8-K: United States 12 Month Natural Gas Fund Reports Net Loss for March 2024

The United States 12 Month Natural Gas Fund reported a net loss of $678,603 for the month ended March 31, 2024, primarily due to trading losses on commodity futures.

Summary

• The United States 12 Month Natural Gas Fund, LP released its monthly account statement for March 2024.
• The fund experienced a net loss of $678,603 for the month.
• This loss was primarily driven by a realized trading loss of $505,236 and an unrealized loss of $232,784 on commodity futures.
• The fund did generate some income from dividends ($48,681) and interest ($22,530).
• Total expenses for the month were $32,370, which was reduced by an expense waiver of $19,876, resulting in net expenses of $12,494.
• The fund's net asset value increased from $16,200,767 at the beginning of the month to $17,100,587 at the end of the month, due to the addition of 200,000 shares.
• The net asset value per share was $7.77 based on 2,200,000 shares.

Sentiment

Score: 3

Explanation: The document reports a significant net loss, indicating poor performance for the month. While there were some positive aspects, the overall sentiment is negative due to the substantial losses.

Positives

• The fund generated $48,681 in dividend income and $22,530 in interest income.
• The fund received an expense waiver of $19,876, reducing overall expenses.
• The fund's net asset value increased during the month due to the addition of 200,000 shares.

Negatives

• The fund experienced a significant net loss of $678,603 for the month.
• The primary driver of the loss was trading losses on commodity futures, both realized and unrealized.
• Total expenses were $32,370 before the expense waiver.

Risks

• The fund's performance is highly dependent on the volatile commodity futures market.
• Trading 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 performance of a natural gas commodity fund, which is subject to the volatility of the energy markets. The losses are indicative of the risks associated with trading commodity futures.

Comparison to Industry Standards

• It is difficult to make a direct comparison without knowing the performance of other similar natural gas funds for the same period.
• However, the reported losses highlight the inherent risks in commodity trading, which is a common factor across similar funds.
• The performance of other commodity funds would need to be reviewed to determine if the results are in line with industry benchmarks.

Stakeholder Impact

• Shareholders will be negatively impacted by the reported net loss.
• The fund's performance may affect investor confidence.
• The fund's performance may impact the value of the shares.

Key Dates

Keywords

Natural Gas, Commodity Futures, Net Asset Value, Trading Loss, Monthly Account Statement, UNL, USCF