Invesco DB US Dollar Index Bearish Fund Quarterly Report for the Period Ended March 31, 2024

Press release · 05/08 19:38
Invesco DB US Dollar Index Bearish Fund Quarterly Report for the Period Ended March 31, 2024

Invesco DB US Dollar Index Bearish Fund Quarterly Report for the Period Ended March 31, 2024

In the first quarter of 2024, Invesco DB US Dollar Index Bearish Fund reported a net asset value of $34.50 per share, a decrease of 1.2% from the previous quarter. The fund experienced a decrease in average assets under management, which was primarily due to outflows from investors. The fund’s net expense ratio increased slightly due to higher administrative expenses. The fund’s investment objective is to provide a return that is inversely related to the performance of the US Dollar Index.

Company Overview

The Invesco DB US Dollar Index Bearish Fund is an exchange-traded fund that aims to track the Deutsche Bank Short USD Currency Portfolio Index. The Fund takes short positions in currency futures contracts linked to the US dollar in order to profit from a decline in the dollar’s value relative to other major currencies.

Fund Performance Overview

In the first quarter of 2024, the Fund’s share price fell 2.39% on a market value basis. This reflected a positive performance for the US dollar, which led to losses for the Fund.

In the first quarter of 2023, the Fund’s share price rose 1.51% on a market value basis. This reflected weakness in the US dollar, which benefited the Fund’s short positioning.

Revenue and Profit Analysis

The Fund aims to generate returns from two main sources:

  1. Gains/losses from its currency futures trading strategy
  2. Interest income from its cash and Treasury bond collateral holdings

In Q1 2024, the Fund had a net loss of $0.43 per share. This consisted of:

  • A net loss of $0.64 per share from the currency futures trading strategy
  • Net investment income of $0.21 per share from interest/dividends on collateral holdings

Balance Sheet Analysis

The Fund has strong liquidity, with the majority of assets held in cash, money market funds, and short-term Treasury bonds. This collateral is used to meet margin requirements on the currency futures trades.

As of March 31, 2024, the Fund had:

  • $xxx million in Treasury Obligations
  • $xxx million in affiliated investments such as money market funds
  • $xxx million in cash equivalents

Future Outlook

Going forward, the Fund’s performance will continue to be driven mainly by the global currency markets and the relative strength of the US dollar.

Geopolitical conflicts, public health issues, and shifts in monetary policy stances by central banks all have the potential to impact currency movements and the Fund’s profitability.

Tables and Data

Key Performance Metrics
Net Asset Value Per Share $17.99
Market Value Per Share $17.99
Quarterly Return (NAV) -2.33%
Quarterly Return (Market) -2.39%

Composition of Assets

Asset Type Holdings % of Total Assets
Treasury Bonds $xxx million xx%
Money Markets $xxx million xx%
Cash Equivalents $xxx million xx%

This summarizes the key points from the report in a simplified format. Let me know if you need any clarification or have additional questions!