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United States Gasoline Fund, LP has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports a decrease in the net asset value (NAV) per share from $60.64 to $58.51, reflecting a decrease of approximately 3.51% over the period. The decline is attributed to the decrease in the price of the Benchmark Futures Contract, which fell by 8.13%.
UGA held 1,188 futures contracts for gasoline on the NYMEX (CME-0.02%) as of September 30, 2024, with no futures contracts held on ICE Futures (ICE+0.69%). The fund's total assets increased to $96,704,661 from $85,166,194 at the end of the previous year.
Total income for the nine months ended September 30, 2024, was reported as $3,804,675, primarily from dividend and interest income on Treasuries, cash, and cash equivalents. Total expenses for the same period, including management fees and brokerage commissions, amounted to $733,196.
The fund's investment strategy involves maintaining a portfolio that closely tracks the daily percentage changes in the Benchmark Futures Contract. For the 30-valuation days ended September 30, 2024, the average daily change in the Benchmark Futures Contract was -0.273%, while UGA's NAV changed by -0.258% on average.
UGA's investment objective is to reflect the daily changes in the spot price of gasoline, as measured by the Benchmark Futures Contract, plus interest earned on collateral holdings, less expenses. The fund does not aim for its NAV or market price to equal the spot price of gasoline.
The filing outlines the risks associated with investing in futures contracts, including market risk, credit risk, and the impact of contango and backwardation on returns. UGA's management monitors these risks and adjusts its investment strategy accordingly.
UGA's liquidity needs are met through the sale of creation baskets and income earned on its investments. The fund does not use leverage and maintains a portfolio of liquid assets to meet margin and collateral requirements.
The filing also provides updates on legal proceedings involving USCF and USO (USO-0.42%), including the resolution of SEC and CFTC investigations, and ongoing class action and derivative litigation.
UGA's management emphasizes the impact of geopolitical events, such as the Russia-Ukraine war and Middle East conflicts, on commodity prices and market volatility, which may affect the fund's performance.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the United States Gasoline Fund LP quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.