8-K: United States 12 Month Natural Gas Fund Reports $806,694 Net Income for May 2024

The United States 12 Month Natural Gas Fund reported a net income of $806,694 for the month of May 2024, driven by unrealized gains on commodity futures.

Summary

• The United States 12 Month Natural Gas Fund, LP released its monthly account statement for May 2024.
• The fund reported a net income of $806,694 for the month.
• This income was primarily driven by an unrealized gain of $885,601 on the market value of commodity futures.
• The fund also experienced a realized trading loss of $128,441 on commodity futures.
• Dividend income contributed $48,686 and interest income added $34,255 to the total income.
• Total expenses for the month were $33,407, including management fees, professional fees, brokerage commissions, directors' fees and insurance, and license fees.
• The net asset value of the fund increased from $18,121,169 at the beginning of May to $18,927,863 at the end of the month.
• The net asset value per share was $8.23, based on 2,300,000 shares.

Sentiment

Score: 7

Explanation: The sentiment is positive due to the strong net income and increase in net asset value, although the realized trading loss and reliance on unrealized gains temper the overall outlook.

Positives

• The fund generated a substantial net income of $806,694 for the month.
• The increase in net asset value demonstrates positive performance for the month.
• The fund benefited from significant unrealized gains on commodity futures.

Negatives

• The fund experienced a realized trading loss of $128,441 on commodity futures.
• The fund incurred $33,407 in expenses for the month.

Risks

• The fund's performance is heavily reliant on the volatile commodity futures market.
• Realized trading losses can negatively impact the fund's overall performance.
• Fluctuations in market value of commodity futures can lead to significant gains or losses.

Management Comments

• Stuart P. Crumbaugh, Chief Financial Officer, stated 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 commodity fund, which is subject to the volatility of the natural gas market and commodity futures trading. The fund's performance is influenced by factors such as supply and demand, weather patterns, and global economic conditions.

Comparison to Industry Standards

• The fund's performance is comparable to other commodity-focused exchange-traded products (ETPs) that track natural gas futures.
• The fund's reliance on unrealized gains is typical for commodity funds, where market fluctuations can significantly impact short-term results.
• Other similar funds include the United States Natural Gas Fund (UNG) and the ProShares Ultra Bloomberg Natural Gas (BOIL), which also experience similar volatility and reliance on futures contracts.

Stakeholder Impact

• Shareholders will likely view the positive net income and increase in net asset value favorably.
• The fund's performance directly impacts the value of their investment.

Key Dates

Keywords

Natural Gas, Commodity Futures, Net Asset Value, Monthly Account Statement, Financial Performance, Investment Fund