The PowerShares FTSE RAFI Emerging Markets Portfolio Fund (Ticker: PXH) seeks investment results that correspond generally to the performance, before fees and expenses, of the FTSE RAFI Emerging Index. The index is designed to track the performance of the largest Emerging Market equities, selected from the constituents of the FTSE Emerging Large/Mid Cap Index, as determined by FTSE, selected based on the following four fundamental measures of firm size: book value, cash flow, sales and dividends. The equities with the highest fundamental strength are weighted according to their fundamental scores. The index consists of approximately 150 securities of companies with market capitalizations of between approximately $5 million and $370.5 billion that were domiciled in Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hong Kong, Hungary, India, Indonesia, Israel, Malaysia, Mexico, Morocco, Pakistan, Peru, Philippines, Poland, Russia, South Africa, South Korea, Taiwan, Thailand and Turkey. The fundamentals weighted portfolio is rebalanced and reconstituted annually.