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| Disclosures |
CERTAIN MARKETING SERVICES PROVIDED FOR THE FUND BY THE DISTRIBUTOR, ALPS DISTRIBUTORS, INC., WILL BE PERFORMED USING REGISTERED REPRESENTATIVES OF THE DISTRIBUTOR WHO ARE AFFILIATES OR EMPLOYEES OF POWERSHARES CAPITAL MANAGEMENT LLC.
THE ISSUER HAS FILED A REGISTRATION STATEMENT (REGISTRATION NO. 333-125325, INCLUDING A PROSPECTUS) WITH THE SECURITIES AND EXCHANGE COMMISSION (THE “SEC”) FOR THE OFFERING TO WHICH THIS COMMUNICATION RELATES. BEFORE YOU INVEST, YOU SHOULD READ THE PROSPECTUS IN THAT REGISTRATION STATEMENT AND OTHER DOCUMENTS THE ISSUER HAS FILED WITH THE SEC FOR MORE COMPLETE INFORMATION ABOUT THE ISSUER AND THIS OFFERING. YOU MAY GET THESE DOCUMENTS FOR FREE BY VISITING EDGAR ON THE SEC WEBSITE AT WWW.SEC.GOV. ADDITIONALLY, THE PROSPECTUS IS AVAILABLE ON BOTH WWW.DBCFUND.DB.COM AND WWW.AMEX.COM.
THE OFFERING OF THE SHARES THE POWERSHARES DB COMMODITY INDEX TRACKING FUND (SYMBOL: DBC) CAN ONLY BE MADE BY THE PROSPECTUS WHICH CONTAINS IMPORTANT INFORMATION REGARDING CERTAIN RISKS ASSOCIATED WITH DBC AND SHOULD BE READ CAREFULLY AND RETAINED BY ANYONE CONSIDERING AN INVESTMENT IN DBC. THE SHARES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SEC NOR HAS THE SEC, THE COMMODITY FUTURES TRADING COMMISSION, OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THE PROSPECTUS OR THIS BROCHURE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. AN INVESTMENT IN DBC IS SPECULATIVE AND INVOLVES A HIGH DEGREE OF RISK.
YOU SHOULD CONSIDER ALL RISK FACTORS SET FORTH IN THE ACCOMPANYING PROSPECTUS BEFORE INVESTING IN DBC. PLEASE REFER TO “THE RISKS YOU FACE” AND “CONFLICTS OF INTEREST” IN THE PROSPECTUS FOR A MORE DETAILED DESCRIPTION OF THE FOLLOWING RISKS AND OTHER SIGNIFICANT RISK FACTORS APPLICABLE TO AN INVESTMENT IN DBC.
The value of DBC's shares relates directly to the value of the commodity futures and other assets held by DBC. Fluctuations in the prices of these assets could adversely affect an investment in DBC shares.
The Commodity Futures Trading Commission and commodity exchange rules impose speculative position limits on market participants trading in two commodities included in the Deutsche Bank Liquid Commodity Index™ (the Index that DBC seeks to track), corn and wheat. DBC has received partial relief from the Commodity Futures Trading Commission and exchanges from these position limits. However, if position limits are applied to DBC, DBC’s ability to issue new baskets, or DBC’s ability to reinvest income in additional corn and wheat futures contracts may be limited to the extent these activities would cause DBC to exceed applicable position limits. Limiting the size of DBC may affect the correlation between the price of the shares, as traded on the Amex, and the net asset value per share. That is, the inability to create additional baskets could result in shares of DBC trading at a premium or discount to net asset value of DBC.
DBC may not always be able exactly to replicate the performance of the Index.
DBC is not actively managed and will track the Index during periods in which the Index is flat or declining as well as when the Index is rising.
The lack of an active trading market for DBC shares may result in losses on your investment at the time of disposition of your DBC shares.
DBC shares are a new securities product and their value could decrease if unanticipated operational or trading problems arise.
You should not rely on past performance in deciding whether to buy DBC shares.
Shares in DBC are speculative securities and their purchase involves a high degree of risk. All risk factors set forth in the Prospectus for DBC should be considered prior to making an investment in DBC.
Fewer representative commodities may result in greater Index volatility.
Price volatility may possibly cause the total loss of your investment.
Fees and commissions are charged regardless of profitability.
Possible illiquid markets may exacerbate losses.
Trading on commodity exchanges outside the United States is not subject to U.S. regulation.
Various actual and potential conflicts of interest may be detrimental to shareholders.
Shareholders will be subject to taxation on their share of DBC’s taxable income in each year, whether or not they receive cash distributions.
Shareholders will not have the protections associated with ownership of shares in an investment company registered under the Investment Company Act of 1940.
Additional risk factors are described in the Prospectus. Prospective investors should read the entire Prospectus before deciding to invest in DBC.
THE COMMODITY FUTURES TRADING COMMISSION HAS NOT PASSED UPON THE MERITS OF PARTICIPATING IN THIS POOL NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THE PROSPECTUS OR THIS BROCHURE. THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THE PROSPECTUS OR THIS BROCHURE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
Past performance should not be taken as an indication of future performance.
DB COMMODITY SERVICES LLC (THE MANAGING OWNER OF DBC) HAS HAD LIMITED EXPERIENCE IN TRADING ACTUAL ACCOUNTS FOR ITSELF OR FOR CUSTOMERS.
UNLESS OTHERWISE SPECIFIED, NO TRANSACTION RELATING TO THE INDEX IS SPONSORED, ENDORSED, SOLD OR PROMOTED BY DEUTSCHE BANK AG LONDON (THE INDEX SPONSOR) AND THE INDEX SPONSOR MAKES NO EXPRESS OR IMPLIED REPRESENTATIONS OR WARRANTIES AS TO (A) THE ADVISABILITY OF PURCHASING OR ASSUMING ANY RISK IN CONNECTION WITH ANY SUCH TRANSACTION (B) THE LEVELS AT WHICH THE INDEX STANDS AT ANY PARTICULAR TIME ON ANY PARTICULAR DATE (C) THE RESULTS TO BE OBTAINED BY THE ISSUER OF ANY SECURITY OR ANY COUNTERPARTY OR ANY SUCH ISSUER'S SECURITY HOLDERS OR CUSTOMERS OR ANY SUCH COUNTERPARTY'S CUSTOMERS OR COUNTERPARTIES OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE INDEX OR ANY DATA INCLUDED THEREIN IN CONNECTION WITH ANY LICENSED RIGHTS OR FOR ANY OTHER USE OR (D) ANY OTHER MATTER. THE INDEX SPONSOR MAKES NO EXPRESS OR IMPLIED REPRESENTATIONS OR WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE INDEX OR ANY DATA INCLUDED THEREIN.
WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL THE INDEX SPONSOR HAVE ANY LIABILITY (WHETHER IN NEGLIGENCE OR OTHERWISE) TO ANY PERSON FOR ANY DIRECT, INDIRECT, SPECIAL, PUNITIVE, CONSEQUENTIAL OR ANY OTHER DAMAGES (INCLUDING LOST PROFITS) EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
SHARES IN DBC ARE NEITHER INTERESTS IN NOR OBLIGATIONS OF ANY BANK AND ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY.
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