424B3 1 d157312d424b3.htm SUPPLEMENT Supplement

Filed Pursuant to Rule 424(b)(3)
Registration Nos. 333-208439
333-208439-01

POWERSHARES DB MULTI-SECTOR COMMODITY TRUST

POWERSHARES DB AGRICULTURE FUND

SUPPLEMENT DATED MARCH 24, 2016 TO

PROSPECTUS DATED DECEMBER 10, 2015

This Supplement updates certain information contained in the Prospectus dated December 10, 2015, as supplemented from time-to-time (the “Prospectus”), of PowerShares DB Multi-Sector Commodity Trust (the “Trust”) and PowerShares DB Agriculture Fund (the “Fund”). All capitalized terms used in this Supplement have the same meaning as in the Prospectus.

Prospective investors in the Funds should review carefully the contents of both this Supplement and the Prospectus.

* * * * * * * * * * * * * * * * * * *

All information in the Prospectus is restated pursuant to this Supplement, except as updated hereby.

 

 

Neither the Securities and Exchange Commission nor any state securities commission

has approved or disapproved of these securities or determined if this Supplement or the related Prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

 

 

THE COMMODITY FUTURES TRADING COMMISSION HAS NOT PASSED UPON THE MERITS OF PARTICIPATING IN THIS POOL NOR HAS THE COMMISSION PASSED UPON THE ADEQUACY OR ACCURACY OF THIS DISCLOSURE DOCUMENT.

 

 

Invesco PowerShares Capital Management LLC

Managing Owner

P-DBA-PRO-1-SUP-1 032416

  I.

The initial 4 paragraphs under the sub-heading “Principals” on pages 75 and 76 of the Prospectus are hereby deleted and replaced, in their entirety, by the following:

“The following principals serve in the below capacities on behalf of the Managing Owner:

 

Name

    Age     

Position

Daniel Draper

      47       Chief Executive Officer, Board of Managers

Peter Hubbard

      34       Vice President and Director of Portfolio Management

David Warren

      58       Chief Administrative Officer, Board of Managers

Roderick Ellis

      48       Principal

Steven Hill

      51       Principal Financial and Accounting Officer, Investment Pools

Christopher Joe

      46       Chief Compliance Officer

John Zerr

      53       Board of Managers

Invesco North American Holdings Inc. is also a principal of the Managing Owner.

The Managing Owner is managed by a Board of Managers. The Board of Managers is composed of Messrs. Draper, Warren and Zerr.”

 

  II.

The biography of Andrew Schlossberg set forth on page 76 is hereby deleted, in its entirety.

 

  III.

The biographies of Daniel Draper, Peter Hubbard, David Warren, Roderick Ellis, Steven Hill, Christopher Joe and John Zerr set forth on pages 76 and 77 of the Prospectus are hereby deleted and replaced, in their entirety, with the following:

“Daniel Draper (47) has been Chief Executive Officer of the Managing Owner since March 24, 2016. In this role, he has general oversight responsibilities for all of the Managing Owner’s business. Mr. Draper has been a Member of the Board of Managers of the Managing Owner since September 2013. In this role he is responsible for the management of the Managing Owner’s exchange traded fund business with direct functional reporting responsibilities for the Managing Owner’s portfolio management, products, marketing and capital markets teams. In such capacity, Mr. Draper also is responsible for managing the operations of the Invesco Funds. Previously, Mr. Draper was the Global Head of Exchange Traded Funds for Credit Suisse Asset Management, or Credit Suisse, based in London from March 2010 until June 2013, followed by a three month non-compete period pursuant to his employment terms with Credit Suisse. Credit Suisse is an asset management business of Credit Suisse Group, a financial services company. From January 2007 to March 2010, he was the Global Head of Exchange Traded Funds for Lyxor Asset Management in London, an investment management business unit of Societe Generale Corporate & Investment Banking. Mr. Draper was previously registered as a Significant Influence Functions (SIF) person with the UK’s Financial Conduct Authority. He withdrew this status on June 30, 2013 when he left Credit Suisse. Mr. Draper received his MBA from the Kenan-Flagler Business School at the University of North Carolina at Chapel Hill and his BA from the College of William and Mary in Virginia. Mr. Draper is currently registered with FINRA and holds the Series 7, 24 and 63 registrations. Mr. Draper was listed as a principal of the Managing Owner on December 16, 2013.

Peter Hubbard (34) joined the Managing Owner in May 2005 as a portfolio manager and has been Vice President, Director of Portfolio Management since September 2012. In his role, Mr. Hubbard manages a team of 12 portfolio managers. His responsibilities include facilitating all portfolio management processes associated with more than 150 equity and fixed income Invesco Funds listed in the United States, Canada and Europe. He is a graduate of Wheaton College with a B.A. degree in Business & Economics. Mr. Hubbard was listed as a principal and registered as an associated person of the Managing Owner on November 15, 2012 and January 1, 2013, respectively. Mr. Hubbard was registered as a swap associated person of the Managing Owner effective as of September 8, 2015.

 

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David Warren (58) is Chief Administrative Officer, Americas, for Invesco Ltd., a global investment management company affiliated with the Managing Owner. He was appointed to this position in January 2007, and also holds the roles of Director, Executive Vice President and Chief Financial Officer of Invesco Canada Ltd., a Canadian investment management subsidiary of Invesco Ltd., since January 2009. He has been a Member of the Board of Managers and Chief Administrative Officer of the Managing Owner since January 2010, as well. In these capacities, Mr. Warren is responsible for general management support, in addition to executing on various strategic initiatives and overseeing the risk management framework for the business units operating within the Americas division of Invesco Ltd. He obtained a Bachelor’s Degree in Commerce from the University of Toronto and is a member of the Chartered Professional Accountants of Canada. Mr. Warren was listed as a principal of the Managing Owner on November 21, 2012.

Roderick Ellis (48) has been a Chief Accounting Officer for Invesco Ltd. since April 2011. In this role, he is responsible for all aspects of Corporate Accounting including group financial reporting, internal controls and group accounting policies. Mr. Ellis is also responsible for group insurance matters. Previously, Mr. Ellis was Global Director of Financial Planning and Analysis, and Treasurer since May 2007. Mr. Ellis earned a B.A. (with honors) in Economics and Social History from the University of Sheffield, UK, in 1988. He is a member of the Institute of Chartered Accountants in England and Wales. Mr. Ellis was listed as a principal of the Managing Owner on November 30, 2012.

Steven Hill (51) has been Principal Financial and Accounting Officer, Investment Pools for the Managing Owner since December 2012, and was Head of Global ETF Operations from September 2011 to December 2012. As Principal Financial and Accounting Officer, Investment Pools, he has financial and administrative oversight responsibilities for, and serves as Principal Financial Officer of, the Invesco Funds, including the Fund. As Head of Global ETF Operations he had management responsibilities with regard to the general operations of the Managing Owner. From October 2010 to August 2011, he was Senior Managing Director and Chief Financial Officer of Destra Capital Management LLC and its subsidiaries, or Destra, an asset management firm, and was responsible for managing financial and administrative activities as well as financial reporting for Destra and investment funds sponsored by Destra. Previously, he was Senior Managing Director of Claymore Securities, Inc., or Claymore, from December 2003 to October 2010, and was responsible for managing financial and administrative oversight for investment funds sponsored by Claymore. Claymore, now known as Guggenheim Funds Distributors, Inc., is a registered broker-dealer that distributes investment funds. Mr. Hill earned a BS in Accounting from North Central College, Naperville, IL. Mr. Hill was listed as a principal of the Managing Owner on February 12, 2015.

Christopher Joe (46) has been Chief Compliance Officer of the Managing Owner since September 1, 2015. In his role as Chief Compliance Officer he is responsible for all aspects of regulatory compliance for the Managing Owner. He has also acted as U.S. Compliance Director for Invesco, Ltd. since November, 2006. Formerly, he served as Chief Compliance Officer of Invesco Investment Advisers, LLC, a registered investment adviser affiliated with the Managing Owner from June, 2010 to March, 2013. He also served as Deputy Chief Compliance Officer of Invesco Adviser, Inc., a registered investment adviser affiliated with the Managing Owner, from November, 2014 to September, 2015. Mr. Joe has also served as a principal of the Managing Owner since September 25, 2015.

John Zerr (53) has been a Member of the Board of Managers of the Managing Owner since September 2006. Mr. Zerr is also Managing Director and General Counsel — US Retail of Invesco Management Group, Inc., a registered investment adviser affiliated with the Managing Owner, since March 2006, where he is responsible for overseeing the US Retail Legal Department for Invesco Ltd. and its affiliated companies. Mr. Zerr has also been a Senior Vice President and Secretary of IDI since March 2006 and June 2006, respectively. He also served as a Director of that entity until February 2010. Mr. Zerr has served as Senior Vice President of Invesco Advisers, Inc., a registered investment adviser affiliated with the Managing Owner, since December 2009. Mr. Zerr serves as a Director, Vice President and Secretary of Invesco Investment Services, Inc., a registered transfer agency since May 2007. Mr. Zerr has served as Director, Senior Vice President,

 

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General Counsel and Secretary of a number of other Invesco Ltd. wholly-owned subsidiaries which service or serviced portions of Invesco Ltd.’s US Retail business since May 2007 and since June 2010 with respect to certain Van Kampen entities engaged in the asset management business that were acquired by Invesco Ltd. from Morgan Stanley. In each of the foregoing positions Mr. Zerr is responsible for overseeing legal operations. In such capacity, Mr. Zerr also is responsible for overseeing the legal activities of the Invesco Funds. Mr. Zerr earned a BA degree in economics from Ursinus College. He graduated cum laude with a J.D. from Temple University School of Law. Mr. Zerr was listed as a principal of the Managing Owner on December 6, 2012.”

 

  IV.

Pages 32 through 33 of the Prospectus are hereby deleted and replaced, in their entirety, with the following:

PERFORMANCE OF POWERSHARES DB AGRICULTURE FUND (TICKER: DBA), A SERIES OF POWERSHARES DB MULTI-SECTOR COMMODITY TRUST

Name of Pool: PowerShares DB Agriculture Fund

Type of Pool: Public, Exchange-Listed Commodity Pool

Inception of Trading: January 2007

Aggregate Gross Capital Subscriptions as of December 31, 2015: $9,232,744,028

Net Asset Value as of December 31, 2015: $673,878,627

Net Asset Value per Share as of December 31, 2015: $20.67

Worst Monthly Drawdown: (12.22)% September 2011

Worst Peak-to-Valley Drawdown: (49.82)% February 2008 – November 2015*

 

Monthly Rate of Return

    2015(%)    2014(%)    2013(%)    2012(%)    2011(%)

January

    (6.77)    1.61    (0.39)    0.52    5.93

February

    (0.43)    10.86    (5.24)    1.00    1.69

March

    (3.99)    3.66    (1.82)    (3.90)    (1.86)

April

    0.59    3.28    0.96    (2.95)    (0.12)

May

    (1.98)    (5.33)    (2.33)    (4.36)    (4.24)

June

    7.10    (0.90)    (2.62)    7.86    (2.23)

July

    (8.09)    (2.29)    (1.04)    7.07    0.97

August

    (2.79)    (1.48)    1.83    0.83    5.57

September

    0.10    (3.42)    0.96    (2.93)    (12.22)

October

    1.67    0.57    (0.91)    (1.80)    1.90

November

    (3.48)    (0.55)    (0.96)    (0.38)    (5.11)

December

    0.78    (2.81)    (2.29)    (3.05)    (0.48)

Compound Rate of Return

    (16.75)    2.24    (13.19)    (2.92)    (11.00)

* The Worst Peak-to-Valley Drawdown from February 2008 – November 2015 includes the effect of the $0.45 per Share distribution made to Shareholders of record as of December 17, 2008. Prior to October 19, 2009, the Fund sought to track the Deutsche Bank Liquid Commodity Index-Optimum Yield Agriculture Excess Return™. From October 19, 2009 to December 31, 2010, the Fund sought to track the Deutsche Bank Liquid Commodity Index Diversified Agriculture Index Excess Return™. Since December 31, 2010, the Fund seeks to track the DBIQ Diversified Agriculture Index ER. The only difference between the Deutsche Bank Liquid Commodity Index Diversified Agriculture Index Excess Return™ and the DBIQ Diversified Agriculture Index ER is a name change.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

See accompanying Footnotes to Performance Information.

Footnotes to Performance Information

1.  “Aggregate Gross Capital Subscriptions” is the aggregate of all amounts ever contributed to the pool, including investors who subsequently redeemed their investments.

 

4

2.  “Net Asset Value” is the net asset value of the pool as of December 31, 2015

3.  “Net Asset Value per Share” is the Net Asset Value of the pool divided by the total number of Shares outstanding with respect to the pool as of December 31, 2015

4.  “Worst Monthly Drawdown” is the largest single month loss sustained during the last five years and year to date. “Drawdown” as used in this section of the Prospectus means losses experienced by the pool over the specified period and is calculated on a rate of return basis, i.e., dividing net performance by beginning equity. “Drawdown” is measured on the basis of monthly returns only, and does not reflect intra-month figures. “Month” is the month of the Worst Monthly Drawdown.

5.  “Worst Peak-to-Valley Drawdown” is the largest percentage decline in the Net Asset Value per Share during the most recent five calendar years (and to the extent applicable, for a period beyond the most recent five calendar years if the starting date of the peak value extends beyond this period). This need not be a continuous decline, but can be a series of positive and negative returns where the negative returns are larger than the positive returns. “Worst Peak-to-Valley Drawdown” represents the greatest percentage decline from any month-end Net Asset Value per Share that occurs without such month-end Net Asset Value per Share being equaled or exceeded as of a subsequent month-end. For example, if the Net Asset Value per Share of the pool declined by $1 in each of January and February, increased by $1 in March and declined again by $2 in April, a “peak-to-valley drawdown” analysis conducted as of the end of April would consider that “drawdown” to be still continuing and to be $3 in amount, whereas if the Net Asset Value per Share had increased by $2 in March, the January-February drawdown would have ended as of the end of February at the $2 level.

6.  “Compound Rate of Return” of the pool is calculated by multiplying on a compound basis each of the monthly rates of return set forth in the chart above and not by adding or averaging such monthly rates of return. For periods of less than one year, the results are year-to-date.

THE FUND’S PERFORMANCE INFORMATION FROM INCEPTION UP TO AND INCLUDING FEBRUARY 23, 2015 IS A REFLECTION OF THE PERFORMANCE ASSOCIATED WITH DB COMMODITY SERVICES LLC, WHICH SERVED AS THE PREDECESSOR MANAGING OWNER. ALL THE PERFORMANCE INFORMATION ON AND AFTER FEBRUARY 23, 2015 REFLECTS THE PERFORMANCE ASSOCIATED WITH THE MANAGING OWNER.

 

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[Remainder of page left blank intentionally.]

 

 

 

 

6

  IV.

Pages 44 through 57 of the Prospectus is hereby deleted and replaced, in its entirety, with the following:

“Volatility of the Index

The following table reflects various measures of volatility1 of the history of the Index as calculated on an excess return basis:

 

Volatility Type

    DBIQ Diversified
Agriculture Index
Excess Return™		  

Daily volatility over full history

      12.62 % 

Average rolling 3 month daily volatility

      11.88 % 

Monthly return volatility

      12.76 % 

Average annual volatility

      10.10 % 

The following table reflects the daily volatility on an annual basis of the Index:

 

                Year                          DBIQ Diversified
Agriculture Index
Excess Return™		  
19892        8.35 % 
1990        7.92 % 
1991        7.85 % 
1992        6.93 % 
1993        8.24 % 
1994        12.80 % 
1995        6.78 % 
1996        7.80 % 
1997        11.19 % 
1998        8.06 % 
1999        10.74 % 
2000        8.87 % 
2001        8.38 % 
2002        9.51 % 
2003        8.37 % 
2004        11.01 % 
2005        9.40 % 
2006        9.57 % 
2007        9.36 % 
2008        21.09 % 
2009        15.60 % 
2010        13.55 % 
2011        13.07 % 
2012        10.41 % 
2013        6.92 % 
2014        9.26 % 
20153        11.66 % 

1Volatility, for these purposes, means the following:

Daily Volatility: The relative rate at which the price of the Index moves up and down, found by calculating the annualized standard deviation of the daily change in price.

 

7

Monthly Return Volatility: The relative rate at which the price of the Index moves up and down, found by calculating the annualized standard deviation of the monthly change in price.

Average Annual Volatility: The average of yearly volatilities for a given sample period. The yearly volatility is the relative rate at which the price of the Index moves up and down, found by calculating the annualized standard deviation of the daily change in price for each business day in the given year.

2As of January 18, 1989.

3As of December 31, 2015.

Past Index levels are not necessarily indicative of future Index levels.

The Fund tracked the Deutsche Bank Liquid Commodity Index Diversified Agriculture Excess Return™ up to and including December 31, 2010. The Fund has tracked the DBIQ Diversified Agriculture Index Excess Return™ since December 31, 2010. The only difference between the Deutsche Bank Liquid Commodity Index Diversified Agriculture Excess Return™ and the DBIQ Diversified Agriculture Index Excess Return™ is a name change.

 

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CLOSING LEVELS TABLES

DBIQ DIVERSIFIED AGRICULTURE INDEX EXCESS RETURN™*

 

     CLOSING LEVEL    INDEX CHANGES
     High1    Low2    Annual3    Inception4

19895

  

106.21

      93.13      -3.76%      -3.76%

1990

  

109.76

      93.55      -2.79%      -6.45%

1991

  

  98.56

      87.18      -1.67%      -8.01%

1992

  

  93.91

      84.75      -4.28%    -11.95%

1993

  

  94.15

      84.61       5.93%      -6.73%

1994

  

112.01

      90.78     12.43%       4.86%

1995

  

111.80

      99.83       5.05%     10.16%

1996

  

127.26

    108.40       6.19%     16.98%

1997

  

146.63

    116.98     10.46%     29.22%

1998

  

130.61

      94.76    -25.65%      -3.92%

1999

  

  99.66

      77.22    -13.58%    -16.97%

2000

  

  85.25

      75.94      -6.33%    -22.22%

2001

  

  80.19

      66.48    -11.33%    -31.04%

2002

  

  80.12

      64.94       9.63%    -24.40%

2003

  

  84.27

      72.22       5.72%    -20.08%

2004

  

  92.94

      79.92       7.93%    -13.74%

2005

  

  95.26

      81.72       3.68%    -10.56%

2006

  

  93.91

      82.42       3.47%      -7.45%

2007

  

102.50

      88.80    10.46%       2.23%

2008

  

123.53

      71.21    -19.22%    -17.42%

2009

  

  87.40

      72.91       4.18%    -13.97%

2010

  

105.23

      74.69     22.32%       5.23%

2011

  

114.93

      90.14    -10.68%      -6.01%

2012

  

100.65

      84.22      -2.14%      -8.02%

2013

  

  92.12

      80.70    -12.26%    -19.30%

2014

  

  97.66

      80.26       3.30%    -16.63%

20156

  

  84.35

      68.34    -15.86%    -29.86%

THE FUND WILL TRADE WITH A VIEW TO TRACKING THE DBIQ DIVERSIFIED AGRICULTURE INDEX EXCESS RETURN™ OVER TIME.

NEITHER THE PAST PERFORMANCE OF THE FUND NOR THE PRIOR INDEX LEVELS AND CHANGES,

POSITIVE AND NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE FUND’S FUTURE PERFORMANCE.

The Fund tracked the Deutsche Bank Liquid Commodity Index Diversified Agriculture Excess Return™ up to and including December 31, 2010. The Fund has tracked the DBIQ Diversified Agriculture Index Excess Return™ since December 31, 2010. The only difference between the Deutsche Bank Liquid Commodity Index Diversified Agriculture Excess Return™ and the DBIQ Diversified Agriculture Index Excess Return™ is a name change.

See accompanying Notes and Legends.

[Remainder of page left blank intentionally.]

 

9

DBIQ DIVERSIFIED AGRICULTURE INDEX TOTAL RETURN™

 

     CLOSING LEVEL   INDEX CHANGES
     High1   Low2   Annual3   Inception4

19895

   107.66     98.26      4.13%       4.13%

1990

   122.64   103.97      4.94%       9.27%

1991

   116.41   105.67      3.86%     13.49%

1992

   116.36   107.38     -0.87%     12.50%

1993

   123.83   108.46       9.21%     22.86%

1994

   150.59   120.79     17.40%     44.24%

1995

   161.94   140.22     11.11%     60.26%

1996

   189.53   158.05     11.77%     79.12%

1997

   229.29   179.14     16.30%   108.31%

1998

   211.30   160.18   -21.94%     62.61%

1999

   168.89   133.88     -9.40%     47.32%

2000

   154.70   141.66     -0.59%     46.45%

2001

   152.05   129.07     -8.20%     34.44%

2002

   158.33   127.33    11.44%     49.82%

2003

   168.63   143.96      6.81%     60.02%

2004

   186.83   160.03      9.43%     75.12%

2005

   194.37   169.54      7.04%     87.45%

2006

   203.52   178.87      8.57%   103.52%

2007

   235.57   196.35    15.48%   135.02%

2008

   285.15   166.00   -18.09%     92.50%

2009

   204.74   177.70       4.91%   101.95%

2010

   245.99   175.42     21.80%   145.99%

2011

   268.73   210.82   -10.64%   119.81%

2012

   235.53   197.03     -2.06%   115.29%

2013

   215.61   189.01   -12.21%     89.01%

2014

   228.74   187.97      3.33%     95.30%

20156

   197.61   160.15   -15.82%     64.40%

THE FUND WILL NOT TRADE WITH A VIEW TO TRACKING

THE DBIQ DIVERSIFIED AGRICULTURE INDEX TOTAL RETURN™ OVER TIME.

NEITHER THE PAST PERFORMANCE OF THE FUND NOR THE PRIOR INDEX LEVELS AND CHANGES,

POSITIVE AND NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE FUND’S FUTURE PERFORMANCE.

The Fund tracked the Deutsche Bank Liquid Commodity Index Diversified Agriculture Excess Return™ up to and including December 31, 2010. The Fund has tracked the DBIQ Diversified Agriculture Index Excess Return™ since December 31, 2010. The only difference between the Deutsche Bank Liquid Commodity Index Diversified Agriculture Excess Return™ and the DBIQ Diversified Agriculture Index Excess Return™ is a name change.

See accompanying Notes and Legends.

[Remainder of page left blank intentionally.]

 

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INDEX COMMODITIES WEIGHTS TABLES

DBIQ DIVERSIFIED AGRICULTURE INDEX EXCESS RETURN™*

 

     C7   S7   W7   KCW7
  High1   Low2   High1   Low2   High1   Low2   High1   Low2

19895

   12.0%   11.7%   12.1%   10.7%   6.1%   6.3%   6.3%   6.5%

1990

   12.8%   12.7%   11.7%   12.6%   5.0%   5.9%   5.1%   5.9%

1991

   12.8%   12.9%   12.4%   12.1%   5.9%   6.2%   6.0%   6.5%

1992

   13.1%   11.3%   12.9%   12.7%   8.2%   7.1%   8.0%   7.0%

1993

   12.7%   12.8%   12.4%   12.9%   6.3%   6.3%   6.4%   6.3%

1994

     9.0%   12.3%   9.4%   12.4%   5.3%   6.3%   5.5%   6.4%

1995

   15.3%   13.7%   12.8%   12.5%   7.2%   6.3%   8.0%   6.8%

1996

   14.1%   13.1%   12.8%   13.6%   7.4%   6.2%   8.3%   6.4%

1997

     9.2%   11.8%   10.2%   12.3%   5.0%   6.3%   5.5%   6.2%

1998

   12.5%   13.1%   12.0%   12.9%   5.9%   6.1%   6.0%   6.5%

1999

   12.5%   12.9%   12.2%   11.7%   6.0%   6.0%   6.2%   6.3%

2000

   13.2%   12.5%   13.6%   12.5%   6.0%   6.2%   6.0%   6.2%

2001

   11.8%   11.7%   11.4%   12.2%   6.2%   6.2%   6.0%   5.5%

2002

   11.1%   11.7%   12.7%   13.2%   5.9%   5.8%   6.3%   5.9%

2003

   12.4%   11.7%   12.9%   13.8%   6.3%   6.6%   6.3%   5.8%

2004

   14.6%   13.1%   13.9%   14.0%   6.0%   6.6%   6.1%   6.5%

2005

   11.3%   10.9%   13.2%   13.6%   6.2%   6.2%   5.8%   6.1%

2006

   12.0%   13.4%   11.6%   11.4%   6.2%   7.1%   6.5%   8.2%

2007

   12.7%   12.1%   13.5%   14.7%   6.8%   7.4%   6.9%   7.1%

2008

   12.3%   10.9%   14.0%   11.5%   8.1%   6.1%   8.3%   6.1%

2009

   11.8%   11.5%   12.6%   11.1%   6.7%   6.2%   6.9%   6.3%

2010

   12.0%   11.4%   12.7%   12.9%   6.1%   5.4%   6.2%   5.8%

2011

   12.0%   12.3%   12.1%   13.0%   5.7%   6.0%   6.1%   5.9%

2012

   15.8%   12.3%   17.6%   15.2%   6.8%   6.3%   6.7%   6.2%

2013

   11.9%   12.3%   12.4%   12.5%   5.5%   5.9%   5.7%   5.8%

2014

   11.6%   12.1%   11.4%   12.2%   5.7%   5.7%   6.0%   5.8%

20156

   13.0%   12.7%   12.8%   13.0%   7.0%   6.2%   6.9%   6.2%

THE FUND WILL TRADE WITH A VIEW TO TRACKING THE

DBIQ DIVERSIFIED AGRICULTURE INDEX EXCESS RETURN™ OVER TIME.

NEITHER THE PAST PERFORMANCE OF THE FUND NOR THE PRIOR INDEX LEVELS AND CHANGES,

POSITIVE AND NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE FUND’S FUTURE PERFORMANCE.

LEGEND:

 

Symbol    Index Commodity    Symbol    Index Commodity

C

    Corn    KC    Coffee

S

    Soybeans    CT    Cotton

W

    Wheat    LC    Live Cattle

KCW

    Kansas City Wheat    FC    Feeder Cattle

SB

    Sugar    LH    Lean Hogs

CC

    Cocoa          

The Fund tracked the Deutsche Bank Liquid Commodity Index Diversified Agriculture Excess Return™ up to and including December 31, 2010. The Fund has tracked the DBIQ Diversified Agriculture Index Excess Return™ since December 31, 2010. The only difference between the Deutsche Bank Liquid Commodity Index Diversified Agriculture Excess Return™ and the DBIQ Diversified Agriculture Index Excess Return™ is a name change.

See accompanying Notes and Legends.

[Remainder of page left blank intentionally.]

 

11

INDEX COMMODITIES WEIGHTS TABLES

DBIQ DIVERSIFIED AGRICULTURE INDEX EXCESS RETURN™*

 

     SB7   CC7   KC7   CT7
  High1   Low2   High1   Low2   High1   Low2   High1   Low2
19895   14.8%   17.4%   12.2%   10.0%   10.2%     7.7%   2.6%   3.5%
1990   11.5%   12.2%   14.1%   10.6%   11.6%   11.1%   2.5%   3.0%
1991   11.7%   12.3%   10.3%     8.7%   11.1%     9.8%   3.1%   3.3%
1992   11.5%   15.1%     9.7%     7.9%     9.1%     7.0%   2.4%   2.5%
1993   12.4%   11.7%   12.0%     9.7%   11.0%   10.1%   2.9%   3.1%
1994   11.2%   12.6%   11.1%   10.6%   27.4%   11.4%   2.9%   3.8%
1995   12.4%   11.7%     9.6%   10.5%     6.4%     9.8%   4.4%   4.2%
1996   13.4%   13.0%     9.5%   10.6%   10.3%     9.6%   2.3%   2.8%
1997   10.5%   12.9%     9.1%   11.0%   27.9%   11.5%   2.1%   2.8%
1998   11.7%   12.9%   10.8%   11.2%   13.9%   12.3%   2.6%   2.7%
1999   13.5%   10.9%   10.7%     8.8%   12.1%   11.7%   2.5%   2.7%
2000   13.4%   12.2%     9.9%   10.8%     9.4%   10.8%   3.1%   2.8%
2001   13.4%   12.3%   14.0%   16.8%     9.5%     5.7%   2.3%   1.3%
2002   11.9%   10.8%   19.8%   15.8%   10.9%   11.2%   2.6%   2.7%
2003   12.4%   13.5%   13.1%   10.1%   11.4%     9.2%   2.4%   3.1%
2004   12.7%   12.0%     9.7%   12.1%   12.2%   11.8%   1.7%   2.7%
2005   12.0%   15.6%     9.8%     8.0%   15.8%   10.7%   2.9%   2.9%
2006   18.8%   12.4%   10.8%   11.5%   10.6%     9.7%   2.6%   2.3%
2007   12.8%     8.9%   10.9%   12.2%   10.9%     9.8%   2.5%   2.6%
2008   13.8%   12.7%   11.8%   13.5%   11.0%   10.9%   2.4%   2.9%
2009   14.4%   14.2%   13.5%   13.6%   11.8%   10.7%   3.2%   2.8%
2010   11.8%   10.1%   11.3%   11.1%   12.0%   11.3%   2.7%   3.2%
2011   11.5%   12.6%   12.6%     9.6%   12.4%   11.4%   3.5%   2.7%
2012     9.8%   11.5%   10.6%     9.9%     8.1%     8.7%   2.2%   2.3%
2013   13.4%   12.0%   11.0%   11.5%   10.9%   11.8%   3.1%   3.1%
2014   10.4%   11.5%   10.3%   11.5%   18.1%   12.7%   2.8%   3.0%
20156   11.9%   13.2%   11.2%   11.4%   10.5%   11.0%   2.8%   2.9%

THE FUND WILL TRADE WITH A VIEW TO TRACKING THE DBIQ DIVERSIFIED AGRICULTURE INDEX EXCESS RETURN™ OVER TIME.

NEITHER THE PAST PERFORMANCE OF THE FUND NOR THE PRIOR INDEX LEVELS AND CHANGES,

POSITIVE AND NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE FUND’S FUTURE PERFORMANCE.

LEGEND:

 

Symbol    Index Commodity    Symbol    Index Commodity

C

    Corn    KC    Coffee

S

    Soybeans    CT    Cotton

W

    Wheat    LC    Live Cattle

KCW

    Kansas City Wheat    FC    Feeder Cattle

SB

    Sugar    LH    Lean Hogs

CC

    Cocoa          

The Fund tracked the Deutsche Bank Liquid Commodity Index Diversified Agriculture Excess Return™ up to and including December 31, 2010. The Fund has tracked the DBIQ Diversified Agriculture Index Excess Return™ since December 31, 2010. The only difference between the Deutsche Bank Liquid Commodity Index Diversified Agriculture Excess Return™ and the DBIQ Diversified Agriculture Index Excess Return™ is a name change.

See accompanying Notes and Legends.

[Remainder of page left blank intentionally.]

 

12

INDEX COMMODITIES WEIGHTS TABLES

DBIQ DIVERSIFIED AGRICULTURE INDEX EXCESS RETURN™*

 

     LC7   FC7   LH7
  High1   Low2   High1   Low2   High1   Low2
19895   11.9%   13.4%   3.8%   4.4%   7.8%   8.3%
1990   12.1%   13.3%   3.8%   4.4%   9.7%   8.3%
1991   13.4%   14.0%   4.4%   4.9%   9.0%   9.4%
1992   12.7%   14.6%   4.1%   5.1%   8.3%   9.7%
1993   12.0%   14.2%   4.0%   4.5%   7.8%   8.5%
1994     9.3%   12.2%   3.3%   4.2%   5.4%   7.9%
1995   12.2%   12.3%   3.5%   3.9%   8.2%   8.2%
1996     9.8%   12.5%   3.1%   4.0%   9.0%   8.3%
1997   10.5%   12.6%   3.6%   4.2%   6.4%   8.5%
1998   12.3%   12.1%   4.2%   4.1%   8.3%   6.0%
1999   12.3%   15.8%   4.3%   5.6%   7.7%   7.5%
2000   12.1%   12.9%   4.0%   4.3%   9.3%   8.8%
2001   12.7%   13.3%   4.1%   4.6%   8.5%   10.4%
2002   10.5%   12.2%   3.4%   3.9%   4.9%   6.7%
2003   11.7%   14.3%   4.0%   4.4%   7.1%   7.6%
2004   11.0%   10.0%   4.0%   3.6%   8.0%   7.7%
2005   11.7%   13.0%   4.0%   5.0%   7.4%   8.1%
2006   10.9%   12.3%   3.6%   4.1%   6.5%   7.5%
2007   11.4%   13.0%   3.8%   4.9%   7.9%   7.3%
2008     9.1%   12.0%   3.1%   4.0%   6.1%   9.5%
2009     9.6%   11.7%   3.7%   4.2%   5.8%   7.9%
2010   12.5%   14.1%   4.3%   5.1%   8.5%   9.6%
2011   11.6%   13.1%   4.2%   4.5%   8.2%   8.8%
2012   11.7%   13.6%   3.8%   5.0%   7.0%   9.0%
2013   13.1%   12.9%   4.4%   4.3%   8.6%   7.9%
2014   11.4%   13.1%   3.9%   4.4%   8.5%   8.0%
20156   12.4%   11.6%   4.1%   3.7%   7.4%   8.3%

THE FUND WILL TRADE WITH A VIEW TO TRACKING THE DBIQ DIVERSIFIED AGRICULTURE INDEX EXCESS RETURN™ OVER TIME.

NEITHER THE PAST PERFORMANCE OF THE FUND NOR THE PRIOR INDEX LEVELS AND CHANGES,

POSITIVE AND NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE FUND’S FUTURE PERFORMANCE.

LEGEND:

 

Symbol    Index Commodity    Symbol    Index Commodity

C

    Corn    KC    Coffee

S

    Soybeans    CT    Cotton

W

    Wheat    LC    Live Cattle

KCW

    Kansas City Wheat    FC    Feeder Cattle

SB

    Sugar    LH    Lean Hogs

CC

    Cocoa          

The Fund tracked the Deutsche Bank Liquid Commodity Index Diversified Agriculture Excess Return™ up to and including December 31, 2010. The Fund has tracked the DBIQ Diversified Agriculture Index Excess Return™ since December 31, 2010. The only difference between the Deutsche Bank Liquid Commodity Index Diversified Agriculture Excess Return™ and the DBIQ Diversified Agriculture Index Excess Return™ is a name change.

See accompanying Notes and Legends.

[Remainder of page left blank intentionally.]

 

13

INDEX COMMODITIES WEIGHTS TABLES

DBIQ DIVERSIFIED AGRICULTURE INDEX TOTAL RETURN™

 

     C7   S7   W7   KCW7
  High1   Low2   High1   Low2   High1   Low2   High1   Low2
19895   12.0%   11.7%   12.1%   10.7%   6.1%   6.3%   6.3%   6.5%
1990   12.8%   13.0%   11.7%   13.0%   5.0%   6.3%   5.1%   6.5%
1991   12.8%   12.9%   12.4%   12.1%   5.9%   6.2%   6.0%   6.5%
1992   13.1%   11.3%   12.9%   12.7%   8.2%   7.1%   8.0%   7.0%
1993   12.7%   12.8%   12.4%   12.9%   6.3%   6.3%   6.4%   6.3%
1994     9.0%   12.3%     9.4%   12.4%   5.3%   6.3%   5.5%   6.4%
1995   12.8%   13.7%   13.1%   12.5%   6.2%   6.3%   6.3%   6.8%
1996   15.0%   13.1%   13.3%   13.6%   6.1%   6.2%   7.2%   6.4%
1997     9.2%   11.8%   10.2%   12.3%   5.0%   6.3%   5.5%   6.2%
1998   12.5%   13.1%   12.0%   12.9%   5.9%   6.1%   6.0%   6.5%
1999   12.5%   12.9%   12.2%   11.7%   6.0%   6.0%   6.2%   6.3%
2000   13.2%   13.5%   13.6%   13.6%   6.0%   6.2%   6.0%   6.2%
2001   11.8%   11.7%   11.0%   12.2%   6.0%   6.2%   5.8%   5.5%
2002   11.1%   11.7%   12.7%   13.2%   5.9%   5.8%   6.3%   5.9%
2003   12.4%   11.7%   12.9%   13.8%   6.3%   6.6%   6.3%   5.8%
2004   14.6%   13.1%   13.9%   14.0%   6.0%   6.6%   6.1%   6.5%
2005   11.3%   10.9%   13.2%   13.6%   6.2%   6.2%   5.8%   6.1%
2006   12.8%   13.4%   12.8%   11.4%   6.3%   7.1%   6.3%   8.2%
2007   12.7%   12.7%   13.5%   12.9%   6.8%   6.2%   6.9%   6.2%
2008   12.3%   10.9%   14.0%   11.5%   8.1%   6.1%   8.3%   6.1%
2009   12.2%   11.5%   12.6%   12.0%   6.0%   5.9%   5.9%   6.2%
2010   12.0%   11.4%   12.7%   12.9%   6.1%   5.4%   6.2%   5.8%
2011   12.0%   12.3%   12.1%   13.0%   6.0%   6.0%   6.1%   5.9%
2012   15.8%   12.3%   17.6%   15.2%   6.8%   6.3%   6.7%   6.2%
2013   11.9%   12.3%   12.4%   12.5%   5.5%   5.9%   5.7%   5.8%
2014   11.6%   12.1%   11.4%   12.2%   5.7%   5.7%   6.0%   5.8%
20156   13.0%   12.7%   12.8%   13.0%   7.0%   6.2%   6.9%   6.2%

THE FUND WILL NOT TRADE WITH A VIEW TO TRACKING THE DBIQ DIVERSIFIED AGRICULTURE INDEX TOTAL RETURN™ OVER TIME.

NEITHER THE PAST PERFORMANCE OF THE FUND NOR THE PRIOR INDEX LEVELS AND CHANGES,

POSITIVE AND NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE FUND’S FUTURE PERFORMANCE.

LEGEND:

 

Symbol    Index Commodity    Symbol    Index Commodity

C

    Corn    KC    Coffee

S

    Soybeans    CT    Cotton

W

    Wheat    LC    Live Cattle

KCW

    Kansas City Wheat    FC    Feeder Cattle

SB

    Sugar    LH    Lean Hogs

CC

    Cocoa          

The Fund tracked the Deutsche Bank Liquid Commodity Index Diversified Agriculture Excess Return™ up to and including December 31, 2010. The Fund has tracked the DBIQ Diversified Agriculture Index Excess Return™ since December 31, 2010. The only difference between the Deutsche Bank Liquid Commodity Index Diversified Agriculture Excess Return™ and the DBIQ Diversified Agriculture Index Excess Return™ is a name change.

See accompanying Notes and Legends.

[Remainder of page left blank intentionally.]

 

14

INDEX COMMODITIES WEIGHTS TABLES

DBIQ DIVERSIFIED AGRICULTURE INDEX TOTAL RETURN™

 

     SB7   CC7   KC7   CT7
  High1   Low2   High1   Low2   High1   Low2   High1   Low2

19895

   14.8%   17.4%   12.2%   10.0%   10.2%     7.7%   2.6%   3.5%

1990

   11.5%   11.1%   14.1%   10.4%   11.6%   11.4%   2.5%   2.5%

1991

   11.7%   12.3%   10.3%     8.7%   11.1%     9.8%   3.1%   3.3%

1992

   11.5%   15.1%     9.7%     7.9%     9.1%     7.0%   2.4%   2.5%

1993

   12.4%   11.7%   12.0%     9.7%   11.0%   10.1%   2.9%   3.1%

1994

   11.2%   12.6%   11.1%   10.6%   27.4%   11.4%   2.9%   3.8%

1995

   13.3%   11.7%   10.4%   10.5%     9.5%     9.8%   2.8%   4.2%

1996

   14.8%   13.0%     9.3%   10.6%     9.1%     9.6%   2.2%   2.8%

1997

   10.5%   12.9%     9.1%   11.0%   27.9%   11.5%   2.1%   2.8%

1998

   11.7%   12.9%   10.8%   11.2%   13.9%   12.3%   2.6%   2.7%

1999

   13.5%   10.9%   10.7%     8.8%   12.1%   11.7%   2.5%   2.7%

2000

   13.4%   10.2%     9.9%   10.1%     9.4%   10.0%   3.1%   3.2%

2001

   12.8%   12.3%   15.7%   16.8%     8.4%     5.7%   2.2%   1.3%

2002

   11.9%   10.8%   19.8%   15.8%   10.9%   11.2%   2.6%   2.7%

2003

   12.4%   13.5%   13.1%   10.1%   11.4%     9.2%   2.4%   3.1%

2004

   12.7%   12.0%     9.7%   12.1%   12.2%   11.8%   1.7%   2.7%

2005

   12.0%   15.6%     9.8%     8.0%   15.8%   10.7%   2.9%   2.9%

2006

   11.6%   12.4%   11.4%   11.5%   11.5%     9.7%   2.9%   2.3%

2007

   12.8%   11.7%   10.9%   11.5%   10.9%   11.2%   2.5%   2.9%

2008

   13.8%   12.7%   11.8%   13.5%   11.0%   10.9%   2.4%   2.9%

2009

   13.6%   13.8%   11.6%   13.9%   11.1%   10.7%   2.8%   3.0%

2010

   11.8%   10.1%   11.3%   11.1%   12.0%   11.3%   2.7%   3.2%

2011

   11.5%   12.6%   12.6%     9.6%   12.4%   11.4%   3.5%   2.7%

2012

     9.8%   11.5%   10.6%     9.9%     8.1%     8.7%   2.2%   2.3%

2013

   13.4%   12.0%   11.0%   11.5%   10.9%   11.8%   3.1%   3.1%

2014

   10.4%   11.5%   10.3%   11.5%   18.1%   12.7%   2.8%   3.0%

20156

   11.9%   13.2%   11.2%   11.4%   10.5%   11.0%   2.8%   2.9%

THE FUND WILL NOT TRADE WITH A VIEW TO TRACKING THE DBIQ DIVERSIFIED AGRICULTURE INDEX TOTAL RETURN™ OVER TIME.

NEITHER THE PAST PERFORMANCE OF THE FUND NOR THE PRIOR INDEX LEVELS AND CHANGES,

POSITIVE AND NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE FUND’S FUTURE PERFORMANCE.

LEGEND:

 

Symbol    Index Commodity    Symbol    Index Commodity

C

    Corn    KC    Coffee

S

    Soybeans    CT    Cotton

W

    Wheat    LC    Live Cattle

KCW

    Kansas City Wheat    FC    Feeder Cattle

SB

    Sugar    LH    Lean Hogs

CC

    Cocoa          

The Fund tracked the Deutsche Bank Liquid Commodity Index Diversified Agriculture Excess Return™ up to and including December 31, 2010. The Fund has tracked the DBIQ Diversified Agriculture Index Excess Return™ since December 31, 2010. The only difference between the Deutsche Bank Liquid Commodity Index Diversified Agriculture Excess Return™ and the DBIQ Diversified Agriculture Index Excess Return™ is a name change.

See accompanying Notes and Legends.

[Remainder of page left blank intentionally.]

 

15

INDEX COMMODITIES WEIGHTS TABLES

DBIQ DIVERSIFIED AGRICULTURE INDEX TOTAL RETURN™

 

     LC7   FC7   LH7
     High1   Low2   High1   Low2   High1   Low2

19895

   11.9%   13.4%   3.8%   4.4%   7.8%     8.3%

1990

   12.1%   13.1%   3.8%   4.3%   9.7%     8.6%

1991

   13.4%   14.0%   4.4%   4.9%   9.0%     9.4%

1992

   12.7%   14.6%   4.1%   5.1%   8.3%     9.7%

1993

   12.0%   14.2%   4.0%   4.5%   7.8%     8.5%

1994

     9.3%   12.2%   3.3%   4.2%   5.4%     7.9%

1995

   12.5%   12.3%   4.1%   3.9%   8.9%     8.2%

1996

   10.7%   12.5%   3.4%   4.0%   9.0%     8.3%

1997

   10.5%   12.6%   3.6%   4.2%   6.4%     8.5%

1998

   12.3%   12.1%   4.2%   4.1%   8.3%     6.0%

1999

   12.3%   15.8%   4.3%   5.6%   7.7%     7.5%

2000

   12.1%   13.1%   4.0%   4.4%   9.3%     9.5%

2001

   13.1%   13.3%   4.1%   4.6%   9.3%   10.4%

2002

   10.5%   12.2%   3.4%   3.9%   4.9%     6.7%

2003

   11.7%   14.3%   4.0%   4.4%   7.1%     7.6%

2004

   11.0%   10.0%   4.0%   3.6%   8.0%     7.7%

2005

   11.7%   13.0%   4.0%   5.0%   7.4%     8.1%

2006

   12.7%   12.3%   4.3%   4.1%   7.4%     7.5%

2007

   11.4%   13.2%   3.8%   4.4%   7.9%     7.3%

2008

     9.1%   12.0%   3.1%   4.0%   6.1%     9.5%

2009

   11.8%   11.1%   3.9%   4.2%   8.5%     7.6%

2010

   12.5%   14.1%   4.3%   5.1%   8.5%     9.6%

2011

   11.6%   13.1%   4.2%   4.5%   8.2%     8.8%

2012

   11.7%   13.6%   3.8%   5.0%   7.0%     9.0%

2013

   13.1%   12.9%   4.4%   4.3%   8.6%     7.9%

2014

   11.4%   13.1%   3.9%   4.4%   8.5%     8.0%

20156

   12.4%   11.6%   4.1%   3.7%   7.4%     8.3%

THE FUND WILL NOT TRADE WITH A VIEW TO TRACKING THE DBIQ DIVERSIFIED AGRICULTURE INDEX TOTAL RETURN™ OVER TIME.

NEITHER THE PAST PERFORMANCE OF THE FUND NOR THE PRIOR INDEX LEVELS AND CHANGES,

POSITIVE AND NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE FUND’S FUTURE PERFORMANCE.

LEGEND:

 

Symbol    Index Commodity    Symbol    Index Commodity

C

    Corn    KC    Coffee

S

    Soybeans    CT    Cotton

W

    Wheat    LC    Live Cattle

KCW

    Kansas City Wheat    FC    Feeder Cattle

SB

    Sugar    LH    Lean Hogs

CC

    Cocoa          

The Fund tracked the Deutsche Bank Liquid Commodity Index Diversified Agriculture Excess Return™ up to and including December 31, 2010. The Fund has tracked the DBIQ Diversified Agriculture Index Excess Return™ since December 31, 2010. The only difference between the Deutsche Bank Liquid Commodity Index Diversified Agriculture Excess Return™ and the DBIQ Diversified Agriculture Index Excess Return™ is a name change.

See accompanying Notes and Legends.

[Remainder of page left blank intentionally.]

 

16

All statistics based on data from January 18, 1989 to December 31, 2015.

 

VARIOUS STATISTICAL MEASURES    DBIQ Diversified
Agriculture ER™8*		     DBIQ Diversified
Agriculture TR™9		     S&P Agriculture
Total Return10		  

Annualized Changes to Index Level11

        -1.3 %         1.9 %        -2.2 % 

Average rolling 3 month daily volatility12

       11.9 %       11.9 %       16.8 % 

Sharpe Ratio13

        -0.11          -0.25          -0.41   

% of months with positive change14

           46 %           49 %           46 % 

Average monthly positive change15

         2.9 %         2.9 %         4.3 % 

Average monthly negative change16

        -2.5 %        -2.5 %        -3.8 % 
      
ANNUALIZED INDEX LEVELS17    DBIQ Diversified
Agriculture ER™8*		     DBIQ Diversified
Agriculture TR™9		     S&P Agriculture
Total Return10		  

1 year

      -13.7%        -15.8%        -16.9%   

3 year

      -7.8%        -8.6%        -15.3%   

5 year

      -7.3%        -7.7%        -11.4%   

7 year

      -1.9%        -2.2%        -3.9%   

10 year

      -2.2%        -1.3%        -2.4%   

15 year

      -0.5%        0.8%        -3.5%   

NEITHER THE PAST PERFORMANCE OF THE FUND NOR THE PRIOR INDEX LEVELS AND CHANGES, POSITIVE AND NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE FUND’S FUTURE PERFORMANCE.

WHILE THE FUND’S OBJECTIVE IS NOT TO GENERATE PROFIT THROUGH ACTIVE PORTFOLIO MANAGEMENT, BUT IS TO TRACK THE INDEX BECAUSE THE INDEX WAS ESTABLISHED IN SEPTEMBER 2009 (RENAMED IN OCTOBER 2010), CERTAIN INFORMATION RELATING TO THE INDEX CLOSING LEVELS MAY BE CONSIDERED TO BE “HYPOTHETICAL.” HYPOTHETICAL INFORMATION MAY HAVE CERTAIN INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW.

WITH RESPECT TO INDEX DATA, NO REPRESENTATION IS BEING MADE THAT THE INDEX WILL OR IS LIKELY TO ACHIEVE ANNUAL OR CUMULATIVE CLOSING LEVELS CONSISTENT WITH OR SIMILAR TO THOSE SET FORTH HEREIN. SIMILARLY, NO REPRESENTATION IS BEING MADE THAT THE FUND WILL GENERATE PROFITS OR LOSSES SIMILAR TO THE FUND’S PAST PERFORMANCE OR THE HISTORICAL ANNUAL OR CUMULATIVE CHANGES IN THE INDEX CLOSING LEVELS. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY INVESTMENT METHODOLOGIES, WHETHER ACTIVE OR PASSIVE.

WITH RESPECT TO INDEX DATA, ONE OF THE LIMITATIONS OF HYPOTHETICAL INFORMATION IS THAT IT IS GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. TO THE EXTENT THAT INFORMATION PRESENTED HEREIN RELATES TO THE PERIOD JANUARY 1989 THROUGH AUGUST 2009, THE INDEX CLOSING LEVELS REFLECT THE APPLICATION OF THE INDEX’S METHODOLOGY, AND SELECTION OF INDEX COMMODITIES, IN HINDSIGHT.

NO HYPOTHETICAL RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THERE ARE NUMEROUS FACTORS, INCLUDING THOSE DESCRIBED UNDER “THE RISKS YOU FACE” SET FORTH HEREIN, RELATED TO THE COMMODITIES MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF THE FUND’S EFFORTS TO TRACK THE INDEX OVER TIME WHICH CANNOT BE, AND HAVE NOT BEEN, ACCOUNTED FOR IN THE PREPARATION OF THE INDEX INFORMATION SET FORTH ON THE FOLLOWING PAGES, ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL PERFORMANCE RESULTS FOR THE FUND. FURTHERMORE, THE INDEX INFORMATION DOES NOT INVOLVE FINANCIAL RISK OR ACCOUNT FOR THE IMPACT OF FEES AND COSTS ASSOCIATED WITH THE FUND.

THE MANAGING OWNER AND ITS TRADING PRINCIPALS HAVE LIMITED EXPERIENCE MANAGING THE DAY-TO-DAY OPERATIONS FOR THE FUND AND HAVE ONLY MANAGED AN EXCHANGE-TRADED FUND THAT RELATES TO A BROAD-BASED COMMODITY INDEX FOR A SHORT PERIOD. BECAUSE THERE ARE LIMITED ACTUAL PERFORMANCE RESULTS OF THE MANAGING OWNER THAT ARE COMPARABLE TO THE INDEX CLOSING LEVELS SET FORTH HEREIN, PROSPECTIVE INVESTORS SHOULD BE PARTICULARLY WARY OF PLACING UNDUE RELIANCE ON THE ANNUAL OR CUMULATIVE INDEX RESULTS. FOR THE AVOIDANCE OF DOUBT, NONE OF THE PERFORMANCE RELATED INFORMATION THAT IS COVERED HEREIN UP TO AND EXCLUDING THE CLOSING DATE CAN BE ATTRIBUTED TO THE MANAGING OWNER.

THE PREDECESSOR MANAGING OWNER, AN INDIRECT WHOLLY OWNED SUBSIDIARY OF DEUTSCHE BANK AG, COMMENCED OPERATIONS IN JANUARY 2006. AS THE PREDECESSOR MANAGING OWNER, THE PREDECESSOR MANAGING OWNER AND ITS TRADING PRINCIPALS MANAGED THE DAY-TO-DAY OPERATIONS FOR THE FUND FROM INCEPTION UP TO AND EXCLUDING THE CLOSING DATE. BECAUSE THERE ARE LIMITED ACTUAL TRADING RESULTS

 

17

TO COMPARE TO THE INDEX CLOSING LEVELS SET FORTH HEREIN, PROSPECTIVE INVESTORS SHOULD BE PARTICULARLY WARY OF PLACING UNDUE RELIANCE ON THE ANNUAL OR CUMULATIVE INDEX RESULTS. IN RESPECT OF ANY PERIOD, FOR THE AVOIDANCE OF DOUBT, NONE OF THE PERFORMANCE RELATED INFORMATION THAT IS COVERED HEREIN ON AND AFTER THE CLOSING DATE CAN BE ATTRIBUTED TO THE PREDECESSOR MANAGING OWNER.

THE FUND’S PERFORMANCE INFORMATION FROM INCEPTION UP TO AND EXCLUDING THE CLOSING DATE IS A REFLECTION OF THE PERFORMANCE ASSOCIATED WITH THE PREDECESSOR MANAGING OWNER. THE MANAGING OWNER HAS SERVED AS MANAGING OWNER OF THE FUND SINCE THE CLOSING DATE AND THE FUND’S PERFORMANCE INFORMATION SINCE THE CLOSING DATE IS A REFLECTION OF THE PERFORMANCE ASSOCIATED WITH THE MANAGING OWNER. PAST PERFORMANCE OF THE FUND IS NOT NECESSARILY INDICATIVE OF FUTURE PERFORMANCE.

The Fund tracked the Deutsche Bank Liquid Commodity Index Diversified Agriculture Excess Return™ up to and including December 31, 2010. The Fund has tracked the DBIQ Diversified Agriculture Index Excess Return™ since December 31, 2010. The only difference between the Deutsche Bank Liquid Commodity Index Diversified Agriculture Excess Return™ and the DBIQ Diversified Agriculture Index Excess Return™ is a name change.

See accompanying Notes and Legends.

 

18

DBIQ DIVERSIFIED AGRICULTURE ER, DBIQ DIVERSIFIED AGRICULTURE TR AND GOLDMAN SACHS US AGRICULTURE TOTAL RETURN INDEX

(January 18, 1989 to December 31, 2015)

 

LOGO

NEITHER THE PAST PERFORMANCE OF THE FUND NOR THE PRIOR INDEX LEVELS AND CHANGES, POSITIVE AND NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE FUND’S FUTURE PERFORMANCE.

Each of DBIQ Diversified Agriculture ER, DBIQ Diversified Agriculture TR and Goldman Sachs US Agriculture Total Return Index are indices and do not reflect actual trading. DBIQ Diversified Agriculture TR and Goldman Sachs US Agriculture Total Return Index are calculated on a total return basis and do not reflect any fees or expenses.

WHILE THE FUND’S OBJECTIVE IS NOT TO GENERATE PROFIT THROUGH ACTIVE PORTFOLIO MANAGEMENT, BUT IS TO TRACK THE INDEX BECAUSE THE INDEX WAS ESTABLISHED IN SEPTEMBER 2009 (RENAMED IN OCTOBER 2010), CERTAIN INFORMATION RELATING TO THE INDEX CLOSING LEVELS MAY BE CONSIDERED TO BE “HYPOTHETICAL.” HYPOTHETICAL INFORMATION MAY HAVE CERTAIN INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW.

WITH RESPECT TO INDEX DATA, NO REPRESENTATION IS BEING MADE THAT THE INDEX WILL OR IS LIKELY TO ACHIEVE ANNUAL OR CUMULATIVE CLOSING LEVELS CONSISTENT WITH OR SIMILAR TO THOSE SET FORTH HEREIN. SIMILARLY, NO REPRESENTATION IS BEING MADE THAT THE FUND WILL GENERATE PROFITS OR LOSSES SIMILAR TO THE FUND’S PAST PERFORMANCE OR THE HISTORICAL ANNUAL OR CUMULATIVE CHANGES IN THE INDEX CLOSING LEVELS. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY INVESTMENT METHODOLOGIES, WHETHER ACTIVE OR PASSIVE.

WITH RESPECT TO INDEX DATA, ONE OF THE LIMITATIONS OF HYPOTHETICAL INFORMATION IS THAT IT IS GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. TO THE EXTENT THAT INFORMATION PRESENTED HEREIN RELATES TO THE PERIOD JANUARY 1989 THROUGH AUGUST 2009, THE INDEX CLOSING LEVELS REFLECT THE APPLICATION OF THE INDEX’S METHODOLOGY, AND SELECTION OF INDEX COMMODITIES, IN HINDSIGHT.

NO HYPOTHETICAL RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THERE ARE NUMEROUS FACTORS, INCLUDING THOSE DESCRIBED UNDER “THE RISKS YOU FACE” SET FORTH HEREIN, RELATED TO THE COMMODITIES MARKETS IN GENERAL OR TO THE

 

19

IMPLEMENTATION OF THE FUND’S EFFORTS TO TRACK THE INDEX OVER TIME WHICH CANNOT BE, AND HAVE NOT BEEN, ACCOUNTED FOR IN THE PREPARATION OF THE INDEX INFORMATION SET FORTH ON THE FOLLOWING PAGES, ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL PERFORMANCE RESULTS FOR THE FUND. FURTHERMORE, THE INDEX INFORMATION DOES NOT INVOLVE FINANCIAL RISK OR ACCOUNT FOR THE IMPACT OF FEES AND COSTS ASSOCIATED WITH THE FUND.

THE MANAGING OWNER AND ITS TRADING PRINCIPALS HAVE LIMITED EXPERIENCE MANAGING THE DAY-TO-DAY OPERATIONS FOR THE FUND AND HAVE ONLY MANAGED AN EXCHANGE-TRADED FUND THAT RELATES TO A BROAD-BASED COMMODITY INDEX FOR A SHORT PERIOD. BECAUSE THERE ARE LIMITED ACTUAL PERFORMANCE RESULTS OF THE MANAGING OWNER THAT ARE COMPARABLE TO THE INDEX CLOSING LEVELS SET FORTH HEREIN, PROSPECTIVE INVESTORS SHOULD BE PARTICULARLY WARY OF PLACING UNDUE RELIANCE ON THE ANNUAL OR CUMULATIVE INDEX RESULTS. FOR THE AVOIDANCE OF DOUBT, NONE OF THE PERFORMANCE RELATED INFORMATION THAT IS COVERED HEREIN UP TO AND EXCLUDING THE CLOSING DATE CAN BE ATTRIBUTED TO THE MANAGING OWNER.

THE PREDECESSOR MANAGING OWNER, AN INDIRECT WHOLLY OWNED SUBSIDIARY OF DEUTSCHE BANK AG, COMMENCED OPERATIONS IN JANUARY 2006. AS THE PREDECESSOR MANAGING OWNER, THE PREDECESSOR MANAGING OWNER AND ITS TRADING PRINCIPALS MANAGED THE DAY-TO-DAY OPERATIONS FOR THE FUND FROM INCEPTION UP TO AND EXCLUDING THE CLOSING DATE. BECAUSE THERE ARE LIMITED ACTUAL TRADING RESULTS TO COMPARE TO THE INDEX CLOSING LEVELS SET FORTH HEREIN, PROSPECTIVE INVESTORS SHOULD BE PARTICULARLY WARY OF PLACING UNDUE RELIANCE ON THE ANNUAL OR CUMULATIVE INDEX RESULTS. IN RESPECT OF ANY PERIOD, FOR THE AVOIDANCE OF DOUBT, NONE OF THE PERFORMANCE RELATED INFORMATION THAT IS COVERED HEREIN ON AND AFTER THE CLOSING DATE CAN BE ATTRIBUTED TO THE PREDECESSOR MANAGING OWNER.

THE FUND’S PERFORMANCE INFORMATION FROM INCEPTION UP TO AND EXCLUDING THE CLOSING DATE IS A REFLECTION OF THE PERFORMANCE ASSOCIATED WITH THE PREDECESSOR MANAGING OWNER. THE MANAGING OWNER HAS SERVED AS MANAGING OWNER OF THE FUND SINCE THE CLOSING DATE AND THE FUND’S PERFORMANCE INFORMATION SINCE THE CLOSING DATE IS A REFLECTION OF THE PERFORMANCE ASSOCIATED WITH THE MANAGING OWNER. PAST PERFORMANCE OF THE FUND IS NOT NECESSARILY INDICATIVE OF FUTURE PERFORMANCE.

The Fund tracked the Deutsche Bank Liquid Commodity Index Diversified Agriculture Excess Return™ up to and including December 31, 2010. The Fund has tracked the DBIQ Diversified Agriculture Index Excess Return™ since December 31, 2010. The only difference between the Deutsche Bank Liquid Commodity Index Diversified Agriculture Excess Return™ and the DBIQ Diversified Agriculture Index Excess Return™ is a name change.

See accompanying Notes and Legends.

 

20

COMPARISON OF DBIQ DIVERSIFIED AGRICULTURE TR AND GOLDMAN SACHS US AGRICULTURE TOTAL RETURN INDEX

(January 18, 1989 to December 31, 2015)

 

LOGO

NEITHER THE PAST PERFORMANCE OF THE FUND NOR THE PRIOR INDEX LEVELS AND CHANGES, POSITIVE AND NEGATIVE, SHOULD BE TAKEN AS AN INDICATION OF THE FUND’S FUTURE PERFORMANCE.

DBIQ Diversified Agriculture TR and Goldman Sachs US Agriculture Total Return Index are indices and do not reflect actual trading. DBIQ Diversified Agriculture TR and Goldman Sachs US Agriculture Total Return Index are calculated on a total return basis and do not reflect any fees or expenses.

WHILE THE FUND’S OBJECTIVE IS NOT TO GENERATE PROFIT THROUGH ACTIVE PORTFOLIO MANAGEMENT, BUT IS TO TRACK THE INDEX BECAUSE THE INDEX WAS ESTABLISHED IN SEPTEMBER 2009 (RENAMED IN OCTOBER 2010), CERTAIN INFORMATION RELATING TO THE INDEX CLOSING LEVELS MAY BE CONSIDERED TO BE “HYPOTHETICAL.” HYPOTHETICAL INFORMATION MAY HAVE CERTAIN INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW.

WITH RESPECT TO INDEX DATA, NO REPRESENTATION IS BEING MADE THAT THE INDEX WILL OR IS LIKELY TO ACHIEVE ANNUAL OR CUMULATIVE CLOSING LEVELS CONSISTENT WITH OR SIMILAR TO THOSE SET FORTH HEREIN. SIMILARLY, NO REPRESENTATION IS BEING MADE THAT THE FUND WILL GENERATE PROFITS OR LOSSES SIMILAR TO THE FUND’S PAST PERFORMANCE OR THE HISTORICAL ANNUAL OR CUMULATIVE CHANGES IN THE INDEX CLOSING LEVELS. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY INVESTMENT METHODOLOGIES, WHETHER ACTIVE OR PASSIVE.

WITH RESPECT TO INDEX DATA, ONE OF THE LIMITATIONS OF HYPOTHETICAL INFORMATION IS THAT IT IS GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. TO THE EXTENT THAT INFORMATION PRESENTED HEREIN RELATES TO THE PERIOD JANUARY 1989 THROUGH AUGUST 2009, THE INDEX CLOSING LEVELS REFLECT THE APPLICATION OF THE INDEX’S METHODOLOGY, AND SELECTION OF INDEX COMMODITIES, IN HINDSIGHT.

NO HYPOTHETICAL RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THERE ARE NUMEROUS FACTORS, INCLUDING THOSE DESCRIBED UNDER “THE RISKS YOU FACE” SET FORTH HEREIN, RELATED TO THE COMMODITIES MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF THE FUND’S EFFORTS TO TRACK THE INDEX OVER TIME WHICH CANNOT BE, AND HAVE NOT BEEN, ACCOUNTED FOR IN THE PREPARATION OF THE INDEX INFORMATION SET FORTH ON THE FOLLOWING PAGES, ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL PERFORMANCE RESULTS FOR THE FUND. FURTHERMORE, THE INDEX INFORMATION DOES NOT INVOLVE FINANCIAL RISK OR ACCOUNT FOR THE IMPACT OF FEES AND COSTS ASSOCIATED WITH THE FUND.

 

21

THE MANAGING OWNER AND ITS TRADING PRINCIPALS HAVE LIMITED EXPERIENCE MANAGING THE DAY-TO-DAY OPERATIONS FOR THE FUND AND HAVE ONLY MANAGED AN EXCHANGE-TRADED FUND THAT RELATES TO A BROAD-BASED COMMODITY INDEX FOR A SHORT PERIOD. BECAUSE THERE ARE LIMITED ACTUAL PERFORMANCE RESULTS OF THE MANAGING OWNER THAT ARE COMPARABLE TO THE INDEX CLOSING LEVELS SET FORTH HEREIN, PROSPECTIVE INVESTORS SHOULD BE PARTICULARLY WARY OF PLACING UNDUE RELIANCE ON THE ANNUAL OR CUMULATIVE INDEX RESULTS. FOR THE AVOIDANCE OF DOUBT, NONE OF THE PERFORMANCE RELATED INFORMATION THAT IS COVERED HEREIN UP TO AND EXCLUDING THE CLOSING DATE CAN BE ATTRIBUTED TO THE MANAGING OWNER.

THE PREDECESSOR MANAGING OWNER, AN INDIRECT WHOLLY OWNED SUBSIDIARY OF DEUTSCHE BANK AG, COMMENCED OPERATIONS IN JANUARY 2006. AS THE PREDECESSOR MANAGING OWNER, THE PREDECESSOR MANAGING OWNER AND ITS TRADING PRINCIPALS MANAGED THE DAY-TO-DAY OPERATIONS FOR THE FUND FROM INCEPTION UP TO AND EXCLUDING THE CLOSING DATE. BECAUSE THERE ARE LIMITED ACTUAL TRADING RESULTS TO COMPARE TO THE INDEX CLOSING LEVELS SET FORTH HEREIN, PROSPECTIVE INVESTORS SHOULD BE PARTICULARLY WARY OF PLACING UNDUE RELIANCE ON THE ANNUAL OR CUMULATIVE INDEX RESULTS. IN RESPECT OF ANY PERIOD, FOR THE AVOIDANCE OF DOUBT, NONE OF THE PERFORMANCE RELATED INFORMATION THAT IS COVERED HEREIN ON AND AFTER THE CLOSING DATE CAN BE ATTRIBUTED TO THE PREDECESSOR MANAGING OWNER.

THE FUND’S PERFORMANCE INFORMATION FROM INCEPTION UP TO AND EXCLUDING THE CLOSING DATE IS A REFLECTION OF THE PERFORMANCE ASSOCIATED WITH THE PREDECESSOR MANAGING OWNER. THE MANAGING OWNER HAS SERVED AS MANAGING OWNER OF THE FUND SINCE THE CLOSING DATE AND THE FUND’S PERFORMANCE INFORMATION SINCE THE CLOSING DATE IS A REFLECTION OF THE PERFORMANCE ASSOCIATED WITH THE MANAGING OWNER. PAST PERFORMANCE OF THE FUND IS NOT NECESSARILY INDICATIVE OF FUTURE PERFORMANCE.

The Fund tracked the Deutsche Bank Liquid Commodity Index Diversified Agriculture Excess Return™ up to and including December 31, 2010. The Fund has tracked the DBIQ Diversified Agriculture Index Excess Return™ since December 31, 2010. The only difference between the Deutsche Bank Liquid Commodity Index Diversified Agriculture Excess Return™ and the DBIQ Diversified Agriculture Index Excess Return™ is a name change.

See accompanying Notes and Legends.

 

22

NOTES AND LEGENDS:

1.  “High” reflects the highest closing level of the Index during the applicable year.

2.  “Low” reflects the lowest closing level of the Index during the applicable year.

3.  “Annual Index Changes” reflect the change to the Index level on an annual basis as of December 31 of each applicable year.

4.  “Index Changes Since Inception” reflects the change of the Index level since inception on a compounded annual basis as of December 31 of each applicable year.

5.  Closing levels as of inception on January 18, 1989.

6.  Closing levels as of December 31, 2015.

7.  The DBIQ Diversified Agriculture Index Excess Return™ and DBIQ Diversified Agriculture Index Total Return™ reflect the change in market value of C (Corn), S (Soybeans), W (Wheat), KW (Kansas City Wheat), and SB (Sugar), on an optimum yield basis, and CC (Cocoa), KC (Coffee), LC (Live Cattle), FC (Feeder Cattle), LH (Lean Hogs), and CT (Cotton), on a non-optimum yield basis.

8.  “DBIQ Diversified Agriculture ER™” is DBIQ Diversified Agriculture Index Excess Return™.

9.  “DBIQ Diversified Agriculture TR™” is DBIQ Diversified Agriculture Index Total Return™.

10.  “S&P Agriculture Total Return” is S&P GSCI Agriculture Index Total Return.

11.  “Annualized Changes to Index Level” reflect the change to the applicable index level on an annual basis as of December 31 of each applicable year.

12.  “Average rolling 3 month daily volatility.” The daily volatility reflects the relative rate at which the price of the applicable index moves up and down, which is found by calculating the annualized standard deviation of the daily change in price. In turn, an average of this value is calculated on a 3 month rolling basis.

13.  “Sharpe Ratio” compares the annualized rate of return minus the annualized risk-free rate of return to the annualized variability — often referred to as the “standard deviation” — of the monthly rates of return. A Sharpe Ratio of 1:1 or higher indicates that, according to the measures used in calculating the ratio, the rate of return achieved by a particular strategy has equaled or exceeded the risks assumed by such strategy. The risk-free rate of return that was used in these calculations was assumed to be 4.77%

14.  “% of months with positive change” during the period from inception to December 31, 2015.

15.  “Average monthly positive change” during the period from inception to December 31, 2015.

16.  “Average monthly negative change” during the period from inception to December 31, 2015.

17.  “Annualized Index Levels” reflect the change to the level of the applicable index on an annual basis as of December 31 of each the applicable time period (e.g., 1 year, 3, 5 or 7, 10 or 15 years, as applicable).

* Prior to October 19, 2009, the Fund sought to track the Deutsche Bank Liquid Commodity Index-Optimum Yield Agriculture Excess Return™. From October 19, 2009 to December 31, 2010, the Fund sought to track the Deutsche Bank Liquid Commodity Index Diversified Agriculture Index Excess Return™. Since December 31, 2010, the Fund seeks to track the DBIQ Diversified Agriculture Index ER. The only difference between the Deutsche Bank Liquid Commodity Index Diversified Agriculture Index Excess Return™ and the DBIQ Diversified Agriculture Index ER is a name change.

 

23

WHILE THE FUND’S OBJECTIVE IS NOT TO GENERATE PROFIT THROUGH ACTIVE PORTFOLIO MANAGEMENT, BUT IS TO TRACK THE INDEX BECAUSE THE INDEX WAS ESTABLISHED IN SEPTEMBER 2009 (RENAMED IN OCTOBER 2010), CERTAIN INFORMATION RELATING TO THE INDEX CLOSING LEVELS MAY BE CONSIDERED TO BE “HYPOTHETICAL.” HYPOTHETICAL INFORMATION MAY HAVE CERTAIN INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW.

WITH RESPECT TO INDEX DATA, NO REPRESENTATION IS BEING MADE THAT THE INDEX WILL OR IS LIKELY TO ACHIEVE ANNUAL OR CUMULATIVE CLOSING LEVELS CONSISTENT WITH OR SIMILAR TO THOSE SET FORTH HEREIN. SIMILARLY, NO REPRESENTATION IS BEING MADE THAT THE FUND WILL GENERATE PROFITS OR LOSSES SIMILAR TO THE FUND’S PAST PERFORMANCE OR THE HISTORICAL ANNUAL OR CUMULATIVE CHANGES IN THE INDEX CLOSING LEVELS. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY INVESTMENT METHODOLOGIES, WHETHER ACTIVE OR PASSIVE.

WITH RESPECT TO INDEX DATA, ONE OF THE LIMITATIONS OF HYPOTHETICAL INFORMATION IS THAT IT IS GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. TO THE EXTENT THAT INFORMATION PRESENTED HEREIN RELATES TO THE PERIOD JANUARY 1989 THROUGH AUGUST 2009, THE INDEX CLOSING LEVELS REFLECT THE APPLICATION OF THE INDEX’S METHODOLOGY, AND SELECTION OF INDEX COMMODITIES, IN HINDSIGHT.

NO HYPOTHETICAL RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THERE ARE NUMEROUS FACTORS, INCLUDING THOSE DESCRIBED UNDER “THE RISKS YOU FACE” SET FORTH HEREIN, RELATED TO THE COMMODITIES MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF THE FUND’S EFFORTS TO TRACK THE INDEX OVER TIME WHICH CANNOT BE, AND HAVE NOT BEEN, ACCOUNTED FOR IN THE PREPARATION OF THE INDEX INFORMATION SET FORTH ON THE FOLLOWING PAGES, ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL PERFORMANCE RESULTS FOR THE FUND. FURTHERMORE, THE INDEX INFORMATION DOES NOT INVOLVE FINANCIAL RISK OR ACCOUNT FOR THE IMPACT OF FEES AND COSTS ASSOCIATED WITH THE FUND.

THE MANAGING OWNER AND ITS TRADING PRINCIPALS HAVE LIMITED EXPERIENCE MANAGING THE DAY-TO-DAY OPERATIONS FOR THE FUND AND HAVE ONLY MANAGED AN EXCHANGE-TRADED FUND THAT RELATES TO A BROAD-BASED COMMODITY INDEX FOR A SHORT PERIOD. BECAUSE THERE ARE LIMITED ACTUAL PERFORMANCE RESULTS OF THE MANAGING OWNER THAT ARE COMPARABLE TO THE INDEX CLOSING LEVELS SET FORTH HEREIN, PROSPECTIVE INVESTORS SHOULD BE PARTICULARLY WARY OF PLACING UNDUE RELIANCE ON THE ANNUAL OR CUMULATIVE INDEX RESULTS. FOR THE AVOIDANCE OF DOUBT, NONE OF THE PERFORMANCE RELATED INFORMATION THAT IS COVERED HEREIN UP TO AND EXCLUDING THE CLOSING DATE CAN BE ATTRIBUTED TO THE MANAGING OWNER.

THE PREDECESSOR MANAGING OWNER, AN INDIRECT WHOLLY OWNED SUBSIDIARY OF DEUTSCHE BANK AG, COMMENCED OPERATIONS IN JANUARY 2006. AS THE PREDECESSOR MANAGING OWNER, THE PREDECESSOR MANAGING OWNER AND ITS TRADING PRINCIPALS MANAGED THE DAY-TO-DAY OPERATIONS FOR THE FUND FROM INCEPTION UP TO AND EXCLUDING THE CLOSING DATE. BECAUSE THERE ARE LIMITED ACTUAL TRADING RESULTS TO COMPARE TO THE INDEX CLOSING LEVELS SET FORTH HEREIN, PROSPECTIVE INVESTORS SHOULD BE PARTICULARLY WARY OF PLACING UNDUE RELIANCE ON THE ANNUAL OR CUMULATIVE INDEX RESULTS. IN RESPECT OF ANY PERIOD, FOR THE AVOIDANCE OF DOUBT, NONE OF THE PERFORMANCE RELATED INFORMATION THAT IS COVERED HEREIN ON AND AFTER THE CLOSING DATE CAN BE ATTRIBUTED TO THE PREDECESSOR MANAGING OWNER.

THE FUND’S PERFORMANCE INFORMATION FROM INCEPTION UP TO AND EXCLUDING THE CLOSING DATE IS A REFLECTION OF THE PERFORMANCE ASSOCIATED WITH THE PREDECESSOR MANAGING OWNER. THE MANAGING OWNER HAS SERVED AS MANAGING OWNER OF THE FUND SINCE THE CLOSING DATE AND THE FUND’S PERFORMANCE INFORMATION SINCE THE CLOSING DATE IS A REFLECTION OF THE PERFORMANCE ASSOCIATED WITH THE MANAGING OWNER. PAST PERFORMANCE OF THE FUND IS NOT NECESSARILY INDICATIVE OF FUTURE PERFORMANCE.

The Fund tracked the Deutsche Bank Liquid Commodity Index Diversified Agriculture Excess Return™ up to and including December 31, 2010. The Fund has tracked the DBIQ Diversified Agriculture Index Excess Return™ since December 31, 2010. The only difference between the Deutsche Bank Liquid Commodity Index Diversified Agriculture Excess Return™ and the DBIQ Diversified Agriculture Index Excess Return™ is a name change.

PowerShares DB Agriculture Fund (the “Fund”) is not sponsored or endorsed by Deutsche Bank AG, Deutsche Bank Securities Inc. or any subsidiary or affiliate of Deutsche Bank AG or Deutsche Bank Securities Inc. (collectively, “Deutsche Bank”). The DBIQ Diversified Agriculture Index Excess Return™ (the “DB Index”) is the exclusive property of Deutsche Bank Securities Inc. “DBIQ” is a service mark of Deutsche Bank AG and has been licensed for use for certain purposes by Deutsche Bank Securities Inc. Neither Deutsche Bank nor any other party involved in, or related to, making or compiling the DB Index makes any representation or warranty, express or implied, concerning the DB Index, the Fund or the advisability of investing in securities generally. Neither Deutsche Bank nor any other party involved in, or related to, making or compiling the DB Index has any obligation to take the needs of Invesco PowerShares Capital Management LLC, the sponsor of the Fund, or its clients into consideration in determining, composing or calculating the DB Index. Neither Deutsche Bank nor any other party

 

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involved in, or related to, making or compiling the DB Index is responsible for or has participated in the determination of the timing of, prices at, quantities or valuation of the Fund. Neither Deutsche Bank nor any other party involved in, or related to, making or compiling the DB Index has any obligation or liability in connection with the administration or trading of the Fund.

NEITHER DEUTSCHE BANK NOR ANY OTHER PARTY INVOLVED IN, OR RELATED TO, MAKING OR COMPILING THE DB INDEX, WARRANTS OR GUARANTEES THE ACCURACY AND/OR THE COMPLETENESS OF THE DB INDEX OR ANY DATA INCLUDED THEREIN AND SHALL HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN. NEITHER DEUTSCHE BANK NOR ANY OTHER PARTY INVOLVED IN, OR RELATED TO, MAKING OR COMPILING THE DB INDEX, MAKES ANY WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY INVESCO POWERSHARES CAPITAL MANAGEMENT LLC FROM THE USE OF THE DB INDEX OR ANY DATA INCLUDED THEREIN. NEITHER DEUTSCHE BANK NOR ANY OTHER PARTY INVOLVED IN, OR RELATED TO, MAKING OR COMPILING THE DB INDEX, MAKES ANY EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE DB INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL DEUTSCHE BANK OR ANY OTHER PARTY INVOLVED IN, OR RELATED TO, MAKING OR COMPILING THE DB INDEX HAVE ANY LIABILITY FOR DIRECT, INDIRECT, PUNITIVE, SPECIAL, CONSEQUENTIAL OR ANY OTHER DAMAGES OR LOSSES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY THEREOF. EXCEPT AS EXPRESSLY PROVIDED TO THE CONTRARY, THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN DEUTSCHE BANK AND INVESCO POWERSHARES CAPITAL MANAGEMENT LLC.

No purchaser, seller or holder of the shares of this Fund, or any other person or entity, should use or refer to any Deutsche Bank trade name, trademark or service mark to sponsor, endorse, market or promote this Fund without first contacting Deutsche Bank to determine whether Deutsche Bank’s permission is required. Under no circumstances may any person or entity claim any affiliation with Deutsche Bank without the written permission of Deutsche Bank.”

 

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