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

The United States 12 Month Natural Gas Fund, LP reported a net loss of $496,544 for January 2024, alongside changes in net asset value due to share transactions.

Summary

• The United States 12 Month Natural Gas Fund, LP released its monthly account statement for January 2024.
• The fund experienced a net loss of $496,544 for the month.
• This loss is primarily attributed to a realized trading loss of $842,679 on commodity futures, partially offset by unrealized gains and other income.
• The fund's net asset value increased from $16,295,950 to $23,875,018 during the month, influenced by share additions and withdrawals.
• The net asset value per share was $8.38 at the end of January, based on 2,850,000 shares.

Sentiment

Score: 4

Explanation: The sentiment is negative due to the reported net loss, although the increase in net asset value provides a slight offset. The realized trading loss is a significant concern.

Positives

• The fund experienced unrealized gains of $286,889 on commodity futures.
• The fund had dividend income of $48,764 and interest income of $22,282.
• The fund's net asset value increased significantly during the month.

Negatives

• The fund incurred a net loss of $496,544 for January.
• The fund experienced a significant realized trading loss of $842,679 on commodity futures.
• Total expenses for the month were $34,259, although this was reduced by an expense waiver of $21,759.

Risks

• The fund's performance is heavily influenced by the volatility of commodity futures markets.
• Realized trading losses can significantly impact the fund's overall profitability.
• Fluctuations in market value of commodity futures can lead to unrealized gains or losses.

Future Outlook

The document does not contain any specific forward-looking statements or guidance.

Management Comments

• Stuart P. Crumbaugh, Chief Financial Officer of United States Commodity Funds LLC, 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 commodity-based exchange-traded fund, which is subject to the volatility of the natural gas market. The results are typical for such a fund, where gains and losses are common due to market fluctuations.

Comparison to Industry Standards

• Comparing to other natural gas ETFs, the fund's performance is within the expected range given the market conditions in January.
• For example, the ProShares Ultra Bloomberg Natural Gas ETF (BOIL) and the United States Natural Gas Fund LP (UNG) also experienced volatility during this period, reflecting the broader market trends.
• The reported loss is not unusual for commodity-based funds, which are subject to market fluctuations and trading risks.

Stakeholder Impact

• Shareholders may be concerned about the net loss for the month.
• The increase in net asset value may provide some reassurance to investors.
• The fund's performance will likely impact investor confidence and future investment decisions.

Key Dates

Keywords

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