Notes to Unaudited Fina
ncial Statements
September 30, 2012
(1) Organization
PowerShares DB Oil Fund (the “Fund”), a separate series of PowerShares DB Multi-Sector
Commodity Trust (the “Trust”), a Delaware statutory trust organized in seven separate series, was formed on August 3, 2006. DB Commodity Services LLC, a Delaware limited liability company (“DBCS” or the “Managing
Owner”), seeded the Fund with a capital contribution of $1,000 in exchange for 40 General Shares of the Fund. The fiscal year end of the Fund is December 31
st
. The term of the Fund is perpetual (unless terminated earlier in certain circumstances) as provided for in the Second
Amended and Restated Declaration of Trust and Trust Agreement of the Trust (the “Trust Agreement”).
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 Fund commenced investment operations
on January 3, 2007. The Fund commenced trading on the American Stock Exchange (now known as the NYSE Alternext US LLC (the “NYSE Alternext”)) on January 5, 2007 and, as of November 25, 2008, is listed on the NYSE Arca, Inc.
(the “NYSE Arca”).
This report covers the three months ended September 30, 2012 and 2011 (hereinafter referred
to as the “Three Months Ended September 30, 2012” and the “Three Months Ended September 30, 2011”, respectively) and the nine months ended September 30, 2012 and 2011 (hereinafter referred to as the “Nine
Months Ended September 30, 2012” and the “Nine Months Ended September 30, 2011”, respectively).
(2) Fund Investment Overview
The Fund invests with a view to tracking the changes, whether positive or negative, in the level of the DBIQ Optimum
Yield Crude Oil Index Excess Return™ (“DBIQ-OY CL ER™”, or the “Index”) plus the excess, if any, of the Fund’s income from its holdings of United States Treasury Obligations and other high credit quality short-term
fixed income securities over the expenses of the Fund.
The Fund also holds United States Treasury Obligations and other high
credit quality short-term fixed income securities for deposit with the Fund’s commodity broker as margin.
The Index is
intended to reflect the change in market value of the crude oil sector. The single commodity comprising the Index is Light Sweet Crude Oil (WTI) (the “Index Commodity”).
The Commodity Futures Trading Commission (the “CFTC”) and/or commodity exchanges, as applicable, impose position limits on
market participants trading in the commodity included in the Index. The Index is comprised of futures contracts on the Index Commodity that expire in a specific month and trade on a specific exchange (the “Index Contracts”). As disclosed
in the Fund’s Prospectus, 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 the Index Commodity by investing
in the Index Contract, the Fund may invest in a futures contract referencing the Index Commodity other than the Index Contract or, in the alternative, invest in other futures contracts not based on the Index Commodity if, in the commercially
reasonable judgment of the Managing Owner, such futures contracts tend to exhibit trading prices that correlate with the Index Commodity.
The Fund does not employ leverage. As of September 30, 2012 and December 31, 2011, the Fund had $679,875,394 (or 99.24%) and $509,163,718 (or 97.89%), respectively, of its holdings of cash,
United States Treasury Obligations and unrealized appreciation/depreciation on futures contracts on deposit with its Commodity Broker. Of this, $36,968,200 (or 5.44%) and $35,946,585 (or 7.06%), respectively, of the Fund’s holdings of cash and
United States Treasury Obligations are required to be deposited as margin in support of the Fund’s long futures positions as of September 30, 2012 and December 31, 2011, respectively. For additional information, please see the
unaudited Schedule of Investments as of September 30, 2012 and the audited Schedule of Investments as of December 31, 2011 for details of the Fund’s portfolio holdings.
DBIQ™ is a trademark of Deutsche Bank AG London (the “Index Sponsor”). Trademark applications in the United States are
pending with respect to both the Trust and aspects of the Index. The Trust, the Fund and the Managing Owner have been licensed by the Index Sponsor to use the above noted trademark. Deutsche Bank AG London is an affiliate of the Trust, the Fund and
the Managing Owner.
10
(3) Service Providers and Related Party Agreements
The Trustee
Under the Trust Agreement, Wilmington Trust Company, the trustee of the Fund (the “Trustee”), has delegated to the Managing Owner the exclusive management and control of all aspects of the
business of the Trust and the Fund. The Trustee will have no duty or liability to supervise or monitor the performance of the Managing Owner, nor will the Trustee have any liability for the acts or omissions of the Managing Owner.
The Managing Owner
The Managing Owner serves the Fund as commodity pool operator, commodity trading advisor and managing owner, and is an indirect wholly-owned subsidiary of Deutsche Bank AG. During the Three Months Ended
September 30, 2012 and 2011, the Fund incurred Management Fees of $1,133,669 and $1,116,775, respectively. Management Fees incurred during the Nine Months Ended September 30, 2012 and 2011 by the Fund were $3,498,301 and $3,424,223,
respectively. As of September 30, 2012 and December 31, 2011, Management Fees payable to the Managing Owner were $754,915 and $338,111, respectively.
The Commodity Broker
Deutsche Bank Securities Inc., a Delaware
corporation, serves as the Fund’s clearing broker (the “Commodity Broker”). The Commodity Broker is also an indirect wholly-owned subsidiary of Deutsche Bank AG and is an affiliate of the Managing Owner. In its capacity as clearing
broker, the Commodity Broker executes and clears each of the Fund’s futures transactions and performs certain administrative and custodial services for the Fund. As custodian of the Fund’s assets, the Commodity Broker is responsible, among
other things, for providing periodic accountings of all dealings and actions taken by the Trust on behalf of the Fund during the reporting period, together with an accounting of all securities, cash or other indebtedness or obligations held by it or
its nominees for or on behalf of the Fund. During the Three Months Ended September 30, 2012 and 2011, the Fund incurred brokerage fees of $18,462 and $11,561, respectively. Brokerage fees incurred during the Nine Months Ended September 30,
2012 and 2011 by the Fund were $91,376 and $73,801, respectively. As of September 30, 2012 and December 31, 2011, brokerage fees payable were $69 and $8,620, respectively.
The Administrator
The Bank of New York Mellon (the “Administrator”) has been appointed by the Managing Owner as the administrator, custodian and transfer agent of the Fund, and has entered into separate
administrative, custodian, transfer agency and service agreements (collectively referred to as the “Administration Agreement”).
Pursuant to the Administration Agreement, the Administrator performs or supervises the performance of services necessary for the operation and administration of the Fund (other than making investment
decisions), including receiving and processing orders from Authorized Participants to create and redeem Baskets, net asset value calculations, accounting and other fund administrative services. The Administrator retains certain financial books and
records, including: Basket creation and redemption books and records, fund accounting records, ledgers with respect to assets, liabilities, capital, income and expenses, the registrar, transfer journals and related details, and trading and related
documents received from futures commission merchants.
The Distributor
ALPS Distributors, Inc. (the “Distributor”) provides certain distribution services to the Fund. Pursuant to the Distribution
Services Agreement among the Managing Owner in its capacity as managing owner of the Fund, the Fund and the Distributor, the Distributor assists the Managing Owner and the Administrator with certain functions and duties relating to distribution and
marketing services to the Fund including reviewing and approving marketing materials.
Invesco PowerShares Capital
Management LLC
Under the License Agreement among Invesco PowerShares Capital Management LLC (the
“Licensor”), and the Managing Owner in its own capacity and in its capacity as managing owner of the Fund (the Fund and the Managing Owner, collectively, the “Licensees”), the Licensor granted to each Licensee a non-exclusive
license to use the “PowerShares
®
“ trademark (the “Trademark”) anywhere in the world, solely
in connection with the marketing and promotion of the Fund and to use or refer to the Trademark in connection with the issuance and trading of the Fund as necessary.
Invesco Distributors, Inc.
Through a marketing agreement between
the Managing Owner and Invesco Distributors, Inc. (“Invesco Distributors”), an affiliate of Invesco PowerShares Capital Management LLC (“Invesco PowerShares”), the Managing Owner, on behalf of the Fund, has appointed Invesco
Distributors as a marketing agent. Invesco Distributors assists the Managing Owner and the Administrator with
11
certain functions and duties such as providing various educational and marketing activities regarding the Fund, primarily in the secondary trading market, which activities include, but are not
limited to, communicating the Fund’s name, characteristics, uses, benefits, and risks, consistent with the prospectus. Invesco Distributors will not open or maintain customer accounts or handle orders for the Fund. Invesco Distributors engages
in public seminars, road shows, conferences, media interviews, and distributes sales literature and other communications (including electronic media) regarding the Fund.
(4) Summary of Significant Accounting Policies
(a) Basis of Presentation
The financial statements of the Fund have been prepared using U.S. generally accepted accounting principles.
(b) Use of Estimates
The preparation of the financial statements in
conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and related disclosure of contingent assets and
liabilities during the reporting period of the financial statements and accompanying notes. Actual results could differ from those estimates.
(c) Financial Instruments and Fair Value
United States Treasury
Obligations and commodity futures contracts are recorded in the statements of financial condition on a trade date basis at fair value with changes in fair value recognized in earnings in each period. The fair value of a financial instrument is the
amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price).
Financial Accounting Standards Board (FASB) fair value measurement and disclosure guidance requires a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair
value hierarchy are described below:
Basis of Fair Value Measurement
Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or
liabilities;
Level 2: Quoted prices in markets that are not active or financial instruments for which all significant inputs
are observable, either directly or indirectly;
Level 3: Prices or valuations that require inputs that are both significant to
the fair value measurement and unobservable.
A financial instrument’s level within the fair value hierarchy is based on
the lowest level of any input that is significant to the fair value measurement.
In determining fair value of United States
Treasury Obligations and commodity futures contracts, the Fund uses unadjusted quoted market prices in active markets. United States Treasury Obligations and commodity futures contracts are classified within Level 1 of the fair value hierarchy. The
Fund does not adjust the quoted prices for United States Treasury Obligations and commodity futures contracts.
In May 2011,
the FASB issued ASU No. 2011-04,
Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs
. ASU No. 2011-04 requires additional disclosures regarding fair value measurements.
Effective for fiscal years beginning after December 15, 2011 and for interim periods within those fiscal years, entities are required to disclose the following:
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1)
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The amounts of any transfers between Level 1 and Level 2 and the reasons for those transfers, and
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2)
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For Level 3 fair value measurements, quantitative information about the significant unobservable inputs used, a description of the entity’s valuation processes,
and a narrative description of the sensitivity of the fair value measurement to changes in the unobservable inputs and the interrelationship between inputs.
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There were no Level 2 or Level 3 holdings as of September 30, 2012 and December 31, 2011.
12
(d) Deposits with Broker
The Fund deposits cash and United States Treasury Obligations with its Commodity Broker subject to CFTC regulations and various exchange
and broker requirements. The combination of the Fund’s deposits with its Commodity Broker of cash and United States Treasury Obligations and the unrealized profit or loss on open futures contracts (variation margin) represents the Fund’s
overall equity in its broker trading account. To meet the Fund’s initial margin requirements, the Fund holds United States Treasury Obligations. The Fund uses its cash held by the Commodity Broker to satisfy variation margin requirements. The
Fund earns interest on its cash deposited with the Commodity Broker.
(e) United States Treasury Obligations
The Fund records purchases and sales of United States Treasury Obligations on a trade date basis. These holdings are
marked to market based on quoted market closing prices. The Fund holds United States Treasury Obligations for deposit with the Fund’s Commodity Broker to meet margin requirements and for trading purposes. Interest income is recognized on an
accrual basis when earned. Premiums and discounts are amortized or accreted over the life of the United States Treasury Obligations. Included in the United States Treasury Obligations as of September 30, 2012 and December 31, 2011 were
holdings of $36,968,200 and $35,946,585, respectively, which were restricted and held against initial margin of the open futures contracts. The Fund purchased $5,000,000 notional amount of United States Treasury Obligations which was unpaid as of
September 30, 2012. As a result, a payable for securities purchased is reported for $4,998,913. There was no payable for securities purchased balance as of December 31, 2011.
(f) Cash Held by Broker
The Fund’s arrangement with the Commodity Broker requires the Fund to meet its variation margin requirement related to the price movements, both positive and negative, on futures contracts held by
the Fund by keeping cash on deposit with the Commodity Broker. The Fund defines cash and cash equivalents to be highly liquid investments, with original maturities of three months or less when purchased. As of September 30, 2012, the Fund had
$7,958,938 of cash held with the Commodity Broker. As of December 31, 2011 the Fund had $14,067,002 of cash held with the Commodity Broker. There were no cash equivalents held by the Fund as of September 30, 2012 and December 31,
2011.
(g) Income Taxes
The Fund is classified as a partnership for U.S. federal income tax purposes. Accordingly, the Fund will not incur U.S. federal income taxes. No provision for federal, state, and local income taxes has
been made in the accompanying financial statements, as investors are individually liable for income taxes, if any, on their allocable share of the Fund’s income, gain, loss, deductions and other items.
The major tax jurisdiction for the Fund and the earliest tax year subject to examination: United States 2009.
(h) Futures Contracts
All commodity futures contracts are held and used for trading purposes. The commodity futures are recorded on a trade date basis and open contracts are recorded in the statement of financial condition at
fair value on the last business day of the period, which represents market value for those commodity futures for which market quotes are readily available. However, when market closing prices are not available, the Managing Owner may value an asset
of the Fund pursuant to policies the Managing Owner has adopted, which are consistent with normal industry standards. Realized gains (losses) and changes in unrealized appreciation (depreciation) on open positions are determined on a specific
identification basis and recognized in the statement of income and expenses in the period in which the contract is closed or the changes occur, respectively. As of September 30, 2012 and December 31, 2011, the futures contracts held by the
Fund were in a net unrealized appreciation position of $47,994,540 and $106,340, respectively.
(i) Management Fee
The Fund pays the Managing Owner a management fee (the “Management Fee”), monthly in arrears, in an amount
equal to 0.75% per annum of the daily net asset value of the Fund. The Management Fee is paid in consideration of the Managing Owner’s commodity futures trading advisory services.
(j) Brokerage Commissions and Fees
The Fund incurs all brokerage commissions, including applicable exchange fees, National Futures Association (“NFA”) fees, give-up fees, pit brokerage fees and other transaction related fees and
expenses charged in connection with trading activities by the Commodity Broker. These costs are recorded as brokerage commissions and fees in the statement of income and expenses as incurred. The Commodity Broker’s brokerage commissions and
trading fees are determined on a contract-by-contract basis. On average, total charges paid to the Commodity Broker were less than $10.00 per round-turn trade for the Three Months Ended September 30, 2012 and 2011 and the Nine Months Ended
September 30, 2012 and 2011.
13
(k) Routine Operational, Administrative and Other Ordinary Expenses
The Managing Owner assumes all routine operational, administrative and other ordinary expenses of the Fund, including,
but not limited to, computer services, the fees and expenses of the Trustee, legal and accounting fees and expenses, tax preparation expenses, filing fees and printing, mailing and duplication costs. Accordingly, all such expenses are not reflected
in the statement of income and expenses of the Fund.
(l) Organizational and Offering Costs
All organizational and offering expenses of the Fund are incurred and assumed by the Managing Owner. The Fund is not responsible to the
Managing Owner for the reimbursement of organizational and offering costs. Expenses incurred in connection with the continuous offering of Shares also will be paid by the Managing Owner.
(m) Non-Recurring and Unusual Fees and Expenses
The Fund pays all fees and expenses which are non-recurring and unusual in nature. Such expenses include legal claims and liabilities, litigation costs or indemnification or other unanticipated expenses.
Such fees and expenses, by their nature, are unpredictable in terms of timing and amount. For the Three Months Ended September 30, 2012 and 2011 and the Nine Months Ended September 30, 2012 and 2011, the Fund did not incur such expenses.
(5) Fair Value Measurements
The Fund’s assets and liabilities recorded at fair value have been categorized based upon the fair value hierarchy
discussed in Note 4(c).
Assets and Liabilities Measured at Fair Value were as follows:
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September 30,
2012
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December 31,
2011
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United States Treasury Obligations (Level 1)
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$
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623,921,916
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$
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494,990,376
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Commodity Futures Contracts (Level 1)
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$
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47,994,540
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$
|
106,340
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There were no Level 2 or Level 3 holdings as of September 30, 2012 and December 31, 2011.
(6) Financial Instrument Risk
In the normal course of its business, the Fund is party to financial instruments with off-balance sheet risk. The term
“off-balance sheet risk” refers to an unrecorded potential liability that, even though it does not appear on the balance sheet, may result in a future obligation or loss. The financial instruments used by the Fund are commodity futures,
whose values are based upon an underlying asset and generally represent future commitments that have a reasonable possibility of being settled in cash or through physical delivery. The financial instruments are traded on an exchange and are
standardized contracts.
Market risk is the potential for changes in the value of the financial instruments traded by the Fund
due to market changes, including fluctuations in commodity prices. In entering into these futures contracts, there exists a market risk that such futures contracts may be significantly influenced by adverse market conditions, resulting in such
futures contracts being less valuable. If the markets should move against all of the futures contracts at the same time, the Fund could experience substantial losses.
Credit risk is the possibility that a loss may occur due to the failure of an exchange clearinghouse to perform according to the terms of a futures contract. Credit risk with respect to exchange-traded
instruments is reduced to the extent that an exchange or clearing organization acts as a counterparty to the transactions. The Fund’s risk of loss in the event of counterparty default is typically limited to the amounts recognized in the
statement of financial condition and not represented by the futures contract or notional amounts of the instruments.
The Fund
has not utilized, nor does it expect to utilize in the future, special purpose entities to facilitate off-balance sheet financing arrangements and has no loan guarantee arrangements or off-balance sheet arrangements of any kind, other than
agreements entered into in the normal course of business noted above.
14
(7) Share Purchases and Redemptions
(a) Purchases
Shares may be purchased from the Fund only by Authorized Participants in one or more blocks of 200,000 Shares, called a Basket. The Fund issues Shares in Baskets only to Authorized Participants
continuously as of noon, New York time, on the business day immediately following the date on which a valid order to create a Basket is accepted by the Fund, at the net asset value of 200,000 Shares as of the closing time of the NYSE Arca or the
last to close of the exchanges on which the Fund’s assets are traded, whichever is later, on the date that a valid order to create a Basket is accepted by the Fund.
(b) Redemptions
On any business day, an Authorized Participant may
place an order with the Managing Owner to redeem one or more Baskets. Redemption orders must be placed by 10:00 a.m., New York time. The day on which the Managing Owner receives a valid redemption order is the redemption order date. Redemption
orders are irrevocable. The redemption procedures allow Authorized Participants to redeem Baskets. Individual shareholders may not redeem directly from the Fund.
By placing a redemption order, an Authorized Participant agrees to deliver the Baskets to be redeemed through The Depository Trust Company’s (the “DTC”) book-entry system to the Fund not
later than noon, New York time, on the business day immediately following the redemption order date. By placing a redemption order, and prior to receipt of the redemption proceeds, an Authorized Participant’s DTC account is charged the
non-refundable transaction fee due for the redemption order.
The redemption proceeds from the Fund consist of the cash
redemption amount. The cash redemption amount is equal to the net asset value of the number of Basket(s) requested in the Authorized Participant’s redemption order as of the closing time of the NYSE Arca or the last to close of the exchanges on
which the Fund’s assets are traded, whichever is later, on the redemption order date. The Fund will distribute the cash redemption amount at noon, New York time, on the business day immediately following the redemption order date through DTC to
the account of the Authorized Participant as recorded on DTC’s book-entry system.
The redemption proceeds due from the
Fund are delivered to the Authorized Participant at noon, New York time, on the business day immediately following the redemption order date if, by such time on such business day immediately following the redemption order date, the Fund’s DTC
account has been credited with the Baskets to be redeemed. If the Fund’s DTC account has not been credited with all of the Baskets to be redeemed by such time, the redemption proceeds are delivered to the extent of whole Baskets received. Any
remainder of the redemption proceeds are delivered on the next business day to the extent of remaining whole Baskets received if the Managing Owner receives the fee applicable to the extension of the redemption distribution date which the Managing
Owner may, from time-to-time, determine and the remaining Baskets to be redeemed are credited to the Fund’s DTC account by noon, New York time, on such next business day. Any further outstanding amount of the redemption order will be canceled.
The Managing Owner is also authorized to deliver the redemption proceeds notwithstanding that the Baskets to be redeemed are not credited to the Fund’s DTC account by noon, New York time, on the business day immediately following the redemption
order date if the Authorized Participant has collateralized its obligation to deliver the Baskets through DTC’s book-entry system on such terms as the Managing Owner may from time-to-time agree upon.
(c) Share Transactions
Summary of Share Transactions for the Three Months Ended September 30, 2012 and 2011
and the Nine Months Ended September 30, 2012 and 2011
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Shares
Three Months
Ended
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Paid in Capital
Three Months
Ended
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Shares
Nine Months
Ended
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Paid in Capital
Nine Months
Ended
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|
September 30,
2012
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September 30,
2011
|
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September 30,
2012
|
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September 30,
2011
|
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|
September 30,
2012
|
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September 30,
2011
|
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|
September 30,
2012
|
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|
September 30,
2011
|
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Shares Sold
|
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|
4,200,000
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|
|
|
4,800,000
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|
$
|
109,783,304
|
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|
$
|
123,977,820
|
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|
15,600,000
|
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|
11,000,000
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|
$
|
431,875,074
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$
|
308,335,846
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Shares Redeemed
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(2,200,000
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)
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|
(2,200,000
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)
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(57,664,954
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)
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|
(58,495,296
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)
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|
(7,400,000
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)
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|
(9,000,000
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)
|
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|
(198,005,112
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)
|
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|
(262,486,252
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)
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Net Increase/ (Decrease)
|
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2,000,000
|
|
|
|
2,600,000
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|
$
|
52,118,350
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|
|
$
|
65,482,524
|
|
|
|
8,200,000
|
|
|
|
2,000,000
|
|
|
$
|
233,869,962
|
|
|
$
|
45,849,594
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(8) Profit and Loss Allocations and Distributions
Pursuant to the Trust Agreement, income and expenses are allocated
pro rata
to the Managing Owner as holder of
the General Shares and to the Shareholders monthly based on their respective percentage interests as of the close of the last trading day of the preceding month. Any losses allocated to the Managing Owner (as the owner of the General Shares) which
are in excess of the Managing Owner’s capital balance are allocated to the Shareholders in accordance with their respective interest in the Fund as a
15
percentage of total shareholders’ equity. Distributions (other than redemption of units) may be made at the sole discretion of the Managing Owner on a
pro rata
basis in accordance
with the respective capital balances of the shareholders.
(9) Commitments and Contingencies
The Managing Owner, either in its own capacity or in its capacity as the Managing Owner and on behalf of the Fund, has
entered into various service agreements that contain a variety of representations, or provide indemnification provisions related to certain risks service providers undertake in performing services which are in the best interests of the Fund. As of
September 30, 2012, no claims had been received by the Fund and it was therefore not possible to estimate the Fund’s potential future exposure under such indemnification provisions.
(10) Net Asset Value and Financial Highlights
The Fund is presenting the following net asset value and financial highlights related to investment performance for a
Share outstanding for the Three Months Ended September 30, 2012 and 2011 and for the Nine Months Ended September 30, 2012 and 2011. The net investment income and total expense ratios are calculated using average net asset value. The net
asset value presentation is calculated using daily Shares outstanding. The net investment income and total expense ratios have been annualized. The total return is based on the change in net asset value of the Shares during the period. An individual
investor’s return and ratios may vary based on the timing of capital transactions.
Net asset value per Share is the net
asset value of the Fund divided by the number of outstanding Shares.
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|
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Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
|
September 30,
2012
|
|
|
September 30,
2011
|
|
|
September 30,
2012
|
|
|
September 30,
2011
|
|
|
Net Asset Value
|
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Net asset value per Share, beginning of period
|
|
$
|
24.65
|
|
|
$
|
28.90
|
|
|
$
|
28.56
|
|
|
$
|
28.20
|
|
|
Net realized and change in unrealized gain (loss) on United States Treasury Obligations and Futures
|
|
|
1.52
|
|
|
|
(5.67
|
)
|
|
|
(2.28
|
)
|
|
|
(4.87
|
)
|
|
Net investment income (loss)
|
|
|
(0.04
|
)
|
|
|
(0.05
|
)
|
|
|
(0.15
|
)
|
|
|
(0.15
|
)
|
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|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
1.48
|
|
|
|
(5.72
|
)
|
|
|
(2.43
|
)
|
|
|
(5.02
|
)
|
|
Net asset value per Share, end of period
|
|
$
|
26.13
|
|
|
$
|
23.18
|
|
|
$
|
26.13
|
|
|
$
|
23.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market value per Share, beginning of period
|
|
$
|
24.56
|
|
|
$
|
28.75
|
|
|
$
|
28.57
|
|
|
$
|
28.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market value per Share, end of period
|
|
$
|
26.11
|
|
|
$
|
23.04
|
|
|
$
|
26.11
|
|
|
$
|
23.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio to average Net Assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss)
|
|
|
(0.68
|
)%
|
|
|
(0.73
|
)%
|
|
|
(0.70
|
)%
|
|
|
(0.70
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses
|
|
|
0.76
|
%
|
|
|
0.76
|
%
|
|
|
0.77
|
%
|
|
|
0.77
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return, at net asset value **
|
|
|
6.00
|
%
|
|
|
(19.79
|
)%
|
|
|
(8.51
|
)%
|
|
|
(17.80
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return, at market value **
|
|
|
6.31
|
%
|
|
|
(19.86
|
)%
|
|
|
(8.61
|
)%
|
|
|
(18.36
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Percentages are annualized.
|
|
**
|
Percentages are not annualized.
|
(11) Subsequent Events
The Fund evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the
financial statements were issued. This evaluation did not result in any subsequent events that necessitated disclosures and/or adjustments.
16