POWERSHARES DB G10 CURRENCY HARVEST 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 Currencies 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 also holds a portfolio of futures contracts on the Eligible Index Currencies and United States Treasury Securities for deposit with the Funds Commodity Broker as margin and United States Treasury Securities, cash and money market mutual funds (affiliated or otherwise) and/or T-Bill ETFs (affiliated or otherwise), as applicable, on deposit with the Custodian (for cash management purposes). Additionally, the Fund gains 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). 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 5.3% of the Funds NAV is required to be posted as collateral with respect to its holdings of futures on the Eligible Index Currencies as of January 31, 2017. Collateral requirements are initially set by the applicable futures exchange. 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 Eligible Index Currencies. 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, cash and the value of the futures contracts on the Eligible Index Currencies that have been marked to market as of January 31, 2017.
The Fund trades exchange-traded futures on the currencies comprising the Deutsche Bank G10 Currency Future Harvest Index®Excess Return, or the Index, with a view to tracking the Index over time. The Index is designed to reflect the return from investing on a 2:1 leveraged basis in long currency futures positions for certain currencies associated with relatively high yielding interest rates and in short currency futures positions for certain currencies associated with relatively low yielding interest rates. The Index is designed to exploit the trend that
The above information was disclosed in a filing to the SEC. To see the filing, click here.
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