CPER.NYSE ARCAUnited States Commodity Index Funds Trust

8-K: United States Commodity Index Funds Trust Releases Annual Financial Statements for USCI and CPER

Sentiment:

Annual Results 26 March 2025 10:08 AM

📋All filings for United States Commodity Index Funds Trust

United States Commodity Index Funds Trust announced the release of its annual financial statements for the United States Commodity Index Fund (USCI) and the United States Copper Index Fund (CPER) for the year ended December 31, 2024.

Worse than expectedCPER's net income decreased significantly from $6,916,282 in 2023 to $83,768 in 2024, indicating a worse performance compared to the previous year.

Summary

United States Commodity Index Funds Trust, which includes the United States Commodity Index Fund (USCI) and the United States Copper Index Fund (CPER), released its annual financial statements for the year ended December 31, 2024.
The financial statements were prepared in conformity with U.S. GAAP.
USCI's net asset value (NAV) per share increased from $56.34 to $66.04.
CPER's net asset value (NAV) per share increased from $24.10 to $25.23.
USCI's total assets were $191,958,260 as of December 31, 2024, compared to $169,421,178 in 2023.
CPER's total assets were $142,972,941 as of December 31, 2024, compared to $131,592,537 in 2023.
USCI's net income for 2024 was $27,325,144, compared to a net loss of $3,093,973 in 2023.
CPER's net income for 2024 was $83,768, compared to $6,916,282 in 2023.
USCI held 4,066 futures contracts as of December 31, 2024.
CPER held 1,396 futures contracts as of December 31, 2024.
The management fee for USCI is 0.80% per annum of average daily total net assets, and for CPER, it's 0.65%.

Sentiment

Score: 6

Explanation: The sentiment is neutral. While USCI shows positive growth, CPER's performance declined. The report is factual and provides necessary financial disclosures without overly positive or negative language.

Positives

USCI's NAV per share increased from $56.34 to $66.04.
CPER's NAV per share increased from $24.10 to $25.23.
USCI's net income for 2024 was $27,325,144, compared to a net loss of $3,093,973 in 2023.
USCI's total assets increased to $191,958,260.
CPER's total assets increased to $142,972,941.

Negatives

CPER's net income decreased to $83,768 in 2024 from $6,916,282 in 2023.
CPER experienced a negative change in unrealized gain (loss) on open commodity futures contracts of $(13,777,846).

Risks

Each Trust Series is exposed to market risk and credit risk due to trading in futures contracts and other derivatives.
Significant market volatility in the commodity markets can impact the value, pricing, and liquidity of investments.
The insolvency of an FCM or the Trust Series custodian could result in a loss of assets.
Natural market forces called contango and backwardation have impacted the total return on an investment in USCI's and CPER's shares.

Future Outlook

The document does not contain specific forward-looking statements beyond the standard disclosures about investment objectives and strategies.

Management Comments

John P. Love, President and Chief Executive Officer of United States Commodity Funds LLC, expresses gratitude for continued interest in USCI and CPER.
John P. Love affirms that the information contained in the Annual Report for the years ended December 31, 2024, 2023 and 2022 is accurate and complete to the best of his knowledge and belief.

Industry Context

These funds operate in the commodity ETF space, where performance is closely tied to the underlying commodity indices and futures contracts; the report provides transparency on fund operations and performance for investors in commodity-based ETFs.

Comparison to Industry Standards

USCI and CPER are commodity-based exchange-traded funds (ETFs) that track specific commodity indices.
Comparable companies include other commodity ETF providers such as Invesco (e.g., DBC for broad commodities, JJC for copper) and Teucrium (agricultural commodities).
The management fee structure (0.80% for USCI and 0.65% for CPER) is within the typical range for commodity ETFs, but investors should compare these fees against similar funds to assess competitiveness.
The funds' investment objective to track the daily percentage changes of their respective indices within a plus/minus 10% range is a standard approach for commodity ETFs, but the actual tracking performance should be monitored.
The reliance on futures contracts exposes the funds to contango and backwardation effects, which are common challenges for commodity ETFs and can impact long-term returns.

Stakeholder Impact

Shareholders: The financial statements provide transparency to shareholders regarding the funds' performance, assets, and liabilities.
Authorized Participants: The report details the creation and redemption process for shares, which is relevant to authorized participants.
USCF: The report outlines the management fees and other related party transactions involving USCF, the sponsor of the Trust.

Key Dates

Date	Description
December 21, 2009	The United States Commodity Index Funds Trust was organized as a Delaware statutory trust.
April 1, 2010	USCI was designated as the first series of the Trust.
August 10, 2010	USCI shares were first made available to the public and listed on the NYSE Arca.
November 26, 2010	CPER was formed as a commodity pool.
November 15, 2011	CPER shares were first made available to the public and listed on the NYSE Arca.
May 1, 2012	Authorized Participants may purchase Creation Baskets or redeem Redemption Baskets for USCI and CPER only in blocks of 50,000 shares.
December 15, 2017	USCF and the Trustee entered into the Fourth Amended and Restated Declaration of Trust and Trust Agreement.
March 20, 2020	USCF engaged The Bank of New York Mellon to provide custodial, administrative and accounting, and transfer agency services.
April 1, 2020	The BNY Mellon Agreements became effective.
April 30, 2021	10,000,000 additional shares were registered for USCI and 50,000,000 additional shares were registered for CPER; USCF terminated expense waiver for CPER.
August 2021	The Trust, on behalf of each of USCI and CPER, entered into a Commodity Futures Customer Agreement with Marex North America, LLC (MNA).
January 27, 2023	The SEC declared effective registration statements filed by each of USCI and CPER that registered an unlimited number of shares.
December 31, 2024	End of the reporting period for the annual financial statements.
March 26, 2025	Date of report and release of annual financial statements.

Keywords

financial statements, USCI, CPER, commodity index fund, copper index fund, futures contracts, net asset value, commodity ETFs

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