8-K: United States 12 Month Natural Gas Fund Reports $1.96 Million Net Loss for July

The United States 12 Month Natural Gas Fund, LP reported a net loss of $1.96 million for the month of July 2024, primarily driven by trading losses on commodity futures.

Summary

• The United States 12 Month Natural Gas Fund, LP reported a net loss of $1,959,916 for the month ended July 31, 2024.
• This loss was primarily due to a realized trading loss of $482,854 and an unrealized loss of $1,525,845 on commodity futures.
• The fund also generated $48,654 in dividend income and $25,713 in interest income.
• Total expenses for the month were $32,456, which was reduced by an expense waiver of $4,772, resulting in net expenses of $27,684.
• The fund's net asset value decreased from $18,218,430 at the beginning of the month to $17,348,742 at the end of the month.
• The net asset value per share was $7.38 based on 2,350,000 shares.

Sentiment

Score: 3

Explanation: The document reports a significant net loss and a decrease in net asset value, indicating a negative performance for the month. The sentiment is therefore negative.

Positives

• The fund generated $48,654 in dividend income and $25,713 in interest income.
• An expense waiver of $4,772 helped to reduce total expenses.

Negatives

• The fund experienced significant losses from trading in commodity futures.
• The fund's net asset value decreased substantially during the month.

Risks

• The fund's performance is highly dependent on the volatile commodity futures market.
• Unrealized losses can significantly impact the fund's net asset value.

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 markets, particularly natural gas, and the challenges faced by funds that invest in these markets. The losses are likely influenced by market fluctuations and trading strategies employed by the fund.

Comparison to Industry Standards

• The fund's performance is likely to be compared to other natural gas and commodity-focused exchange-traded funds (ETFs).
• For example, funds like the United States Natural Gas Fund (UNG) and other similar commodity ETFs would be considered benchmarks.
• The reported loss of $1.96 million and the decrease in net asset value would be assessed against the performance of these comparable funds during the same period.
• The specific trading strategies and expense ratios of these funds would also be considered in a detailed comparison.

Stakeholder Impact

• Shareholders will likely be concerned about the significant net loss and the decrease in net asset value.
• The fund's performance may impact investor confidence and future investment decisions.

Key Dates

Keywords

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