		4.500			03/21/19		40,264,242
	65,252,235	US Foods, Inc., Term Loan		4.500			03/31/19		65,387,960
									512,733,207
		Healthcare-Products—3.0%
	99,013,488	Biomet, Inc., Term Loan B2		3.660			07/25/17		99,230,328
	57,580,676	CareStream Health, Inc., Term Loan (Canada)		5.000			06/07/19		57,954,950
	64,825,540	Kinetic Concepts, Inc., Term Loan E1 (United Kingdom)		4.000			05/04/18		64,882,262
									222,067,540
		Healthcare-Services—4.4%
		CHS/Community Health Systems, Inc.
	43,663,469	Term Loan D		4.250			01/27/21		43,895,322
	5,903,008	Term Loan E		3.469			01/25/17		5,907,937
		DaVita, Inc.
	32,066,826	Term Loan B		4.500			10/20/16		32,213,532
	66,094,461	Term Loan B2		4.000			11/01/19		66,424,933
		HCA, Inc.
	67,075,469	Term Loan B4		2.984			05/01/18		67,096,598
	39,601,000	Term Loan B5		2.900			03/31/17		39,614,662
	64,407,317	MPH Acquisition Holdings LLC, Term Loan		4.000			03/31/21		64,206,045
									319,359,029

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

4

PowerShares Senior Loan Portfolio (BKLN) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Senior Floating Rate Loans (continued)
		Household Products/Wares—1.7%
		Dell International LLC
$	93,537,481	Term Loan B		4.500	%		04/29/20	$	93,473,408
	15,454,397	Term Loan C		3.750			10/29/18		15,428,356
	14,088,160	Reynolds Group Holdings, Inc., Term Loan (New Zealand)		4.000			12/01/18		14,110,208
									123,011,972
		Insurance—2.7%
	131,743,085	Asurion Corp., Term Loan B1		5.000			05/24/19		132,054,657
	63,714,950	HUB International Ltd., Term Loan		4.250			10/02/20		63,732,153
									195,786,810
		Internet—0.8%
	59,644,558	Zayo Group LLC, Term Loan		4.000			07/02/19		59,588,791
		Investment Companies—0.8%
	56,664,234	RPI Finance Trust, Term Loan B2 (Switzerland)		3.250			05/09/18		56,788,329
		Leisure Time—1.4%
	59,316,860	Sabre, Inc., Term Loan B		4.250			02/19/19		59,309,446
	44,850,601	Travelport LLC, Term Loan		6.250			06/26/19		45,898,984
									105,208,430
		Lodging—7.2%
	87,695,034	Caesars Entertainment Resort Properties LLC, Term Loan B		7.000			10/11/20		88,133,509
	60,598,125	CityCenter Holdings LLC, Term Loan B		5.000			10/16/20		60,995,952
	80,717,906	Harrah’s Operating Co.,Inc., Term Loan B6		5.402			01/28/18		75,572,139
	135,463,877	Hilton Worldwide Finance LLC, Term Loan		3.500			10/26/20		135,115,735
	67,975,000	Las Vegas Sands LLC, Term Loan B		3.250			12/19/20		67,692,904
	58,699,937	MGM Resorts International, Term Loan B		3.500			12/20/19		58,424,928
	41,044,897	Station Casinos LLC, Term Loan B		4.250			03/02/20		41,121,856
									527,057,023
		Machinery-Diversified—1.7%
	65,684,962	Gardner Denver, Inc., Term Loan		4.250			07/30/20		65,654,090
	60,610,541	Rexnord LLC, Term Loan B		4.000			08/21/20		60,459,015
									126,113,105
		Media—8.3%
	79,469,321	Cequel Communications LLC, Term Loan		3.500			02/14/19		79,275,019
	17,904,712	Charter Communications Operating LLC, Term Loan E		3.000			07/01/20		17,669,802
		Clear Channel Communications, Inc.
	84,958,020	Term Loan B		3.800			01/29/16		84,360,765
	46,000,000	Term Loan D		6.900			01/30/19		45,710,430
	78,462,362	CSC Holdings LLC, Term Loan B		2.650			04/17/20		77,471,774
	119,725,000	Tribune Company, Term Loan		4.000			12/27/20		119,725,000
	44,523,769	TWCC Holding Corp., Term Loan		3.500			02/13/17		44,126,394
	34,966,996	Univision Communications Inc., Term Loan		4.000			03/01/20		34,883,250
	65,000,000	Virgin Media Investment Holdings Ltd., Term Loan B (United Kingdom)		3.500			06/07/20		64,631,450
	41,731,130	WideOpenWest Finance LLC, Term Loan B		4.750			04/01/19		41,861,749
									609,715,633
		Mining—2.7%
	132,985,286	Fortescue Metals Group Ltd., Term Loan (Australia)		4.250			06/30/19		133,143,538
	62,981,403	Novelis, Inc., Term Loan (India)		3.750			03/10/17		62,946,764
									196,090,302
		Oil&Gas—1.0%
	69,504,814	Fieldwood Energy LLC, Term Loan		8.375			09/30/20		71,915,936
		Pharmaceuticals—3.2%
	30,000,000	Grifols Worldwide Operations USA, Inc., Term Loan B (Spain)		3.154			02/27/21		29,914,800
	38,016,964	NBTY, Inc., Term Loan B2		3.500			10/01/17		38,092,237

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

5

PowerShares Senior Loan Portfolio (BKLN) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Senior Floating Rate Loans (continued)
		Pharmaceuticals (continued)
$	66,598,017	Quintiles Transnational Corp., Term Loan B3		3.750	%		06/08/18	$	66,584,364
	101,709,583	Valeant Pharmaceuticals International, Inc., Series E-1 Term Loan B		3.750			08/05/20		101,909,443
									236,500,844
		Real Estate—0.8%
		Realogy Corp.
	1,412,750	Extended Synthetic LOC		4.402			10/10/16		1,410,984
	58,780,452	Term Loan B		3.750			03/05/20		58,751,062
									60,162,046
		REITS—1.1%
	83,544,685	Crown Castle Operating Co., Term Loan B2		3.250			01/31/21		83,349,190
		Retail—5.0%
	35,900,000	BJ’s Wholesale Club Inc., Term Loan		4.500			09/26/19		35,912,924
	43,609,690	Dunkin’ Brands, Inc., Term Loan B4		3.250			02/07/21		43,273,677
	61,981,810	Hudson’s Bay Co., Term Loan (Canada)		4.750			11/04/20		62,659,891
	73,798,912	J.C. Penney Corp., Inc., Term Loan		6.000			05/22/18		73,342,465
	48,529,850	Michaels Stores, Inc., Term Loan B		3.750			01/28/20		48,583,718
	100,722,625	Neiman Marcus Group, Inc., Term Loan		4.250			10/25/20		100,584,635
									364,357,310
		Semiconductors—1.1%
	84,072,817	Freescale Semiconductor, Inc., Term Loan B4		4.250			02/28/20		84,151,845
		Software—5.1%
	71,647,462	Activision Blizzard Inc., Term Loan		3.250			10/12/20		71,714,811
	97,256,250	BMC Software Finance, Inc., Term Loan		5.000			09/10/20		97,053,471
		First Data Corp.
	28,703,323	Extended Term Loan		4.152			03/24/21		28,674,620
	36,750,000	Term Loan		4.152			03/23/18		36,757,717
	54,083,889	IMS Health Incorporated, Term Loan B		3.500			03/17/21		53,952,464
	87,072,992	Infor US, Inc., Term Loan B5		3.750			06/03/20		86,542,717
	720,044	RP Crown Parent LLC, Term Loan		6.000			12/21/18		719,659
									375,415,459
		Telecommunications—5.2%
	60,625,584	Alcatel-Lucent USA, Inc., Term Loan (France)		4.500			01/30/19		60,760,779
	36,984,983	Avaya, Inc., Term Loan B3		4.734			10/26/17		35,806,272
	105,874,110	Intelsat Jackson Holdings SA, Term Loan B2 (United Kingdom)		3.750			06/30/19		106,046,156
	59,000,000	Level 3 Communications, Inc., Term Loan B		4.000			01/15/20		59,202,665
	51,252,851	Telesat Canada, Term Loan B2		3.500			03/28/19		51,244,906
	65,994,726	West Corp., Term Loan B10		3.250			06/30/18		65,410,342
									378,471,120
		Total Senior Floating Rate Loans (Cost $6,307,614,173)							6,246,688,828
		Corporate Bonds—8.7%
		Chemicals—0.3%
	20,000,000	Ineos Holdings Ltd. (Switzerland)(e)		7.500			05/01/20		21,950,000
		Diversified Financial Services—0.5%
	38,500,000	Dell International LLC(e)		5.625			10/15/20		39,655,000
		Electric—0.7%
	62,000	Calpine Corp.(e)		7.875			01/15/23		69,750
	63,951,000	Texas Competitive Electric Holdings Co. LLC(c)(d)(e)		11.500			10/01/20		51,480,555
									51,550,305

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

6

PowerShares Senior Loan Portfolio (BKLN) (continued)

April 30, 2014

(Unaudited)

Principal Amount			Interest Rate			Maturity Date		Value
		Corporate Bonds (continued)
		Healthcare-Services—1.6%
$	74,151,000	CHS/Community Health Systems, Inc.		5.125	%		08/15/18	$	78,136,616
	5,000,000	CHS/Community Health Systems, Inc.(e)		5.125			08/01/21		5,125,000
	8,000,000	HCA, Inc.		3.750			03/15/19		8,080,000
	1,111,000	HCA, Inc.		6.500			02/15/20		1,241,543
	27,500,000	HCA, Inc.		4.750			05/01/23		27,087,500
									119,670,659
		Household Products/Wares—0.9%
	1,500,000	Reynolds Group Holdings, Inc. (New Zealand)		7.125			04/15/19		1,590,000
	3,000,000	Reynolds Group Holdings, Inc. (New Zealand)		7.875			08/15/19		3,307,500
	57,500,000	Reynolds Group Holdings, Inc. (New Zealand)		5.750			10/15/20		60,087,500
									64,985,000
		Leisure Time—0.1%
	4,000,000	Sabre, Inc.(e)		8.500			05/15/19		4,425,000
		Media—2.0%
	70,174,000	Clear Channel Communications, Inc.		9.000			12/15/19		75,086,180
	43,777,000	Univision Communications, Inc.(e)		6.875			05/15/19		46,896,111
	11,366,000	Univision Communications, Inc.(e)		6.750			09/15/22		12,559,430
	10,000,000	Univision Communications, Inc.(e)		5.125			05/15/23		10,250,000
									144,791,721
		Semiconductors—0.1%
	5,000,000	Freescale Semiconductor, Inc.(e)		5.000			05/15/21		5,075,000
		Software—1.7%
	11,940,000	First Data Corp.(e)		7.375			06/15/19		12,835,500
	101,551,000	First Data Corp.(e)		6.750			11/01/20		108,913,448
									121,748,948
		Telecommunications—0.8%
	34,600,000	Avaya, Inc.(e)		7.000			04/01/19		34,600,000
	25,525,000	Virgin Media Investment Holdings Ltd. (United Kingdom)		6.500			01/15/18		26,434,966
									61,034,966
		Total Corporate Bonds (Cost $615,606,887)							634,886,599
Number of Shares
		Common Stocks—0.3%
		Publishing-Books—0.3%
	650,610	Cengage Learning Acquisitions, Inc.(f) (Cost $21,144,833)							23,503,295
		Money Market Fund—4.5%
	332,911,492	Invesco Premier Portfolio–Institutional Class(g) (Cost $332,911,492)							332,911,492
		Total Investments (Cost $7,277,277,385)—98.6%							7,237,990,214
		Other assets less liabilities—1.4%							99,995,362
		Net Assets—100.0%						$	7,337,985,576

Investment Abbreviations:

LOC—Line of Credit

REIT—Real Estate Investment Trust

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

7

PowerShares Senior Loan Portfolio (BKLN) (continued)

April 30, 2014

(Unaudited)

Notes to Schedule of Investments:

^(a)  Senior secured floating rate loans often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with any accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. However, it is anticipated that the senior secured floating rate loans will have an expected average life of three to five years.

^(b)  Senior secured corporate loans and senior secured debt securities are, at present, not readily marketable, not registered under the Securities Act of 1933 (the “1933 Act”), as amended and may be subject to contractual and legal restrictions on sale. Senior secured corporate loans and senior secured debt securities in the Fund’s portfolio generally have variable rates which adjust to a base, such as the London Inter-Bank Offered Rate (“LIBOR”), on set dates, typically every 30 days, but not greater than one year, and/or have interest rates that float at margin above a widely recognized base lending rate such as the Prime Rate of a designated U.S. bank.

^(c)  Defaulted security. Currently, the issuer is partially or fully in default with respect to interest payments. The aggregate value of these securities at April 30, 2014 was $234,278,059, which represented 3.19% of the Fund’s net assets.

^(d)  The borrower has filed for protection in federal bankruptcy court.

^(e)  Security purchased or received in a transaction exempt from registration under the 1933 Act, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at April 30, 2014 was $353,834,794 which represented 4.82% of the Fund’s Net Assets.

^(f)  Non-income producing security.

^(g)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

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

8

Statement of Assets and Liabilities

April 30, 2014

(Unaudited)

	PowerShares Senior Loan Portfolio (BKLN)
Assets:
Unaffiliated investments, at value	$	6,905,078,722
Affiliated investments, at value		332,911,492
Total investments, at value		7,237,990,214
Cash		238,647,562
Receivables:
Interest		35,441,768
Investments sold		9,943,714
Shares sold		105,515
Total Assets		7,522,128,773
Liabilities:
Payables:
Investments purchased		123,368,670
Shares repurchased		56,864,257
Accrued unitary management fees		3,910,270
Total Liabilities		184,143,197
Net Assets	$	7,337,985,576
Net Assets Consist of:
Shares of beneficial interest	$	7,383,291,446
Undistributed net investment income (loss)		(1,844,670	)
Undistributed net realized gain (loss)		(4,174,029	)
Net unrealized appreciation (depreciation)		(39,287,171	)
Net Assets	$	7,337,985,576
Shares outstanding (unlimited amount authorized, $0.01 par value)		296,200,100
Net asset value	$	24.77
Market price	$	24.74
Unaffiliated investments, at cost	$	6,944,365,893
Affiliated investments, at cost	$	332,911,492
Total investments, at cost	$	7,277,277,385

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

9

Statement of Operations

For the six months ended April 30, 2014

(Unaudited)

	PowerShares Senior Loan Portfolio (BKLN)
Investment Income:
Interest income	$	156,423,760
Unaffiliated dividend income		15,208
Affiliated dividend income		41,740
Total Income		156,480,708
Expenses:
Unitary management fees		21,829,895
Waivers		(306,880	)
Net Expenses		21,523,015
Net Investment Income		134,957,693
Realized and Unrealized Gain (Loss):
Net realized gain from investment securities (includes net gains (losses) from securities sold to affiliates of $(132,148))		1,815,687
Net change in unrealized appreciation (depreciation) on investment securities		(7,617,725	)
Net realized and unrealized gain (loss)		(5,802,038	)
Net increase in net assets resulting from operations	$	129,155,655

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

10

Statement of Changes in Net Assets

For the six months ended April 30, 2014 and the year ended October 31, 2013

(Unaudited)

	PowerShares Senior Loan Portfolio (BKLN)
	April 30, 2014			October 30, 2013
Operations:
Net investment income	$	134,957,693		$	153,101,512
Net realized gain (loss)		1,815,687			(2,958,788	)
Net change in unrealized appreciation (depreciation)		(7,617,725	)		(33,006,928	)
Net increase in net assets resulting from operations		129,155,655			117,135,796
Distributions to Shareholders from:
Net investment income		(136,802,363	)		(153,098,112	)
Return of capital		—			(3,301,068	)
Total distributions to shareholders		(136,802,363	)		(156,399,180	)
Shareholder Transactions:
Proceeds from shares sold		1,385,770,808			5,096,947,295
Value of shares repurchased		(106,269,237	)		(194,926,250	)
Transaction fees		1,419,821			6,141,810
Net increase in net assets resulting from shares transactions		1,280,921,392			4,908,162,855
Increase in Net Assets		1,273,274,684			4,868,899,471
Net Assets:
Beginning of period		6,064,710,892			1,195,811,421
End of period	$	7,337,985,576		$	6,064,710,892
Undistributed net investment income (loss) at end of period	$	(1,844,670	)	$	–
Changes in Shares Outstanding:
Shares sold		55,800,000			204,300,000
Shares repurchased		(4,300,000	)		(7,900,000	)
Shares outstanding, beginning of period		244,700,100			48,300,100
Shares outstanding, end of period		296,200,100			244,700,100

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

11

Statement of Cash Flows

For the six months ended April 30, 2014

(Unaudited)

	PowerShares Senior Loan Portfolio (BKLN)
Cash Provided by Operating Activities:
Net increase in net assets resulting from operations	$	129,155,655
Adjustments to Reconcile the Change in Net Assets from Operations to Net Cash Provided by (Used In) Operating Activities:
Purchases of investments		(2,666,704,131	)
Proceeds from disposition of investments sold		1,552,039,714
Amortization of premiums and accretion of discounts on investments		(12,590,245	)
Net cash paid for purchases, sales, and maturities of short-term investments		(5,686,117	)
Increase in interest receivable		(8,835,397	)
Increase in receivable for investments sold		3,851,012
Increase in payable for investments purchased		(198,271,618	)
Increase in payable for accrued expenses		692,868
Net realized gain (loss) on investments		(1,815,687	)
Net change in unrealized appreciation (depreciation) on investments		7,617,725
Net cash provided by (used in) operating activities		(1,200,546,221	)
Cash Provided by Financing Activities:
Proceeds from shares of beneficial interest sold		1,410,479,503
Disbursements for shares of beneficial interest repurchased		(49,404,980	)
Net proceeds from transaction fees		1,419,821
Distributions paid to shareholders		(136,802,363	)
Net cash provided by financing activities		1,225,691,981
Net increase in cash and cash equivalents		25,145,760
Cash and cash equivalents at beginning of period		546,413,294
Cash and cash equivalents at end of period	$	571,559,054

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

12

Financial Highlights

PowerShares Senior Loan Portfolio (BKLN)

	Six Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,						For the Period March 1,  2011(a) Through October 31, 2011
				2013			2012
Per Share Operating Performance:
Net asset value at beginning of period	$	24.78		$	24.76		$	24.05		$	25.00
Net investment income(b)		0.49			1.06			1.21			0.69
Net realized and unrealized gain (loss) on investments		(0.01	)		0.04			0.58			(1.05	)
Total from investment operations		0.48			1.10			1.79			(0.36	)
Distributions to shareholders from:
Net investment income		(0.50	)		(1.10	)		(1.22	)		(0.59	)
Return of capital		—			(0.02	)		(0.00	)(c)		—
Total distributions		(0.50	)		(1.12	)		(1.22	)		(0.59	)
Transaction fees(b)		0.01			0.04			0.14			—
Net asset value at end of period	$	24.77		$	24.78		$	24.76		$	24.05
Market price at end of period(d)	$	24.74		$	24.83		$	24.83		$	24.02
Net Asset Value Total Return(e)		1.99	%		4.70	%		8.26	%		(1.44	)%(f)
Market Price Total Return(e)		1.66	%		4.61	%		8.67	%		(1.57	)%(f)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	7,337,986		$	6,064,711		$	1,195,811		$	165,937
Ratio to average net assets of:
Expenses, after Waivers		0.64	%(g)		0.65	%(h)		0.65	%(h)		0.65	%(g)(h)
Expenses, prior to Waivers		0.65	%(g)		0.65	%(h)		0.67	%(h)		0.75	%(g)(h)
Expenses, including interest expenses		0.64	%(g)		0.65	%		0.65	%		0.65	%(g)
Net investment income, after Waivers and Interest Expenses		4.02	%(g)		4.30	%		5.00	%		4.30	%(g)
Portfolio turnover rate(i)		24	%		47	%		49	%		49	%

^(a)  Commencement of Investment Operations.

^(b)  Based on average shares outstanding.

^(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 the 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)  The net asset value total return from Fund Inception (March 3, 2011, the first day of trading on the Exchange) to October 31, 2011 was (1.16)%. The market price total return from Fund Inception to October 31, 2011 was (1.84)%.

^(g)  Annualized.

^(h)  In addition to the fees and expenses, which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment company expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the funds that the Fund invests in. The effects of the investment companies’ expenses are included in the Fund’s total return.

⁽ⁱ⁾  Portfolio turnover rate is not annualized 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.

13

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust II

April 30, 2014

(Unaudited)

Note 1. Organization

PowerShares Exchange-Traded Fund Trust II (the “Trust”) was organized as a Massachusetts business trust on October 10, 2006 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of April 30, 2014, the Trust offered fifty-seven portfolios. This report includes the following portfolio:

Full Name	Short Name
PowerShares Senior Loan Portfolio (BKLN)	“Senior Loan Portfolio”

The portfolio (the “Fund”) represents a separate series of the Trust. The shares of the Fund are referred to herein as “Shares” or “Fund’s Shares.” The Fund’s Shares are listed and traded on NYSE Arca, Inc.

The market prices of the Fund’s Shares may differ to some degree from the Fund’s net asset value (“NAV”). Unlike conventional mutual funds, the 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 in exchange for the deposit or delivery of cash. Except when aggregated in Creation Units by Authorized Participants, the Shares are not individually redeemable securities of the Fund.

The investment objective of the Fund is to seek investment results that generally correspond (before fees and expenses) to the price and yield of the S&P/LSTA U.S. Leveraged Loan 100 Index (the “Underlying 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 Fund monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

A. Security Valuation

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

Senior secured floating rate loans and senior secured floating rate debt securities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may reflect appropriate factors such as ratings, tranche type, industry, company performance, spread, individual trading characteristics, institution-size trading in similar groups of securities and other market data.

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 ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. 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.

14

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/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

The 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 of the Fund’s 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 Fund does not utilize an investing strategy that seeks returns in excess of its Underlying Index. Therefore, the Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its Underlying Index, even if that security generally is underperforming.

Fixed-Income Securities Risk. Fixed-income securities are subject to interest rate risk and credit risk. Interest rate risk refers to fluctuations in the value of a fixed-income security resulting from changes in the general level of interest rates. When the general level of interest rates goes up, the prices of most fixed-income securities go down. When the general level of interest rates goes down, the prices of most fixed-income securities go up. Fixed-income securities with longer maturities typically are more sensitive to changes in interest rates, making them more volatile than securities with shorter maturities. Credit risk refers to the possibility that the issuer of a security will be unable and/or unwilling to make timely interest payments and/or repay the principal on its debt. Debt instruments are subject to varying degrees of credit risk, which may be reflected in credit ratings. There is a possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

Non-Diversified Fund Risk. The Fund is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund. 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. The Fund’s return may not match the return of its Underlying Index for a number of reasons. For example, the 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. Because the Fund issues and redeems Creation Units principally for cash, it will incur higher costs in buying and selling securities than if it issued and redeemed Creation Units principally in-kind. In addition, the performance of the Fund and its Underlying Index may vary due to asset valuation differences and differences between the Fund’s portfolio and its Underlying Index resulting from legal restrictions, cost or liquidity constraints.

15

Sampling Risk. The Fund’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 respecting 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.

Cash Transaction Risk. Unlike most exchange-traded funds (“ETFs”), the Fund currently effects creations and redemptions principally for cash, rather than primarily in-kind because of the nature of the Fund’s investments. As such, investments in the Fund’s Shares may be less tax efficient than investments in conventional ETFs.

High Yield Securities Risk. 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.

Risk of Investing in Loans. Investments in loans are subject to interest rate risk and credit risk. Interest rate risk refers to fluctuations in the value of a loan resulting from changes in the general level of interest rates. Credit risk refers to the possibility that the borrower of a loan will be unable and/or unwilling to make timely interest payments and/or repay the principal on its obligation. Default in the payment of interest or principal on a loan will result in a reduction in the value of the loan and consequently a reduction in the value of the Fund’s investments and a potential decrease in the NAV of the Fund. Although the loans in which the Fund will invest generally will be secured by specific collateral, there can be no assurance that such collateral would satisfy the borrower’s obligation in the event of non-payment of scheduled interest or principal or that such collateral could be readily liquidated. In the event of the bankruptcy of a borrower, the Fund’s access to the collateral may be limited by bankruptcy or other insolvency loans and, therefore, the Fund could experience delays or limitations with respect to its ability to realize the benefits of the collateral securing a loan.

There is no organized exchange on which loans are traded and reliable market quotations may not be readily available. Therefore, elements of judgment may play a greater role in valuation of loans than for securities with a more developed secondary market and the Fund may not realize full value in the event of the need to sell a loan. To the extent that a secondary market does exist for certain loans, the market may be subject to volatility, irregular trading activity, wide bid/ask spreads, decreased liquidity and extended trade settlement periods. Some loans are subject to the risk that a court, pursuant to fraudulent conveyance or other similar laws, could subordinate the loans to presently existing or future indebtedness of the borrower or take other action detrimental to lenders, including the Fund, such as invalidation of loans or causing interest previously paid to be refunded to the borrower. Investments in loans also are subject to the risk of changes in legislation or state or federal regulations. If such legislation or regulations impose additional requirements or restrictions on the ability of financial institutions to make loans, the availability of loans for investment by the Fund may be adversely affected. Many loans are not registered with the Securities and Exchange Commission (the “SEC”) or any state securities commission and often are not rated by any nationally recognized rating service. Generally, there is less readily available, reliable information about most loans than is the case for many other types of securities. Although a loan may be senior to equity and other debt securities in a borrower’s capital structure, such obligations may be structurally subordinated to obligations of the borrower’s subsidiaries.

C. Cash and Cash Equivalents

For the purposes of the Statement of Cash Flows, the Fund defines Cash and Cash Equivalents as cash (including foreign currency), money market funds and other investments held in lieu of cash and excludes investments made with cash collateral received.

D. Securities Purchased on a When-Issued and Delayed Delivery Basis

The Fund may purchase and sell interests in corporate loans and corporate debt securities and other portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value of the interests or securities at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, it may sell such securities prior to the settlement date.

E. Federal Income Taxes

The 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 Fund 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.

The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the 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.

16

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

The Fund files 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.

F. 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. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes. 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 the 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.

Other income is comprised primarily of amendment fees which are recorded when received. Amendment fees are received in return for changes in the terms of a loan or note.

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

G. Expenses

The Fund 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 payments to Invesco Senior Secured Management, Inc. (the “Sub-Adviser”), set-up fees and commitment fees associated with the line of credit and 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 (including interest expenses associated with the line of credit), litigation expenses and other extraordinary expenses (including acquired fund fees and expenses, if any).

H. Dividends and Distributions to Shareholders

The Fund declares and pays dividends from net investment income, if any, to its shareholders monthly and records such dividends on ex-dividend date. Generally, the 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 the Fund’s financial statements as a tax return of capital at fiscal period-end.

Note 3. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with the Adviser pursuant to which the Adviser has overall responsibility for the selection and ongoing monitoring of the Fund’s investments, managing the Fund’s business affairs and providing certain clerical, bookkeeping and other administrative services.

As compensation for its services, the Fund has agreed to pay the Adviser an annual unitary management fee of 0.65% of the Fund’s average daily net assets. Out of the unitary management fee, the Adviser has agreed to pay substantially all expenses of the Fund, including payments to the Sub-Adviser, set-up fees and commitment fees associated with the Fund’s line of credit and 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 (including interest expenses associated with the line of credit), litigation expenses and other extraordinary expenses (including acquired fund fees and expenses, if any).

The Adviser has entered into a sub-advisory agreement with the Sub-Adviser. The sub-advisory fee is paid by the Adviser to the Sub-Adviser at the annual rate of 40% of compensation paid to the Adviser from the Fund.

Further, through August 31, 2015, the Adviser has contractually agreed to waive a portion of the 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.

For the six-month period ended April 30, 2014, the Adviser waived fees of $306,880.

The Trust has entered into a Distribution Agreement with Invesco Distributors, Inc. (the “Distributor”), which serves as the distributor of Creation Units for the Fund. The Distributor does not maintain a secondary market in the Shares. The Fund is 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 the Fund with Standard & Poor’s (the “Licensor”). The Underlying Index name trademark is owned by the Licensor. This trademark has been licensed to the Adviser for use by the Fund. The Fund is entitled to use its Underlying Index pursuant to the Trust’s sub-licensing agreement with the Adviser. The Fund is not sponsored, endorsed, sold or promoted by the Licensor, and the Licensor make no representation regarding the advisability of investing in the Fund.

17

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 the Fund.

Note 4. Security Transactions with Affiliated Entities

The Fund is permitted to purchase or sell securities from or to certain other affiliated entities under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six months ended April 30, 2014, the Fund engaged in securities sales of $28,787,982, which resulted in net realized gains (losses) of $(132,148).

Note 5. Additional Valuation Information

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

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

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

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

The following is a summary of the tiered valuation input levels, as of April 30, 2014. 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
Senior Floating Rate Loans	$	—	$	6,246,688,828	$	—	$	6,246,688,828
Corporate Bonds		—		634,886,599		—		634,886,599
Equity Securities		356,414,787		—		—		356,414,787
Total Investments		356,414,787		6,881,575,427		—		7,237,990,214

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 carryforward) 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 carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Fund 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 8 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 carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The Fund had a short-term capital loss carryforward in the amount of $5,989,716 as of October 31, 2013, which is not subject to expiration.

18

Note 7. Investment Transactions

For the six-month period ended April 30, 2014, the cost of securities purchased and proceeds from sales of securities, excluding short-term securities, U.S. Treasury obligations and money market funds, was $2,666,704,131 and $1,552,039,714 respectively.

At April 30, 2014, 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:

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	36,620,105
Aggregate unrealized (depreciation) of investment securities		(75,907,276	)
Net unrealized appreciation (depreciation) of investment securities	$	(39,287,171	)

Cost of investments for tax and financial reporting purposes is the same.

Note 8. Trustees’ and Officer’s Fees

Trustees’ and Officer’s Fees include amounts accrued by the Fund to pay remuneration to each Trustee who is not an “interested person” as defined in the 1940 Act (an “Independent Trustee”) and Officer of the Fund. The Adviser, as a result of the unitary management fee, pays for such compensation. The Trustee who is an “interested person” (the “Non-Independent Trustee”) of the Trust does not receive any Trustees’ fees.

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

Note 9. Senior Loan Participation Commitments

The Fund may invest in participations, assignments, or acts as a party to the primary lending syndicate of a Senior Loan interest to corporations, partnerships, and other entities. When the Fund purchases a participation of a Senior Loan interest, the Fund typically enters into a contractual agreement with the lender or other third party selling the participation, but not with the borrower directly. As such, the Fund assumes the credit risk of the borrower, selling participant or other persons interpositioned between the Fund and the borrower.

During the six-month period April 30, 2014, there were no interests in Senior Loans purchased by the Fund on a participation basis.

Note 10. Borrowing

The Fund is a party to a committed line of credit facility with a syndicate administered by State Street Bank and Trust Company. The Fund may borrow up to the lesser of (1) $650,000,000, or (2) the limits set by its prospectus for borrowings. The Adviser, on behalf of the Fund, pays a commitment fee of 0.125% and an upfront fee of 0.05% on the committed amount. In case of borrowings from the line of credit, the Fund pays the associated interest expenses.

During the six-month period ended April 30, 2014, there were no outstanding borrowings from the line of credit.

Note 11. Capital

Shares are created and redeemed by the Fund only in Creation Units of 100,000 Shares. Only Authorized Participants are permitted to purchase or redeem Creation Units from the Fund. Unlike most ETFs, the Fund currently effects creations and redemptions principally in exchange for the deposit or delivery of cash, rather than principally in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”) because of the nature of the Fund’s investments.

To the extent that the Fund permits transactions in exchange for Deposit Securities, the 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 Fund’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.

The Fund charges certain transaction fees for creations and redemptions, which are treated as increases in capital, which are shown in the Statement of Changes in Net Assets as Transaction fees.

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

19

Note 12. Indemnifications

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

20

Fees and Expenses

As a shareholder of the PowerShares Senior Loan Portfolio (the “Fund”), a series of the PowerShares Exchange-Traded Fund Trust II, 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 (including interest expenses associated with the line of credit), litigation expenses and other extraordinary expenses (including acquired fund fees and expenses, if any). The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended April 30, 2014.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

	Beginning Account Value November 1, 2013		Ending Account Value April 30, 2014		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period(1)
PowerShares Senior Loan Portfolio (BKLN)
Actual	$	1,000.00	$	1,019.86		0.64	%	$	3.21
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.62		0.64	%	$	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 April 30, 2014. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 181/365.

21

Board Considerations Regarding Continuation of Investment Advisory

Agreement and Sub-Advisory Agreement

At a meeting held on April 17, 2014, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust II (the “Trust”), including the Independent Trustees, approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the “Adviser”) and the Trust for the following 58 series (each, a “Fund” and collectively, the “Funds”):

PowerShares 1-30 Laddered Treasury Portfolio

PowerShares Aggregate Bond Portfolio

PowerShares Build America Bond Portfolio

PowerShares CEF Income Composite Portfolio

PowerShares Chinese Yuan Dim Sum Bond Portfolio

PowerShares DWA Developed Markets Momentum Portfolio

PowerShares DWA Emerging Markets Momentum Portfolio

PowerShares DWA SmallCap Momentum Portfolio

PowerShares Emerging Markets Infrastructure Portfolio

PowerShares Emerging Markets Sovereign Debt Portfolio

PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio

PowerShares FTSE RAFI Emerging Markets Portfolio

PowerShares Fundamental Emerging Markets Local Debt Portfolio

PowerShares Fundamental High Yield^® Corporate Bond Portfolio

PowerShares Fundamental Investment Grade Corporate Bond Portfolio

PowerShares Global Agriculture Portfolio

PowerShares Global Clean Energy Portfolio

PowerShares Global Gold and Precious Metals Portfolio

PowerShares Global Short Term High Yield Bond Portfolio

PowerShares Global Water Portfolio

PowerShares Insured California Municipal Bond Portfolio

PowerShares Insured National Municipal Bond Portfolio

PowerShares Insured New York Municipal Bond Portfolio

PowerShares International BuyBack Achievers^TM Portfolio*

PowerShares International Corporate Bond Portfolio

PowerShares KBW Bank Portfolio

PowerShares KBW Capital Markets Portfolio

PowerShares KBW High Dividend Yield Financial Portfolio

PowerShares KBW Insurance Portfolio

PowerShares KBW Premium Yield Equity REIT Portfolio

PowerShares KBW Property & Casualty Insurance Portfolio

PowerShares KBW Regional Banking Portfolio

PowerShares NYSE Century Portfolio*

PowerShares Preferred Portfolio

PowerShares S&P 500^® High Beta Portfolio

PowerShares S&P 500^® High Dividend Portfolio

PowerShares S&P 500^® High Momentum Portfolio

PowerShares S&P 500^® Low Volatility Portfolio

PowerShares S&P Emerging Markets High Beta Portfolio

PowerShares S&P Emerging Markets Low Volatility Portfolio

PowerShares S&P International Developed High Beta Portfolio

PowerShares S&P International Developed High Quality Portfolio

PowerShares S&P International Developed Low Volatility Portfolio

PowerShares S&P MidCap Low Volatility Portfolio

PowerShares S&P SmallCap Consumer Discretionary Portfolio

PowerShares S&P SmallCap Consumer Staples Portfolio

PowerShares S&P SmallCap Energy Portfolio

PowerShares S&P SmallCap Financials Portfolio

PowerShares S&P SmallCap Health Care Portfolio

PowerShares S&P SmallCap Industrials Portfolio

PowerShares S&P SmallCap Information Technology Portfolio

PowerShares S&P SmallCap Low Volatility Portfolio

PowerShares S&P SmallCap Materials Portfolio

PowerShares S&P SmallCap Utilities Portfolio

PowerShares Senior Loan Portfolio

PowerShares VRDO Tax-Free Weekly Portfolio

* The Trustees previously approved the initial Investment Advisory Agreement at a meeting held on December 17, 2013.

Also at the April 17, 2014 meeting, the Board of Trustees of the Trust, including the Independent Trustees, approved the continuation of the Investment Sub-Advisory Agreement between the Adviser and the following eight affiliated sub-advisers for PowerShares Senior Loan Portfolio (the “Sub-Advisory Agreement”): Invesco Advisers, Inc.; Invesco Asset Management Deutschland, GmbH; Invesco Asset Management Limited; Invesco Asset Management (Japan) Limited; Invesco Australia Limited; Invesco Hong Kong Limited; Invesco Senior Secured Management, Inc.; and Invesco Canada Ltd. (each, a “Sub-Adviser” and collectively, the “Sub-Advisers”).

The Trustees reviewed information from the Adviser describing: (i) the nature, extent and quality of services provided, (ii) the investment performance of the Funds and the Adviser, (iii) the costs of services provided and estimated profits realized by the Adviser, (iv) the extent to which economies of scale are realized as a Fund grows, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered to and amounts paid by other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with each Fund. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board’s analysis.

22

Board Considerations Regarding Continuation of Investment Advisory

Agreement and Sub-Advisory Agreement (continued)

Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser’s services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser’s current organization and staffing, including operational support provided by the Adviser’s parent organization, Invesco Ltd., and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser’s execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds (other than PowerShares Aggregate Bond Portfolio and PowerShares S&P 500^® High Momentum Portfolio, which Funds had not commenced operations as of April 17, 2014), their underlying indexes and their primary benchmarks for the one-year, three-year, five-year and since-inception periods ended December 31, 2013, as applicable, including reports for each of those periods on the correlation and tracking error between each Fund’s performance and the performance of its underlying index, as well as the Adviser’s analysis of the tracking error between each Fund and its underlying index. In reviewing the tracking error report, the Trustees considered information provided by Ibbotson Associates, a consultant to the Independent Trustees, with respect to general expected tracking error ranges and various explanations for any tracking error. The Trustees noted that for each applicable period, the correlation for each Fund, other than the five-year period for PowerShares Fundamental High Yield Corporate Bond Portfolio, the since-inception period for PowerShares Global Short Term High Yield Bond Portfolio, the one- and three-year periods for PowerShares Insured New York Municipal Bond Portfolio and the one-, three- and five-year periods for PowerShares VRDO Tax-Free Weekly Portfolio, was within the targeted range set forth in the Trust’s registration statement. The Trustees reviewed the reasons provided by the Adviser for PowerShares Global Short Term High Yield Bond Portfolio’s, PowerShares Insured New York Municipal Bond Portfolio’s, PowerShares Fundamental High Yield Corporate Bond Portfolio’s and PowerShares VRDO Tax-Free Weekly Portfolio’s level of correlation to its underlying index, as well as the Adviser’s expectations for such Fund’s correlation going forward. The Trustees noted that for each applicable period, the tracking error for each Fund was within the targeted range set forth in the Trust’s registration statement and concluded that each Fund’s correlation to its underlying index and the tracking error for each Fund were within an acceptable range given that Fund’s particular circumstances.

The Trustees also considered the services provided by the Adviser in its oversight of the Funds’ administrator, custodian and transfer agent. They noted the significant amount of time, effort and resources that had been devoted to this oversight function.

Based on their review, the Trustees concluded that the nature, extent and quality of services provided by the Adviser to the Funds under the Investment Advisory Agreement were appropriate and reasonable.

Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser on each Fund’s net expense ratio and unitary advisory fee, as compared to information compiled by the Adviser from Lipper Inc. databases on the net expense ratios of comparable exchange-traded funds (“ETFs”), open-end (non-ETF) index funds and open-end actively-managed funds. The Trustees noted that the annual advisory fee charged to each Fund, as set forth below, is a unitary fee and that the Adviser pays all other operating expenses of each Fund, including the fees payable to the Sub-Advisers for PowerShares Senior Loan Portfolio, except that each Fund pays its brokerage expenses, taxes, interest (including for PowerShares Senior Loan Portfolio, interest expenses associated with its line of credit), litigation expenses and other extraordinary expenses.

— 0.22%: PowerShares Fundamental Investment Grade Corporate Bond Portfolio

— 0.25%: PowerShares 1-30 Laddered Treasury Portfolio, PowerShares Aggregate Bond Portfolio, PowerShares S&P 500^® High Beta Portfolio, PowerShares S&P 500^® High Momentum Portfolio, PowerShares S&P 500^® Low Volatility Portfolio, PowerShares S&P MidCap Low Volatility Portfolio, PowerShares S&P SmallCap Low Volatility Portfolio, PowerShares VRDO Tax-Free Weekly Portfolio

— 0.28%: PowerShares Build America Bond Portfolio, PowerShares Insured California Municipal Bond Portfolio, PowerShares Insured National Municipal Bond Portfolio, PowerShares Insured New York Municipal Bond Portfolio

— 0.29%: PowerShares S&P SmallCap Consumer Discretionary, PowerShares S&P SmallCap Consumer Staples Portfolio, PowerShares S&P SmallCap Energy Portfolio, PowerShares S&P SmallCap Financials Portfolio, PowerShares S&P SmallCap Health Care Portfolio, PowerShares S&P SmallCap Industrials Portfolio, PowerShares S&P SmallCap Information Technology Portfolio, PowerShares S&P SmallCap Materials Portfolio, PowerShares S&P SmallCap Utilities Portfolio

— 0.30%: PowerShares S&P 500^® High Dividend Portfolio

— 0.35%: PowerShares Global Short Term High Yield Bond Portfolio, PowerShares KBW Bank Portfolio, PowerShares KBW Capital Markets Portfolio, PowerShares KBW High Dividend Yield Financial Portfolio, PowerShares KBW Insurance Portfolio, PowerShares KBW Premium Yield Equity REIT Portfolio, PowerShares KBW Property & Casualty Insurance Portfolio, PowerShares KBW Regional Banking Portfolio, PowerShares S&P International Developed High Beta Portfolio, PowerShares S&P International Developed Low Volatility Portfolio

23

Board Considerations Regarding Continuation of Investment Advisory

Agreement and Sub-Advisory Agreement (continued)

— 0.45%: PowerShares Chinese Yuan Dim Sum Bond Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio, PowerShares S&P Emerging Markets High Beta Portfolio, PowerShares S&P Emerging Markets Low Volatility Portfolio, PowerShares S&P International Developed High Quality Portfolio

— 0.49%: PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio, PowerShares FTSE RAFI Emerging Markets Portfolio

— 0.50%: PowerShares CEF Income Composite Portfolio, PowerShares Emerging Markets Sovereign Debt Portfolio, PowerShares Fundamental Emerging Markets Local Debt Portfolio, PowerShares Fundamental High Yield^® Corporate Bond Portfolio, PowerShares International Corporate Bond Portfolio, PowerShares NYSE Century Portfolio, PowerShares Preferred Portfolio

— 0.55% PowerShares International BuyBack Achievers^TM Portfolio

— 0.60%: PowerShares DWA SmallCap Momentum Portfolio

— 0.65%: PowerShares Senior Loan Portfolio

— 0.75%: PowerShares Emerging Markets Infrastructure Portfolio, PowerShares Global Agriculture Portfolio, PowerShares Global Clean Energy Portfolio, PowerShares Global Gold and Precious Metals Portfolio, PowerShares Global Water Portfolio

— 0.80%: PowerShares DWA Developed Markets Momentum Portfolio

— 0.90%: PowerShares DWA Emerging Markets Momentum Portfolio

The Trustees noted that the Adviser represented that it does not serve as the investment adviser to any clients, other than other ETFs also overseen by the Trustees, with comparable investment strategies as the Funds, but that the Adviser provides sub-advisory services to clients with comparable investment strategies as certain of the Funds. The Trustees further noted the Adviser’s explanation with respect to the sub-advisory fees it receives for such services in comparison to the advisory fees charged to the Funds. The Trustees noted that each Fund’s advisory fee was:

— equal to or lower than the median net expense ratio of its ETF peer funds (except for the advisory fee of each of PowerShares 1-30 Laddered Treasury Portfolio, PowerShares Aggregate Bond Portfolio, PowerShares CEF Income Composite Portfolio, PowerShares DWA Emerging Markets Momentum Portfolio, PowerShares DWA SmallCap Momentum Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio, PowerShares Fundamental High Yield^® Corporate Bond Portfolio, PowerShares Fundamental Investment Grade Corporate Bond Portfolio PowerShares Global Agriculture Portfolio, PowerShares Global Clean Energy Portfolio, PowerShares Global Gold and Precious Metals Portfolio, PowerShares Global Water Portfolio, PowerShares Insured California Municipal Bond Portfolio, PowerShares Insured National Municipal Bond Portfolio, PowerShares Insured New York Municipal Bond Portfolio, PowerShares International BuyBack Achievers^TM Portfolio, PowerShares International Corporate Bond Portfolio, PowerShares NYSE Century Portfolio, PowerShares S&P International Developed Low Volatility Portfolio, PowerShares S&P International Developed High Beta Portfolio, PowerShares S&P International Developed High Quality Portfolio, PowerShares Senior Loan Portfolio and PowerShares VRDO Tax-Free Weekly Portfolio, which were higher than the median net expense ratio of its ETF peer funds); and

— equal to or lower than the median net expense ratio of its open-end index peer funds (except for the advisory fee of each of PowerShares 1-30 Laddered Treasury Portfolio, PowerShares Aggregate Bond Portfolio, PowerShares DWA Emerging Markets Momentum Portfolio, PowerShares DWA SmallCap Momentum Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio, PowerShares Fundamental Investment Grade Corporate Bond Portfolio, PowerShares KBW Premium Yield Equity REIT Portfolio and PowerShares S&P International Developed Low Volatility Portfolio, which was higher than the median net expense ratio of its open-end index peer funds; and there was no comparable data for PowerShares Build America Bond Portfolio, PowerShares Chinese Yuan Dim Sum Bond Portfolio, PowerShares DWA Developed Markets Momentum Portfolio, PowerShares Emerging Markets Infrastructure Portfolio, PowerShares Emerging Markets Sovereign Debt Portfolio, PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio, PowerShares Fundamental Emerging Markets Local Debt Portfolio, PowerShares Fundamental High Yield^® Corporate Bond Portfolio, PowerShares Global Agriculture Portfolio, PowerShares Global Clean Energy Portfolio, PowerShares Global Gold and Precious Metals Portfolio, PowerShares Global Short Term High Yield Bond Portfolio, PowerShares Global Water Portfolio, PowerShares Insured California Municipal Bond Portfolio, PowerShares Insured National Municipal Bond Portfolio, PowerShares Insured New York Municipal Bond Portfolio, PowerShares International Corporate Bond Portfolio, PowerShares KBW Bank Portfolio, PowerShares KBW Capital Markets Portfolio, PowerShares KBW High Dividend Yield Financial Portfolio, PowerShares KBW Insurance Portfolio, PowerShares KBW Property & Casualty Insurance Portfolio, PowerShares KBW Regional Banking Portfolio, PowerShares Preferred Portfolio, PowerShares S&P SmallCap Consumer Discretionary Portfolio, PowerShares S&P SmallCap Consumer Staples Portfolio, PowerShares S&P SmallCap Energy Portfolio, PowerShares S&P

24

Board Considerations Regarding Continuation of Investment Advisory

Agreement and Sub-Advisory Agreement (continued)

SmallCap Financials Portfolio, PowerShares S&P SmallCap Health Care Portfolio, PowerShares S&P SmallCap Industrials Portfolio, PowerShares S&P SmallCap Materials Portfolio, PowerShares Senior Loan Portfolio or PowerShares VRDO Tax-Free Weekly Portfolio); but

— lower than the median expense ratio of its open-end actively-managed peer funds.

The Trustees also considered that, during the period, certain Funds incurred other expenses excluded from those Funds’ unitary advisory fees, such that those Funds’ net expense ratios were in excess of the Funds’ unitary advisory fees. The Trustees noted the Adviser’s belief that such expenses were not expected to be incurred at that level going forward. The Trustees considered that the Adviser had agreed to waive a portion of its advisory fee, at least until February 28, 2016, for PowerShares S&P Emerging Markets High Beta Portfolio, PowerShares S&P Emerging Markets Low Volatility Portfolio, PowerShares S&P International Developed High Beta Portfolio and PowerShares S&P International Developed Low Volatility Portfolio. The Trustees determined that each Fund’s advisory fee was reasonable because of the complexity of the indexes, the distinguishing factors of the Funds and the administrative, operational and management oversight costs for the Adviser. The Trustees also noted that a portion of each Fund’s advisory fee was attributable to a license fee payable out of the unitary fee charged to that Fund. The Board concluded that the unitary advisory fee charged to each Fund was reasonable and appropriate in light of the services provided.

In conjunction with their review of the unitary advisory fee, the Trustees also considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement. The Trustees reviewed information provided by the Adviser on its profitability, as well as any profits or losses realized by the Adviser from its relationship to each Fund. The Trustees concluded that the estimated profitability to the Adviser of the advisory services provided to any of the Funds was not unreasonable.

Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. The Trustees reviewed the information provided by the Adviser as to the extent to which economies of scale are realized as each Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees reviewed each Fund’s asset size and expense ratio. The Trustees noted that any reduction in fixed costs associated with the management of the Funds would be enjoyed by the Adviser, but a unitary fee provides a level of certainty in expenses for the Funds. The Trustees considered whether the advisory fee rate for each Fund was reasonable in relation to the asset size of that Fund, and concluded that the flat advisory fee was reasonable and appropriate.

The Trustees noted that the Adviser had not identified any further benefits that it derived from its relationship with the Funds and had noted that it does not have any soft-dollar arrangements.

Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund.

Investment Sub-Advisory Agreement

As noted above, the Board of Trustees of the Trust, including the Independent Trustees, approved the continuation of the Sub-Advisory Agreement for the PowerShares Senior Loan Portfolio at a meeting held on April 17, 2014. The review process followed by the Board is described in detail above. In connection with the review of the Sub-Advisory Agreement, the Board considered the factors described below, among others.

Nature, Extent and Quality of Services. The Trustees considered the nature, extent and quality of services provided under the Sub-Advisory Agreement. The Board also considered the benefits described by the Adviser in having multiple affiliated Sub-Advisers. The Board reviewed the qualifications and background of each Sub-Adviser, the investment approach of the Sub-Adviser whose investment personnel manage the PowerShares Senior Loan Portfolio’s assets, the experience and skills of the investment personnel responsible for the day-to-day management of the Fund, and the resources made available to such personnel.

Based on their review, the Trustees concluded that the nature, extent and quality of services provided by the Sub-Advisers to PowerShares Senior Loan Portfolio under the Sub-Advisory Agreement were appropriate and reasonable.

Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser and the Sub-Advisers on the sub-advisory fee rate under the Sub-Advisory Agreement. The Trustees noted that the sub-advisory fee charged by the Sub-Advisers under the Sub-Advisory Agreement is consistent with the compensation structure used throughout Invesco when Invesco’s affiliates provide sub-advisory services for funds managed by other Invesco affiliates. The Board considered how the sub-advisory fees relate to the overall advisory fee for the PowerShares Senior Loan Portfolio and noted that the Adviser compensates the Sub-Advisers from its fee. The Trustees also considered information provided by Invesco Senior Secured Management, Inc. on the revenues it

25

Board Considerations Regarding Continuation of Investment Advisory

Agreement and Sub-Advisory Agreement (continued)

receives under the Sub-Advisory Agreement. The Trustees concluded that the sub-advisory fees were reasonable in light of the sub-advisory services provided to the PowerShares Senior Loan Portfolio.

Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. As part of their review of the Investment Advisory Agreement for the PowerShares Senior Loan Portfolio, the Trustees considered the extent to which economies of scale are realized as the PowerShares Senior Loan Portfolio grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees considered whether the sub-advisory fee rate for PowerShares Senior Loan Portfolio was reasonable in relation to the asset size of the Fund, and concluded that the flat sub-advisory fee was reasonable and appropriate.

The Trustees noted that the Sub-Advisers had not identified any further benefits that they derived from their relationships with the PowerShares Senior Loan Portfolio.

Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Sub-Advisory Agreement for the PowerShares Senior Loan Portfolio. No single factor was determinative in the Board’s analysis.

26

Proxy Voting Policies and Procedures

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

Information regarding how the 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 Fund 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 the 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.

©2014 Invesco PowerShares Capital Management LLC			P-BKLN-SAR-1
3500 Lacey Road, Suite 700 Downers Grove, IL 60515
invescopowershares.com    800.983.0903		@PowerShares

April 30, 2014

2014 Semi-Annual Report to Shareholders

SPHB	PowerShares S&P 500® High Beta Portfolio
SPHD	PowerShares S&P 500® High Dividend Portfolio
SPLV	PowerShares S&P 500® Low Volatility Portfolio
EEHB	PowerShares S&P Emerging Markets High Beta Portfolio
EELV	PowerShares S&P Emerging Markets Low Volatility Portfolio
IDHB	PowerShares S&P International Developed High Beta Portfolio
IDLV	PowerShares S&P International Developed Low Volatility Portfolio
XMLV	PowerShares S&P MidCap Low Volatility Portfolio
XSLV	PowerShares S&P SmallCap Low Volatility Portfolio

Table of Contents

S&P 500® Portfolios
Schedules of Investments
PowerShares S&P 500® High Beta Portfolio (SPHB)	3
PowerShares S&P 500® High Dividend Portfolio (SPHD)	5
PowerShares S&P 500® Low Volatility Portfolio (SPLV)	7
PowerShares S&P Emerging Markets High Beta Portfolio (EEHB)	9
PowerShares S&P Emerging Markets Low Volatility Portfolio (EELV)	13
PowerShares S&P International Developed High Beta Portfolio (IDHB)	16
PowerShares S&P International Developed Low Volatility Portfolio (IDLV)	19
PowerShares S&P MidCap Low Volatility Portfolio (XMLV)	23
PowerShares S&P SmallCap Low Volatility Portfolio (XSLV)	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	41
Fees and Expenses	49
Board Considerations Regarding Continuation of Investment Advisory Agreement and Sub-Advisory Agreement	51

2

Portfolio Composition

PowerShares S&P 500^® High Beta Portfolio (SPHB)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30,  2014 (Unaudited)
Financials	25.9
Consumer Discretionary	19.4
Energy	17.1
Industrials	14.5
Information Technology	9.2
Materials	7.2
Health Care	5.8
Consumer Staples	0.9
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares S&P 500^® High Beta Portfolio (SPHB)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—19.4%
	6,220	Amazon.com, Inc.(b)	$	1,891,689
	92,453	Best Buy Co., Inc.		2,397,306
	39,009	BorgWarner, Inc.		2,424,019
	43,733	CarMax, Inc.(b)		1,914,631
	33,842	CBS Corp., Class B		1,954,714
	121,299	D.R. Horton, Inc.		2,702,542
	37,180	Delphi Automotive PLC (United Kingdom)		2,485,111
	26,726	Expedia, Inc.		1,897,279
	139,347	Ford Motor Co.		2,250,454
	17,497	Fossil Group, Inc.(b)		1,866,055
	103,359	Gannett Co., Inc.		2,808,264
	61,547	General Motors Co.(b)		2,122,140
	24,018	Harman International Industries, Inc.		2,632,613
	183,372	International Game Technology		2,301,319
	43,542	Johnson Controls, Inc.		1,965,486
	59,126	Lennar Corp., Class A		2,281,672
	17,442	Mohawk Industries, Inc.(b)		2,309,495
	150,179	PulteGroup, Inc.		2,761,792
	29,172	Starwood Hotels & Resorts Worldwide, Inc.		2,236,034
	17,068	Whirlpool Corp.		2,617,890
				45,820,505
		Consumer Staples—0.9%
	147,975	Avon Products, Inc.		2,261,058
		Energy—17.1%
	25,668	Anadarko Petroleum Corp.		2,541,645
	34,930	Cameron International Corp.(b)		2,269,053
	130,366	Denbury Resources, Inc.		2,192,756
	25,860	EOG Resources, Inc.		2,534,280
	41,222	FMC Technologies, Inc.(b)		2,337,287
	40,464	Halliburton Co.		2,552,065

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	23,175	Helmerich & Payne, Inc.	$	2,517,964
	65,856	Marathon Oil Corp.		2,380,694
	25,118	Marathon Petroleum Corp.		2,334,718
	137,440	Nabors Industries Ltd.		3,507,469
	66,239	Noble Corp. PLC		2,040,824
	32,159	Noble Energy, Inc.		2,308,373
	29,092	Phillips 66(b)		2,421,036
	15,126	Pioneer Natural Resources Co.		2,923,402
	51,110	Tesoro Corp.(b)		2,876,982
	46,098	Valero Energy Corp.		2,635,423
				40,373,971
		Financials—25.9%
	47,735	American International Group, Inc.		2,536,160
	23,875	Ameriprise Financial, Inc.		2,665,166
	125,583	Bank of America Corp.		1,901,327
	68,825	Bank of New York Mellon Corp. (The)		2,331,103
	9,163	BlackRock, Inc.		2,758,063
	78,242	CBRE Group, Inc., Class A(b)		2,084,367
	89,471	Charles Schwab Corp. (The)		2,375,455
	48,856	Citigroup, Inc.		2,340,691
	100,004	E*TRADE Financial Corp.(b)		2,245,090
	49,493	Franklin Resources, Inc.		2,590,958
	184,425	Genworth Financial, Inc., Class A(b)		3,291,986
	13,095	Goldman Sachs Group, Inc. (The)		2,092,843
	73,379	Hartford Financial Services Group, Inc. (The)		2,632,105
	117,343	Host Hotels & Resorts, Inc. REIT		2,517,007
	78,547	Invesco Ltd.(c)		2,765,640
	59,995	Legg Mason, Inc.		2,813,166
	55,545	Lincoln National Corp.		2,694,488
	47,761	MetLife, Inc.		2,500,288

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

3

PowerShares S&P 500^® High Beta Portfolio (SPHB) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	27,814	Moody’s Corp.	$	2,183,399
	91,359	Morgan Stanley		2,825,734
	52,921	Principal Financial Group, Inc.		2,478,820
	27,795	Prudential Financial, Inc.		2,242,501
	30,842	State Street Corp.		1,991,159
	28,155	T. Rowe Price Group, Inc.		2,312,370
	66,289	Unum Group		2,202,121
				61,372,007
		Health Care—5.8%
	13,992	Alexion Pharmaceuticals, Inc.(b)		2,213,534
	7,469	Biogen Idec, Inc.(b)		2,144,499
	13,312	Celgene Corp.(b)		1,956,997
	29,281	Gilead Sciences, Inc.(b)		2,298,266
	8,919	Regeneron Pharmaceuticals, Inc.(b)		2,647,962
	35,306	Vertex Pharmaceuticals, Inc.(b)		2,390,216
				13,651,474
		Industrials—14.5%
	76,123	Delta Air Lines, Inc.		2,803,610
	33,232	Eaton Corp. PLC		2,413,972
	29,118	Flowserve Corp.		2,127,070
	31,922	Fluor Corp.		2,416,495
	37,784	Ingersoll-Rand PLC		2,259,483
	34,380	Jacobs Engineering Group, Inc.(b)		1,983,726
	27,939	Kansas City Southern		2,818,486
	123,639	Masco Corp.		2,483,908
	33,689	PACCAR, Inc.		2,155,422
	17,986	Parker Hannifin Corp.		2,282,064
	87,305	Pitney Bowes, Inc.		2,339,774
	55,827	Robert Half International, Inc.		2,501,050
	33,132	Ryder System, Inc.		2,722,788
	71,829	Textron, Inc.		2,937,806
				34,245,654
		Information Technology—9.2%
	49,035	First Solar, Inc.(b)		3,309,372
	43,554	Lam Research Corp.(b)		2,509,146
	214,096	LSI Corp.		2,385,029
	99,426	Micron Technology, Inc.(b)		2,597,007
	35,453	Salesforce.com, Inc.(b)		1,831,147
	29,282	SanDisk Corp.		2,488,092
	24,232	Western Digital Corp.		2,135,566
	204,739	Xerox Corp.		2,475,295
	59,575	Yahoo!, Inc.(b)		2,141,721
				21,872,375
		Materials—7.2%
	72,495	Allegheny Technologies, Inc.		2,986,794
	27,448	Eastman Chemical Co.		2,392,642
	46,144	International Paper Co.		2,152,618
	24,415	LyondellBasell Industries NV, Class A		2,258,387
	70,729	Owens-Illinois, Inc.(b)		2,247,768
	73,306	Sealed Air Corp.		2,515,129
	39,266	Vulcan Materials Co.		2,533,835
				17,087,173
		Total Common Stocks and Other Equity Interests (Cost $224,671,039)		236,684,217

Number of Shares			Value
		Money Market Fund—0.0%
	3,333	Invesco Premier Portfolio—Institutional Class(d) (Cost $3,333)	$	3,333
		Total Investments (Cost $224,674,372)—100.0%		236,687,550
		Other assets less liabilities—0.0%		29,847
		Net Assets—100.0%	$	236,717,397

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 is a wholly-owned subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated. See Note 4.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

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

4

Portfolio Composition

PowerShares S&P 500^® High Dividend Portfolio (SPHD)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Utilities	26.7
Consumer Staples	19.1
Financials	14.9
Energy	10.1
Health Care	8.1
Industrials	7.7
Consumer Discretionary	6.2
Telecommunication Services	4.5
Information Technology	2.6
Money Market Fund Plus Other Assets Less Liabilities	0.1

Schedule of Investments^(a)

PowerShares S&P 500^® High Dividend Portfolio (SPHD)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Consumer Discretionary—6.2%
	41,397	Hasbro, Inc.	$	2,287,598
	95,847	Leggett & Platt, Inc.		3,149,533
	52,676	Mattel, Inc.		2,065,689
	25,485	McDonald’s Corp.		2,583,669
				10,086,489
		Consumer Staples—19.1%
	96,169	Altria Group, Inc.		3,857,339
	67,811	ConAgra Foods, Inc.		2,068,914
	48,173	Dr Pepper Snapple Group, Inc.		2,669,748
	36,869	Kellogg Co.		2,463,955
	21,614	Kimberly-Clark Corp.		2,426,171
	53,809	Kraft Foods Group, Inc.		3,059,580
	65,593	Lorillard, Inc.		3,897,536
	37,731	Philip Morris International, Inc.		3,223,359
	75,619	Reynolds American, Inc.		4,267,180
	82,389	Sysco Corp.		3,001,431
				30,935,213
		Energy—10.1%
	20,172	Chevron Corp.		2,531,989
	43,132	ConocoPhillips		3,205,139
	86,490	Diamond Offshore Drilling, Inc.		4,723,219
	91,788	Kinder Morgan, Inc.		2,997,796
	74,266	Spectra Energy Corp.		2,949,103
				16,407,246

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials—14.9%
	103,740	Apartment Investment & Management Co., Class A REIT	$	3,198,304
	22,668	AvalonBay Communities, Inc. REIT		3,095,315
	76,450	Health Care REIT, Inc. REIT		4,823,231
	156,596	Kimco Realty Corp. REIT		3,589,180
	52,526	Macerich Co. (The) REIT		3,409,463
	219,823	People’s United Financial, Inc.		3,139,072
	65,296	Plum Creek Timber Co., Inc. REIT		2,846,906
				24,101,471
		Health Care—8.1%
	30,545	Baxter International, Inc.		2,223,371
	53,146	Eli Lilly & Co.		3,140,929
	23,357	Johnson & Johnson		2,365,830
	49,768	Merck & Co., Inc.		2,914,414
	77,955	Pfizer, Inc.		2,438,432
				13,082,976
		Industrials—7.7%
	84,542	General Electric Co.		2,273,335
	16,286	Lockheed Martin Corp.		2,673,184
	38,240	PACCAR, Inc.		2,446,595
	70,313	Republic Services, Inc.		2,467,283
	58,483	Waste Management, Inc.		2,599,569
				12,459,966

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

5

PowerShares S&P 500^® High Dividend Portfolio (SPHD) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology—2.6%
	68,099	CA, Inc.	$	2,052,504
	53,126	Paychex, Inc.		2,221,198
				4,273,702
		Telecommunication Services—4.5%
	114,646	AT&T, Inc.		4,092,862
	66,350	Verizon Communications, Inc.		3,100,536
				7,193,398
		Utilities—26.7%
	61,461	Entergy Corp.		4,455,922
	134,874	Exelon Corp.		4,724,636
	142,081	FirstEnergy Corp.		4,795,234
	66,931	Integrys Energy Group, Inc.		4,101,532
	216,928	Pepco Holdings, Inc.		5,804,993
	79,450	PG&E Corp.		3,621,331
	117,393	PPL Corp.		3,913,883
	97,695	Public Service Enterprise Group, Inc.		4,002,564
	85,244	Southern Co. (The)		3,906,733
	219,519	TECO Energy, Inc.		3,942,561
				43,269,389
		Total Common Stocks and Other Equity Interests (Cost $149,214,291)		161,809,850
		Money Market Fund—0.3%
	394,867	Invesco Premier Portfolio—Institutional Class(b) (Cost $394,867)		394,867
		Total Investments (Cost $149,609,158)—100.2%		162,204,717
		Other assets less liabilities—(0.2)%		(307,910	)
		Net Assets—100.0%	$	161,896,807

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)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

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

6

Portfolio Composition

PowerShares S&P 500^® Low Volatility Portfolio (SPLV)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Utilities	25.3
Consumer Staples	17.3
Financials	15.1
Industrials	13.2
Health Care	11.3
Materials	5.0
Information Technology	4.5
Consumer Discretionary	3.9
Energy	3.4
Telecommunication Services	1.0
Money Market Fund Plus Other Assets Less Liabilities	(0.0)

Schedule of Investments^(a)

PowerShares S&P 500^® Low Volatility Portfolio (SPLV)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Consumer Discretionary—3.9%
	61,740	AutoZone, Inc.(b)	$	32,962,368
	484,765	McDonald’s Corp.		49,145,476
	611,558	Target Corp.		37,763,706
	559,487	TJX Cos., Inc. (The)		32,550,954
				152,422,504
		Consumer Staples—17.3%
	1,069,603	Altria Group, Inc.		42,901,776
	455,352	Clorox Co. (The)		41,300,426
	904,000	Coca-Cola Co. (The)		36,874,160
	572,921	Colgate-Palmolive Co.		38,557,583
	321,251	Costco Wholesale Corp.		37,162,316
	479,974	CVS Caremark Corp.		34,903,709
	691,785	Dr Pepper Snapple Group, Inc.		38,338,725
	770,127	General Mills, Inc.		40,832,134
	359,433	Hershey Co. (The)		34,591,832
	713,628	Kellogg Co.		47,691,759
	309,099	Kimberly-Clark Corp.		34,696,363
	544,898	McCormick & Co., Inc.		38,796,738
	515,762	PepsiCo, Inc.		44,298,798
	451,740	Philip Morris International, Inc.		38,592,148
	442,287	Procter & Gamble Co. (The)		36,510,792
	756,139	Reynolds American, Inc.		42,668,924
	599,842	Wal-Mart Stores, Inc.		47,813,406
				676,531,589

Number of Shares			Value
		Common Stocks (continued)
		Energy—3.4%
	350,700	Chevron Corp.	$	44,019,864
	575,847	ConocoPhillips		42,791,191
	439,605	Exxon Mobil Corp.		45,019,948
				131,831,003
		Financials—15.1%
	383,426	ACE Ltd.		39,232,148
	670,425	Allstate Corp. (The)		38,180,704
	897,232	BB&T Corp.		33,493,671
	332,061	Berkshire Hathaway, Inc., Class B(b)		42,786,060
	473,110	Chubb Corp. (The)		43,563,969
	799,003	Cincinnati Financial Corp.		38,943,406
	879,410	Loews Corp.		38,667,658
	321,632	M&T Bank Corp.		39,242,320
	816,896	Marsh & McLennan Cos., Inc.		40,281,142
	2,537,078	People’s United Financial, Inc.		36,229,474
	1,454,433	Progressive Corp. (The)		35,270,000
	515,485	Torchmark Corp.		41,084,154
	440,799	Travelers Cos., Inc. (The)		39,927,573
	1,054,933	U.S. Bancorp		43,020,168
	764,317	Wells Fargo & Co.		37,940,696
				587,863,143
		Health Care—11.3%
	520,678	AmerisourceBergen Corp.		33,937,792
	489,452	Baxter International, Inc.		35,627,211
	347,415	Becton, Dickinson and Co.		39,268,317

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

7

PowerShares S&P 500^® Low Volatility Portfolio (SPLV) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks (continued)
		Health Care (continued)
	261,102	C.R. Bard, Inc.	$	35,857,138
	759,829	DENTSPLY International, Inc.		33,911,168
	632,075	Eli Lilly & Co.		37,355,632
	458,461	Johnson & Johnson		46,437,515
	607,043	Medtronic, Inc.		35,706,269
	958,381	Patterson Cos., Inc.		39,006,107
	1,069,767	Pfizer, Inc.		33,462,312
	475,669	Stryker Corp.		36,983,265
	352,462	Zimmer Holdings, Inc.		34,118,322
				441,671,048
		Industrials—13.2%
	292,938	3M Co.		40,744,746
	640,458	Cintas Corp.		37,742,190
	433,909	Danaher Corp.		31,840,242
	355,272	Honeywell International, Inc.		33,004,769
	441,176	Illinois Tool Works, Inc.		37,601,431
	325,410	L-3 Communications Holdings, Inc.		37,542,552
	213,956	Lockheed Martin Corp.		35,118,738
	287,528	Northrop Grumman Corp.		34,937,527
	345,431	Raytheon Co.		32,981,752
	1,099,882	Republic Services, Inc.		38,594,859
	309,967	Stericycle, Inc.(b)		36,092,558
	416,890	United Parcel Service, Inc., Class B		41,063,665
	314,994	United Technologies Corp.		37,273,240
	916,465	Waste Management, Inc.		40,736,869
				515,275,138
		Information Technology—4.5%
	507,500	Automatic Data Processing, Inc.		39,564,700
	1,010,650	CA, Inc.		30,460,991
	617,896	Fiserv, Inc.(b)		37,555,719
	939,473	Paychex, Inc.		39,279,366
	654,548	Verisign, Inc.(b)		30,881,575
				177,742,351
		Materials—5.0%
	949,327	Bemis Co., Inc.		38,200,918
	515,778	E.I. du Pont de Nemours & Co.		34,722,175
	380,421	International Flavors & Fragrances, Inc.		37,479,077
	316,515	Praxair, Inc.		41,321,033
	439,571	Sigma-Aldrich Corp.		42,291,126
				194,014,329
		Telecommunication Services—1.0%
	1,122,305	AT&T, Inc.		40,066,288
		Utilities—25.3%
	815,070	AGL Resources, Inc.		44,013,780
	944,380	Ameren Corp.		39,012,338
	751,699	American Electric Power Co., Inc.		40,448,923
	1,295,119	CMS Energy Corp.		39,255,057
	765,225	Consolidated Edison, Inc.		44,406,007
	544,332	Dominion Resources, Inc.		39,485,843
	550,903	DTE Energy Co.		43,047,560
	603,858	Duke Energy Corp.		44,981,382
	672,551	Edison International		38,039,485
	638,709	Integrys Energy Group, Inc.		39,140,088
	387,206	NextEra Energy, Inc.		38,662,519
	993,923	NiSource, Inc.		36,099,283

Number of Shares			Value
		Common Stocks (continued)
		Utilities (continued)
	827,082	Northeast Utilities	$	39,087,895
	1,836,544	Pepco Holdings, Inc.		49,145,918
	799,053	PG&E Corp.		36,420,836
	650,624	Pinnacle West Capital Corp.		36,402,413
	1,287,531	PPL Corp.		42,926,284
	1,054,870	Public Service Enterprise Group, Inc.		43,218,024
	804,916	SCANA Corp.		43,207,891
	386,253	Sempra Energy		38,088,408
	1,018,490	Southern Co. (The)		46,677,397
	2,160,391	TECO Energy, Inc.		38,800,622
	881,355	Wisconsin Energy Corp.		42,728,090
	1,337,492	Xcel Energy, Inc.		42,625,870
				985,921,913
		Total Common Stocks (Cost $3,509,178,392)		3,903,339,306
		Money Market Fund—0.2%
	6,865,065	Invesco Premier Portfolio—Institutional Class(c) (Cost $6,865,065)		6,865,065
		Total Investments (Cost $3,516,043,457)—100.2%		3,910,204,371
		Other assets less liabilities—(0.2)%		(7,771,162	)
		Net Assets—100.0%	$	3,902,433,209

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.

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

8

Portfolio Composition

PowerShares S&P Emerging Markets High Beta Portfolio (EEHB)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Financials	40.2
Materials	16.9
Industrials	14.4
Consumer Discretionary	10.0
Consumer Staples	5.8
Energy	4.6
Telecommunication Services	2.4
Utilities	2.1
Health Care	1.9
Information Technology	1.7
Other Assets Less Liabilities	0.0

Schedule of Investments

PowerShares S&P Emerging Markets High Beta Portfolio (EEHB)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Bahamas—0.5%
	2,603	Sesa Sterlite Ltd. ADR	$	31,783
		Brazil—8.2%
	2,460	Banco Bradesco SA		37,633
	2,560	Banco Bradesco SA (Preference Shares)		38,017
	3,300	Banco do Brasil SA		34,566
	6,400	BM&FBOVESPA SA		32,645
	3,300	BR Malls Participacoes SA		28,468
	13,000	Centrais Eletricas Brasileiras SA		45,254
	3,700	Cia de Saneamento Basico do Estado de Sao Paulo		34,965
	2,760	Itau Unibanco Holding SA (Preference Shares)		45,445
	7,555	Itausa—Investimentos Itau SA (Preference Shares)		33,128
	5,800	Petroleo Brasileiro SA		40,562
	5,000	Petroleo Brasileiro SA (Preference Shares)		37,070
	1,800	Porto Seguro SA		26,376
	133,150	PT Vale Indonesia Tbk		40,884
	2,000	Vale SA		26,309
	2,300	Vale SA (Preference Shares)		27,189
				528,511
		British Virgin Islands—0.4%
	39,000	Nine Dragons Paper Holdings Ltd.		25,605
		Chile—0.5%
	1,957	CAP SA		29,336

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		China—16.4%
	68,000	Agricultural Bank of China Ltd., H-Shares	$	28,506
	7,750	Anhui Conch Cement Co. Ltd., H-Shares		28,789
	40,000	BBMG Corp. H-Shares		28,119
	26,000	Belle International Holdings Ltd.		26,929
	53,500	China CITIC Bank Corp. Ltd., H-Shares		31,881
	51,000	China Coal Energy Co. Ltd., H-Shares		27,563
	38,500	China Construction Bank Corp., H-Shares		26,568
	22,000	China Everbright Ltd.		29,398
	12,900	China International Marine Containers Group Co. Ltd., Class H		25,391
	10,000	China Life Insurance Co. Ltd., H-Shares		25,771
	17,000	China Merchants Bank Co. Ltd., H-Shares		30,348
	8,000	China Merchants Holdings International Co. Ltd.		25,023
	36,000	China Minsheng Banking Corp. Ltd., H-Shares		36,219
	29,000	China National Building Material Co. Ltd., H-Shares		27,418
	11,000	China Overseas Land & Investment Ltd.		26,986
	9,400	China Pacific Insurance (Group) Co. Ltd., H-Shares		29,463
	36,500	China Railway Construction Corp. Ltd., H-Shares		30,178
	64,000	China Railway Group Ltd., H-Shares		28,480
	14,000	China Resources Land Ltd.		28,820
	15,100	China Taiping Insurance Holdings Co. Ltd.(a)		23,956
	67,000	Chongqing Rural Commercial Bank, H-Shares		29,383
	18,000	Citic Securities Co. Ltd., Class H		36,126

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

9

PowerShares S&P Emerging Markets High Beta Portfolio (EEHB) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		China (continued)
	6,750	Great Wall Motor Co. Ltd., H-Shares	$	30,560
	31,000	Greentown China Holdings Ltd.		31,188
	24,200	Guangzhou R&F Properties Co. Ltd., H-Shares		31,589
	22,800	Haitong Securities Co. Ltd., Class H		31,879
	44,000	Industrial & Commercial Bank of China Ltd., H-Shares		26,220
	16,500	Jiangxi Copper Co. Ltd., H-Shares		27,242
	8,600	New China Life Insurance Co. Ltd., Class H(a)		25,347
	3,000	Ping An Insurance (Group) Co. of China Ltd., H-Shares		22,192
	16,500	Shimao Property Holdings Ltd.		32,562
	53,500	Sino-Ocean Land Holdings Ltd.		28,293
	21,700	Xinjiang Goldwind Science & Technology Co. Ltd., H-Shares		23,567
	40,000	Yanzhou Coal Mining Co. Ltd., H-Shares		30,131
	40,750	Zhaojin Mining Industry Co. Ltd., H-Shares		24,441
	10,500	Zhuzhou CSR Times Electric Co. Ltd., H-Shares		30,811
	42,500	Zoomlion Heavy Industry Science and Technology Co. Ltd., H-Shares		28,341
				1,055,678
		Cyprus—0.4%
	2,420	Novolipetsk Steel OJSC GDR		28,096
		France—0.4%
	11,400	Glow Energy PCL		27,390
		Germany—0.5%
	16,000	PT Indocement Tunggal Prakarsa Tbk		30,377
		Hong Kong—2.4%
	48,283	Country Garden Holdings Co. Ltd.		19,369
	30,400	Indofood CBP Sukses Makmur Tbk PT		26,294
	46,900	PT Astra International Tbk		30,120
	37,900	PT Indofood Sukses Makmur Tbk		23,111
	14,850	PT United Tractors Tbk		27,872
	97,750	Shui On Land Ltd.		25,847
				152,613
		India—4.2%
	1,772	Axis Bank Ltd. GDR		44,832
	707	ICICI Bank Ltd. ADR		30,168
	1,751	Larsen & Toubro Ltd. GDR		37,734
	1,650	Mahindra & Mahindra Ltd. GDR		29,386
	986	Reliance Industries Ltd. GDR(b)		30,566
	462	State Bank of India GDR		31,624
	840	Tata Motors Ltd. ADR		31,433
	5,543	Tata Steel Ltd. GDR		36,168
				271,911
		Indonesia—8.7%
	300,800	PT Adaro Energy Tbk		30,831
	65,900	PT AKR Corporindo Tbk		27,189
	257,000	PT Aneka Tambang (Persero) Tbk		26,119
	31,050	PT Bank Central Asia Tbk		29,542
	42,400	PT Bank Mandiri Persero Tbk		36,032
	82,650	PT Bank Negara Indonesia (Persero) Tbk		34,421
	430,299	PT Bank Pan Indonesia Tbk(a)		32,380
	43,650	PT Bank Rakyat Indonesia (Persero) Tbk		37,377
	259,949	PT Bumi Serpong Damai		35,075
	106,850	PT Charoen Pokphand Indonesia Tbk		34,842

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Indonesia (continued)
	208,600	PT Global Mediacom Tbk	$	39,513
	253,299	PT Kalbe Farma Tbk		33,849
	325,399	PT Lippo Karawaci Tbk		30,115
	177,850	PT Media Nusantara Citra Tbk		41,765
	1,052,248	PT Pakuwon Jati Tbk		32,037
	23,950	PT Semen Indonesia (Persero) Tbk		30,762
	147,300	PT Telekomunikasi Indonesia Persero Tbk		28,857
				560,706
		Malaysia—0.4%
	39,100	UEM Sunrise Bhd		27,539
		Mauritius—0.5%
	46,500	Indorama Ventures PCL		34,200
		Mexico—3.2%
	10,400	Grupo Bimbo SAB de CV, Series A		28,668
	5,300	Grupo Carso SAB de CV, Series A1		26,992
	12,650	Grupo Financiero Inbursa SA de CV, Class O		32,386
	10,250	Grupo Mexico SAB de CV, Series B		30,854
	1,287	Industrias Penoles SAB de CV		29,949
	9,900	Kimberly-Clark de Mexico SAB de CV, Class A		25,822
	18,500	Minera Frisco SAB de CV, Class A(a)		33,809
				208,480
		Netherlands—0.5%
	12,350	PT Unilever Indonesia Tbk		31,245
		Philippines—2.8%
	18,795	Aboitiz Equity Ventures, Inc.		23,863
	1,990	Ayala Corp.		27,854
	45,400	Ayala Land, Inc.		30,654
	327,999	Megaworld Corp.		34,212
	1,815	SM Investments Corp.		29,517
	82,650	SM Prime Holdings, Inc.		30,257
				176,357
		Poland—0.9%
	1,375	Grupa Azoty SA		27,227
	807	KGHM Polska Miedz SA		29,174
				56,401
		Russia—0.5%
	4,259	Severstal OAO GDR		29,983
		Saudi Arabia—0.5%
	10,699	Turk Telekomunikasyon AS		31,985
		South Africa—12.0%
	1,488	African Rainbow Minerals Ltd.		27,935
	1,115	Aspen Pharmacare Holdings Ltd.		29,642
	803	Assore Ltd.		31,001
	2,538	Barloworld Ltd.		27,621
	1,146	Bidvest Group Ltd.		31,395
	3,749	Discovery Ltd.		32,466
	1,902	Exxaro Resources Ltd.		25,895
	8,710	FirstRand Ltd.		31,975
	3,226	Foschini Group Ltd. (The)		33,237
	14,012	Growthpoint Properties Ltd. REIT		32,332
	3,147	Impala Platinum Holdings Ltd.		35,381
	1,900	Imperial Holdings Ltd.		35,351
	3,529	Investec Ltd.		30,967
	2,333	Liberty Holdings Ltd.		27,920

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

10

PowerShares S&P Emerging Markets High Beta Portfolio (EEHB) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		South Africa (continued)
	7,523	Life Healthcare Group Holdings Ltd.	$	29,839
	13,151	MMI Holdings Ltd.		32,968
	2,024	Mr. Price Group Ltd.		30,424
	1,369	MTN Group Ltd.		27,404
	224	Naspers Ltd., Class N		21,100
	1,578	Remgro Ltd.		31,714
	6,925	RMB Holdings Ltd.		33,148
	6,377	Sanlam Ltd.		34,061
	2,174	Standard Bank Group Ltd.		28,505
	4,225	Truworths International Ltd.		33,840
	5,525	Woolworths Holdings Ltd.		37,511
				773,632
		South Korea—7.2%
	950	Doosan Heavy Industries & Construction Co. Ltd.		31,995
	2,900	Doosan Infracore Co. Ltd.(a)		34,941
	786	GS Engineering & Construction Corp.(a)		27,612
	545	Hyundai Steel Co.		35,602
	91	Korea Zinc Co. Ltd.		29,987
	760	Korean Air Lines Co. Ltd.(a)		24,492
	310	Kumho Petro Chemical Co. Ltd.		26,191
	125	LG Chem Ltd.		31,816
	191	LG Chem Ltd. (Preference Shares)		27,634
	176	Lotte Chemical Corp.		27,764
	39	Naver Corp.		27,854
	414	Samsung Electro-Mechanics Co. Ltd.		26,524
	20	Samsung Electronics Co. Ltd.		25,994
	425	Samsung Engineering Co. Ltd.(a)		31,794
	710	SK Hynix, Inc.(a)		27,588
	2,380	Woori Finance Holdings Co. Ltd.(a)		26,833
				464,621
		Spain—1.0%
	5,200	Banco Santander Brasil SA		34,668
	12,700	Grupo Financiero Santander Mexico SAB de CV, Class B		30,321
				64,989
		Thailand—9.0%
	4,450	Airports of Thailand PCL		26,816
	67,000	Bangkok Dusit Medical Services PCL		30,643
	27,500	Berli Jucker PCL		40,579
	23,800	Central Pattana PCL		33,280
	28,000	Charoen Pokphand Foods PCL		23,362
	125,914	Home Product Center PCL		34,825
	262,850	IRPC PCL		29,891
	144,800	Jasmine International PCL		37,140
	5,300	Kasikornbank PCL		31,364
	55,100	Krung Thai Bank PCL		30,819
	43,200	Land and Houses PCL NVDR		13,216
	86,500	Land and Houses PCL		26,463
	36,300	Minor International PCL		27,595
	69,100	Pruksa Real Estate PCL		47,832
	19,300	Robinson Department Store PCL		30,119
	2,200	Siam City Cement PCL		26,242
	6,600	Siam Commercial Bank PCL		33,755
	58,100	Thai Airways International PCL(a)		23,341
	151,550	True Corp. PCL(a)		31,612
				578,894

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Turkey—15.8%
	14,649	Akbank TAS	$	50,988
	2,860	Anadolu Efes Biracilik ve Malt Sanayii AS		34,105
	6,833	Arcelik AS		41,952
	7,308	Aselsan Elektronik Sanayi Ve Ticaret AS		32,340
	58,814	Asya Katilim Bankasi AS(a)		44,998
	6,671	Aygaz AS		27,410
	1,403	BIM Birlesik Magazalar AS		32,302
	1,324	Coca-Cola Icecek AS		30,921
	29,374	Emlak Konut Gayrimenkul Yatirim Ortakligi AS, Class REIT		38,288
	11,966	Haci Omer Sabanci Holding AS		50,296
	10,143	Koc Holding AS		45,173
	4,309	Koza Altin Isletmeleri AS		42,838
	3,704	Tav Havalimanlari Holding AS		29,563
	6,326	Tofas Turk Otomobil Fabrikasi AS		38,540
	1,950	Tupras Turkiye Petrol Rafine AS		43,745
	30,864	Turk Ekonomi Bankasi AS(a)		30,319
	11,699	Turk Hava Yollari AO		37,295
	1,160	Turk Traktor ve Ziraat Makineleri AS		33,227
	13,717	Turkiye Garanti Bankasi AS		50,077
	7,826	Turkiye Halk Bankasi AS		52,114
	19,690	Turkiye Is Bankasi, Class C		46,217
	32,706	Turkiye Sise ve Cam Fabrikalari AS		40,778
	24,870	Turkiye Vakiflar Bankasi TAO, Class D		51,798
	24,748	Yapi ve Kredi Bankasi AS		51,310
	4,157	Yazicilar Holding AS, Class A		37,694
				1,014,288
		United Kingdom—1.8%
	721	Anglo American Platinum Ltd.(a)		34,232
	785	Kumba Iron Ore Ltd.		27,889
	5,791	Migros Ticaret AS(a)		51,964
				114,085
		United States—1.2%
	4,073	Ford Otomotiv Sanayi AS		45,878
	2,322	Massmart Holdings Ltd.		30,703
				76,581
		Total Common Stocks and Other Equity Interests (Cost $6,201,550)		6,425,286
		Warrants—0.0%
		Thailand—0.0%
	8,640	Land and Houses PCL NVDR, expiring 05/05/17(a) (Cost $0)		1,709
		Rights—0.0%
		South Korea—0.0%
	253	GS Engineering & Construction Corp., expiring 05/23/14(a) (Cost $0)		2,130
		Total Investments (Cost $6,201,550)—99.9%		6,429,125
		Other assets less liabilities—0.1%		3,991
		Net Assets—100.0%	$	6,433,116

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

11

PowerShares S&P Emerging Markets High Beta Portfolio (EEHB) (continued)

April 30, 2014

(Unaudited)

Investment Abbreviations:

ADR—American Depositary Receipt

GDR—Global Depositary Receipt

NVDR—Non-voting Depositary Receipt

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Non-income producing security.

^(b)  Security purchased or received in a transaction exempt from registration under the Securities Act of 1933 (the “1933 Act”), as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at April 30, 2014 was $30,566. which represented 0.48% of the Fund’s Net Assets.

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

12

Portfolio Composition

PowerShares S&P Emerging Markets Low Volatility Portfolio (EELV)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Financials	31.8
Consumer Staples	11.2
Telecommunication Services	10.0
Industrials	9.6
Energy	9.2
Materials	8.3
Information Technology	7.3
Consumer Discretionary	6.7
Utilities	3.6
Health Care	2.2
Other Assets Less Liabilities	0.1

Schedule of Investments

PowerShares S&P Emerging Markets Low Volatility Portfolio (EELV)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Belgium—0.4%
	131,000	Ambev SA	$	955,413
		Brazil—9.4%
	74,300	Banco Bradesco SA (Preference Shares)		1,103,388
	49,700	BRF SA		1,123,001
	125,800	CCR SA		983,907
	23,000	Cia Brasileira de Distribuicao (Preference Shares)		1,085,707
	73,900	Cielo SA		1,306,092
	72,300	Cosan Ltd.		879,912
	56,000	Cosan SA Industria e Comercio		958,160
	118,400	CPFL Energia SA		1,001,787
	172,400	EcoRodovias Infraestrutura e Logistica SA		1,028,252
	137,200	Hypermarcas SA		1,009,839
	70,300	Itau Unibanco Holding SA (Preference Shares)		1,157,538
	258,400	Itausa—Investimentos Itau SA (Preference Shares)		1,133,054
	142,400	Lojas Americanas SA (Preference Shares)		1,079,970
	26,800	M Dias Branco SA		1,151,167
	50,100	Multiplan Empreendimentos Imobiliarios SA		1,104,691
	59,900	Porto Seguro SA		877,749
	122,500	Transmissora Alianca de Energia Eletrica SA		1,078,682
	49,700	Ultrapar Participacoes SA		1,244,863
	106,600	WEG SA		1,283,521
				20,591,280

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Chile—2.7%
	8,441,329	Banco de Chile	$	1,084,398
	82,399	Cia Cervecerias Unidas SA		972,380
	82,534	Empresa Nacional de Telecomunicaciones SA (Entel)		1,013,020
	404,224	Empresas CMPC SA		899,605
	73,537	Empresas COPEC SA		948,587
	108,423	S.A.C.I. Falabella		922,152
				5,840,142
		China—6.6%
	2,020,460	Agricultural Bank of China Ltd., H-Shares		846,978
	2,318,546	Bank of China Ltd., H-Shares		1,019,785
	1,486,756	Bank of Communications Co. Ltd., H-Shares		924,326
	1,311,438	China Construction Bank Corp., H-Shares		904,982
	146,991	China Mobile Ltd.		1,397,323
	2,233,236	China Telecom Corp. Ltd., H-Shares		1,146,453
	675,112	China Unicom (Hong Kong) Ltd.		1,036,242
	561,825	CNOOC Ltd.		929,026
	1,531,669	Industrial & Commercial Bank of China Ltd., H-Shares		912,737
	2,202,896	People’s Insurance Co. (Group) of China Ltd., H-Shares		843,896
	910,610	PetroChina Co. Ltd., H-Shares		1,054,745
	261,209	Shanghai Industrial Holdings Ltd.		808,608
	320,815	Shanghai Pharmaceuticals Holding Co. Ltd., Class H		587,600
	1,271,835	SOHO China Ltd.		1,012,173

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

13

PowerShares S&P Emerging Markets Low Volatility Portfolio (EELV) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		China (continued)
	817,018	Sun Art Retail Group Ltd.	$	1,064,368
				14,489,242
		Colombia—1.9%
	78,100	Bancolombia SA (Preference Shares)		1,107,543
	182,047	Cementos Argos SA		1,017,575
	492,669	Ecopetrol SA		919,221
	60,339	Grupo de Inversiones Suramericana SA		1,179,829
				4,224,168
		France—0.9%
	3,646	Komercni Banka AS		839,263
	73,900	Tractebel Energia SA		1,083,230
				1,922,493
		Hungary—1.0%
	17,473	MOL Hungarian Oil & Gas PLC		1,001,188
	62,106	Richter Gedeon Nyrt		1,060,582
				2,061,770
		Indonesia—0.6%
	8,044,591	PT Trada Maritime TBK(a)		1,280,288
		Italy—1.6%
	13,909	Bank Pekao SA		890,575
	839,547	Empresa Nacional de Electricidad SA		1,241,771
	3,855,365	Enersis SA		1,246,718
				3,379,064
		Malaysia—15.2%
	699,900	AMMB Holdings Bhd		1,538,901
	991,100	Axiata Group Bhd		2,042,598
	58,600	British American Tobacco Malaysia Bhd		1,098,245
	894,500	Bumi Armada Bhd		1,095,698
	505,800	CIMB Group Holdings Bhd		1,163,239
	958,600	DiGi.Com Bhd		1,626,288
	721,100	Gamuda Bhd		1,017,998
	317,600	Genting Bhd		953,140
	665,600	Genting Malaysia Bhd		860,154
	1,123,600	IHH Healthcare Bhd(a)		1,379,769
	699,000	IOI Corp. Bhd		1,070,280
	173,300	Kuala Lumpur Kepong Bhd		1,284,293
	496,000	Malayan Banking Bhd		1,503,721
	345,700	Malaysia Airports Holdings Bhd		853,267
	948,000	Maxis Bhd		2,017,639
	765,200	Petronas Chemicals Group Bhd		1,577,031
	133,400	Petronas Dagangan Bhd		1,237,795
	167,600	Petronas Gas Bhd		1,206,125
	531,200	Public Bank Bhd		3,276,181
	852,300	Sime Darby Bhd		2,463,853
	993,900	Telekom Malaysia Bhd		1,887,056
	275,400	Tenaga Nasional Bhd		1,003,601
	309,900	UMW Holdings Bhd		1,021,137
				33,178,009
		Mexico—2.2%
	848,378	America Movil SAB de CV, Series L		854,924
	177,292	Arca Continental SAB de CV		1,126,954
	86,419	Coca-Cola Femsa SAB de CV, Series L		967,782
	108,873	Fomento Economico Mexicano SAB de CV		988,666
	143,147	Grupo Televisa SAB de CV, Series CPO		937,471
				4,875,797

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Morocco—0.6%
	33,065	Attijariwafa Bank	$	1,291,375
		Philippines—0.4%
	14,957	Philippine Long Distance Telephone Co.		966,266
		Poland—0.8%
	69,649	Powszechna Kasa Oszczednosci Bank Polski SA		954,711
	6,104	Powszechny Zaklad Ubezpieczen SA		865,332
				1,820,043
		Russia—2.6%
	21,481	LUKOIL OAO ADR		1,135,271
	51,392	MMC Norilsk Nickel OJSC ADR		926,598
	54,302	Mobile TeleSystems OJSC ADR		910,101
	7,746	NovaTek OAO GDR		800,162
	160,572	Rosneft Oil Co. GDR		1,007,268
	111,871	Surgutneftegas OJSC ADR		792,047
				5,571,447
		South Africa—6.9%
	36,266	Bidvest Group Ltd.		993,504
	97,113	Coronation Fund Managers Ltd.		935,890
	93,168	Distell Group Ltd.		1,105,862
	276,272	FirstRand Ltd.		1,014,198
	111,988	Investec Ltd.		982,686
	75,913	Liberty Holdings Ltd.		908,478
	127,943	Mediclinic International Ltd.		892,952
	995,789	Redefine Properties Ltd. REIT		939,892
	50,657	Remgro Ltd.		1,018,080
	358,442	RMI Holdings		1,021,091
	18,947	Sasol Ltd.		1,062,014
	62,853	Shoprite Holdings Ltd.		1,048,570
	91,405	Spar Group Ltd. (The)		1,071,917
	84,403	Standard Bank Group Ltd.		1,106,656
	34,674	Tiger Brands Ltd.		925,658
				15,027,448
		South Korea—16.4%
	855	Amorepacific Corp.		1,104,640
	17,095	Cheil Industries, Inc.		1,090,255
	147,430	Daewoo Securities Co. Ltd.(a)		1,207,063
	17,139	Dongbu Insurance Co. Ltd.		945,440
	6,710	Doosan Corp.		863,670
	19,627	GS Holdings		913,635
	34,610	Hanwha Corp.		1,006,513
	7,259	Hyundai Department Store Co. Ltd.		934,334
	17,816	Hyundai Engineering & Construction Co. Ltd.		962,095
	35,130	Hyundai Marine & Fire Insurance Co. Ltd.		1,030,135
	101,840	Industrial Bank of Korea		1,251,687
	27,580	KB Financial Group, Inc.		939,530
	15,617	Kia Motors Corp.		866,016
	26,050	Korea Aerospace Industries Ltd.		830,686
	36,840	KT Corp.		1,169,411
	15,910	KT&G Corp.		1,274,894
	3,760	LG Chem Ltd.		957,011
	22,597	LG Corp.		1,257,454
	16,578	LG Electronics, Inc.		1,102,205
	2,789	Lotte Shopping Co. Ltd.		863,718

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

14

PowerShares S&P Emerging Markets Low Volatility Portfolio (EELV) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		South Korea (continued)
	5,308	POSCO	$	1,579,609
	16,670	Samsung C&T Corp.		1,045,404
	31,790	Samsung Card Co. Ltd.		1,152,168
	14,041	Samsung Electro-Mechanics Co. Ltd.		899,559
	753	Samsung Electronics Co. Ltd.		978,689
	4,146	Samsung Fire & Marine Insurance Co. Ltd.		983,035
	11,392	Samsung Life Insurance Co. Ltd.		1,059,490
	39,827	Samsung Securities Co., Ltd.		1,516,687
	23,085	Samsung Techwin Co. Ltd.		1,293,546
	21,480	Shinhan Financial Group Co. Ltd.		935,449
	4,459	SK Holdings Co. Ltd.		789,700
	8,290	SK Innovation Co. Ltd.		946,695
	20,599	S-Oil Corp.		1,204,084
	103,970	Woori Investment & Securities Co. Ltd.		877,401
				35,831,908
		Spain—0.9%
	16,397,493	Banco Santander Chile		990,767
	49,900	Telefonica Brasil SA (Preference Shares)		1,047,589
				2,038,356
		Taiwan—26.0%
	842,000	Advanced Semiconductor Engineering, Inc.		975,893
	1,167,120	Asia Cement Corp.		1,534,362
	660,260	Cathay Financial Holding Co. Ltd.		931,422
	2,523,500	Chang Hwa Commercial Bank		1,466,568
	362,738	Cheng Shin Rubber Industry Co. Ltd.		1,040,238
	460,000	Cheng Uei Precision Industry Co. Ltd.		924,631
	348,000	Chicony Electronics Co. Ltd.		904,630
	3,876,000	China Development Financial Holding Corp.		1,110,252
	1,031,500	China Life Insurance Co. Ltd.		901,768
	2,414,000	China Petrochemical Development Corp.		951,275
	1,655,285	China Steel Corp.		1,389,545
	295,000	Chong Hong Construction Co.		813,746
	592,000	Chunghwa Telecom Co. Ltd.		1,846,692
	1,977,650	CTBC Financial Holding Co. Ltd.		1,175,535
	1,875,400	E.Sun Financial Holding Co. Ltd.		1,133,388
	2,256,000	Eva Airways Corp.(a)		1,143,016
	1,252,520	Far Eastern Department Stores Co. Ltd.		1,165,501
	1,134,880	Far Eastern New Century Corp.		1,161,262
	479,000	Far EasTone Telecommunications Co. Ltd.		1,035,787
	2,919,715	First Financial Holding Co. Ltd.		1,711,337
	382,090	Formosa Chemicals & Fibre Corp.		923,656
	370,000	Formosa Petrochemical Corp.		929,962
	442,400	Formosa Plastics Corp.		1,139,768
	479,000	Foxconn Technology Co. Ltd.		1,189,648
	739,000	Fubon Financial Holding Co. Ltd.		954,401
	447,000	Hon Hai Precision Industry Co. Ltd.		1,281,880
	55,000	MediaTek, Inc.		859,660
	1,558,000	Mega Financial Holding Co. Ltd.		1,191,794
	392,000	Nan Ya Plastics Corp.		858,044
	132,000	President Chain Store Corp.		981,323
	319,000	Quanta Computer, Inc.		874,667
	478,000	Ruentex Development Co. Ltd.		845,261
	368,000	Ruentex Industries Ltd.		873,753
	296,000	ScinoPharm Taiwan Ltd.		804,742
	3,962,018	Shin Kong Financial Holding Co. Ltd.		1,199,180

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Taiwan (continued)
	660,000	Siliconware Precision Industries Co.	$	967,117
	187,000	Simplo Technology Co. Ltd.		972,217
	2,461,878	SinoPac Financial Holdings Co. Ltd.		1,096,505
	3,107,825	Taishin Financial Holding Co. Ltd.		1,409,935
	594,000	Taiwan Cement Corp.		942,202
	4,063,931	Taiwan Cooperative Financial Holding		2,159,947
	659,000	Taiwan Fertilizer Co. Ltd.		1,309,358
	280,000	Taiwan Mobile Co. Ltd.		903,106
	230,000	Taiwan Semiconductor Manufacturing Co. Ltd.		902,543
	3,267,000	Tatung Co. Ltd.(a)		1,033,176
	571,340	Uni-President Enterprises Corp.		966,802
	2,716,000	Walsin Lihwa Corp.(a)		890,403
	985,000	Wistron Corp.		821,975
	897,000	WPG Holdings Ltd.		1,102,017
	1,854,000	Yuanta Financial Holding Co. Ltd.		923,992
	623,000	Yulon Motor Co. Ltd.		967,571
	357,000	Zhen Ding Technology Holding Ltd.		1,034,423
				56,627,876
		Thailand—0.5%
	108,938	PTT PCL		1,053,696
		United Kingdom—1.8%
	65,934	Barclays Africa Group Ltd.		964,172
	53,080	Nedbank Group Ltd.		1,134,820
	101,400	Souza Cruz SA		923,282
	73,210	Vodacom Group Ltd.		872,098
				3,894,372
		United States—0.5%
	428,325	Wal-Mart de Mexico SAB de CV, Series V		1,083,166
		Total Common Stocks and Other Equity Interests (Cost $215,038,352)		218,003,619
		Rights—0.0%
		Belgium—0.0%
	183	Ambev SA, expiring 05/29/14(a)		20
		Taiwan—0.0%
	170,834	E.Sun Financial Holding Co. Ltd., expiring 05/06/14(a)		18,386
		Total Rights (Cost $0)		18,406
		Total Investments (Cost $215,038,352)—99.9%		218,022,025
		Other assets less liabilities—0.1%		191,892
		Net Assets—100.0%	$	218,213,917

Investment Abbreviations:

ADR—American Depositary Receipt

GDR—Global Depositary Receipt

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Non-income producing security.

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

15

Portfolio Composition

PowerShares S&P International Developed High Beta Portfolio (IDHB)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Financials	35.1
Industrials	18.7
Materials	18.4
Consumer Discretionary	13.7
Information Technology	5.7
Utilities	3.3
Consumer Staples	2.5
Energy	1.7
Health Care	0.9
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments

PowerShares S&P International Developed High Beta Portfolio (IDHB)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Australia—2.0%
	7,131	Fortescue Metals Group Ltd.	$	33,367
	3,468	Iluka Resources Ltd.		28,566
	2,592	Newcrest Mining Ltd.(a)		25,121
	29,260	Qantas Airways Ltd.(a)		33,075
				120,129
		Austria—0.6%
	1,112	Erste Group Bank AG		37,297
		Bahamas—0.6%
	2,467	Vedanta Resources PLC		39,407
		Belgium—0.5%
	494	KBC Groep NV		30,076
		Canada—2.9%
	1,998	First Quantum Minerals Ltd.		39,743
	8,340	IAMGOLD Corp.		29,030
	7,804	Lundin Mining Corp.(a)		39,822
	5,175	Osisko Mining Corp.(a)		37,017
	1,422	Teck Resources Ltd., Class B(b)		32,367
				177,979
		Finland—1.4%
	1,790	Kemira Oyj		27,301
	2,908	Stora Enso Oyj, Class R		29,616
	1,653	UPM-Kymmene Oyj		28,879
				85,796
		France—4.7%
	1,187	AXA SA		30,901
	363	BNP Paribas SA		27,234

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		France (continued)
	848	Carrefour SA(b)	$	32,957
	242	Casino Guichard Perrachon SA		30,786
	1,743	Credit Agricole SA(a)		27,442
	384	Lafarge SA		35,061
	366	Renault SA		35,599
	326	Schneider Electric SA		30,534
	558	Societe Generale SA		34,662
				285,176
		Germany—4.9%
	162	Allianz SE		28,044
	248	Bayerische Motoren Werke AG		31,010
	301	Daimler AG		27,850
	674	Deutsche Bank AG		29,681
	347	HeidelbergCement AG		30,080
	715	Metro AG(a)		28,552
	289	Porsche Automobil Holding SE (Preference Shares)		31,796
	1,002	Scania AB, Class A		30,290
	1,003	Scania AB, Class B		30,320
	1,114	ThyssenKrupp AG(a)		31,695
				299,318
		Greece—1.4%
	47,025	Agricultural Bank of Greece(a)		0
	27,643	Alpha Bank AE(a)		26,715
	7,039	National Bank of Greece SA(a)		27,328
	14,448	Piraeus Bank SA(a)		34,056
	28,298	TT Hellenic Postbank SA(a)		0
				88,099

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

16

PowerShares S&P International Developed High Beta Portfolio (IDHB) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Ireland—1.3%
	1,023	CRH PLC	$	29,659
	2,086	James Hardie Industries PLC		26,518
	1,028	Smurfit Kappa Group PLC		22,856
				79,033
		Italy—4.0%
	5,466	Enel SpA		30,876
	8,847	Intesa Sanpaolo SpA		30,176
	5,621	Mediaset SpA(a)		30,957
	2,696	Mediobanca SpA(a)		29,830
	3,535	Mediolanum SpA		31,713
	1,222	Prysmian SpA		31,753
	3,031	UBI Banca-Unione di Banche Italiane ScpA		28,830
	3,323	UniCredit SpA		29,672
				243,807
		Japan—51.5%
	12,600	ACOM Co. Ltd.(a)		42,925
	2,700	Advantest Corp.		29,762
	1,400	AEON Financial Service Co. Ltd.		35,236
	4,500	Amada Co. Ltd.		32,555
	29,700	Aplus Financial Co. Ltd.(a)		39,251
	1,600	ASICS Corp.		31,154
	4,500	Bank of Kyoto Ltd. (The)		36,652
	2,100	Brother Industries Ltd.		29,336
	2,000	Chugoku Electric Power Co., Inc. (The)		26,177
	1,750	Credit Saison Co. Ltd.		37,244
	6,500	Daido Steel Co. Ltd.		31,752
	2,025	Dai-ichi Life Insurance Co. Ltd. (The)		28,031
	500	Daikin Industries Ltd.		28,884
	1,800	Dainippon Sumitomo Pharma Co. Ltd.		27,330
	4,000	Daiwa Securities Group, Inc.		29,956
	700	Dentsu, Inc.		28,781
	600	Don Quijote Co. Ltd.		31,601
	105	Fast Retailing Co. Ltd.		32,656
	1,100	Fuji Heavy Industries Ltd.		28,913
	7,000	Fukuoka Financial Group, Inc.		28,576
	6,000	Gunma Bank Ltd. (The)		31,894
	5,000	Hachijuni Bank Ltd. (The)		27,313
	2,250	Hino Motors Ltd.		29,648
	8,000	Hiroshima Bank Ltd. (The)		32,893
	1,350	Hitachi Capital Corp.		33,251
	1,850	Hitachi Construction Machinery Co. Ltd.		34,356
	3,500	Hokkaido Electric Power Co., Inc.(a)		21,415
	15,000	Hokuhoku Financial Group, Inc.		28,928
	1,700	Ibiden Co. Ltd.		30,638
	6,000	IHI Corp.		23,906
	2,600	Isetan Mitsukoshi Holdings Ltd.		32,325
	6,000	Isuzu Motors Ltd.		34,831
	1,700	Japan Exchange Group, Inc.		33,584
	9,750	Japan Steel Works Ltd. (The)		41,138
	1,575	JFE Holdings, Inc.		29,141
	6,000	Joyo Bank Ltd. (The)		29,192
	2,550	JTEKT Corp.		37,195
	8,000	Kajima Corp.		30,465
	2,700	Kansai Electric Power Co., Inc. (The)(a)		22,626
	7,000	Kawasaki Heavy Industries Ltd.		25,972
	4,000	Keikyu Corp.		33,206

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Japan (continued)
	25,000	Kobe Steel Ltd.	$	32,795
	1,275	Komatsu Ltd.		28,109
	1,250	Konami Corp.		28,512
	3,000	Kubota Corp.		38,590
	700	Kyocera Corp.		32,941
	2,200	Kyushu Electric Power Co., Inc.(a)		22,205
	650	Makita Corp.		34,489
	3,500	Marui Group Co. Ltd.		31,077
	6,000	Mazda Motor Corp.		26,843
	3,000	Minebea Co. Ltd.		24,288
	6,400	Mitsubishi Chemical Holdings Corp.		25,625
	3,000	Mitsubishi Electric Corp.		34,156
	1,000	Mitsubishi Estate Co. Ltd.		22,653
	4,500	Mitsubishi Gas Chemical Co., Inc.		25,991
	5,000	Mitsubishi Heavy Industries Ltd.		26,334
	3,000	Mitsubishi Logistics Corp.		43,054
	3,100	Mitsubishi Motors Corp.		33,564
	4,800	Mitsubishi UFJ Financial Group, Inc.		25,469
	6,100	Mitsubishi UFJ Lease & Finance Co. Ltd.		30,037
	11,500	Mitsui Chemicals, Inc.		28,032
	1,000	Mitsui Fudosan Co. Ltd.		29,574
	7,000	Mitsui OSK Lines Ltd.		23,368
	1,475	MS&AD Insurance Group Holdings, Inc.		33,067
	11,000	Nippon Steel & Sumitomo Metal Corp.		28,860
	12,000	Nishi-Nippon City Bank Ltd. (The)		27,254
	1,200	NKSJ Holdings, Inc.		29,944
	5,000	Nomura Holdings, Inc.		28,781
	3,000	NSK Ltd.		31,571
	3,300	NTT Urban Development Corp.		29,010
	950	Olympus Corp.(a)		29,016
	2,450	ORIX Corp.		35,425
	600	Rohm Co. Ltd.		28,634
	3,550	SBI Holdings, Inc.		40,487
	10,000	Sharp Corp.(a)		25,061
	2,200	Shikoku Electric Power Co., Inc.(a)		25,758
	18,000	Shinsei Bank Ltd.		35,066
	3,000	Shizuoka Bank Ltd. (The)		28,664
	15,900	Sojitz Corp.		25,060
	7,000	Sumitomo Chemical Co. Ltd.		26,246
	6,500	Sumitomo Heavy Industries Ltd.		27,616
	3,250	Sumitomo Metal Mining Co. Ltd.		49,028
	7,000	Sumitomo Mitsui Trust Holdings, Inc.		28,850
	900	Sumitomo Realty & Development Co. Ltd.		34,890
	1,250	Suzuki Motor Corp.		32,244
	2,700	T&D Holdings, Inc.		32,220
	3,000	Takashimaya Co. Ltd.		28,429
	700	TDK Corp.		29,878
	1,400	THK Co. Ltd.		29,645
	2,800	Tohoku Electric Power Co., Inc.		26,643
	1,050	Tokio Marine Holdings, Inc.		30,950
	7,525	Tokyo Electric Power Co., Inc.(a)		28,435
	4,000	Tokyo Tatemono Co. Ltd.		31,875
	7,500	Tosoh Corp.		28,634
	2,025	Toyo Seikan Group Holdings Ltd.		30,112
	600	Toyota Industries Corp.		27,665
	1,350	Toyota Tsusho Corp.		35,538
	1,700	Universal Entertainment Corp.		30,206
	600	Yakult Honsha Co., Ltd.		32,423

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

17

PowerShares S&P International Developed High Beta Portfolio (IDHB) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Japan (continued)
	2,400	Yamaha Motor Co. Ltd.	$	37,051
	2,600	Yaskawa Electric Corp.		29,347
	1,900	Yokogawa Electric Corp.		25,947
	3,000	Yokohama Rubber Co. Ltd. (The)		26,814
				3,150,739
		Liechtenstein—0.5%
	2,123	Antofagasta PLC		28,212
		Mexico—0.5%
	2,016	Fresnillo PLC		28,986
		Netherlands—0.9%
	2,175	ING Groep NV CVA(a)		30,866
	458	Randstad Holding NV		26,611
				57,477
		Norway—3.1%
	906	Aker ASA, Class A		30,575
	1,579	DNB ASA		27,863
	2,902	Petroleum Geo-Services ASA		34,910
	3,960	Prosafe SE		34,772
	5,099	Storebrand ASA(a)		28,525
	982	TGS Nopec Geophysical Co. ASA		33,799
				190,444
		Portugal—1.0%
	99,892	Banco Comercial Portugues SA, Class R(a)		30,333
	18,164	Banco Espirito Santo SA(a)		32,136
				62,469
		Spain—3.3%
	743	ACS, Actividades de Construccion y Servicios SA		31,808
	2,415	Banco Bilbao Vizcaya Argentaria SA		29,618
	3,238	Banco Santander SA		32,177
	26,349	Bankia SA(a)		53,669
	1,438	Leighton Holdings Ltd.		25,422
	6,857	Mapfre SA		28,855
				201,549
		Sweden—7.4%
	1,040	Alfa Laval AB(b)		27,528
	1,089	Atlas Copco AB, Class A(b)		31,449
	1,194	Atlas Copco AB, Class B(b)		32,356
	1,360	Electrolux AB, Series B		37,606
	806	Hexagon AB, Class B		25,626
	893	Investor AB, Class A		33,846
	852	Investor AB, Class B		32,880
	503	Melker Schorling AB		27,146
	667	Modern Times Group AB, Class B		29,548
	2,113	Sandvik AB		29,749
	1,943	Skandinaviska Enskilda Banken AB, Class A		26,699
	1,002	Svenska Cellulosa AB SCA, Class A		27,891
	1,016	Swedbank AB, Class A		26,924
	1,911	Volvo AB, Class A		30,526
	1,904	Volvo AB, Class B		29,947
				449,721
		Switzerland—3.5%
	348	Compagnie Financiere Richemont SA		35,296
	873	Credit Suisse Group AG		27,674

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Switzerland (continued)
	6,414	Glencore Xstrata PLC	$	34,495
	339	Holcim Ltd.		31,033
	2,985	STMicroelectronics NV		28,517
	250	Swatch Group AG (The)		30,098
	46	Swatch Group AG (The)-BR		29,493
				216,606
		United Kingdom—4.0%
	1,354	Anglo American PLC		36,169
	1,914	ARM Holdings PLC		28,812
	1,188	Prudential PLC		27,252
	555	Rio Tinto PLC		30,218
	5,911	Royal Bank of Scotland Group PLC(a)		29,823
	700	Schroders PLC		30,212
	861	Schroders PLC NVTG		28,335
	8,020	Turquoise Hill Resources Ltd.(a)		31,132
				241,953
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $6,068,214)—100.0%		6,114,273
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—1.4%
	89,076	Invesco Liquid Assets Portfolio—Institutional Class(c)(d) (Cost $89,076)		89,076
		Total Investments (Cost $6,157,290)—101.4%		6,203,349
		Other assets less liabilities—(1.4)%		(87,490	)
		Net Assets—100.0%	$	6,115,859

Investment Abbreviations:

CVA—Dutch Certificates

NVTG—Non-voting Shares

Notes to Schedule of Investments:

^(a) Non-income producing security.

^(b) All or a portion of this security was out on loan at April 30, 2014.

^(c) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

^(d)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2G. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of April 30, 2014.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Citibank	$	109,382	$	(89,076	)	$	20,306

* Amount does not include excess collateral received, if any.

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

18

Portfolio Composition

PowerShares S&P International Developed Low Volatility Portfolio (IDLV)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Financials	34.1
Industrials	14.0
Consumer Staples	12.0
Energy	9.8
Utilities	8.5
Consumer Discretionary	8.0
Health Care	4.8
Telecommunication Services	4.8
Materials	2.5
Information Technology	1.4
Money Market Fund Plus Other Assets Less Liabilities	0.1

Schedule of Investments

PowerShares S&P International Developed Low Volatility Portfolio (IDLV)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Australia—9.6%
	65,890	AGL Energy Ltd.	$	962,764
	134,867	APA Group		832,240
	30,496	ASX Ltd.		1,004,220
	203,458	Aurizon Holdings Ltd.		976,502
	28,643	Australia & New Zealand Banking Group Ltd.		914,805
	496,839	CFS Retail Property Trust Group REIT		925,295
	14,200	Commonwealth Bank of Australia		1,038,088
	12,322	CSL Ltd.		781,261
	240,052	GPT Group REIT		871,887
	27,809	National Australia Bank Ltd.		909,555
	71,397	Suncorp Group Ltd.		861,310
	241,980	Sydney Airport		946,151
	317,284	Tatts Group Ltd.		887,818
	238,728	Telstra Corp. Ltd.		1,154,629
	157,207	Transurban Group		1,044,660
	23,337	Wesfarmers Ltd.		923,514
	92,554	Westfield Group REIT		939,027
	322,342	Westfield Retail Trust REIT		952,744
	26,265	Westpac Banking Corp.		854,674
	30,518	Woolworths Ltd.		1,055,277
				18,836,421
		Belgium—1.7%
	9,057	Ackermans & van Haaren NV		1,170,403
	12,403	Groupe Bruxelles Lambert SA(a)		1,253,172
	16,853	Umicore SA(a)		825,458
				3,249,033

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Canada—25.1%
	23,542	AltaGas Ltd.(a)	$	1,001,787
	30,636	ARC Resources Ltd.(a)		907,816
	20,338	Bank of Montreal(a)		1,400,096
	23,412	Bank of Nova Scotia		1,420,784
	28,217	BCE, Inc.		1,254,717
	53,028	Bell Aliant, Inc.(a)		1,304,621
	23,387	Brookfield Asset Management, Inc., Class A		980,487
	59,275	CAE, Inc.		781,547
	16,371	Canadian Imperial Bank of Commerce		1,457,719
	16,913	Canadian National Railway Co.		989,398
	48,439	Canadian Oil Sands Ltd.		1,048,714
	22,781	Canadian Utilities Ltd., Class A(a)		840,496
	31,778	Cenovus Energy, Inc.		945,420
	32,166	CI Financial Corp.(a)		1,043,428
	26,705	Crescent Point Energy Corp.(a)		1,085,039
	40,959	Dundee, Class A REIT		1,077,859
	37,019	Emera, Inc.(a)		1,143,509
	24,696	Enbridge, Inc.		1,190,188
	2,022	Fairfax Financial Holdings Ltd.		880,508
	44,267	Fortis, Inc.		1,298,827
	12,438	George Weston Ltd.		935,924
	16,986	Gildan Activewear, Inc.		867,215
	37,894	Great-West Lifeco, Inc.		1,064,879
	50,849	H&R REIT(a)		1,069,383
	28,210	Husky Energy, Inc.		920,755

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

19

PowerShares S&P International Developed Low Volatility Portfolio (IDLV) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Canada (continued)
	20,176	IGM Financial, Inc.	$	1,003,606
	17,679	Intact Financial Corp.		1,159,376
	45,546	Jean Coutu Group (PJC), Inc. (The), Class A		916,772
	13,487	Keyera Corp.		895,897
	8,346	Magna International, Inc.		816,614
	16,819	Metro, Inc.		1,035,393
	36,269	National Bank of Canada		1,503,373
	17,526	Onex Corp.		999,706
	25,602	Pembina Pipeline Corp.(a)		1,004,764
	37,824	Power Corp. of Canada		1,063,601
	33,271	Power Financial Corp.		1,055,626
	39,383	RioCan REIT		977,174
	18,176	Royal Bank of Canada		1,211,513
	20,775	Saputo, Inc.		1,109,502
	38,395	Shaw Communications, Inc., Class B		928,869
	25,092	Sun Life Financial, Inc.		848,251
	31,623	Thomson Reuters Corp.		1,143,090
	18,796	Tim Hortons, Inc.		1,029,674
	31,386	Toronto-Dominion Bank (The)		1,508,027
	24,555	TransCanada Corp.		1,142,894
	16,016	Vermilion Energy, Inc.(a)		1,064,328
				49,329,166
		China—0.5%
	329,220	BOC Hong Kong (Holdings) Ltd.		963,942
		Denmark—1.8%
	27,872	DSV A/S		929,403
	97,461	TDC A/S		914,311
	9,364	Tryg A/S		888,902
	9,579	William Demant Holding(b)		857,173
				3,589,789
		Finland—0.4%
	16,668	Sampo Oyj, Class A(a)		827,143
		France—3.7%
	7,696	Air Liquide SA		1,100,168
	12,228	Danone SA		901,313
	2,507	Hermes International		879,969
	254,305	Parmalat SpA		882,926
	7,439	Pernod Ricard SA		892,311
	12,113	Safran SA		813,647
	15,419	Total SA		1,100,601
	10,667	Vinci SA(a)		803,706
				7,374,641
		Germany—5.2%
	11,109	Bayerische Motoren Werke AG (Preference Shares)		1,092,085
	10,232	Beiersdorf AG		1,025,165
	12,054	Fresenius Medical Care AG & Co. KGaA		828,152
	5,817	Fresenius SE & Co. KGaA		883,582
	8,160	Henkel AG & Co. KGaA (Preference Shares)		908,194
	5,374	Linde AG		1,113,599
	20,325	MAN SE		2,603,135
	10,989	SAP AG		884,343
	6,604	Siemens AG		869,893
				10,208,148

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Hong Kong—5.4%
	50,761	Cheung Kong (Holdings) Ltd.	$	864,257
	129,330	Cheung Kong Infrastructure Holdings Ltd.		844,089
	179,444	CLP Holdings Ltd.		1,435,024
	173,693	Hang Lung Group Ltd.		942,078
	422,075	Hong Kong & China Gas Co. Ltd.		973,410
	57,369	Hong Kong Exchanges & Clearing Ltd.		1,033,742
	171,761	Link (The) REIT		854,058
	250,101	MTR Corp. Ltd.		943,583
	101,006	Power Assets Holdings Ltd.		872,892
	76,655	Sun Hung Kai Properties Ltd.		965,498
	82,902	Swire Pacific Ltd., Class A		957,033
				10,685,664
		Ireland—0.5%
	11,743	Kerry Group PLC, Class A		926,460
		Israel—2.3%
	174,838	Bank Hapoalim BM		986,504
	225,352	Bank Leumi Le-Israel(b)		880,886
	422,885	Israel Discount Bank Ltd., Class A(b)		755,043
	69,822	Mizrahi Tefahot Bank Ltd.		932,762
	20,735	NICE Systems Ltd.		899,777
				4,454,972
		Italy—1.5%
	33,808	Eni SpA		877,058
	160,776	Snam SpA		965,706
	190,770	Terna-Rete Elettrica Nationale SpA		1,031,597
				2,874,361
		Japan—1.0%
	56,998	Kagome Co. Ltd.(a)		964,753
	36,235	McDonald’s Holdings Co. Japan Ltd.(a)		1,003,513
				1,968,266
		Netherlands—2.9%
	13,254	Heineken Holding NV(a)		845,357
	12,292	Heineken NV		852,173
	42,341	Reed Elsevier NV(a)		863,299
	26,168	Royal Dutch Shell PLC, Class B		1,113,487
	25,723	Unilever NV CVA		1,101,550
	32,596	Wolters Kluwer NV(a)		907,083
				5,682,949
		New Zealand—0.8%
	216,782	Auckland International Airport Ltd.		739,363
	113,002	Ryman Healthcare Ltd.		839,742
				1,579,105
		Norway—1.4%
	167,846	Norsk Hydro ASA		896,422
	34,810	Statoil ASA		1,054,335
	37,746	Telenor ASA		884,063
				2,834,820
		Portugal—0.9%
	179,873	EDP-Energias de Portugal SA		872,909
	50,844	Galp Energia SGPS SA		880,164
				1,753,073

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

20

PowerShares S&P International Developed Low Volatility Portfolio (IDLV) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Singapore—9.8%
	708,087	CapitaCommercial Trust REIT	$	902,489
	367,391	CapitaLand Ltd.		936,513
	599,962	CapitaMall Trust REIT		953,459
	122,320	City Developments Ltd.		1,055,264
	83,662	DBS Group Holdings Ltd.		1,128,955
	1,254,789	Hutchison Port Holdings Trust, Class U		853,257
	140,121	Keppel Corp. Ltd.		1,175,349
	147,627	Oversea-Chinese Banking Corp. Ltd.		1,134,823
	361,237	SATS Ltd.		912,193
	269,313	SembCorp Industries Ltd.		1,152,038
	339,470	SembCorp Marine Ltd.		1,100,604
	135,809	Singapore Airlines Ltd.		1,122,952
	212,537	Singapore Exchange Ltd.		1,171,590
	311,581	Singapore Press Holdings Ltd.		1,039,968
	292,625	Singapore Telecommunications Ltd.		892,782
	278,519	StarHub Ltd.		920,742
	614,656	Suntec REIT		839,714
	62,006	United Overseas Bank Ltd.		1,074,800
	321,594	Wilmar International Ltd.		871,008
				19,238,500
		Spain—1.7%
	35,927	Abertis Infraestructuras SA		807,245
	22,015	Amadeus IT Holding SA, Class A		914,372
	39,034	Ferrovial SA		865,961
	118,192	Iberdrola SA		825,131
				3,412,709
		Sweden—4.2%
	17,013	Assa Abloy AB, Class B		898,568
	19,971	Hennes & Mauritz AB, Class B(a)		811,478
	48,301	Industrivarden AB, Class C		1,007,985
	25,562	Investor AB, Class B(a)		986,488
	22,140	Lundbergforetagen AB, Class B		1,031,087
	56,203	Skandinaviska Enskilda Banken AB, Class A		772,296
	44,372	Skanska AB, Class B		1,012,462
	15,408	Svenska Handelsbanken AB, Class A		771,476
	127,524	TeliaSonera AB		922,836
				8,214,676
		Switzerland—4.8%
	33,073	ABB Ltd.(b)		794,098
	6,298	Kuehne + Nagel International AG		859,810
	14,605	Nestle SA		1,127,162
	12,521	Novartis AG		1,085,073
	2,922	Roche Holding AG		856,239
	334	SGS SA		832,677
	10,039	Swiss Re AG		876,253
	1,900	Swisscom AG		1,154,523
	2,358	Syngenta AG(b)		933,612
	3,491	Zurich Insurance Group AG		999,581
				9,519,028
		United Kingdom—14.2%
	31,538	Admiral Group PLC		744,484
	44,994	AMEC PLC		938,287
	15,337	AstraZeneca PLC		1,207,850
	139,208	BP PLC		1,173,418
	17,880	British American Tobacco PLC		1,031,636
	76,472	British Land Co. PLC REIT		891,621
	35,469	Bunzl PLC		1,006,771

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		United Kingdom (continued)
	157,950	Centrica PLC	$	880,131
	63,544	Compass Group PLC		1,010,740
	27,410	Diageo PLC		841,196
	37,022	GlaxoSmithKline PLC		1,020,220
	89,588	Hammerson PLC REIT		863,017
	68,332	Hang Seng Bank Ltd.		1,113,182
	83,694	HSBC Holdings PLC		853,723
	20,679	Imperial Tobacco Group PLC		892,841
	18,168	Intertek Group PLC		891,490
	148,745	J Sainsbury PLC		843,156
	50,373	Land Securities Group PLC REIT		903,309
	208,398	Legal & General Group PLC		745,304
	73,563	National Grid PLC		1,044,026
	7,152	Next PLC		787,389
	10,538	Reckitt Benckiser Group PLC		849,661
	62,666	Reed Elsevier PLC		922,704
	67,658	Smith & Nephew PLC		1,050,473
	35,830	Smiths Group PLC		807,685
	41,694	SSE PLC		1,073,637
	14,329	Telenet Group Holding NV		839,318
	161,040	Tesco PLC		796,602
	23,344	Unilever PLC		1,042,199
	65,293	United Utilities Group PLC		877,594
				27,943,664
		United States—0.5%
	21,948	Imperial Oil Ltd.		1,070,351
		Total Common Stocks and Other Equity Interests (Cost $182,590,722)		196,536,881
		Rights—0.0%
		Australia—0.0%
	35,341	Transurban Group, expiring 05/23/14(b) (Cost $0)		13,815
		Warrants—0.0%
		Hong Kong—0.0%
	6,091	Sun Hung Kai Properties Ltd., expiring 04/22/16(b) (Cost $1,885)		4,101
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $182,592,607)—99.9%		196,554,797
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—7.4%
	14,468,973	Invesco Liquid Assets Portfolio—Institutional Class(c)(d) (Cost $14,468,973)		14,468,973
		Total Investments (Cost $197,061,580)—107.3%		211,023,770
		Other assets less liabilities—(7.3)%		(14,290,132	)
		Net Assets—100.0%	$	196,733,638

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

21

PowerShares S&P International Developed Low Volatility Portfolio (IDLV) (continued)

April 30, 2014

(Unaudited)

Investment Abbreviations:

CVA—Dutch Certificates

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  All or a portion of this security was out on loan at April 30, 2014.

^(b) Non-income producing security.

^(c) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

^(d) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2G. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of April 30, 2014.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman	$	13,782,138	$	(13,782,138	)	$	—

* Amount does not include excess collateral received, if any.

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

22

Portfolio Composition

PowerShares S&P MidCap Low Volatility Portfolio (XMLV)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Financials	41.9
Utilities	17.4
Industrials	10.8
Health Care	9.9
Materials	6.6
Information Technology	6.1
Consumer Staples	3.8
Consumer Discretionary	2.2
Telecommunication Services	1.2
Money Market Fund Plus Other Assets Less Liabilities	0.1

Schedule of Investments^(a)

PowerShares S&P MidCap Low Volatility Portfolio (XMLV)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Consumer Discretionary—2.2%
	5,687	Cheesecake Factory, Inc. (The)	$	255,290
	14,625	Service Corp. International		274,511
				529,801
		Consumer Staples—3.8%
	5,090	Church & Dwight Co., Inc.		351,261
	7,485	Hillshire Brands Co. (The)		266,840
	3,077	Lancaster Colony Corp.		291,946
				910,047
		Financials—41.9%
	3,746	Alexandria Real Estate Equities, Inc. REIT		276,530
	827	Alleghany Corp.(b)		337,399
	6,425	American Financial Group, Inc.		375,413
	7,337	Arthur J. Gallagher & Co.		330,312
	9,278	Aspen Insurance Holdings Ltd.		424,747
	15,623	Associated Banc-Corp.		274,184
	5,260	Bank of Hawaii Corp.		290,194
	13,367	BioMed Realty Trust, Inc. REIT		279,370
	9,759	Brown & Brown, Inc.		290,623
	6,638	Commerce Bancshares, Inc.		288,620
	4,231	Cullen/Frost Bankers, Inc.		323,291
	11,361	Equity One, Inc. REIT		255,963
	1,990	Everest Re Group Ltd.		314,480
	2,564	Federal Realty Investment Trust REIT		301,373
	4,490	Hanover Insurance Group, Inc. (The)		262,440
	8,487	HCC Insurance Holdings, Inc.		389,893

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	7,172	Highwoods Properties, Inc. REIT	$	289,390
	4,739	Home Properties, Inc. REIT		291,922
	6,857	Kemper Corp.		270,234
	4,810	Kilroy Realty Corp. REIT		286,532
	6,272	Mercury General Corp.		300,178
	4,134	Mid-America Apartment Communities, Inc. REIT		287,933
	6,381	MSCI, Inc., Class A(b)		258,686
	19,020	New York Community Bancorp, Inc.		293,098
	5,925	Primerica, Inc.		271,898
	4,414	Prosperity Bancshares, Inc.		260,426
	3,924	Reinsurance Group of America, Inc.		301,010
	3,478	RenaissanceRe Holdings Ltd.		352,008
	2,862	SL Green Realty Corp. REIT		299,680
	4,028	StanCorp Financial Group, Inc.		246,111
	10,125	UDR, Inc. REIT		261,833
	8,977	W.R. Berkley Corp.		397,142
	5,675	Westamerica Bancorp.		288,404
				9,971,317
		Health Care—9.9%
	2,069	Bio-Rad Laboratories, Inc., Class A(b)		254,921
	2,597	Covance, Inc.(b)		229,263
	3,084	Henry Schein, Inc.(b)		352,285
	2,320	IDEXX Laboratories, Inc.(b)		293,341
	5,482	MEDNAX, Inc.(b)		324,809
	4,749	Omnicare, Inc.		281,473
	7,707	Owens & Minor, Inc.		258,493
	3,522	Teleflex, Inc.		359,561
				2,354,146

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

23

PowerShares S&P MidCap Low Volatility Portfolio (XMLV) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials—10.8%
	3,565	Carlisle Cos., Inc.	$	293,221
	4,151	Crane Co.		301,902
	6,787	Donaldson Co., Inc.		285,665
	2,303	Hubbell, Inc., Class B		271,109
	3,716	IDEX Corp.		277,102
	10,251	Rollins, Inc.		308,350
	3,494	Wabtec Corp.		260,478
	6,876	Waste Connections, Inc.		307,082
	10,366	Werner Enterprises, Inc.		265,370
				2,570,279
		Information Technology—6.1%
	7,248	Broadridge Financial Solutions, Inc.		277,888
	28,145	Compuware Corp.		291,582
	3,168	DST Systems, Inc.		292,058
	5,454	Jack Henry & Associates, Inc.		300,843
	7,653	Synopsys, Inc.(b)		287,906
				1,450,277
		Materials—6.6%
	5,241	AptarGroup, Inc.		353,348
	6,851	RPM International, Inc.		292,264
	4,784	Scotts Miracle-Gro Co. (The), Class A		292,829
	6,551	Silgan Holdings, Inc.		325,912
	7,443	Sonoco Products Co.		313,201
				1,577,554
		Telecommunication Services—1.2%
	9,017	tw telecom, inc.(b)		276,732
		Utilities—17.4%
	6,250	Alliant Energy Corp.		365,500
	11,129	Aqua America, Inc.		279,227
	6,748	Atmos Energy Corp.		344,418
	6,751	Cleco Corp.		354,765
	12,545	Great Plains Energy, Inc.		336,582
	11,645	Hawaiian Electric Industries, Inc.		279,364
	5,459	IDACORP, Inc.		306,468
	3,578	National Fuel Gas Co.		263,484
	11,149	PNM Resources, Inc.		308,604
	12,261	Questar Corp.		297,697
	6,735	UGI Corp.		314,457
	8,150	Vectren Corp.		330,645
	9,642	Westar Energy, Inc.		345,955
				4,127,166
		Total Common Stocks and Other Equity Interests (Cost $22,068,526)		23,767,319
		Money Market Fund—0.1%
	14,113	Invesco Premier Portfolio—Institutional Class(c) (Cost $14,113)		14,113
		Total Investments (Cost $22,082,639)—100.0%		23,781,432
		Other assets less liabilities—0.0%		3,258
		Net Assets—100.0%	$	23,784,690

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.

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

24

Portfolio Composition

PowerShares S&P SmallCap Low Volatility Portfolio (XSLV)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2014 (Unaudited)
Financials	47.6
Industrials	12.9
Utilities	11.9
Consumer Discretionary	7.2
Information Technology	6.5
Health Care	5.4
Materials	4.2
Consumer Staples	3.4
Energy	0.9
Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares S&P SmallCap Low Volatility Portfolio (XSLV)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—7.2%
	1,001	Biglari Holdings, Inc.(b)	$	429,449
	3,255	Cracker Barrel Old Country Store, Inc.		308,379
	4,267	DineEquity, Inc.		323,481
	12,907	Hillenbrand, Inc.		392,373
	11,945	Interval Leisure Group, Inc.		307,822
	6,346	Jack in the Box, Inc.(b)		339,765
	6,709	Papa John’s International, Inc.		294,257
	6,090	Pool Corp.		359,432
	9,613	Steven Madden Ltd.(b)		342,319
				3,097,277
		Consumer Staples—3.4%
	6,658	Cal-Maine Foods, Inc.		397,017
	3,937	J & J Snack Foods Corp.		368,503
	4,643	TreeHouse Foods, Inc.(b)		347,482
	4,721	WD-40 Co.		343,878
				1,456,880
		Energy—0.9%
	4,698	SEACOR Holdings, Inc.(b)		391,766
		Financials—47.6%
	15,936	Acadia Realty Trust REIT		432,344
	11,256	Agree Realty Corp. REIT		336,217
	10,130	American Assets Trust, Inc. REIT		343,914
	5,432	Bank of the Ozarks, Inc.		325,377
	8,778	Banner Corp.		347,082
	46,338	Brookline Bancorp, Inc.		420,749
	29,604	Capstead Mortgage Corp. REIT		378,339

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	8,139	City Holding Co.	$	349,896
	14,880	Columbia Banking System, Inc.		369,322
	11,760	Community Bank System, Inc.		437,354
	31,026	Cousins Properties, Inc. REIT		360,832
	22,679	CVB Financial Corp.		327,938
	24,694	Dime Community Bancshares, Inc.		402,512
	6,359	EastGroup Properties, Inc. REIT		402,207
	7,252	EPR Properties REIT		388,780
	30,594	F.N.B. Corp.		380,589
	23,911	First Financial Bancorp		387,119
	19,872	First Midwest Bancorp, Inc.		325,305
	27,183	Franklin Street Properties Corp. REIT		331,089
	11,219	Geo Group, Inc. (The) REIT		376,173
	17,140	Getty Realty Corp. REIT		324,289
	13,055	Glacier Bancorp, Inc.		334,991
	14,677	Government Properties Income Trust REIT		373,530
	15,676	Healthcare Realty Trust, Inc. REIT		394,251
	11,416	Horace Mann Educators Corp.		343,279
	11,272	Independent Bank Corp.		418,417
	33,373	Inland Real Estate Corp. REIT		348,748
	16,619	Interactive Brokers Group, Inc., Class A		397,194
	33,512	Lexington Realty Trust REIT		360,589
	11,670	MB Financial, Inc.		313,223
	33,261	National Penn Bancshares, Inc.		324,960
	6,257	Navigators Group, Inc. (The)(b)		356,461
	16,445	NBT Bancorp, Inc.		372,479
	30,688	Northwest Bancshares, Inc.		407,844
	25,290	Old National Bancorp		357,095

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

25

PowerShares S&P SmallCap Low Volatility Portfolio (XSLV) (continued)

April 30, 2014

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	28,218	Oritani Financial Corp.	$	418,473
	8,256	Post Properties, Inc. REIT		414,534
	10,255	ProAssurance Corp.		465,782
	21,243	Provident Financial Services, Inc.		369,203
	5,056	PS Business Parks, Inc. REIT		433,653
	9,650	RLI Corp.		415,529
	6,624	Safety Insurance Group, Inc.		355,775
	7,451	Saul Centers, Inc. REIT		341,926
	16,153	Selective Insurance Group, Inc.		370,550
	9,983	Simmons First National Corp., Class A		360,985
	4,507	Sovran Self Storage, Inc. REIT		342,081
	30,435	Sterling Bancorp		364,003
	12,343	Tanger Factory Outlet Centers, Inc. REIT		440,398
	7,083	Tompkins Financial Corp.		333,893
	57,362	TrustCo Bank Corp. NY		379,163
	5,844	UMB Financial Corp.		343,101
	12,904	United Bankshares, Inc.		377,442
	19,489	Urstadt Biddle Properties, Inc., Class A REIT		397,770
	14,232	ViewPoint Financial Group, Inc.		371,028
	9,827	Wintrust Financial Corp.		440,446
				20,586,223
		Health Care—5.4%
	8,376	Amsurg Corp.(b)		362,764
	8,189	CONMED Corp.		379,396
	8,320	Ensign Group, Inc. (The)		353,600
	10,427	Haemonetics Corp.(b)		316,564
	6,505	Landauer, Inc.		281,276
	5,515	Magellan Health Services, Inc.(b)		318,326
	7,862	West Pharmaceutical Services, Inc.		341,054
				2,352,980
		Industrials—12.9%
	13,922	ABM Industries, Inc.		377,147
	10,837	Actuant Corp., Class A		366,941
	12,464	Brady Corp., Class A		321,447
	6,407	Cubic Corp.		303,884
	4,585	EnerSys		309,854
	4,573	Exponent, Inc.		322,031
	7,795	Forward Air Corp.		344,773
	12,332	Healthcare Services Group, Inc.		358,861
	9,203	Kaman Corp.		386,250
	16,276	Knight Transportation, Inc.		386,229
	10,981	Mueller Industries, Inc.		317,790
	5,275	National Presto Industries, Inc.		381,171
	4,327	Teledyne Technologies, Inc.(b)		401,805
	5,564	Toro Co. (The)		353,537
	3,362	UniFirst Corp.		323,559
	5,731	Watts Water Technologies, Inc., Class A		304,889
				5,560,168
		Information Technology—6.5%
	3,946	Anixter International, Inc.		386,629
	14,138	Benchmark Electronics, Inc.(b)		327,719
	5,369	CACI International, Inc., Class A(b)		373,951
	10,523	Comtech Telecommunications Corp.		334,105
	11,956	CSG Systems International, Inc.		315,160
	33,972	Micrel, Inc.		338,361

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	10,738	MKS Instruments, Inc.	$	302,275
	17,184	TeleTech Holdings, Inc.(b)		414,650
				2,792,850
		Materials—4.2%
	7,707	AMCOL International Corp.		353,366
	16,561	Calgon Carbon Corp.(b)		331,717
	6,993	Innophos Holdings, Inc.		394,685
	5,451	Kaiser Aluminum Corp.		383,750
	5,875	Stepan Co.		339,751
				1,803,269
		Utilities—11.9%
	9,768	ALLETE, Inc.		505,592
	15,776	Avista Corp.		507,198
	11,260	El Paso Electric Co.		425,853
	10,676	Laclede Group, Inc. (The)		506,149
	8,249	New Jersey Resources Corp.		410,223
	12,136	Northwest Natural Gas Co.		537,261
	10,093	NorthWestern Corp.		488,299
	13,695	Piedmont Natural Gas Co., Inc.		490,144
	8,089	South Jersey Industries, Inc.		464,713
	8,042	Southwest Gas Corp.		442,391
	10,588	UIL Holdings Corp.		388,897
				5,166,720
		Total Investments (Cost $41,908,515)—100.0%		43,208,133
		Other assets less liabilities—0.0%		7,318
		Net Assets—100.0%	$	43,215,451

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.

26

(This Page Intentionally Left Blank)

Statements of Assets and Liabilities

April 30, 2014

(Unaudited)

	PowerShares S&P 500® High Beta Portfolio (SPHB)		PowerShares S&P 500® High Dividend Portfolio (SPHD)			PowerShares S&P 500® Low  Volatility Portfolio (SPLV)			PowerShares S&P Emerging Markets High Beta Portfolio (EEHB)
Assets:
Unaffiliated investments, at value(a)	$	233,918,577	$	161,809,850		$	3,903,339,306		$	6,429,125
Affiliated investments, at value		2,768,973		394,867			6,865,065			—
Total investments, at value		236,687,550		162,204,717			3,910,204,371			6,429,125
Foreign currencies, at value		—		—			—			20,332
Cash collateral		—		—			—			—
Receivables:
Investments sold		20,064,350		—			—			319
Dividends		93,134		196,891			3,359,921			15,173
Foreign tax reclaims		4,534		—			—			—
Security lending		1,567		—			—			—
Shares sold		—		—			29,302,729			—
Total Assets		256,851,135		162,401,608			3,942,867,021			6,464,949
Liabilities:
Due to custodian		28		466,753			7,911,991			25,307
Payables:
Shares repurchased		20,082,227		—			—			—
Collateral upon receipt of securities in-kind		—		—			—			—
Collateral upon return of securities loaned		—		—			—			—
Investments purchased		—		—			31,732,316			4,984
Accrued unitary management fees		51,483		38,048			789,505			1,542
Accrued expenses		—		—			—			—
Total Liabilities		20,133,738		504,801			40,433,812			31,833
Net Assets	$	236,717,397	$	161,896,807		$	3,902,433,209		$	6,433,116
Net Assets Consist of:
Shares of beneficial interest	$	145,046,164	$	147,272,891		$	3,450,219,940		$	6,488,463
Undistributed net investment income (loss)		198,359		(265,079	)		(851,787	)		30,679
Undistributed net realized gain (loss)		79,459,696		2,293,436			58,904,142			(316,878	)
Net unrealized appreciation		12,013,178		12,595,559			394,160,914			230,852
Net Assets	$	236,717,397	$	161,896,807		$	3,902,433,209		$	6,433,116
Shares outstanding (unlimited amount authorized, $0.01 par value)		7,600,100		5,300,001			112,800,100			300,001
Net asset value	$	31.15	$	30.55		$	34.60		$	21.44
Market price	$	31.13	$	30.55		$	34.60		$	21.64
Unaffiliated investments, at cost	$	221,974,675	$	149,214,291		$	3,509,178,392		$	6,201,550
Affiliated investments, at cost	$	2,699,697	$	394,867		$	6,865,065		$	—
Total investments, at cost	$	224,674,372	$	149,609,158		$	3,516,043,457		$	6,201,550
Foreign currencies, at cost	$	—	$	—		$	—		$	20,454
(a) Includes securities on loan with an aggregate value of:	$	—	$	—		$	—		$	—

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

28

PowerShares S&P Emerging Markets Low Volatility Portfolio (EELV)			PowerShares S&P International Developed High Beta Portfolio (IDHB)		PowerShares S&P International Developed Low Volatility Portfolio (IDLV)			PowerShares S&P MidCap Low Volatility Portfolio (XMLV)			PowerShares S&P SmallCap Low Volatility Portfolio (XSLV)
$	218,022,025		$	6,114,273	$	196,554,797		$	23,767,319		$	43,208,133
	—			89,076		14,468,973			14,113			—
	218,022,025			6,203,349		211,023,770			23,781,432			43,208,133
	61,813			551		63,409			—			—
	—			—		1,351,510			—			—
	—			—		57,446			—			—
	283,035			31,834		701,083			7,994			77,717
	28,119			4,394		97,702			—
	—			319		18,022			—
	—			—		652,153			—
	218,394,992			6,240,447		213,965,095			23,789,426			43,285,850
	122,501			34,253		359,530			28			7,665
	—			—		—			—			53,724
	—			—		1,351,510			—			—
	—			89,076		14,468,973			—			—
	14			4		1,013,305			—			—
	52,728			1,255		38,139			4,708			9,010
	5,832			—		—			—			—
	181,075			124,588		17,231,457			4,736			70,399
$	218,213,917		$	6,115,859	$	196,733,638		$	23,784,690		$	43,215,451
$	223,215,855		$	5,337,399	$	182,200,136		$	22,201,352		$	39,923,345
	584,081			35,806		1,143,027			41,378			180,504
	(8,570,098	)		696,360		(572,180	)		(156,833	)		1,811,984
	2,984,079			46,294		13,962,655			1,698,793			1,299,618
$	218,213,917		$	6,115,859	$	196,733,638		$	23,784,690		$	43,215,451
	8,000,001			200,001		6,000,001			800,001			1,400,001
$	27.28		$	30.58	$	32.79		$	29.73		$	30.87
$	27.24		$	30.55	$	33.01		$	29.72		$	30.90
$	215,038,352		$	6,068,214	$	182,592,607		$	22,068,526		$	41,908,515
$	—		$	89,076	$	14,468,973		$	14,113		$	—
$	215,038,352		$	6,157,290	$	197,061,580		$	22,082,639		$	41,908,515
$	61,528		$	551	$	63,407		$	—		$	—
$	—		$	109,382	$	13,782,138		$	—		$	—

29

Statements of Operations

For the six months ended April 30, 2014

(Unaudited)

	PowerShares S&P 500® High Beta Portfolio (SPHB)			PowerShares S&P 500® High Dividend Portfolio (SPHD)			PowerShares S&P 500® Low Volatility Portfolio (SPLV)			PowerShares S&P Emerging Markets High Beta Portfolio (EEHB)
Investment Income:
Unaffiliated dividend income	$	2,678,172		$	2,664,687		$	52,025,006		$	67,643
Affiliated dividend income		79,156			—			176			—
Security lending income		18,382			—			—			—
Foreign withholding tax		—			—			—			(8,314	)
Total Income		2,775,710			2,664,687			52,025,182			59,329
Expenses:
Unitary management fees		542,497			210,499			4,703,822			11,087
Tax expenses		—			—			—			—
Proxy		(627	)		(319	)		(15,505	)		226
Total Expenses		541,870			210,180			4,688,317			11,313
Waivers		(97	)		(63	)		(1,058	)		(3,947	)
Net Expenses		541,773			210,117			4,687,259			7,366
Net Investment Income		2,233,937			2,454,570			47,337,923			51,963
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain (loss) from:
Investment securities		(3,829,544	)		(1,176,791	)		(6,324,543	)		(57,809	)
In-kind redemptions		92,196,914			4,048,900			137,589,089			—
Foreign currencies		—			—			—			(3,306	)
Net realized gain (loss)		88,367,370			2,872,109			131,264,546			(61,115	)
Change in net unrealized appreciation (depreciation) on:
Investment securities		(44,448,191	)		8,609,561			99,883,256			122,985
Foreign currencies		—			—			—			(269	)
Net change in unrealized appreciation (depreciation)		(44,448,191	)		8,609,561			99,883,256			122,716
Net realized and unrealized gain (loss)		43,919,179			11,481,670			231,147,802			61,601
Net increase (decrease) in net assets resulting from operations.	$	46,153,116		$	13,936,240		$	278,485,725		$	113,564

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

30

PowerShares S&P Emerging Markets Low Volatility Portfolio (EELV)			PowerShares S&P International Developed High Beta Portfolio (IDHB)			PowerShares S&P International Developed Low Volatility Portfolio (IDLV)			PowerShares S&P MidCap Low Volatility Portfolio (XMLV)			PowerShares S&P SmallCap Low Volatility Portfolio (XSLV)
$	2,870,747		$	74,663		$	3,247,533		$	257,953		$	583,478
	—			—			—			—			—
	—			504			43,749			—			—
	(240,353	)		(7,850	)		(277,239	)		—			—
	2,630,394			67,317			3,014,043			257,953			583,478
	485,462			10,218			271,600			26,887			48,878
	5,832			—			—			—			—
	(155	)		228			(133	)		187			157
	491,139			10,446			271,467			27,074			49,035
	(172,641	)		(2,930	)		(77,631	)		(6	)		(12	)
	318,498			7,516			193,836			27,068			49,023
	2,311,896			59,801			2,820,207			230,885			534,455
	(3,854,660	)		(177,754	)		310,892			(486,974	)		(426,428	)
	128,463			930,349			—			621,727			2,472,109
	(130,869	)		(735	)		(33,033	)		—			—
	(3,857,066	)		751,860			277,859			134,753			2,045,681
	(6,671,833	)		(452,062	)		6,448,320			1,008,164			(1,177,134	)
	1,613			104			832			—			—
	(6,670,220	)		(451,958	)		6,449,152			1,008,164			(1,177,134	)
	(10,527,286	)		299,902			6,727,011			1,142,917			868,547
$	(8,215,390	)	$	359,703		$	9,547,218		$	1,373,802		$	1,403,002

31

Statements of Changes in Net Assets

For the six months ended April 30, 2014 and the year ended October 31, 2013

(Unaudited)

	PowerShares S&P 500® High Beta Portfolio (SPHB)						PowerShares S&P 500® High Dividend Portfolio (SPHD)
	April 30, 2014			October 31, 2013			April 30, 2014			October 31, 2013
Operations:
Net investment income	$	2,233,937		$	2,721,806		$	2,454,570		$	3,465,941
Net realized gain (loss)		88,367,370			27,438,563			2,872,109			5,875,308
Net change in unrealized appreciation (depreciation)		(44,448,191	)		63,713,180			8,609,561			4,030,887
Net increase in net assets resulting from operations.		46,153,116			93,873,549			13,936,240			13,372,136
Distributions to Shareholders from:
Net investment income		(2,482,754	)		(2,416,259	)		(2,719,649	)		(3,535,971	)
Capital gains		—			—			(90,900	)		—
Total distributions to shareholders		(2,482,754	)		(2,416,259	)		(2,810,549	)		(3,535,971	)
Shareholder Transactions:
Proceeds from shares sold		236,856,483			539,006,561			47,909,048			201,369,575
Value of shares repurchased		(574,018,028	)		(208,462,944	)		(36,103,362	)		(79,748,687	)
Net increase (decrease) in net assets resulting from shares transactions		(337,161,545	)		330,543,617			11,805,686			121,620,888
Increase (Decrease) in Net Assets		(293,491,183	)		422,000,907			22,931,377			131,457,053
Net Assets:
Beginning of period		530,208,580			108,207,673			138,965,430			7,508,377
End of period	$	236,717,397		$	530,208,580		$	161,896,807		$	138,965,430
Undistributed net investment income (loss) at end of period	$	198,359		$	447,176		$	(265,079	)	$	—
Changes in Shares Outstanding:
Shares sold		7,850,000			21,700,000			1,700,000			7,550,000
Shares repurchased		(18,850,000	)		(8,400,000	)		(1,300,000	)		(2,950,000	)
Shares outstanding, beginning of period		18,600,100			5,300,100			4,900,001			300,001
Shares outstanding, end of period		7,600,100			18,600,100			5,300,001			4,900,001

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

32

PowerShares S&P 500® Low Volatility Portfolio (SPLV)						PowerShares S&P Emerging Markets High Beta Portfolio (EEHB)
April 30, 2014			October 31, 2013			April 30, 2014			October 31, 2013
$	47,337,923		$	116,511,680		$	51,963		$	41,764
	131,264,546			355,711,847			(61,115	)		(143,528	)
	99,883,256			202,074,547			122,716			328,322
	278,485,725			674,298,074			113,564			226,558
	(48,189,710	)		(119,092,292	)		(38,164	)		(40,279	)
	—			—			—			—
	(48,189,710	)		(119,092,292	)		(38,164	)		(40,279	)
	585,491,960			3,926,639,414			1,936,073			2,061,425
	(889,011,517	)		(3,255,303,604	)		—			—
	(303,519,557	)		671,335,810			1,936,073			2,061,425
	(73,223,542	)		1,226,541,592			2,011,473			2,247,704
	3,975,656,751			2,749,115,159			4,421,643			2,173,939
$	3,902,433,209		$	3,975,656,751		$	6,433,116		$	4,421,643
$	(851,787	)	$	—		$	30,679		$	16,880
	17,600,000			128,400,000			100,000			100,000
	(26,900,000	)		(104,250,000	)		—			—
	122,100,100			97,950,100			200,001			100,001
	112,800,100			122,100,100			300,001			200,001

33

Statements of Changes in Net Assets (continued)

For the six months ended April 30, 2014 and the year ended October 31, 2013

(Unaudited)

	PowerShares S&P Emerging Markets Low Volatility Portfolio (EELV)						PowerShares S&P International Developed High Beta Portfolio (IDHB)
	April 30, 2014			October 31, 2013			April 30, 2014			October 31, 2013
Operations:
Net investment income	$	2,311,896		$	3,666,099		$	59,801		$	88,874
Net realized gain (loss)		(3,857,066	)		(3,511,176	)		751,860			(147,790	)
Net change in unrealized appreciation (depreciation)		(6,670,220	)		9,464,725			(451,958	)		621,440
Net increase (decrease) in net assets resulting from operations.		(8,215,390	)		9,619,648			359,703			562,524
Distributions to Shareholders from:
Net investment income		(2,040,242	)		(2,774,327	)		(42,615	)		(99,231	)
Shareholder Transactions:
Proceeds from shares sold		16,658,514			208,208,755			5,810,478			7,717,635
Value of shares repurchased		(5,466,427	)		(11,479,883	)		(5,811,060	)		(4,641,619	)
Transaction fees		23,210			105,165			—			—
Net increase (decrease) in net assets resulting from shares transactions		11,215,297			196,834,037			(582	)		3,076,016
Increase in Net Assets		959,665			203,679,358			316,506			3,539,309
Net Assets:
Beginning of period		217,254,252			13,574,894			5,799,353			2,260,044
End of period	$	218,213,917		$	217,254,252		$	6,115,859		$	5,799,353
Undistributed net investment income at end of period	$	584,081		$	312,427		$	35,806		$	18,620
Changes in Shares Outstanding:
Shares sold		600,000			7,500,000			200,000			300,000
Shares repurchased		(200,000	)		(400,000	)		(200,000	)		(200,000	)
Shares outstanding, beginning of period		7,600,001			500,001			200,001			100,001
Shares outstanding, end of period		8,000,001			7,600,001			200,001			200,001

^(a)  For the period February 12, 2013 (commencement of investment operations) through October 31, 2013.

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

34

PowerShares S&P International Developed Low Volatility Portfolio (IDLV)						PowerShares S&P MidCap Low Volatility Portfolio (XMLV)						PowerShares S&P SmallCap Low Volatility Portfolio (XSLV)
April 30, 2014			October 31, 2013			April 30, 2014			October 31, 2013(a)			April 30, 2014			October 31, 2013(a)
$	2,820,207		$	2,166,199		$	230,885		$	217,973		$	534,455		$	263,842
	277,859			79,601			134,753			302,617			2,045,681			458,529
	6,449,152			7,067,971			1,008,164			690,629			(1,177,134	)		2,476,752
	9,547,218			9,313,771			1,373,802			1,211,219			1,403,002			3,199,123
	(2,080,615	)		(1,829,817	)		(229,763	)		(177,717	)		(453,595	)		(164,198	)
	53,649,778			114,593,031			4,322,801			31,003,450			29,114,257			34,013,493
	—			(6,012,326	)		(2,871,288	)		(10,847,814	)		(18,259,193	)		(5,637,438	)
	—			—			—			—			—			—
	53,649,778			108,580,705			1,451,513			20,155,636			10,855,064			28,376,055
	61,116,381			116,064,659			2,595,552			21,189,138			11,804,471			31,410,980
	135,617,257			19,552,598			21,189,138			—			31,410,980			—
$	196,733,638		$	135,617,257		$	23,784,690		$	21,189,138		$	43,215,451		$	31,410,980
$	1,143,027		$	403,435		$	41,378		$	40,256		$	180,504		$	99,644
	1,700,000			3,800,000			150,000			1,150,001			950,000			1,250,001
	—			(200,000	)		(100,000	)		(400,000	)		(600,000	)		(200,000	)
	4,300,001			700,001			750,001			—			1,050,001			—
	6,000,001			4,300,001			800,001			750,001			1,400,001			1,050,001

35

Financial Highlights

PowerShares S&P 500^® High Beta Portfolio (SPHB)

	Six Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,						For the Period May 2,  2011(a) Through October 31, 2011
				2013			2012
Per Share Operating Performance:
Net asset value at beginning of period	$	28.51		$	20.42		$	19.56		$	25.00
Net investment income(b)		0.15			0.22			0.19			0.07
Net realized and unrealized gain (loss) on investments		2.69			8.08			0.81	(c)		(5.42	)
Total from investment operations		2.84			8.30			1.00			(5.35	)
Distributions to shareholders from:
Net investment income		(0.20	)		(0.21	)		(0.14	)		(0.09	)
Net asset value at end of period	$	31.15		$	28.51		$	20.42		$	19.56
Market price at end of period(d)	$	31.13		$	28.54		$	20.41		$	19.58
Net Asset Value Total Return(e)		9.98	%		40.88	%		5.17	%		(21.41	)%(f)
Market Price Total Return(e)		9.79	%		41.10	%		5.01	%		(21.33	)%(f)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	236,717		$	530,209		$	108,208		$	11,740
Ratio to average net assets of:
Expenses		0.25	%(g)		0.25	%		0.25	%		0.25	%(g)
Net investment income		1.03	%(g)		0.89	%		0.93	%		0.75	%(g)
Portfolio turnover rate(h)		42	%		65	%		31	%		16	%

PowerShares S&P 500^® High Dividend Portfolio (SPHD)

	Six Months Ended April 30, 2014 (Unaudited)			Year Ended October 31, 2013			For the Period October 12,  2012(a) Through October 31, 2012
Per Share Operating Performance:
Net asset value at beginning of period	$	28.36		$	25.03		$	25.00
Net investment income(b)		0.49			0.98			0.04
Net realized and unrealized gain (loss) on investments		2.27			3.41			(0.01	)
Total from investment operations		2.76			4.39			0.03
Distributions to shareholders from:
Net investment income		(0.55	)		(1.06	)		—
Net realized capital gains		(0.02	)		—			—
Total distributions		(0.57	)		(1.06	)		—
Net asset value at end of period	$	30.55		$	28.36		$	25.03
Market price at end of period(d)	$	30.55		$	28.39		$	25.04
Net Asset Value Total Return(e)		9.89	%		17.95	%		0.12	%(i)
Market Price Total Return(e)		9.77	%		18.03	%		0.16	%(i)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	161,897		$	138,965		$	7,508
Ratio to average net assets of:
Expenses		0.30	%(g)		0.30	%		0.30	%(g)
Net investment income		3.50	%(g)		3.59	%		5.03	%(g)
Portfolio turnover rate(h)		23	%		47	%		—	%

^(a)  Commencement of Investment Operations.

^(b)  Based on average shares outstanding.

^(c)  Due to timing of creations and redemptions of capital shares, the net realized and unrealized gain (loss) per share is not in accord with the Fund’s change in net realized and unrealized gain (loss) on investment securities and in-kind transactions for the period.

^(d)  The mean between the last bid and ask prices.

^(e)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. 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 the 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)  The net asset value total return from Fund Inception (May 5, 2011, the first day of trading on the Exchange) to October 31, 2011 was (18.78)%. The market price total return from Fund Inception to October 31, 2011 was (18.66)%.

^(g)  Annualized.

^(h)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

⁽ⁱ⁾  The net asset value total return from Fund Inception (October 18, 2012, the first day of trading on the Exchange) to October 31, 2012 was (2.34)%. The market price total return from Fund Inception to October 31, 2012 was (2.34)%.

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

36

Financial Highlights (continued)

PowerShares S&P 500^® Low Volatility Portfolio (SPLV)

	Six Months Ended April 30, 2014 (Unaudited)			Year Ended October 31,						For the Period May 2,  2011(a) Through October 31, 2011
				2013			2012
Per Share Operating Performance:
Net asset value at beginning of period	$	32.56		$	28.07		$	25.01		$	25.00
Net investment income(b)		0.41			0.88			0.80			0.33
Net realized and unrealized gain on investments		2.05			4.51			3.07			0.07
Total from investment operations		2.46			5.39			3.87			0.40
Distributions to shareholders from:
Net investment income		(0.42	)		(0.90	)		(0.81	)		(0.32	)
Return of capital		—			—			—			(0.07	)
Total distributions		(0.42	)		(0.90	)		(0.81	)		(0.39	)
Net asset value at end of period	$	34.60		$	32.56		$	28.07		$	25.01
Market price at end of period(c)	$	34.60		$	32.59		$	28.08		$	25.04
Net Asset Value Total Return(d)		7.62	%		19.51	%		15.70	%		1.66	%(e)
Market Price Total Return(d)		7.52	%		19.58	%		15.60	%		1.78	%(e)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	3,902,433		$	3,975,657		$	2,749,115		$	572,633
Ratio to average net assets of:
Expenses		0.25	%(f)		0.25	%		0.25	%		0.25	%(f)
Net investment income		2.52	%(f)		2.87	%		2.95	%		2.83	%(f)
Portfolio turnover rate(g)		23	%		50	%		17	%		12	%

PowerShares S&P Emerging Markets High Beta Portfolio (EEHB)

	Six Months Ended April 30, 2014 (Unaudited)			Year Ended October 31, 2013			For the Period February 22,  2012(a) Through October 31, 2012
Per Share Operating Performance:
Net asset value at beginning of period	$	22.11		$	21.74		$	25.00
Net investment income(b)		0.21			0.34			0.29
Net realized and unrealized gain (loss) on investments		(0.69	)		0.38			(3.40	)
Total from investment operations		(0.48	)		0.72			(3.11	)
Distributions to shareholders from:
Net investment income		(0.19	)		(0.35	)		(0.15	)
Net asset value at end of period	$	21.44		$	22.11		$	21.74
Market price at end of period(c)	$	21.64		$	21.90		$	21.78
Net Asset Value Total Return(d)		(2.12	)		3.38	%		(12.44	)%(h)
Market Price Total Return(d)		(0.26	)		2.21	%		(12.27	)%(h)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	6,433		$	4,422		$	2,174
Ratio to average net assets of:
Expenses, after Waivers		0.30	%(f)		0.31	%		0.29	%(f)
Expenses, prior to Waivers		0.46	%(f)		0.47	%		0.45	%(f)
Net investment income, after Waivers		2.11	%(f)		1.60	%		1.97	%(f)
Portfolio turnover rate(g)		44	%		117	%		47	%

^(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 the 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 (May 5, 2011, the first day of trading on the Exchange) to October 31, 2011 was 2.52%. The market price total return from Fund Inception to October 31, 2011 was 2.65%.

^(f)  Annualized.

^(g)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

^(h)  The net asset value total return from Fund Inception (February 24, 2012, the first day of trading on the Exchange) to October 31, 2012 was (12.47)%. The market price total return from Fund Inception to October 31, 2012 was (13.04)%.

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

37

Financial Highlights (continued)

PowerShares S&P Emerging Markets Low Volatility Portfolio (EELV)

	Six Months Ended April 30, 2014 (Unaudited)			Year Ended October 31, 2013			For the Period January 11,  2012(a) Through October 31, 2012
Per Share Operating Performance:
Net asset value at beginning of period	$	28.59		$	27.15		$	25.00
Net investment income(b)		0.28			0.75			0.65
Net realized and unrealized gain (loss) on investments		(1.34	)		1.17			1.64
Total from investment operations		(1.06	)		1.92			2.29
Distributions to shareholders from:
Net investment income		(0.25	)		(0.50	)		(0.19	)
Transaction fees(b)		0.00	(c)		0.02			0.05
Net asset value at end of period	$	27.28		$	28.59		$	27.15
Market price at end of period(d)	$	27.24		$	28.56		$	27.03
Net Asset Value Total Return(e)		(3.69	)%		7.24	%		9.37	%(f)
Market Price Total Return(e)		(3.73	)%		7.60	%		8.88	%(f)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	218,214		$	217,254		$	13,575
Ratio to average net assets of:
Expenses, after Waivers		0.30	%(g)		0.29	%		0.29	%(g)
Expenses, prior to Waivers		0.46	%(g)		0.45	%		0.45	%(g)
Net investment income, after Waivers		2.14	%(g)		2.70	%		3.09	%(g)
Portfolio turnover rate(h)		41	%		101	%		50	%

PowerShares S&P International Developed High Beta Portfolio (IDHB)

	Six Months Ended April 30, 2014 (Unaudited)			Year Ended October 31, 2013			For the Period February 22,  2012(a) Through October 31, 2012
Per Share Operating Performance:
Net asset value at beginning of period	$	29.00		$	22.60		$	25.00
Net investment income(b)		0.30			0.51			0.54
Net realized and unrealized gain (loss) on investments		1.42			6.50			(2.65	)
Total from investment operations		1.72			7.01			(2.11	)
Distributions to shareholders from:
Net investment income		(0.14	)		(0.61	)		(0.29	)
Net asset value at end of period	$	30.58		$	29.00		$	22.60
Market price at end of period(d)	$	30.55		$	29.11		$	22.73
Net Asset Value Total Return(e)		5.98	%		31.49	%		(8.30	)%(i)
Market Price Total Return(e)		5.46	%		31.19	%		(7.78	)%(i)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	6,116		$	5,799		$	2,260
Ratio to average net assets of:
Expenses, after Waivers		0.26	%(g)		0.26	%		0.25	%(g)
Expenses, prior to Waivers		0.36	%(g)		0.36	%		0.35	%(g)
Net investment income, after Waivers		2.05	%(g)		2.00	%		3.60	%(g)
Portfolio turnover rate(h)		48	%		74	%		35	%

^(a)  Commencement of Investment Operations.

^(b)  Based on average shares outstanding.

^(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 the 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)  The net asset value total return from Fund Inception (January 13, 2012, the first day of trading on the Exchange) to October 31, 2012 was 11.19%. The market price total return from Fund Inception to October 31, 2012 was 9.85%.

^(g)  Annualized.

^(h)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

⁽ⁱ⁾  The net asset value total return from Fund Inception (February 24, 2012, the first day of trading on the Exchange) to October 31, 2012 was (9.43)%. The market price total return from Fund Inception to October 31, 2012 was (9.59)%.

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

38

Financial Highlights (continued)

PowerShares S&P International Developed Low Volatility Portfolio (IDLV)

	Six Months Ended April 30, 2014 (Unaudited)			Year Ended October 31, 2013			For the Period January 11,  2012(a) Through October 31, 2012
Per Share Operating Performance:
Net asset value at beginning of period	$	31.54		$	27.93		$	25.00
Net investment income(b)		0.56			0.90			0.73
Net realized and unrealized gain on investments		1.12			3.53			2.55
Total from investment operations		1.68			4.43			3.28
Distributions to shareholders from:
Net investment income		(0.43	)		(0.82	)		(0.35	)
Net asset value at end of period	$	32.79		$	31.54		$	27.93
Market price at end of period(c)	$	33.01		$	31.67		$	27.88
Net Asset Value Total Return(d)		5.42	%		16.19	%		13.22	%(e)
Market Price Total Return(d)		5.68	%		16.87	%		13.01	%(e)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	196,734		$	135,617		$	19,553
Ratio to average net assets of:
Expenses, after Waivers		0.25	%(f)		0.25	%		0.25	%(f)
Expenses, prior to Waivers		0.35	%(f)		0.35	%		0.35	%(f)
Net investment income, after Waivers		3.63	%(f)		3.03	%		3.40	%(f)
Portfolio turnover rate(g)		28	%		84	%		41	%

PowerShares S&P MidCap Low Volatility Portfolio (XMLV)

	Six Months Ended April 30, 2014 (Unaudited)			For the Period February 12,  2013(a) Through October 31, 2013
Per Share Operating Performance:
Net asset value at beginning of period	$	28.25		$	25.12
Net investment income(b)		0.31			0.38
Net realized and unrealized gain on investments		1.48			3.02
Total from investment operations		1.79			3.40
Distributions to shareholders from:
Net investment income		(0.31	)		(0.27	)
Net asset value at end of period	$	29.73		$	28.25
Market price at end of period(c)	$	29.72		$	28.28
Net Asset Value Total Return(d)		6.37	%		13.62	%(h)
Market Price Total Return(d)		6.22	%		13.77	%(h)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	23,785		$	21,189
Ratio to average net assets of:
Expenses		0.25	%(f)		0.26	%(f)
Net investment income		2.15	%(f)		1.98	%(f)
Portfolio turnover rate(g)		31	%		29	%

^(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 the 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 (January 13, 2012, the first day of trading on the Exchange) to October 31, 2012 was 14.23%. The market price total return from Fund Inception to October 31, 2012 was 13.51%.

^(f)  Annualized.

^(g)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

^(h)  The net asset value total return from Fund Inception (February 15, 2013, the first day of trading on the Exchange) to October 31, 2013 was 13.21%. The market price total return from Fund Inception to October 31, 2013 was 13.37%.

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

39

Financial Highlights (continued)

PowerShares S&P SmallCap Low Volatility Portfolio (XSLV)

	Six Months Ended April 30, 2014 (Unaudited)			For the Period February 12,  2013(a) Through October 31, 2013
Per Share Operating Performance:
Net asset value at beginning of period	$	29.92		$	25.10
Net investment income(b)		0.42			0.43
Net realized and unrealized gain on investments		0.90			4.63
Total from investment operations		1.32			5.06
Distributions to shareholders from:
Net investment income		(0.37	)		(0.24	)
Net asset value at end of period	$	30.87		$	29.92
Market price at end of period(c)	$	30.90		$	29.96
Net Asset Value Total Return(d)		4.40	%		20.28	%(e)
Market Price Total Return(d)		4.36	%		20.45	%(e)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	43,215		$	31,411
Ratio to average net assets of:
Expenses		0.25	%(f)(g)		0.26	%(g)
Net investment income		2.73	%(g)		2.17	%(g)
Portfolio turnover rate(h)		35	%		35	%

^(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 the 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 (February 15, 2013, the first day of trading on the Exchange) to October 31, 2013 was 19.62%. The market price total return from Fund Inception to October 31, 2013 was 19.63%.

^(f)  In addition to the fees and expenses, which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment company expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment company and are deducted from the value of the funds that the Fund invests in. The effect of the estimated investment companies expenses that the Fund bears indirectly is included in the Fund’s total returns.

^(g)  Annualized.

^(h)  Portfolio turnover rate is not annualized 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

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust II

April 30, 2014

(Unaudited)

Note 1. Organization

PowerShares Exchange-Traded Fund Trust II (the “Trust”) was organized as a Massachusetts business trust on October 10, 2006 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of April 30, 2014, the Trust offered fifty-seven portfolios. This report includes the following portfolios:

Full Name	Short Name
PowerShares S&P 500® High Beta Portfolio (SPHB)	“S&P 500® High Beta Portfolio”
PowerShares S&P 500® High Dividend Portfolio (SPHD)	“S&P 500® High Dividend Portfolio”
PowerShares S&P 500® Low Volatility Portfolio (SPLV)	“S&P 500® Low Volatility Portfolio”
PowerShares S&P Emerging Markets High Beta Portfolio (EEHB)	“S&P Emerging Markets High Beta Portfolio”
PowerShares S&P Emerging Markets Low Volatility Portfolio (EELV)	“S&P Emerging Markets Low Volatility Portfolio”
PowerShares S&P International Developed High Beta Portfolio (IDHB)	“S&P International Developed High Beta Portfolio”
PowerShares S&P International Developed Low Volatility Portfolio (IDLV)	“S&P International Developed Low Volatility Portfolio”
PowerShares S&P MidCap Low Volatility Portfolio (XMLV)	“S&P MidCap Low Volatility Portfolio”
PowerShares S&P SmallCap Low Volatility Portfolio (XSLV)	“S&P SmallCap Low Volatility 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 prices of each Fund’s Shares may differ to some degree from the Fund’s net asset value (“NAV”). Unlike conventional mutual funds, each Fund issues and redeems Shares on a continuous basis, at NAV, only in a large specified number of Shares, each called a “Creation Unit.” Creation Units are issued and 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
S&P 500® High Beta Portfolio	S&P 500® High Beta Index
S&P 500® High Dividend Portfolio	S&P 500® Low Volatility High Dividend Index
S&P 500® Low Volatility Portfolio	S&P 500® Low Volatility Index
S&P Emerging Markets High Beta Portfolio	S&P BMI Emerging Markets High Beta IndexTM
S&P Emerging Markets Low Volatility Portfolio	S&P BMI Emerging Markets Low Volatility IndexTM
S&P International Developed High Beta Portfolio	S&P BMI International Developed High Beta IndexTM
S&P International Developed Low Volatility Portfolio	S&P BMI International Developed Low Volatility IndexTM
S&P MidCap Low Volatility Portfolio	S&P MidCap 400 Low Volatility IndexTM
S&P SmallCap Low Volatility Portfolio	S&P SmallCap 600 Low Volatility IndexTM

Note 2. Significant Accounting Policies

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

A. Security Valuation

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

A security listed or traded on an exchange (except convertible 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

41

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 ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices. 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/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value.

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 of each Fund’s 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

42

specific companies in which the Funds invest. 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 may 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 Capitalization Company Risk. For S&P SmallCap Low Volatility Portfolio, investing in securities of small 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 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.

Medium Capitalization Company Risk. For S&P Emerging Markets Low Volatility Portfolio, S&P International Developed High Beta Portfolio, S&P International Developed Low Volatility Portfolio and S&P MidCap Low Volatility Portfolio, investing in securities of medium capitalization companies involves greater risk than customarily is associated with investing in larger, more established companies. These companies’ securities may be more volatile and less liquid than those of more established companies. These securities may have returns that vary, sometimes significantly, from the overall securities market. Often medium capitalization companies are still evolving and, as a result, may be more sensitive to changing market conditions.

Foreign Investment Risk. For S&P Emerging Markets High Beta Portfolio, S&P Emerging Markets Low Volatility Portfolio, S&P International Developed High Beta Portfolio and S&P International Developed Low Volatility 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 Funds 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 Funds’ returns.

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 timing differences are primarily due to differing book and tax treatments for in-kind transactions, losses deferred due to wash sales, and passive foreign investment company adjustments, if any.

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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.

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

E. Expenses

Each Fund 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 Funds, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses (including acquired fund fees and expenses, if any).

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.

F. Dividends and Distributions to Shareholders

Each Fund (except for S&P 500^® High Dividend Portfolio and S&P 500^® Low Volatility Portfolio) declares and pays dividends from net investment income, if any, to its shareholders quarterly and records such dividends on ex-dividend date. S&P 500^® High Dividend Portfolio and S&P 500^® Low Volatility Portfolio each declares and pays dividends from net investment income, if any, to its shareholders monthly 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 period-end.

G. Securities Lending

S&P 500^® High Beta Portfolio, S&P International Developed High Beta Portfolio and S&P International Developed Low Volatility Portfolio may lend 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% of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is invested in an affiliated money market fund and is shown as such on the Schedule of Investments. It is the policy of these Funds to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to a Fund if, and to the extent that, the market value of the securities loaned were to increase, and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. A Fund could experience delays and costs in gaining access to the collateral. A Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Securities lending income on the Statements of Operations. The aggregate value of securities out on loan is shown on the Statements of Assets and Liabilities, if any.

Note 3. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with the Adviser pursuant to which the Adviser has overall responsibility for the selection and ongoing monitoring of the Funds’ investments, managing the Funds’ business affairs and providing certain clerical, bookkeeping and other administrative services.

As compensation for its services, each Fund has agreed to pay the Adviser an annual unitary management fee. Out of the unitary management fee, the Adviser has agreed to pay substantially all expenses of the Funds, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses (including acquired fund fees and expenses, if any). The unitary management fee is paid by each Fund to the Adviser at the following annual rates:

	% of Average Daily Net Assets
S&P 500® High Beta Portfolio		0.25	%
S&P 500® High Dividend Portfolio		0.30	%

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	% of Average Daily Net Assets
S&P 500® Low Volatility Portfolio		0.25	%
S&P Emerging Markets High Beta Portfolio		0.45	%*
S&P Emerging Markets Low Volatility Portfolio		0.45	%*
S&P International Developed High Beta Portfolio		0.35	%**
S&P International Developed Low Volatility Portfolio		0.35	%**
S&P MidCap Low Volatility Portfolio		0.25	%
S&P SmallCap Low Volatility Portfolio		0.25	%

* The Adviser has agreed to waive a portion of its unitary management fee through February 28, 2016. After giving effect to such waiver, the Fund’s net unitary management fee is 0.29% of its average daily net assets. Unless the Adviser continues the fee waiver agreement, it will terminate on February 28, 2016. The fee waiver agreement cannot be terminated during its term.

**The Adviser has agreed to waive a portion of its unitary management fee through February 28, 2016. After giving effect to such waiver, the Fund’s net unitary management fee is 0.25% of its average daily net assets. Unless the Adviser continues the fee waiver agreement, it will terminate on February 28, 2016. The fee waiver agreement cannot be terminated during its term.

Further, through August 31, 2015, the Adviser has contractually agreed to waive a portion of the 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.

For the six-month period ended April 30, 2014, the Adviser waived fees for each Fund, in the following amounts:

S&P 500® High Beta Portfolio	$	97
S&P 500® High Dividend Portfolio		63
S&P 500® Low Volatility Portfolio		1,058
S&P Emerging Markets High Beta Portfolio		3,947
S&P Emerging Markets Low Volatility Portfolio		172,641
S&P International Developed High Beta Portfolio		2,930
S&P International Developed Low Volatility Portfolio		77,631
S&P MidCap Low Volatility Portfolio		6
S&P SmallCap Low Volatility Portfolio		12

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 Standard & Poor’s Financial Services LLC (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 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

Each Fund’s Adviser is a wholly-owned subsidiary of Invesco Ltd., and therefore Invesco Ltd. is considered to be affiliated. The table below shows the Fund’s transactions in, and earnings from, its investments in Invesco Ltd. for the six-month period ended April 30, 2014.

S&P 500^® High Beta Portfolio

	Value October 31, 2013		Purchases at Cost		Proceeds from Sales			Change in Unrealized (Depreciation)			Realized Gain		Value April 30, 2014		Dividend Income
Invesco Ltd.	$	5,418,293	$	2,701,229	$	(5,407,345	)	$	(581,196	)	$	634,659	$	2,765,640	$	79,156

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

45

assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3), generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

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

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

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

Except for the Funds listed below, as of April 30, 2014, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedule of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Investments in Securities
	Level 1		Level 2		Level 3		Total
S&P Emerging Markets High Beta Portfolio
Equity Securities	$	6,373,341	$	55,784	$	—	$	6,429,125
S&P Emerging Markets Low Volatility Portfolio
Equity Securities		218,003,639		18,386		—		218,022,025
S&P International Developed High Beta Portfolio
Equity Securities		6,203,349		—		0		6,203,349
S&P International Developed Low Volatility Portfolio
Equity Securities		209,965,295		1,058,475		—		211,023,770

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 carryforward) 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 carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Funds to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in 8 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 carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The following Funds had capital loss carryforwards as of October 31, 2013, which is not subject to expiration:

	Capital Loss Carryforward
	Short-Term		Long-Term		Total*
S&P 500® High Beta Portfolio	$	3,482,640	$	378,785	$	3,861,425
S&P 500® Low Volatility Portfolio		50,274,108		7,558,180		57,832,288
S&P Emerging Markets High Beta Portfolio		85,890		149,120		235,010
S&P Emerging Markets Low Volatility Portfolio		3,528,059		41,067		3,569,126
S&P International Developed High Beta Portfolio		—		34,544		34,544
S&P International Developed Low Volatility Portfolio		619,341		—		619,341
S&P MidCap Low Volatility Portfolio		188,590		—		188,590
S&P SmallCap Low Volatility Portfolio		80,071		—		80,071

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

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Note 7. Investment Transactions

For the six-month period ended April 30, 2014, the cost of securities purchased and proceeds from sales of securities, excluding short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, were as follows:

	Purchases		Sales
S&P 500® High Beta Portfolio	$	174,886,845	$	175,177,902
S&P 500® High Dividend Portfolio		33,236,181		33,824,479
S&P 500® Low Volatility Portfolio		875,261,803		875,521,460
S&P Emerging Markets High Beta Portfolio		2,584,619		2,230,532
S&P Emerging Markets Low Volatility Portfolio		96,551,347		88,942,566
S&P International Developed High Beta Portfolio		2,938,336		2,852,130
S&P International Developed Low Volatility Portfolio		45,804,862		44,662,264
S&P MidCap Low Volatility Portfolio		7,363,697		6,811,551
S&P SmallCap Low Volatility Portfolio		13,861,150		13,937,570

For the six-month period ended April 30, 2014, in-kind transactions associated with creations and redemptions were as follows:

	Cost of Securities Received		Value of Securities Delivered
S&P 500® High Beta Portfolio	$	235,674,561	$	572,600,701
S&P 500® High Dividend Portfolio		47,891,471		35,510,681
S&P 500® Low Volatility Portfolio		585,501,748		887,246,223
S&P Emerging Markets High Beta Portfolio		1,597,452		—
S&P Emerging Markets Low Volatility Portfolio		4,940,699		1,304,913
S&P International Developed High Beta Portfolio		5,679,810		5,745,626
S&P International Developed Low Volatility Portfolio		53,202,782		—
S&P MidCap Low Volatility Portfolio		4,321,021		3,416,186
S&P SmallCap Low Volatility Portfolio		29,009,604		17,964,008

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

At April 30, 2014, 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:

	Cost		Net Unrealized Appreciation		Gross Unrealized Appreciation		Gross Unrealized (Depreciation)
S&P 500® High Beta Portfolio	$	229,720,621	$	6,966,929	$	18,002,307	$	(11,035,378	)
S&P 500® High Dividend Portfolio		150,248,112		11,956,605		14,675,181		(2,718,576	)
S&P 500® Low Volatility Portfolio		3,530,571,573		379,632,798		413,117,451		(33,484,653	)
S&P Emerging Markets High Beta Portfolio		6,222,303		210,243		457,589		(247,346	)
S&P Emerging Markets Low Volatility Portfolio		216,182,258		1,839,767		11,521,070		(9,681,303	)
S&P International Developed High Beta Portfolio		6,178,247		25,102		299,813		(274,711	)
S&P International Developed Low Volatility Portfolio		197,275,353		13,748,417		15,456,918		(1,708,501	)
S&P MidCap Low Volatility Portfolio		22,185,635		1,595,797		1,872,895		(277,098	)
S&P SmallCap Low Volatility Portfolio		42,062,141		1,145,992		1,943,233		(797,241	)

Note 8. Trustees’ and Officer’s Fees

Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to each Trustee who is not an “interested person” as defined in the 1940 Act (an “Independent Trustee”) and Officer of the Funds. The Adviser, as a result of each Fund’s unitary management fee, pays for such compensation. The Trustee who is an “interested person” (the “Non-Independent Trustee”) of the Trust does not receive any Trustees’ fees.

The Trust has adopted a deferred compensation plan (the “Plan”). Under the Plan, an Independent Trustee who has executed a Deferred Fee Agreement (a “Participating Trustee”) may defer receipt of all or a portion of his compensation (“Deferral Fees”). Such Deferral Fees are deemed to be invested in select PowerShares Funds. The Deferral Fees payable to the Participating Trustee are valued as of the date such Deferral Fees would have been paid to the Participating Trustee. The value increases with contributions or with increases in the

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value of the Shares selected, and the value decreases with distributions or with declines in the value of the Shares selected. Obligations under the deferred compensation 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 (100,000 Shares for S&P Emerging Markets High Beta Portfolio, S&P Emerging Markets Low Volatility Portfolio, S&P International Developed High Beta Portfolio and S&P International Developed Low Volatility Portfolio). Only Authorized Participants are permitted to purchase or redeem Creation Units from the Funds. Such transactions are generally 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 each Fund’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.

S&P Emerging Markets Low Volatility Portfolio charges certain transaction fees for creations and redemptions, which are treated as increases in capital, which are shown in the Statements of Changes in Net Assets as Transaction fees.

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

48

Fees and Expenses

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

The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended April 30, 2014.

In addition to the fees and expenses which the PowerShares S&P SmallCap Low Volatility 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 you bear indirectly are included in the Portfolio’s total returns.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

	Beginning Account Value November 1, 2013		Ending Account Value April 30, 2014		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period(1)
PowerShares S&P 500® High Beta Portfolio (SPHB)
Actual	$	1,000.00	$	1,099.75		0.25	%	$	1.30
Hypothetical (5% return before expenses)		1,000.00		1,023.55		0.25			1.25
PowerShares S&P 500® High Dividend Portfolio (SPHD)
Actual		1,000.00		1,098.85		0.30			1.56
Hypothetical (5% return before expenses)		1,000.00		1,023.31		0.30			1.51
PowerShares S&P 500® Low Volatility Portfolio (SPLV)
Actual		1,000.00		1,076.16		0.25			1.29
Hypothetical (5% return before expenses)		1,000.00		1,023.55		0.25			1.25
PowerShares S&P Emerging Markets High Beta Portfolio (EEHB)
Actual		1,000.00		978.78		0.30			1.47
Hypothetical (5% return before expenses)		1,000.00		1,023.31		0.30			1.51

49

Fees and Expenses (continued)

	Beginning Account Value November 1, 2013		Ending Account Value April 30, 2014		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period(1)
PowerShares S&P Emerging Markets Low Volatility Portfolio (EELV)
Actual	$	1,000.00	$	963.07		0.30	%	$	1.46
Hypothetical (5% return before expenses)		1,000.00		1,023.31		0.30			1.51
PowerShares S&P International Developed High Beta Portfolio (IDHB)
Actual		1,000.00		1,059.75		0.26			1.33
Hypothetical (5% return before expenses)		1,000.00		1,023.51		0.26			1.30
PowerShares S&P International Developed Low Volatility Portfolio (IDLV)
Actual		1,000.00		1,054.17		0.25			1.27
Hypothetical (5% return before expenses)		1,000.00		1,023.55		0.25			1.25
PowerShares S&P MidCap Low Volatility Portfolio (XMLV)
Actual		1,000.00		1,063.65		0.25			1.28
Hypothetical (5% return before expenses)		1,000.00		1,023.55		0.25			1.25
PowerShares S&P SmallCap Low Volatility Portfolio (XSLV)
Actual		1,000.00		1,043.96		0.25			1.27
Hypothetical (5% return before expenses)		1,000.00		1,023.55		0.25			1.25

⁽¹⁾  Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six-month period ended April 30, 2014. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value of the period, then multiplying the result by 181/365.

50

Board Considerations Regarding Continuation of Investment Advisory

Agreement and Sub-Advisory Agreement

At a meeting held on April 17, 2014, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust II (the “Trust”), including the Independent Trustees, approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the “Adviser”) and the Trust for the following 58 series (each, a “Fund” and collectively, the “Funds”):

PowerShares 1-30 Laddered Treasury Portfolio

PowerShares Aggregate Bond Portfolio

PowerShares Build America Bond Portfolio

PowerShares CEF Income Composite Portfolio

PowerShares Chinese Yuan Dim Sum Bond Portfolio

PowerShares DWA Developed Markets Momentum Portfolio

PowerShares DWA Emerging Markets Momentum Portfolio

PowerShares DWA SmallCap Momentum Portfolio

PowerShares Emerging Markets Infrastructure Portfolio

PowerShares Emerging Markets Sovereign Debt Portfolio

PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio

PowerShares FTSE RAFI Emerging Markets Portfolio

PowerShares Fundamental Emerging Markets Local Debt Portfolio

PowerShares Fundamental High Yield^® Corporate Bond Portfolio

PowerShares Fundamental Investment Grade Corporate Bond Portfolio

PowerShares Global Agriculture Portfolio

PowerShares Global Clean Energy Portfolio

PowerShares Global Gold and Precious Metals Portfolio

PowerShares Global Short Term High Yield Bond Portfolio

PowerShares Global Water Portfolio

PowerShares Insured California Municipal Bond Portfolio

PowerShares Insured National Municipal Bond Portfolio

PowerShares Insured New York Municipal Bond Portfolio

PowerShares International BuyBack Achievers^TM Portfolio*

PowerShares International Corporate Bond Portfolio

PowerShares KBW Bank Portfolio

PowerShares KBW Capital Markets Portfolio

PowerShares KBW High Dividend Yield Financial Portfolio

PowerShares KBW Insurance Portfolio

PowerShares KBW Premium Yield Equity REIT Portfolio

PowerShares KBW Property & Casualty Insurance Portfolio

PowerShares KBW Regional Banking Portfolio

PowerShares NYSE Century Portfolio*

PowerShares Preferred Portfolio

PowerShares S&P 500^® High Beta Portfolio

PowerShares S&P 500^® High Dividend Portfolio

PowerShares S&P 500^® High Momentum Portfolio

PowerShares S&P 500^® Low Volatility Portfolio

PowerShares S&P Emerging Markets High Beta Portfolio

PowerShares S&P Emerging Markets Low Volatility Portfolio

PowerShares S&P International Developed High Beta Portfolio

PowerShares S&P International Developed High Quality Portfolio

PowerShares S&P International Developed Low Volatility Portfolio

PowerShares S&P MidCap Low Volatility Portfolio

PowerShares S&P SmallCap Consumer Discretionary Portfolio

PowerShares S&P SmallCap Consumer Staples Portfolio

PowerShares S&P SmallCap Energy Portfolio

PowerShares S&P SmallCap Financials Portfolio

PowerShares S&P SmallCap Health Care Portfolio

PowerShares S&P SmallCap Industrials Portfolio

PowerShares S&P SmallCap Information Technology Portfolio

PowerShares S&P SmallCap Low Volatility Portfolio

PowerShares S&P SmallCap Materials Portfolio

PowerShares S&P SmallCap Utilities Portfolio

PowerShares Senior Loan Portfolio

PowerShares VRDO Tax-Free Weekly Portfolio

* The Trustees previously approved the initial Investment Advisory Agreement at a meeting held on December 17, 2013.

Also at the April 17, 2014 meeting, the Board of Trustees of the Trust, including the Independent Trustees, approved the continuation of the Investment Sub-Advisory Agreement between the Adviser and the following eight affiliated sub-advisers for PowerShares Senior Loan Portfolio (the “Sub-Advisory Agreement”): Invesco Advisers, Inc.; Invesco Asset Management Deutschland, GmbH; Invesco Asset Management Limited; Invesco Asset Management (Japan) Limited; Invesco Australia Limited; Invesco Hong Kong Limited; Invesco Senior Secured Management, Inc.; and Invesco Canada Ltd. (each, a “Sub-Adviser” and collectively, the “Sub-Advisers”).

The Trustees reviewed information from the Adviser describing: (i) the nature, extent and quality of services provided, (ii) the investment performance of the Funds and the Adviser, (iii) the costs of services provided and estimated profits realized by the Adviser, (iv) the extent to which economies of scale are realized as a Fund grows, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered to and amounts paid by other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with each Fund. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board’s analysis.

51

Board Considerations Regarding Continuation of Investment Advisory

Agreement and Sub-Advisory Agreement (continued)

Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser’s services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser’s current organization and staffing, including operational support provided by the Adviser’s parent organization, Invesco Ltd., and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser’s execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds (other than PowerShares Aggregate Bond Portfolio and PowerShares S&P 500^® High Momentum Portfolio, which Funds had not commenced operations as of April 17, 2014), their underlying indexes and their primary benchmarks for the one-year, three-year, five-year and since-inception periods ended December 31, 2013, as applicable, including reports for each of those periods on the correlation and tracking error between each Fund’s performance and the performance of its underlying index, as well as the Adviser’s analysis of the tracking error between each Fund and its underlying index. In reviewing the tracking error report, the Trustees considered information provided by Ibbotson Associates, a consultant to the Independent Trustees, with respect to general expected tracking error ranges and various explanations for any tracking error. The Trustees noted that for each applicable period, the correlation for each Fund, other than the five-year period for PowerShares Fundamental High Yield Corporate Bond Portfolio, the since-inception period for PowerShares Global Short Term High Yield Bond Portfolio, the one- and three-year periods for PowerShares Insured New York Municipal Bond Portfolio and the one-, three- and five-year periods for PowerShares VRDO Tax-Free Weekly Portfolio, was within the targeted range set forth in the Trust’s registration statement. The Trustees reviewed the reasons provided by the Adviser for PowerShares Global Short Term High Yield Bond Portfolio’s, PowerShares Insured New York Municipal Bond Portfolio’s, PowerShares Fundamental High Yield Corporate Bond Portfolio’s and PowerShares VRDO Tax-Free Weekly Portfolio’s level of correlation to its underlying index, as well as the Adviser’s expectations for such Fund’s correlation going forward. The Trustees noted that for each applicable period, the tracking error for each Fund was within the targeted range set forth in the Trust’s registration statement and concluded that each Fund’s correlation to its underlying index and the tracking error for each Fund were within an acceptable range given that Fund’s particular circumstances.

The Trustees also considered the services provided by the Adviser in its oversight of the Funds’ administrator, custodian and transfer agent. They noted the significant amount of time, effort and resources that had been devoted to this oversight function.

Based on their review, the Trustees concluded that the nature, extent and quality of services provided by the Adviser to the Funds under the Investment Advisory Agreement were appropriate and reasonable.

Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser on each Fund’s net expense ratio and unitary advisory fee, as compared to information compiled by the Adviser from Lipper Inc. databases on the net expense ratios of comparable exchange-traded funds (“ETFs”), open-end (non-ETF) index funds and open-end actively-managed funds. The Trustees noted that the annual advisory fee charged to each Fund, as set forth below, is a unitary fee and that the Adviser pays all other operating expenses of each Fund, including the fees payable to the Sub-Advisers for PowerShares Senior Loan Portfolio, except that each Fund pays its brokerage expenses, taxes, interest (including for PowerShares Senior Loan Portfolio, interest expenses associated with its line of credit), litigation expenses and other extraordinary expenses.

— 0.22%: PowerShares Fundamental Investment Grade Corporate Bond Portfolio

— 0.25%: PowerShares 1-30 Laddered Treasury Portfolio, PowerShares Aggregate Bond Portfolio, PowerShares S&P 500^® High Beta Portfolio, PowerShares S&P 500^® High Momentum Portfolio, PowerShares S&P 500^® Low Volatility Portfolio, PowerShares S&P MidCap Low Volatility Portfolio, PowerShares S&P SmallCap Low Volatility Portfolio, PowerShares VRDO Tax-Free Weekly Portfolio

— 0.28%: PowerShares Build America Bond Portfolio, PowerShares Insured California Municipal Bond Portfolio, PowerShares Insured National Municipal Bond Portfolio, PowerShares Insured New York Municipal Bond Portfolio

— 0.29%: PowerShares S&P SmallCap Consumer Discretionary, PowerShares S&P SmallCap Consumer Staples Portfolio, PowerShares S&P SmallCap Energy Portfolio, PowerShares S&P SmallCap Financials Portfolio, PowerShares S&P SmallCap Health Care Portfolio, PowerShares S&P SmallCap Industrials Portfolio, PowerShares S&P SmallCap Information Technology Portfolio, PowerShares S&P SmallCap Materials Portfolio, PowerShares S&P SmallCap Utilities Portfolio

— 0.30%: PowerShares S&P 500^® High Dividend Portfolio

— 0.35%: PowerShares Global Short Term High Yield Bond Portfolio, PowerShares KBW Bank Portfolio, PowerShares KBW Capital Markets Portfolio, PowerShares KBW High Dividend Yield Financial Portfolio, PowerShares KBW Insurance Portfolio, PowerShares KBW Premium Yield Equity REIT Portfolio, PowerShares KBW Property & Casualty Insurance Portfolio, PowerShares KBW Regional Banking Portfolio, PowerShares S&P International Developed High Beta Portfolio, PowerShares S&P International Developed Low Volatility Portfolio

52

Board Considerations Regarding Continuation of Investment Advisory

Agreement and Sub-Advisory Agreement (continued)

— 0.45%: PowerShares Chinese Yuan Dim Sum Bond Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio, PowerShares S&P Emerging Markets High Beta Portfolio, PowerShares S&P Emerging Markets Low Volatility Portfolio, PowerShares S&P International Developed High Quality Portfolio

— 0.49%: PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio, PowerShares FTSE RAFI Emerging Markets Portfolio

— 0.50%: PowerShares CEF Income Composite Portfolio, PowerShares Emerging Markets Sovereign Debt Portfolio, PowerShares Fundamental Emerging Markets Local Debt Portfolio, PowerShares Fundamental High Yield^® Corporate Bond Portfolio, PowerShares International Corporate Bond Portfolio, PowerShares NYSE Century Portfolio, PowerShares Preferred Portfolio

— 0.55% PowerShares International BuyBack Achievers^TM Portfolio

— 0.60%: PowerShares DWA SmallCap Momentum Portfolio

— 0.65%: PowerShares Senior Loan Portfolio

— 0.75%: PowerShares Emerging Markets Infrastructure Portfolio, PowerShares Global Agriculture Portfolio, PowerShares Global Clean Energy Portfolio, PowerShares Global Gold and Precious Metals Portfolio, PowerShares Global Water Portfolio

— 0.80%: PowerShares DWA Developed Markets Momentum Portfolio

— 0.90%: PowerShares DWA Emerging Markets Momentum Portfolio

The Trustees noted that the Adviser represented that it does not serve as the investment adviser to any clients, other than other ETFs also overseen by the Trustees, with comparable investment strategies as the Funds, but that the Adviser provides sub-advisory services to clients with comparable investment strategies as certain of the Funds. The Trustees further noted the Adviser’s explanation with respect to the sub-advisory fees it receives for such services in comparison to the advisory fees charged to the Funds. The Trustees noted that each Fund’s advisory fee was:

— equal to or lower than the median net expense ratio of its ETF peer funds (except for the advisory fee of each of PowerShares 1-30 Laddered Treasury Portfolio, PowerShares Aggregate Bond Portfolio, PowerShares CEF Income Composite Portfolio, PowerShares DWA Emerging Markets Momentum Portfolio, PowerShares DWA SmallCap Momentum Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio, PowerShares Fundamental High Yield^® Corporate Bond Portfolio, PowerShares Fundamental Investment Grade Corporate Bond Portfolio PowerShares Global Agriculture Portfolio, PowerShares Global Clean Energy Portfolio, PowerShares Global Gold and Precious Metals Portfolio, PowerShares Global Water Portfolio, PowerShares Insured California Municipal Bond Portfolio, PowerShares Insured National Municipal Bond Portfolio, PowerShares Insured New York Municipal Bond Portfolio, PowerShares International BuyBack Achievers^TM Portfolio, PowerShares International Corporate Bond Portfolio, PowerShares NYSE Century Portfolio, PowerShares S&P International Developed Low Volatility Portfolio, PowerShares S&P International Developed High Beta Portfolio, PowerShares S&P International Developed High Quality Portfolio, PowerShares Senior Loan Portfolio and PowerShares VRDO Tax-Free Weekly Portfolio, which were higher than the median net expense ratio of its ETF peer funds); and

— equal to or lower than the median net expense ratio of its open-end index peer funds (except for the advisory fee of each of PowerShares 1-30 Laddered Treasury Portfolio, PowerShares Aggregate Bond Portfolio, PowerShares DWA Emerging Markets Momentum Portfolio, PowerShares DWA SmallCap Momentum Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio, PowerShares Fundamental Investment Grade Corporate Bond Portfolio, PowerShares KBW Premium Yield Equity REIT Portfolio and PowerShares S&P International Developed Low Volatility Portfolio, which was higher than the median net expense ratio of its open-end index peer funds; and there was no comparable data for PowerShares Build America Bond Portfolio, PowerShares Chinese Yuan Dim Sum Bond Portfolio, PowerShares DWA Developed Markets Momentum Portfolio, PowerShares Emerging Markets Infrastructure Portfolio, PowerShares Emerging Markets Sovereign Debt Portfolio, PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio, PowerShares Fundamental Emerging Markets Local Debt Portfolio, PowerShares Fundamental High Yield^® Corporate Bond Portfolio, PowerShares Global Agriculture Portfolio, PowerShares Global Clean Energy Portfolio, PowerShares Global Gold and Precious Metals Portfolio, PowerShares Global Short Term High Yield Bond Portfolio, PowerShares Global Water Portfolio, PowerShares Insured California Municipal Bond Portfolio, PowerShares Insured National Municipal Bond Portfolio, PowerShares Insured New York Municipal Bond Portfolio, PowerShares International Corporate Bond Portfolio, PowerShares KBW Bank Portfolio, PowerShares KBW Capital Markets Portfolio, PowerShares KBW High Dividend Yield Financial Portfolio, PowerShares KBW Insurance Portfolio, PowerShares KBW Property & Casualty Insurance Portfolio, PowerShares KBW Regional Banking Portfolio, PowerShares Preferred Portfolio, PowerShares S&P SmallCap Consumer Discretionary Portfolio, PowerShares S&P SmallCap Consumer Staples Portfolio, PowerShares S&P SmallCap Energy Portfolio, PowerShares S&P

53

Board Considerations Regarding Continuation of Investment Advisory

Agreement and Sub-Advisory Agreement (continued)

SmallCap Financials Portfolio, PowerShares S&P SmallCap Health Care Portfolio, PowerShares S&P SmallCap Industrials Portfolio, PowerShares S&P SmallCap Materials Portfolio, PowerShares Senior Loan Portfolio or PowerShares VRDO Tax-Free Weekly Portfolio); but

— lower than the median expense ratio of its open-end actively-managed peer funds.

The Trustees also considered that, during the period, certain Funds incurred other expenses excluded from those Funds’ unitary advisory fees, such that those Funds’ net expense ratios were in excess of the Funds’ unitary advisory fees. The Trustees noted the Adviser’s belief that such expenses were not expected to be incurred at that level going forward. The Trustees considered that the Adviser had agreed to waive a portion of its advisory fee, at least until February 28, 2016, for PowerShares S&P Emerging Markets High Beta Portfolio, PowerShares S&P Emerging Markets Low Volatility Portfolio, PowerShares S&P International Developed High Beta Portfolio and PowerShares S&P International Developed Low Volatility Portfolio. The Trustees determined that each Fund’s advisory fee was reasonable because of the complexity of the indexes, the distinguishing factors of the Funds and the administrative, operational and management oversight costs for the Adviser. The Trustees also noted that a portion of each Fund’s advisory fee was attributable to a license fee payable out of the unitary fee charged to that Fund. The Board concluded that the unitary advisory fee charged to each Fund was reasonable and appropriate in light of the services provided.

In conjunction with their review of the unitary advisory fee, the Trustees also considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement. The Trustees reviewed information provided by the Adviser on its profitability, as well as any profits or losses realized by the Adviser from its relationship to each Fund. The Trustees concluded that the estimated profitability to the Adviser of the advisory services provided to any of the Funds was not unreasonable.

Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. The Trustees reviewed the information provided by the Adviser as to the extent to which economies of scale are realized as each Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees reviewed each Fund’s asset size and expense ratio. The Trustees noted that any reduction in fixed costs associated with the management of the Funds would be enjoyed by the Adviser, but a unitary fee provides a level of certainty in expenses for the Funds. The Trustees considered whether the advisory fee rate for each Fund was reasonable in relation to the asset size of that Fund, and concluded that the flat advisory fee was reasonable and appropriate.

The Trustees noted that the Adviser had not identified any further benefits that it derived from its relationship with the Funds and had noted that it does not have any soft-dollar arrangements.

Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund.

Investment Sub-Advisory Agreement

As noted above, the Board of Trustees of the Trust, including the Independent Trustees, approved the continuation of the Sub-Advisory Agreement for the PowerShares Senior Loan Portfolio at a meeting held on April 17, 2014. The review process followed by the Board is described in detail above. In connection with the review of the Sub-Advisory Agreement, the Board considered the factors described below, among others.

Nature, Extent and Quality of Services. The Trustees considered the nature, extent and quality of services provided under the Sub-Advisory Agreement. The Board also considered the benefits described by the Adviser in having multiple affiliated Sub-Advisers. The Board reviewed the qualifications and background of each Sub-Adviser, the investment approach of the Sub-Adviser whose investment personnel manage the PowerShares Senior Loan Portfolio’s assets, the experience and skills of the investment personnel responsible for the day-to-day management of the Fund, and the resources made available to such personnel.

Based on their review, the Trustees concluded that the nature, extent and quality of services provided by the Sub-Advisers to PowerShares Senior Loan Portfolio under the Sub-Advisory Agreement were appropriate and reasonable.

Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser and the Sub-Advisers on the sub-advisory fee rate under the Sub-Advisory Agreement. The Trustees noted that the sub-advisory fee charged by the Sub-Advisers under the Sub-Advisory Agreement is consistent with the compensation structure used throughout Invesco when Invesco’s affiliates provide sub-advisory services for funds managed by other Invesco affiliates. The Board considered how the sub-advisory fees relate to the overall advisory fee for the PowerShares Senior Loan Portfolio and noted that the Adviser compensates the Sub-Advisers from its fee. The Trustees also considered information provided by Invesco Senior Secured Management, Inc. on the revenues it

54

Board Considerations Regarding Continuation of Investment Advisory

Agreement and Sub-Advisory Agreement (continued)

receives under the Sub-Advisory Agreement. The Trustees concluded that the sub-advisory fees were reasonable in light of the sub-advisory services provided to the PowerShares Senior Loan Portfolio.

Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. As part of their review of the Investment Advisory Agreement for the PowerShares Senior Loan Portfolio, the Trustees considered the extent to which economies of scale are realized as the PowerShares Senior Loan Portfolio grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees considered whether the sub-advisory fee rate for PowerShares Senior Loan Portfolio was reasonable in relation to the asset size of the Fund, and concluded that the flat sub-advisory fee was reasonable and appropriate.

The Trustees noted that the Sub-Advisers had not identified any further benefits that they derived from their relationships with the PowerShares Senior Loan Portfolio.

Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Sub-Advisory Agreement for the PowerShares Senior Loan Portfolio. No single factor was determinative in the Board’s analysis.

55

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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 (the “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 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 Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Form N-Qs will be available on the Commission’s website at www.sec.gov. The Trust’s Form N-Qs may also be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. 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.

©2014 Invesco PowerShares Capital Management LLC			P-PS-SAR-12
3500 Lacey Road, Suite 700 Downers Grove, IL 60515
invescopowershares.com    800.983.0903		@PowerShares

Item 2. Code of Ethics.

Not required for a semi-annual report.

Item 3. Audit Committee Financial Expert.

Not required for a semi-annual report.

Item 4. Principal Accountant Fees and Services.

Not required for a semi-annual report.

Item 5. Audit Committee of Listed Registrants.

Not required for a semi-annual report.

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 a semi-annual report.

(a)(2) Certifications of the Registrant’s President and Treasurer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached as Exhibit 99.CERT.

(a)(3) Not Applicable.

(b) Certifications of the Registrant’s President and Treasurer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are attached as Exhibit 99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) PowerShares Exchange-Traded Fund Trust II
By:	/s/ Andrew Schlossberg

Name:	Andrew Schlossberg
Title:	President
Date:	July 7, 2014

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By: /s/ Andrew Schlossberg

Name:	Andrew Schlossberg
Title:	President
Date:	July 7, 2014

By: /s/ Steven Hill

Name:	Steven Hill
Title:	Treasurer
Date:	July 7, 2014