This excerpt taken from the UDN 10-Q filed May 15, 2007.
FOR THE PERIOD FROM FEBRUARY 15, 2007 (COMMENCEMENT OF INVESTMENT OPERATIONS) TO MARCH 31, 2007 (REFERRED TO HEREIN AS PERIOD ENDED MARCH 31, 2007)
The Fund was launched on February 15, 2007 at $25.00 per share and listed for trading on the Amex on February 20, 2007.
The Fund and the Master Fund seek to track changes in the closing levels of the Deutsche Bank US Dollar Index (USDX®) Futures Index Excess Return (Short Index), or the Index, over time, plus the excess, if any, of the Master Funds interest income from its holdings of United States Treasury obligations and other high credit quality short-term fixed income securities over the expenses of the Fund and the Master Fund. The following table illustrates changes in (i) the price of the Limited Shares (as reflected by the graph UDN), (ii) the Funds NAV (as reflected by the graph UDNNAV), and (iii) the closing levels of the Index (as reflected by the graph USDDNX). The price of the Limited Shares generally has exceeded
the levels of the Index primarily because the Limited Share price reflects interest income from the Master Funds collateral holdings whereas the Index does not consider such interest income. There can be no assurances that the price of the Limited Shares will continue to exceed the Index levels.