POWERSHARES FUNDAMENTAL EMERGING MARKETS LOCAL DEBT PORTFOLIO (PFEM) Exchange: NYSE ARCA

DELISTED - The Fund generally will invest at least 80% of its total assets in bonds issued by the national governments of emerging market countries that comprise the Underlying Index. The Underlying Index measures the performance of local currency bonds issued by the national governments from a set of emerging market countries. The Underlying Index uses specific government markets tracked by Citigroup Index LLC ("Citi Index") and a proprietary weighting methodology from Research Affiliates, LLC ("RA"). Historically, the Underlying Index has included local currency bonds issued by the national governments of 18 countries: Brazil, Chile, China (Offshore), Colombia, the Czech Republic, Hungary, Indonesia, Israel, Malaysia, Mexico, Peru, the Philippines, Poland, Russia, South Africa, South Korea, Thailand and Turkey; however, this universe of countries may change in accordance with the Underlying Index's methodology. Strictly in accordance with the Underlying Index's guidelines and mandated procedures, securities must have a minimum maturity of one year to be included in the Underlying Index, and such securities' national governments must have a minimum domestic sovereign debt rating of "C" by S&P and "Ca" by Moody's and must meet a minimum outstanding amount requirement.The Fund does not purchase all of the securities in the Underlying Index; instead the Fund utilizes a "sampling" methodology to seek to achieve its investment objective.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 group of industries only to the extent that the Underlying Index reflects a concentration in that industry or group of industries. The Fund will not otherwise concentrate its investments in securities of issuers in any one industry or sector.