x | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended |
¨ | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from to . |
Delaware | 20-2830691 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer | x | Accelerated filer | ¨ |
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Page | |
Part I. FINANCIAL INFORMATION | |
Item 1. Condensed Financial Statements. | 1 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. | |
Item 3. Quantitative and Qualitative Disclosures About Market Risk. | |
Item 4. Controls and Procedures. | |
Part II. OTHER INFORMATION | |
Item 1. Legal Proceedings. | |
Item 1A. Risk Factors. | |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. | |
Item 3. Defaults Upon Senior Securities. | |
Item 4. Mine Safety Disclosures. | |
Item 5. Other Information. | |
Item 6. Exhibits. |
41 |
Documents | Page | |
Condensed Statements of Financial Condition at | 2 | |
Condensed Schedule of Investments (Unaudited) at | 3 | |
Condensed Statements of Operations (Unaudited) for the three and | 4 | |
Condensed Statement of Changes in Partners’ Capital (Unaudited) for the | 5 | |
Condensed Statements of Cash Flows (Unaudited) for the | 6 | |
Notes to Condensed Financial Statements for the period ended | 7 |
1 | ||
United States Oil Fund, LP
Condensed Statements of Financial Condition
June 30, 2013 | December 31, 2012 | |||||||
Assets | ||||||||
Cash and cash equivalents (Notes 2 and 5) | $ | 780,316,999 | $ | 1,019,006,171 | ||||
Equity in UBS Securities LLC trading accounts: | ||||||||
Cash and cash equivalents | 90,902,261 | 154,761,599 | ||||||
Unrealized gain on open commodity futures contracts | 5,111,420 | 67,180,420 | ||||||
Receivable for units sold | 23,939,678 | – | ||||||
Dividend receivable | 10,611 | 20,182 | ||||||
Other assets | 194,278 | 380,835 | ||||||
Total assets | $ | 900,475,247 | $ | 1,241,349,207 | ||||
Liabilities and Partners' Capital | ||||||||
Payable for units redeemed | $ | 81,817,789 | $ | 56,390,127 | ||||
Professional fees payable | 885,913 | 1,200,671 | ||||||
General Partner management fees payable (Note 3) | 298,441 | 516,449 | ||||||
License fees payable | 34,917 | 51,035 | ||||||
Brokerage commissions payable | 29,461 | 44,461 | ||||||
Other liabilities | 38,304 | 43,129 | ||||||
Total liabilities | 83,104,825 | 58,245,872 | ||||||
Commitments and Contingencies (Notes 3, 4 and 5) | ||||||||
Partners' Capital | ||||||||
General Partner | – | – | ||||||
Limited Partners | 817,370,422 | 1,183,103,335 | ||||||
Total Partners' Capital | 817,370,422 | 1,183,103,335 | ||||||
Total liabilities and partners' capital | $ | 900,475,247 | $ | 1,241,349,207 | ||||
Limited Partners' units outstanding | 23,900,000 | 35,400,000 | ||||||
Net asset value per unit | $ | 34.20 | $ | 33.42 | ||||
Market value per unit | $ | 34.18 | $ | 33.37 |
September 30, 2013 | December 31, 2012 | ||||||
Assets | |||||||
Cash and cash equivalents (Notes 2 and 5) | $ | 696,742,167 | $ | 1,019,006,171 | |||
Equity in UBS Securities LLC trading accounts: | |||||||
Cash and cash equivalents | 95,915,369 | 154,761,599 | |||||
Unrealized gain (loss) on open commodity futures contracts | (28,282,250) | 67,180,420 | |||||
Receivable for units sold | 18,558,995 | – | |||||
Dividend receivable | 9,089 | 20,182 | |||||
Other assets | 55,502 | 380,835 | |||||
Total assets | $ | 782,998,872 | $ | 1,241,349,207 | |||
Liabilities and Partners' Capital | |||||||
Payable for units redeemed | $ | – | $ | 56,390,127 | |||
Professional fees payable | 1,082,855 | 1,200,671 | |||||
General Partner management fees payable (Note 3) | 316,470 | 516,449 | |||||
License fees payable | 32,891 | 51,035 | |||||
Brokerage commissions payable | 28,461 | 44,461 | |||||
Other liabilities | 35,807 | 43,129 | |||||
Total liabilities | 1,496,484 | 58,245,872 | |||||
Commitments and Contingencies (Notes 3, 4 and 5) | |||||||
Partners' Capital | |||||||
General Partner | – | – | |||||
Limited Partners | 781,502,388 | 1,183,103,335 | |||||
Total Partners' Capital | 781,502,388 | 1,183,103,335 | |||||
Total liabilities and partners' capital | $ | 782,998,872 | $ | 1,241,349,207 | |||
Limited Partners' units outstanding | 21,200,000 | 35,400,000 | |||||
Net asset value per unit | $ | 36.86 | $ | 33.42 | |||
Market value per unit | $ | 36.85 | $ | 33.37 |
2 | ||
Number of Contracts | Unrealized Gain on Open Commodity Contracts | % of Partners' Capital | ||||||||||
Open Futures Contracts - Long | ||||||||||||
Foreign Contracts | ||||||||||||
ICE WTI Crude Oil Futures T August 2013 contracts, expiring July 2013 | 800 | $ | 648,000 | 0.08 | ||||||||
United States Contracts | ||||||||||||
NYMEX WTI Crude Oil Futures CL August 2013 contracts, expiring July 2013 | 7,666 | 4,463,420 | 0.55 | |||||||||
Total Open Futures Contracts* | 8,466 | $ | 5,111,420 | 0.63 |
Principal Amount | Market Value | |||||||||||
Cash Equivalents | ||||||||||||
United States Treasury Obligations | ||||||||||||
U.S. Treasury Bills: | ||||||||||||
0.08%, 10/31/2013 | $ | 100,000,000 | $ | 99,974,583 | 12.23 | |||||||
0.06%, 11/21/2013 | 70,000,000 | 69,983,317 | 8.57 | |||||||||
Total Treasury Obligations | 169,957,900 | 20.80 | ||||||||||
United States - Money Market Funds | ||||||||||||
Fidelity Institutional Government Portfolio - Class I | 53,627 | 53,627 | 0.00 | |||||||||
Goldman Sachs Financial Square Funds - Government Fund - Class FS | 107,792,941 | 107,792,941 | 13.19 | |||||||||
Morgan Stanley Institutional Liquidity Fund - Government Portfolio | 201,057,695 | 201,057,695 | 24.60 | |||||||||
Wells Fargo Advantage Government Money Market Fund - Class I | 200,009,958 | 200,009,958 | 24.47 | |||||||||
Total Money Market Funds | 508,914,221 | 62.26 | ||||||||||
Total Cash Equivalents | $ | 678,872,121 | 83.06 |
Number of Contracts | Unrealized Gain on Open Commodity Contracts | % of Partners' Capital | ||||||||
Open Futures Contracts – Long | ||||||||||
United States Contracts | ||||||||||
NYMEX WTI Crude Oil Futures CL August 2013 contracts, expiring July 2013* | 7,638 | $ | (28,282,250) | (3.62) |
Principal Amount | Market Value | ||||||||
Cash Equivalents | |||||||||
United States Treasury Obligations | |||||||||
U.S. Treasury Bills: | |||||||||
0.08%, 10/31/2013 | $ | 100,000,000 | $ | 99,993,750 | 12.79 | ||||
0.06%, 11/21/2013 | 70,000,000 | 69,994,050 | 8.96 | ||||||
Total Treasury Obligations | 169,987,800 | 21.75 | |||||||
United States - Money Market Funds | |||||||||
Fidelity Institutional Government Portfolio - Class I | 53,627 | 53,627 | 0.01 | ||||||
Goldman Sachs Financial Square Funds - Government Fund - Class FS | 107,792,941 | 107,792,941 | 13.79 | ||||||
Morgan Stanley Institutional Liquidity Fund - Government Portfolio | 201,057,695 | 201,057,695 | 25.73 | ||||||
Wells Fargo Advantage Government Money Market Fund - Class I | 200,009,958 | 200,009,958 | 25.59 | ||||||
Total Money Market Funds | 508,914,221 | 65.12 | |||||||
Total Cash Equivalents | $ | 678,902,021 | 86.87 |
3 | ||
Three months ended June 30, 2013 | Three months ended June 30, 2012 | Six months ended June 30, 2013 | Six months ended June 30, 2012 | |||||||||||||
Income | ||||||||||||||||
Gain (loss) on trading of commodity futures contracts: | ||||||||||||||||
Realized gain (loss) on closed positions | $ | 39,679,540 | $ | (294,745,220 | ) | $ | 103,306,810 | $ | (208,980,480 | ) | ||||||
Change in unrealized gain (loss) on open positions | (45,352,950 | ) | 67,289,580 | (62,069,000 | ) | 22,392,350 | ||||||||||
Dividend income | 33,926 | 73,224 | 76,622 | 109,321 | ||||||||||||
Interest income | 41,515 | 27,303 | 84,221 | 70,535 | ||||||||||||
Other income | 78,000 | 54,000 | 116,000 | 91,000 | ||||||||||||
Total income (loss) | (5,519,969 | ) | (227,301,113 | ) | 41,514,653 | (186,317,274 | ) | |||||||||
Expenses | ||||||||||||||||
General Partner management fees (Note 3) | 983,255 | 1,372,870 | 2,176,204 | 2,890,895 | ||||||||||||
Professional fees | 371,693 | 359,041 | 672,868 | 654,536 | ||||||||||||
Brokerage commissions | 237,090 | 323,199 | 486,713 | 630,956 | ||||||||||||
Registration fees | 114,217 | 11,830 | 227,180 | 23,660 | ||||||||||||
Other expenses | 82,067 | 105,692 | 174,408 | 216,053 | ||||||||||||
Total expenses | 1,788,322 | 2,172,632 | 3,737,373 | 4,416,100 | ||||||||||||
Net income (loss) | $ | (7,308,291 | ) | $ | (229,473,745 | ) | $ | 37,777,280 | $ | (190,733,374 | ) | |||||
Net income (loss) per limited partnership unit | $ | (0.59 | ) | $ | (7.32 | ) | $ | 0.78 | $ | (6.18 | ) | |||||
Net income (loss) per weighted average limited partnership unit | $ | (0.28 | ) | $ | (6.59 | ) | $ | 1.31 | $ | (5.51 | ) | |||||
Weighted average limited partnership units outstanding | 26,128,571 | 34,840,659 | 28,812,155 | 34,594,505 |
Three months ended September 30, 2013 | Three months ended September 30, 2012 | Nine months ended September 30, 2013 | Nine months ended September 30, 2012 | ||||||||||
Income | |||||||||||||
Gain (loss) on trading of commodity futures contracts: | |||||||||||||
Realized gain (loss) on closed positions | $ | 99,527,130 | $ | 146,631,510 | $ | 202,833,940 | $ | (62,348,970) | |||||
Change in unrealized loss on open positions | (33,393,670) | (65,971,870) | (95,462,670) | (43,579,520) | |||||||||
Dividend income | 27,985 | 50,326 | 104,607 | 159,647 | |||||||||
Interest income | 39,099 | 45,771 | 123,320 | 116,306 | |||||||||
Other income | 72,000 | 62,000 | 188,000 | 153,000 | |||||||||
Total income ( loss) | 66,272,544 | 80,817,737 | 107,787,197 | (105,499,537) | |||||||||
Expenses | |||||||||||||
General Partner management fees (Note 3) | 919,796 | 1,391,015 | 3,096,000 | 4,281,910 | |||||||||
Professional fees | 235,653 | 360,568 | 908,521 | 1,015,104 | |||||||||
Brokerage commissions | 223,754 | 329,550 | 710,467 | 960,506 | |||||||||
Registration fees | 115,473 | 23,660 | 342,653 | 61,498 | |||||||||
Other expenses | 78,015 | 119,035 | 252,423 | 320,910 | |||||||||
Total expenses | 1,572,691 | 2,223,828 | 5,310,064 | 6,639,928 | |||||||||
Net income (loss) | $ | 64,699,853 | $ | 78,593,909 | $ | 102,477,133 | $ | (112,139,465) | |||||
Net income (loss) per limited partnership unit | $ | 2.66 | $ | 2.29 | $ | 3.44 | $ | (3.89) | |||||
Net income (loss) per weighted average limited partnership unit | $ | 3.01 | $ | 2.19 | $ | 3.89 | $ | (3.20) | |||||
Weighted average limited partnership units outstanding | 21,478,261 | 35,838,043 | 26,340,659 | 35,012,044 |
4 | ||
General Partner | Limited Partners | Total | ||||||||||
Balances, at December 31, 2012 | $ | – | $ | 1,183,103,335 | $ | 1,183,103,335 | ||||||
Addition of 42,200,000 partnership units | – | 1,415,538,906 | 1,415,538,906 | |||||||||
Redemption of 53,700,000 partnership units | – | (1,819,049,099 | ) | (1,819,049,099 | ) | |||||||
Net income | – | 37,777,280 | 37,777,280 | |||||||||
Balances, at June 30, 2013 | $ | – | $ | 817,370,422 | $ | 817,370,422 | ||||||
Net Asset Value Per Unit: | ||||||||||||
At December 31, 2012 | $ | 33.42 | ||||||||||
At June 30, 2013 | $ | 34.20 |
General Partner | Limited Partners | Total | ||||||||
Balances, at December 31, 2012 | $ | – | $ | 1,183,103,335 | $ | 1,183,103,335 | ||||
Addition of 79,500,000 partnership units | – | 2,819,115,495 | 2,819,115,495 | |||||||
Redemption of 93,700,000 partnership units | – | (3,323,193,575) | (3,323,193,575) | |||||||
Net income | – | 102,477,133 | 102,477,133 | |||||||
Balances, at September 30, 2013 | $ | – | $ | 781,502,388 | $ | 781,502,388 | ||||
Net Asset Value Per Unit: | ||||||||||
At December 31, 2012 | $ | 33.42 | ||||||||
At September 30, 2013 | $ | 36.86 |
5 | ||
United States Oil Fund, LP
Six months ended June 30, 2013 | Six months ended June 30, 2012 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income (loss) | $ | 37,777,280 | $ | (190,733,374 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by | ||||||||
(used in) operating activities: | ||||||||
Decrease in commodity futures trading account - cash and cash equivalents | 63,859,338 | 8,370,757 | ||||||
Unrealized (gain) loss on open futures contracts | 62,069,000 | (22,392,350 | ) | |||||
(Increase) decrease in dividend receivable | 9,571 | (12,376 | ) | |||||
Decrease in interest receivable | – | 202 | ||||||
(Increase) decrease in other assets | 186,557 | (31,760 | ) | |||||
Decrease in investment payable | – | (553 | ) | |||||
Decrease in professional fees payable | (314,758 | ) | (500,369 | ) | ||||
Decrease in General Partner management fees payable | (218,008 | ) | (12,849 | ) | ||||
Decrease in license fees payable | (16,118 | ) | (6,904 | ) | ||||
Increase (decrease) in brokerage commissions payable | (15,000 | ) | 15,025 | |||||
Increase (decrease) in other liabilities | (4,825 | ) | 6,474 | |||||
Net cash provided by (used in) operating activities | 163,333,037 | (205,298,077 | ) | |||||
Cash Flows from Financing Activities: | ||||||||
Addition of partnership units | 1,391,599,228 | 1,899,495,690 | ||||||
Redemption of partnership units | (1,793,621,437 | ) | (1,504,063,699 | ) | ||||
Net cash provided by (used in) financing activities | (402,022,209 | ) | 395,431,991 | |||||
Net Increase (Decrease) in Cash and Cash Equivalents | (238,689,172 | ) | 190,133,914 | |||||
Cash and Cash Equivalents, beginning of period | 1,019,006,171 | 838,608,739 | ||||||
Cash and Cash Equivalents, end of period | $ | 780,316,999 | $ | 1,028,742,653 |
Nine months ended September 30, 2013 | Nine months ended September 30, 2012 | ||||||
Cash Flows from Operating Activities: | |||||||
Net income (loss) | $ | 102,477,133 | $ | (112,139,465) | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||
Decrease in commodity futures trading account - cash and cash equivalents | 58,846,230 | 12,037,812 | |||||
Unrealized loss on open futures contracts | 95,462,670 | 43,579,520 | |||||
(Increase) decrease in dividend receivable | 11,093 | (5,640) | |||||
Decrease in interest receivable | – | 35 | |||||
Decrease in other assets | 325,333 | 30,639 | |||||
Decrease investment payable | – | (553) | |||||
Decrease in professional fees payable | (117,816) | (214,349) | |||||
Decrease in General Partner management fees payable | (199,979) | (12,099) | |||||
Decrease in license fees payable | (18,144) | – | |||||
Increase (decrease) in brokerage commissions payable | (16,000) | 11,725 | |||||
Decrease in other liabilities | (7,322) | (1,831) | |||||
Net cash provided by (used in) operating activities | 256,763,198 | (56,714,206) | |||||
Cash Flows from Financing Activities: | |||||||
Addition of partnership units | 2,800,556,500 | 2,864,245,428 | |||||
Redemption of partnership units | (3,379,583,702) | (2,799,866,993) | |||||
Net cash provided by (used in) financing activities | (579,027,202) | 64,378,435 | |||||
Net Increase (Decrease) in Cash and Cash Equivalents | (322,264,004) | 7,664,229 | |||||
Cash and Cash Equivalents, beginning of period | 1,019,006,171 | 838,608,739 | |||||
Cash and Cash Equivalents, end of period | $ | 696,742,167 | $ | 846,272,968 |
6 | ||
7 | ||
8 | ||
9 | ||
10 | ||
11 | ||
12 | ||
For the six months ended June 30, 2013 (Unaudited) | For the six months ended June 30, 2012 (Unaudited) | |||||||
Per Unit Operating Performance: | ||||||||
Net asset value, beginning of period | $ | 33.42 | $ | 38.07 | ||||
Total income (loss) | 0.91 | (6.05 | ) | |||||
Total expenses | (0.13 | ) | (0.13 | ) | ||||
Net increase (decrease) in net asset value | 0.78 | (6.18 | ) | |||||
Net asset value, end of period | $ | 34.20 | $ | 31.89 | ||||
Total Return | 2.33 | % | (16.23 | )% | ||||
Ratios to Average Net Assets | ||||||||
Total income (loss) | 4.26 | % | (14.42 | )% | ||||
Expenses excluding management fees* | 0.32 | % | 0.24 | % | ||||
Management fees* | 0.45 | % | 0.45 | % | ||||
Net income (loss) | 3.87 | % | (14.76 | )% |
For the nine months ended September 30, 2013 (Unaudited) | For the nine months ended September 30, 2012 (Unaudited) | ||||||
Per Unit Operating Performance: | |||||||
Net asset value, beginning of period | $ | 33.42 | $ | 38.07 | |||
Total income (loss) | 3.64 | (3.70) | |||||
Total expenses | (0.20) | (0.19) | |||||
Net increase (decrease) in net asset value | 3.44 | (3.89) | |||||
Net asset value, end of period | $ | 36.86 | $ | 34.18 | |||
Total Return | 10.29 | % | (10.22) | % | |||
Ratios to Average Net Assets | |||||||
Total income (loss) | 11.72 | % | (8.30) | % | |||
Expenses excluding management fees* | 0.32 | % | 0.25 | % | |||
Management fees* | 0.45 | % | 0.45 | % | |||
Net income (loss) | 11.14 | % | (8.82) | % |
At June 30, 2013 | Total | Level I | Level II | Level III | ||||||||||||
Short-Term Investments | $ | 678,872,121 | $ | 678,872,121 | $ | — | $ | — | ||||||||
Exchange-Traded Futures Contracts | ||||||||||||||||
Foreign Contracts | 648,000 | 648,000 | — | — | ||||||||||||
United States Contracts | 4,463,420 | 4,463,420 | — | — |
At September 30, 2013 | Total | Level I | Level II | Level III | |||||||||
Short-Term Investments | $ | 678,902,021 | $ | 678,902,021 | $ | — | $ | — | |||||
Exchange-Traded Futures Contracts | |||||||||||||
Foreign Contracts | 0 | 0 | — | — | |||||||||
United States Contracts | (28,282,250) | (28,282,250) | — | — |
At December 31, 2012 | Total | Level I | Level II | Level III | ||||||||||||
Short-Term Investments | $ | 965,890,925 | $ | 965,890,925 | $ | — | $ | — | ||||||||
Exchange-Traded Futures Contracts | ||||||||||||||||
Foreign Contracts | 9,680,000 | 9,680,000 | — | — | ||||||||||||
United States Contracts | 57,500,420 | 57,500,420 | — | — |
At December 31, 2012 | Total | Level I | Level II | Level III | |||||||||
Short-Term Investments | $ | 965,890,925 | $ | 965,890,925 | $ | — | $ | — | |||||
Exchange-Traded Futures Contracts | |||||||||||||
Foreign Contracts | 9,680,000 | 9,680,000 | — | — | |||||||||
United States Contracts | 57,500,420 | 57,500,420 | — | — |
14 | ||
Derivatives not Accounted for as Hedging Instruments | Condensed Statements of Financial Condition Location | Fair Value At June 30, 2013 | Fair Value At December 31, 2012 | |||||||
Futures - Commodity Contracts | Assets | $ | 5,111,420 | $ | 67,180,420 |
Derivatives not Accounted for as Hedging Instruments | Condensed Statements of Financial Condition Location | Fair Value At September 30, 2013 | Fair Value At December 31, 2012 | ||||||
Futures - Commodity Contracts | Assets | $ | (28,282,250) | $ | 67,180,420 |
For the six months ended June 30, 2013 | For the six months ended June 30, 2012 | |||||||||||||||||
Derivatives not Accounted for as Hedging Instruments | Location of Gain or (Loss) on Derivatives Recognized in Income | Realized Gain or (Loss) on Derivatives Recognized in Income | Change in Unrealized Gain or (Loss) on Derivatives Recognized in Income | Realized Gain or (Loss) on Derivatives Recognized in Income | Change in Unrealized Gain or (Loss) on Derivatives Recognized in Income | |||||||||||||
Futures - Commodity Contracts | Realized gain (loss) on closed positions | $ | 103,306,810 | $ | (208,980,480 | ) | ||||||||||||
Change in unrealized gain (loss) on open positions | $ | (62,069,000 | ) | $ | 22,392,350 |
For the nine months ended September 30, 2013 | For the nine months ended September 30, 2012 | ||||||||||||||
Derivatives not Accounted for as Hedging Instruments | Location of Gain or (Loss) on Derivatives Recognized in Income | Realized Gain or (Loss) on Derivatives Recognized in Income | Change in Unrealized Gain or (Loss) on Derivatives Recognized in Income | Realized Gain or (Loss) on Derivatives Recognized in Income | Change in Unrealized Gain or (Loss) on Derivatives Recognized in Income | ||||||||||
Futures - Commodity Contracts | Realized gain (loss) on closed positions | $ | 202,833,940 | $ | (62,348,970) | ||||||||||
Change in unrealized gain (loss) on open positions | $ | (95,462,670) | $ | (43,579,520) |
NOTE 8 — SUBSEQUENT EVENTS
15 | ||
16 | ||
17 | ||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
18 | ||
19 | ||
20 | ||
21 | ||
22 | ||
$36.86.
23 | ||
$4,281,910.
2013 as compared to the nine months ended September 30, 2012.
24 | ||
$1,391,015.
2013, as compared to the three months ended September 30, 2012.
25 | ||
Dividend and Interest Income. USOF seeks to invest its assets such that it holds Oil Futures Contracts and Other Oil-Related Investments in an amount equal to the total net assets of its portfolio. Typically, such investments do not require USOF to pay the full amount of the contract value at the time of purchase, but rather require USOF to post an amount as a margin deposit against the eventual settlement of the contract. As a result, USOF retains an amount that is approximately equal to its total net assets, which USOF invests in Treasuries, cash and/or cash equivalents. This includes both the amount on deposit with the FCM as margin, as well as unrestricted cash and cash equivalents held with USOF’s custodian bank. The Treasuries, cash and/or cash equivalents earn income that accrues on a daily basis. For the three months ended JuneSeptember 30, 2013, USOF earned $75,441$67,084 in dividend and interest income on such Treasuries, cash and/or cash equivalents. Based on USOF’s average daily total net assets, this was equivalent to an annualized yield of approximately 0.03%. USOF purchased Treasuries during the three months ended JuneSeptember 30, 2013 and also held cash and/or cash equivalents during this time period. By comparison, for the three months ended JuneSeptember 30, 2012, USOF earned $100,527$96,097 in dividend and interest income on such Treasuries, cash and/or cash equivalents. Based on USOF’s average daily total net assets, this was equivalent to an annualized yield of approximately 0.03%. USOF purchased Treasuries during the three months ended JuneSeptember 30, 2012 and also held cash and/or cash equivalents during this time period. Interest rates on short-term investments held by USOF, including cash, cash equivalents and Treasuries, were lowersimilar during the three months ended JuneSeptember 30, 2013 compared to the three months ended JuneSeptember 30, 2012. As a result, the amount of income earned by USOF as a percentage of average daily total net assets was largely unchangedsimilar during the three months ended JuneSeptember 30, 2013 as compared to the three months ended JuneSeptember 30, 2012.
26 | ||
for the seven years ended September 30, 2013.
27 | ||
28 | ||
29 | ||
30 | ||
31 | ||
32 | ||
*PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
33 | ||
effect
Correlation Matrix June 30, 2003-2013 | Large Cap U.S. Equities (S&P 500) | U.S. Gov’t. Bonds (EFFAS U.S. Gov’t. Bond Index) | Global Equities (FTSE World Index) | Unleaded Gasoline | Diesel- Heating Oil | Natural Gas | Crude Oil | |||||||||||||||||||||
Large Cap U.S. Equities (S&P 500) | 1.00 | (0.288 | ) | 0.962 | 0.276 | 0.388 | 0.100 | 0.423 | ||||||||||||||||||||
U.S. Gov’t. Bonds (EFFAS U.S. Gov’t. Bond Index) | 1.00 | (0.264 | ) | (0.265 | ) | (0.251 | ) | 0.012 | (0.303 | ) | ||||||||||||||||||
Global Equities (FTSE World Index) | 1.00 | 0.320 | 0.459 | 0.147 | 0.491 | |||||||||||||||||||||||
Unleaded Gasoline | 1.00 | 0.764 | 0.263 | 0.736 | ||||||||||||||||||||||||
Diesel-Heating Oil | 1.00 | 0.387 | 0.868 | |||||||||||||||||||||||||
Natural Gas | 1.00 | 0.323 | ||||||||||||||||||||||||||
Crude Oil | 1.00 |
34 | ||
Correlation Matrix September 30, 2003-2013 | Large Cap U.S. Equities (S&P 500) | U.S. Gov’t. Bonds (EFFAS U.S. Gov’t. Bond Index) | Global Equities (FTSE World Index) | Unleaded Gasoline | Diesel- Heating Oil | Natural Gas | Crude Oil | ||||||||
Large Cap U.S. Equities (S&P 500) | 1.000 | (0.285) | 0.961 | 0.196 | 0.382 | 0.099 | 0.419 | ||||||||
U.S. Gov’t. Bonds (EFFAS U.S. Gov’t. Bond Index) | 1.000 | (0.258) | (0.248) | (0.265) | (0.019) | (0.321) | |||||||||
Global Equities (FTSE World Index) | 1.000 | 0.212 | 0.450 | 0.148 | 0.485 | ||||||||||
Unleaded Gasoline | 1.000 | 0.665 | 0.221 | 0.639 | |||||||||||
Diesel-Heating Oil | 1.000 | 0.390 | 0.869 | ||||||||||||
Natural Gas | 1.000 | 0.322 | |||||||||||||
Crude Oil | 1.000 |
Correlation Matrix 12 Months ended June 30, 2013 | Large Cap U.S. Equities (S&P 500) | U.S. Gov’t. Bonds (EFFAS U.S. Gov’t. Bond Index) | Global Equities (FTSE World Index) | Unleaded Gasoline | Diesel- Heating Oil | Natural Gas | Crude Oil | |||||||||||||||||||||
Large Cap U.S. Equities (S&P 500) | 1.00 | (0.001 | ) | 0.785 | 0.658 | 0.138 | 0.170 | 0.314 | ||||||||||||||||||||
U.S. Gov’t. Bonds (EFFAS U.S. Gov’t. Bond Index) | 1.00 | 0.300 | (0.102 | ) | (0.027 | ) | 0.521 | (0.158 | ) | |||||||||||||||||||
Global Equities (FTSE World Index) | 1.00 | 0.463 | 0.222 | 0.266 | 0.211 | |||||||||||||||||||||||
Unleaded Gasoline | 1.00 | 0.533 | (0.047 | ) | 0.671 | |||||||||||||||||||||||
Diesel-Heating Oil | 1.00 | (0.371 | ) | 0.752 | ||||||||||||||||||||||||
Natural Gas | 1.00 | (0.477 | ) | |||||||||||||||||||||||||
Crude Oil | 1.00 |
period.
Correlation Matrix 12 Months ended September 30, 2013 | Large Cap U.S. Equities (S&P 500) | U.S. Gov’t. Bonds (EFFAS U.S. Gov’t. Bond Index) | Global Equities (FTSE World Index) | Unleaded Gasoline | Diesel- Heating Oil | Natural Gas | Crude Oil | ||||||||
Large Cap U.S. Equities (S&P 500) | 1.000 | 0.177 | 0.852 | (0.009) | 0.047 | 0.065 | 0.270 | ||||||||
U.S. Gov’t. Bonds (EFFAS U.S. Gov’t. Bond Index) | 1.000 | 0.456 | (0.438) | (0.441) | 0.398 | (0.346) | |||||||||
Global Equities (FTSE World Index) | 1.000 | (0.272) | 0.012 | 0.138 | 0.111 | ||||||||||
Unleaded Gasoline | 1.000 | 0.556 | 0.064 | 0.480 | |||||||||||
Diesel-Heating Oil | 1.000 | (0.267) | 0.786 | ||||||||||||
Natural Gas | 1.000 | (0.403) | |||||||||||||
Crude Oil | 1.000 |
35 | ||
36 | ||
37 | ||
38 | ||
39 | ||
Item 1. | Legal Proceedings. |
Item 1A. | Risk Factors. |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
40 | ||
Item 3. | Defaults Upon Senior Securities. |
Item 4. | Mine Safety Disclosures. |
Item 5. | Other Information. |
Item 6. | Exhibits. |
Exhibit Number | Description of Document | |
31.1(1) | Certification by Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2(1) | Certification by Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1(1) | Certification by Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
32.2(1) | Certification by Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.INS(2) | XBRL Instance Document. | |
101.SCH(2) | XBRL Taxonomy Extension Schema. | |
101.CAL(2) | XBRL Taxonomy Extension Calculation Linkbase. | |
101.DEF(2) | XBRL Taxonomy Extension Definition Linkbase. | |
101.LAB(2) | XBRL Taxonomy Extension Label Linkbase. | |
101.PRE(2) | XBRL Taxonomy Extension Presentation Linkbase. |
(1) | Filed herewith. |
(2) | In accordance with Rule 406T of Regulation S-T, the information in these exhibits is furnished and deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections. |
41 | ||
By: | /s/ Nicholas D. Gerber | |
Nicholas D. Gerber | ||
President and Chief Executive Officer | ||
(Principal executive officer) |
By: | /s/ Howard Mah | |
Howard Mah | ||
Chief Financial Officer | ||
(Principal financial and accounting officer) |
42 | ||