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 futures on its Index Commodities
with a view to tracking the changes, positive or negative, in the level of its Index over time. Proceeds of each Funds offering are also used to pay the Funds fees, expenses, and other costs. Each Funds portfolio also includes
United States Treasury Securities for deposit with such Funds Co mmodity Broker as margin and United States Treasury Securities, cash and money market mutual funds (affiliated or otherwise) on deposit with such Funds Custodian (for margin
and/or cash management purposes). In addition, the Funds also gain an exposure to United States Treasury Securities with a maximum remaining maturity of up to twelve months through each Funds holdings of
T-Bill ETFs (affiliated or otherwise). Such holdings of T-Bill ETFs are on deposit with such Funds Custodian (for margin and/or cash management purposes).
The following table reflects the approximate percentage of each Funds NAV that is required to be posted as collateral
with respect to its holdings of each Funds applicable futures contracts as of December 31, 2017:
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, T-Bill ETFs, cash and the value of the applicable futures contracts that have been marked to market as of December 31, 2017.
The above information was disclosed in a filing to the SEC. To see the filing, click here.
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Other recent filings from the company include the following: