PowerShares FTSE RAFI Emerging Markets Portfolio (the Fund) is based on the FTSE RAFI Emerging Index (the Index). The Index is designed to track the performance of the largest emerging market equities, selected based on four fundamental measures of firm size: book value, cash flow, sales and dividends. The equities with the highest fundamental strength are weighted according to their fundamental scores. The Fundamentals Weighted portfolio is rebalanced and reconstituted annually. The Fund’s investment advisor is Invesco PowerShares Capital Management LLC.