PowerShares Financial Preferred Portfolio (the Fund) seeks investment results that correspond generally to the price and yield of the Wachovia Hybrid & Preferred Securities Financial Index (the Index). The Index tracks the performance of United States preferred stocks issued in the United States market by financial institutions, and includes securities selected by Wachovia pursuant to a selection methodology. The market-capitalization weighted Index is rebalanced monthly. The Fund will normally invest at least 90% of its total assets in preferred securities that comprise the Index. The Fund’s investment advisor is Invesco PowerShares Capital Management LLC.