8-K: United States 12 Month Natural Gas Fund Reports August Performance with Net Loss

The United States 12 Month Natural Gas Fund reported a net loss of $396,746 for August 2024, driven by trading losses and expenses.

Summary

• The United States 12 Month Natural Gas Fund, LP released its monthly account statement for August 2024.
• The fund experienced a net loss of $396,746 for the month.
• This loss was primarily due to a realized trading loss of $265,307 and an unrealized loss of $174,493 on commodity futures.
• The fund did generate some income from dividends ($48,447) and interest ($32,540).
• Total expenses for the month were $38,983, including management fees, professional fees, and brokerage commissions.
• The fund's net asset value increased from $17,348,742 at the beginning of the month to $18,470,740 at the end of the month, due to the addition of 200,000 shares.
• The net asset value per share was $7.24 based on 2,550,000 shares.

Sentiment

Score: 3

Explanation: The document reports a net loss and significant trading losses, indicating a negative sentiment from an investment perspective.

Positives

• The fund generated $48,447 in dividend income and $32,540 in interest income.
• The fund's net asset value increased from $17,348,742 to $18,470,740 due to the addition of 200,000 shares.

Negatives

• The fund experienced a significant net loss of $396,746 for the month.
• The fund had a realized trading loss of $265,307 on commodity futures.
• The fund had an unrealized loss of $174,493 on commodity futures.
• Total expenses for the month were $38,983.

Risks

• The fund's performance is heavily reliant on the volatile natural gas futures market.
• Unrealized losses can significantly impact the fund's net asset value.
• Fluctuations in commodity prices can lead to further losses.

Management Comments

• The Chief Financial Officer, Stuart P. Crumbaugh, 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 inherent volatility of commodity-based investment funds, particularly those focused on natural gas, which is known for its price fluctuations. The fund's performance is directly tied to the movements in the natural gas futures market.

Comparison to Industry Standards

• The fund's performance is typical for commodity-based ETFs, which can experience significant gains and losses depending on market conditions.
• Other natural gas ETFs, such as the First Trust Natural Gas ETF (FCG) and the ProShares Ultra Bloomberg Natural Gas (BOIL), also experience similar volatility.
• The reported loss is within the expected range for a fund exposed to the natural gas market during a period of price fluctuations.

Stakeholder Impact

• Shareholders will be concerned about the reported net loss and the impact on the fund's net asset value.
• The fund's performance may affect investor confidence and future investment decisions.

Key Dates

Keywords

Natural Gas, Commodity Futures, Net Asset Value, Trading Loss, Monthly Account Statement, UNL, United States 12 Month Natural Gas Fund