8-K: United States 12 Month Natural Gas Fund Reports $1.1 Million Loss in February

The United States 12 Month Natural Gas Fund reported a net loss of $1.1 million for the month of February 2024, driven by trading losses and a decrease in net asset value.

Summary

• The United States 12 Month Natural Gas Fund, LP reported a net loss of $1,103,123 for the month ended February 29, 2024.
• The fund experienced a realized trading loss of $3,577,033 on commodity futures, partially offset by an unrealized gain of $2,411,543.
• Total income for the month was a loss of $1,090,093.
• Total expenses amounted to $33,127, which was reduced by an expense waiver of $20,097, resulting in net expenses of $13,030.
• The fund's net asset value decreased from $23,875,018 at the beginning of the month to $16,200,767 at the end of the month.
• This change includes additions of $1,174,285 from 150,000 shares and withdrawals of $7,745,413 from 1,000,000 shares.
• The net asset value per share was $8.10 based on 2,000,000 shares.

Sentiment

Score: 3

Explanation: The document reports a significant loss and a decrease in net asset value, indicating a negative sentiment from an investment perspective.

Positives

• The fund had some positive income from dividends ($45,514) and interest ($28,833).
• An expense waiver of $20,097 helped to reduce overall expenses.

Negatives

• The fund experienced significant realized trading losses of $3,577,033.
• The fund's net asset value decreased substantially by $7,674,251 during the month.
• Withdrawals of $7,745,413 significantly impacted the net asset value.

Risks

• The fund is exposed to the volatility of commodity futures markets, which can lead to significant trading losses.
• Fluctuations in net asset value can impact investor returns.
• Withdrawals by investors can further reduce the fund's net asset value.

Management Comments

• Stuart P. Crumbaugh, Chief Financial Officer, certified that the information in the account statement is accurate and complete to the best of his knowledge and belief.

Industry Context

This report reflects the performance of a natural gas investment fund, which is subject to the volatility of the natural gas market and commodity futures trading. The results are typical of funds exposed to these markets.

Comparison to Industry Standards

• The fund's performance is comparable to other natural gas commodity funds, which also experience volatility due to market fluctuations.
• The realized trading losses are not unusual given the inherent risks in commodity futures trading.
• The decrease in net asset value is consistent with the challenges faced by similar funds during periods of market volatility.

Stakeholder Impact

• Shareholders will be negatively impacted by the decrease in net asset value and the reported loss.
• The fund's performance may affect investor confidence and future investment decisions.

Key Dates

Keywords

Natural Gas, Commodity Futures, Net Asset Value, Trading Loss, Financial Report, Investment Fund