The PowerShares Insured California Municipal Bond Portfolio (Fund) is based on The BofA Merrill Lynch California Insured Long-Term Core Plus Municipal Securities Index (Index). The Fund will normally invest at least 80% of its total assets in insured municipal securities that are exempt from federal income tax and California state income tax that comprise the Index, and generally expects to invest at least 90% of its total assets. The Index is designed to track the performance of US-dollar-denominated, investment-grade, insured, tax-exempt debt publicly issued by California or Puerto Rico or their political subdivisions. The Index is adjusted monthly and its constituents are capitalization-weighted based on their current amount outstanding. The Fund and the Index are rebalanced and reconstituted monthly.