Mutual Fund Summary Prospectus (497k)
August 29 2013 - 5:23PM
Edgar (US Regulatory)
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Summary Prospectus
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August 30, 2013
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PSL
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PowerShares
Dynamic
Consumer Staples Sector
Portfolio
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 August 30, 2013 (as each may be amended or supplemented), are incorporated by reference into this Summary Prospectus.
Investment Objective
The PowerShares Dynamic Consumer Staples Sector Portfolio (the Fund) seeks investment results that generally correspond (before
fees and expenses) to the price and yield of the Dynamic Consumer Staples Sector Intellidex
SM
Index (the Underlying Intellidex).
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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0.50%
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Other Expenses
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0.32%
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Total Annual Fund Operating Expenses
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0.82%
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Fee Waivers and Expense Assumption
(1)
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0.17%
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Total Annual Fund Operating Expenses After Fee Waivers and Expense Assumption
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0.65%
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(1)
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Invesco PowerShares Capital Management LLC (the Adviser) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating
expenses of the Fund (excluding interest expenses, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes, Acquired Fund Fees and Expenses, if applicable, and extraordinary expenses) from exceeding 0.60% of the
Funds average daily net assets per year (the Expense Cap) until at least August 31, 2014, and neither the Adviser nor the Fund can discontinue the agreement prior to its expiration. The expenses borne by the Adviser are
subject to recapture by the Adviser for up to three fiscal years following the fiscal year in which the expenses were incurred, but no recapture payment will be made by the Fund if it would result in the Fund exceeding its Expense Cap.
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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 are equal to the Total Annual Fund Operating Expenses
After Fee Waivers and Expense Assumption in the first year and the Total Annual Fund Operating Expenses thereafter. 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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$66
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$245
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$438
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$998
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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 Fund 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 was 57% 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 common stocks of consumer staples companies that comprise the Underlying Intellidex. As of June 30, 2013, the Underlying Intellidex was
comprised of common stocks of 60 U.S. consumer staples companies. These companies are principally engaged in the businesses of providing consumer goods and services that have non-cyclical characteristics, including tobacco, textiles, food and
beverages, and non-discretionary retail goods and services. Strictly in accordance with its guidelines and mandated procedures, NYSE Arca, Inc. (NYSE Arca or the Intellidex Provider) includes common stocks of consumer staples
companies in the Underlying Intellidex principally on the basis of their capital appreciation potential that NYSE Arca identifies pursuant to a proprietary selection methodology.
Concentration Policy.
The Fund will concentrate its investments (i.e., invest 25% or more of the value of its total assets) in securities of issuers in any one industry or sector only to the extent
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1
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PSL PowerShares Dynamic Consumer Staples Sector Portfolio
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P-PSL-SUMPRO-1
that the Underlying Intellidex 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.
Consumer Staples Sector Risk.
Changes in the
worldwide economy, consumer spending, competition, demographics and consumer preferences, exploration and production spending may adversely affect companies in the consumer staples sector. Companies in this sector also are affected by changes in
government regulation, world events and economic conditions, as well as natural and man-made disasters and political, social or labor unrest that affect production and distribution of consumer staple products.
Equity Risk.
Equity risk is the risk that the value of the securities the Fund holds will fall due to general market and economic conditions, perceptions
regarding the industries in which the issuers of securities the Fund holds participate or factors relating to specific companies in which the Fund invests. For example, an adverse event, such as an unfavorable earnings report, may depress the value
of securities the 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 the Fund holds. In addition,
securities of an issuer in the Funds 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, the Underlying Intellidex will be concentrated to a significant degree in securities
of issuers located in a single industry or a sector. To the extent that the Underlying Intellidex 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 may face 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.
Non-Correlation Risk.
The Funds return may not match the return
of the Underlying Intellidex for a number of reasons. For example, the Fund incurs operating expenses not applicable to the Underlying Intellidex, and incurs costs in buying and selling securities, especially when rebalancing the Funds
securities holdings to reflect changes in the composition of the Underlying Intellidex. In addition, the performance of the Fund and the Underlying
Intellidex may vary due to asset valuation differences and differences between the Funds portfolio and the Underlying Intellidex 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 the
Underlying Intellidex. Therefore, it would not necessarily buy or sell a security unless that security is added or removed, respectively, from the Underlying Intellidex, even if that security generally is underperforming.
Market Risk.
Securities in the Underlying Intellidex 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 Intellidex.
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).
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.
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 broad measures of market performance and an additional index with characteristics relevant to the Fund. The Funds
performance reflects fee waivers, if any, absent which, performance would have been lower. 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.
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2
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PSL PowerShares Dynamic Consumer Staples Sector Portfolio
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Annual Total ReturnsCalendar Years
The Funds year-to-date total return for the six months ended June 30, 2013 was 20.01%.
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Best Quarter
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Worst Quarter
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16.59% (2nd Quarter 2009)
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(17.36)% (4th Quarter 2008)
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Average Annual Total Returns for the Periods Ended December 31, 2012
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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5 Years
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Since Inception
(10/12/06)
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Return Before Taxes
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9.50
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%
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5.86
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6.38
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Return After Taxes on Distributions
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9.16
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%
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5.59
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%
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6.10
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Return After Taxes on Distributions and Sale of Fund Shares
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6.63
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%
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5.02
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%
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5.49
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Dynamic Consumer Staples Sector Intellidex
SM
Index
(reflects no deduction for fees, expenses or
taxes)
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10.24
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%
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6.60
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%
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7.12
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S&P 500
®
Consumer Staples Index
(reflects no deduction for fees, expenses or taxes)
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10.76
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%
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6.96
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8.45
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S&P 500
®
Index
(reflects no deduction for fees, expenses or taxes)
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16.00
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%
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1.66
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%
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2.94
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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; Vice President of the Trust
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June 2007
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Michael Jeanette
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Vice President and Portfolio Manager of the Adviser
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August 2008
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Brian Picken
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Vice President and Portfolio Manager of the Adviser
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August 2010
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Theodore Samulowitz
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Vice President and Portfolio Manager of the Adviser
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August 2013
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Purchase and Sale of Fund Shares
The Fund issues and redeems Shares at net asset value (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 of the Fund will trade at market prices rather than NAV, Shares may trade at a price greater than NAV (at a premium), at NAV, or less than NAV (at a discount).
Tax Information
The Funds distributions generally will 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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PSL PowerShares Dynamic Consumer Staples Sector Portfolio
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P-PSL-SUMPRO-1
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