PowerShares DB Commodity Index Tracking Fund just came out with a new prospectus, available here. This is an SEC requirement for firms looking to issue certain types of securities. An excerpt of the prospectus is provided below:
Proceeds of the offering of the Shares are used by the Fund to engage in the trading of exchange-traded futures on the Index Commodities with a view to tracking the changes, positive or negative, in the levels of the Index over time, less the expenses of the operations of the Fund. The Fund holds a portfolio of futures contracts on the Index Commodities and United States Treasury Securities for deposit with the Fun ds Commodity Broker as margin and United States Treasury Securities, cash and money market mutual funds (affiliated or otherwise) on deposit with the Custodian (for cash management purposes). Additionally, the Fund may also gain an exposure to United States Treasury Securities with a maximum remaining maturity of up to 12 months through its holdings of T-Bill ETFs (affiliated or otherwise). Any such holdings of T-Bill ETFs will also be on deposit with the Custodian (for cash management purposes) and may be held by the Funds Commodity Broker as margin, to the extent permissible under CFTC rules. Approximately 5.8% of the Funds NAV is posted as collateral with respect to its holdings of futures contracts on the Index Commodities as of September 30, 2016. Collateral requirements are initially set by the applicable futures exchanges. The Commodity Broker applies an additional collateral requirement based on a number of factors, including, but not limited to, volatility, concentration, percentage of open interest, and position size with respect to the futures contracts on the Index Commodities. For purposes of calculating the approximate percentage of the Funds NAV that was posted as collateral, the Funds aggregate assets under management reflected the sum of the Funds holdings of Treasury Securities, money market mutual funds, cash and the value of the futures contracts on the Index Commodities that have been marked to market as of September 30, 2016. (Because the Fund did not hold T-Bill ETFs as of September 30, 2016, the calculation of the Funds aggregate assets under management did not include any T-Bill ETFs. We expect that this calculation may include T-Bill ETFs after the date of this prospectus.)
The Fund trades exchange-traded futures on the commodities comprising the DBIQ Optimum Yield Diversified Commodity Index Excess Return, or the Index, with a view to tracking the Index over time. The Index is intended to reflect the change in market value of certain commodities. The Index
The above information was disclosed in a filing to the SEC. To see the filing, click here.
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