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 that Fund to trade Index Contracts 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 Treasury Securities for deposit with such Funds Commodity Broker as margin and Treasury Securities, cash a nd money market mutual funds (affiliated or otherwise) on deposit with such Funds Custodian (for margin and/or cash management purposes). In addition, each Fund gains an exposure to Treasury Securities with a maximum remaining maturity of up to twelve months through its holdings of T-Bill ETFs (affiliated or otherwise). Holdings of T-Bill ETFs are on deposit with the 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 September 28, 2018:
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 Index 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 Index Contracts that have been marked to market as of September 28, 2018.
The above information was disclosed in a filing to the SEC. To see the filing, click here.
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