Mutual Fund Summary Prospectus (497k)
February 27 2014 - 4:14PM
Edgar (US Regulatory)
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Summary Prospectus
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February 28, 2014
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KBWI
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PowerShares KBW Insurance Portfolio
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NYSE Arca, Inc.
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Before you invest, you may wish to review the
Funds prospectus, which contains more information about the Fund and its risks. You can find the Funds prospectus and other information about the Fund online at www.invescopowershares.com/prospectus. You can also get this information at
no cost by calling Invesco Distributors, Inc. at
(800) 983-0903
or by sending an
e-mail
request to info@powershares.com. The Funds prospectus and statement of
additional information, both dated February 28, 2014 (as each may be amended or supplemented), are incorporated by reference into this Summary Prospectus.
Investment Objective
The PowerShares KBW Insurance Portfolio (the Fund) seeks investment results that generally correspond (before fees and expenses) to the price and yield of the KBW Insurance Index (the Underlying
Index).
Fund Fees and Expenses
This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund (Shares). Investors may pay brokerage commissions on their purchases and sales of Shares, which are not
reflected in the table or the example below.
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Annual Fund Operating Expenses
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(expenses that you pay each year as a percentage of the value of
your investment)
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Management Fees
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0.35%
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Other Expenses
(1)
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0.00%
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Total Annual Fund Operating Expenses
(1)
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0.35%
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(1)
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Other Expenses and Total Annual Fund Operating Expenses have been restated to reflect current fees.
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Example
This example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other funds.
This example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your
Shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Funds operating expenses remain the same. This example does not include the brokerage commissions that investors may pay
to buy and sell Shares. Although your actual costs may be higher or lower, your costs, based on these assumptions, would be:
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1 Year
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3 Years
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5 Years
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10 Years
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$36
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$113
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$197
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$443
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Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it purchases and sells securities (or turns over its portfolio). A higher portfolio turnover will cause the Fund to incur additional
transaction costs and may result in higher taxes when Shares are
held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the example, may affect the Funds performance. During the most recent fiscal
year, the Funds portfolio turnover rate was 3% of the average value of its portfolio, excluding the value of portfolio securities received or delivered as a result of the Funds in-kind creations and redemptions.
Principal Investment Strategies
The Fund
generally will invest at least 90% of its total assets in securities of U.S. publicly traded companies in the insurance industry that comprise the Underlying Index, including, but not limited to, personal and commercial lines, property/casualty,
life insurance, reinsurance, brokerage and financial guarantee companies. Keefe, Bruyette & Woods, Inc. (KBW or the Index Provider) compiles, maintains and calculates the Underlying Index, which is a float-adjusted,
modified-market capitalization-weighted index that seeks to reflect the performance of such companies. The Fund generally invests in all of the securities comprising the Underlying Index in proportion to their weightings in the Underlying Index.
Concentration Policy.
The Fund will concentrate its investments (i.e., invest more than 25% of the value of its net assets) in securities of
issuers in any one industry or sector only to the extent that the Underlying Index reflects a concentration in that industry or sector. The Fund will not otherwise concentrate its investments in securities of issuers in any one industry or sector.
Principal Risks of Investing in the Fund
The following summarizes the principal risks of the Fund.
Insurance Industry Concentration Risk.
Many factors,
including changes in interest rates, general economic conditions, the imposition of premium rate caps, competition and the pressure to compete globally, including price and marketing competition, and other changes in government regulation or tax
law, can significantly affect companies in the insurance industry. In addition, different segments of the insurance industry can be significantly affected by mortality and morbidity rates, actuarial miscalculations, environmental clean-up costs and
catastrophic events such as natural disasters and terrorist acts, and availability and cost of reinsurance.
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1
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KBWI PowerShares KBW Insurance Portfolio
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P-KBWI-SUMPRO-1
Equity Risk.
Equity risk is the risk that the value of equity securities, including common stocks, may fall
due to both changes in general economic conditions that impact the market as a whole, as well as factors that directly relate to a specific company or its industry. Such general economic conditions include changes in interest rates, periods of
market turbulence or instability, or general and prolonged periods of economic decline and cyclical change. It is possible that a drop in the stock market may depress the price of most or all of the common stocks that the Fund holds. In addition,
equity risk includes the risk that investor sentiment toward particular industries will become negative. The value of a companys common stock may fall solely because of factors, such as an increase in production costs, that negatively impact
other companies in the same region, industry or sector of the market. A companys common stock also may decline significantly in price over a short period of time due to factors specific to that company, including decisions made by its
management or lower demand for the companys products or services. For example, an adverse event, such as an unfavorable earnings report or the failure to make anticipated dividend payments, may depress the value of common stock.
Industry Concentration Risk.
In following its methodology, the Underlying Index will be concentrated to a significant degree in securities of issuers located
in a single industry or sector. To the extent that the Underlying Index concentrates in the securities of issuers in a particular industry or sector, the Fund will also concentrate its investments to approximately the same extent. By concentrating
its investments in an industry or sector, the Fund faces more risks than if it were diversified broadly over numerous industries or sectors. Such industry-based risks, any of which may adversely affect the companies in which the Fund invests, may
include, but are not limited to, the following: general economic conditions or cyclical market patterns that could negatively affect supply and demand in a particular industry; competition for resources, adverse labor relations, political or world
events; obsolescence of technologies; and increased competition or new product introductions that may affect the profitability or viability of companies in an industry. In addition, at times, such industry or sector may be out of favor and
underperform other industries or the market as a whole.
Market Risk.
Securities in the Underlying Index are subject to market fluctuations. You
should anticipate that the value of the Shares will decline, more or less, in correlation with any decline in value of the securities in the Underlying Index.
Market Trading Risk.
The Fund faces numerous market trading risks, including the potential lack of an active market for the Shares, losses from trading in secondary markets, and disruption in the
creation/redemption process of the Fund. Any of these factors may lead to the Shares trading at a premium or discount to the Funds net asset value (NAV).
Non-Correlation Risk.
The Funds return may not match the return of the Underlying Index for a number of reasons. For example, the Fund incurs operating expenses not applicable to the Underlying Index,
and incurs costs in buying and selling securities, especially when rebalancing the Funds securities holdings to reflect changes in the composition of the Underlying Index. In addition,
the performance of the Fund and the Underlying Index may vary due to asset valuation differences and differences between the Funds portfolio and the Underlying Index resulting from legal
restrictions, costs or liquidity constraints.
Index Risk.
Unlike many investment companies, the Fund does not utilize an investing strategy that
seeks returns in excess of its Underlying Index. Therefore, it would not necessarily buy or sell a security unless that security is added or removed, respectively, from the Underlying Index, even if that security generally is underperforming.
Non-Diversified Fund Risk.
Because the Fund is non-diversified and can invest a greater portion of its assets in securities of individual issuers
than a diversified fund, 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 Funds volatility and cause the performance of a
relatively small number of issuers to have a greater impact on the Funds performance.
Issuer-Specific Changes.
The value of an individual
security or particular type of security may be more volatile than the market as a whole and may perform differently from the value of the market as a whole.
The Shares will change in value, and you could lose money by investing in the Fund. The Fund may not achieve its investment objective.
Performance
The bar chart below shows how the Fund has performed. The table below the bar
chart shows the Funds average annual total returns (before and after taxes). The bar chart and table provide an indication of the risks of investing in the Fund by showing how the Funds total return has varied from year to year and by
showing how the Funds average annual total returns compared with a broad measure of market performance and an additional index with characteristics relevant to the Fund. Although the information shown in the bar chart and the table gives you
some idea of the risks involved in investing in the Fund, the Funds past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future. Updated performance information is available online at
www.InvescoPowerShares.com.
Annual Total ReturnsCalendar Years
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Best Quarter
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Worst Quarter
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18.54% (1st Quarter 2013)
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(6.90)% (2nd Quarter 2012)
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2
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KBWI PowerShares KBW Insurance Portfolio
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Average Annual Total Returns for the Periods Ended December 31, 2013
After-tax returns in the table below are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state
and local taxes. Actual after-tax returns depend on an investors tax situation and may differ from those shown, and after-tax returns shown are not relevant to investors who hold Shares through tax-deferred arrangements, such as 401(k) plans
or individual retirement accounts.
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1 Year
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Since
Inception
(11/01/11)
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Return Before Taxes
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55.64
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34.83
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Return After Taxes on Distributions
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55.19
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34.15
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Return After Taxes on Distributions and Sale of Fund Shares
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31.78
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27.44
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KBW Insurance Index
(reflects no deduction for fees, expenses or taxes)
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56.19
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35.25
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S&P 500
®
Insurance Index
(reflects no deduction for fees, expenses or taxes)
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46.71
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%
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30.42
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%
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Management of the Fund
Investment Adviser.
Invesco PowerShares Capital Management LLC (the Adviser).
Portfolio
Managers.
The following individuals are responsible jointly and primarily for the day-to-day management of the Funds portfolio:
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Name
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Title with Adviser/Trust
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Date Began
Managing
the Fund
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Peter Hubbard
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Vice President and Director of Portfolio Management of the Adviser and Vice President of the Trust
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Since Inception
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Michael Jeanette
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Vice President and Senior Portfolio Manager of the Adviser
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Since Inception
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Theodore Samulowitz
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Vice President and Portfolio Manager of the Adviser
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September 2012
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Brian Picken
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Vice President and Portfolio Manager of the Adviser
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Since Inception
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Tony Seisser
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Vice President and Portfolio Manager of the Adviser
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February 2014
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Purchase and Sale of Shares
The Fund issues and redeems Shares at NAV only with authorized participants (APs) and only in large blocks of 50,000 Shares (each block of Shares is called a Creation Unit), or multiples
thereof (Creation Unit Aggregations), in exchange for the deposit or delivery of a basket of securities. Except when aggregated in Creation Units, the Shares are not redeemable securities of the Fund.
Individual Shares of the Fund may be purchased and sold only on a national securities exchange through brokers. Shares of the Fund are listed for trading on NYSE
Arca, Inc. (NYSE Arca or
the Exchange) and because the Shares will trade at market prices rather than NAV, Shares may trade at prices greater than NAV (at a premium), at NAV, or less than NAV (at a discount).
Tax Information
The Funds
distributions will generally be taxable as ordinary income or capital gains. A sale of Shares may result in capital gain or loss.
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3
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KBWI PowerShares KBW Insurance Portfolio
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P-KBWI-SUMPRO-1
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