PowerShares performance...............
Press Release Source: PowerShares Capital Management
PowerShares Inaugural ETF Portfolios Outperform Over Initial Three Year Period, Earning Morningstar Ratings
Monday June 12, 6:00 am ET
-- PowerShares Dynamic Market Portfolio (AMEX: PWC)
-- PowerShares Dynamic OTC Portfolio (AMEX: PWO)
CHICAGO, IL--(MARKET WIRE)--Jun 12, 2006 -- PowerShares Capital Management LLC, continues to "Lead the Intelligent ETF Revolution," announcing today that the first two PowerShares ETFs launched on May 1, 2003, have both significantly outperformed their respective benchmarks.
During the three-year period ended April 30, 2006:
PowerShares Dynamic Market Portfolio (AMEX:PWC - News) had an annualized return of 21.96% and cumulative return of 80.57%, outperforming the S&P 500 with an annualized return of 14.69% and cumulative return of 50.87%. PWC exhibited similar risk characteristics over the period with a beta of 1.05 when compared to the S&P. For the 3-year period ending May 31, 2006, the PowerShares Dynamic Market Portfolio earned a Morningstar Rating(TM) of 5 stars when compared to the 1473 U.S.-domiciled Large Cap Blend mutual funds. Past performance does not guarantee future results and the fund is subject to market risk, including the possible loss of principal. Please see the standardized performance table below for complete performance information.*
PowerShares Dynamic OTC Portfolio (AMEX:PWO - News) had an annualized return of 23.39% and cumulative return of 87.84%, outperforming the NASDAQ Composite with an annualized return of 16.40% and cumulative return of 57.72%. PWO exhibited similar risk characteristics over the period with a beta of 1.03 when compared to the NASDAQ Composite. For the 3-year period ending May 31, 2006, the PowerShares Dynamic OTC Portfolio earned a Morningstar Rating(TM) of 3 stars when compared to the 818 U.S.-domiciled Mid-Cap Growth mutual funds. Past performance does not guarantee future results and the fund is subject to market risk, including the possible loss of principal. Please see the standardized performance table below for complete performance information.*
The PowerShares Dynamic Market Portfolio and the PowerShares Dynamic OTC Portfolio have accomplished this three-year performance record with no capital gains distributions.
"We are very pleased with the performance of the two initial PowerShares," said Bruce Bond, CEO of PowerShares Capital Management LLC. "We believe that their performance further substantiates PowerShares' leadership role in the ETF industry and highlights the unique value proposition on which PowerShares is built."
As the first two PowerShares XTFs listed, PWC and PWO are the foundation on which the PowerShares Intelligent ETF business is built. The PowerShares family of 37 ETFs continues to grow and currently represents over $6 billion in assets under management. Click the link below to read the new Alta Vista White Paper which takes an in-depth look at the structure and performance of the PowerShares Dynamic Market Portfolio. PWC_whitepaper.pdf
Performance Summary
Initial 3-Year Period
5/01/2003 - 4/30/2006
PowerShares Dynamic
Market Portfolio 1 2 3 Cumulative
Year Year Year Sharpe Beta
Inception
---------------- ------ ------ ------ ---------- ------ ----
PWC - NAV 23.32% 17.61% 21.96% 80.57% 1.56 1.05
PWC - Share Price 23.40% 17.57% 22.45% 80.72% 1.48 1.00
S&P 500 Index 15.40% 10.78% 14.69% 50.87% 1.12 1.00
Russell 3000 18.08% 12.39% 16.49% 58.09% 1.25 1.00
PowerShares Dynamic
OTC Portfolio 1 2 3 Cumulative
Year Year Year Sharpe Beta
Inception
---------------- ------ ------ ------ ---------- ------ ----
PW0 - NAV 26.63% 21.09% 23.39% 87.84% 1.22 1.03
PW0 - Share Price 26.58% 21.01% 24.09% 87.87% 1.21 .92
Nasdaq Composite 20.85% 9.98% 16.40% 57.72% 0.89 1.00
Nasdaq 100 Index 19.70% 10.16% 15.17% 52.78% 0.74 1.00
Standardized Performance
Average Annual
5/01/2003 - 3/31/2006
1 Year 2 Year Inception
(As of (As of (As of
PowerShares Dynamic Market Portfolio 3/31/06) 3/31/06) 3/31/06)
------------------------------------ -------- -------- --------
PWC - NAV 19.03% 15.63% 22.47%
PWC - Share Price 19.01% 15.63% 22.44%
S&P 500 Index 11.72% 9.18% 14.62%
Russell 3000 14.28% 10.62% 16.57%
1 Year 2 Year Inception
(As of (As of (As of
PowerShares Dynamic OTC Portfolio 3/31/06) 3/31/06) 3/31/06)
------------------------------------ -------- -------- --------
PWO - NAV 18.91% 14.38% 23.31%
PWO - Share Price 19.14% 14.29% 23.26%
Nasdaq Composite 17.03% 8.32% 17.21%
Nasdaq 100 Index 14.92% 8.83% 15.71%
Source: PowerShares Capital Management LLC
Performance Summary figures as of 4/30/2006. Standardized performance figures as of 3/31/2006. Fund Inceptions 5/01/2003. Performance data quoted represents past performance. Past performance is not a guarantee of future results; current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares may be worth more or less than their original cost when sold or redeemed. See powershares.com to find the most recent month-end performance numbers and information regarding premiums and discounts. Price returns are based on closing market prices.
A Sharpe Ratio is the risk-adjusted return and is the return less the risk-free rate divided by the standard deviation of the return; Beta is a measure of relative risk and is the slope of the regression line; and Volatility is the annualized standard deviation of monthly index returns. Sharpe ratio, beta and volatility data is calculated daily. The S&P 500 Index and Russell 3000 Index are accepted benchmarks for the performance of the broad US stock market; the Nasdaq 100 Index and Nasdaq Composite are accepted benchmarks for the performance of the NASDAQ stock market. You cannot invest directly in an index.
About PowerShares Dynamic Exchange Traded Funds
The PowerShares Dynamic Market Portfolio and the PowerShares Dynamic OTC Portfolio are the first Exchange Trade Funds (ETFs) based on Enhanced or Intelligent Indexes.
The PowerShares Dynamic Exchange Traded Funds track enhanced indexes which utilize advanced quantitative methodologies to discriminate between securities and select the stocks identified as having the greatest capital appreciation potential. The indexes are rebalanced quarterly to include the highest ranked securities. In contrast, traditional benchmark indexes select stocks primarily for representation, regardless of their investment merit.
PowerShares Capital Management LLC
PowerShares Capital Management LLC provides institutional caliber asset management and market exposure through the replication of enhanced indexes. PowerShares delivers this sophisticated asset management in one of the more benefit rich investment vehicles available today, the exchange traded fund. The firm is committed to theoretically sound portfolio construction and empirically verifiable investment management approaches. PowerShares' asset management philosophy and investment discipline are deeply rooted in the application of intuitive factor analysis and model implementation to enhance investment decisions.
Morningstar Rating
The Overall Morningstar rating for an open-end mutual fund is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating Metrics. Morningstar proprietary ratings reflect historical risk-adjusted performance as of 05/31/2006.
*The Morningstar Rating(TM) is calculated for funds with at least a three-year history. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in monthly performance (including the effects on sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. Morningstar then compares each fund's risk-adjusted return to the open-end rating breakpoints for that category. The overall rating for a fund is based on a weighted average of the time-period ratings. Rankings and ratings change monthly.
Morningstar Category identifies funds based on their actual investment styles as measured by their underlying portfolio holdings over the past three years. If the fund is less than three years old, the category is based on the life of the fund. As of May 31, 2006, the PowerShares Dynamic OTC Portfolio earned an Overall Morningstar Rating(TM) of 3 stars, when compared to the 818 U.S.-domiciled Mid-Cap Growth mutual funds. As of May 31, 2006, the PowerShares Dynamic Market Portfolio earned an Overall Morningstar Rating(TM) of 5 stars, when compared to the 1473 U.S.-domiciled Large-Cap Blend mutual funds.
© [2006] Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
Risks of Owning PowerShares
PowerShares funds are made up of publicly traded securities that can and will move higher and lower with market movements. You should anticipate that the value of the shares of each fund will advance or decline more or less in correlation with the advance or decline in value of the applicable index. The funds are not actively managed and shares of the funds may trade at or below the funds' NAV. Exchange traded funds are subject to risks similar to those of stocks, including risks associated with short-selling and margin account maintenance.
An investor should consider investment objectives, risks, charges and expenses carefully before investing. A prospectus which contains more complete information about PowerShares, including, risks, fees and expenses can be obtained by visiting the PowerShares web site at www.PowerShares.com or by calling 800-983-0903. The prospectus should be read carefully before investing.
ALPS Distributors, Inc. is the distributor of the PowerShares Exchange-Traded Fund Trust.
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Source: PowerShares Capital Management
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