Invesco DB US Dollar Index Bearish Fund Files 10-K for Fiscal Year Ended December 31, 2023

TL;DR

<b>Invesco DB US Dollar Index Bearish Fund (UDN) filed its 2023 10-K, detailing holdings in U.S. Treasury Bills and currency contracts.</b>

AI Summary

INVESCO DB US DOLLAR INDEX BEARISH FUND (UDN) filed a Annual Report (10-K) with the SEC on February 23, 2024. The Invesco DB US Dollar Index Bearish Fund (UDN) filed its 10-K report for the fiscal year ending December 31, 2023. The filing details the fund's holdings, including U.S. Treasury Bills with various maturity dates and interest rates. Specific holdings mentioned include U.S. Treasury Bills with a 5.245% due April 2, 2024, and 4.270% due March 9, 2023. The fund also holds currency contracts and investments in affiliated entities, such as Invesco Government and Agency Portfolio. The report covers financial data for the fiscal years ending December 31, 2023, 2022, and 2021.

Why It Matters

For investors and stakeholders tracking INVESCO DB US DOLLAR INDEX BEARISH FUND, this filing contains several important signals. This filing provides a comprehensive overview of the fund's investment strategy and asset allocation, crucial for investors tracking their exposure to the U.S. dollar. Understanding the specific holdings and their associated risks, such as interest rate sensitivity of Treasury Bills, is key for assessing the fund's performance and future outlook.

Risk Assessment

Risk Level: medium — INVESCO DB US DOLLAR INDEX BEARISH FUND shows moderate risk based on this filing. The fund's performance is directly tied to the U.S. Dollar Index, making it susceptible to fluctuations in currency markets and U.S. monetary policy, as indicated by its bearish strategy.

Analyst Insight

Investors should review the specific Treasury Bill holdings and their maturity dates to understand the fund's sensitivity to interest rate changes and its overall bearish stance on the dollar.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-23 — Filing Date (Date the report was filed)
• 5.245% — Interest Rate (U.S. Treasury Bills due April 2, 2024)
• 4.270% — Interest Rate (U.S. Treasury Bills due March 9, 2023)

Key Players & Entities

• INVESCO DB US DOLLAR INDEX BEARISH FUND (company) — Filer name
• UDN (company) — Ticker symbol
• Invesco DB US Dollar Index Trust (company) — Related entity name
• US Dollar Index (company) — Index tracked by the fund
• U.S. Treasury Bills (company) — Type of security held

FAQ

Risk Factors

• Market Risk [high — market]: The fund's performance is directly linked to the U.S. Dollar Index, exposing it to significant volatility based on global economic factors and currency fluctuations.
• Interest Rate Risk [medium — financial]: Holdings in U.S. Treasury Bills are subject to interest rate risk, where their value can decline if interest rates rise.
• Regulatory Changes [low — regulatory]: Changes in financial regulations could impact the fund's operations and investment strategies.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-23: Filing Date — Date the 10-K was officially submitted to the SEC.

Glossary

U.S. Dollar Index

A measure of the value of the U.S. dollar relative to a basket of foreign currencies. (The fund's performance is directly benchmarked against this index.)

Key Financial Figures

• $5 — to the Commodity Broker were less than $5.00, $5.00 and $5.00 per round-turn trad
• $5.00 — Commodity Broker were less than $5.00, $5.00 and $5.00 per round-turn trade 1 for th

Filing Documents

• udn-20231231.htm (10-K) — 1749KB
• udn-ex23_1.htm (EX-23.1) — 3KB
• udn-ex31_1.htm (EX-31.1) — 13KB
• udn-ex31_2.htm (EX-31.2) — 12KB
• udn-ex31_3.htm (EX-31.3) — 13KB
• udn-ex31_4.htm (EX-31.4) — 12KB
• udn-ex32_1.htm (EX-32.1) — 9KB
• udn-ex32_2.htm (EX-32.2) — 9KB
• udn-ex32_3.htm (EX-32.3) — 9KB
• udn-ex32_4.htm (EX-32.4) — 9KB
• udn-ex97_1.htm (EX-97.1) — 49KB
• img41577484_0.jpg (GRAPHIC) — 173KB
• img41577484_1.jpg (GRAPHIC) — 173KB
• 0000950170-24-019053.txt (&nbsp;) — 6569KB
• udn-20231231.xsd (EX-101.SCH) — 640KB
• udn-20231231_htm.xml (XML) — 923KB

BUSINESS

BUSINESS 1 ITEM 1A.

RISK FACTORS

RISK FACTORS 6 ITEM 1B. UNRESOLVED STAFF COMMENTS 21 ITEM 1C. CYBERSECURITY 21 ITEM 2.

PROPERTIES

PROPERTIES 22 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 22 ITEM 4. MINE SAFETY DISCLOSURES 22 PART II 23 ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 23 ITEM 6. RESERVED 23 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 24 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 31 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 34 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 56 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 56 ITEM 9B. OTHER INFORMATION 56 ITEM 9C DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 56 PART III 57 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 57 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 59 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 60 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 60 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 60 PART IV 61 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 61 i CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING INFORMATION This Annual Report on Form 10-K (this "Report") includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), that involve substantial risks and uncertainties. The matters discussed throughout this Report that are not historical facts are forward-looking statements. These forward-looking statements are based on the Invesco DB US Dollar Index Bearish Fund's (the "Fund") and Invesco Capital Management LLC's (the "Managing Owner") current expectations, estimates and projections about the future results, performance, prospects and opportunities of the Fund and the Fund's business and industry and their beliefs and assumptions about future events and speak only as of the date on which they are made. Words such as "anticipate," "expect," "intend," "plan," "believe," "seek," "outlook" and "estimate," as well as similar words and phrases, signify forward-looking statements. Forward-looking statements are not guarantees of future results. Future economic and industry trends that could potentially impact the Fund and its performance are difficult to predict. Conditions, risks and uncertainties in the markets for financial instruments that the Fund trades, in the markets for related physical commodities, in the legal and regulatory regimes applicable to the Managing Owner, the Fund, and the Fund's service providers in the broader economy and in global politics may cause actual results to differ materially from those expressed by su

B USINESS

ITEM 1. B USINESS Introduction Invesco DB US Dollar Index Bearish Fund (the "Fund"), a separate series of Invesco DB US Dollar Index Trust (the "Trust") was formed as a Delaware statutory trust on August 3, 2006. The term of the Fund is perpetual (unless terminated earlier in certain circumstances) as provided for in the Fifth Amended and Restated Declaration of Trust and Trust Agreement of the Trust, as amended (the "Trust Agreement"). The Fund has an unlimited number of shares authorized for issuance. Invesco Capital Management LLC has served as the managing owner (the "Managing Owner"), commodity pool operator and commodity trading advisor of the Trust and the Fund since February 23, 2015. The Managing Owner holds 40 general shares (the "General Shares") of the Fund. The fiscal year end of the Fund is December 31 st . The Fund establishes short positions in certain futures contracts (the "DX Contracts") with a view to tracking the changes, whether positive or negative, in the level of the Deutsche Bank Short USD Currency Portfolio Index–Excess Return TM (the "Index") over time. The Index was renamed effective January 17, 2017. Prior to January 17, 2017, the Index was known as the Deutsche Bank Short US Dollar Index (USDX) Futures Index–Excess Return TM . The Index, as renamed, is identical to the Index prior to its name change on January 17, 2017. The performance of the Fund also is intended to reflect the excess, if any, of the sum of the Fund's interest income from its holdings of United States Treasury Obligations ("Treasury Income"), dividends from its holdings in money market mutual funds (affiliated or otherwise) ("Money Market Income") and dividends or distributions of capital gains from its holdings of T-Bill ETFs (as defined below) ("T-Bill ETF Income") over the expenses of the Fund. The Fund may invest directly in United States Treasury Obligations. The Fund may also gain exposure to United States Treasury Obligations through investments in ex

View Full Filing

View this 10-K filing on SEC EDGAR