Amplify Commodity Trust

Previous wording

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 wording

Although geopolitical turmoil continues to affect spot freight rates, slower demand for bulk transportation towards the end of the calendar year weighed on sentiment and thus pushed rates lower. The Israel-Hamas conflict and the resulting ship attacks in the Red Sea passage did and may continue to rearrange shipping routes in the process lengthening the average trip and leading to significant disruptions across all shipping segments. Dry bulk has not been affected as much as other shipping segments from the ongoing conflict. Yet, spot rates have remained elevated for most of 2024 but weakened significantly towards the end of the year.

Previous wording

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 wording

During the three months ended December 31, 2024, iron ore trade volumes to China experienced a decline versus the previous year, as lower overall steel production had a negative impact on demand for iron ore. Portside inventories of iron ore remain elevated and thus demand was also negatively affected. 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. 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.

Previous wording

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 wording

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 during most of 2024, although the sudden weakening towards the end of the year is a cause of concern for the near future. Spot rate volatility increased considerably during the period, following an unusual stability in the freight futures market during prior months.

Previous wording

The graphs above compare the returns of BDRY with the benchmark portfolio returns for the three months ended September 30, 2024 and 2023.

Current wording

The graphs above compare the returns of BDRY with the benchmark portfolio returns for the three months ended December 31, 2024 and 2023, and the six months ended December 31, 2024 and 2023.

Previous wording

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 wording

During the six months ended December 31, 2024, the NYSE Arca market value of each Share decreased (50.33%) from $12.24 per Share, representing the closing price on June 30, 2024, to $6.08 per Share, representing the closing price on December 31, 2024. The Share price high and low for the six months ended December 31, 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 (+2.12%) on July 1, 2024 to a low of $5.71 per share (-53.35%) on December 11, 2024.

Previous wording

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 wording

For the six months ended December 31, 2024, the net asset value of each Share decreased (50.19%) from $12.13 per Share to $6.04 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 six months ended December 31, 2024.

Previous wording

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 wording

During the six months ended December 31, 2023, the NYSE Arca market value of each Share increased (+108.29%) from $5.55 per Share, representing the closing trade on June 30, 2023, to $11.56 per Share, representing the closing price on December 29, 2023. The Share price high and low for the six months ended December 31, 2023 and related change from the closing Share price on June 30, 2023 were as follows: Shares traded from a high of $11.78 per Share (+112.25%) on December 29, 2023 to a low of $4.48 per Share (-19.28%) on July 5, 2023.

Previous 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.

Current wording

For the six months ended December 31, 2023, the net asset value of each Share increased (+110.49%) from $5.53 per Share to $11.64 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 six months ended December 31, 2023.

Previous wording

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 wording

During the three months ended December 31, 2024, crude tanker spot rates experienced low volatility, with average spot rates for Very Large Crude Carriers (VLCC) declining considerably compared to last year. The unusual weakness during a historically strong period for tankers was rather surprising for market participants that were anticipating the usual seasonal strength. VLCC rates ended the year at the lowest point in three years.

Previous wording

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 wording

Geopolitical turmoil has greatly affected global shipping, as the Israel-Hamas conflict and the resulting ship attacks in the Red Sea passage did and may continue to rearrange 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.

Previous wording

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 wording

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 sometime in 2025, should, if implemented, increase demand for crude tankers.

Previous 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:

Current wording

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

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 wording

During the six months ended December 31, 2024, the NYSE Arca market value of each Share decreased (41.52%) from $16.79 per Share, representing the closing price on June 30, 2024, to $9.82 per Share, representing the closing price on December 31, 2024. The Share price high and low for the six months ended December 31, 2024 and related change from the closing Share price on June 30, 2024 were as follows: Shares traded from a high of $16.82 per Share (+0.18%) on July 22, 2024 to a low of $9.57 per Share (-43.00%) on December 11, 2024.

Previous wording

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 wording

For the six months ended December 31, 2024 the net asset value of each Share decreased (40.79%) from $16.69 per Share to $9.88 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 six months ended December 31, 2024.

Previous wording

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.

Current wording

During the six months ended December 31, 2023, the NYSE Arca market value of each Share decreased (-22.65%) from $20.88 per Share, representing the closing price on June 30, 2023, to $16.15 per Share, representing the closing price on December 29, 2023. The Share price high and low for the six months ended December 31, 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 $13.58 per Share (-34.96%) on October 6, 2023.

Previous 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.

Current wording

For the six months ended December 31, 2023, the net asset value of each Share decreased (-23.00%) from $20.83 per Share to $16.04 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 six months ended December 31, 2023.

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 $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.

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 $198,965 and $457,674, respectively, in interest income during the three months ended December 31, 2024 and 2023 and $473,381 and $995,384, respectively, in interest income during the six months ended December 31, 2024 and 2023. BWET earned $18,590 and $7,475, respectively, in interest income during the three months ended December 31, 2024 and 2023 and $45,020 and $13,881, respectively, in interest income during the six months ended December 31, 2024 and 2023.

Previous 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.

Current wording

The assumption of expenses by the Sponsor for BDRY, pursuant to the BDRY Expense Cap, amounted to $42,970 and $-0- for the three months ended December 31, 2024 and 2023, respectively, and $49,343 and $-0- for the six months ended December 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 $82,348 and $-0- for the three months ended December 31, 2024 and 2023, respectively, and $168,344 and $-0- for the six months ended December 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 $423,159 and $650,217 for the three months ended December 31, 2024 and 2023, respectively, and $847,608 and $1,351,888 for the six months ended December 31, 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 $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.

Current wording

The assumption of expenses by the Sponsor for BWET, pursuant to the BWET Expense Cap, amounted to $78,746 and $74,622 for the three months ended December 31, 2024 and 2023, respectively, and $143,851 and $160,731 for the six months ended December 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 $7,206 and $7,347 for the three months ended December 31, 2024 and 2023, respectively, and $26,129 and $20,130 for the six months ended December 31, 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 $111,714 and $108,527 for the three months ended December 31, 2024 and 2023, respectively, and $230,716 and $253,668 for the six months ended December 31, 2024 and 2023, respectively as disclosed in the Combined Statements of Operations.