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

Press release · 05/08 19:51
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 0.4% from the previous quarter. The fund experienced a decrease in total net assets, which was primarily due to a decline in the value of the underlying assets. The fund’s net expense ratio for the quarter was 0.85%, down from 0.86% in the previous quarter. The fund’s average daily volume was 10,000 shares, and the weighted average market price of the underlying assets was $100. The fund’s management discussed the market conditions and the fund’s performance in their discussion and analysis of financial condition and results of operations.

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 back the Fund’s futures market exposure.

As of March 31, 2024, the Fund had total net assets of $XXX million.

Future Outlook

The future performance of the Fund will depend on trends in the US dollar. If the US dollar continues to show resilience and appreciates further, this will negatively impact the Fund.

However, if economic weakness or a shift to easier monetary policy cause the US dollar to decline, the Fund is likely to benefit. The Manager aims to position the Fund to profit should the US dollar weaken substantially in the future.

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