United States Commodity Funds LLC Lowers Fees of United States Agriculture Index Fund (USAG)
ALAMEDA, Calif., May 30, 2012 /PRNewswire/ -- United States Commodity Funds LLC (USCF) announced a voluntary reduction in a portion of its management fee for the United States Agriculture Index Fund (USAG). As of May 29, 2012, the management fee will be reduced to 0.80% from 0.95%. USCF anticipates that the waiver will remain in place through March 31, 2013. This reduction is voluntary, and may be terminated or modified prior to March 31, 2013, with the approval of USCF's Board of Directors.
Chief Investment Officer John Hyland states, "We are aware that investors looking to use USAG as a useful tool for investing in Agricultural futures contracts over the long term will also be sensitive to expenses. We think that offering it with lower expenses will help generate economies of scale for both trading and investing and make the fund even more competitive with other agricultural funds."
The United States Agriculture Index Fund (USAG) is an exchange-traded security that is designed to track, in percentage terms, the price movements of the SummerHaven Dynamic Agriculture Index Total Return (SDAI). USAG issues units that may be purchased and sold on the NYSE Arca.
United States Agriculture Index Fund tracks a portfolio of Agriculture futures contracts traded on the ICE Futures, CBOT, KCBT and ICE Canada exchanges. The Agriculture Index attempts to maximize backwardation and minimize contango while using contracts in the liquid portions of the futures curve.
United States Commodity Funds LLC manages 11 commodity exchange traded products, and had a total of $3.1 billion in assets under management as of March 31, 2012.
For additional information please read attached Prospectus, call 800-920-0259, or visit www.unitedstatesagricultureindexfund.com.
This material must be preceded or accompanied by a prospectus. Please read it carefully before investing or sending money.
Commodities and futures generally are volatile and are not suitable for all investors. USAG is speculative and involves a high degree of risk. An investor may lose all or substantially all of an investment in the USAG. Funds, such as USAG, that focus on a single sector generally experience greater volatility.
USAG is not a registered investment company so you do not have the protections of the Investment Company Act of 1940, as amended, and USAG is not subject to regulations thereunder. Accordingly, you do not have the protections afforded by that statute which include, for example: (1) controls over activities of an investment company's investment adviser; (2) an express private right of action for shareholders; (3) restrictions on transactions between the fund and the adviser; (4) restrictions on investments; (5) regulation of adviser services and fees; and (6) capital structure requirements, including restrictions on debt.
Investing in commodity futures interests subjects USAG to the risks of the agricultural commodities industry and this could result in large fluctuations in the price of USAG's units.
The price of USAG's units may be influenced by factors such as the short-term supply and demand for Agriculture futures and the short-term supply and demand for USAG's units. This may cause the units to trade at a price that is above or below USAG's NAV per unit. Accordingly, changes in the price of units may substantially vary from the changes in the value of the SummerHaven Agriculture Index Total Return(SM) (SDAI). If this variation occurs, then you may not be able to effectively use USAG as a way to indirectly invest in the SDAI.
For further discussion of these and additional risks associated with an investment in USAG units, see the prospectus that has preceded or accompanied this announcement, downloaded at
http://www.unitedstatesagricultureindexfund.com/documents/pdfs/usag-prospectus-20120529.pdf
Not FDIC insured, may lose value, no bank guarantee.
An investment in USAG is not suitable for all investors. Commodities trading is highly speculative and USAG is not suitable for all investors. USAG is likely to be volatile and could suffer from periods of prolonged decline in value.
Units are not individually redeemable and the owners of Units may purchase or redeem Units from a Fund in Creation/Redemption Units only.
Distributed by ALPS Distributors, Inc.
USO000615 EXP. 7/01/2012
SOURCE United States Commodity Funds LLC
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