The USCF Commodity Strategy Fund (the Fund) seeks long-term total return.
The Fund seeks to maintain substantial economic exposure to the performance of the commodities markets primarily by investing in a wholly-owned Cayman Islands subsidiary of the Fund (the Subsidiary). The Fund will not invest more than 25% of its total assets in the Subsidiary. The Fund’s portfolio of futures contracts will generally consist of the commodities futures contracts included in the SDCI, in proportionally equal weights by notional amount as the SDCI.
The Fund’s portfolio of futures contracts is reconstituted and rebalanced on a monthly basis to reflect the changing composition of the SDCI. The Fund may also invest in other futures contracts well as derivative instruments. To collateralize its investments, the Fund, directly through the Subsidiary, will hold short-term U.S. government securities (e.g., Treasuries). In managing the collateral portion of the Fund’s investment strategy, the Fund’s Adviser will seek to at least match the return of the hypothetical investments used by the SDCI to collateralize the component futures contracts, but may seek to enhance interest returns or increase portfolio liquidity by investing in money market instruments, investment grade fixed-income securities, cash, and cash equivalents.
About the SummerHaven Dynamic Commodity Index
The SummerHaven Dynamic Commodity Index Total ReturnSM (SDCI) is a total return commodity sector index designed to broadly represent major commodities and reflect the performance of a fully margined and collateralized portfolio of exchange-traded commodities futures contracts. The SDCI is based on the notion that commodities with low inventories tend to outperform commodities with high inventories, and that priced-based measures can be used to help assess the current state of commodity inventories.
The total return of the SDCI is based upon the market price movements of its component futures contracts and the return on the hypothetical investments used to collateralize those futures contracts. At any time, the SDCI is comprised of 14 commodity futures contracts, weighted equally by notional amount, selected each month based upon a universe of 27 eligible commodities futures contracts. The 14 selected contracts are equally weighted and represent six sectors: Energy, Precious Metals, Industrial Metals, Grains, Livestock and Softs. The SDCI is rules-based and reconstituted and rebalanced monthly.
Share Classes, Management, and Service Providers
|Class A||Class I|
|Total Annual Fund Operating Expenses†|
|Fee Waivers and Expense Reimbursements*|
|Net Expense Ratio‡|
|Administrator||Brown Brothers Harriman & Co.|
|Distributor||ALPS Distributors, Inc.|
|Investment Adviser||USCF Advisers LLC|
|Portfolio Managers||Andy Ngim, Kevin Baum|
|Benchmark Index Provider||SummerHaven Index Management|
†USCFX/USCIX commenced operations on
*USCF Advisers, LLC (the “Adviser”) has contractually agreed to waive and/or reimburse fees or pay fund expenses in order to limit the Fund’s Total Annual Operating Expenses After Fee Waiver / Expense Reimbursements (excluding interest expenses, taxes, brokerage commissions, expenses that are capitalized in accordance with generally accepted accounting principles, expenses related to short sales, acquired fund fees and expenses, and extraordinary expenses) to 1.30% and 0.95% of the Fund’s average daily net assets for the Class A and Class I share classes, respectively. This agreement (the “Expense Limitation Agreement”) is in effect through July 31, 2018. The Adviser will be permitted to recover, on a class-by-class basis, expenses it has borne through the Expense Limitation Agreement to the extent that the Fund’s expenses in later periods fall below the expense cap in effect at the time of waiver or reimbursement. The Fund will not be obligated to reimburse any such waived fees or expenses more than three years after the date on which the fees or expenses were waived or reimbursed. The Expense Limitation Agreement may not be terminated or modified prior to July 31, 2018 except with the approval of the Fund’s Board of Trustees (the “Board”).
‡ as of Prospectus dated
The Fund's Commodity Holdings
The portfolio consists of listed futures contracts and other commodity-related investments and may consist of forwards and swap contracts. These investments will be collateralized by cash, cash equivalents and US government obligations with remaining maturities of two years or less.
Below are the eligible commodities that may comprise the Index on a monthly basis:
The USCF Commodity Strategy Fund launched on , therefore, Performance information is not available at this time.
Growth of $10,000 Investment
The USCF Commodity Strategy Fund launched on , therefore, Growth of $10,000 Investment information is not available at this time.
The USCF Commodity Strategy Fund launched on , therefore, Distribution information is not available at this time.