8-K: United States 12 Month Natural Gas Fund Reports $1.9 Million Net Loss for December 2023

The United States 12 Month Natural Gas Fund, LP reported a net loss of $1.9 million for December 2023, primarily driven by losses in commodity futures trading.

Summary

• The United States 12 Month Natural Gas Fund, LP released its monthly account statement for December 31, 2023.
• The fund experienced a net loss of $1,900,029 for the month.
• This loss was primarily due to a realized trading loss of $1,272,358 and an unrealized loss of $686,793 on commodity futures.
• The fund's total income was a loss of $1,887,370, offset slightly by dividend and interest income.
• Total expenses amounted to $33,308, which was reduced by an expense waiver of $20,649, resulting in net expenses of $12,659.
• The net asset value of the fund decreased from $18,195,979 at the beginning of the month to $16,295,950 at the end of the month.
• The net asset value per share was $8.58 based on 1,900,000 shares.

Sentiment

Score: 3

Explanation: The document reports a significant net loss and a decrease in net asset value, indicating a negative performance for the month. The sentiment is therefore negative.

Positives

• The fund received $53,943 in dividend income and $17,838 in interest income, partially offsetting losses.
• An expense waiver of $20,649 helped to reduce the overall expenses for the month.

Negatives

• The fund experienced significant losses in commodity futures trading, both realized and unrealized.
• The net asset value of the fund decreased substantially during the month.

Risks

• The fund's performance is highly dependent on the volatile natural gas futures market.
• Continued losses in commodity futures trading could further erode the fund's net asset value.
• Fluctuations in market conditions could impact the fund's ability to generate positive returns.

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 volatility inherent in natural gas markets, which can significantly impact funds that invest in commodity futures. The losses highlight the risks associated with leveraged commodity trading.

Comparison to Industry Standards

• It is difficult to make a direct comparison without knowing the specific strategies and holdings of other natural gas funds.
• However, the reported losses are significant and would likely be considered a negative performance compared to funds that had positive returns in the same period.
• Other commodity funds may have different risk profiles and may have performed differently based on their specific investment strategies.

Stakeholder Impact

• Shareholders will experience a decrease in the value of their investment due to the reported losses.
• The fund's performance may impact investor confidence and future investment decisions.

Key Dates

Keywords

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