BKLN (presentation)

STRICTLY CONFIDENTIAL

Power Shares Senior Loan ETFHold

Ticker: BKLNPurchase Date: 03/11/15Purchase Price: $24.13Current Price: $22.10 Price Return Since Purchase: (8.41%)

Atkins Investment Group | [Sector Name]

Fund Overview Fund Summary

Credit Rating Credit Breakdown by Country Top Industry Groupings

| 2

BKLN is an actively managed ETF that invests at least 80% of its total assets in the securities that comprise the S&P/LSTA U.S.

Securities within the fund have a floating rate off LIBOR, which in theory would offer higher dividend payments once it passed its 1% floor

BKLN loans are secured by the assets of the companies within the fund, which are senior debt in the structure.

Number of Holdings:113

Total Expense Ratio:0.66%

Modified Duration:0.25%

3-Month LIBOR:0.62%

YTM:6.10%

Structure Breakdown

MediaRetailLodgingTelecommunicationsSoftwareElectricHealthcare-ServicesPharmaceuticalsEntertainmentCommercial Services

8.91%7.26%5.67%5.37%5.27%4.84%4.79%4.76%4.57%3.51%

Fund Details

Loans

Cash and Cash Equivalents

High Yield Securi-ties

86.32%

7.19%

6.48%

U.S

Canada

Luxembourg

Cayman Islands

Australia

Netherlands

U.K.

74.37%

5.47%

4.40%

2.07%

1.42%

0.94%

0.74%


Trading Update

Price Performance Annualized Price Returns Trend

Dividend Payment Since Inception

| 3

2012 2013 2014 2015-4.00%

-2.00%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

1-Apr-

11

1-Aug

-11

1-Dec-

11

1-Apr-

12

1-Aug

-12

1-Dec-

12

1-Apr-

13

1-Aug

-13

1-Dec-

13

1-Apr-

14

1-Aug

-14

1-Dec-

14

1-Apr-

15

1-Aug

-15

1-Dec-

15 $-

$0.02

$0.04

$0.06

$0.08

$0.10

$0.12

$0.14

Purchased

3/3/20

11

9/3/20

11

3/3/20

12

9/3/20

12

3/3/20

13

9/3/20

13

3/3/20

14

9/3/20

14

3/3/20

15

9/3/20

1520

21

22

23

24

25

26

Purchased

Leverage Loan vs. High Yield

3/4/20

11

10/4/

2011

5/4/20

12

12/4/

2012

7/4/20

13

2/4/20

14

9/4/20

14

4/4/20

15

11/4/

2015

-25%

-20%

-15%

-10%

-5%

0%

5%

Leverage Loan High Yield

94% Correlation


Leverage Loan Market

Going forward

| 4

Market review 2015

3/1/2006 12/1/2006 9/1/2007 6/1/2008 3/1/2009 12/1/2009 9/1/2010 6/1/2011 3/1/2012 12/1/2012 9/1/2013 6/1/2014 3/1/20150

100000

200000

300000

400000

500000

600000

700000

800000

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

4000000

C&I Loans Non-Performing Loans Total Corporate Loans Outstanding

2015 was the second largest issuance of CLO in the US totaling $97.89 billion

2014: largest at $124.1 billion

Default rates historic low of 2%

Average bid for LSTA US BB loan index peaked from a high of 98.86 in April, currently trading at 93.78

Large outflows from hedge funds

Banks projecting $60-$80 Billion in issuance in 2016

Default rate projected to hit 3%

Non-Performing Corporate Loans gradually decreasing

Insurance companies increasing inflows for below investment grade

US and Japanese banks becoming more active in AAA investing


Relative Indicators

Business Indicators

Loan Risk Volume vs. Demand for Loans

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3/1/20

02

6/1/20

03

9/1/20

04

12/1/

2005

3/1/20

07

6/1/20

08

9/1/20

09

12/1/

2010

3/1/20

12

6/1/20

13

9/1/20

14-40%

-30%

-20%

-10%

0%

10%

20%

0%20%40%60%80%100%120%140%160%

ISM Manufacturing Leverage Loan Index US Corp Profitablilty

13% Correlation US Corp Profitability

74% Correlation ISM

4/1/2006 12/1/2006 8/1/2007 4/1/2008 12/1/2008 8/1/2009 4/1/2010 12/1/2010 8/1/2011 4/1/2012 12/1/2012 8/1/2013 4/1/2014 12/1/2014 8/1/20150

2000400060008000

1000012000140001600018000

-80,000

-60,000

-40,000

-20,000

0

20,000

40,000

Moderate Risk Loans Low Risk LoansDemand for Commercial & Industrial Loans (Large & Middle-Market Firms)

Recent Trends

Low risk loan volume trending upward, moderate to high risk loans trending down.

Demand decrease do to market-sell off and investor sentiment

ISM Manufacturing index hit a 7 year low of 48

US Corporate Profitability index slightly trending down


Historical Snapshot

Leverage Loan Index vs Us Corp Profitability 2002-2009

| 6

3/1/20

02

11/1/

2002

7/1/20

03

3/1/20

04

11/1/

2004

7/1/20

05

3/1/20

06

11/1/

2006

7/1/20

07

3/1/20

08

11/1/

2008

7/1/20

090%

10%20%30%40%50%60%70%80%90%

-40%

-30%

-20%

-10%

0%

10%

20%

US Corp Profitablilty Leverage Loan Index

Leverage Loan Index vs US Corp Profitability 2011-Present

6/1/20

11

10/1/

2011

2/1/20

12

6/1/20

12

10/1/

2012

2/1/20

13

6/1/20

13

10/1/

2013

2/1/20

14

6/1/20

14

10/1/

2014

2/1/20

15

6/1/20

150%

5%

10%

15%

20%

25%

30%

-8%

-6%

-4%

-2%

0%

2%

4%

US Corp Profitablilty Leverage Loan Index

Leverage Loan Index vs ISM Manufacturing 2004-2010 Leverage Loan Index vs ISM Manufacturing 2012-Present

12/1/

2004

9/1/20

05

6/1/20

06

3/1/20

07

12/1/

2007

9/1/20

08

6/1/20

09

3/1/20

10

12/1/

2010

6065707580859095

100105

30

35

40

45

50

55

60

Leverage Loan ISM

3/1/20

12

8/1/20

12

1/1/20

13

6/1/20

13

11/1/

2013

4/1/20

14

9/1/20

14

2/1/20

15

7/1/20

15

12/1/

2015

80828486889092949698

100

44

46

48

50

52

54

56

58

Leverage Loan ISM


SummaryLeveraged Loans vs. Other Indicators

Historical Performance and Recovery Rates Summary

| 7

Leverage Loan 2015 default rates are low at 2% compared to their 4.5% historical average.

Senior Secured Loans have a historical 80% recovery rate.

Leverage Loans have outperformed the aggregate bonds market in rising interest rate environments.

9/30/2

003

1/30/2

004

6/1/20

04

10/1/

2004

2/1/20

05

6/1/20

05

10/1/

2005

2/1/20

06

6/1/20

06

10/1/

2006

2/1/20

07

6/1/20

07

10/1/

2007

2/1/20

08

6/1/20

08

10/1/

2008

2/1/20

09

6/1/20

09

10/1/

2009

2/1/20

10

6/1/20

10

10/1/

2010

2/1/20

11

6/1/20

11

10/1/

2011

2/1/20

12

6/1/20

12

10/1/

2012

2/1/20

13

6/1/20

13

10/1/

2013

2/1/20

14

6/1/20

14

10/1/

2014

2/1/20

15

6/1/20

15

10/1/

2015

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

0

1

2

3

4

5

6

Leverage Loan Index Barclays Agg Fed Funds LIBOR

Leverage Loans are trading at a discount due to recent market turbulence.

Fed Funds hopeful to raise over the next 24

month.

Long term, Fed Funds projected to reach 4.5% in 2020.

BKLN offers low duration risk as loan rates within the fund are reset quarterly which has traditionally offered less price volatility.


Comparable Funds

Normalized Comparable Funds Price Performance

Key Comparative Statistics

| 8

12 month dividend yield 30-day Avg. Liquidity Expense Ratio Inception Date Market Cap Maturity < 7 yrs. Type

BKLN 4.21% 2.9M 0.65% 3/3/2011 3.79B 98.60% Open

SRLN 4.45% 176.5K 0.70% 4/4/2033 773.08M 91.18% Open

SNLN 4.40% 151.4K 0.55% 11/6/2012 283.14M NA Open

FTSL 3.96% 127.5K 0.85% 5/5/2013 420.48M 88.77% Closed

3/4/20

11

4/22/2

011

6/10/2

011

7/29/2

011

9/16/2

011

11/4/

2011

12/23

/2011

2/10/2

012

3/30/2

012

5/18/2

012

7/6/20

12

8/24/2

012

10/12

/2012

11/30

/2012

1/18/2

013

3/8/20

13

4/26/2

013

6/14/2

013

8/2/20

13

9/20/2

013

11/8/

2013

12/27

/2013

2/14/2

014

4/4/20

14

5/23/2

014

7/11/20

14

8/29/2

014

10/17

/2014

12/5/

2014

1/23/2

015

3/13/2

015

5/1/20

15

6/19/2

015

8/7/20

15

9/25/2

015

11/13

/2015

1/1/20

16-14%-12%-10%-8%-6%-4%-2%0%2%4%

BKLN SRLN SNLN FTSL

BKLN (presentation)

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