OAKLAND, Calif., Nov. 18, 2016 /PRNewswire/ -- USCF Advisers and SummerHaven Index Management LLC (SummerHaven), a Stamford, CT based commodity index provider, will collaborate to develop a mutual fund based on the SummerHaven Dynamic Commodity Index (SDCI). The mutual fund will initially offer two share classes (A shares and I shares). The fund will seek to track the performance of the SDCI.
"USCF and SummerHaven broke new ground in 2010 with the launch of USCI, the United States Commodity Index Fund," said John Love, President and CEO of USCF. "We wanted to work together to offer the same type of strategy to investors who prefer mutual funds and to those seeking a quality commodity product without a K-1."
The mutual fund will invest in commodities via a Cayman Islands subsidiary. SummerHaven Index Management LLC (SummerHaven), a Stamford, CT based commodity index provider and commodity trading adviser, will manage the commodity investments. USCF Advisor, LLC will serve as the investment advisor of the mutual fund.
"We are excited to build on our long-term collaboration with USCF and to leverage the great success of USCI," said Ashraf Rizvi, Partner of SummerHaven. "This new mutual fund utilizes the established SummerHaven Dynamic Commodity Index (SDCI) as its benchmark, providing an attractive commodity mutual fund product with no K-1 for investors."
SummerHaven and USCF have collaborated on three exchange traded products: 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 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 products, the index rebalances to equal weights on a monthly basis and features a diversification rule that allows it to maintain broad exposure to all commodity sectors.
"Our team is thrilled with the opportunity to expand our relationship with SummerHaven," said Love. "We feel that they possess unparalleled expertise and depth of knowledge, and their work is a benefit to the entire world of commodity investing."
USCF operates on the leading edge of Exchange Traded Product (ETP) innovation. 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 ETPs 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 providing 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's affiliate, SummerHaven Investment Management (SHIM), is a quantitative investment manager of commodity futures. SHIM aims to provide diversified commodities exposure with attractive risk-adjusted returns and low correlation to traditional asset classes. SHIM has extensive experience in commodities trading and investment management, and has been recognized for its contributions to academic research on commodities investing. For more information, please visit www.summerhavenim.com.
The information about the Fund is not complete and may be changed. The Fund may not sell any shares until the registration statement it filed is declared effective by the Securities and Exchange Commission. There is no guarantee that the registration statement will be declared effective. Please note that the foregoing announcement does not constitute an offer of any securities for sale. The registration statement will contain information about the investment objectives, risks, and expenses of the Fund. A potential investor should read it carefully before investing. Once available, a copy of the Fund's prospectus can be obtained by calling 1-800-920-0259 or online at www.uscfinvestments.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 Fund Disclosures:
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.
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.
Diversification does not eliminate the risk of experiencing investment losses. An investment in the fund involves risk, including loss of principle.
ALPS Distributors, Inc. is unaffiliated with USCF Advisers, SummerHaven Index Management and SummerHaven Investment Management.
Funds distributed by ALPS Distributors, Inc.