PowerShares Dynamic Mid Cap Portfolio (the Fund) seeks investment results that correspond generally to the price and yield of an equity index called the Dynamic Mid Cap Intellidex Index (the Intellidex). The Intellidex consists of stocks of 150 United States mid-capitalization companies. Stocks are selected principally on the basis of their capital appreciation potential as identified by the AMEX (the Intellidex Provider) pursuant to an Intellidex methodology. The Intellidex methodology thoroughly evaluates the investment merit of the 2,000 largest United States companies by analyzing numerous financial characteristics from four financial perspectives: fundamental, valuation, timeliness and risk. The Fund will normally invest at least 80% of its total assets in common stocks of mid-capitalization companies. The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Intellidex. Its investment advisor is Invesco PowerShares Capital Management LLC.