1367305--3/26/2008--PowerShares_DB_Oil

related topics

{interest, director, officer}

{tax, income, asset}

{stock, price, share}

{loss, insurance, financial}

{provision, law, control}

{system, service, information}

{stock, price, operating}

{loan, real, estate}

Investment and Trading Related Risks The Value of the Limited Shares Relates Directly to the Value of the Futures Contracts and Other Assets Held by the Master Fund and Fluctuations in the Price of These Assets Could Materially Adversely Affect an Investment in the Fund s Limited Shares. Net Asset Value May Not Always Correspond to Market Price and, as a Result, Baskets may be Created or Redeemed at a Value that Differs from the Market Price of the Limited Shares. Regulatory and Exchange Position Limits and Other Rules May Restrict the Creation of Baskets and the Operation of the Master Fund. The Fund s Performance May Not Always Replicate Exactly the Changes in the Levels of the Index. The Master Fund is Not Actively Managed and Tracks the Index During Periods in which the Index Is Flat or Declining as well as when the Index Is Rising. Amex May Halt Trading in the Limited Shares Which Would Adversely Impact Your Ability to Sell Limited Shares. The Lack of an Active Trading Market for the Limited Shares May Result in Losses on Your Investment in the Fund at the Time of Disposition of Your Limited Shares. The Limited Shares Are a New Securities Product and Their Value Could Decrease if Unanticipated Operational or Trading Problems Arise. As the Managing Owner and its Principals have Only a Limited History of Operating Investment Vehicles like the Fund or the Master Fund, their Experience may be Inadequate or Unsuitable to Manage the Fund or the Master Fund. You May Not Rely on Past Performance or Index Results in Deciding Whether to Buy Limited Shares. Fewer Representative Commodities May Result In Greater Index Volatility. Price Volatility May Possibly Cause the Total Loss of Your Investment. Unusually Long Peak-to-Valley Drawdown Periods With Respect To the Index May Be Reflected in Equally Long Peak-to-Valley Drawdown Periods with Respect to the Performance of the Limited Shares. Fees and Commissions are Charged Regardless of Profitability and May Result in Depletion of Assets. You Cannot Be Assured of the Managing Owner s Continued Services, Which Discontinuance May Be Detrimental to the Fund. Possible Illiquid Markets May Exacerbate Losses. You May Be Adversely Affected by Redemption Orders that Are Subject To Postponement, Suspension or Rejection Under Certain Circumstances. Because the Futures Contracts Have No Intrinsic Value, the Positive Performance of Your Investment Is Wholly Dependent Upon an Equal and Offsetting Loss. Failure of Commodity Futures Markets to Exhibit Low to Negative Correlation to General Financial Markets Will Reduce Benefits of Diversification and May Exacerbate Losses to Your Portfolio. Shareholders Do Not Have the Protections Associated With Ownership of Limited Shares in an Investment Company Registered Under the Investment Company Act of 1940. Various Actual and Potential Conflicts of Interest May Be Detrimental to Shareholders. Shareholders of the Fund Will Be Subject to Taxation on Their Share of the Fund s Taxable Income (Including the Fund s Share of the Master Fund s Taxable Income), Whether or Not They Receive Cash Distributions. Items of Income, Gain, Loss, Deduction and Credit with respect to Limited Shares could be Reallocated if the IRS does not Accept the Assumptions or Conventions Used by the Fund or the Master Fund in Allocating Such Tax Items. The Current Treatment of Long Term Capital Gains Under Current U.S. Federal Income Tax Law May Be Adversely Affected, Changed or Repealed in the Future. PROSPECTIVE INVESTORS ARE STRONGLY URGED TO CONSULT THEIR OWN TAX ADVISERS AND COUNSEL WITH RESPECT TO THE POSSIBLE TAX CONSEQUENCES TO THEM OF AN INVESTMENT IN THE LIMITED SHARES; SUCH TAX CONSEQUENCES MAY DIFFER IN RESPECT OF DIFFERENT INVESTORS. Failure of Futures Commission Merchants or Commodity Brokers to Segregate Assets May Increase Losses; Despite Segregation of Assets, the Master Fund Remains at Risk of Significant Losses Because the Master Fund May Only Receive a Pro-Rata Share of the Assets, or No Assets at All. Regulatory Changes or Actions May Alter the Nature of an Investment in the Fund. Lack of Independent Advisers Representing Investors. Possibility of Termination of the Fund or Master Fund May Adversely Affect Your Portfolio. Shareholders Do Not Have the Rights Enjoyed by Investors in Certain Other Vehicles. An Investment in the Limited Shares May Be Adversely Affected by Competition From Other Methods of Investing in Commodities. Competing Claims Over Ownership of Intellectual Property Rights Related to the Fund Could Adversely Affect the Fund and an Investment in the Limited Shares. The Value of the Limited Shares Will be Adversely Affected if the Fund or the Master Fund is Required to Indemnify the Trustee or the Managing Owner. The Net Asset Value Calculation of the Master Fund May Be Overstated or Understated Due to the Valuation Method Employed When a Settlement Price is not Available on the Date of Net Asset Value Calculation. Although the Limited Shares are Limited Liability Investments, Certain Circumstances such as Bankruptcy of the Fund or Indemnification of the Fund by the Shareholders will Increase a Shareholders Liability.

Full 10-K form ▸

1367305--3/26/2008--PowerShares_DB_Oil_Fund