United States Natural Gas Fund, LP (NYSE Arca:UNG), a Delaware-based investment fund, has entered into a significant derivatives agreement with The Bank of Nova Scotia (ScotiaBank). The agreement, formalized on Monday, will enable the fund to engage in over-the-counter (OTC) swaps, aiming to meet its investment objectives.
The International Swaps and Derivatives Association, Inc. (ISDA) 2002 Master Agreement, which was established between the two parties, sets the stage for United States Natural Gas Fund to invest in OTC swaps. While no specific OTC swap transactions have been conducted under the new agreement as of yet, the fund may initiate such transactions in the future.
In other recent news, the United States Natural Gas Fund has disclosed its monthly account statement for June 2024, shedding light on its performance and changes in net asset value. This report, a requirement under Rule 4.22 of the Commodity Exchange Act, was filed with the Securities and Exchange Commission, although it is not intended for filing purposes under the Securities Exchange Act of 1934. The United States Natural Gas Fund, managed by United States Commodity Funds LLC, is headquartered in Walnut Creek, California.
InvestingPro Insights
As the United States Natural Gas Fund, LP (UNG) navigates the derivatives market through its new agreement with ScotiaBank, recent data from InvestingPro may offer insights into the fund's current market standing. With a market capitalization of $745.94 million, UNG's investment strategies are under scrutiny, especially considering the fund's performance metrics. The fund's stock has experienced significant volatility, with a one-week price total return of -7.64% and a one-year price total return of -53.45%, indicating a challenging period for investors.
Two notable InvestingPro Tips for UNG highlight the stock's recent trajectory: the RSI suggests the stock is in oversold territory, and the price has fallen significantly over the last three months. These tips could signal potential entry points for investors looking for opportunities within the natural gas market, or they might serve as cautionary indicators for those considering the fund's derivatives strategies.
Investors should also note that UNG does not currently pay a dividend to shareholders, which could influence investment decisions depending on individual income strategies. For those seeking additional insights, there are over 10 more InvestingPro Tips available, which can be accessed for a deeper analysis of UNG's financial health and market position.
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