Amplify Commodity Trust
For the period ended Sep 30, 2024. Filed Nov 14, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 14, 2024
BDRY$13.24+1.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-21.
0001213900-24-045347
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-14.
0001213900-24-098370
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 133 previous paragraphs and 131 current paragraphs.
95 unchanged; 15 reworded; 18 added; 23 removed; 0 previous and 3 current paragraphs rearranged.
Tables are not compared: 27 previous and 27 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (18)
Current report
Change in Auditor. On November 5, 2024, the Sponsor dismissed WithumSmith+Brown PC as the Trust’s independent registered public accounting firm and appointed Cohen & Company, Ltd. as the Trust’s independent registered public accounting firm beginning with the fiscal quarter ending September 30, 2024.
Current report
During the three months ended September 30, 2024, dry bulk spot rates remained generally higher versus the previous year, with the benchmark Baltic Dry Index averaging more than 50% above the previous year, reaching its highest point early in the quarter before declining and trading in a tight range for the remainder of the period.
Current report
Geopolitical turmoil remains the main driver behind the relative outperformance, as the Israel-Hamas conflict and the resulting ship attacks in the Red Sea passage have rearranged shipping routes in the process lengthening the average trip and leading to significant disruptions across all shipping segments. For dry bulk, longer sailing distances have also increased demand for ships while bulk commodity flows have also seen increases versus the previous year. Although dry bulk has not been affected as much as other shipping segments from the ongoing conflict, spot rates have remained elevated for most of 2024.
Current report
During the three months ended September 2024, iron ore trade volumes to China remain elevated versus the previous year, as China continued to import record amount of the steelmaking material despite weakening domestic steel production. As a result, portside inventories of iron ore have increased in tandem. Although additional stimulus programs have been introduced during the period, the Chinese real estate sector remained in a relatively fragile state for the third year in a row, and while steel demand for manufacturing has increased, such improvement has been more than offset by weaker demand for construction. Iron ore prices remained subdued during the period due to the beforementioned demand issues, but late in the period, the announcement of additional stimulus programs pushed prices briefly back towards the high end of the recent range. Coal volumes have remained relatively flat versus last year, on a slower pace in growth from China and India offset by weakening flows into Europe.
Current report
The combination of continued strong Chinese bulk commodity demand combined with global disruptions due to geopolitical conflicts have been supportive for spot rates for dry bulk shipping leading to the relative outperformance for average spot rates year over year. Spot rate volatility has declined during the period, resulting in unusual stability in the freight futures market.
Current report
The dry bulk orderbook continue to increase throughout the period from relatively low levels as period rates remained elevated, incentivizing owners to place new orders.
Current report
During the three months ended September 30, 2024, the NYSE Arca market value of each Share decreased (12.25%) from $12.24 per Share, representing the closing price on June 30, 2024, to $10.74 per Share, representing the closing price on September 30, 2024. The Share price high and low for the three months ended September 30, 2024 and related change from the closing Share price on June 30, 2024 were as follows: Shares traded from a high of $12.50 per share (+16.39%) on July 1, 2024 to a low of $10.27 per share (4.38%) on September 13, 2024.
Current report
For the three months ended September 30, 2024, the net asset value of each Share decreased (11.65%) from $12.13 per Share to $10.71 per Share. Losses in the investments and futures contracts in addition to an overall net investment loss resulting in the overall decrease in the NAV per Share during the three months ended September 30, 2024.
Current report
Net loss for the three months ended September 30, 2024, was ($4,219,233), resulting from net realized losses on investments and futures contracts of ($4,844,019), unrealized gains on futures contracts of $682,450 and the net investment loss of ($57,664).
Current report
During the three months ended September 30, 2023, the NYSE Arca market value of each Share decreased (1.08%) from $5.55 per Share, representing the closing price on June 30, 2023, to $5.49 per Share, representing the closing price on September 29, 2023. The Share price high and low for the three months ended September 30, 2023 and related change from the closing Share price on June 30, 2023 were as follows: Shares traded from a high of $5.89 per share (+6.13%) on August 16, 2023 to a low of $4.48 per share (19.28%) on July 19, 2023.
Current report
Net income for the three months ended September 30, 2023, was $1,321,498, resulting from net realized losses on investments and futures contracts of ($18,251,365), unrealized gains on futures contracts of $19,736,724 and the net investment loss of ($163,961).
Current report
During the three months ended September 30, 2024, crude tanker spot rates experienced low volatility, with average spot rates for Very Large Crude Carriers (VLCC) remaining about flat from the previous year.
Current report
Geopolitical turmoil has greatly affected global shipping, as the Israel-Hamas conflict and the resulting ship attacks in the Red Sea passage have rearranged shipping routes in the process lengthening the average trip and leading to significant disruptions across all shipping segments. For crude tanker shipping the impact has been relatively small, as most of the crude shipped in Very Large Crude Carriers (VLCCs) does not use the Suez Canal. Although the disruption initially had a knock-on effect on crude tanker rates, fundamentally this sub sector of the broader tanker market has not been affected by the conflict.
Current report
China remains the main region of demand growth for crude oil and, as a result, for crude tanker demand. However, slower oil import growth and weaker domestic demand in China remains a major concern for tanker rates. The Chinese economy has experienced a deceleration in economic growth, and although import activity has been relatively stable, during the first nine months of 2024 oil imports declined marginally. With OPEC+ maintaining its existing production quota throughout the period, there has been little room for tanker demand growth, and although longer sailing distances associated with Brazilian and US oil exports have aided overall tanker demand, such an increase has not been sufficient to push spot tanker rates higher. The recent announcement by OPEC+ to gradually increase oil production starting in December of 2024, should, if implemented, increase demand for crude tankers.
Current report
The crude tanker orderbook for the next few years remains historically low, with very few new vessel deliveries during the period aiding the overall projected market balance. However, the orderbook has been steadily increasing during the period from the record low levels of summer 2023.
Current report
During the three months ended September 30, 2024, the NYSE Arca market value of each Share decreased (12.12%) from $16.79 per Share, representing the closing price on June 30, 2024, to $14.76 per Share, representing the closing price on September 30, 2024. The Share price high and low for the three months ended September 30, 2024 and related change from the closing Share price on December 29, 2023 were as follows: Shares traded from a high of $16.82 per Share (+13.96%) on July 22, 2024 to a low of $14.45 per Share (2.10%) on September 4, 2024.
Current report
For the three months ended September 30, 2024 the net asset value of each Share decreased (11.05%) from $16.69 per Share to $14.85 per Share. Losses in the investments and futures contracts in addition to an overall net investment loss resulting in the overall decrease in the NAV per Share during the three months ended September 30, 2024.
Current report
During the three months ended September 30, 2023, the NYSE Arca market value of each Share decreased ( 24.47%) from $20.88 per Share, representing the closing price on June 30, 2023, to $15.77 per Share, representing the closing price on September 29, 2023. The Share price high and low for the three months ended September 30, 2023 and related change from the closing Share price on June 30, 2023 were as follows: Shares traded from a high of $20.64 per Share (1.15%) on July 28, 2023 to a low of $14.40 per Share (31.03%) on September 12, 2023.
Removed paragraphs (23)
Previous report
During the three months ended March 31, 2024, dry bulk freight rates outperformed most expectations, with the Baltic Dry Index, an index that tracks global spot rates for dry bulk shipping, averaging 80% above levels compared to the three months ended March 31, 2023. The broader shipping sector has seen significant disruptions due to reducing sailing through the world’s two most important waterways, namely the Panama Canal and the Suez Canal. The ongoing draught in the Panama Canal has reduced transits, leading to less available ships for chartering in the Atlantic region. In addition, the recent attacks on commercial vessels in the Red Sea has led to a large number of vessels diverting away from the region and sailing around Africa’s Cape of Good Hope, in the process increasing sailing distances and reducing the effective supply for vessels. Despite hose factors and the negative effect of seasonality during the period, dry bulk shipping freight rates remained well supported. At the end of the quarter, expectations were for a strong freight market for the remainder of the year, as the supply disruptions are expected to remain in place while demand for iron ore and coal exceeded expectations during the three months ended March 31, 2024, when demand is typically at the lowest point of any given year, thus improving the overall sentiment for the sector.
Previous report
During the three months ended March 31, 2024, Capesize freight futures volatility experienced a significant increase reflecting the counter-seasonal and the generally unexpected increase in spot rates as a result of the above-mentioned factors. Although spot rates declined from the very high levels of the fourth quarter of 2023 they quickly bounced back, and the month of February experienced rates that were higher than most analysts’ projections. Towards the end of the period, some easing on spot rates did little to deter the overall bullish outlook for dry bulk rates, as freight futures remained in steep contango versus spot. BDRY closely tracked the performance of short-term dry bulk freight futures and ended the quarter up approximately 20%.
Previous report
The per Share market value of BDRY and its NAV tracked closely for the nine months ended March 31, 2024.
Previous report
The per Share market value of BDRY and its NAV tracked closely for the nine months ended March 31, 2023.
Previous report
During the three months ended March 31, 2024, the NYSE Arca market value of each Share increased (+19.90%) from $11.56 per Share, representing the closing price on December 29, 2023, to $13.86 per Share, representing the closing price on March 31. 2024. The Share price high and low for the three months ended March 31, 2024 and related change from the closing Share price on December 31, 2023 were as follows: Shares traded from a high of $16.84 per share (+45.67%) on March 8, 2024 to a low of $9.00 per share (-22.15%) on January 9, 2024.
Previous report
For the three months ended March 31, 2024, the net asset value of each Share increased (+20.17%) from $11.64 per Share to $13.91 per Share. Gains in the investments and futures contracts more than offset the net investment loss resulting in the overall increase in the NAV per Share during the three months ended March 31, 2024.
Previous report
Net income for the three months ended March 31, 2024, was $8,558,136, resulting from net realized gains on investments and futures contracts of $31,148,394, unrealized gains on futures contracts of $(22,417,090) and the net investment loss of $173,168.
Previous report
During the three months ended March 31, 2023, the NYSE Arca market value of each Share increased (+9.90%) from $9.19 per Share, representing the closing trade on December 30, 2022, to $10.10 per Share, representing the closing price on March 31, 2023. The Share price high and low for the three months ended March 31, 2023 and related change from the closing Share price on December 30, 2022 were as follows: Shares traded from a high of $10.72 per share (+16.65%) on March 14, 2023 to a low of $6.30 per share (-31.45%) on February 15, 2023.
Previous report
For the three months ended March 31, 2023, the net asset value of each Share increased (+6.72%) from $9.38 per Share to $10.01 per Share. Gains in the investments and futures contracts and the net investment loss resulted in the overall increase in the NAV per Share during the three months ended March 31, 2023.
Previous report
Net gain for the three months ended March 31, 2023, was $24,108,529, resulting from net realized gains on investments and futures contracts of $8,599,755, unrealized gains on futures contracts of $15,844,327 and the net investment loss of $335,553.
Previous report
FOR THE NINE MONTHS ENDED MARCH 31, 2024
Previous report
During the nine months ended March 31, 2024, the NYSE Arca market value of each Share increased (+149.73%) from $5.55 per Share, representing the closing trade on June 30, 2023, to $13.86 per Share, representing the closing price on March 31, 2024. The Share price high and low for the nine months ended March 31, 2024 and related change from the closing Share price on June 30, 2023 were as follows: Shares traded from a high of $16.84 per Share (+203.42%) on March 8, 2024 to a low of $4.50 per Share (-18.92%) on July 19, 2023.
Previous report
Net income for the nine months ended March 31, 2024, was $54,603,987 resulting from net realized gains on investments and futures contracts of $40,625,989, unrealized gains on futures contracts of $14,553,830 and the net investment loss of $(575,832).
Previous report
FOR THE NINE MONTHS ENDED MARCH 31, 2023
Previous report
During the nine months ended March 31, 2023, the NYSE Arca market value of each Share decreased (-41.18%) from $17.17 per Share, representing the closing trade on June 30, 2022, to $10.10 per Share, representing the closing price on March 31, 2023. The Share price high and low for the nine months ended March 31, 2023 and related change from the closing Share price on June 30, 2022 were as follows: Shares traded from a high of $17.16 per Share (-0.06%) on July 1, 2022 to a low of $6.30 per Share (-63.31%) on February 15, 2023.
Previous report
For the nine months ended March 31, 2023, the net asset value of each Share decreased (-41.32%) from $17.06 per Share to $10.01 per Share. Losses in the investments and futures contracts and the net investment loss resulted in the overall decrease in the NAV per Share during the nine months ended March 31, 2023.
Previous report
Net gain for the nine months ended March 31, 2023, was $5,611,790, resulting from net realized loss on investments and futures contracts of $22,801,043, unrealized gains on futures contracts of $29,454,117 and the net investment loss of $51,041,284.
Previous report
During the three months ended March 31, 2024, tanker freight rates remained volatile, with the benchmark VLCC TD3C rate (Middle East to China freight rate as measured in USD per ton) averaging some 9% lower compared to the three months ended March 31, 2023 but trading in a relatively wide range. The continuing attacks on commercial ships transiting the Red Sea remain a major issue for commercial shipping and continue to force a large number of vessels to divert away from the Red Sea passage, and as a result the Suez Canal, and sail around Africa’s Cape of Good Hope, increasing sailing distances and thus reducing the global fleet’s effective supply. Lower crude oil shipments as a result of the reduced OPEC+ production, resulted in subdued crude oil cargo volumes, negatively affecting demand for VLCC vessels. Global economic growth forecasts point to relatively moderate economic growth for 2024 and thus oil demand growth might remain relatively weak versus trend, continuing to limit the crude tanker market demand potential.
Previous report
During the three months ended March 31, 2024, tanker freight futures traded in a tight range, mostly following developments in the physical market. The shape of the futures curve remained relatively flat towards the end of the quarter, as positive expectations affecting the broader shipping sector, especially as it relates to the disruption in the Red Sea region, were offset by the negative impact of continuing lower crude oil volumes because of the recent OPEC+ crude oil production cuts. BWET closely tracked short-dated freight futures for VLCCs (TD3C) and ended the quarter up approximately 15%.
Previous report
During the three months ended March 31, 2024, the NYSE Arca market value of each Share increased (+15.35%) from $16.15 per Share, representing the closing price on December 31, 2023, to $18.63 per Share, representing the closing price on March 31, 2024. The Share price high and low for the three months ended March 31, 2024 and related change from the closing Share price on December 29, 2023 were as follows: Shares traded from a high of $20.98 per Share (+29.91%) on February 16 .2024 to a low of $15.80 per Share (- 2.17%) on January 2, 2024.
Previous report
For the three months ended March 31, 2024 the net asset value of each Share increased (+16.23%) from $16.04 per Share to $18.65 per Share. Gains in the investments and futures contracts more than offset the net investment loss resulting in the overall increase in the NAV per Share during the three months ended March 31, 2024.
Previous report
FOR THE NINE MONTHS ENDED MARCH 31, 2024
Previous report
During the nine months ended March 31, 2024, the NYSE Arca market value of each Share decreased (10.78%) from $20.88 per Share, representing the closing price on June 30, 2023, to $18.63 per Share, representing the closing price on March 31, 2024. The Share price high and low for the nine months ended March 31, 2024 and related change from the closing Share price on June 30, 2023 were as follows: Shares traded from a high of $20.98 per Share (0.48%) on February 16, 2024 to a low of $13.96 per Share (-33.14%) on October 5, 2023.
Reworded paragraphs (15)
Previous wording
BDRY’s investment objective is to provide investors with exposure to the daily change in the price of dry bulk freight futures by tracking the performance of a portfolio (the “BDRY Benchmark Portfolio”) and consisting of exchange-cleared futures contracts on the cost of shipping dry bulk freight (“Dry Freight Futures”). BDRY seeks to achieve its investment objective by investing substantially all of its assets in the Dry Freight Futures currently constituting the BDRY Benchmark Portfolio.
Current wording
BDRY’s investment objective is to provide investors with exposure to the daily change in the price of dry bulk freight futures by tracking the performance of a portfolio (the “BDRY Benchmark Portfolio” ) consisting of exchange cleared futures contracts on the cost of shipping dry bulk freight (“Dry Freight Futures”). BDRY seeks to achieve its investment objective by investing substantially all of its assets in the Dry Freight Futures currently constituting the BDRY Benchmark Portfolio.
Previous wording
The BDRY Benchmark Portfolio will maintain long-only positions in Dry Freight Futures. The BDRY Benchmark Portfolio will include a combination of Capesize, Panamax and Supramax Freight Futures. More specifically, the BDRY Benchmark Portfolio will include 50% exposure in Capesize Freight Futures contracts, 40% exposure in Panamax Freight Futures contracts and 10% exposure in Supramax Freight Futures contracts. The BDRY Benchmark Portfolio will not include and the Fund will not invest in swaps, non-cleared dry bulk freight forwards or other over-the-counter derivative instruments that are not cleared through exchanges or clearing houses. The Fund may hold exchange-traded options on Dry Freight Futures. The BDRY Benchmark Portfolio is maintained by Breakwave and will be rebalanced annually. The Dry Freight Futures currently constituting the Benchmark Portfolio, as well as the daily holdings of the Fund will be available on the Fund’s website at www.drybulketf.com.
Current wording
The BDRY Benchmark Portfolio will maintain long only positions in Dry Freight Futures. The BDRY Benchmark Portfolio will include a combination of Capesize, Panamax and Supramax Dry Freight Futures. More specifically, the BDRY Benchmark Portfolio will include 50% exposure in Capesize Dry Freight Futures contracts, 40% exposure in Panamax Dry Freight Futures contracts and 10% exposure in Supramax Dry Freight Futures contracts. The BDRY Benchmark Portfolio will not include and BDRY will not invest in swaps, non-cleared dry bulk freight forwards or other over the counter derivative instruments that are not cleared through exchanges or clearing houses. BDRY may hold exchange traded options on Dry Freight Futures. The BDRY Benchmark Portfolio is maintained by Breakwave and will be rebalanced annually. The Dry Freight Futures currently constituting the BDRY Benchmark Portfolio, as well as the daily holdings of BDRY will be available on BDRY’s website at www.drybulketf.com.
Previous wording
When establishing positions in Dry Freight Futures, BDRY will be required to deposit initial margin with a value of approximately 10% to 40% of the notional value of each Dry Freight Futures position at the time it is established. These margin requirements are established and subject to change from time to time by the relevant exchanges, clearing houses or the Fund’s futures commission merchant (“FCM”). On a daily basis, the Fund will be obligated to pay, or entitled to receive, variation margin in an amount equal to the change in the daily settlement level of its Dry Freight Futures positions. Any assets not required to be posted as margin with the FCM may be held at the Fund’s custodian in cash or cash equivalents.
Current wording
When establishing positions in Dry Freight Futures, BDRY will be required to deposit initial margin with a value of approximately 10% to 40% of the notional value of each Dry Freight Futures position at the time it is established. These margin requirements are established and subject to change from time to time by the relevant exchanges, clearing houses or BDRY’s futures commission merchant (“FCM”). On a daily basis, BDRY will be obligated to pay, or entitled to receive, variation margin in an amount equal to the change in the daily settlement level of its Dry Freight Futures positions. Any assets not required to be posted as margin with BDRY’s FCM will generally be held at BDRY’s custodian in cash or cash equivalents, as discussed below.
Previous wording
BDRY will hold cash or cash equivalents such as U.S. Treasuries or other high credit quality, short-term fixed-income or similar securities for direct investment or as collateral for the freight futures contracts and for other liquidity purposes and to meet redemptions that may be necessary on an ongoing basis. The Fund may also realize interest income from its holdings in U.S. Treasuries or other market rate instruments.
Current wording
BDRY will hold cash or cash equivalents such as U.S. Treasuries or other high credit quality, short term fixed income or similar securities for direct investment and for other liquidity purposes and to meet redemptions that may be necessary on an ongoing basis. BDRY may also realize interest income from its holdings in U.S. Treasuries or other market rate instruments.
Previous wording
The graphs above compare the returns of BDRY with the benchmark portfolio returns for the three months ended March 31, 2024 and 2023, and the nine months ended March 31, 2024 and 2023. The difference in the NAV price and the benchmark value often results in the appearance of a NAV premium or discount to the benchmark. Differences in the benchmark return and the BDRY net asset value per share are due primarily to the following factors:
Current wording
The difference in the NAV price and the benchmark value often results in the appearance of a NAV premium or discount to the benchmark. Differences in the benchmark return and the BDRY net asset value per share are due primarily to the following factors:
Previous wording
For the nine months ended March 31, 2024, the net asset value of each Share increased (+153.35%) from $5.53 per Share to $13.99 per Share. Gains in the futures contracts more than offset the net investment loss, resulting in the overall increase in the NAV per Share during the nine months ended March 31. 2024.
Current wording
For the three months ended September 30, 2023, the net asset value of each Share decreased (0.54%) from $5.53 per Share to $5.50 per Share. Gains in the investments and futures contracts were more than offset by the net investment loss and the impact of the timing of Share sales and redemptions resulted in the overall decrease in the NAV per Share during the three months ended September 30, 2023.
Previous wording
The per Share market value of BWET and its NAV tracked closely for the nine months ended March 31, 2024.
Current wording
The per Share market value of BWET and its NAV tracked closely for the three months ended September 30, 2023.
Previous wording
The graphs above compare the return of BWET with the benchmark portfolio returns for the three and nine months ended March 31, 2024. The difference in the NAV price and the benchmark value often results in the appearance of a NAV discount to the benchmark. Differences in the benchmark return and the BWET net asset value per share are due primarily to the following factors:
Current wording
The graphs above compare the return of BWET with the benchmark portfolio returns for the three months ended September 30, 2024 and 2023. The difference in the NAV price and the benchmark value often results in the appearance of a NAV discount to the benchmark. Differences in the benchmark return and the BWET net asset value per share are due primarily to the following factors:
Previous wording
Net loss for the nine months ended March 31, 2024, was $(5,813), resulting from net realized gains on investments and futures contracts of $992,069 net unrealized losses on investments and futures contracts of $(830,771), and the net investment loss of $(167,111).
Current wording
Net loss for the three months ended September 30, 2024, was ($335,663), resulting from net realized losses on futures contracts of ($292,642), net unrealized losses on futures contracts of ($34,478), and the net investment loss of ($8,543).
Previous wording
For the nine months ended March 31, 2024, the net asset value of each Share decreased (10.49%) from $20.83 per Share to $18.65 per Share. Losses in the investments and futures contracts and the net investment loss resulted in the overall decrease in the NAV per Share during the nine months ended March 31, 2024.
Current wording
For the three months ended September 30, 2023, the net asset value of each Share decreased (25.68%) from $20.83 per Share to $15.48 per Share. Losses in the investments and futures contracts and Fund expenses resulted in the overall decrease in the NAV per Share during the three months ended September 30,2023.
Previous wording
Net income for the three months ended March 31, 2024, was $831,632, resulting from net realized gains on investments and futures contracts of $861,391 net unrealized losses on investments and futures contracts of $78,426, and the net investment loss of $(108,185).
Current wording
Net loss for the three months ended September 30, 2023, was ($902,907), resulting from net realized gains on investments and futures contracts of $33,625, net unrealized losses on investments and futures contracts of ($896,689), and the net investment loss of ($39,843).
Previous wording
The Funds generate cash primarily from (i) the sale of Creation Baskets and (ii) interest earned on cash, cash equivalents and its investments in collateralizing Treasury Securities, if any. Generally, all of the net assets of the Funds are allocated to trading in Benchmark Component Instruments. Most of the assets of the Funds are held in cash and/or cash equivalents that could or are used as margin or collateral for trading in Benchmark Component Instruments. The percentage that such assets bear to the total net assets will vary from period to period as the market values of the Benchmark Component Instruments change. Interest earned on interest-bearing assets of the Funds are paid to the Funds. BDRY earned $372,645 and $417,382, respectively, in interest income during the three months ended March 31, 2024 and 2023 and $1,321,869 and $622,222, respectively, in interest income during the nine months March 31, 2024. BWET earned $19,748 and $33,629, respectively, in interest income during the three and nine months ended March 31, 2024.
Current wording
The Funds generate cash primarily from (i) the sale of Creation Baskets and (ii) interest earned on cash, cash equivalents and its investments in collateralizing Treasury Securities, if any. Generally, all of the net assets of the Funds are allocated to trading in Benchmark Component Instruments. Most of the assets of the Funds are held in cash and/or cash equivalents that could or are used as margin or collateral for trading in Benchmark Component Instruments. The percentage that such assets bear to the total net assets will vary from period to period as the market values of the Benchmark Component Instruments change. Interest earned on interest-bearing assets of the Funds are paid to the Funds. BDRY earned $274,416 and $537,710, respectively, in interest income during the three months ended September 30, 2024 and 2023. BWET earned $26,431 and $6,406, respectively, in interest income during the three months ended September 30, 2024 and 2023, respectively.
Previous wording
Breakwave has agreed to waive its CTA Fee and the Sponsor has agreed to correspondingly assume the remaining expenses of BDRY so that BDRY’s expenses do not exceed an annual rate of 3.50%, excluding brokerage commissions, interest expense, and extraordinary expenses, of the value of BDRY’s average daily net assets (the “BDRY Expense Cap”). The assumption of expenses and waiver of BDRY’s CTA Fee are contractual on the part of the Sponsor and Breakwave, respectively, through through December 31, 2024. If after that date, the Sponsor and/or Breakwave no longer assumed expenses or waived the CTA Fee, respectively, BDRY could be adversely impacted, including in its ability to achieve its investment objective.
Current wording
Breakwave has agreed to waive its CTA Fee and the Sponsor has agreed to correspondingly assume the remaining expenses of BDRY so that BDRY’s expenses do not exceed an annual rate of 3.50%, excluding brokerage commissions, interest expense, and extraordinary expenses, of the value of BDRY’s average daily net assets (the “BDRY Expense Cap”). The assumption of expenses and waiver of BDRY’s CTA Fee are contractual on the part of the Sponsor and Breakwave, respectively, through December 31, 2024. If after that date, the Sponsor and/or Breakwave no longer assumed expenses or waived the CTA Fee, respectively, BDRY could be adversely impacted, including in its ability to achieve its investment objective.
Previous wording
The assumption of expenses by the Sponsor for BDRY, pursuant to the BDRY Expense Cap, amounted to $545,813 and $752,935 for the three months ended March 31, 2024 and 2023, respectively, and $1,897,701 and $1,663,506 for the nine months ended March 31, 2024 and 2023, respectively, as disclosed in the Combined Statements of Operations. The waiver of Breakwave’s CTA fees, pursuant to the undertaking, amounted to $0 and $21,746 for the three months ended March 31, 2024 and 2023, respectively, and $0 and $88,078 for the nine months ended March 31, 2024 and 2023, respectively, as disclosed in the Combined Statements of Operations. BDRY currently accrues its daily expenses based upon established individual expense amounts or the BDRY Expense Cap, whichever aggregate amount is less. At the end of each month, the accrued amount is remitted to the Sponsor as the Sponsor is responsible for the payment of the routine operational, administrative and other ordinary expenses of the Fund. BDRY’s total expenses, prior to the assumption and waiver of expenses, amounted to $545,813 and $774,681 for the three months ended March 21, 2024 and 2023, respectively, and $1,897,701 and $1,751,584, for the nine months ended March 31, 2024 and 2023 respectively, as disclosed in the Combined Statements of Operations.
Current wording
The assumption of expenses by the Sponsor for BDRY, pursuant to the BDRY Expense Cap, amounted to $-0- and $-0- for the three months ended September 30, 2024 and 2023, respectively, as disclosed in the Combined Statements of Operations. The waiver of Breakwave’s CTA fees, pursuant to the undertaking, amounted to $92,369 and $-0- for the three months ended September 30, 2024 and 2023, respectively, as disclosed in the Combined Statements of Operations. BDRY currently accrues its daily expenses based upon established individual expense amounts or the BDRY Expense Cap, whichever aggregate amount is less. At the end of each month, the accrued amount is remitted to the Sponsor as the Sponsor is responsible for the payment of the routine operational, administrative and other ordinary expenses of the Fund. BDRY’s total expenses, prior to the assumption and waiver of expenses, amounted to $424,449 and $701,671 for the three months ended September 30, 2024 and 2023 respectively, as disclosed in the Combined Statements of Operations.
Previous wording
The assumption of expenses by the Sponsor for BWET, pursuant to the BWET Expense Cap, amounted to $127,933 and $200,740 for the three and nine months ended March 31, 2024, respectively, as disclosed in the Combined Statements of Operations. The waiver of Breakwave’s CTA fees, pursuant to the undertaking, amounted to $58,559 and $239,420 for the three and nine months ended March 31, 2024, respectively, as disclosed in the Combined Statements of Operations. BWET currently accrues its daily expenses based upon established individual expense category amounts or the BWET Expense Cap, whichever aggregate amount is less. At the end of each month, the accrued amount is remitted to the Sponsor as the Sponsor is responsible for the payment of the routine operational, administrative and other ordinary expenses of the Fund. BWET’s total expenses, prior to the assumption and waiver of expenses, amounted to $186,492 and $440,160 for the three and nine months ended March 31, 2024, respectively, as disclosed in the Combined Statements of Operations.
Current wording
The assumption of expenses by the Sponsor for BWET, pursuant to the BWET Expense Cap, amounted to $73,835 and $86,109 for the three months ended September 30, 2024 and 2023, respectively, as disclosed in the Combined Statements of Operations. The waiver of Breakwave’s CTA fees, pursuant to the undertaking, amounted to $10,193 and $12,783 for the three ended September 30, 2024 and 2023, respectively, as disclosed in the Combined Statements of Operations. BWET currently accrues its daily expenses based upon established individual expense category amounts or the BWET Expense Cap, whichever aggregate amount is less. At the end of each month, the accrued amount is remitted to the Sponsor as the Sponsor is responsible for the payment of the routine operational, administrative and other ordinary expenses of the Fund. BWET’s total expenses, prior to the assumption and waiver of expenses, amounted to $119,002 and $145,141 for the three months ended September 30, 2024 and 2023, respectively, as disclosed in the Combined Statements of Operations.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
The graphs above compare the returns of BDRY with the benchmark portfolio returns for the three months ended September 30, 2024 and 2023.
Current report — wording carried from elsewhere
NEITHER THE PAST PERFORMANCE OF THE FUND NOR THE PRIOR BENCHMARK PORTFOLIO LEVELS AND CHANGES, POSITIVE OR NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE FUND’S FUTURE PERFORMANCE.
Current report — wording carried from elsewhere
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2023