Natural Gas Fund Launched on Amex

April 19, 2007

SAN DIEGO (ETFguide.com) - Just in time for spring, the number of narrowly focused exchange-traded securities continues to blossom. 

This week California-based Victoria Bay Asset Management introduced the United States Natural Gas Fund, LP (Amex: UNG). Units of the partnership, which is organized as a commodity pool, will trade on the American Stock Exchange (Amex).

The objective of this newly listed partnership will be to mirror the price of Louisiana natural gas in percentage terms as measured by futures contracts on natural gas.

According to Victoria Bay's description, "It is not the intent of UNG to be operated in a fashion such that its NAV will equal, in dollar terms, the dollar price of spot natural gas or any particular futures contract based on natural gas."

The partnership, although not registered as a traditional exchange-traded fund (ETF), will trade in a similar fashion. 

Commenting on investment strategy, John Hyland, CFA, Portfolio Manager and Director of Portfolio Research stated, "UNG intends to invest primarily in those futures contracts that are in the two months closest to expiration because we feel those contracts will permit the fund to best achieve its investment objective."

The Natural Gas Fund doesn't plan to use leverage in the portfolio to achieve its investment goals.

"The Amex is pleased to be partnering with Victoria Bay Asset Management again to bring another futures-based product to the marketplace," said Scott Ebner, Senior Vice President of Amex's ETF Marketplace.