PowerShares DB Energy 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 of each Fund are used by each Fund to engage in the trading of exchange-traded futures on its Index Commodities with a view to tracking the changes, positive or negative, in the level of its Index over time, less the expenses of the operations of the Fund. Each Funds portfolio also includes United States Treasury Securities for deposit with such Funds Commodity Broker as margin and United Sta tes Treasury Securities, cash and money market mutual funds (affiliated or otherwise) on deposit with such Funds Custodian for cash management purposes. Additionally, the Funds may also gain an exposure to United States Treasury Securities with a maximum remaining maturity of up to 12 months through each Funds holdings of T-Bill ETFs (affiliated or otherwise). Any such holdings of T-Bill ETFs will be on deposit with such Funds Custodian (for cash management purposes).
The following table reflects the approximate percentage of each Funds NAV that is posted as collateral with respect to its holdings of each Funds applicable futures contracts as of August 31, 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 each Funds futures contracts. For purposes of calculating the approximate percentage of each Funds NAV that was posted as collateral, each Funds aggregate assets under management reflected the sum of each Funds holdings of Treasury Securities, money market mutual funds, cash and the value of the applicable futures contracts that have been marked to market as of September 30, 2016. (Because each Fund did not hold T-Bill ETFs as of September 30, 2016, the calculation of each Funds aggregate assets under management did not include any T-Bill ETFs. We
The above information was disclosed in a filing to the SEC. To see the filing, click here.
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