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 trade Index Contracts with a view to tracking the changes, positive or negative, in the level of the Index over time. Proceeds of the offering are also used to pay the Funds fees, expenses, and other costs. The Fund also holds a portfolio of futures contracts on the Eligible Index Currencies and Treasury Securities for deposit with the Funds Commodity Bro ker as margin and 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 margin and/or cash management purposes). In addition, the 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). 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 4% 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 December 31, 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 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, money market mutual funds, T-Bill ETFs, cash and the value of the futures contracts on the Eligible Index Currencies that have been marked to market as of December 31, 2018.
The Fund trades Index Contracts, 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 above information was disclosed in a filing to the SEC. To see the filing, click here.
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