POWERSHARES FTSE RAFI ASIA PACIFIC EX-JAPAN PORTFOLIO (PAF) Exchange: NYSE ARCA

DELISTED - The Fund will invest at least 90% of its total assets in equity securities of companies that are classified as “Asia Pacific” within the country classification definition of FTSE International Limited (“FTSE”), excluding Japanese companies, and that comprise the Underlying Index, as well as American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”) that are based on the securities in the Underlying Index. The Fund anticipates that the majority of its investments will be in the securities that comprise the Underlying Index, rather than in ADRs and GDRs. The Underlying Index is designed to track the performance of the Asia Pacific companies with the largest cumulative scores (“Fundamental Value”), selected from the constituents of the FTSE Developed All Cap Index, as determined by FTSE in conjunction with Research Affiliates LLC (“RA” together the “Index Provider”). The Underlying Index selects and weights the companies based on their Fundamental Values, which are derived from the following four fundamental measures of firm size: book value, cash flow, sales and dividends. Historically, the following countries, excluding Japan, have been classified as developed Asia Pacific countries by FTSE: Australia, Hong Kong, New Zealand, Singapore and South Korea. 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.