PowerShares DB Energy Fund just filed a prospectus, suggesting it plans to soon issue some securities

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:

USE OF PROCEEDS

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 Fund’s offering are also used to pay the Fund’s fees, expenses, and other costs. Each Fund’s portfolio also includes United States Treasury Securities for deposit with such Fund’s Commodit y Broker as margin and United States Treasury Securities, cash and money market mutual funds (affiliated or otherwise) on deposit with such Fund’s 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 Fund’s holdings of T-Bill ETFs (affiliated or otherwise). Such holdings of T-Bill ETFs are on deposit with such Fund’s Custodian (for margin and/or cash management purposes).

The following table reflects the approximate percentage of each Fund’s NAV that is required to be posted as collateral with respect to its holdings of each Fund’s 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 Fund’s futures contracts. For purposes of calculating the approximate percentage of each Fund’s NAV that was posted as collateral, each Fund’s aggregate assets under management reflected the sum of each Fund’s 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:

PowerShares DB Energy Fund Just Received a Notice of Effectiveness - Aug. 27, 2019
PowerShares DB Energy Fund just filed a prospectus, suggesting it plans to soon issue some securities - Aug. 27, 2019

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