Invesco DB US Dollar Index Bullish Fund Files 2023 Annual Report

TL;DR

<b>The Invesco DB US Dollar Index Bullish Fund (UUP) filed its 2023 10-K, detailing its holdings in U.S. Dollar Index futures and U.S. Treasury Bills.</b>

AI Summary

Invesco DB US Dollar Index Bullish Fund (UUP) filed a Annual Report (10-K) with the SEC on February 23, 2024. The fund holds ICE U.S. Dollar Index futures contracts, with expirations in March 2023 and March 2024. Investments include U.S. Treasury Bills with varying interest rates and maturity dates, such as 4.270% due March 9, 2023, and 5.240% due May 30, 2024. The fund's investments are valued using Level 1 and Level 2 inputs, indicating a reliance on observable market data. Affiliated investments include holdings in Invesco Government and Agency Portfolio Institutional Class. The filing covers the fiscal year ending December 31, 2023.

Why It Matters

For investors and stakeholders tracking Invesco DB US Dollar Index Bullish Fund, this filing contains several important signals. This filing provides a comprehensive overview of the fund's assets and strategies for the past fiscal year, crucial for investors tracking dollar-denominated assets. Understanding the fund's exposure to currency futures and short-term U.S. debt offers insight into its performance drivers and risk profile.

Risk Assessment

Risk Level: medium — Invesco DB US Dollar Index Bullish Fund shows moderate risk based on this filing. The fund's performance is directly tied to the strength of the U.S. Dollar, making it susceptible to fluctuations in currency markets and global economic conditions.

Analyst Insight

Investors bullish on the U.S. Dollar may consider UUP for direct exposure, while those anticipating dollar weakness should look elsewhere.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-23 — Filing Date (Date of submission)
• March-2023 — Futures Expiration (ICE U.S. Dollar Index futures)
• March-2024 — Futures Expiration (ICE U.S. Dollar Index futures)
• 4.270% — Treasury Bill Rate (U.S. Treasury Bill, Due March 9, 2023)
• 5.240% — Treasury Bill Rate (U.S. Treasury Bill, Due May 30, 2024)

Key Players & Entities

• Invesco DB US Dollar Index Bullish Fund (company) — Filer name
• UUP (company) — Ticker symbol
• ICE U.S. Dollar Index (company) — Index tracked by futures contracts
• Invesco DB US Dollar Index Trust (company) — Related entity
• PowerShares DB US Dollar Index Bullish Fund (company) — Former company name
• PowerShares DB US Dollar Index Trust (company) — Former company name
• Invesco Government and Agency Portfolio Institutional Class (company) — Affiliated investment

FAQ

Risk Factors

• Market Risk [high — market]: The value of the Fund's investments may fluctuate based on changes in the value of the U.S. Dollar relative to other currencies.
• Interest Rate Risk [medium — financial]: The value of the Fund's U.S. Treasury Bills will be affected by changes in interest rates.
• Counterparty Risk [medium — operational]: The Fund is subject to the risk that a counterparty to its derivative contracts may default.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.

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

• uup-20231231.htm (10-K) — 1846KB
• uup-ex23_1.htm (EX-23.1) — 3KB
• uup-ex31_1.htm (EX-31.1) — 12KB
• uup-ex31_2.htm (EX-31.2) — 12KB
• uup-ex31_3.htm (EX-31.3) — 12KB
• uup-ex31_4.htm (EX-31.4) — 12KB
• uup-ex32_1.htm (EX-32.1) — 9KB
• uup-ex32_2.htm (EX-32.2) — 9KB
• uup-ex32_3.htm (EX-32.3) — 9KB
• uup-ex32_4.htm (EX-32.4) — 9KB
• uup-ex97.htm (EX-97) — 35KB
• img238890267_0.jpg (GRAPHIC) — 174KB
• img238890267_1.jpg (GRAPHIC) — 153KB
• 0000950170-24-019064.txt (&nbsp;) — 6922KB
• uup-20231231.xsd (EX-101.SCH) — 636KB
• uup-20231231_htm.xml (XML) — 1052KB

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 60 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 60 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 Invesco DB US Dollar Index Bullish 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 such f

B USINESS

ITEM 1. B USINESS. Introduction Invesco DB US Dollar Index Bullish 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 31st. The Fund establishes long 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 Long 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 Long 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 exc

View Full Filing

View this 10-K filing on SEC EDGAR