The PowerShares Global Steel Portfolio (Ticker: PSTL) seeks investment results that correspond generally to the performance, before fees and expenses, of the NASDAQ OMX Global Steel Index. The index is designed to measure the overall performance of globally traded securities of the largest
and most liquid companies involved in the manufacturing and storage of iron and steel products. Underlying index countries include: Japan, Russia, United States, Brazil and others. The index uses a modified market cap-weighted methodology and is reconstituted annually and rebalanced quarterly. If the weight of the highest ranking security is greater than 8%, it will be capped at 8% and the excess weight will be proportionally distributed across the remaining securities. Then, if the weight of the second highest ranking security is greater than 8%, it too will be capped at 8% and the excess weight will be proportionally distributed across the remaining securities. This process will be repeated until no more than five securities are capped at 8%. If after redistribution, any of the five highest ranked securities are weighted below 8%, they will not be capped. Next, the weight of all other securities greater than 4% will be capped at 4% with the excess weight proportionally distributed across the remaining securities to generate the final rebalanced index weights.