The Fund was formed as a Delaware statutory trust on May 23, 2005. The Predecessor
Managing Owner seeded the Fund with a capital contribution of $1,000 in exchange
for 40 General Shares of the Fund. The General Shares were sold to the Managing
Owner by the Predecessor Managing Owner pursuant to the terms of the Agreement.
The fiscal year end of the Fund is December 31st . The term of the Fund is perpetual
(unless terminated earlier in certain circumstances) as provided for in the
Fifth Amended and Restated Declaration of Trust and Trust Agreement of the Fund
(the “Trust Agreement”). The Fund has an unlimited number of Shares
authorized for issuance.
The Fund offers common units of beneficial interest (the “Shares”)
only to certain eligible financial institutions (the “Authorized Participants”)
in one or more blocks of 200,000 Shares, called a Basket. The proceeds from
the offering of Shares are invested in the Fund. The Fund commenced trading
on the American Stock Exchange (which became the NYSE Alternext US LLC (the
“NYSE Alternext”)) on February 3, 2006 and, as of November 25, 2008,
is listed on the NYSE Arca, Inc. (the “NYSE Arca”).
Each of Deutsche Bank Securities Inc., Merrill Lynch Professional Clearing
Corp., Virtu Financial Capital Markets LLC, Citigroup Global Markets Inc., J.P.
Morgan Securities Inc., Credit Suisse Securities (USA) LLC, Virtu Financial
BD LLC, Knight Capital Americas LLC, Timber Hill LLC, Morgan Stanley & Co.
LLC, Jefferies & Company Inc., Nomura Securities International Inc., RBC
Capital Markets, LLC, UBS Securities LLC, Cantor Fitzgerald & Co., BNP Paribas
Securities Corp., Goldman, Sachs & Co., Goldman Sachs Execution & Clearing,
L.P. and Citadel Securities LLC has executed a Participant Agreement.
The Fund seeks to track changes, whether positive or negative, in the level
of the DBIQ Optimum Yield Diversified Commodity Index Excess Return™ (the
“Index”) over time, plus the excess, if any, of the Fund’s
interest income from its holdings of United States Treasury Obligations over
the expenses of the Fund. The Index is intended to reflect the change in market
value of certain commodities. The commodities comprising the Index are Light
Sweet Crude Oil, Ultra Low Sulphur Diesel (also commonly known as Heating Oil),
Aluminum, Gold, Corn, Wheat, Brent Crude, Copper Grade A, Natural Gas, RBOB
Gasoline (reformulated gasoline blendstock for oxygen blending, or “RBOB”),
Silver, Soybeans, Sugar and Zinc (each an “Index Commodity”, and
collectively the “Index Commodities”).
The Commodity Futures Trading Commission (the “CFTC”) and/or commodity
exchanges, as applicable, impose position limits on market participants trading
in certain commodities included in the Index. The Index is comprised of futures
contracts on each of the Index Commodities that expire in a specific month and
trade on a specific exchange (the “Index Contracts”). If the Managing
Owner determines in its commercially reasonable judgment that it has become
impracticable or inefficient for any reason for the Fund to gain full or partial
exposure to any Index Commodity by investing in a specific Index Contract, the
Fund may invest in (i) a futures contract referencing the particular Index Commodity
other than the Index Contract or, in the alternative, invest in (ii) other futures
contracts not based on the particular Index Commodity ((i) and (ii) collectively,
the “Alternative Futures Contracts”) if, in the commercially reasonable
judgment of the Managing Owner, such Alternative Futures Contracts tend to exhibit
trading prices that correlate with such Index Commodity. Because the Fund is
approaching or has reached position limits with respect to certain futures contracts
comprising the Index, the Fund has commenced investing in other futures contracts
based on commodities that comprise the Index and in futures contracts based
on commodities other than commodities that comprise the Index. Please see http://www.invescopowershares.com
with respect to the most recently available weighted composition of the Fund
and the composition of the Index on the Base Date.
The Managing Owner was formed on February 7, 2003. The Managing Owner is an
affiliate of Invesco Ltd. The Managing Owner was formed to be the managing owner
of investment vehicles such as exchange-traded funds and has been managing non-
commodity futures based exchange-traded funds since 2003 and a commodity futures
based exchange-traded fund since 2014. The Managing Owner serves as the commodity
pool operator, commodity trading advisor and swap firm of the Fund. The Managing
Owner is registered as a commodity pool operator and commodity trading advisor
with the CFTC and is a member of the National Futures Association (the “NFA”).
As a registered commodity pool operator and commodity trading advisor, with
respect to the Fund, the Managing Owner must comply with various regulatory
requirements under the Commodity Exchange Act (the “CEAct”) and
the rules and regulations of the CFTC and the NFA, including investor protection
requirements, antifraud prohibitions, disclosure requirements, and reporting
and recordkeeping requirements. The Managing Owner also is subject to periodic
inspections and audits by the CFTC and NFA.
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