Invesco Emerging Markets Sovereign Debt (PCY)

FINANCE: GENERAL FINANCE
SIC: INVESTMENT ADVICE

The PowerShares Emerging Markets Sovereign Debt Portfolio is an exchange-traded index fund or Index ETF which is a separate portfolio of the PowerShares Exchange-Traded Fund Trust II, a registered investment company. The Fund seeks investment results that correspond generally to the price and yield (before fees and expenses) of the DB Emerging Market USD Liquid Balanced Index. INDEX DESCRIPTION: The DB Emerging Market USD Liquid Balanced Index, is a benchmark index that measures potential returns of a theoretical portfolio of liquid emerging markets U.S. dollar-denominated government bonds. Deutsche Bank Securities Inc. ('DB' or the 'Index Provider') selects zero to three securities from each of the 17 emerging market countries set forth below that a) is denominated in U.S. dollars, b) is a sovereign bond, c) has more than three years to maturity and d) has an outstanding float of at least $500 million. As of August 31, 2007, the DB Emerging Market USD Liquid Balanced Index included approximately 25 bonds issued by Mexico, Panama, Peru, Uruguay, Venezuela, Bulgaria, Russia, South Africa, Turkey, Ukraine, Brazil, Colombia, Indonesia, Korea, Philippines, Qatar, Argentina, El Salvador and Vietnam. The countries in the DB Emerging Market USD Liquid Balanced Index are re-selected on an annual basis and the membership list is rebalanced on a quarterly basis.