OAKLAND, Calif., March 31, 2017 /PRNewswire/ -- USCF today announced it has launched the company's first mutual fund, the USCF Commodity Strategy Fund with SummerHaven Investment Management LLC (SummerHaven), a Stamford, CT based commodity trading advisor. The mutual fund will initially offer two share classes (A shares and I shares). The fund seeks long term total return and will use the SummerHaven Dynamic Commodity Index (SDCI), which USCF has licensed from SummerHaven's affiliate, SummerHaven Index Management LLC., as its benchmark index.
"We are thrilled to join the mutual fund community by introducing a new product that employs the same commodity selection methodology as our exchange-traded product, the United States Commodity Index Fund (USCI)," said John Love, President and CEO of USCF. "The mutual fund structure enables us to offer a version of the strategy employed by USCI without a K-1 tax form."
SummerHaven and USCF have collaborated on three exchange-traded products to date: the United States Copper Index Fund (Ticker: CPER), the United States Agriculture Index Fund (Ticker: USAG) and the United States Commodity Index Fund (USCI), which also uses the SDCI as a benchmark. The SDCI is a total return commodity sector index designed to broadly represent major commodities. The SDCI reflects the performance of a fully collateralized portfolio of 14 commodity futures, selected each month from a universe of 27 eligible contracts. Unlike many commodity indexes, the index reconstitutes and rebalances to equal weights on a monthly basis and features a diversification rule that allows it to maintain broad exposure to all commodity sectors.
"We are excited to build on our long-term collaboration with USCF and to leverage the success of USCI," said Ashraf Rizvi, Partner of SummerHaven. "This new mutual fund utilizes the established SDCI as its benchmark. Since its inception in 2009, the SDCI has delivered strong outperformance relative to other commodity indexes with lower volatility and a high correlation to inflation."
"We consider it a privilege to expand our relationship with SummerHaven," said Love. "Their team possesses an incredible depth of market knowledge and, in our opinion, their research is a benefit to everyone interested in learning more about commodities."
USCF operates on the leading edge of product innovation as an asset management firm offering exchange-traded products (ETPs), exchange-traded funds (ETFs) and mutual funds. The firm broke new ground with the launch of the first oil ETP, the United States Oil Fund, LP (USO), in 2006. Over the next decade, USCF designed and issued thirteen more specialty products across commodity and equity asset classes. USCF currently manages over $5 billion in assets from its headquarters in Oakland, California.
About SummerHaven Index Management
SummerHaven Index Management, LLC creates innovative commodity indexes focused on seeking to provide investors with better risk-adjusted returns than traditional commodity indexes. The firm is the owner, creator, and licensor of the SummerHaven Dynamic Commodity Index (SDCI), the SummerHaven Dynamic Agriculture Index (SDAI), the SummerHaven Dynamic Metal Index (SDMI), and the SummerHaven Copper Index (SCI). The firm is led by a seasoned management team with over 100 years of collective experience in commodity futures, academics, investment management, and exchange traded products. For more information, please visit www.summerhavenindex.com.
About SummerHaven Investment Management
SummerHaven Investment Management is a quantitative commodity trading advisor and commodity pool operator. SummerHaven aims to provide diversified commodities exposure with attractive risk-adjusted returns and low correlation to traditional asset classes. SummerHaven has extensive experience in commodities trading, and has been recognized for its contributions to academic research on commodities investing. For more information, please visit www.summerhavenim.com.
Forward Looking Statements
Statements other than statements of historical facts included in this press release may constitute forward looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
USCF is a registered trademark. All rights reserved.
John P. Love and Katie Rooney are registered representatives of ALPS Distributors, Inc.
Commodity trading is highly speculative and involves a high degree of risk. Commodities and futures generally are volatile and are not suitable for all investors. Investing in commodity interests subject each Fund to the risks of its related industry. An investor may lose all or substantially all of an investment. These risks could result in large fluctuations in the price of a particular Fund's respective shares. Funds that focus on a single sector generally experience greater volatility. For further discussion of these and additional risks associated with an investment in the Funds please read the respective Fund Prospectus before investing.
One cannot invest directly in an index.
Commodity Exchange Traded Product Disclosures:
Download a copy of a Fund's Prospectus by clicking one of the following: (USO, USL, DNO, UNG, UNL, UGA, UHN, BNO, USCI, CPER, USAG) or contact the Fund's distributor at: ALPS Distributors, Inc., 1290 Broadway, Suite 1100, Denver, Colorado 80203 or call 800-920-0259. Please read the Fund's Prospectus carefully before investing. USO, USL, DNO, UNG, UNL, UGA, UHN, BNO, USCI, CPER and USAG are commodity pools regulated by the Commodity Futures Trading Commission. These Funds are not mutual funds or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and are not subject to regulation thereunder.
Commodity Mutual Fund Disclosures:
An investor should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus containing this and other information, please call 1-800-920-0259 or download the file from www.uscfinvestments.com.
Investing in the Fund involves risks, including the possible loss of principal. The Fund is a new fund with limited operating history and may not attract sufficient assets to achieve its investment objective. Commodities contain a heightened risk including market and price movements that are outside the Fund's control. We advise you to consider the Fund's objectives, risks, charges and expenses carefully before investing.
Diversification does not eliminate the risk of experiencing investment losses. ALPS Distributors, Inc. is unaffiliated with USCF Advisers, SummerHaven Index Management LLC or SummerHaven Investment Management LLC. Funds distributed by ALPS Distributors, Inc. Member FINRA.
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