Amplify Commodity Trust is a Delaware statutory trust formed on July 23 2014 and currently includes two separate series BDRY and BWET each of which is a commodity pool that continuously issues shares of beneficial interest traded on the NYSE Arca The Trust is managed and controlled by Amplify Investments LLC the Sponsor which is responsible for establishing and designating series issuing shares and fixing the rights and preferences between shares of any series The Trust and…
Amplify Commodity Trust is a Delaware statutory trust formed on July 23 2014 and currently includes two separate series BDRY and BWET each of which is a commodity pool that continuously issues shares of beneficial interest traded on the NYSE Arca The Trust is managed and controlled by Amplify Investments LLC the Sponsor which is responsible for establishing and designating series issuing shares and fixing the rights and preferences between shares of any series The Trust and each series exist in perpetuity unless earlier terminated in accordance with the Trust Agreement Separate and distinct records are maintained for each Fund and their assets are accounted for separately from other series Each Fund is a commodity pool as defined by the Commodity Exchange Act and the Sponsor is registered as a commodity pool operator with the Commodity Futures Trading Commission and is a member of the National Futures Association The Trustee Wilmington Trust N A serves as the corporate trustee and is unaffiliated with the Sponsor
The Trust generates revenue through the management and operation of its two series BDRY and BWET each of which seeks to provide investors with exposure to changes in freight futures prices BDRY tracks the performance of a portfolio consisting of exchange cleared futures contracts on the cost of shipping dry bulk freight while BWET tracks the performance of a portfolio consisting of exchange cleared futures contracts on the cost of shipping crude oil The Funds invest substantially all of their assets in the respective futures contracts constituting their Benchmark Portfolios and may hold exchange traded options on those futures The Sponsor receives a management fee from each Fund and Breakwave serves as the commodity trading advisor for both Funds receiving a license and service fee The Funds also generate interest income from holdings in cash or cash equivalents such as U S Treasuries and other high credit quality short term fixed income securities held for liquidity purposes and to meet redemptions
The company operates through the following segments
- BDRY seeks to provide investors with exposure to the daily change in the price of dry bulk freight futures by tracking the performance of a portfolio consisting of exchange cleared futures contracts on the cost of shipping dry bulk freight The BDRY Benchmark Portfolio is maintained by Breakwave and consists of a three month strip of the nearest calendar quarter of futures contracts on specified indexes that measure rates for shipping dry bulk freight The Reference Indexes are the Capesize 5TC Index the Panamax 4TC Index and the Supramax 10TC Index each published by the Baltic Exchange The BDRY Benchmark Portfolio maintains long only positions in Dry Freight Futures with 50% exposure in Capesize 40% in Panamax and 10% in Supramax contracts and is rebalanced annually.
- BWET seeks to provide investors with exposure to the daily change in the price of crude oil tanker freight futures by tracking the performance of a portfolio consisting of exchange cleared futures contracts on the cost of shipping crude oil The BWET Benchmark Portfolio is maintained by Breakwave and consists of a three month strip of the nearest calendar quarter of futures contracts on specified indexes that measure rates for shipping crude oil The Reference Indexes are the TD3C Index and the TD20 Index each published by the Baltic Exchange The BWET Benchmark Portfolio maintains long only positions in Oil Freight Futures with 90% exposure in TD3C and 10% in TD20 contracts and is rebalanced annually.
Amplify Commodity Trust operates in the niche exchange traded fund market focused on freight futures with no direct competitors as BDRY and BWET are the only freight futures exchange traded funds globally The Trust benefits from the expertise of Breakwave as commodity trading advisor and the Sponsor's registration as a commodity pool operator with the CFTC and membership in the NFA The Trust's structure as a Delaware statutory trust with separate series allows for distinct investment portfolios and separate accounting for each Fund's assets and liabilities
The customer base consists of investors seeking exposure to freight futures markets including institutional and retail investors who purchase and sell shares of BDRY and BWET on the NYSE Arca The Funds are designed for investors who wish to gain exposure to changes in dry bulk freight futures or crude oil tanker freight futures through exchange traded products