DB Commodity Index Tracking Fund Announces Plans to Fight Contango.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- The DB Commodity Index Tracking Fund (AMEX AMEX See: American Stock Exchange : DBC See dBA. (language, parallel) DBC - A data-parallel bit-serial C based on MPL. SRC, Bowie MD. E-mail: <maya@super.org>. ) announced in an 8-K filing with the SEC plans to adopt a change in the way it rolls commodity futures contracts with the objective of mitigating the negative effects of contango Contango When the futures price is above the expected future spot price. Consequently, the price will decline to the spot price before the delivery date. Notes: This is the opposite of backwardation. , the condition in which distant delivery prices for futures exceed spot prices. Next month DBC plans to adopt the futures roll rules of the Deutsche Bank Liquid Commodity Index - Excess Return Optimum Yield(TM) (DBLCI-OY), which employs a rules-based approach when it rolls from one futures contract Futures Contract An exchange traded agreement to buy or sell a particular type and grade of commodity for delivery at an agreed upon place and time in the future. Futures contracts are transferable between parties. to another for each commodity in the index. The modification enables the index to rollover to the futures contract which generates the highest 'roll yield', rather than select a new future based on a fixed schedule (e.g. monthly). The result will tend to maximize the benefits of rolling in backwardated markets and minimize the loss from rolling in contangoed markets. "DBC is the first and only commodity index tracking fund to list on a US stock exchange, giving investors unprecedented access to the commodity markets," said Kevin Rich, Chief Executive Officer of DB Commodity Services LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , the managing owner of DBC. "By adopting this modification on how DBC rolls from one futures contract to the next, the fund further extends its benefits over alternative commodity investments." There are risks involved with investing in DBC, including possible loss of money. DBC is an exchange-traded fund and is not actively managed. It is subject to risks similar to stocks, including those related to short selling Short Selling The selling of a security that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller. Short sellers assume that they will be able to buy the stock at a lower amount than the price at which they sold short. and margin account maintenance. Ordinary brokerage commissions apply. An investor should consider DBC's investment objectives, risks, charges and expenses carefully before investing. For this and more complete information about DBC call 877-369-4617 or visit the website www.dbcfund.db.com for a copy of the prospectus. Please read the prospectus carefully before investing. ALPS Distributors, Inc. provides distribution services for DBC. Deutsche Bank Deutsche Bank (NYSE NYSE See: New York Stock Exchange : DB) is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With Euro 1,035 billion in assets and 64,103 employees, Deutsche Bank offers unparalleled financial services in 73 countries throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people. www.db.com |
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