PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio (the Fund) is based on the FTSE RAFI Asia Pacific ex-Japan Index (the Index). The Index is designed to track the performance of the largest equities of companies domiciled in the Asia Pacific region (excluding Japan), selected based on four fundamental measures of firm size: book value, income, sales and dividends. The 1,000 equities with the highest fundamental strength are weighted according to their fundamental scores. The fundamentally weighted portfolio is rebalanced and reconstituted annually. The Fund’s investment advisor is Invesco PowerShares Capital Management LLC.