Supplement to United States Oil Fund, LP

 

Filed pursuant to Rule 424(b)(3)
File No. 333-176765

UNITED STATES OIL FUND, LP

 

 

Supplement dated December 28, 2012

to

Prospectus dated June 11, 2012 as amended

 

 

This supplement contains information, which amends, supplements or modifies certain information contained in the Prospectus of United States Oil Fund, LP dated June 11, 2012, as amended July 30, 2012. Please read it and keep it with your Prospectus for future reference.

Risk Disclosure Statement

The Risk Disclosure Statement is replaced with the following:

COMMODITY FUTURES TRADING COMMISSION

RISK DISCLOSURE STATEMENT

YOU SHOULD CAREFULLY CONSIDER WHETHER YOUR FINANCIAL CONDITION PERMITS YOU TO PARTICIPATE IN A COMMODITY POOL. IN SO DOING, YOU SHOULD BE AWARE THAT COMMODITY INTEREST TRADING CAN QUICKLY LEAD TO LARGE LOSSES AS WELL AS GAINS. SUCH TRADING LOSSES CAN SHARPLY REDUCE THE NET ASSET VALUE OF THE POOL AND CONSEQUENTLY THE VALUE OF YOUR INTEREST IN THE POOL. IN ADDITION, RESTRICTIONS ON REDEMPTIONS MAY AFFECT YOUR ABILITY TO WITHDRAW YOUR PARTICIPATION IN THE POOL.

FURTHER, COMMODITY POOLS MAY BE SUBJECT TO SUBSTANTIAL CHARGES FOR MANAGEMENT, AND ADVISORY AND BROKERAGE FEES. IT MAY BE NECESSARY FOR THOSE POOLS THAT ARE SUBJECT TO THESE CHARGES TO MAKE SUBSTANTIAL TRADING PROFITS TO AVOID DEPLETION OR EXHAUSTION OF THEIR ASSETS. THIS DISCLOSURE DOCUMENT CONTAINS A COMPLETE DESCRIPTION OF EACH EXPENSE TO BE CHARGED THIS POOL AT PAGE 55 AND A STATEMENT OF THE PERCENTAGE RETURN NECESSARY TO BREAK EVEN, THAT IS, TO RECOVER THE AMOUNT OF YOUR INITIAL INVESTMENT, AT PAGE 7.

THIS BRIEF STATEMENT CANNOT DISCLOSE ALL THE RISKS AND OTHER FACTORS NECESSARY TO EVALUATE YOUR PARTICIPATION IN THIS COMMODITY POOL. THEREFORE, BEFORE YOU DECIDE TO PARTICIPATE IN THIS COMMODITY POOL, YOU SHOULD CAREFULLY STUDY THIS DISCLOSURE DOCUMENT, INCLUDING A DESCRIPTION OF THE PRINCIPAL RISK FACTORS OF THIS INVESTMENT, AT PAGE 11.

YOU SHOULD ALSO BE AWARE THAT THIS COMMODITY POOL MAY TRADE FOREIGN FUTURES OR OPTIONS CONTRACTS. TRANSACTIONS ON MARKETS LOCATED OUTSIDE THE UNITED STATES, INCLUDING MARKETS FORMALLY LINKED TO A UNITED STATES MARKET, MAY BE SUBJECT TO REGULATIONS WHICH OFFER DIFFERENT OR DIMINISHED PROTECTION TO THE POOL AND ITS PARTICIPANTS. FURTHER, UNITED STATES REGULATORY AUTHORITIES MAY BE UNABLE TO COMPEL THE ENFORCEMENT OF THE RULES OF REGULATORY AUTHORITIES OR MARKETS IN NON-UNITED STATES JURISDICTIONS WHERE TRANSACTIONS FOR THIS POOL MAY BE EFFECTED.

 

1


SWAPS TRANSACTIONS, LIKE OTHER FINANCIAL TRANSACTIONS, INVOLVE A VARIETY OF SIGNIFICANT RISKS. THE SPECIFIC RISKS PRESENTED BY A PARTICULAR SWAP TRANSACTION NECESSARILY DEPEND UPON THE TERMS OF THE TRANSACTION AND YOUR CIRCUMSTANCES. IN GENERAL, HOWEVER, ALL SWAPS TRANSACTIONS INVOLVE SOME COMBINATION OF MARKET RISK, CREDIT RISK, COUNTERPARTY CREDIT RISK, FUNDING RISK, LIQUIDITY RISK, AND OPERATIONAL RISK.

HIGHLY CUSTOMIZED SWAPS TRANSACTIONS IN PARTICULAR MAY INCREASE LIQUIDITY RISK, WHICH MAY RESULT IN A SUSPENSION OF REDEMPTIONS. HIGHLY LEVERAGED TRANSACTIONS MAY EXPERIENCE SUBSTANTIAL GAINS OR LOSSES IN VALUE AS A RESULT OF RELATIVELY SMALL CHANGES IN THE VALUE OR LEVEL OF AN UNDERLYING OR RELATED MARKET FACTOR.

IN EVALUATING THE RISKS AND CONTRACTUAL OBLIGATIONS ASSOCIATED WITH A PARTICULAR SWAP TRANSACTION, IT IS IMPORTANT TO CONSIDER THAT A SWAP TRANSACTION MAY BE MODIFIED OR TERMINATED ONLY BY MUTUAL CONSENT OF THE ORIGINAL PARTIES AND SUBJECT TO AGREEMENT ON INDIVIDUALLY NEGOTIATED TERMS. THEREFORE, IT MAY NOT BE POSSIBLE FOR THE COMMODITY POOL OPERATOR TO MODIFY, TERMINATE, OR OFFSET THE POOL’S OBLIGATIONS OR THE POOL’S EXPOSURE TO THE RISKS ASSOCIATED WITH A TRANSACTION PRIOR TO ITS SCHEDULED TERMINATION DATE.

Breakeven Analysis (page 7)

This supplement replaces the breakeven analysis table and related footnotes with the following:

Breakeven Analysis

The breakeven analysis below indicates the approximate dollar returns and percentage required for the redemption value of a hypothetical investment in a single unit to equal the amount invested twelve months after the investment was made. For purposes of this breakeven analysis, we have assumed an initial selling price per unit of $31.81 which equals the net asset value per unit on October 31, 2012. This breakeven analysis refers to the redemption of baskets by Authorized Purchasers and is not related to any gains an individual investor would have to achieve in order to break even. The breakeven analysis is an approximation only.

 

Assumed initial selling price per unit

   $ 31.81   

Management Fee (0.45%)(1)

   $ 0.15   

Creation Basket Fee(2)

   $ (0.01 )

Estimated Brokerage Fee (0.025%)(3)

   $ 0.01   

Interest Income (0.110%)(4)

   $ (0.04 )

Registration Fees(5)

   $ 0.01   

NYMEX Licensing Fee(6)

   $ 0.01   

Independent Directors’ and Officers’ Fees(7)

   $ 0.01   

Fees and expenses associated with tax accounting and reporting(8)

   $ 0.03   

Amount of trading income (loss) required for the redemption value at the end of one year to equal the initial selling price of the unit

   $ 0.17   

Percentage of initial selling price per unit

     0.53

 

1 

USOF is contractually obligated to pay the General Partner a management fee based on daily net assets and paid monthly of 0.45% per annum on average net assets.

2 

Authorized Purchasers are required to pay a Creation Basket fee of $1,000 for each order they place to create one or more baskets. An order must be at least one basket, which is 100,000 units. This breakeven analysis assumes a hypothetical investment in a single unit so the Creation Basket fee is $.01 ($1,000/100,000).

 

2


3 

This amount is based on the actual brokerage fees for USOF calculated on an annualized basis.

4 

USOF earns interest on funds it deposits with the futures commission merchant and the Custodian and it estimates that the interest rate will be 0.11% based on the current interest rate on three-month Treasury Bills as of October 31, 2012. The actual rate may vary.

5 

USOF pays fees to the SEC and Financial Industry Regulatory Authority (“FINRA”) to register its units for sale. USOF estimates that fees will be 0.003% based on $1,282,081,528 in assets under management through October 31, 2012. This fee may vary in future years.

6 

The NYMEX licensing fee is 0.015% of the aggregate assets of USOF and the Related Public Funds (except for USBO, USCI, CPER, USAG and USMI). For more information, see “Fees of USOF.”

7 

The foregoing assumes that the assets of USOF are aggregated with those of the Related Public Funds, that the aggregate fees paid to the independent directors for 2012 was $540,000 that the allocable portion of the fees borne by USOF equals $229,954, and that USOF has $1,282,081,528 in assets which is the amount of assets as of October 31, 2012.

8 

USOF estimates the aggregate costs attributable to tax accounting and reporting for 2012 is $1,200,000. The number in the break-even table assumes USOF has $1,282,081,528 in assets which is the amount of assets as of October 31, 2012.

Prior Performance of USOF (pages 31- 34)

The General Partner is making updates to the “Prior Performance of USOF” section effective as of the date of this prospectus supplement.

USOF is a commodity pool and issues units traded on the NYSE Arca. The investment objective of USOF is for the changes in percentage terms of its units’ NAV to reflect the changes in percentage terms of the spot price of light, sweet crude oil delivered to Cushing, Oklahoma, as measured by the changes in the price of the futures contract on light, sweet crude oil traded on the NYMEX, less USOF’s expenses. USOF’s units began trading on April 10, 2006 and are offered on a continuous basis. USOF may invest in a mixture of listed crude oil futures contracts, other non-listed oil related investments, Treasuries, cash and cash equivalents. As of October 31, 2012, the total amount of money raised by USOF from its authorized purchasers was $34,823,610,125; the total number of authorized purchasers of USOF was 19; the number of baskets purchased by authorized purchasers of USOF was 7,891; the number of baskets redeemed by authorized purchasers of USOF was 7,488; and the aggregate amount of units purchased was 770,600,000. For more information on the performance of USOF, see the Performance Tables below.

Since the commencement of the offering of USOF units to the public on April 10, 2006 to October 31, 2012, the simple average daily change in its benchmark oil futures contract was (0.019)%, while the simple average daily change in the NAV of USOF over the same time period was (0.017)%. The average daily difference was (0.002)% (or (0.2) basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the daily movement of the benchmark oil futures contract, the average error in daily tracking by the NAV was 0.520%, meaning that over this time period USOF’s tracking error was within the plus or minus 10% range established as its benchmark tracking goal.

 

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USOF:

Experience in Raising and Investing in USOF through October 31, 2012

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

 

Dollar Amount Offered*

   $ 71,257,630,000   

Dollar Amount Raised

   $ 34,823,610,125   

Organizational and Offering Expenses:**

  

SEC registration fee

   $ 2,485,175   

FINRA registration fee

   $ 604,000   

Listing fee

   $ 5,000   

Auditor’s fees and expenses

   $ 77,850   

Legal fees and expenses

   $ 1,681,130   

Printing expenses

   $ 68,417   

Length of USOF offering

     Continuous   

 

* Reflects the offering price per unit set forth on the cover page of the registration statement registering such units filed with the SEC.
** These expenses were paid for by the General Partner.

Compensation to the General Partner and Other Compensation USOF:

Expenses paid by USOF through October 31, 2012 in Dollar Terms:

 

Expenses

   Amount in Dollar Terms  

Amount Paid or Accrued to General Partner

   $ 40,981,356   

Amount Paid or Accrued in Portfolio Brokerage Commissions

   $ 11,881,889   

Other Amounts Paid or Accrued*

   $ 13,704,922   

Total Expenses Paid or Accrued

   $ 66,568,167   

 

* Includes expenses relating to legal fees, auditing fees, printing expenses, licensing fee, tax reporting fees and miscellaneous expenses.

 

4


Expenses paid by USOF through October 31, 2012 as a Percentage of Average Daily Net Assets:

 

Expenses

   Amount As a Percentage of
Average Daily Net Assets

Amount Paid or Accrued to General Partner

   0.46% annualized

Amount Paid or Accrued in Portfolio Brokerage Commissions

   0.13% annualized

Other Amounts Paid or Accrued

   0.15% annualized

Total Expenses Paid or Accrued

   0.74% annualized

Total Expenses Paid or Accrued Including Expenses Waived

   0.74% annualized

USOF Performance:

  

Name of Commodity Pool

   USOF

Type of Commodity Pool

   Exchange traded security

Inception of Trading

   April 10, 2006

Aggregate Subscriptions (from inception through October 31, 2012)

   $34,823,610,125

Total Net Assets as of October 31, 2012

   $1,282,081,528

Initial NAV per Unit as of Inception

   $67.39

NAV per Unit as of October 31, 2012

   $31.81

Worst Monthly Percentage Draw-down

   Oct 2008 (31.57)%

Worst Peak-to-Valley Draw-down

   June 2008 – Feb 2009
(75.84)%

Number of Unitholders (as of December 31, 2011)

   158,586

COMPOSITE PERFORMANCE DATA FOR USOF

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

 

                   Rates of Return*        

Month

     2007     2008     2009     2010     2011     2012  

January

       (6.55 )%     (3.98 )%     (14.60 )%     (8.78 )%     (0.62 )%      (0.60 )% 

February

       5.63 %     11.03 %     (6.55 )%     8.62 %     1.21 %     8.25

March

       4.61 %     0.63 %     7.23 %     4.61 %     8.78 %     (4.27 )% 

April

       (4.26 )%     12.38 %     (2.38 )%     2.04 %     6.12 %     1.25

May

       (4.91 )%     12.80 %     26.69 %     (17.96 )%     (10.43 )%     (17.83 )% 

June

       9.06 %     9.90 %     4.16 %     0.47 %     (7.65 )%     (2.24 )% 

July

       10.55 %     (11.72 )%     (2.30 )%     3.57 %     (0.24 )%     3.14

August

       (4.93 )%     (6.75 )%     (1.98 )%     (9.47 )%     (7.66 )%     9.18

September

       12.11 %     (2.97 )%     0.25 %     8.97 %     (11.08 )%      (4.82 )% 

October

       16.98 %     (31.57 )%     8.43 %     0.89 %     17.32 %     (6.93 )% 

November

       (4.82 )%     (20.65 )%     (0.51 )%     2.53 %     7.76 %  

December

       8.66 %     (22.16 )%     (0.03 )%     8.01 %     (1.78 )%   
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Annual Rate of Return

       46.15 %     (54.75 )%     14.14 %     (0.49 )%     (2.31 )%      (16.44 )%** 

 

* The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month, subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.
** Through October 31, 2012

 

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Worst Peak-to-Valley Draw-down: The largest percentage decline in the NAV per unit over the history of the fund. This need not be a continuous decline, but can be a series of positive and negative returns where the negative returns are larger than the positive returns. Worst Peak-to-Valley Draw-down represents the greatest percentage decline from any month-end NAV per unit that occurs without such month-end NAV per unit being equaled or exceeded as of a subsequent month-end. For example, if the NAV per unit declined by $1 in each of January and February, increased by $1 in March and declined again by $2 in April, a “peak-to-valley drawdown” analysis conducted as of the end of April would consider that “drawdown” to be still continuing and to be $3 in amount, whereas if the NAV per unit had increased by $2 in March, the January – February drawdown would have ended as of the end of February at the $2 level.

The General Partner is also making updates to the “Prior Performance of the General Partner and Related Public Funds” section effective as of the date of this prospectus supplement.

Prior Performance of the General Partner and Related Public Funds (pages SAI 10 – SAI 21)

This supplement replaces the prior performance of the General Partner and Related Public Funds with the following:

Prior Performance of the General Partner and Related Public Funds

The General Partner is also currently the general partner of USDHO, US12OF, USNG, UGA, US12NG, USSO and USBO and the sponsor of USCI, CPER, USAG and USMI (collectively referred to herein as the “Related Public Funds”). Each of the General Partner/Sponsor and the Related Public Funds is located in California.

USDHO is a commodity pool and issues units traded on the NYSE Arca. The investment objective of USDHO is for the daily changes in percentage terms of its units’ NAV to reflect the daily changes in percentage terms of the spot price of heating oil for delivery to the New York harbor, as measured by the changes in the price of the futures contract on heating oil traded on the NYMEX, less USDHO’s expenses. USDHO’s units began trading on April 9, 2008 and are offered on a continuous basis. USDHO may invest in a mixture of listed heating oil futures contracts, other non-listed heating oil-related investments, Treasuries, cash and cash equivalents. As of October 31, 2012, the total amount of money raised by USDHO from its Authorized Purchasers was $33,857,235; the total number of Authorized Purchasers of USDHO was 12; the number of baskets purchased by Authorized Purchasers of USDHO was 10; the number of baskets redeemed by Authorized Purchasers of USDHO was 9; and the aggregate amount of units purchased was 1,000,000.

Since the commencement of the offering of USDHO units to the public on April 9, 2008 to October 31, 2012, the simple average daily change in its Benchmark Futures Contract was (0.007)%, while the simple average daily change in the NAV of USDHO over the same time period was (0.009)%. The average daily difference was 0.002% (or 0.2 basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the daily movement of the Benchmark Futures Contract, the average error in daily tracking by the NAV (0.838)%, meaning that over this time period USDHO’s tracking error was within the plus or minus 10% range established as its benchmark tracking goal.

US12OF is a commodity pool and issues units traded on the NYSE Arca. The investment objective of US12OF is for the changes in percentage terms of its units’ NAV to reflect the changes in percentage terms of the spot price of light, sweet crude oil delivered to Cushing, Oklahoma, as measured by the changes in the average of the prices of 12 futures contracts on light, sweet crude oil traded on the NYMEX, consisting of the near month contract to expire and the contracts for the following 11 months, for a total of 12 consecutive months’ contracts, less US12OF’s expenses. US12OF’s units began trading on December 6, 2007 and are offered on a continuous basis. US12OF may invest in a mixture of listed crude oil futures contracts, other non-listed oil related investments, Treasuries, cash and cash equivalents. As of October 31, 2012, the total amount of money raised by US12OF from its authorized purchasers was $456,604,020; the total number of authorized purchasers of US12OF was 10;

 

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the number of baskets purchased by authorized purchasers of US12OF was 150; the number of baskets redeemed by authorized purchasers of US12OF was 132 and the aggregate amount of units purchased was 131,500,000.

Since the commencement of the offering of US12OF units to the public on December 6, 2007 to October 31, 2012, the simple average daily change in the average price of its benchmark futures contracts was 0.004%, while the simple average daily change in the NAV of US12OF over the same time period was 0.002%. The average daily difference was (0.001)% (or (0.1) basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the daily movement of the average price of the benchmark futures contracts, the average error in daily tracking by the NAV was (0.544)%, meaning that over this time period US12OF’s tracking error was within the plus or minus 10% range established as its benchmark tracking goal.

USNG is a commodity pool and issues units traded on the NYSE Arca. The investment objective of USNG is for the changes in percentage terms of its units’ NAV to reflect the changes in percentage terms of the spot price of natural gas delivered at the Henry Hub, Louisiana as measured by the changes in the price of the futures contract for natural gas traded on the NYMEX, less USNG’s expenses. USNG’s units began trading on April 18, 2007 and are offered on a continuous basis. USNG may invest in a mixture of listed natural gas futures contracts, other non-listed natural gas related investments, Treasuries, cash and cash equivalents. As of October 31, 2012, the total amount of money raised by USNG from its authorized purchasers was $16,027,916,431; the total number of authorized purchasers of USNG was 17; the number of baskets purchased by authorized purchasers of USNG was 12,142; the number of baskets redeemed by authorized purchasers of USNG was 8,019; and the aggregate amount of units purchased was 11,969,650,000.

Since the commencement of the offering of USNG units to the public on April 18, 2007 to October 31, 2012, the simple average daily change in its benchmark futures contract was (0.162)% while the simple average daily change in the NAV of USNG over the same time period was (0.166)%. The average daily difference was 0.004% (or 0.4 basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the daily movement of the benchmark futures contract, the average error in daily tracking by the NAV was 1.632%, meaning that over this time period USNG’s tracking error was within the plus or minus 10% range established as its benchmark tracking goal.

UGA is a commodity pool and issues units traded on the NYSE Arca. The investment objective of UGA is for the changes in percentage terms of its units’ NAV to reflect the changes in percentage terms in the spot price of unleaded gasoline for delivery to the New York harbor, as measured by the changes in the price of the futures contract on gasoline traded on the NYMEX, less UGA’s expenses. UGA’s units began trading on February 26, 2008 and are offered on a continuous basis. UGA may invest in a mixture of listed gasoline futures contracts, other non-listed gasoline related investments, Treasuries, cash and cash equivalents. As of October 31, 2012, the total amount of money raised by UGA from its authorized purchasers was $341,146,803 the total number of authorized purchasers of UGA was 13; the number of baskets purchased by authorized purchasers of UGA was 90; the number of baskets redeemed by authorized purchasers of UGA was 96; and the aggregate amount of units purchased was 8,700,000.

Since the commencement of the offering of UGA units to the public on February 26, 2008 to October 31, 2012, the simple average daily change in its benchmark futures contract was 0.042%, while the simple average daily change in the NAV of UGA over the same time period was 0.039%. The average daily difference was (0.002)% (or (0.2) basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the daily movement of the benchmark futures contract, the average error in daily tracking by the NAV was (0.818)%, meaning that over this time period UGA’s tracking error was within the plus or minus 10% range established as its benchmark tracking goal.

US12NG is a commodity pool and issues units traded on the NYSE Arca. The investment objective of US12NG is for the daily changes in percentage terms of its units’ NAV to reflect the daily changes in percentage terms of the spot price of natural gas delivered at the Henry Hub, Louisiana, as measured by the changes in the average of

 

7


the prices of 12 futures contracts on natural gas traded on the NYMEX, consisting of the near month contract to expire and the contracts for the following 11 months, for a total of 12 consecutive months’ contracts, less US12NG’s expenses. US12NG’s units began trading on November 18, 2009 and are offered on a continuous basis. US12NG may invest in a mixture of listed natural gas futures contracts, other non-listed natural gas related investments, Treasuries, cash and cash equivalents. As of October 31, 2012, the total amount of money raised by US12NG from its authorized purchasers was $114,646,859; the total number of authorized purchasers of US12NG was 9; the number of baskets purchased by authorized purchasers of US12NG was 50; the number of baskets redeemed by authorized purchasers of US12NG was 14; and the aggregate amount of units purchased was 3,650,000.

Since the commencement of the offering of US12NG units to the public on November 18, 2009 to October 31, 2012, the simple average daily change in the average price of its benchmark futures contracts was (0.109)%, while the simple average daily change in the NAV of US12NG over the same time period was (0.112)%. The average daily difference was 0.004% (or 0.4 basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the daily movement of the average price of the benchmark futures contracts, the average error in daily tracking by the NAV was (0.588)%, meaning that over this time period US12NG’s tracking error was within the plus or minus 10% range established as its benchmark tracking goal.

USSO is a commodity pool and issues units traded on the NYSE Arca. The investment objective of USSO is for the daily changes in percentage terms of its units’ NAV to inversely reflect the daily changes in percentage terms of the spot price of light, sweet crude oil delivered to Cushing, Oklahoma as measured by the changes in the price of the futures contract for light, sweet crude oil traded on the NYMEX, less USSO’s expenses. USSO’s units began trading on September 24, 2009 and are offered on a continuous basis. USSO may invest in short positions in listed crude oil futures contracts, other non-listed oil related investments, Treasuries, cash and cash equivalents. As of October 31, 2012, the total amount of money raised by USSO from its authorized purchasers was $72,091,061; the total number of authorized purchasers of USSO was 13; the number of baskets purchased by authorized purchasers of USSO was 23; the number of baskets redeemed by authorized purchasers of USSO was 21; and the aggregate amount of units purchased was 1,750,000.

Since the commencement of the offering of USSO units to the public on September 24, 2009 to October 31, 2012, the inverse of the simple average daily change in its benchmark futures contract was (0.006)%, while the simple average daily change in the NAV of USSO over the same time period was (0.010)%. The average daily difference was 0.004% (or 0.4 basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the inverse of the daily movement of the benchmark futures contract, the average error in daily tracking by the NAV was (1.197)%, meaning that over this time period USSO’s tracking error was within the plus or minus 10% range established as its benchmark tracking goal.

USBO is a commodity pool and issues units traded on the NYSE Arca. The investment objective of USBO is for the daily changes in percentage terms of its units’ NAV to reflect the daily changes in percentage terms of the spot price of Brent crude oil as measured by the changes in the price of the futures contract for Brent crude oil traded on the ICE Futures, less USBO’s expenses. USBO’s units began trading on June 2, 2010 and are offered on a continuous basis. USBO may invest in a mixture of listed oil futures contracts, other non-listed oil related investments, Treasuries, cash and cash equivalents. As of October 31, 2012, the total amount of money raised by USBO from its authorized purchasers was $300,295,559; the total number of authorized purchasers of USBO was 9; the number of baskets purchased by authorized purchasers of USBO was 46; the number of baskets redeemed by authorized purchasers of USBO was 44; and the aggregate amount of units purchased was 4,050,000.

Since the commencement of the offering of USBO units to the public on June 2, 2010 to October 31, 2012, the simple average daily change in its benchmark futures contract was 0.092%, while the simple average daily change in the NAV of USBO over the same time period was 0.088%. The average daily difference was (0.004)% (or (0.4) basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the daily movement of the

 

8


benchmark futures contract, the average error in daily tracking by the NAV was (0.840)%, meaning that over this time period USBO’s tracking error was within the plus or minus 10% range established as its benchmark tracking goal.

USCI is a commodity pool and issues units traded on the NYSE Arca. The investment objective of USCI is for the daily changes in percentage terms of its units’ NAV to reflect the daily changes in percentage terms of the SummerHaven Dynamic Commodity Index Total Return (“Commodity Index”), less USCI’s expenses. USCI’s units began trading on August 10, 2010 and are offered on a continuous basis. USCI may invest in a mixture of listed futures contracts, other non-listed related investments, Treasuries, cash and cash equivalents. As of October 31, 2012, the total amount of money raised by USCI from its authorized purchasers was $403,303,876; the total number of authorized purchasers of USCI was 8; the number of baskets purchased by authorized purchasers of USCI was 127; the number of baskets redeemed by authorized purchasers of USCI was 29; and the aggregate amount of units purchased was 14,050,000.

Since the commencement of the offering of USCI units to the public on August 10, 2010 to October 31, 2012, the simple average daily change in the Commodity Index was 0.040%, while the simple average daily change in the NAV of USCI over the same time period was 0.035%. The average daily difference was (0.005)% (or (0.5) basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the daily movement of the Commodity Index, the average error in daily tracking by the NAV was (2.430)%, meaning that over this time period USCI’s tracking error was within the plus or minus 10% range established as its benchmark tracking goal.

CPER is a commodity pool and issues units traded on the NYSE Arca. The investment objective of CPER is for the daily changes in percentage terms of its units’ NAV to reflect the daily changes in percentage terms of the SummerHaven Dynamic Copper Index Total Return, less CPER’s expenses. CPER’s units began trading on November 15, 2011 and are offered on a continuous basis. CPER may invest in a mixture of listed futures contracts, other non-listed related investments, Treasuries, cash and cash equivalents. As of October 31, 2012, the total amount of money raised by CPER from its authorized purchasers was $2,500,000; the total number of authorized purchasers of CPER was 6; the number of baskets purchased by authorized purchasers of CPER was 1; the number of baskets redeemed by authorized purchasers of CPER was 0; and the aggregate amount of units purchased was 100,000.

Since the commencement of the offering of CPER units to the public on November 15, 2011 to October 31, 2012, the simple average daily change in the Copper Index was 0.004%, while the simple average daily change in the NAV of CPER over the same time period was 0.009%. The average daily difference was 0.004% (or 0.4 basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the daily movement of the Commodity Index, the average error in daily tracking by the NAV was (2.477)%.

USAG is a commodity pool and issues units traded on the NYSE Arca. The investment objective of USAG is for the daily changes in percentage terms of its units’ NAV to reflect the daily changes in percentage terms of the SummerHaven Dynamic Agriculture Index Total Return, less USAG’s expenses. USAG’s units began trading on April 13, 2012 and are offered on a continuous basis. USAG may invest in a mixture of listed futures contracts, other non-listed related investments, Treasuries, cash and cash equivalents. As of October 31, 2012, the total amount of money raised by USAG from its authorized purchasers was $2,500,000; the total number of authorized purchasers of USAG was 6; the number of baskets purchased by authorized purchasers of USAG was 3; the number of baskets redeemed by authorized purchasers of USAG was 2; and the aggregate amount of units purchased was 150,000.

Since the commencement of the offering of USAG units to the public on April 13, 2012 to October 31, 2012, the simple average daily change in its index was 0.061%, while the simple average daily change in the NAV of USAG over the same time period was 0.055%. The average daily difference was (0.006)% or (0.6) basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the daily movement of the benchmark component futures contracts, the average error in daily tracking by the NAV was 6.810%.

 

9


USMI is a commodity pool and issues units traded on the NYSE Arca. The investment objective of USMI is for the daily changes in percentage terms of its units’ NAV to reflect the daily changes in percentage terms of the SummerHaven Dynamic Metals Index Total Return, less USMI’s expenses. USMI’s units began trading on June 19, 2012 and are offered on a continuous basis. USMI may invest in a mixture of listed futures contracts, other non-listed related investments, Treasuries, cash and cash equivalents. As of October 31, 2012, the total amount of money raised by USMI from its authorized purchasers was $4,909,773; the total number of authorized purchasers of USMI was 6; the number of baskets purchased by authorized purchasers of USMI was 3; the number of baskets redeemed by authorized purchasers of USMI was 1; and the aggregate amount of units purchased was 150,000.

Since the commencement of the offering of USMI units to the public on June 19, 2012 to October 31, 2012, the simple average daily change in its index was 0.034%, while the simple average daily change in the NAV of USMI over the same time period was 0.028%. The average daily difference was (0.006)% or (0.6) basis points, where 1 basis point equals 1/100 of 1%). As a percentage of the daily movement of the benchmark component futures contracts, the average error in daily tracking by the NAV was (3.033)%.

The table below shows the relationship between the trading prices of the units of USOF and each of the Related Public Funds and the daily NAV of such fund, since inception through October 31, 2012. The first row shows the average amount of the variation between the Related Public Fund’s closing market price and NAV, computed on a daily basis since inception, while the second and third rows depict the maximum daily amount of the end of day premiums and discounts to NAV since inception, on a percentage basis. Management of the General Partner believes that maximum and minimum end of day premiums and discounts typically occur because trading in the units continues on the NYSE Arca until 4:00 p.m. New York time while regular trading in the benchmark futures contract on the NYMEX ceases at 2:30 p.m. New York time and the value of the relevant benchmark futures contract, for purposes of determining its end of day NAV, can be determined at that time. One known exception to this conclusion were the premiums on trading in USNG units that occurred between July 8, 2009 and September 28, 2009, when USNG suspended the issuance of Creation Baskets as a result of regulatory concern relating to the size of USNG’s positions in the natural gas futures and cleared swap markets, and there was continued demand for such units and other similar natural gas futures linked investments in the market.

 

     USOF     USNG     US12OF     UGA     USDHO     USSO     US12NG     USCI     CPER     USAG     USMI     USBO  

Average Difference

   $ (0.00 )   $ 0.40      $ (0.04 )   $ 0.00      $ 0.01      $ 0.00      $ 0.01      $ 0.05      $ (0.06   $ 0.05      $ 0.11      $ (0.05

Max Premium %

     3.88 %     2.37 %     4.11 %     6.29 %     5.75 %     3.08 %     6.68 %     2.03 %     4.31 %     4.33 %     4.23     2.06

Max Discount %

     (4.51 )%     (2.42 )%     (9.72 )%     (4.50 )%     (3.85 )%     (3.41 )%     (6.52 )%     (1.34 )%     (5.45 )%     (1.68 )%     (9.28 )%      (3.13 )% 

There are significant differences between investing in the Funds and the Related Public Funds and investing directly in the futures market. The Sponsor’s results with USOF and the Related Public Funds may not be representative of results that may be experienced with a fund directly investing in futures contracts or other managed funds investing in futures contracts. Moreover, given the different investment objectives of USOF and the Related Public Funds, the performance of USOF may not be representative of the results that may be experienced by the other Related Public Funds. For more information on the performance of the Related Public Funds see the Performance Tables below.

 

10


Performance of the Related Public Funds

USDHO:

Experience in Raising and Investing in USDHO through October 31, 2012:

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

 

Dollar Amount Offered*

   $ 1,940,500,000   

Dollar Amount Raised

   $ 33,857,235   

Organizational and Offering Expenses:**

  

SEC registration fee

   $ 142,234   

FINRA registration fee

   $ 151,000   

Listing fee

   $ 5,000   

Auditor’s fees and expenses

   $ 2,500   

Legal fees and expenses

   $ 127,303   

Printing expenses

   $ 31,751   

Length of USDHO Offering

     Continuous   

 

* Reflects the offering price per unit set forth on the cover page of the registration statement registering such units filed with the SEC.
** Through August 31, 2009, the initial offering costs and a portion of expenses were paid for by the General Partner. Following August 31, 2009, USDHO has recorded these expenses.

Compensation to the General Partner and Other Compensation

Expenses paid by USDHO through October 31, 2012 in dollar terms:

 

Expenses:

   Amount in Dollar Terms  

Amount Paid or Accrued to General Partner

   $ 272,904   

Amount Paid or Accrued in Portfolio Brokerage Commissions

   $ 41,543   

Other Amounts Paid or Accrued*

   $ 850,436   

Total Expenses Paid or Accrued:

   $ 1,164,883   

Expenses Waived**

   $ (751,017 )

Total Expenses Paid or Accrued Including Expenses Waived

   $ 413,866   

 

* Includes expenses relating to the registration of additional units, legal fees, auditing fees, printing expenses, licensing fees, tax reporting fees, prepaid insurance expenses and miscellaneous expenses and fees and expenses paid to the independent directors of the General Partner.
** The General Partner, though under no obligation to do so, agreed to pay certain expenses, to the extent that such expenses exceeded 0.15% (15 basis points) of USDHO’s NAV, on an annualized basis, through at least December 31, 2012. The General Partner has no obligation to continue such payment into subsequent periods.

 

11


Expenses paid by USDHO through October 31, 2012 as a Percentage of Average Daily Net Assets:

 

Expenses:

   Amount As a Percentage of
Average Daily Net Assets

Amount Paid or Accrued to General Partner

   0.60% annualized

Amount Paid or Accrued in Portfolio Brokerage Commissions

   0.09% annualized

Other Amounts Paid or Accrued

   1.89% annualized

Total Expenses Paid or Accrued

   2.58% annualized

Expenses Waived

   (1.67)% annualized

Total Expenses Paid Including Expenses Waived

   0.91% annualized

USDHO Performance:

  

Name of Commodity Pool

   USDHO

Type of Commodity Pool

   Exchange traded security

Inception of Trading

   April 9, 2008

Aggregate Subscriptions (from inception through October 31, 2012)

   $33,857,235

Total Net Assets as of October 31, 2012

   $6,843,795

Initial NAV Per Unit as of Inception

   $50.00

NAV per Unit as of October 31, 2012

   $34.22

Worst Monthly Percentage Draw-down

   Oct 2008 (28.63)%

Worst Peak-to-Valley Draw-down

   June 2008 – Feb 2009
(69.17%)

Number of Unitholders (as of December 31, 2011)

   2,256

COMPOSITE PERFORMANCE DATA FOR USDHO

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

 

           Rates of Return*         

Month

   2008     2009      2010      2011      2012  

January

       0.05 %      (10.17 )%      7.58 %      4.73

February

       (11.34 )%      5.78 %      6.98 %      5.62

March

       6.73 %      6.42 %      5.45 %      (1.46 )% 

April

     2.84 %**     (3.85 )%      5.13 %      4.75 %      0.17

May

     15.93 %     23.13 %      (14.14 )%      (7.17 )%      (15.28 )% 

June

     5.91 %     4.55 %      (0.40 )%      (4.01 )%      0.03

July

     (12.18 )%     0.39 %      2.48 %      4.68 %      4.98

August

     (8.41 )%     (2.71 )%      (5.88 )%      (0.85 )%      11.24

September

     (9.77 )%     (0.48 )%      12.75 %      (10.18 )%      (0.68 )% 

October

     (28.63 )%     7.60 %      (2.20 )%      10.10 %      (2.76 )% 

November

     (18.38 )%     0.19 %      2.97 %      (1.36 )%   

December

     (17.80 )%     2.23 %      8.75 %      (4.12 )%    
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Annual Rate of Return

     (56.12 )%     25.52 %      8.28 %      9.96 %      4.36 %*** 

 

* The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month, subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.
** Partial from April 9, 2008
*** Through October 31, 2012

For a definition of draw-down, please see text below “Composite Performance Data for USOF.”

 

12


US12OF:

Experience in Raising and Investing US12OF through October 31, 2012

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

 

Dollar Amount Offered

   $ 3,718,000,000   

Dollar Amount Raised

   $ 456,604,020   

Organizational and Offering Expenses:**

  

SEC registration fee

   $ 129,248   

FINRA registration fee

   $ 151,000   

Listing fee

   $ 5,000   

Auditor’s fees and expenses

   $ 10,700   

Legal fees and expenses

   $ 258,912   

Printing expenses

   $ 44,402   

Length of US12OF Offering

     Continuous   

 

* Reflects the offering price per unit set forth on the cover page of the registration statement registering such units filed with the SEC.
** Through March 31, 2009, a portion of these expenses was paid for by an affiliate of the General Partner in connection with the public offering. Following March 31, 2009, US12OF has recorded these expenses.

Compensation to the General Partner and Other Compensation

Expenses paid by US12OF through October 31, 2012 in dollar terms:

 

Expenses:

   Amount in Dollar Terms  

Amount Paid or Accrued to General Partner

   $ 3,838,237   

Amount Paid or Accrued in Portfolio Brokerage Commissions

   $ 113,877   

Other Amounts Paid or Accrued*

   $ 1,821,715   

Total Expenses Paid or Accrued

   $ 5,773,829   

Expenses Waived**

   $ (262,220 )

Total Expenses Paid or Accrued Including Expenses Waived

   $ 5,511,609   

 

* Includes expenses relating to the registration of additional units, legal fees, auditing fees, printing expenses, licensing fees, tax reporting fees, prepaid insurance expenses and miscellaneous expenses and fees and expenses paid to the independent directors of the General Partner.
** The General Partner, though under no obligation to do so, agreed to pay certain expenses, to the extent that such expenses exceeded 0.15% (15 basis points) of US12OF’s NAV, on an annualized basis, through March 31, 2009, after which date payment was no longer necessary. The General Partner has no obligation to continue such payment in subsequent periods.

 

13


Expenses paid by US12OF through October 31, 2012 as a Percentage of Average Daily Net Assets:

 

Expenses:

   Amount As a Percentage of
Average Daily Net Assets

Amount Paid or Accrued to General Partner

   0.60% annualized

Amount Paid or Accrued in Portfolio Brokerage Commissions

   0.02% annualized

Other Amounts Paid or Accrued

   0.28% annualized

Total Expenses Paid or Accrued

   0.90% annualized

Expenses Waived

   (0.04)% annualized

Total Expenses Paid or Accrued Including Expenses Waived

   0.86% annualized

US12OF Performance:

  

Name of Commodity Pool

   US12OF

Type of Commodity Pool

   Exchange traded security

Inception of Trading

   December 6, 2007

Aggregate Subscriptions (from inception through October 31, 2012)

   $456,604,020

Total Net Assets as of October 31, 2012

   $104,753,421

Initial NAV per Unit as of Inception

   $50.60

NAV per Unit as of October 31, 2012

   $38.09

Worst Monthly Percentage Draw-down

   Oct 2008 (29.59)%

Worst Peak-to-Valley Draw-down

   Jun 2008 – Feb 2009
(66.97)%

Number of Unitholders (as of December 31, 2011)

   14,016

COMPOSITE PERFORMANCE DATA FOR US12OF

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

 

                  Rates of Return*         

Month

   2007     2008      2009      2010      2011      2012  

January

       (2.03 )%      (7.11 )%      (8.40 )%      3.38 %      0.92 %

February

       10.48 %      (4.34 )%      6.73 %      1.89 %      7.71 %

March

       (0.66 )%      9.22 %      4.16 %      7.30 %      (3.03 )%

April

       11.87 %      (1.06 )%      6.37 %      5.94 %      0.65 %

May

       15.47 %      20.40 %      (15.00 )%      (8.91 )%      (16.94 )%

June

       11.59 %      4.51 %      (1.00 )%      (6.43 )%      (1.04 )%

July

       (11.39 )%      1.22 %      4.16 %      (0.43 )%      2.59 %

August

       (6.35 )%      (2.85 )%      (5.92 )%      (8.42 )%      8.54 %

September

       (13.12 )%      (0.92 )%      7.02 %      (11.50 )%      (4.27 )%

October

       (29.59 )%      8.48 %      0.05 %      15.03 %      (5.72 )%

November

       (16.17 )%      2.31 %      1.86 %      7.72 %   

December

     8.46 %**     (12.66 )%      (1.10 )%      9.10 %      (0.75 )%   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Annual Rate of Return

     8.46        (42.39 )%      29.23 %      6.29 %      1.28      (12.36 )%***

 

* The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month, subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.
** Partial from December 6, 2007
*** Through October 31, 2012

For a definition of draw-down, please see text below “Composite Performance Data for USOF.”

 

14


USNG:

Experience in Raising and Investing in USNG through October 31, 2012

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

 

Dollar Amount Offered*

   $ 24,056,500,000   

Dollar Amount Raised

   $ 16,027,916,431   

Organizational and Offering Expenses:**

  

SEC registration fee

   $ 1,341,530   

FINRA registration fee

   $ 377,500   

Listing fee

   $ 5,000   

Auditor’s fees and expenses

   $ 39,350   

Legal fees and expenses

   $ 621,670   

Printing expenses

   $ 76,946   

Length of USNG Offering

     Continuous   

 

* Reflects the offering price per unit set forth on the cover page of the registration statement registering such units filed with the SEC.
** Through April 18, 2007, these expenses were paid for by the General Partner. Following April 18, 2007, USNG has recorded these expenses.

Compensation to the General Partner and Other Compensation

Expenses paid by USNG through October 31, 2012 in dollar terms:

 

Expenses:

   Amount in Dollar Terms  

Amount Paid or Accrued to General Partner

   $ 50,936,683   

Amount Paid or Accrued in Portfolio Brokerage Commissions

   $ 27,562,716   

Other Amounts Paid or Accrued*

   $ 27,082,730   

Total Expenses Paid or Accrued

   $ 105,582,129   

 

* Includes expenses relating to the registration of additional units, legal fees, auditing fees, printing expenses, licensing fees, tax reporting fees, prepaid insurance expenses and miscellaneous expenses and fees and expenses paid to the independent directors of the General Partner.

 

15


Expenses paid by USNG through October 31, 2012 as a Percentage of Average Daily Net Assets:

 

Expenses:

   Amount As a Percentage of
Average Daily Net Assets

Amount Paid or Accrued to General Partner

   0.54% annualized

Amount Paid or Accrued in Portfolio Brokerage Commissions

   0.29% annualized

Other Amounts Paid or Accrued

   0.28% annualized

Total Expenses Paid or Accrued

   1.11% annualized

Expenses Waived

   0.12% annualized

Total Expenses Paid or Accrued Including Expenses Waived

   0.99% annualized

USNG Performance:

  

Name of Commodity Pool

   USNG

Type of Commodity Pool

   Exchange traded security

Inception of Trading

   April 18, 2007

Aggregate Subscriptions (from inception through October 31, 2012)

   $16,027,916,431

Total Net Assets as of October 31, 2012

   $1,260,039,922

Initial NAV per Unit as of Inception

   $50.00

NAV per Unit as of October 31, 2012

   $21.74

Worst Monthly Percentage Draw-down

   July 2008 (32.13)%

Worst Peak-to-Valley Draw-down

   June 2008 – March 2012
(96.81)%

Number of Unitholders (as of December 31, 2011)

   237,227

COMPOSITE PERFORMANCE DATA FOR USNG

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

 

                  Rates of Return*         

Month

   2007     2008      2009      2010      2011      2012  

January

       8.87 %      (21.49 )%      (7.65 )%      (0.17 )%      (17.62 )%

February

       15.87 %      (5.47 )%      (6.02 )%      (10.02 )%      (2.49 )%

March

       6.90 %      (11.81 )%      (21.05 )%      6.68 %      (22.99 )%

April

     4.30 %**     6.42 %      (13.92 )%      (0.87 )%      5.39 %      2.19 %

May

     (0.84 )%     6.53 %      10.37 %      8.19 %      (2.23 )%      3.00 %

June

     (15.90 )%     13.29 %      (4.63 )%      5.14 %      (7.00 )%      14.36 %

July

     (9.68 )%     (32.13 )%      (8.70 )%      6.43 %      (4.90 )%      13.96 %

August

     (13.37 )%     (13.92 )%      (27.14 )%      (22.95 )%      (2.58 )%      (14.16 )%

September

     12.28 %     (9.67 )%      26.03 %      (3.13 )%      (11.85 )%      13.32 %

October

     12.09 %     (12.34 )%      (13.31 )%      (5.83 )%      0.33 %      1.78 %

November

     (16.16 )%     (6.31 )%      (11.86 )%      (1.37 )%      (13.40 )%   

December

     0.75 %     (14.32 )%      13.91 %      4.53 %      (17.26 )%    
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Annual Rate of Return

     (27.64 )%     (35.68 )%      (56.73 )%      (40.42 )%      (46.08 )%      (16.00 )%***

 

* The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month, subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.
** Partial from April 18, 2007
*** Through October 31, 2012

For a definition of draw-down, please see text below “Composite Performance Data for USOF.”

 

16


UGA:

Experience in Raising and Investing in UGA through October 31, 2012

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

 

Dollar Amount Offered*

   $ 3,431,000,000   

Dollar Amount Raised

   $ 341,146,803   

Organizational and Offering Expenses:**

  

SEC registration fee

   $ 184,224   

FINRA registration fee

   $ 151,000   

Listing fee

   $ 5,000   

Auditor’s fees and expenses

   $ 2,500   

Legal fees and expenses

   $ 192,407   

Printing expenses

   $ 44,881   

Length of UGA Offering

     Continuous   

 

* Reflects the offering price per unit set forth on the cover page of the registration statement registering such units filed with the SEC.
** Through August 31, 2009, initial offering costs and a portion of ongoing expenses were paid for by the General Partner. Following August 31, 2009, UGA has recorded these expenses.

Compensation to the General Partner and Other Compensation

Expenses paid by UGA through October 31, 2012 in dollar terms:

 

Expenses:

   Amount in Dollar Terms  

Amount Paid or Accrued to General Partner

   $ 2,067,222   

Amount Paid or Accrued in Portfolio Brokerage Commissions

   $ 294,889   

Other Amounts Paid or Accrued*

   $ 991,125   

Total Expenses Paid or Accrued

   $ 3,353,236   

Expenses Waived**

   $ (344,138 )

Total Expenses Paid or Accrued Including Expenses Waived

   $ 3,009,098   

 

* Includes expenses relating to the registration of additional units, legal fees, auditing fees, printing expenses, licensing fees, tax reporting fees, prepaid insurance expenses and miscellaneous expenses and fees and expenses paid to the independent directors of the General Partner.
** The General Partner, though under no obligation to do so, agreed to pay certain expenses, to the extent that such expenses exceeded 0.15% (15 basis points) of UGA’s NAV, on an annualized basis, through at least December 31, 2012. The General Partner has no obligation to continue such payment into subsequent periods.

 

17


Expenses paid by UGA through October 31, 2012 as a Percentage of Average Daily Net Assets:

 

Expenses:

   Amount As a Percentage of
Average Daily Net Assets

Amount Paid or Accrued to General Partner

   0.60% annualized

Amount Paid or Accrued in Portfolio Brokerage Commissions

   0.09% annualized

Other Amounts Paid or Accrued

   0.28% annualized

Total Expenses Paid or Accrued

   0.97% annualized

Expenses Waived

   (0.10)% annualized

Total Expenses Paid or Accrued Including Expenses Waived

   0.87% annualized

UGA Performance:

  

Name of Commodity Pool

   UGA

Type of Commodity Pool

   Exchange traded security

Inception of Trading

   February 26, 2008

Aggregate Subscriptions (from inception through October 31, 2012)

   $341,146,803

Total Net Assets as of October 31, 2012

   $60,508,381

Initial NAV per Unit as of Inception

   $50.00

NAV per Unit as of October 31, 2012

   $55.01

Worst Monthly Percentage Draw-down:

   Oct 2008 (38.48)%

Worst Peak-to-Valley Draw-down:

   June 2008 – Dec 2008
(69.02)%

Number of Unitholders (as of December 31, 2011)

   26,024

COMPOSITE PERFORMANCE DATA FOR UGA

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

 

           Rates of Return*         

Month

   2008     2009      2010      2011      2012  

January

       16.23 %      (7.47 )%      2.19 %      8.37 %

February

     (0.56 )%**     0.26 %      7.33 %      9.52 %      6.83 %

March

     (2.39 )%     2.59 %      5.42 %      7.16 %      1.59 %

April

     10.94 %     2.07 %      3.15 %      10.45 %      (3.45 )%

May

     15.60 %     30.41 %      (15.54 )%      (9.21 )%      (11.05 )%

June

     4.79 %     1.65 %      1.93 %      (0.99 )%      (0.61 )%

July

     (12.79 )%     6.24 %      2.95 %      4.67 %      9.60 %

August

     (3.88 )%     (3.71 )%      (10.42 )%      (1.53 )%      13.02 %

September

     (9.36 )%     (3.38 )%      9.45 %      (11.02 )%      0.96 %

October

     (38.48 )%     10.96 %      2.19 %      3.90 %      (9.42 )%

November

     (21.35 )%     1.00 %      8.19 %      (2.05 )%   

December

     (15.72 )%     0.55 %      11.33 %      3.49   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Annual Rate of Return

     (59.58 )%     80.16      15.52      15.00      13.73 %*** 

 

* The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month, subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.
** Partial from February 26, 2008
*** Through October 31, 2012

For a definition of draw-down, please see text below “Composite Performance Data for USOF.”

 

18


US12NG:

Experience in Raising and Investing in US12NG through October 31, 2012

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

 

Dollar Amount Offered*

   $ 1,500,000,000   

Dollar Amount Raised

   $ 114,646,859   

Organizational and Offering Expenses:**

  

SEC registration fee

   $ 80,910   

FINRA registration fee

   $ 70,000   

Listing fee

   $ 5,000   

Auditor’s fees and expenses

   $ 2,500   

Legal fees and expenses

   $ 202,011   

Printing expenses

   $ 31,588   

Length of US12NG offering

     Continuous   

 

* Reflects the offering price per unit set forth on the cover page of the registration statement registering such units filed with the SEC.
** These expenses were paid for by the General Partner.

Compensation to the General Partner and Other Compensation US12NG:

Expenses paid by US12NG through October 31, 2012 in Dollar Terms:

 

Expenses

   Amount in Dollar Terms  

Amount Paid or Accrued to General Partner

   $ 738,804   

Amount Paid or Accrued in Portfolio Brokerage Commissions

   $ 38,549   

Other Amounts Paid or Accrued*

   $ 640,211   

Total Expenses Paid or Accrued

   $ 1,417,564   

Expenses Waived**

   $ (474,876 )

Total Expenses Paid or Accrued Including Expenses Waived

   $ 942,688   

 

* Includes expenses relating to legal fees, auditing fees, printing expenses, licensing fees, tax reporting fees, prepaid insurance expenses and miscellaneous expenses and fees and expenses paid to the independent directors of the General Partner.
** The General Partner, though under no obligation to do so, agreed to pay certain expenses, to the extent that such expenses exceeded 0.15% (15 basis points) of US12NG’s NAV, on an annualized basis, through at least December 31, 2012. The General Partner has no obligation to continue such payment into subsequent periods.

 

19


Expenses paid by US12NG through October 31, 2012 as a Percentage of Average Daily Net Assets:

 

Expenses

   Amount As a Percentage of
Average Daily Net Assets

Amount Paid or Accrued to General Partner

   0.74% annualized

Amount Paid or Accrued in Portfolio Brokerage Commissions

   0.04% annualized

Other Amounts Paid or Accrued

   0.63% annualized

Total Expenses Paid or Accrued

   1.41% annualized

Expenses Waived

   (0.47)% annualized

Total Expenses Paid or Accrued Including Expenses Waived

   0.94% annualized

US12NG Performance:

  

Name of Commodity Pool

   US12NG

Type of Commodity Pool

   Exchange traded security

Inception of Trading

   November 18, 2009

Aggregate Subscriptions (from inception through October 31, 2012)

   $114,646,859

Total Net Assets as of October 31, 2012

   $49,316,594

Initial NAV per Unit as of Inception

   $50.00

NAV per Unit as of October 31, 2012

   $18.97

Worst Monthly Percentage Draw-down

   March 2010 (15.47)%

Worst Peak-to-Valley Draw-down

   Dec 09 – March 2012
(69.56)%

Number of Unitholders (as of December 31, 2011)

   3,978

COMPOSITE PERFORMANCE DATA FOR US12NG

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

 

           Rates of Return*         

Month

   2009     2010      2011      2012  

January

       (5.93 )%      (0.68 )%      (12.16 )%

February

       (5.18 )%      (6.49 )%      (0.32 )%

March

       (15.47 )%      5.32 %      (11.85 )%

April

       0.07 %      3.53 %      0.00 %

May

       3.11 %      (2.23 )%      0.06 %

June

       1.27 %      (6.11 )%      6.11 %

July

       (0.05 )%      (5.28 )%      6.62 %

August

       (13.53 )%      (1.43 )%      (9.39 )%

September

       (6.23 )%      (8.12 )%      11.26 %

October

       (1.78 )%      (1.72 )%      1.55 %

November

     (0.02 )%**     (0.92 )%      (10.27 )%    

December

     7.56 %     4.88 %      (13.92 )%    
  

 

 

   

 

 

    

 

 

    

 

 

 

Annual Rate of Return

     7.54 %     (34.83 )%      (39.47 )%       (10.56 )%*** 

 

* The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month, subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.
** Partial from November 18, 2009.
*** Through October 31, 2012

For a definition of draw-down, please see text below “Composite Performance Data for USOF.”

 

20


USSO:

Experience in Raising and Investing in USSO through October 31, 2012

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

 

Dollar Amount Offered*

   $ 1,250,000,000   

Dollar Amount Raised

   $ 72,091,061   

Organizational and Offering Expenses:**

  

SEC registration fee

   $ 49,125   

FINRA registration fee

   $ 55,000   

Listing fee

   $ 5,000   

Auditor’s fees and expenses

   $ 0   

Legal fees and expenses

   $ 408,335   

Printing expenses

   $ 23,945   

Length of USSO offering

     Continuous   

 

* Reflects the offering price per unit set forth on the cover page of the registration statement registering such units filed with the SEC.
** These expenses were paid for by the General Partner.

Compensation to the General Partner and Other Compensation USSO:

Expenses paid by USSO through October 31, 2012 in Dollar Terms:

 

Expenses

   Amount in Dollar Terms  

Amount Paid or Accrued to General Partner

   $ 239,921   

Amount Paid or Accrued in Portfolio Brokerage Commissions

   $ 50,676   

Other Amounts Paid or Accrued*

   $ 648,813   

Total Expenses Paid or Accrued

   $ 939,410   

Expenses Waived**

   $ (578,126 )

Total Expenses Paid or Accrued Including Expenses Waived

   $ 361,284   

 

* Includes expenses relating to legal fees, auditing fees, printing expenses, licensing fees, tax reporting fees, prepaid insurance expenses and miscellaneous expenses and fees and expenses paid to the independent directors of the General Partner.
** The General Partner, though under no obligation to do so, agreed to pay certain expenses, to the extent that such expenses exceeded 0.15% (15 basis points) of USSO’s NAV, on an annualized basis, through at least December 31, 2012. The General Partner has no obligation to continue such payment into subsequent periods.

 

21


Expenses paid by USSO through October 31, 2012 as a Percentage of Average Daily Net Assets:

 

Expenses

   Amount As a Percentage of
Average Daily Net Assets

Amount Paid or Accrued to General Partner

   0.60% annualized

Amount Paid or Accrued in Portfolio Brokerage Commissions

   0.13% annualized

Other Amounts Paid or Accrued

   1.61% annualized

Total Expenses Paid or Accrued

   2.34% annualized

Expenses Waived

   (1.44)% annualized

Total Expenses Paid or Accrued Including Expenses Waived

   0.90% annualized

USSO Performance:

  

Name of Commodity Pool

   USSO

Type of Commodity Pool

   Exchange traded security

Inception of Trading

   September 24, 2009

Aggregate Subscriptions (from inception through October 31, 2012)

   $72,091,061

Total Net Assets as of October 31, 2012

   $8,059,438

Initial NAV per Unit as of Inception

   $50.00

NAV per Unit as of October 31, 2012

   $40.30

Worst Monthly Percentage Draw-down

   Oct 2011 (16.00)%

Worst Peak-to-Valley Draw-down

   Aug 2010 – February 2012
(33.97)%

Number of Unitholders (as of December 31, 2011)

   3,288

COMPOSITE PERFORMANCE DATA FOR USSO

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

 

     Rates of Return*         

Month

   2009     2010      2011      2012  

January

       9.05 %      (0.64 )%      0.11 %

February

       (8.94 )%      (1.94 )%      (8.09 )%

March

       (4.92 )%      (8.89 )%      3.88 %

April

       (2.50 )%      (6.27 )%      (1.62 )%

May

       20.18 %      9.28 %      20.85 %

June

       (1.42 )%      7.21 %      0.61 %

July

       (4.17 )%      (0.30 )%      (3.97 )%

August

       9.61 %      6.24 %      (8.92 )%

September

     (2.90 )%**     (8.75 )%      10.71 %      4.59 %

October

     (8.65 )%     (1.59 )%      (16.00 )%      6.56 %

November

     (0.25 )%     (3.18 )%      (7.78 )%   

December

     (0.57 )%     (7.74 )%      (1.03 )%    
  

 

 

   

 

 

    

 

 

    

 

 

 

Annual Rate of Return

     (12.02 )%     (8.12 )%      (10.54 )%       11.45 %***

 

* The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month, subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.
** Partial from September 24, 2009.
*** Through October 31, 2012

For a definition of draw-down, please see text below “Composite Performance Data for USOF.”

 

22


USBO:

Experience in Raising and Investing in USBO through October 31, 2012

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

 

Dollar Amount Offered*

   $ 2,500,000,000   

Dollar Amount Raised

   $ 300,295,559   

Organizational and Offering Expenses:**

  

SEC registration fee

   $ 139,500   

FINRA registration fee

   $ 75,500   

Listing fee

   $ 5,000   

Auditor’s fees and expenses

   $ 2,500   

Legal fees and expenses

   $ 268,670   

Printing expenses

   $ 39,072   

Length of USBO offering

     Continuous   

 

* Reflects the offering price per unit set forth on the cover page of the registration statement registering such units filed with the SEC.
** These expenses were paid for by the General Partner.

Compensation to the General Partner and Other Compensation USBO:

Expenses paid by USBO through October 31, 2012 in Dollar Terms:

 

Expenses

   Amount in Dollar Terms  

Amount Paid or Accrued to General Partner

   $ 700,707   

Amount Paid or Accrued in Portfolio Brokerage Commissions

   $ 65,833   

Other Amounts Paid or Accrued*

   $ 384,887   

Total Expenses Paid or Accrued

   $ 1,151,427   

Expenses Waived**

   $ (252,754 )

Total Expenses Paid or Accrued Including Expenses Waived

   $ 898,673   

 

* Includes expenses relating to legal fees, auditing fees, printing expenses, printing expenses, tax reporting fees, prepaid insurance expenses and miscellaneous expenses and fees and expenses paid to the independent directors of the General Partner.
** The General Partner, though under no obligation to do so, agreed to pay certain expenses, to the extent that such expenses exceeded 0.15% (15 basis points) of USBO’s NAV, on an annualized basis, through at least December 31, 2012. The General Partner has no obligation to continue such payment into subsequent periods.

 

23


Expenses paid by USBO October 31, 2012 as a Percentage of Average Daily Net Assets:

 

Expenses

   Amount As a Percentage of
Average Daily Net Assets

Amount Paid or Accrued to General Partner

   0.74% annualized

Amount Paid or Accrued in Portfolio Brokerage Commissions

   0.07% annualized

Other Amounts Paid or Accrued

   0.41% annualized

Total Expenses Paid or Accrued

   1.22% annualized

Expenses Waived

   (0.27)% annualized

Total Expenses Paid or Accrued Including Expenses Waived

   0.95% annualized

USBO Performance:

  

Name of Commodity Pool

   USBO

Type of Commodity Pool

   Exchange traded security

Inception of Trading

   June 2, 2010

Aggregate Subscriptions (from inception through October 31, 2012)

   $300,295,559

Total Net Assets as of October 31, 2012

   $43,468,217

Initial NAV per Unit as of Inception

   $50.00

NAV per Unit as of October 31, 2012

   $79.03

Worst Monthly Percentage Draw-down

   May 2012 (14.59)%

Worst Peak-to-Valley Draw-down

   March 2012 – June 2012
(19.62)%

Number of Unitholders (as of December 31, 2011)

   7,959

COMPOSITE PERFORMANCE DATA FOR USBO

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

 

     Rates of Return*         

Month

   2010     2011      2012  

January

       6.61 %      3.64 %

February

       10.42 %      10.78 %

March

       4.92 %      0.84 %

April

       7.44 %      (2.36 )%

May

       (7.17 )%      (14.59 )%

June

     1.94 %**     (3.40 )%       (3.61 )% 

July

     3.83 %     3.94      7.50

August

     (4.84 )%     (1.55 )%       10.61

September

     9.79 %     (9.85 )%       (1.55 )% 

October

     0.61 %     8.51      (2.67 )% 

November

     3.00 %     1.90   

December

     10.09 %     (2.65 )%    
  

 

 

   

 

 

    

 

 

 

Annual Rate of Return

     26.16 %     18.17      6.02 %*** 

 

* The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month, subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.
** Partial from June 2, 2010.
*** Through October 31, 2012

For a definition of draw-down, please see text below “Composite Performance Data for USOF.”

 

24


USCI:

Experience in Raising and Investing in USCI through October 31, 2012

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

 

Dollar Amount Offered*

   $ 2,500,000,000   

Dollar Amount Raised

   $ 403,303,876   

Organizational and Offering Expenses:**

  

SEC registration fee

   $ 178,247   

FINRA registration fee

   $ 75,500   

Listing fee

   $ 5,000   

Auditor’s fees and expenses

   $ 2,500   

Legal fees and expenses

   $ 625,066   

Printing expenses

   $ 50,395   

Length of USCI offering

     Continuous   

 

* Reflects the offering price per unit set forth on the cover page of the registration statement registering such units filed with the SEC.
** These expenses were paid for by the Sponsor.

Compensation to the Sponsor and Other Compensation USCI:

Expenses paid by USCI through October 31, 2012 in Dollar Terms:

 

Expenses

   Amount in Dollar Terms  

Amount Paid or Accrued to Sponsor

   $ 7,225,175   

Amount Paid or Accrued in Portfolio Brokerage Commissions

   $ 588,850   

Other Amounts Paid or Accrued*

   $ 1,022,552   

Total Expenses Paid or Accrued

   $ 8,836,577   

Expenses Waived**

   $ (51,397 )

Total Expenses Paid or Accrued Including Expenses Waived

   $ 8,785,180   

 

* Includes expenses relating to legal fees, auditing fees, printing expenses, licensing fees, tax reporting fees and miscellaneous expenses.
** The Sponsor, though under no obligation to do so, agreed to pay certain expenses, to the extent that such expenses exceeded 0.15% (15 basis points) of USCI’s NAV, on an annualized basis, through at least March 2011, after which date, payment was no longer necessary. The Sponsor has no obligation to continue such payment in subsequent periods.

 

25


Expenses paid by USCI through October 31, 2012 as a Percentage of Average Daily Net Assets:

 

Expenses

   Amount As a Percentage of
Average Daily Net Assets

Amount Paid or Accrued to Sponsor

   0.95% annualized

Amount Paid or Accrued in Portfolio Brokerage Commissions

   0.08% annualized

Other Amounts Paid or Accrued

   0.13% annualized

Total Expenses Paid or Accrued

   1.16% annualized

Expenses Waived

   (0.01)% annualized

Total Expenses Paid or Accrued Including Expenses Waived

   1.15% annualized

USCI Performance:

  

Name of Commodity Pool

   USCI

Type of Commodity Pool

   Exchange traded security

Inception of Trading

   August 10, 2010

Aggregate Subscriptions (from inception through October 31, 2012)

   $403,303,876

Total Net Assets as of October 31, 2012

   $491,713,839

Initial NAV per Unit as of Inception

   $50.00

NAV per Unit as of October 31, 2012

   $59.24

Worst Monthly Percentage Draw-down

   Sep 2011 (11.69)%

Worst Peak-to-Valley Draw-down

   April 2011 – May 2012
(21.60)%

Number of Unitholders (as of December 31, 2011)

   33,783

COMPOSITE PERFORMANCE DATA FOR USCI

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

 

     Rates of Return*         

Month

   2010     2011      2012  

January

       4.01 %      4.45 %

February

       5.27 %      4.01 %

March

       (0.14 )%      (3.49 )%

April

       1.89 %      (0.62 )%

May

       (5.77 )%      (7.76 )%

June

       (5.03 )%       2.35

July

       3.52      6.52

August

     (0.04 )%**     (0.33 )%       1.34

September

     8.38 %     (11.69 )%       (1.18 )% 

October

     6.31 %     5.08      (3.44 )% 

November

     0.76 %     (1.16 )%    

December

     10.93 %     (3.72 )%    
  

 

 

   

 

 

    

 

 

 

Annual Rate of Return

     28.72 %     (9.17 )%       1.32 %*** 

 

* The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month, subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.
** Partial from August 10, 2010.
*** Through October 31, 2012

For a definition of draw-down, please see text below “Composite Performance Data for USOF.”

 

26


CPER:

Experience in Raising and Investing in CPER through October 31, 2012

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

 

Dollar Amount Offered*

   $ 2,500,000,000   

Dollar Amount Raised

   $ 2,500,000   

Organizational and Offering Expenses:**

  

SEC registration fee

   $ 64,675   

FINRA registration fee

   $ 25,183   

Listing fee

   $ 5,000   

Auditor’s fees and expenses

   $ 2,500   

Legal fees and expenses

   $ 177,733   

Printing expenses

   $ 26,742   

Length of CPER offering

     Continuous   

 

* Reflects the offering price per unit set forth on the cover page of the registration statement registering such units filed with the SEC.
** These expenses were paid for by the Sponsor.

Compensation to the Sponsor and Other Compensation CPER:

Expenses paid by CPER through October 31, 2012 in Dollar Terms:

 

Expenses

   Amount in Dollar Terms  

Amount Paid or Accrued to Sponsor

   $ 20,120   

Amount Paid or Accrued in Portfolio Brokerage Commissions

   $ 804   

Other Amounts Paid or Accrued*

   $ 91,911   

Total Expenses Paid or Accrued

   $ 112,835   

Expenses Waived**

   $ (87,722

Total Expenses Paid or Accrued Including Expenses Waived

   $ 25,113   

 

* Includes expenses relating to legal fees, auditing fees, printing expenses, licensing fees, tax reporting fees and miscellaneous expenses.
** The Sponsor, though under no obligation to do so, agreed to pay certain expenses, to the extent that such expenses exceeded 0.15% (15 basis points) of CPER’s NAV, on an annualized basis, through at least December 31, 2012. The Sponsor has no obligation to continue such payment into subsequent periods.

 

27


Expenses paid by CPER through October 31, 2012 as a Percentage of Average Daily Net Assets:

 

Expenses

   Amount As a Percentage of
Average Daily Net Assets

Amount Paid or Accrued to Sponsor

   0.82% annualized

Amount Paid or Accrued in Portfolio Brokerage Commissions

   0.03% annualized

Other Amounts Paid or Accrued

   3.73% annualized

Total Expenses Paid or Accrued

   4.58% annualized

Expenses Waived

   (3.56)% annualized

Total Expenses Paid or Accrued Including Expenses Waived

   1.02% annualized

CPER Performance:

  

Name of Commodity Pool

   CPER

Type of Commodity Pool

   Exchange traded security

Inception of Trading

   November 15, 2011

Aggregate Subscriptions (from inception through October 31, 2012)

   $2,500,000

Total Net Assets as of October 31, 2012

   $2,460,519

Initial NAV per Unit as of Inception

   $25.00

NAV per Unit as of October 31, 2012

   $24.61

Worst Monthly Percentage Draw-down

   May 2012 (11.91)%

Worst Peak-to-Valley Draw-down

   February 2012 – May 2012
(13.60)%

Number of Unitholders (as of December 31, 2011)

   66

COMPOSITE PERFORMANCE DATA FOR CPER

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

 

     Rates of Return*  

Month

   2011     2012  

January

       10.13 %

February

       2.00 %

March

       (1.49 )%

April

       (0.44 )%

May

       (11.91 )%

June

       3.49

July

       (2.12 )% 

August

       0.79

September

       8.45

October

       (6.43 )% 

November

     1.80 %**   

December

     (3.85 )%  
  

 

 

   

 

 

 

Annual Rate of Return

     (2.12 )%     0.57 %*** 

 

* The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month, subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.
** Partial from November 15, 2011.
*** Through October 31, 2012.

For a definition of draw-down, please see text below “Composite Performance Data for USOF.”

 

28


USAG:

Experience in Raising and Investing in USAG through October 31, 2012

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

 

Dollar Amount Offered*

   $ 2,500,000,000   

Dollar Amount Raised

   $ 2,500,000   

Organizational and Offering Expenses:**

  

SEC registration fee

   $ 35,650   

FINRA registration fee

   $ 25,000   

Listing fee

   $ 5,000   

Auditor’s fees and expenses

   $ 2,500   

Legal fees and expenses

   $ 149,079   

Printing expenses

   $ 30,368   

Length of USAG offering

     Continuous   

 

* Reflects the offering price per unit set forth on the cover page of the registration statement registering such units filed with the SEC.
** These expenses were paid for by the Sponsor.

Compensation to the Sponsor and Other Compensation USAG:

Expenses paid by USAG through October 31, 2012 in Dollar Terms:

 

Expenses

   Amount in Dollar Terms  

Amount Paid or Accrued to Sponsor

   $ 13,989   

Amount Paid or Accrued in Portfolio Brokerage Commissions

   $ 2,369   

Other Amounts Paid or Accrued*

   $ 59,354   

Total Expenses Paid or Accrued

   $ 75,712   

Expenses Waived**

   $ (56,646

Total Expenses Paid or Accrued Including Expenses Waived

   $ 19,066   

 

* Includes expenses relating to legal fees, auditing fees, printing expenses, licensing fees, tax reporting fees and miscellaneous expenses.
** The Sponsor, though under no obligation to do so, agreed to pay certain expenses, to the extent that such expenses exceeded 0.15% (15 basis points) of USAG’s NAV, on an annualized basis, through at least December 31, 2012. The Sponsor has no obligation to continue such payment into subsequent periods.

 

29


Expenses paid by USAG through October 31, 2012 as a Percentage of Average Daily Net Assets:

 

Expenses

   Amount As a Percentage of
Average Daily Net Assets

Amount Paid or Accrued to Sponsor

   0.83% annualized

Amount Paid or Accrued in Portfolio Brokerage Commissions

   0.14% annualized

Other Amounts Paid or Accrued

   3.52% annualized

Total Expenses Paid or Accrued

   4.49% annualized

Expenses Waived

   (3.36)% annualized

Total Expenses Paid or Accrued Including Expenses Waived

   1.13% annualized

USAG Performance:

  

Name of Commodity Pool

   USAG

Type of Commodity Pool

   Exchange traded security

Inception of Trading

   April 13, 2012

Aggregate Subscriptions (from inception through October 31, 2012)

   $2,500,000

Total Net Assets as of October 31, 2012

   $2,684,195

Initial NAV per Unit as of Inception

   $25.00

NAV per Unit as of October 31, 2012

   $26.84

Worst Monthly Percentage Draw-down

   May 2012 (4.88)%

Worst Peak-to-Valley Draw-down

   April 2012 – May 2012
(6.48)%

Number of Unitholders (as of December 31, 2011)

   Not applicable

COMPOSITE PERFORMANCE DATA FOR USAG

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

 

     Rates of Return*

Month

   2012      

January

    

February

    

March

    

April

     (1.68 )%**   

May

     (4.88 )%   

June

     9.20  

July

     10.07  

August

     0.25  

September

     (2.80 )%   

October

     (1.97 )%   

November

    

December

    
  

 

 

   

Annual Rate of Return

     7.36 %  

 

* The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month, subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.
** Partial from April 13, 2012.
*** Through October 31, 2012.

For a definition of draw-down, please see text below “Composite Performance Data for USOF.”

 

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USMI:

Experience in Raising and Investing in USMI through October 31, 2012

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

 

Dollar Amount Offered*

   $ 2,500,000,000   

Dollar Amount Raised

   $ 4,909,773   

Organizational and Offering Expenses:**

  

SEC registration fee

   $ 35,650   

FINRA registration fee

   $ 25,000   

Listing fee

   $ 5,000   

Auditor’s fees and expenses

   $ 2,500   

Legal fees and expenses

   $ 137,766   

Printing expenses

   $ 30,368   

Length of USMI offering

     Continuous   

 

* Reflects the offering price per unit set forth on the cover page of the registration statement registering such units filed with the SEC.
** These expenses were paid for by the Sponsor.

Compensation to the Sponsor and Other Compensation USMI:

Expenses paid by USMI through October 31, 2012 in Dollar Terms:

 

Expenses

   Amount in Dollar Terms  

Amount Paid or Accrued to Sponsor

   $ 7,620   

Amount Paid or Accrued in Portfolio Brokerage Commissions

   $ 590   

Other Amounts Paid or Accrued*

   $ 40,852   

Total Expenses Paid or Accrued

   $ 49,072   

Expenses Waived**

   $ (39,110

Total Expenses Paid or Accrued Including Expenses Waived

   $ 9,952   

 

* Includes expenses relating to legal fees, auditing fees, printing expenses, licensing fees, tax reporting fees and miscellaneous expenses.
** The Sponsor, though under no obligation to do so, agreed to pay certain expenses, to the extent that such expenses exceeded 0.15% (15 basis points) of USMI’s NAV, on an annualized basis, through at least December 31, 2012. The Sponsor has no obligation to continue such payment into subsequent periods.

 

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Expenses paid by USMI through October 31, 2012 as a Percentage of Average Daily Net Assets:

 

Expenses

   Amount As a Percentage of
Average Daily Net Assets

Amount Paid or Accrued to Sponsor

   0.70% annualized

Amount Paid or Accrued in Portfolio Brokerage Commissions

   0.05% annualized

Other Amounts Paid or Accrued

   3.74% annualized

Total Expenses Paid or Accrued

   4.49% annualized

Expenses Waived

   (3.58)% annualized

Total Expenses Paid or Accrued Including Expenses Waived

   0.91% annualized

USMI Performance:

  

Name of Commodity Pool

   USMI

Type of Commodity Pool

   Exchange traded security

Inception of Trading

   June 19, 2012

Aggregate Subscriptions (from inception through October 31, 2012)

   $4,909,773

Total Net Assets as of October 31, 2012

   $2,551,485

Initial NAV per Unit as of Inception

   $25.00

NAV per Unit as of October 31, 2012

   $25.51

Worst Monthly Percentage Draw-down

   October 2012 (7.74)%

Worst Peak-to-Valley Draw-down

   September 2012 – October 2012
(7.74)%

Number of Unitholders (as of December 31, 2011)

   Not applicable

COMPOSITE PERFORMANCE DATA FOR USMI

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

 

     Rates of Return*

Month

   2012      

January

    

February

    

March

    

April

    

May

    

June

     (1.20 )%**   

July

     (1.46 )%   

August

     4.23  

September

     8.99  

October

     (7.74 )%   

November

    

December

    
  

 

 

   

Annual Rate of Return

     2.04 % ***   

 

* The monthly rate of return is calculated by dividing the ending NAV of a given month by the ending NAV of the previous month, subtracting 1 and multiplying this number by 100 to arrive at a percentage increase or decrease.
** Partial from June 19, 2012.
*** Through October 31, 2012.

For a definition of draw-down, please see text below “Composite Performance Data for USOF.”

 

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