Cost Efficient 4

PowerShares China A-Share Portfolio provides investors an expense ratio of 0.50% — 23 basis points (bps) less than its Morningstar category average. This cost differential may have significant implications on portfolio performance.

1 Source: Bloomberg L.P. as of Aug. 31, 2013. H-Share Discount to A-Share is represented by the Hang Seng A-H Premium Index.

2 Source: Singapore Exchange (SGX), as of Aug. 31, 2013

3 Source: Singapore Exchange (SGX), as of Jan. 30, 2012

4 Since ordinary brokerage commissions apply for each buy and sell transaction, frequent trading activity may increase the cost of ETFs.

PowerShares China A-Share Portfolio is an actively managed ETF providing exposure to the China A-Share market by investing primarily in SGX FTSE China A50 Index futures.

Fund Features of CHNA:

• Exposure to China A-Shares
• Liquid & efficient alternative to direct investment in China A-Share market
• Cost efficient 1

To directly invest in China A-Shares, a foreign investor must apply for a qualified foreign institutional investor (QFII) license with the Chinese government. Should that investor be granted a QFII license, the investor is assigned a quota which could limit their investment amount in China A-Shares. If the quota is reached, the foreign investor must reapply to the Chinese government for additional capacity. There is no assurance that the Chinese government will grant an initial QFII license or increase quota to an existing license.

About the FTSE China A50 Index

The Index is a real-time index that provides exposure to the largest 50 A-Share companies on a market-cap- weighted basis. The Index has a correlation to the broader Chinese domestic equity market of 0.96 as represented by the CSI 300 Index. 2

About SGX FTSE China A50 Index Futures

In order to facilitate trading and investment in mainland China by offshore participants, the Singapore Exchange (SGX) launched the SGX FTSE China A50 Index Futures contract in 2010. These futures contracts provide offshore investors an effective and cost-efficient means by which to obtain exposure to the China A-Share market and have experienced significant growth since their inception.

Source: Singapore Exchange (SGX), as of Aug. 31, 2013

1 Since ordinary brokerage commissions apply for each buy and sell transaction, frequent trading activity may increase the cost of ETFs.

2 Source: Bloomberg L.P. from April 2005 through August 2013

There are risks involved with investing in ETFs, including possible loss of money. Index-based ETFs are not actively managed. Actively managed ETFs do not necessarily seek to replicate the performance of a specified index. Both index-based and actively managed ETFs are subject to risks similar to stocks, including those related to short selling and margin maintenance. Ordinary brokerage commissions apply. The Fund’s return may not match the return of the Index.

The Fund does not intend to leverage.

The Fund’s use of derivatives may increase the amount of risk associated with the Fund and may magnify changes in the Fund’s value positively and negatively. The use of this fund may not be suitable for all investors.

The Fund is subject to management risk because it is an actively managed portfolio. There can be no guarantee that the investment techniques and risk analyses used in making investment decisions for the Fund will produce the desired results.

The Fund may have significant investment in futures contracts. Because futures contracts project price levels in the future, market circumstances may cause a discrepancy between the price of a stock index future and the movement in the FTSE China A50 Index. In the event of adverse price movements, the Fund would be required to make daily cash payments to maintain its required margin. The Fund also must segregate liquid assets or enter into off-setting positions to cover open positions in futures contracts. By investing in futures contracts, the Fund also is subject to capacity constraints and liquidity risks.

Investing in futures contracts based on the performance of Chinese companies involves several risks: The economy of China differs, sometimes unfavorably, from the U.S. economy in such respects as structure, general development, government involvement, wealth distribution, rate of inflation, growth rate, allocation of resources and capital reinvestment, among others; the central government has historically exercised substantial control over virtually every sector of the Chinese economy through administrative regulation and/or state ownership; and actions of the Chinese central and local government authorities continue to have a substantial effect on economic conditions in China. The regulatory oversight of Chinese companies differs from that in the United States and may not otherwise deter or uncover fraudulent actions by the issuers.

The A-Shares market in China is an emerging market with a limited operating history, and it is not as developed as capital markets in the United States. The various restrictions on the free flow of capital into the Chinese A-Shares market may adversely impact the liquidity of the market and increase the volatility of the trading prices of A-Shares, which in turn could impact the performance of the FTSE China A50 Index and of the Fund. The investment regulations in China under which the Fund would invest are relatively new and the application and interpretation of those investment regulations are relatively untested; therefore, if and when the Fund is permitted to invest directly in A-Shares, there is no certainty as to how they will be applied.

The Chinese government in the past has taken actions that benefited holders of A-Shares. If A-Shares continue to become more available to foreign investors, the Chinese government may be less likely to take action that would benefit holders of A-Shares. Moreover, the laws, regulations, government policies and political and economic climate in China may change with little or no advance notice, and there can be no assurance that the Chinese government will continue to take similar actions in the future. Any such change could adversely affect the market conditions for A-Shares.

If the Fund were to invest directly in A-Shares, such investments would be subject to pre-approved government limitations on the quantity of A-Shares in which the Fund may invest. If the Adviser obtains a QFII license, it would be required to remit the entire investment principal for its A-Share quota into a local sub-custodian account after the Adviser obtains a foreign exchange registration certificate from the Chinese government agency responsible for foreign exchange administration. Once remitted, investment capital only may be repatriated at certain designated times. Repatriation of investment capital and profits currently is subject to a lock-up period and other restrictions. This means that the Fund may be limited in its ability to transfer its investment principal for the Fund’s A-Share quota outside of China. Future changes to the repatriation rules could further limit the Fund’s ability to repatriate capital and could have a negative effect on the Fund’s operations.

Investments in the foreign securities involve additional risks, such as less reliable financial information, higher transactional costs, taxation by foreign governments, decreased market liquidity and greater market volatility and political instability.

The dollar value of the Fund’s foreign investments will be affected by changes in the exchange rates between the dollar and the currencies in which those investments are traded.

If the Fund invests in another ETF to obtain exposure to the China A-Shares market, it will be subject to the risks associated with the underlying ETF, which include, but are not limited to, the risk that the underlying ETF’s investment strategy may not produce the intended results. The Fund also may pay indirectly a proportional share of the fees and expenses of the underlying ETFs in which it invests.

The Fund’s investments in U.S. Government securities will change in value in response to interest rate changes and other factors, such as the perception of an issuer’s creditworthiness. Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa. In addition, the Fund’s investments in fixed-income securities with longer maturities will fluctuate more in response to interest rate changes.

The Fund currently intends to effect creations and redemptions principally for cash, rather than principally in-kind, because of the nature of the Fund’s investments. As such, investments in the Fund may be less tax efficient than investments in ETFs that create and redeem in-kind.

The Fund may invest in stock index futures contracts that provide exposure to the China A-Shares market, including futures contracts listed on the Singapore Exchange on the FTSE China A50 Index. To qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (RIC), the Fund must meet a qualifying income test each taxable year. Failure to comply with the qualifying income test in any taxable year would have significant negative tax consequences to Fund shareholders. If the Internal Revenue Service were to determine that income the Fund derives from these futures contracts did not constitute qualifying income, and if that position were upheld, the Fund would likely be required to reduce its exposure to such investments in order to maintain its qualification as a RIC, which may result in difficulty in implementing its investment strategies.

The Fund is considered non-diversified and may be subject to greater risks than a diversified fund, including increased volatility and that the performance of a relatively small number of issuers may have a greater impact on the Fund’s performance.

The Fund’s investments in stock index futures contracts will cause it to be deemed to be a commodity pool, thereby subjecting the Fund to regulation under the Commodity Exchange Act and Commodity Futures Trading Commission (CFTC) rules. The Adviser is registered as a Commodity Pool Operator (CPO), and the Fund will be operated in accordance with CFTC rules. Registration as a CPO subjects the registrant to additional laws, regulations and enforcement policies, all of which could increase compliance costs and may affect the operations and financial performance of funds whose adviser is required to register as a CPO. Registration as a commodity pool may have negative effects on the ability of the Fund to engage in its planned investment program.

All rights in the FTSE China A50 Index (the Index) invest in FTSE International Limited (FTSE). FTSE is a trade mark of the London Stock Exchange Group companies and is used by FTSE under license. The PowerShares China A-Share Portfolio (the Fund) has been developed solely by Invesco PowerShares. The Index is calculated by FTSE or its agent. FTSE and its licensors are not connected to and do not sponsor, advise, recommend, endorse or promote the Fund and do not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the Index or (b) investment in or operation of the Fund. FTSE makes no claim, prediction, warranty or representation either as to the results to be obtained from the Fund or the suitability of the Index for the purpose to which it is being put by Invesco PowerShares.