Filed Pursuant to Rule 424(b)(3)
Registration Statement Nos.
333-216693
333-216693-01
PROSPECTUS SUPPLEMENT NO. 1
(to Prospectus dated March 1, 2019)
INVESCO DB US DOLLAR INDEX TRUST
INVESCO DB US DOLLAR INDEX BEARISH FUND
191,882,020 Common Units of Beneficial Interest
This Prospectus Supplement No. 1 (Supplement No. 1) supplements and amends our Prospectus dated March 1, 2019 (the Prospectus). Supplement No. 1 is being filed to provide notice of the following:
1. | Effective April 8, 2019 (the Effective Date), Invesco Advisers Inc. will no longer serve as commodity trading advisor to the Invesco DB US Dollar Index Bearish Fund and all commodity trading advisor responsibilities will be assumed by Invesco Capital Management LLC in its capacity as Managing Owner. Accordingly, as of the Effective Date, all references to Invesco Advisers Inc. in the context of serving as a commodity trading adviser to the Fund are deleted. In addition, The Affiliation of the Managing Owner and Invesco Advisers Presents a Conflict in the Managing Owners Oversight of Invesco Advisers discussion in the RISK FACTORS section of the Prospectus is deleted. |
2. | Effective immediately, the following replaces the discussion included in the EXPERTS section of the Prospectus on page 102: |
The financial statements of Invesco DB US Dollar Index Bearish Fund and managements assessment of the effectiveness of internal control over financial reporting (which is included in Managements Report on Internal Control over Financial Reporting) incorporated in this Prospectus by reference to the Annual Report on Form 10-K for the most recent fiscal year end have been so incorporated in reliance on the report of PricewaterhouseCoopers LLP, an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting.
Supplement No. 1 should be read together with the Prospectus.
Shares of the Invesco DB US Dollar Index Bearish Fund (the Fund) are listed on NYSE Arca, Inc. under the symbol UDN.
Investing in the Shares involves significant risks. See RISK FACTORS starting on page 14 of the Prospectus.
These securities have not been approved or disapproved by the Securities and Exchange Commission or any state securities commission nor has the Securities and Exchange Commission passed upon the adequacy or accuracy of the Prospectus or this Prospectus Supplement No. 1. Any representation to the contrary is a criminal offense.
The Fund is not a mutual fund or any other type of investment company within the meaning of the Investment Company Act of 1940, as amended, and is not subject to regulation thereunder.
THE COMMODITY FUTURES TRADING COMMISSION HAS NOT PASSED UPON THE MERITS OF PARTICIPATING IN THIS POOL NOR HAS THE COMMISSION PASSED ON THE ADEQUACY OR ACCURACY OF THIS DISCLOSURE DOCUMENT.
The date of this Prospectus Supplement No. 1 is March 22, 2019.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
P-DBUDN-PRO-1-SUP-1
INVESCO DB US DOLLAR INDEX TRUST
Invesco DB US Dollar Index Bearish Fund 191,882,020 Common Units of Beneficial Interest
INVESTING IN THE SHARES INVOLVES SIGNIFICANT RISKS.
PLEASE REFER TO RISK FACTORS BEGINNING ON PAGE 14.
Authorized Participants may offer to the public, from time-to-time, Shares from any Baskets they create. Shares offered to the public by Authorized Participants will be offered at a per-Share offering price that will vary depending on, among other factors, the trading price of the Shares on the NYSE Arca, the NAV per Share and the supply of and demand for the Shares at the time of sale. Sales prices are expected to fall between NAV and the trading price of the Shares on the NYSE Arca at the time of sale. Because the Shares will trade at market prices, rather than the NAV of the Fund, Shares may trade at prices greater than NAV (at a premium), at NAV, or less than NAV (at a discount). Authorized Participants will not receive from the Fund, the Managing Owner or any of their affiliates, any fee or other compensation in connection with their sale of Shares to the public.
An Authorized Participant may receive commissions or fees from investors who purchase Shares through their commission or fee-based brokerage accounts. In addition, the Managing Owner pays a distribution services fee to Invesco Distributors, Inc. and pays a marketing services fee to Deutsche Investment Management Americas Inc. (DIMA) without reimbursement from the Trust or the Fund. For more information regarding items of compensation paid to Financial Industry Regulatory Authority, Inc. (FINRA) members, please see the Plan of Distribution section on page 98.
These securities have not been approved or disapproved by the U.S. Securities and Exchange Commission (SEC) or any state securities commission nor has the SEC or any state securities commission passed upon the accuracy or adequacy of this Prospectus. Any representation to the contrary is a criminal offense. The Fund is not a mutual fund or any other type of investment company within the meaning of the Investment Company Act of 1940, as amended, and is not subject to regulation thereunder.
THE COMMODITY FUTURES TRADING COMMISSION HAS NOT PASSED UPON THE MERITS OF PARTICIPATING IN THIS POOL NOR HAS THE COMMISSION PASSED ON THE ADEQUACY OR ACCURACY OF THIS DISCLOSURE DOCUMENT.
March 1, 2019
COMMODITY FUTURES TRADING COMMISSION
RISK DISCLOSURE STATEMENT
YOU SHOULD CAREFULLY CONSIDER WHETHER YOUR FINANCIAL CONDITION PERMITS YOU TO PARTICIPATE IN A COMMODITY POOL. IN SO DOING, YOU SHOULD BE AWARE THAT COMMODITY INTEREST TRADING CAN QUICKLY LEAD TO LARGE LOSSES AS WELL AS GAINS. SUCH TRADING LOSSES CAN SHARPLY REDUCE THE NET ASSET VALUE OF THE POOL AND CONSEQUENTLY THE VALUE OF YOUR INTEREST IN THE POOL. IN ADDITION, RESTRICTIONS ON REDEMPTIONS MAY AFFECT YOUR ABILITY TO WITHDRAW YOUR PARTICIPATION IN THE POOL.
FURTHER, COMMODITY POOLS MAY BE SUBJECT TO SUBSTANTIAL CHARGES FOR MANAGEMENT, AND ADVISORY AND BROKERAGE FEES. IT MAY BE NECESSARY FOR THOSE POOLS THAT ARE SUBJECT TO THESE CHARGES TO MAKE SUBSTANTIAL TRADING PROFITS TO AVOID DEPLETION OR EXHAUSTION OF THEIR ASSETS. THIS DISCLOSURE DOCUMENT CONTAINS A COMPLETE DESCRIPTION OF EACH EXPENSE TO BE CHARGED THIS POOL AT PAGE 48 AND A STATEMENT OF THE PERCENTAGE RETURNS NECESSARY TO BREAK EVEN, THAT IS, TO RECOVER THE AMOUNT OF YOUR INITIAL INVESTMENT, AT PAGE 33.
THIS BRIEF STATEMENT CANNOT DISCLOSE ALL THE RISKS AND OTHER FACTORS NECESSARY TO EVALUATE YOUR PARTICIPATION IN THIS COMMODITY POOL. THEREFORE, BEFORE YOU DECIDE TO PARTICIPATE IN THIS COMMODITY POOL, YOU SHOULD CAREFULLY STUDY THIS DISCLOSURE DOCUMENT, INCLUDING A DESCRIPTION OF THE PRINCIPAL RISK FACTORS OF THIS INVESTMENT, AT PAGES 14 THROUGH 30.
SWAPS TRANSACTIONS, LIKE OTHER FINANCIAL TRANSACTIONS, INVOLVE A VARIETY OF SIGNIFICANT RISKS. THE SPECIFIC RISKS PRESENTED BY A PARTICULAR SWAP TRANSACTION NECESSARILY DEPEND UPON THE TERMS OF THE TRANSACTION AND YOUR CIRCUMSTANCES. IN GENERAL, HOWEVER, ALL SWAPS TRANSACTIONS INVOLVE SOME COMBINATION OF MARKET RISK, CREDIT RISK, COUNTERPARTY CREDIT RISK, FUNDING RISK, LIQUIDITY RISK, AND OPERATIONAL RISK. HIGHLY CUSTOMIZED SWAPS TRANSACTIONS IN PARTICULAR MAY INCREASE LIQUIDITY RISK, WHICH MAY RESULT IN A SUSPENSION OF REDEMPTIONS. HIGHLY LEVERAGED TRANSACTIONS MAY EXPERIENCE SUBSTANTIAL GAINS OR LOSSES IN VALUE AS A RESULT OF RELATIVELY SMALL CHANGES IN THE VALUE OR LEVEL OF AN UNDERLYING OR RELATED MARKET FACTOR. IN EVALUATING THE RISKS AND CONTRACTUAL OBLIGATIONS ASSOCIATED WITH A PARTICULAR SWAP TRANSACTION, IT IS IMPORTANT TO CONSIDER THAT A SWAP TRANSACTION MAY BE MODIFIED OR TERMINATED ONLY BY MUTUAL CONSENT OF THE ORIGINAL PARTIES AND SUBJECT TO AGREEMENT ON INDIVIDUALLY NEGOTIATED TERMS. THEREFORE, IT MAY NOT BE POSSIBLE FOR THE COMMODITY POOL OPERATOR TO MODIFY, TERMINATE, OR OFFSET THE POOLS OBLIGATIONS OR THE POOLS EXPOSURE TO THE RISKS ASSOCIATED WITH A TRANSACTION PRIOR TO ITS SCHEDULED TERMINATION DATE.
THIS PROSPECTUS DOES NOT INCLUDE ALL OF THE INFORMATION OR EXHIBITS IN THE REGISTRATION STATEMENT OF THE TRUST OR FUND. YOU CAN READ AND COPY THE ENTIRE REGISTRATION STATEMENT AT THE PUBLIC REFERENCE FACILITIES MAINTAINED BY THE SEC IN WASHINGTON, D.C.
THE FUND FILES QUARTERLY AND ANNUAL REPORTS WITH THE SEC. YOU CAN READ AND COPY THESE REPORTS AT THE SEC PUBLIC REFERENCE FACILITIES IN WASHINGTON, D.C. PLEASE CALL THE SEC AT 1-800-SEC-0330 FOR FURTHER INFORMATION.
THE FILINGS OF THE TRUST AND FUND ARE POSTED AT THE SEC WEBSITE AT HTTP://WWW.SEC.GOV.
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REGULATORY NOTICES
NO DEALER, SALESMAN OR ANY OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATION NOT CONTAINED IN THIS PROSPECTUS, AND, IF GIVEN OR MADE, SUCH OTHER INFORMATION OR REPRESENTATION MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE TRUST, THE FUND, THE MANAGING OWNER, THE AUTHORIZED PARTICIPANTS OR ANY OTHER PERSON.
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER OR SOLICITATION TO SELL OR A SOLICITATION OF AN OFFER TO BUY, NOR SHALL THERE BE ANY OFFER, SOLICITATION, OR SALE OF THE SHARES IN ANY JURISDICTION IN WHICH SUCH OFFER, SOLICITATION, OR SALE IS NOT AUTHORIZED OR TO ANY PERSON TO WHOM IT IS UNLAWFUL TO MAKE ANY SUCH OFFER, SOLICITATION, OR SALE.
THE BOOKS AND RECORDS OF THE FUND ARE MAINTAINED AS FOLLOWS: ALL MARKETING MATERIALS ARE MAINTAINED AT THE OFFICES OF INVESCO DISTRIBUTORS, INC., 11 GREENWAY PLAZA, SUITE 1000, HOUSTON, TEXAS 77046-1173; TELEPHONE NUMBER (800) 983-0903; BASKET CREATION AND REDEMPTION BOOKS AND RECORDS, ACCOUNTING AND CERTAIN OTHER FINANCIAL BOOKS AND RECORDS (INCLUDING 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 ARE MAINTAINED BY THE BANK OF NEW YORK MELLON, 2 HANSON PLACE, BROOKLYN, NEW YORK 11217, TELEPHONE NUMBER (718) 315-7500. ALL OTHER BOOKS AND RECORDS OF THE FUND (INCLUDING MINUTE BOOKS AND OTHER GENERAL CORPORATE RECORDS, TRADING RECORDS AND RELATED REPORTS AND OTHER ITEMS RECEIVED FROM THE FUNDS COMMODITY BROKERS) ARE MAINTAINED AT THE FUNDS PRINCIPAL OFFICE, C/O INVESCO CAPITAL MANAGEMENT LLC, 3500 LACEY ROAD, SUITE 700, DOWNERS GROVE, ILLINOIS 60515; TELEPHONE NUMBER (800) 983-0903. SHAREHOLDERS WILL HAVE THE RIGHT, DURING NORMAL BUSINESS HOURS, TO HAVE ACCESS TO AND COPY (UPON PAYMENT OF REASONABLE REPRODUCTION COSTS) SUCH BOOKS AND RECORDS IN PERSON OR BY THEIR AUTHORIZED ATTORNEY OR AGENT. MONTHLY ACCOUNT STATEMENTS FOR THE FUND CONFORMING TO COMMODITY FUTURES TRADING COMMISSION (CFTC) AND THE NATIONAL FUTURES ASSOCIATION (NFA) REQUIREMENTS ARE POSTED ON THE MANAGING OWNERS WEBSITE AT HTTP://WWW.INVESCO.COM/ETFs. ADDITIONAL REPORTS MAY BE POSTED ON THE MANAGING OWNERS WEBSITE IN THE DISCRETION OF THE MANAGING OWNER OR AS REQUIRED BY REGULATORY AUTHORITIES. INFORMATION ON THE MANAGING OWNERS WEBSITE SHALL NOT BE DEEMED TO BE A PART OF THIS PROSPECTUS OR INCORPORATED BY REFERENCE HEREIN UNLESS OTHERWISE EXPRESSLY STATED. THERE WILL SIMILARLY BE DISTRIBUTED TO SHAREHOLDERS OF THE FUND, NOT MORE THAN 90 DAYS AFTER THE CLOSE OF THE FUNDS FISCAL YEAR, CERTIFIED AUDITED FINANCIAL STATEMENTS AND (IN NO EVENT LATER THAN MARCH 15 OF THE IMMEDIATELY FOLLOWING YEAR) THE TAX INFORMATION RELATING TO SHARES OF THE FUND NECESSARY FOR THE PREPARATION OF SHAREHOLDERS ANNUAL FEDERAL INCOME TAX RETURNS.
THE DIVISION OF INVESTMENT MANAGEMENT OF THE SECURITIES AND EXCHANGE COMMISSION REQUIRES THAT THE FOLLOWING STATEMENT BE PROMINENTLY SET FORTH HEREIN: NEITHER INVESCO DB US DOLLAR INDEX TRUST NOR ANY SERIES THEREOF IS A MUTUAL FUND OR ANY OTHER TYPE OF INVESTMENT COMPANY WITHIN THE MEANING OF THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED, AND IS NOT SUBJECT TO REGULATION THEREUNDER.
AUTHORIZED PARTICIPANTS MAY BE REQUIRED TO DELIVER A PROSPECTUS WHEN TRANSACTING IN SHARES. SEE PLAN OF DISTRIBUTION.
The USDX® mark is a registered service mark owned by ICE Futures U.S., Inc.
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Fees and Expenses
Management Fee | The Fund pays the Managing Owner a Management Fee, monthly in arrears, in an amount equal to 0.75% per annum of the daily NAV of the Fund. The Management Fee is paid in consideration of the Managing Owners services related to the management of the Funds business and affairs, including the provision of futures trading advisory services.
The Fund may, for margin and/or cash management purposes, invest in money market mutual funds and/or T-Bill ETFs that are managed by affiliates of the Managing Owner. The indirect portion of the management fees that the Fund may incur through such investments is in addition to the Management Fee paid to the Managing Owner. The Managing Owner has contractually agreed to waive indefinitely the fees that it receives in an amount equal to the indirect management fees that the Fund incurs through its investments in affiliated money market mutual funds and/or affiliated T-Bill ETFs. The Managing Owner may terminate this fee waiver on 60 days notice. | |
Offering Expenses | Expenses incurred in connection with the continuous offering of Shares are paid by the Managing Owner. | |
Brokerage Commissions and Fees | The Fund pays to the Commodity Broker all brokerage commissions, including applicable exchange fees, NFA fees, give-up fees, pit brokerage fees and other transaction related fees and expenses charged in connection with its trading activities. On average, total charges paid to the Commodity Broker are expected to be less than $6.00 per round-turn trade, although the Commodity Brokers brokerage commissions and trading fees are determined on a contract-by-contract basis. The Managing Owner estimates the brokerage commissions and fees will be approximately 0.05% of the NAV of the Fund in any year, although the actual amount of brokerage commissions and fees in any year or any part of any year may be greater. | |
Routine Operational, Administrative and Other Ordinary Expenses | The Managing Owner pays all of the routine operational, administrative and other ordinary expenses of the Fund, including, but not limited to, computer services, the fees and expenses of the Trustee, license and service fees paid to DIMA as Marketing Agent and Index Sponsor, legal and accounting fees and expenses, tax preparation expenses, filing fees, and printing, mailing and duplication costs. | |
Non-Recurring Fees and Expenses | The Fund pays all of the non-recurring and unusual fees and expenses (referred to as extraordinary fees and expenses in the Trust Agreement), if any, as determined by the Managing Owner. Non-recurring and unusual fees and expenses include items such as legal claims and liabilities, litigation costs, indemnification expenses and other expenses that are not currently anticipated obligations of the Fund or of managed futures funds in general. |
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Management Fee and Expenses to be Paid First out of Treasury Income, Money Market Income and/or T-Bill ETF Income | The Management Fee and the brokerage commissions and fees of the Fund are paid first out of Treasury Income from the Funds holdings of Treasury Securities and Money Market Income from the Funds holdings of money market mutual funds (affiliated or otherwise) and T-Bill ETF Income from the Funds holdings of T-Bill ETFs (affiliated or otherwise), as applicable, on deposit with the Commodity Broker as margin, the Custodian, or otherwise. If the sum of the Treasury Income, the Money Market Income and the T-Bill ETF Income is not sufficient to cover the fees and expenses of the Fund that are payable by the Fund during any period, the excess of such fees and expenses over such Treasury Income, Money Market Income and T-Bill ETF Income, as applicable, will be paid out of income from futures trading, if any, or from sales of the Funds holdings in Treasury Securities, in money market mutual funds and/or holdings in T-Bill ETFs. | |
Selling Commission | Retail investors may purchase and sell Shares through traditional brokerage accounts. Investors are expected to be charged a commission by their brokers in connection with purchases of Shares that will vary from investor to investor. Investors are encouraged to review the terms of their brokerage accounts for applicable charges. |
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SUMMARY (contd)
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The Breakeven Table, as presented, is an approximation only. Because a constant NAV per Share has been assumed, the actual capitalization of the Fund does not directly affect the level of its charges as a percentage of its NAV.
Dollar Amount and
Percentage of Expenses For the Fund | ||||
Expense1 | $ | % | ||
Management Fee2 |
$ 0.16 | 0.75 % | ||
Offering Expense Reimbursement |
$ 0.00 | 0.00 % | ||
Brokerage Commissions and Fees3 |
$ 0.01 | 0.05 % | ||
Routine Operational, Administrative and Other Ordinary Expenses4,5 |
$ 0.00 | 0.00 % | ||
Treasury Income, Money Market Income and T-Bill ETF Income6 |
$ 0.48 | 2.28 % | ||
12-Month Breakeven7,8 |
$ 0.00 | 0.00 % |
1. | See the Charges section for an explanation of the expenses included in the Breakeven Table. The Managing Owner pays a marketing services fee to the Marketing Agent and an index services fee to the Index Sponsor. Because the marketing services fee and the index services fee are not paid by the Fund, these fees are not included in the breakeven analysis. |
2. | The Managing Owner is responsible for paying the fees and expenses of the Administrator, Invesco Distributors, the Index Sponsor and the Marketing Agent from its own assets. |
The Fund may, for margin and/or cash management purposes, invest in money market mutual funds and/or T-Bill ETFs that are managed by affiliates of the Managing Owner. The indirect portion of the management fees that the Fund may incur through such investments is in addition to the Management Fee paid to the Managing Owner. The Managing Owner has contractually agreed to waive indefinitely the fees that it receives in an amount equal to the indirect management fees that the Fund incurs through its investments in affiliated money market mutual funds and/or affiliated T-Bill ETFs. The Managing Owner may terminate this fee waiver on 60 days notice.
As of the date of this Prospectus, this waiver is approximately less than $0.01 per Share per annum.
3. | The actual amount of brokerage commissions and trading fees to be incurred will vary based upon the trading frequency of the Fund and the specific futures contracts traded. |
4. | The Managing Owner is responsible for paying all routine operational, administrative and other ordinary expenses of the Fund. |
5. | Authorized Participants pay a transaction fee in the amount of $500 per order to create and redeem Baskets and are subject to an additional processing charge for failure to timely deliver such orders. Because these transaction fees are de minimis in amount, are charged on a transaction-by-transaction basis (and not on a Basket-by-Basket basis), and are borne by the Authorized Participants, they have not been included in the Breakeven Table. |
6. | Treasury Income is assumed to be earned at a rate of 2.32%, Money Market Income is estimated to be earned at a rate of 2.18%, and T-Bill ETF Income is estimated to be earned at a rate of 2.40%. These assumed rates are based on market rates as of December 31, 2018. T-Bill ETF Income reflects dividend income from the Funds holdings in T-Bill ETFs, if any. Actual Treasury Income, Money Market Income and T-Bill ETF Income could be higher or lower than the levels shown. |
7. | The table indicates that the breakeven amount during the first 12 months of an investment in the Fund is $0.00 and 0% of NAV. These figures reflect that, during those first 12 months, the Funds Treasury Income, Money Market Income, and T-Bill ETF Income are expected to exceed the Funds fees and expenses. |
8. | You may pay brokerage commissions in connection with purchases of the Shares. Because such brokerage commission rates are set by your broker, they will vary from investor to investor and have not been included in the Breakeven Table. Investors are encouraged to review the terms of their brokerage accounts for applicable charges. |
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PERFORMANCE OF INVESCO DB US DOLLAR INDEX BEARISH FUND (TICKER: UDN),
A SERIES OF INVESCO DB US DOLLAR INDEX TRUST
Name of Pool: Invesco DB US Dollar Index Bearish Fund
Type of Pool: Public, Exchange-Listed Commodity Pool
Inception of Trading: February 2007
Aggregate Gross Capital Subscriptions as of December 31, 20181: $1,183,832,497
NAV as of December 31, 2018: $29,369,977
NAV per Share as of December 31, 20182: $20.98
Worst Monthly Drawdown3: (5.22)% January 2015
Worst Peak-to-Valley Drawdown4: (30.16)% March 2008 December 2016
Monthly Rate of Return |
2018(%) | 2017(%) | 2016(%) | 2015(%) | 2014(%) | |||||
January |
3.03 | 2.69 | (0.98) | (5.22) | (1.59) | |||||
February |
(1.56) | (1.57) | 1.46 | (0.53) | 2.10 | |||||
March |
0.35 | 0.73 | 3.81 | (4.02) | (0.59) | |||||
April |
(1.97) | 1.30 | 1.52 | 3.77 | 0.85 | |||||
May |
(2.55) | 1.99 | (2.87) | (2.20) | (1.17) | |||||
June |
(0.73) | 1.21 | (0.45) | 1.47 | 0.82 | |||||
July |
0.14 | 2.80 | 0.73 | (1.94) | (2.22) | |||||
August |
(0.74) | 0.09 | (0.59) | 1.66 | (1.67) | |||||
September |
0.00 | (0.54) | 0.55 | (0.54) | (3.94) | |||||
October |
(2.14) | (1.70) | (3.17) | (0.64) | (1.26) | |||||
November |
(0.19) | 1.64 | (3.37) | (3.44) | (1.81) | |||||
December |
1.08 | 0.78 | (0.92) | 1.66 | (2.36) | |||||
Compound Rate of Return5 |
(5.28)% | 9.69% | (4.44)% | (9.89)% | (12.25)% |
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
Footnotes to Performance Information
1. Aggregate Gross Capital Subscriptions is the aggregate of all amounts ever contributed to the Fund, including investors who subsequently redeemed their investments.
2. NAV per Share is the NAV of the Fund divided by the total number of Shares outstanding with respect to the Fund as of December 31, 2018.
3. Worst Monthly Drawdown is the largest single month loss sustained during the most recent five calendar years and year to date (if applicable). Drawdown as used in this section of the Prospectus means losses experienced by the Fund over the specified period and is calculated on a rate of return basis, i.e., dividing net performance by beginning equity. Drawdown is measured on the basis of monthly returns only, and does not reflect intra-month figures. Month is the month of the Worst Monthly Drawdown.
4. Worst Peak-to-Valley Drawdown is the largest percentage decline in the NAV per Share during the most recent five calendar years (and to the extent applicable, for a period beyond the most recent five calendar years if the starting date of the peak value extends beyond this period). This need not be a continuous decline, but can be a series of positive and negative returns where the negative returns are larger than the positive returns. Worst Peak-to-Valley Drawdown represents the greatest percentage decline from any month-end NAV per Share that occurs without such month-end NAV per Share being equaled or exceeded as of a subsequent month-end. For example, if the NAV per Share of the Fund declined by $1 in each of January and February, increased by $1 in March and declined again by $2 in April, a peak-to-valley drawdown analysis conducted as of the end of April would consider that drawdown to be still continuing and to be $3 in amount, whereas if the NAV per Share had increased by $2 in March, the January-February drawdown would have ended as of the end of February at the $2 level.
5. Compound Rate of Return of the Fund is calculated by multiplying on a compound basis each of the monthly rates of return set forth in the chart above and not by adding or averaging such monthly rates of return. For periods of less than one year, the results are year-to-date.
THE FUNDS PERFORMANCE INFORMATION FROM INCEPTION UP TO AND EXCLUDING FEBRUARY 23, 2015 IS A REFLECTION OF THE PERFORMANCE ASSOCIATED WITH THE FUNDS PREDECESSOR MANAGING OWNER. ALL THE PERFORMANCE INFORMATION ON AND AFTER FEBRUARY 23, 2015 REFLECTS THE PERFORMANCE ASSOCIATED WITH THE MANAGING OWNER.
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CLOSING LEVELS TABLES
DEUTSCHE BANK SHORT USD CURRENCY PORTFOLIO INDEX EXCESS RETURN
Closing Level | Index Changes | |||||||||||||||
High1 | Low2 | Annual3 | Since Inception4 | |||||||||||||
2009 |
149.62 | 123.96 | 6.34 | % | 42.97 | % | ||||||||||
2010 |
145.80 | 125.18 | -1.22 | % | 41.22 | % | ||||||||||
2011 |
153.04 | 137.70 | 0.24 | % | 41.56 | % | ||||||||||
2012 |
145.74 | 136.58 | 1.92 | % | 44.28 | % | ||||||||||
2013 |
146.15 | 136.10 | 0.33 | % | 44.76 | % | ||||||||||
2014 |
146.91 | 128.36 | -11.33 | % | 28.36 | % | ||||||||||
2015 |
128.36 | 114.27 | -9.01 | % | 16.79 | % | ||||||||||
2016 |
124.41 | 111.05 | -3.99 | % | 12.13 | % | ||||||||||
2017 |
124.42 | 111.14 | 9.60 | % | 22.89 | % | ||||||||||
20185 |
127.18 | 113.81 | -6.27 | % | 15.19 | % |
THE PRIOR INDEX LEVELS AND CHANGES TO THE INDEX LEVELS SHOWN ABOVE DO NOT REPRESENT THE FUNDS PERFORMANCE AND ARE NOT INDICATIVE OF THE FUNDS FUTURE PERFORMANCE. THE INDEX DOES NOT REFLECT ANY FEES OR EXPENSES ASSOCIATED WITH OPERATING A FUND OR ACTUAL TRADING.
Please refer to the Notes section below.
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The Index Sponsor also maintains a separate index, Deutsche Bank Short USD Currency Portfolio Index Total Return (Index TR) which the Fund does not track. Index TR is calculated on a funded (total return) basis, which reflects the change in market value of the underlying DX Contracts and interest income from a notional basket of fixed income securities.
IndexTR is included so that investors can evaluate an index with both futures and income components, as the Fund tracks the Index and expects to generate income from positions in Treasury Securities, money market funds, and/or T-Bill ETFs that are maintained for margin and/or cash management purposes.
CLOSING LEVELS TABLES
DEUTSCHE BANK SHORT USD CURRENCY PORTFOLIO INDEX TOTAL RETURN
Closing Level | Index Changes | |||||||||||||||
High1 | Low2 | Annual3 | Since Inception4 | |||||||||||||
2009 |
399.63 | 330.77 | 6.49 | % | 281.89 | % | ||||||||||
2010 |
389.88 | 334.55 | -1.09 | % | 277.72 | % | ||||||||||
2011 |
409.50 | 368.32 | 0.29 | % | 278.81 | % | ||||||||||
2012 |
390.23 | 365.65 | 2.01 | % | 286.43 | % | ||||||||||
2013 |
391.59 | 364.63 | 0.39 | % | 287.93 | % | ||||||||||
2014 |
393.75 | 344.08 | -11.30 | % | 244.08 | % | ||||||||||
2015 |
344.08 | 306.31 | -8.97 | % | 213.22 | % | ||||||||||
2016 |
333.94 | 298.71 | -3.69 | % | 201.67 | % | ||||||||||
2017 |
336.66 | 299.03 | 10.63 | % | 233.73 | % | ||||||||||
20185 |
346.05 | 314.31 | -4.40 | % | 219.03 | % |
THE FUND DOES NOT TRACK THE DEUTSCHE BANK SHORT USD CURRENCY PORTFOLIO INDEXTOTAL RETURNTM. THE PRIOR INDEX LEVELS AND CHANGES TO THE INDEX LEVELS SHOWN ABOVE DO NOT REPRESENT THE FUNDS PERFORMANCE AND ARE NOT INDICATIVE OF THE FUNDS FUTURE PERFORMANCE. THE INDEX SHOWN DOES NOT REFLECT ANY FEES OR EXPENSES ASSOCIATED WITH OPERATING A FUND OR ACTUAL TRADING.
Please refer to the Notes section below.
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The following table presents various measures of performance for the Index (Deutsche Bank Short USD Currency Portfolio IndexExcess ReturnTM), IndexTR (Deutsche Bank Short USD Currency Portfolio IndexTotal ReturnTM) and the U.S. Dollar Index (USDX Spot Index). USDX Spot Index has been included to provide investors with an additional basis for evaluating the Fund.
All statistics based on data from December 31, 1986 to December 31, 2018.
VARIOUS STATISTICAL MEASURES |
Index | Index-TR | USDX Spot Index6 | |||||||||
Annualized Changes to Index Level7 |
0.4 | % | 3.7 | % | -0.2 | % | ||||||
Average rolling 3 month daily volatility8 |
8.3 | % | 8.3 | % | 8.0 | % | ||||||
Sharpe Ratio9 |
0.05 | 0.06 | -0.43 | |||||||||
% of months with positive change10 |
53 | % | 57 | % | 48 | % | ||||||
Average monthly positive change11 |
1.9 | % | 2.0 | % | 2.0 | % | ||||||
Average monthly negative change12 |
-2.0 | % | -1.9 | % | -1.8 | % | ||||||
ANNUALIZED INDEX LEVELS13 |
Index | Index-TR | USDX Spot Index6 | |||||||||
1 year |
-6.3 | % | -4.4 | % | 4.4 | % | ||||||
3 year |
-0.5 | % | 0.6 | % | -0.8 | % | ||||||
5 year |
-4.5 | % | -3.8 | % | 3.7 | % | ||||||
7 year |
-2.9 | % | -2.4 | % | 2.6 | % | ||||||
10 year |
-1.5 | % | -1.2 | % | 1.7 | % | ||||||
15 year |
-0.8 | % | 0.4 | % | 0.7 | % |
THE FUND DOES NOT TRACK INDEXTR OR THE USDX SPOT INDEX. THE VARIOUS STATISTICAL MEASURES AND ANNUALIZED INDEX LEVELS SHOWN ABOVE DO NOT REPRESENT THE FUNDS PERFORMANCE AND ARE NOT INDICATIVE OF THE FUNDS FUTURE PERFORMANCE.
Please refer to the Notes section below.
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COMPARISON OF VARIOUS US DOLLAR INDICES
(December 31, 1986 December 31, 2018)
The following tables present additional information on the Index (Deutsche Bank Short USD Currency Portfolio Index Excess Return), the Deutsche Bank Short USD Currency Portfolio Index Total ReturnTM and the U.S. Dollar Index (USDX Spot Index).
THE FUND TRACKS ONLY ITS OWN INDEX, DEUTSCHE BANK SHORT USD CURRENCY PORTFOLIO INDEX EXCESS RETURNTM. THE PRIOR INDEX LEVELS SHOWN ABOVE DO NOT REPRESENT THE FUNDS PERFORMANCE AND ARE NOT INDICATIVE OF THE FUNDS FUTURE PERFORMANCE. THE INDEXES DO NOT REFLECT ANY FEES OR EXPENSES ASSOCIATED WITH OPERATING A FUND OR ACTUAL TRADING.
Please refer to the Notes section below.
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COMPARISON OF ANNUAL RETURNS OF VARIOUS US DOLLAR INDICES
(December 31, 1986 December 31, 2018)
THE FUND TRACKS ONLY ITS OWN INDEX, DEUTSCHE BANK SHORT USD CURRENCY PORTFOLIO INDEX EXCESS RETURNTM. THE PRIOR INDEX LEVELS SHOWN ABOVE DO NOT REPRESENT THE FUNDS PERFORMANCE AND ARE NOT INDICATIVE OF THE FUNDS FUTURE PERFORMANCE. THE INDEXES DO NOT REFLECT ANY FEES OR EXPENSES ASSOCIATED WITH OPERATING A FUND OR ACTUAL TRADING.
Please refer to the Notes section below.
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NOTES:
1. High reflects the highest closing level of the Index during the applicable year.
2. Low reflects the lowest closing level of the Index during the applicable year.
3. Annual Index Changes reflect the change to the Index level on an annual basis as of December 31 of each applicable year.
4. Index Changes Since Inception reflects the change of the Index level since inception on a compounded annual basis as of December 31 of each applicable year.
5. Closing levels as of December 31, 2018.
6. USDX Spot Index provides a general indication of the international value of the U.S. dollar by averaging the exchange rates between the U.S. dollar and the six major world currencies: the Spot Index Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona and Swiss Franc.
7. Annualized Changes to Index Level reflect the change to the applicable index level on an annual basis as of December 31 of each applicable year.
8. Average rolling 3 month daily volatility. The daily volatility reflects the relative rate at which the price of the applicable index moves up and down, which is found by calculating the annualized standard deviation of the daily change in price. In turn, an average of this value is calculated on a 3 month rolling basis.
9. Sharpe Ratio compares the annualized rate of return minus the annualized risk-free rate of return to the annualized variability often referred to as the standard deviation of the monthly rates of return. A Sharpe Ratio of 1:1 or higher indicates that, according to the measures used in calculating the ratio, the rate of return achieved by a particular strategy has equaled or exceeded the risks assumed by such strategy. The risk-free rate of return that was used in these calculations was assumed to be 3.23%.
10. % of months with positive change during the period from inception to December 31, 2018.
11. Average monthly positive change during the period from inception to December 31, 2018.
12. Average monthly negative change during the period from inception to December 31, 2018.
13. Annualized Index Levels reflects the change in the applicable index on an annual basis as of December 31 of each applicable time period (e.g., one year, three, five, seven, ten or fifteen years).
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Summary of Items of Value Paid Pursuant to FINRA Rule 2310
Nature of Payment |
Recipient | Payor | Amount of Payment |
Services Provided | ||||
Selling Commission | Authorized Participants | Shareholders | No greater than 0.99% of the gross offering proceeds. | Brokering purchases and sales of the Shares and creating and redeeming Baskets for the Fund. | ||||
Distribution Services Fee | Invesco Distributors | Managing Owner | Capped at $25,000 per annum, not to exceed 0.25% of the gross offering proceeds. | Assisting the Managing Owner with certain functions and duties relating to distribution and marketing, including reviewing and approving marketing materials, consulting with FINRA and ensuring compliance with FINRA marketing rules and maintaining certain books and records pertaining to the Trust and the Fund. | ||||
Marketing Services Fee | Marketing Agent | Managing Owner | A range from 0.05%0.345% per annum of the Total Average Net Assets (as defined herein) during each year calculated in U.S. dollars; not to exceed 8.75% of the gross offering proceeds. | Assisting the Managing Owner by providing support to educate institutional investors about the Deutsche Bank indices and to complete governmental or institutional due diligence questionnaires or requests for proposals related to the Deutsche Bank indices. |
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PART TWO
STATEMENT OF ADDITIONAL INFORMATION
INVESCO DB US DOLLAR INDEX TRUST
Invesco DB US Dollar Index Bearish Fund
Shares of Beneficial Interest
The Shares are speculative securities which involve the risk of loss.
Past performance is not necessarily indicative of future results.
See Risk Factors beginning at page 14 in Part One.
THIS PROSPECTUS IS IN TWO PARTS:
A DISCLOSURE DOCUMENT AND A STATEMENT OF ADDITIONAL INFORMATION. THESE PARTS ARE BOUND TOGETHER, AND BOTH CONTAIN
IMPORTANT INFORMATION. YOU MUST READ THE
STATEMENT OF ADDITIONAL INFORMATION
IN CONJUNCTION WITH THE
DISCLOSURE DOCUMENT.
March 1, 2019
Invesco Capital Management LLC
Managing Owner
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