Exchange-Traded Funds (ETFs)

PFEM - PowerShares Fundamental Emerging Markets Local Debt Portfolio

Fundamentals Weighted - Fundamentals Weighted Fixed Income

Product Details

The PowerShares Fundamental Emerging Markets Local Debt Portfolio (Fund) is based on the Citi RAFI Bonds Sovereign Emerging Markets Extended Local Currency Index (Index). The Fund generally will invest at least 80% of its total assets in the bonds issued by the national governments of emerging market countries that comprise the Index. The Index measures the performance of local currency bonds issued by the national governments from a set of emerging market countries. The Fund and the Index are reconstituted annually in October and rebalanced quarterly in January, April, July and October.

as of 03/31/2014 03/31/2014


as of 03/31/2014 03/31/2014
  YTD 1 Year 3 Year 5 Year 10 Year Fund Inception
Index History (%)
Citi RAFI Bonds Sovereign Emerging Markets Extended Local Currency Index 1.68 -6.21 N/A N/A N/A -9.40
BofA ML Local Debt Markets Plus Index 1.60 -5.46 1.92 8.20 N/A -8.97
Fund History (%)
Fund NAV 0.79 N/A N/A N/A N/A -10.64
After Tax Held 0.29 N/A N/A N/A N/A -11.38
After Tax Sold 0.44 N/A N/A N/A N/A -6.03
Fund Market Price 0.88 N/A N/A N/A N/A -11.00

Monthly Standardized Report

This is a new Fund and has no full-year Fund performance to report as of most recent quarter end.

Market returns are based on the midpoint of the bid/ask spread at 4 p.m. ET and do not represent the returns an investor would receive if shares were traded at other times. Performance data quoted represents past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than performance data quoted. After-tax returns reflect the highest federal income tax rate but exclude state and local taxes. After Tax Held and After Tax Sold are based on NAV.

An investor cannot invest directly in an index. The results assume that no cash was added to or assets withdrawn from the Index. Index returns do not represent Fund returns. The Index does not charge management fees or brokerage expenses, nor does the Index lend securities, and no revenues from securities lending were added to the performance shown.

as of 04/23/2014

Top Country Allocation

Quality Allocations as of 04/23/2014

S&P Moody's
AA : 20% Aa : 11%
A : 35% A : 24%
BBB : 28% Baa : 48%
BB : 12% Ba : 4%
Not Rated : 3% Not Rated : 12%

as of 04/23/2014 Maturity

Years % of Fund
0 - 1 years 0.00
1 - 5 years 39.78
5 - 10 years 39.81
10 - 15 years 8.79
15 - 20 years 9.51
20 - 25 years 2.11
25 years and over 0.00

as of 04/23/2014Top Fixed-Income Holdings | View All

Holding Name Coupon Rate Maturity Date S&P / Moody's Rating† Weight
Korea Treasury Bond 4.25% 06/10/2021 AA-/Aa3 7.22%
Russian Federal Bond - OFZ 7.40% 04/19/2017 BBB+/Baa1 5.83%
Brazil Notas do Tesouro Nacional Serie F 10.00% 01/01/2017 BBB+/Baa2 5.04%
Mexican Bonos 8.50% 05/31/2029 A/A3 4.66%
Russian Federal Bond - OFZ 7.60% 07/20/2022 BBB+/Baa1 4.33%
Brazil Notas do Tesouro Nacional Serie F 10.00% 01/01/2023 BBB+/Baa2 4.17%
Hungary Government Bond 6.75% 11/24/2017 BB/Ba1 4.04%
Indonesia Treasury Bond 7.00% 05/15/2022 BB+/Baa3 3.87%
China Government Bond 2.56% 06/29/2017 AA-/Aa3 3.78%
Mexican Bonos 5.00% 06/15/2017 A/A3 3.70%

Holdings are subject to change and are not buy/sell recommendations.

Distributions | View All | Distribution Information

Ex-Date Record Date Pay Date $/
Ordinary Income Short Term Gains Long Term Gains Return of Capital
04/15/2014 04/17/2014 04/30/2014 0.07965 0.07965 - - -
03/14/2014 03/18/2014 03/31/2014 0.07915 0.07915 - - -
02/14/2014 02/19/2014 02/28/2014 0.08250 0.08250 - - -
01/15/2014 01/17/2014 01/31/2014 0.08250 0.08250 - - -
12/13/2013 12/17/2013 12/31/2013 0.08260 0.08260 - - -
11/15/2013 11/19/2013 11/29/2013 0.08456 0.08456 - - -
10/15/2013 10/17/2013 10/31/2013 0.09200 0.09200 - - -
09/13/2013 09/17/2013 09/30/2013 0.09200 0.09200 - - -
08/15/2013 08/19/2013 08/30/2013 0.09376 0.09376 - - -
07/15/2013 07/17/2013 07/31/2013 0.09100 0.09100 - - -
06/14/2013 06/18/2013 06/28/2013 0.09130 0.09130 - - -

Frequency Distribution of Discounts & Premiums

    Bid/Ask MidPoint Above NAV Bid/Ask Midpoint Below NAV
Days 0.50-
>2.00% 0.50-
03/31/2014 61 0 1 0 11 0 0
12/31/2013 64 2 0 0 8 5 0
09/30/2013 64 2 6 1 23 16 1
06/30/2013 36 11 3 0 5 2 1
Year Ended 2013 164 15 9 1 36 23 2

Fund Inception: 05/09/2013

Shareholders may pay more than net asset value when they buy Fund shares and receive less than net asset value when they sell those shares, because shares are bought and sold at current market prices. Performance data quoted represents past performance, which is not a guarantee of future results.

 Risk & Other Information

† Credit ratings are assigned by Nationally Recognized Statistical Rating Organizations based on assessment of the credit worthiness of the underlying bond issuers. The ratings range from AAA (highest) to D (lowest) and are subject to change. Not rated indicates the debtor was not rated, and should not be interpreted as indicating low quality. Futures and other derivatives are not eligible for assigned credit ratings by any NRSRO and are excluded from quality allocations. For more information on rating methodologies, please visit the following NRSRO websites: and select "Understanding Ratings" under Rating Resources and and select "Rating Methodologies" under Research and Ratings.

There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. The Fund’s return may not match the return of the Underlying Index.

The Fund's underlying securities may be subject to call risk, which may result in the Fund having to reinvest the proceeds at lower interest rates, resulting in a decline in the Fund's income.

The Fund is considered non-diversified and may be subject to greater risks than a diversified fund.

The Fund's use of a representative sampling approach will result in its holding a smaller number of bonds than are in the underlying Index, and may be subject to greater volatility.

Liquidity risk exists when a particular investment is difficult to purchase or sell. If the Fund invests in illiquid securities or current portfolio securities become illiquid, it may reduce the returns of the Fund because the Fund may be unable to sell the illiquid securities at an advantageous time or price.

The fund may engage in frequent trading of its portfolio securities in connection with the rebalancing or adjustment of the Underlying Index.

The Fund will invest in foreign bonds and, because foreign exchanges may be open on days when the Fund does not price its shares, the value of the non-US securities in the Fund's portfolio may change on days when you will not be able to purchase or sell your shares.

The Fund currently intends to effect creations and redemptions principally for cash, rather than principally in-kind because of the nature of the Fund's investments. As such, investments in the Fund may be less tax efficient than investments in ETFs that create and redeem in-kind.

Sovereign debt securities are subject to the additional risk that - under some political, diplomatic, social or economic circumstances - some developing countries that issue lower quality debt securities may be unable or unwilling to make principal or interest payments as they come due. The fund may have limited legal recourse against the issuer and/or guarantor of sovereign debt when default occurs. As a holder of government debt, the Fund may be requested to participate in the rescheduling of such debt and to extend further loans to government debtors.

Investments in fixed-income securities, such as notes and bonds, carry interest rate and credit risk. Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa. Credit risk is the risk of loss on an investment due to the deterioration of an issuer's financial health.

Government obligors in emerging market countries are among the world's largest debtors to commercial banks, other governments, international financial organizations and other financial institutions. The Fund invests in the bonds of governments located in emerging market countries and much of the income received by the Fund will be in foreign currencies.

Much of the income received by the Fund will be in foreign currencies. Because the Fund's net asset value (NAV) is determined in US dollars, the Fund's NAV could decline if the currency of the non-US markets in which the Fund invests depreciate against the US dollar.

Non-investment grade securities may be subject to greater price volatility due to specific corporate developments, interest-rate sensitivity, negative perceptions of the non-investment grade securities market, adverse economic and competitive industry conditions and decreased market liquidity.

The BofA Merrill Lynch Local Debt Markets Plus Index is designed to track the performance of sovereign debt publicly issued and denominated in the issuer's own domestic market and currency other than the more established top-tier sovereign markets.

Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world. The Yield Book is a registered service mark of The Yield Book Inc. and is registered in the U.S. and other countries. The trade names Fundamental Index®, RAFI®, the RAFI logo, and the Research Affiliates corporate name and logo are the exclusive intellectual property of Research Affiliates, LLC and are registered trademarks in the U.S. and other countries. Any use of Research Affiliates, LLC’s trade names and logos without the prior written permission of Research Affiliates, LLC is expressly prohibited and Research Affiliates, LLC reserves the right to take any and all necessary action to preserve all of its rights, title and interest in and to these marks. Fundamental Index®, the non-capitalization method for creating and weighting of an index of securities, is patented and patent-pending proprietary intellectual property of Research Affiliates, LLC.

Beta is a measure of risk representing how a security is expected to respond to general market movements. Smart Beta represents an alternative and selection index based methodology that seeks to outperform a benchmark or reduce portfolio risk, or both. Smart beta funds may underperform cap-weighted benchmarks and increase portfolio risk.

as of 04/24/2014
12:00 AM EST


  • Last Trade $21.61
  • Current IIV $21.43
  • Change $0.00
  • % Change 0.00%
as of 04/24/2014
  • NAV at market close $21.50
as of 04/24/2014


  • SEC 30 Day Yield 5.28%
  • Distribution Yield 4.45%
  • 30-Day SEC Unsubsidized Yield
    as of 04/23/2014
as of 04/23/2014


  • Closing Price $21.61
  • Bid/Ask Midpoint $21.54
  • Bid/Ask Prem/Disc $0.04
  • Bid/Ask Prem/Disc 0.19%
as of 04/17/2014

Fund Characteristics

  • Effective Duration 5.19 yrs
  • Yield to Maturity 6.03%
  • Yield to Worst 6.03%
  • Years to Maturity 7.38
  • Weighted Avg Coupon 6.65%
  • Weighted Avg Price
    as of 04/23/2014

Fund Details

  • Fund Ticker PFEM
  • CUSIP # 73936Q736
  • ISIN US73936Q7363
  • Intraday NAV PFEMIV
  • Index Ticker CCRFEMEU
  • Index Provider Citigroup Index LLC
  • Management Fee 0.50%
  • Total Expense Ratio 0.50%
  • Marginable Yes
  • Short Selling Yes
  • Options No
  • Exchange NYSE Arca.
  • Inception Date 05/09/2013
  • # of Holdings 33
    as of 04/23/2014
as of 04/24/2014

Quick Facts

  • Previous Close $21.61
  • Open -
  • Today's High -
  • Today's Low -
  • Today's Volume -
  • 52 Week High $25.18
  • 52 Week Low $19.91
  • Shares Outstanding .20MM
  • Market Value $4.3MM