x
|
Annual
report pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934 for the fiscal year ended December 31,
2008.
|
¨
|
Transition
report pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934 for the transition period
from to .
|
Delaware
|
20-8837263
|
|
(State
or other jurisdiction of
incorporation
or organization)
|
(I.R.S.
Employer
Identification
No.)
|
Units
|
NYSE Arca,
Inc.
|
|
(Title of each
class)
|
(Name of exchange on which
registered)
|
|
Part
I.
|
Page
|
1
|
|
41
|
|
58
|
|
58
|
|
58
|
|
58
|
|
Part
II.
|
|
59
|
|
59
|
|
59
|
|
75
|
|
77
|
|
92
|
|
92
|
|
92
|
|
Part
III.
|
|
92
|
|
96
|
|
97
|
|
97
|
|
97
|
|
Part
IV.
|
|
98
|
|
98
|
|
100
|
|
·
|
A
is the average daily change in UGA’s NAV for any period of 30 successive
valuation days; i.e., any trading day
as of which UGA calculates its NAV,
and
|
|
·
|
B
is the average daily change in the price of the Benchmark Futures Contract
over the same period.
|
The
Price of UGA’s Units is Expected to Correlate Closely With UGA’s
NAV
UGA’s
units are traded on the NYSE Arca. The price of units
fluctuates in response to UGA’s NAV and the supply and demand pressures
for its units on the Exchange. Because of certain
arbitrage opportunities, the General Partner believes the price of UGA’s
units traded on the Exchange will correlate closely with UGA’s
NAV.
|
Changes
in UGA’s NAV are Expected to Correlate Closely With Changes in the Price
of the Benchmark Futures Contract
|
Futures
Contract
|
Position
Accountability
Levels
and Limits
|
Maximum
Daily
Price
Fluctuation
|
||
NYMEX
Gasoline
(physically
settled)
|
Any
one month: 5,000 net futures / all months: 7,000 net futures, but not to
exceed 1,000 contracts in the last three days of trading in the spot
month.
|
$0.25
per gallon ($10,500 per contract) for all months. If any contract is
traded, bid, or offered at the limit for five minutes, trading is halted
for five minutes. When trading resumes, the limit is expanded by $0.25 per
gallon in either direction. If another halt were triggered, the market
would continue to be expanded by $0.25 per gallon in either direction
after each successive five-minute trading halt. There will be no maximum
price fluctuation limits during any one trading session.
|
||
ICE
NYH (RBOB) Gasoline
(financially settled)
|
Any
one month: 7,000 net futures / all months: 7,000 net futures, but not to
exceed 1,000 contracts in the last three days of trading in the spot
month.
|
There
is no maximum daily price fluctuation limit.
|
||
NYMEX
Light, Sweet Crude Oil
(physically
settled)
|
Any
one month: 10,000 net futures / all months: 20,000 net futures, but not to
exceed 3,000 contracts in the last three days of trading in the spot
month.
|
$10.00
per barrel ($10,000 per contract) for all months. If any contract is
traded, bid, or offered at the limit for five minutes, trading is halted
for five minutes. When trading resumes, the limit is expanded by $10.00
per barrel in either direction. If another halt were triggered, the market
would continue to be expanded by $10.00 per barrel in either direction
after each successive five-minute trading halt. There will be no maximum
price fluctuation limits during any one trading session.
|
||
NYMEX
Light, Sweet Crude Oil
(financially
settled)
|
Any
one month: 20,000 net futures / all months: 20,000 net futures, but not to
exceed 2,000 contracts in the last three days of trading in the spot
month.
|
There
is no maximum daily price fluctuation limit.
|
||
NYMEX
Heating Oil
(physically
settled)
|
Any
one month: 5,000 net futures / all months: 7,000 net futures, but not to
exceed 1,000 contracts in the last three days of trading in the spot
month.
|
$0.25
per gallon ($10,500 per contract) for all months. If any contract is
traded, bid, or offered at the limit for five minutes, trading is halted
for five minutes. When trading resumes, the limit is expanded by $0.25 per
gallon in either direction. If another halt were triggered, the market
would continue to be expanded by $0.25 per gallon in either direction
after each successive five-minute trading halt. There will be no maximum
price fluctuation limits during any one trading session.
|
NYMEX
Natural Gas
(physically
settled)
|
Any
one month: 6,000 net futures / all months: 12,000 net futures, but not to
exceed 1,000 contracts in the last three days of trading in the spot
month.
|
$3.00
per million British thermal units (“mmBtu”) ($30,000 per contract) for all
months. If any contract is traded, bid, or offered at the limit for five
minutes, trading is halted for five minutes. When trading resumes, the
limit is expanded by $3.00 per mmBtu in either direction. If another halt
were triggered, the market would continue to be expanded by $3.00 per
mmBtu in either direction after each successive five-minute trading halt.
There will be no maximum price fluctuation limits during any one trading
session.
|
||
ICE
Brent Crude
(physically
settled)
|
There
are no position limits.
|
There
is no maximum daily price fluctuation limit.
|
||
ICE
West Texas Intermediate (“WTI”)
(financially
settled)
|
Any
one month: 10,000 net futures / all months: 20,000 net futures, but not to
exceed 3,000 contracts in the last three days of trading in the spot
month.
|
There
is no maximum daily price fluctuation
limit.
|
Service
Provider
|
Compensation
Paid by the General Partner
|
Brown
Brothers Harriman & Co.,
Custodian
and Administrator
|
Minimum
amount of $75,000 annually* for its custody, fund accounting and fund
administration services rendered to all funds, as well as a $20,000 annual
fee for its transfer agency services. In addition, an asset-based charge
of (a) 0.06% for the first $500 million of UGA’s and the Related Public
Funds’ combined net assets, (b) 0.0465% for UGA’s and the Related Public
Funds’ combined net assets greater than $500 million but less than $1
billion, and (c) 0.035% once UGA’s and the Related Public Funds’ combined
net assets exceed $1 billion.**
|
ALPS
Distributors, Inc., Marketing Agent
|
0.06%
on UGA’s assets up to $3 billion; 0.04% on UGA’s assets in excess of $3
billion.
|
*
|
The
General Partner pays this
compensation.
|
**
|
The
annual minimum amount will not apply if the asset-based charge for all
accounts in the aggregate exceeds $75,000. The General Partner also will
pay transaction charge fees to BBH&Co., ranging from $7.00 to $15.00
per transaction for the
funds.
|
Service
Provider
|
Compensation
Paid by UGA
|
UBS
Securities LLC, Futures Commission Merchant
|
Approximately
$3.50 per buy or sell; charges may vary
|
Non-Affiliated
Brokers
|
Approximately
0.10% of assets
|
*
|
UGA
pays this compensation.
|
Assets
|
Licensing
Fee
|
First
$1,000,000,000
|
0.04%
of NAV
|
After
the first $1,000,000,000
|
0.02%
of NAV
|
*
|
Fees
are calculated on a daily basis (accrued at 1/365 of the applicable
percentage of NAV on that day) and paid on a monthly basis. UGA is
responsible for its pro rata share of the assets held by UGA and the
Related Public Funds as well as other funds managed by the General
Partner, including USSO and US12NG, when and if such funds commence
operations.
|
Expenses:
|
Amount
in Dollar Terms
|
|||
Amount
Paid to General Partner:
|
$ | 97,932 | ||
Amount
Paid in Portfolio Brokerage Commissions:
|
$ | 16,173 | ||
Other
Amounts Paid or Accrued:
|
$ | 158,773 | ||
Total
Expenses Paid or Accrued:
|
$ | 272,878 | ||
Expenses
Waived*:
|
$ | (126,348 | ) | |
Net
Expenses Paid or Accrued*:
|
$ | 146,530 |
*
|
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 December 31,
2008. The
General Partner has no obligation to continue such payment into subsequent
years.
|
Expenses:
|
Amount
as a Percentage of Average Daily Net Assets
|
General
Partner
|
0.60%
annualized
|
Portfolio
Brokerage Commissions
|
0.10%
annualized
|
Other
Amounts Paid or Accrued
|
0.97%
annualized
|
Total
Expense Ratio
|
1.67%
annualized
|
Expenses
Waived
|
(0.77)%
annualized
|
Net
Expense Ratio
|
0.90%
annualized
|
|
·
|
be
an assignee until admitted as a substituted limited partner upon the
consent and sole discretion of the General Partner and the recording of
the assignment on the books and records of the
partnership;
|
|
·
|
automatically
request admission as a substituted limited
partner;
|
|
·
|
it
determines that the investment alternative available to UGA at that time
will not enable it to meet its investment
objective;
|
|
·
|
it
believes that the purchase order or the Creation Basket Deposit would have
adverse tax consequences to UGA or its
unitholders;
|
|
·
|
the
acceptance or receipt of the Creation Basket Deposit would, in the opinion
of counsel to the General Partner, be unlawful;
or
|
|
·
|
circumstances
outside the control of the General Partner, Marketing Agent or Custodian
make it, for all practical purposes, not feasible to process creations of
baskets.
|
Dollar
Amount Offered*:
|
$ | 1,500,000,000 | ||
Dollar
Amount Raised:
|
$ | 46,115,901 | ||
Organizational
and Offering Expenses**:
|
||||
SEC registration
fee:
|
$ | 58,520 | ||
FINRA fee:
|
$ | 75,500 | ||
Listing fee:
|
$ | 5,000 | ||
Auditor’s fees and
expenses:
|
$ | 2,500 | ||
Legal fees and
expenses:
|
$ | 117,891 | ||
Printing
expenses:
|
$ | 31,867 | ||
Length
of 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.
|
|
Expenses |
Amount in Dollar Terms
|
|||
Amount
Paid to General Partner in UGA Offering:
|
$ | 97,932 | ||
Amount
Paid in Portfolio Brokerage Commissions in UGA Offering:
|
$ | 16,173 | ||
Other
Amounts Paid or Accrued in UGA Offering:
|
$ | 158,773 | ||
Total
Expenses Paid or Accrued in UGA Offering:
|
$ | 272,878 | ||
Expenses
Waived*:
|
$ | (126,348 | ) | |
Net
Expenses Paid or Accrued*:
|
$ | 146,530 |
*
|
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 December 31,
2008. The
General Partner has no obligation to continue such payment into subsequent
years.
|
Expenses in UGA
Offering:
|
Amount as a Percentage
of Average Daily Net Assets
|
||
Amount
Paid to General Partner in UGA Offering:
|
0.60%
annualized
|
||
Amount
Paid in Portfolio Brokerage Commissions in UGA Offering:
|
0.10%
annualized
|
||
Other
Amounts Paid in UGA Offering:
|
0.97%
annualized
|
||
Total
Expenses in UGA Offering:
|
1.67%
annualized
|
||
Expenses
Waived in UGA Offering:
|
(0.77)%
annualized
|
||
Net
Expenses Paid or Accrued
|
0.90%
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
December 31, 2008):
|
$ 46,114,901
|
||
Total
Net Assets as of December 31, 2008:
|
$ 20,209,419
|
*
|
|
Initial
NAV Per Unit as of Inception:
|
$ 50.00
|
||
NAV
per Unit as of December 31, 2008:
|
$ 20.21
|
||
Worst
Monthly Percentage Draw-down:
|
October
2008 (38.48)%
|
||
Worst
Peak-to-Valley Draw-down:
|
June
2008 – December 2008 (69.02)%
|
Month
|
Rates of return
2008
|
|||
January
|
- | |||
February
|
(0.56) | %* | ||
March
|
(2.39) | % | ||
April
|
10.94 | % | ||
May
|
15.60 | % | ||
June
|
4.80 | % | ||
July
|
(12.79) | % | ||
August
|
(3.88) | % | ||
September
|
(9.36) | % | ||
October
|
(38.48) | % | ||
November
|
(21.35) | % | ||
December
|
(15.72) | % | ||
Annual
Rate of Return
|
(59.58) | % |
Dollar
Amount Offered in USOF Offering*:
|
$ | 23,384,630,000 | ||
Dollar
Amount Raised in USOF Offering:
|
$ | 18,578,175,328 | ||
Organizational
and Offering Expenses**:
|
||||
SEC registration
fee:
|
$ | 1,522,485 | ||
FINRA registration
fee:
|
$ | 528,000 | ||
Listing
fee:
|
$ | 5,000 | ||
Auditor’s fees and
expenses:
|
$ | 193,350 | ||
Legal fees and
expenses:
|
$ | 1,506,565 | ||
Printing
expenses:
|
$ | 292,126 | ||
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.
|
**
|
Amounts
are for organizational and offering expenses incurred in connection with
the offerings from April 10, 2006 through December 31, 2008. Through
December 31, 2006, these expenses were paid for by an affiliate of the
General Partner in connection with the initial public offering. Following
December 31, 2006, USOF has borne the expenses related to the offering of
its units.
|
Expenses:
|
Amount in Dollar Terms
|
|||
Amount
Paid to General
Partner in USOF Offering:
|
$ | 9,141,311 | ||
Amount Paid in Portfolio Brokerage Commissions in USOF Offering:
|
$ | 3,271,301 | ||
Other
Amounts Paid in USOF Offering:
|
$ | 4,002,391 | ||
Total
Expenses Paid in USOF Offering:
|
$ | 16,415,003 |
Expenses in USOF Offering:
|
Amount
As a Percentage
of Average Daily Net
Assets
|
|
Amount
Paid to General Partner in USOF Offering:
|
0.48%
annualized
|
|
Amount
Paid in Portfolio Brokerage Commissions in USOF Offering:
|
0.17%
annualized
|
|
Other
Amounts Paid in USOF Offering:
|
0.21%
annualized
|
|
Total
Expenses Paid in USOF Offering:
|
0.86%
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
December 31, 2008):
|
$18,578,175,328
|
Total
Net Assets as of December 31, 2008:
|
$2,569,623,931
|
Initial
NAV per Unit as of Inception:
|
$67.39
|
NAV
per Unit as of December 31, 2008:
|
$34.31
|
Worst
Monthly Percentage Draw-down:
|
October 2008 (31.57)%
|
Worst
Peak-to-Valley Draw-down:
|
June
2008 – December 2008
(69.72)%
|
Rates of return
|
||||||||||||
Month
|
2006
|
2007
|
2008
|
|||||||||
January
|
– | (6.55 | )% | (4.00 | )% | |||||||
February
|
– | 5.63 | % | 11.03 | % | |||||||
March
|
– | 4.61 | % | 0.63 | % | |||||||
April
|
3.47 | %* | (4.26 | )% | 12.38 | % | ||||||
May
|
(2.91 | )% | (4.91 | )% | 12.80 | % | ||||||
June
|
3.16 | % | 9.06 | % | 9.90 | % | ||||||
July
|
(0.50 | )% | 10.57 | % | (11.72 | )% | ||||||
August
|
(6.97 | )% | (4.95 | )% | (6.75 | )% | ||||||
September
|
(11.72 | )% | 12.11 | % | (12.97 | )% | ||||||
October
|
(8.45 | )% | 16.98 | % | (31.57 | )% | ||||||
November
|
4.73 | % | (4.82 | )% | (20.65 | )% | ||||||
December
|
(5.21 | )% | 8.67 | % | (22.16 | )% | ||||||
Annual
Rate of Return
|
(23.03 | )% | 46.17 | % | (54.75 | )% |
Dollar
Amount Offered in USNG Offering*:
|
$ | 7,631,500,000 | ||
Dollar
Amount Raised in USNG Offering:
|
$ | 4,150,671,803 | ||
Organizational
and Offering
Expenses**:
|
||||
SEC registration
fee:
|
$ | 340,557 | ||
FINRA registration
fee:
|
$ | 226,500 | ||
Listing fee:
|
$ | 5,000 | ||
Auditor’s fees and
expenses:
|
$ | 206,850 | ||
Legal fees and
expenses:
|
$ | 686,695 | ||
Printing
expenses:
|
$ | 56,130 | ||
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.
|
**
|
Amounts
are for organizational and offering expenses incurred in connection with
offerings from April 18, 2007 through December 31, 2008. Through April 18,
2007, these expenses were paid for by the General Partner. Following April
18, 2007, USNG has borne the expenses related to the offering of its
units.
|
Expenses:
|
Amount in Dollar Terms
|
|||
Amount
Paid to General Partner in USNG Offering:
|
$ | 5,613,585 | ||
Amount
Paid in Portfolio Brokerage Commissions in USNG Offering:
|
$ | 1,218,485 | ||
Other
Amounts Paid in USNG Offering:
|
$ | 2,242,063 | ||
Total
Expenses Paid in USNG Offering:
|
$ | 9,074,133 |
Expenses in USNG Offering:
|
Amount
As a Percentage
of Average Daily Net
Assets
|
|
Amount
Paid to General Partner in USNG Offering:
|
0.60%
annualized
|
|
Amount
Paid in Portfolio Brokerage Commissions in USNG Offering:
|
0.13%
annualized
|
|
Other
Amounts Paid in USNG Offering:
|
0.24%
annualized
|
|
Total
Expenses Paid in USNG Offering:
|
0.97%
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 December 31, 2008):
|
$4,150,671,803
|
Total
Net Assets as of December 31, 2008:
|
$695,714,510
|
Initial
NAV per Unit as of Inception:
|
$50.00
|
NAV
per Unit as of December 31, 2008:
|
$23.27
|
Worst
Monthly Percentage Draw-down:
|
July
2008 (32.13)%
|
Worst
Peak-to-Valley Draw-down:
|
June
2008 – December 2008
(62.86)%
|
Rates of return
|
||||||||
Month
|
2007
|
2008
|
||||||
January
|
– | 8.87 | % | |||||
February
|
– | 15.87 | % | |||||
March
|
– | 6.90 | % | |||||
April
|
4.30 | %* | 6.42 | % | ||||
May
|
(0.84 | )% | 6.53 | % | ||||
June
|
(15.90 | )% | 13.29 | % | ||||
July
|
(9.68 | )% | (32.13 | )% | ||||
August
|
(13.37 | )% | (13.92 | )% | ||||
September
|
12.28 | % | (9.67 | )% | ||||
October
|
12.09 | % | (12.34 | )% | ||||
November
|
(16.16 | )% | (6.31 | )% | ||||
December
|
0.75 | % | (14.32 | )% | ||||
Annual
Rate of Return
|
(27.64 | )% | (35.68 | )% |
Dollar
Amount Offered in US12OF Offering*:
|
$ | 550,000,000 | ||
Dollar
Amount Raised in US12OF Offering:
|
$ | 23,232,434 | ||
Organizational
and Offering
Expenses**:
|
||||
SEC registration
fee:
|
$ | 16,885 | ||
FINRA registration
fee:
|
$ | 75,500 | ||
Listing fee:
|
$ | 5,000 | ||
Auditor’s fees and
expenses:
|
$ | 35,700 | ||
Legal fees and
expenses:
|
$ | 213,235 | ||
Printing
expenses:
|
$ | 23,755 | ||
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.
|
**
|
These
expenses were paid for by the General
Partner.
|
Expenses:
|
Amount in Dollar Terms
|
|||
Amount
Paid to General Partner in US12OF Offering:
|
$ | 57,977 | ||
Amount
Paid in Portfolio Brokerage Commissions in US12OF
Offering:
|
$ | 3,217 | ||
Other
Amounts Paid in US12OF Offering:
|
$ | 119,032 | ||
Total
Expenses Paid in US12OF Offering:
|
$ | 180,226 | ||
Expenses
Waived in US12OF Offering*:
|
$ | (97,019 | ) | |
Net
Expenses Paid or Accrued in US12OF Offering*:
|
$ | 83,207 |
*
|
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 December
31, 2008. The
General Partner has no obligation to continue such payment into subsequent
years.
|
Expenses in US12OF
Offering:
|
Amount
As a Percentage
of Average Daily Net
Assets
|
|
Amount
Paid to General Partner in US12OF Offering:
|
0.60%
annualized
|
|
Amount
Paid in Portfolio Brokerage Commissions in US12OF
Offering:
|
0.03%
annualized
|
|
Other
Amounts Paid in US12OF Offering:
|
1.23%
annualized
|
|
Total
Expenses Paid in US12OF Offering:
|
1.86%
annualized
|
|
Expenses
Waived in US12OF Offering:
|
(1.00)%
annualized
|
|
Net
Expenses Paid in US12OF Offering:
|
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 December 31, 2008):
|
$23,231,434
|
Total
Net Assets as of December 31, 2008:
|
$6,247,578
|
Initial
NAV per Unit as of Inception:
|
$50.00
|
NAV
per Unit as of December 31, 2008:
|
$31.24
|
Worst
Monthly Percentage Draw-down:
|
October
2008 (29.59)%
|
Worst
Peak-to-Valley Draw-down:
|
June
2008 –December 2008
(62.83)%
|
Rates of return
|
||||||||
Month
|
2007
|
2008
|
||||||
January
|
– | (2.03 | )% | |||||
February
|
– | 10.48 | % | |||||
March
|
– | (0.66 | )% | |||||
April
|
– | 11.87 | % | |||||
May
|
– | 15.47 | % | |||||
June
|
– | 11.59 | % | |||||
July
|
– | (11.39 | )% | |||||
August
|
– | (6.35 | )% | |||||
September
|
– | (13.12 | )% | |||||
October
|
– | (29.59 | )% | |||||
November
|
– | (16.17 | )% | |||||
December
|
8.46 | %* | (12.66 | )% | ||||
Annual
Rate of Return
|
8.46 | % | (42.39 | )% |
Dollar
Amount Offered in USHO Offering*:
|
$ | 5,000,000 | ||
Dollar
Amount Raised in USHO Offering:
|
$ | 17,556,271 | ||
Organizational
and Offering
Expenses**:
|
||||
SEC registration
fee:
|
$ | 19,220 | ||
FINRA
registration fee:
|
$ | 50,500 | ||
Listing fee:
|
$ | 5,000 | ||
Auditor’s fees and
expenses:
|
$ | 2,500 | ||
Legal fees and
expenses:
|
$ | 126,859 | ||
Printing
expenses:
|
$ | 21,255 | ||
Length
of USHO 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.
|
Expenses:
|
Amount in Dollar Terms
|
|||
Amount
Paid to General Partner in USHO Offering:
|
$ | 52,791 | ||
Amount
Paid in Portfolio Brokerage Commissions in USHO Offering:
|
$ | 7,700 | ||
Other
Amounts Paid in USHO Offering:
|
$ | 104,989 | ||
Total
Expenses Paid in USHO Offering:
|
$ | 165,480 | ||
Expenses
Waived in USHO Offering*:
|
$ | (87,698 | ) | |
Net
Expenses Paid or Accrued in USHO Offering*:
|
$ | 77,782 |
*
|
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 USHO’s NAV, on an annualized basis, through December 31,
2008. The
General Partner has no obligation to continue such payment into subsequent
years.
|
Expenses in USHO Offering:
|
Amount
As a Percentage
of Average Daily Net
Assets
|
|
Amount
Paid to General Partner in USHO Offering:
|
0.60%
annualized
|
|
Amount
Paid in Portfolio Brokerage Commissions in USHO Offering:
|
0.09%
annualized
|
|
Other
Amounts Paid in USHO Offering:
|
1.19%
annualized
|
|
Total
Expenses Paid in USHO Offering:
|
1.88%
annualized
|
|
Expenses
Waived in USHO Offering:
|
(1.00)%
annualized
|
|
Net
Expenses Paid in USHO Offering:
|
0.88%
annualized
|
USHO Performance:
|
||
Name
of Commodity Pool:
|
USHO
|
|
Type
of Commodity Pool:
|
Exchange
traded security
|
|
Inception
of Trading:
|
April
8, 2008
|
|
Aggregate
Subscriptions (from inception through December 31, 2008):
|
$17,556,271
|
|
Total
Net Assets as of December 31, 2008:
|
$4,387,898
|
|
Initial
NAV per Unit as of Inception:
|
$50.00
|
|
NAV
per Unit as of December 31, 2008:
|
$21.94
|
|
Worst
Monthly Percentage Draw-down:
|
October
2008 (28.63)%
|
|
Worst
Peak-to-Valley Draw-down:
|
June
2008 – December 2008
(65.25)%
|
Month
|
Rates of
return
2008
|
|||
January
|
– | |||
February
|
– | |||
March
|
– | |||
April
|
2.84 | % * | ||
May
|
15.93 | % | ||
June
|
5.91 | % | ||
July
|
(12.18 | )% | ||
August
|
(8.41 | )% | ||
September
|
(9.77 | )% | ||
October
|
(28.63 | )% | ||
November
|
(18.38 | )% | ||
December
|
(17.80 | )% | ||
Annual
Rate of Return
|
(56.12 | )% |
|
·
|
adverse
weather conditions;
|
|
·
|
pipeline
ruptures, spills or other supply disruptions;
and
|
|
·
|
shortages
or delays in the availability of drilling rigs and the delivery of
equipment.
|
|
·
|
UGA
(i) may not be able to buy/sell the exact amount of Futures Contracts and
Other Gasoline-Related Investments to have a perfect correlation with NAV;
(ii) may not always be able to buy and sell Futures Contracts or Other
Gasoline-Related Investments at the market price; (iii) may not experience
a perfect correlation between the spot price of gasoline and the
underlying investments in Futures Contracts, Other Gasoline-Related
Investments and Treasuries, cash and/or cash equivalents; and (iv) is
required to pay fees, including brokerage fees and the management
fee, which will have an effect on the
correlation.
|
|
·
|
Short-term
supply and demand for gasoline may cause changes in the market price
in the Benchmark Futures Contract to vary from changes in UGA’s NAV if UGA
has fully invested in Futures Contracts that do not reflect such supply
and demand and it is unable to replace such contracts with Futures
Contracts that do reflect such supply and demand. In addition, there are
also technical differences between the two markets, e.g., one is a physical market while the
other is a futures market traded on exchanges, that may cause variations
between the spot price of gasoline and the prices of related futures
contracts.
|
|
·
|
UGA
plans to buy only as many Futures Contracts and Other Gasoline-Related
Investments that it can to get the changes in percentage terms of the NAV
as close as possible to the changes in percentage terms in the price of
the Benchmark Futures Contract. The remainder of its assets will be
invested in Treasuries, cash and/or cash equivalents and will be used to
satisfy initial margin and additional margin requirements, if any, and to
otherwise support its investments in Gasoline Interests. Investments in
Treasuries, cash and/or cash equivalents, both directly and as margin,
will provide rates of return that will vary from changes in the value of
the spot price of gasoline and the price of the Benchmark Futures
Contract.
|
|
·
|
In
addition, because UGA incurs certain expenses in connection with its
investment activities, and holds most of its assets in more liquid
short-term securities for margin and other liquidity purposes and for
redemptions that may be necessary on an ongoing basis, the General Partner
is generally not able to fully invest UGA’s assets in Futures Contracts or
Other Gasoline-Related Investments and there cannot be perfect correlation
between changes in UGA’s NAV and changes in the price of the Benchmark
Futures Contract.
|
|
·
|
As
UGA grows, there may be more or less correlation. For example, if UGA only
has enough money to buy three Benchmark Futures Contracts and it needs to
buy four contracts to track the price of gasoline then the correlation
will be lower, but if it buys 20,000 Benchmark Futures Contracts and it
needs to buy 20,001 contracts then the correlation will be higher. At
certain asset levels, UGA may be limited in its ability to purchase the
Benchmark Futures Contract or Other Gasoline-Related Investments due to
accountability levels imposed by the relevant exchanges. To the extent
that UGA invests in these other Futures Contracts or Other
Gasoline-Related Investments, the correlation with the Benchmark Futures
Contract may be lower. If UGA is required to invest in other Futures
Contracts and Other Gasoline-Related Investments that are less correlated
with the Benchmark Futures Contract, UGA would likely invest in
over-the-counter contracts to increase the level of correlation of UGA’s
assets. Over-the-counter contracts entail certain risks described below
under “Over-the-Counter Contract
Risk.”
|
|
·
|
UGA
may not be able to buy the exact number of Futures Contracts and Other
Gasoline-Related Investments to have a perfect correlation with the
Benchmark Futures Contract if the purchase price of Futures
Contracts required to be fully invested in such contracts is higher than
the proceeds received for the sale of a Creation Basket on the day the
basket was sold. In such case, UGA could not invest the entire proceeds
from the purchase of the Creation Basket in such futures contracts (for
example, assume UGA receives $2,000,000 for the sale of a Creation Basket
and assume that the price of the Futures Contracts for gasoline is $1.062
then UGA could only invest in 44 Futures Contracts with an aggregate
value of $1,962,576). UGA would be required to invest a percentage of the
proceeds in cash, Treasuries or other liquid securities to be deposited as
margin with the futures commission merchant through which the contracts
were purchased. The remainder of the purchase price for the Creation
Basket would remain invested in cash and/or cash equivalents and
Treasuries or other liquid securities as determined by the General Partner
from time to time based on factors such as potential calls for margin or
anticipated redemptions. If the trading market for Futures Contracts is
suspended or closed, UGA may not be able to purchase these investments at
the last reported price for such
investments.
|
|
·
|
weather
conditions, including abnormally mild winter or summer weather, and
abnormally harsh winter or summer
weather;
|
|
·
|
technological
advances relating to energy usage or relating to technology for
exploration, production, refining and petrochemical
manufacturing;
|
|
·
|
the
ability of members of OPEC to agree upon and maintain oil prices and
production levels;
|
High
|
Low
|
|||||||
Fiscal year 2008
|
||||||||
First
quarter (beginning February 26, 2008)
|
$ | 50.93 | $ | 46.00 | ||||
Second
quarter
|
$ | 67.03 | $ | 47.97 | ||||
Third
quarter
|
$ | 67.66 | $ | 43.71 | ||||
Fourth
quarter
|
$ | 48.54 | $ | 16.10 |
For the period
from February 26,
2008 to
December 31,
2008
|
For the period
from April 12,
2007 to
December 31,
2007
|
|||||||
Total
assets
|
$ | 20,369 | $ | 1 | ||||
Net
realized and unrealized gain (loss) on futures transactions, inclusive of
commissions
|
$ | (9,949 | ) | $ | - | |||
Net
loss
|
$ | (9,799 | ) | $ | - | |||
Weighted-average
limited partnership units
|
413,548 | - | ||||||
Net
loss per unit
|
$ | (29.79 | ) | $ | - | |||
Net
loss per weighted average unit
|
$ | (23.69 | ) | $ | - | |||
Cash
and cash equivalents at end of period
|
$ | 11,692 | $ | 1 |
10 Year Correlation Matrix
1998-2008
|
Large Cap U.S.
Equities
(S&P 500)
|
U.S. Govt. Bonds
(EFFAS U.S.
Government Bond
Index)
|
Global Equities
(FTSE World
Index)
|
Crude Oil
|
Natural Gas
|
Heating Oil
|
Unleaded
Gasoline
|
Large Cap U.S. Equities (S&P 500)
|
1
|
-0.223
|
0.936
|
0.063
|
0.045
|
0.003
|
0.266
|
U.S.
Govt. Bonds (EFFAS U.S. Government Bond Index)
|
1
|
-0.214
|
-0.29
|
0.054
|
0.037
|
-0.134
|
|
Global
Equities (FTSE World Index)
|
1
|
0.155
|
0.072
|
0.084
|
0.384
|
||
Crude
Oil
|
1
|
0.292
|
0.738
|
0.747
|
|||
Natural
Gas
|
1
|
0.394
|
0.254
|
||||
Heating
Oil
|
1
|
0.787
|
|||||
Unleaded
Gasoline
|
1
|
||||||
source:
Bloomberg, NYMEX
|
Correlation
Matrix 2008
|
Large
Cap U.S. Equities
(S&P
500)
|
U.S.
Govt. Bonds (EFFAS U.S. Government Bond Index)
|
Global
Equities (FTSE World Index)
|
Crude
Oil
|
Natural
Gas
|
Heating
Oil
|
Unleaded
Gasoline
|
Large
Cap U.S. Equities (S&P 500)
|
1
|
-0.515
|
0.839
|
0.248
|
0.083
|
0.264
|
0.337
|
U.S.
Govt. Bonds (EFFAS U.S. Government Bond Index)
|
1
|
-0.406
|
-0.224
|
-0.053
|
-0.159
|
-0.233
|
|
Global
Equities (FTSE World Index)
|
1
|
0.403
|
0.202
|
0.429
|
0.486
|
||
Crude
Oil
|
1
|
0.408
|
0.812
|
0.786
|
|||
Natural
Gas
|
1
|
0.476
|
0.407
|
||||
Heating
Oil
|
1
|
0.853
|
|||||
Unleaded
Gasoline
|
1
|
||||||
source:
Bloomberg, NYMEX
|
Documents
|
Page
|
|||
Report
of Independent Registered Public Accounting Firm.
|
78
|
|||
Statements
of Financial Condition at December 31, 2008 and 2007.
|
79
|
|||
Schedule
of Investments at December 31, 2008.
|
80
|
|||
Statements
of Operations for the period from February 26, 2008 (commencement of
operations) to December 31, 2008 and the period from April 12, 2007
(inception) to December 31, 2007.
|
81
|
|||
Statements
of Changes in Partners’ Capital for the period from February 26, 2008
(commencement of operations) to December 31, 2008 and the period from
April 12, 2007 (inception) to December 31, 2007.
|
82
|
|||
Statements
of Cash Flows for the period from February 26, 2008 (commencement of
operations) to December 31, 2008 and the period from April 12, 2007
(inception) to December 31, 2007.
|
83
|
|||
Notes
to Financial Statements for the period from February 26, 2008
(commencement of operations) to December 31, 2008 and the period from
April 12, 2007 (inception) to December 31, 2007.
|
84
|
United
States Gasoline Fund, LP
|
|||
Statements
of Financial Condition
|
|||
At
December 31, 2008 and 2007
|
2008
|
2007
|
|||||||
Assets
|
||||||||
Cash
and cash equivalents
|
$ | 11,691,510 | $ | 1,000 | ||||
Equity
in UBS Securities LLC trading accounts:
|
||||||||
Cash
|
7,114,841 | - | ||||||
Unrealized
gain on open commodity futures contracts
|
1,431,721 | - | ||||||
Receivable
from general partner
|
126,348 | - | ||||||
Interest
receivable
|
4,251 | - | ||||||
Total
assets
|
$ | 20,368,671 | $ | 1,000 | ||||
Liabilities
and Partners' Capital
|
||||||||
General
Partner management fees (Note 3)
|
$ | 5,902 | $ | - | ||||
Audit
and tax reporting fees payable
|
150,794 | - | ||||||
Brokerage
commission fees payable
|
1,400 | - | ||||||
Other
liabilities
|
1,156 | - | ||||||
Total
liabilities
|
159,252 | - | ||||||
Commitments and Contingencies
(Notes 3, 4 and 5)
|
||||||||
Partners'
Capital
|
||||||||
General
Partner
|
- | 20 | ||||||
Limited
Partners
|
20,209,419 | 980 | ||||||
Total
Partners' Capital
|
20,209,419 | 1,000 | ||||||
Total
liabilities and partners' capital
|
$ | 20,368,671 | $ | 1,000 | ||||
Limited
Partners' units outstanding
|
1,000,000 | - | ||||||
Net
asset value per unit
|
$ | 20.21 | $ | - | ||||
Market
value per unit
|
$ | 19.46 | $ | - |
United
States Gasoline Fund, LP
|
Schedule
of Investments
|
At
December 31, 2008
|
Open
Futures Contracts
|
||||||||||||
Gain
on Open
|
||||||||||||
Number
of
|
Commodity
|
%
of Partners'
|
||||||||||
Contracts
|
Contracts
|
Capital
|
||||||||||
United
States Contracts
|
||||||||||||
Gasoline
Futures contracts, expire February 2009
|
453 | $ | 1,431,721 | 7.08 | ||||||||
Cash
Equivalents
|
||||||||||||
Cost
|
Market
Value
|
|||||||||||
United
States - Money Market Funds
|
||||||||||||
Goldman
Sachs Financial Square Funds - Government Fund
|
$ | 3,031,801 | 3,031,801 | 15.00 | ||||||||
Goldman
Sachs Financial Square Funds - Treasury Instruments Fund
|
1,812,771 | 1,812,771 | 8.97 | |||||||||
$ | 4,844,572 | 4,844,572 | 23.97 | |||||||||
Cash
|
6,846,938 | 33.88 | ||||||||||
Total
Cash and Cash Equivalents
|
11,691,510 | 57.85 | ||||||||||
Cash
on deposit with broker
|
7,114,841 | 35.21 | ||||||||||
Liabilities,
less receivables
|
(28,653 | ) | (0.14 | ) | ||||||||
Total
Partners' Capital
|
$ | 20,209,419 | 100.00 |
United
States Gasoline Fund, LP
|
||
Statements
of Operations
|
||
For
the period from February 26, 2008 (commencement of operations) to December
31, 2008
|
||
and
the period from April 12, 2007 (inception) to December 31,
2007
|
Period
from
|
Period
from
|
|||||||
February
26, 2008 to
|
April
12, 2007 to
|
|||||||
December
31, 2008
|
December
31, 2007
|
|||||||
Income
|
||||||||
Gains
(losses) on trading of commodity futures contracts:
|
||||||||
Realized
losses on closed positions
|
$ | (11,364,767 | ) | $ | - | |||
Change
in unrealized gains on open positions
|
1,431,721 | - | ||||||
Interest
income
|
270,986 | - | ||||||
Other
income
|
10,000 | - | ||||||
Total
loss
|
(9,652,060 | ) | - | |||||
Expenses
|
||||||||
General
Partner management fees (Note 3)
|
97,932 | - | ||||||
Brokerage
commission fees
|
16,173 | - | ||||||
Audit
and tax reporting fees
|
150,794 | - | ||||||
Other
expenses
|
7,979 | - | ||||||
Total
expenses
|
272,878 | - | ||||||
Expense waiver
|
(126,348 | ) | - | |||||
Net
expenses
|
146,530 | - | ||||||
Net
loss
|
$ | (9,798,590 | ) | $ | - | |||
Net
loss per limited partnership unit
|
$ | (29.79 | ) | $ | - | |||
Net
loss per weighted average limited partnership unit
|
$ | (23.69 | ) | $ | - | |||
Weighted
average limited partnership units outstanding
|
413,548 | - |
Statements
of Changes in Partners' Capital
|
||||
For
the period from February 26, 2008 (commencement of operations) to December
31, 2008
|
||||
and
the period from April 12, 2007 (inception) to December 31,
2007
|
General
Partner
|
Limited
Partners
|
Total
|
||||||||||
Balances,
at Inception
|
$ | - | $ | - | $ | - | ||||||
Initial
contribution of capital
|
20 | 980 | 1,000 | |||||||||
Balances,
at December 31, 2007
|
20 | 980 | 1,000 | |||||||||
Addition
of 1,300,000 partnership units
|
- | 46,114,901 | 46,114,901 | |||||||||
Redemption
of 300,000 partnership units
|
(20 | ) | (16,107,872 | ) | (16,107,892 | ) | ||||||
Net
loss
|
- | (9,798,590 | ) | (9,798,590 | ) | |||||||
Balances,
at December 31, 2008
|
$ | - | $ | 20,209,419 | $ | 20,209,419 | ||||||
Net
Asset Value Per Unit
|
||||||||||||
At
April 12, 2007 (inception)
|
$ | - | ||||||||||
At
February 26, 2008 (commencement of operations)
|
$ | 50.00 | ||||||||||
At
December 31, 2008
|
$ | 20.21 |
United
States Gasoline Fund, LP
|
|
Statements
of Cash Flows
|
|
For
the period from February 26, 2008 (commencement of operations) to December
31, 2008 and
|
|
the
period from April 12, 2007 (inception) to December 31,
2007
|
Period
from
|
Period
from
|
|||||||
February
26, 2008 to
|
April
12, 2007 to
|
|||||||
December
31, 2008
|
December
31, 2007
|
|||||||
Cash
Flows from Operating Activities:
|
||||||||
Net
loss
|
$ | (9,798,590 | ) | $ | - | |||
Adjustments
to reconcile net loss to net cash used in operating
activities:
|
||||||||
Increase
in commodity futures trading account - cash
|
(7,114,841 | ) | - | |||||
Unrealized
gains on futures contracts
|
(1,431,721 | ) | - | |||||
Increase
in receivable from general partner
|
(126,348 | ) | - | |||||
Increase
in interest receivable
|
(4,251 | ) | - | |||||
Increase
in General Partner management fees payable
|
5,902 | - | ||||||
Increase
in audit and tax reporting fees payable
|
150,794 | - | ||||||
Increase
in brokerage commission fees payable
|
1,400 | - | ||||||
Increase
in other liabilities
|
1,156 | - | ||||||
Net
cash used in operating activities
|
(18,316,499 | ) | - | |||||
Cash
Flows from Financing Activities:
|
||||||||
Subscription
of partnership units
|
46,114,901 | 1,000 | ||||||
Redemption
of partnership units
|
(16,107,892 | ) | - | |||||
Net
cash provided by financing activities
|
30,007,009 | 1,000 | ||||||
Net
Increase in Cash and Cash Equivalents
|
11,690,510 | 1,000 | ||||||
Cash and Cash
Equivalents, beginning of period
|
1,000 | - | ||||||
Cash and Cash
Equivalents, end of period
|
$ | 11,691,510 | $ | 1,000 |
For the period
from February
26,
2008 to
December 31,
2008
|
For the period
from April 12,
2007 to
December 31,
2007
|
|||||||
Per Unit Operating
Performance:
|
||||||||
Net
asset value, beginning of period
|
$
|
50.00
|
$
|
-
|
||||
Total loss
|
(29.44
|
) |
-
|
|||||
Net
expenses
|
(0.35
|
) |
-
|
|||||
Net
decrease in net asset value
|
(29.79
|
) |
-
|
|||||
Net
asset value, end of period
|
$
|
20.21
|
$ |
-
|
||||
Total
Return
|
(59.58
|
)%
|
-
|
%
|
||||
Ratios
to Average Net Assets
|
||||||||
Total loss
|
(50.09
|
)%
|
-
|
%
|
||||
Management
fees
|
0.60
|
%*
|
-
|
%
|
||||
Total
expenses excluding management fees
|
1.07
|
%*
|
-
|
%
|
||||
Expenses
waived
|
0.77
|
%*
|
-
|
%
|
||||
Net
expenses excluding management fees
|
0.30
|
%*
|
-
|
%
|
||||
Net loss
|
(50.85
|
)%
|
-
|
%
|
||||
*Annualized |
First
Quarter
|
Second
Quarter
|
Third
Quarter
|
Fourth
Quarter
|
|||||||||||||
2008
|
2008
|
2008
|
2008
|
|||||||||||||
Total
Income (Loss)
|
$ | (626,337 | ) | $ | 6,213,819 | $ | (7,086,745 | ) | $ | (8,152,797 | ) | |||||
Total
Expenses
|
12,513 | 169,233 | 137,198 | (46,066 | ) | |||||||||||
Expense
Waivers
|
- | (115,094 | ) | (81,054 | ) | 69,800 | ||||||||||
Net
Expenses
|
12,513 | 54,139 | 56,144 | 23,734 | ||||||||||||
Net
Income (Loss)
|
$ | (638,850 | ) | $ | 6,159,680 | $ | (7,142,889 | ) | $ | (8,176,531 | ) | |||||
Net
Income (Loss) per Unit
|
$ | (1.47 | ) | $ | 16.70 | $ | (15.67 | ) | $ | (29.53 | ) |
First
Quarter
|
Second
Quarter
|
Third
Quarter
|
Fourth
Quarter
|
|||||||||||||
2007
|
2007
|
2007
|
2007
|
|||||||||||||
Total
Income (Loss)
|
$ | - | $ | - | $ | - | $ | - | ||||||||
Total
Expenses
|
- | - | - | - | ||||||||||||
Net
Income (Loss)
|
$ | - | $ | - | $ | - | $ | - | ||||||||
Net
Income (Loss) per Unit
|
$ | - | $ | - | $ | - | $ | - |
Total
|
Level
I
|
Level
II
|
Level
III
|
|||||||||||||
Investments
|
$ | 4,844,572 | $ | 4,844,572 | $ | - | $ | - | ||||||||
Derivative
assets
|
1,431,721 | 1,431,721 | - | - |
Documents
|
Page
|
|||
Report
of Independent Registered Public Accounting Firm.
|
92
|
|||
Consolidated
Statements of Financial Condition.
|
93
|
|||
Consolidated
Statements of Operations and Other Comprehensive Income.
|
94
|
|||
Consolidated
Statements of Changes in Member’s Equity (Deficit).
|
95
|
|||
Consolidated
Statements of Cash Flows.
|
96
|
|||
Notes
to Consolidated Financial
Statements.
|
97
|
ASSETS
|
2008
|
2007
|
||||||
Cash
|
$ | 125,815 | $ | 53,910 | ||||
Management fees
receivable
|
893,111 | 500,128 | ||||||
Investments (Note
2)
|
34,579 | 123,398 | ||||||
Deferred offering costs (Note
3)
|
352,794 | 187,056 | ||||||
Other
assets
|
1,960 | 2,940 | ||||||
Total
assets
|
$ | 1,408,259 | $ | 867,432 | ||||
LIABILITIES AND MEMBER'S EQUITY
(DEFICIT)
|
||||||||
LIABILITIES:
|
||||||||
Accounts
payable
|
$ | 624,688 | $ | 1,035,444 | ||||
Expense waiver payable (Note
3)
|
311,038 | - | ||||||
Minority
interest: Limited Partner in United
States Heating Oil Fund, LP
|
- | 980 | ||||||
Minority interest: Limited Partner
in United States Gasoline Fund,
LP
|
- | 980 | ||||||
Minority interest: Limited Partner
in United States 12 Month Natural Gas
Fund, LP
|
980 | 980 | ||||||
Minority interest: Limited Partner
in United States Short Oil Fund,
LP
|
980 | - | ||||||
Total
liabilities
|
937,686 | 1,038,384 | ||||||
COMMITMENTS AND
CONTINGENCIES (Note
6)
|
||||||||
MEMBER'S EQUITY
(DEFICIT) (Note
5)
|
470,573 | (170,952 | ) | |||||
Total
liabilities and member's equity
|
$ | 1,408,259 | $ | 867,432 |
2008
|
2007
|
|||||||
REVENUE:
|
||||||||
Management
fees
|
$ | 8,631,883 | $ | 4,871,265 | ||||
EXPENSES:
|
||||||||
Distribution
fees
|
1,026,625 | 650,829 | ||||||
Administration
fees
|
665,696 | 434,905 | ||||||
Transfer agent
fees
|
208,274 | 134,758 | ||||||
Custodial
fees
|
118,453 | 80,184 | ||||||
Professional
fees
|
1,159,643 | 1,337,170 | ||||||
Salaries, wages and
benefits
|
1,389,888 | 690,488 | ||||||
Expense waiver
expense
|
311,038 | - | ||||||
Advertising and
promotion
|
79,202 | 49,370 | ||||||
General and
administrative
|
519,379 | 356,460 | ||||||
Total
expenses
|
5,478,198 | 3,734,164 | ||||||
OTHER
INCOME:
|
||||||||
Dividend
income
|
14 | 425 | ||||||
Realized gains on
investments
|
- | 85,415 | ||||||
Total
other income
|
14 | 85,840 | ||||||
NET INCOME
|
3,153,699 | 1,222,941 | ||||||
OTHER COMPREHENSIVE
INCOME:
|
||||||||
Unrealized loss on investments
(Note 2)
|
(88,820 | ) | (433,189 | ) | ||||
COMPREHENSIVE
INCOME
|
$ | 3,064,879 | $ | 789,752 |
BALANCE,
December 31,
2006
|
$ | (395,845 | ) | |
Contributions (Note
3)
|
1,280,906 | |||
Distributions
|
(343,769 | ) | ||
Other comprehensive income (Note
5)
|
(433,189 | ) | ||
Offering costs (Note
2)
|
(1,501,996 | ) | ||
Net income
|
1,222,941 | |||
BALANCE,
December 31,
2007
|
(170,952 | ) | ||
Other comprehensive income (Note
5)
|
(88,820 | ) | ||
Offering costs (Note
2)
|
(553,756 | ) | ||
Distributions
|
(1,869,598 | ) | ||
Net income
|
3,153,699 | |||
BALANCE,
December 31,
2008
|
$ | 470,573 |
2008
|
2007
|
|||||||
CASH FLOWS FROM OPERATING
ACTIVITIES:
|
||||||||
Net
income
|
$ | 3,153,699 | $ | 1,222,941 | ||||
Adjustments to
reconcile net income to net cash provided by (used in) operating
activities:
|
||||||||
Realized gain
from sales of securities
|
- | (85,415 | ) | |||||
Increase in
management fees receivable
|
(392,983 | ) | (167,392 | ) | ||||
Increase in
deferred offering costs
|
(719,495 | ) | (897,197 | ) | ||||
Decrease
(increase) in other assets
|
980 | (2,940 | ) | |||||
Increase in
expense waiver payable
|
311,038 | - | ||||||
Decrease in
accounts payable
|
(410,756 | ) | (572,357 | ) | ||||
|
||||||||
Net
cash provided by (used in) operating activities
|
1,942,483 | (502,360 | ) | |||||
CASH FLOWS FROM INVESTING
ACTIVITIES:
|
||||||||
Proceeds from
sales of securities
|
- | 464,985 | ||||||
CASH FLOWS FROM FINANCING
ACTIVITIES:
|
||||||||
Distributions
|
(1,869,598 | ) | - | |||||
Increase
(decrease):
|
||||||||
Minority interest
in United States Heating Oil Fund, LP
|
(980 | ) | 980 | |||||
Minority interest
in United States Gasoline Fund, LP
|
(980 | ) | 980 | |||||
Minority interest
in United States Short Oil Fund, LP
|
980 | - | ||||||
Minority interest
in United States 12 Month Natural Gas Fund,
LP
|
- | 980 | ||||||
Net
cash provided by (used in) financing activities
|
(1,870,578 | ) | 2,940 | |||||
NET INCREASE (DECREASE) IN
CASH
|
71,905 | (34,435 | ) | |||||
CASH, beginning of
year
|
53,910 | 88,345 | ||||||
CASH, end of
year
|
$ | 125,815 | $ | 53,910 | ||||
SUPPLEMENTAL
DISCLOSURE OF NON-CASH INVESTING
AND FINANCING ACTIVITIES:
|
||||||||
Investments and
offering costs contributed by member, net of liabilities
assumed (Note
3)
|
$ | - | $ | 800,313 | ||||
Distribution of
investments to parent
|
$ | - | $ | 343,769 |
At December 31,
2008:
|
Total
|
|
Level I
|
|
|
Level II
|
|
|
Level III
|
|||||||
Investments
|
$ | 34,579 | $ | 34,579 | $ | - | $ | - | ||||||||
At December 31,
2007:
|
Total
|
Level I
|
Level II
|
Level III
|
||||||||||||
Investments
|
$ | 123,398 | $ | 123,398 | $ | - | $ | - |
Balance,
December
31, 2006
|
$ | - | ||
Unrealized holding losses on
investments
|
(443,189 | ) | ||
Balance,
December
31, 2007
|
(443,189 | ) | ||
Unrealized holding losses on
investments
|
(88,820 | ) | ||
Balance,
December
31, 2008
|
$ | (532,009 | ) |
Change
in
|
|||||||||||||||||||||||
Pension
|
|||||||||||||||||||||||
Value
and
|
|||||||||||||||||||||||
Fees
|
Nonqualified
|
||||||||||||||||||||||
Earned
or
|
Non-Equity
|
Deferred
|
|||||||||||||||||||||
Paid
in
|
Stock
|
Option
|
Incentive
Plan
|
Compensation
|
All
Other
|
||||||||||||||||||
Name
|
Cash
|
Awards
|
Awards
|
Compensation
|
Plan
|
Compensation(1)
|
Total
|
||||||||||||||||
Management
Directors
|
|||||||||||||||||||||||
Nicholas
Gerber
|
$ | 0 |
NA
|
NA
|
NA
|
$ | 0 | $ | 0 | $ | 0 | ||||||||||||
Andrew
F. Ngim
|
$ | 0 |
NA
|
NA
|
NA
|
$ | 0 | $ | 0 | $ | 0 | ||||||||||||
Howard
Mah
|
$ | 0 |
NA
|
NA
|
NA
|
$ | 0 | $ | 0 | $ | 0 | ||||||||||||
Robert
L. Nguyen
|
$ | 0 |
NA
|
NA
|
NA
|
$ | 0 | $ | 0 | $ | 0 | ||||||||||||
Independent
Directors
|
|||||||||||||||||||||||
Peter
M. Robinson
|
$ | 52,000 |
NA
|
NA
|
NA
|
$ | 0 | $ | 35,000 | $ | 87,000 | ||||||||||||
Gordon
L. Ellis
|
$ | 52,000 |
NA
|
NA
|
NA
|
$ | 0 | $ | 35,000 | $ | 87,000 | ||||||||||||
Malcolm
R. Fobes III
|
$ | 73,000 |
NA
|
NA
|
NA
|
$ | 0 | $ | 35,000 | $ | 108,000 |
2008
|
2007
|
|||||
Audit
fees
|
$
|
25,000*
|
$
|
2,500
|
||
Audit-related
fees
|
—
|
|
—
|
|||
Tax
fees
|
—
|
|
—
|
|||
All
other fees
|
—
|
—
|
||||
$
|
25,000
|
$
|
2,500
|
|||
* Amount expected to be billed for 2008 services. |
|
1.
|
See
Index to Financial Statements on page 77.
|
2.
|
No
financial statement schedules are filed herewith because (i) such
schedules are not required or (ii) the information required has been
presented in the aforementioned financial statements.
|
3.
|
Exhibits
required to be filed by Item 601 of Regulation
S-K.
|
Exhibit
Number
|
Description of Document | ||
3.1*
|
Form
of Amended and Restated Agreement of Limited
Partnership.
|
||
3.2**
|
Certificate
of Limited Partnership of the Registrant.
|
||
10.1*
|
Form
of Initial Authorized Purchaser Agreement.
|
||
10.2*
|
Form
of Marketing Agent Agreement.
|
||
10.3***
|
License
Agreement.
|
||
10.4*
|
Form
of Custodian Agreement.
|
||
10.5****
|
Amendment
Agreement to the Custodian Agreement.
|
||
10.6*
|
Form
of Administrative Agency Agreement.
|
||
10.7****
|
Amendment
Agreement to the Administrative Agency Agreement.
|
||
14.1****
|
Code of Ethics.
|
||
31.1****
|
|
Certification of Principal Executive Officer
Pursuant to Rule 13a-14(a) under the Securities Exchange Act of
1934.
|
|
31.2****
|
|
Certification of Principal Financial Officer
Pursuant to Rule 13a-14(a) under the Securities Exchange Act of
1934.
|
32.1****
|
|
Certification of Principal Executive Officer
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U. S. C.
1350).
|
|
32.2****
|
|
Certification of Principal Financial Officer
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U. S. C.
1350).
|
*
|
Incorporated
by reference to Registrant’s Pre-Effective Amendment No. 1 to the
Registration Statement on Form S-1 (File No. 333-142206) filed on January
11, 2008.
|
**
|
Incorporated
by reference to Registrant’s Registration Statement on Form S-1 (File No.
333-142206) filed on April 18, 2007.
|
***
|
Incorporated
by reference to United States Natural Gas Fund, LP’s Quarterly Report on
Form 10-Q for the Quarter ended March 31, 2007, filed on June 1,
2007.
|
****
|
Filed
herewith.
|
Signature
|
Title
(Capacity)
|
Date
|
|
/s/
Nicholas D. Gerber
|
Management
Director
|
March
31, 2009
|
|
Nicholas
D. Gerber
|
|||
/s/
Howard Mah
|
Management
Director
|
March
31, 2009
|
|
Howard
Mah
|
|||
/s/
Andrew Ngim
|
Management
Director
|
March
31, 2009
|
|
Andrew
Ngim
|
|||
/s/
Robert Nguyen
|
Management
Director
|
March
31, 2009
|
|
Robert
Nguyen
|
|||
/s/
Peter M. Robinson
|
Independent
Director
|
March
31, 2009
|
|
Peter
M. Robinson
|
|||
/s/
Gordon L. Ellis
|
Independent
Director
|
March
31, 2009
|
|
Gordon
L. Ellis
|
|||
/s/
Malcolm R. Fobes III
|
Independent
Director
|
March
31, 2009
|
|
Malcolm
R. Fobes III
|