Bloomberg News

U.S. Natural Gas Fund Discount at 0.22% on March 23

March 25, 2012

The U.S. Natural Gas Fund, the largest exchange-traded fund in the fuel, closed at a discount of 0.22 percent on March 23, according to figures on the fund’s website. A discount means that the closing price of the shares is lower than the value of its underlying holdings in the fuel.

Natural gas for May delivery rose 0.1 cents, or 0 percent, to $2.373 per million British thermal units on the New York Mercantile Exchange on March 23.

================================================================================
                     March 23 March 22 March 21 March 20
                         2012     2012     2012     2012
================================================================================
                        ----------------------Per Share----------------------
Premium/discount       -0.22%   -0.28%   -0.49%   -0.16%
Net Asset Value        $17.88   $17.87   $18.49   $18.32
Closing price          $17.84   $17.82   $18.40   $18.29
                        ----------------Quantity of Fund Holdings-------------
NYMEX NG May 2012      13,210   13,285   12,461   12,084
================================================================================
                     March 23 March 22 March 21 March 20
                         2012     2012     2012     2012
================================================================================

NYMEX NN May 2012      17,952   17,952   17,952   17,952
ICE LOT Swap May 2012  40,798   40,798   40,798   40,798
================================================================================

NOTE: To sidestep position limits imposed by the Commodity Futures Trading Commission, the fund buys bilateral, over-the-counter swaps that are not subject to exchange limits. These swaps are fully collateralized with investment grade counterparties.

The fund aims to track the price of natural gas delivered at Henry Hub in Erath, Louisiana, the delivery point for the future traded on the New York Mercantile Exchange. The ETF buys the near-month contract, then rolls forward by selling it before expiration and buying the following month.

SOURCE: United States Natural Gas Fund

To contact the reporter on this story: Sarina Yoo in Seoul at kyoo3@bloomberg.net

To contact the editor responsible for this story: Alex Tanzi at atanzi@bloomberg.net


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