Mutual Fund Summary Prospectus (497k)
28 2월 2014 - 5:58AM
Edgar (US Regulatory)
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Summary Prospectus
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February 28, 2014
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PCEF
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PowerShares CEF Income Composite 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 CEF Income Composite Portfolio (the Fund) seeks investment results that generally correspond (before fees and
expenses) to the price and yield of the S-Network Composite Closed-End Fund Index
SM
(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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0.50%
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Other Expenses
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0.00%
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Acquired Fund Fees and Expenses
(1)
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1.27%
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Total Annual Fund Operating Expenses
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1.77%
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(1)
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Acquired Fund Fees and Expenses are indirect fees and expenses that the Fund incurs from investing in the shares of Underlying Funds (as defined herein). The actual Acquired
Fund Fees and Expenses will vary with changes in the allocations of the Funds assets. These expenses are based on the total expense ratio of the Underlying Funds disclosed in each Underlying Funds most recent shareholder report. Please
note that the amount of Total Annual Fund Operating Expenses shown in the above table may differ from the ratio of expenses to average net assets included in the Financial Highlights section of this Prospectus, which reflects the
operating expenses of the Fund and does not include indirect expenses such as Acquired Fund Fees and Expenses.
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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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$180
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$557
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$959
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$2,084
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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 33% 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.-listed closed-end funds that comprise the Underlying Index. The Fund is a
fund of funds, as it invests its assets in the common shares of funds included in the Underlying Index rather than in individual securities (the Underlying Funds). S-Network Global Indexes, LLC (the Index
Provider) compiles, maintains and calculates the Underlying Index, which tracks the overall performance of a global universe of U.S.-listed closed-end funds that are organized under the laws of the United States, which may be invested in
taxable investment grade fixed-income securities, taxable high yield fixed-income securities and taxable equity options. The Underlying Index may include closed-end funds that are advised by an affiliate of Invesco PowerShares Capital Management LLC
(the Adviser). The Fund generally invests in all of the securities comprising its Underlying Index in proportion to their weightings in the Underlying Index.
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 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 the Fund
The following summarizes the principal risks of the Fund.
Fund of Funds Risk.
Because the Fund is a fund of funds, its investment performance largely depends on the investment
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1
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PCEF PowerShares CEF Income Composite Portfolio
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P-PCEF-SUMPRO-1
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 the 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 the Underlying Index may be out of favor and underperform
other segments.
Investments in Closed-End Investment Companies.
The shares of closed-end investment companies may trade at a discount or premium
to, or at, their net asset value (NAV). The securities of closed-end investment companies 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 investment companies that use leverage may expose the Fund to higher volatility in the market value of such securities and the possibility that the Funds long-term returns on such
securities (and, indirectly, the long-term returns of the Shares) will be diminished.
The Fund is permitted to invest in Underlying Funds beyond the
limits set forth in Section 12(d)(1) subject to certain terms and conditions set forth in an exemptive order that the SEC has issued to the Trust. To comply with provisions of the Investment Company Act of 1940, as amended (the 1940
Act), on any matter upon which the Underlying Fund shareholders are solicited to vote, the Adviser will vote Underlying Fund shares in the same general proportion as shares held by other shareholders of the Underlying Fund.
Underlying Funds Risk.
The Fund may be subject to the following risks as a result of its investment in the Underlying Funds:
Interest Rate Risk.
Fixed-income securities prices generally fall as interest rates rise; conversely, fixed-income securities prices generally
rise as interest rates fall.
Credit Risk.
Credit risk is the risk that issuers or guarantors of debt instruments or the counterparty to a
derivatives contract, repurchase agreement or loan of portfolio securities is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. Debt instruments are subject to varying degrees of credit
risk, which may be reflected in credit ratings. There is the chance that any of an Underlying Funds portfolio holdings will have its credit ratings downgraded or will default (fail to make scheduled interest or principal payments), potentially
reducing the funds income level and share price.
Non-Investment Grade Securities Risk.
Non-investment grade securities and unrated
securities of comparable credit quality are subject to the increased risk of an issuers inability to meet principal and interest payment obligations. These securities may be subject to greater price volatility due to such factors as specific
corporate developments, interest rate sensitivity, negative perceptions of the non-investment grade securities markets generally, real or perceived adverse economic and competitive
industry conditions and less secondary market liquidity. If the issuer of non-investment grade securities defaults, an Underlying Fund may incur additional expenses to seek recovery.
Options Risk.
A decision as to whether, when and how to use options involves the exercise of skill and judgment, and even a well-conceived transaction may be
unsuccessful to some degree because of market behavior or unexpected events. Because the exercise of an index option is settled in cash, sellers of index call options cannot provide in advance for their potential settlement obligations by acquiring
and holding the underlying securities. An Underlying Fund will lose money if it is required to pay the purchaser of an index option the difference between the cash value of the index on which the option was written and the exercise price and such
difference is greater than the premium received by the Underlying Fund for writing the option.
Derivatives Risk.
A derivative instrument often
has risks similar to its underlying instrument and may have additional risks, including imperfect correlation between the value of the derivative and the underlying instrument, risks of default by the counterparty to certain derivative transactions,
magnification of losses incurred due to changes in the market value of the securities, instruments, indices or interest rates to which the derivative relates, and risks that the derivative instruments may not be liquid.
Leverage Risk.
Leverage may result from ordinary borrowings, or may be inherent in the structure of certain Underlying Fund investments such as derivatives.
If the prices of those investments decrease, or if the cost of borrowing exceeds any increase in the prices of those investments, the net asset value of the Underlying Funds Shares will decrease faster than if the Underlying Fund had not used
leverage. To repay borrowings, an Underlying Fund may have to sell investments at a time and at a price that is unfavorable to the Underlying Fund. Interest on borrowings is an expense the Underlying Fund would not otherwise incur. Leverage
magnifies the potential for gain and the risk of loss. If an Underlying Fund uses leverage, there can be no assurance that the Underlying Funds leverage strategy will be successful.
Counterparty Risk.
To the extent that an Underlying Fund engages in derivative transactions, it will be subject to credit risk with respect to the counterparties. The Underlying Fund may obtain only a
limited or no recovery or may experience significant delays in obtaining recovery under derivative contracts if a counterparty experiences financial difficulties and becomes bankrupt or otherwise fails to perform its obligations under a derivative
contract.
Senior Loans Risk.
Investments in senior loans typically are below investment grade and are considered speculative because of the
credit risk of their issuers. Such companies are more likely to default on their payments of interest and principal owed, and such defaults could reduce an Underlying Funds NAV and income distributions. In addition, an Underlying Fund may have
to sell securities at lower prices than it otherwise would to meet cash needs or it may have to maintain a greater portion of its assets in cash equivalents than it otherwise would because of impairments and limited liquidity of the collateral
supporting a senior loan, which could negatively affect the Underlying Funds performance.
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2
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PCEF PowerShares CEF Income Composite Portfolio
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Foreign and Emerging Market Securities Risk.
Fluctuations in the value of the U.S. dollar relative to the
values of other currencies may adversely affect investments in foreign and emerging market securities. Foreign and emerging market securities may have relatively low market liquidity, decreased publicly available information about issuers, and
inconsistent and potentially less stringent accounting, auditing and financial reporting requirements and standards of practice comparable to those applicable to domestic issuers. Foreign and emerging market securities are subject to the risks of
expropriation, nationalization or other adverse political or economic developments and the difficulty of enforcing obligations in other countries. Investments in foreign and emerging market securities also may be subject to dividend withholding or
confiscatory taxes, currency blockage and/or transfer restrictions. Emerging markets are subject to greater market volatility, lower trading volume, political and economic instability, uncertainty regarding the existence of trading markets and more
governmental limitations on foreign investment than more developed markets. In addition, securities in emerging markets may be subject to greater price fluctuations than securities in more developed markets.
Liquidity Risk.
Closed-end funds are not limited in their ability to invest in illiquid securities. Securities with reduced liquidity involve greater risk
than securities with more liquid markets. Market quotations for securities not traded on national exchanges may vary over time, and if the credit quality of a fixed-income security unexpectedly declines, secondary trading of that security may
decline for a period of time. In the event that an Underlying Fund voluntarily or involuntarily liquidates portfolio assets during periods of infrequent trading, it may not receive full value for those assets.
Industry Concentration Risk.
An Underlying Fund 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 the Underlying Funds concentrate in the securities of issuers in a particular industry or sector, the Fund will also concentrate its investments to approximately the same extent on a pro rata basis. 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.
Inflation Risk.
The value of assets or income from investment will be worth
less in the future as inflation decreases the value of money.
Deflation Risk.
Prices throughout the economy may decline over time, which may have
an adverse effect on the market valuation of companies, their assets and revenues. In addition, deflation may have an adverse effect on the creditworthiness of issuers and may make issuer default more likely, which may result in a decline in the
value of an Underlying Funds portfolio.
Mortgage-Backed and Asset-Backed Securities Risk.
Investments in mortgage- and asset-backed securities are
subject to prepayment or call risk, which is the risk that payments from the borrower may be received earlier than expected due to changes in the rate at which the underlying loans are prepaid. Securities may be prepaid at a price less than the
original purchase value.
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.
Developments in Financial Markets.
Developments in recent years in the global financial markets illustrate that the current environment is one of
extraordinary and possibly unprecedented uncertainty. Conditions in markets in the U.S. and abroad over the past few years have caused firms in the financial services sector to take significant losses. The economic conditions have resulted, and may
continue to result, in an unusually high degree of volatility in the financial markets. Instability in the financial markets over the past several years has led governments and regulators around the world to take a number of unprecedented actions
designed to support financial institutions and segments of the financial markets that have experienced extreme volatility, and in some cases a lack of liquidity. A significant decline in the value of an Underlying Funds portfolio likely would
result in a significant decline in the value of an investment in the Underlying Fund.
Anti-Takeover Provisions Risk.
The organizational documents
of certain of the Underlying Funds include provisions that could limit the ability of other entities or persons to acquire control of the Underlying Fund or to change the composition of its board, which could limit the ability of shareholders to
sell their shares at a premium over prevailing market prices by discouraging a third party from seeking to obtain control of the Underlying Fund.
See
Additional Information About the Funds Strategies and RisksRisks of Investing in Underlying Funds.
Market Risk.
The
Underlying Funds 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 Funds.
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 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.
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3
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PCEF PowerShares CEF Income Composite Portfolio
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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.
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.
Commodity Pool Risk.
Certain investments by the Underlying Funds in which the Fund invests
may cause the Fund to be deemed to be a commodity pool, thereby subjecting the Fund to regulation under the Commodity Exchange Act and CFTC rules. The Adviser is registered as a Commodity Pool Operator (CPO), and the Fund will be
operated in accordance with CFTC rules. Registration as a CPO subjects the adviser to additional laws, regulations and enforcement policies, all of which could increase compliance costs and may affect the operations and financial performance of
funds whose adviser is required to register as a CPO. Registration as a commodity pool may have negative effects on the ability of the Fund to engage in its planned investment program.
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. 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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8.42% (1st Quarter 2012)
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(11.01)% (3rd Quarter 2011)
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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
(02/19/10)
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Return Before Taxes
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4.21
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%
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7.38
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Return After Taxes on Distributions
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1.71
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%
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4.98
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Return After Taxes on Distributions and Sale of Fund Shares
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2.59
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4.84
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S-Network Composite Closed-End Fund Index
SM
(reflects no deduction for fees, expenses or taxes)
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4.77
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%
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7.91
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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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Brian Picken
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Vice President and Portfolio Manager of the Adviser
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October 2010
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Theodore Samulowitz
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Vice President and Portfolio Manager of the Adviser
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February 2014
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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 may be purchased and sold only on a national securities exchange through brokers. Shares 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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4
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PCEF PowerShares CEF Income Composite Portfolio
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P-PCEF-SUMPRO-1
BioPower Operations (CE) (USOTC:BOPO)
과거 데이터 주식 차트
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