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The PowerShares Fundamental Investment Grade Corporate Bond Portfolio (Fund) is based on the RAFI® Bonds US Investment Grade 1-10 Index (Index). The Fund will normally invest at least 80% of its total assets in the securities that comprise the Index. The Index is comprised of US dollar-denominated bonds that are registered with the SEC or that are Rule 144A securities that provide for registration rights and whose issuers are public companies listed on a major US stock exchange. Only investible non-convertible, non-exchangeable, non-zero, fixed coupon high-yield corporate bonds qualify for inclusion in the Index. Based on the Fundamental Index® methodology developed by Research Affiliates, LLC, the Index is compiled and calculated by Ryan ALM, Inc. The Fund and the Index are rebalanced monthly and reconstituted annually in March.