OAKLAND, Calif., Nov. 18, 2016 /PRNewswire/ -- USCF Advisers and SummerHaven Index Management LLC (SummerHaven), a Stamford, CT based commodity index provider, will collaborate to develop a mutual fund based on the SummerHaven Dynamic Commodity Index (SDCI). The mutual fund will initially offer two share classes (A shares and I shares). The fund will seek to track the performance of the SDCI.
"USCF and SummerHaven broke new ground in 2010 with the launch of USCI, the United States Commodity Index Fund," said John Love, President and CEO of USCF. "We wanted to work together to offer the same type of strategy to investors who prefer mutual funds and to those seeking a quality commodity product without a K-1." The mutual fund will invest in commodities via a Cayman Islands subsidiary. SummerHaven Index Management LLC (SummerHaven), a Stamford, CT based commodity index provider and commodity trading adviser, will manage the commodity investments. USCF Advisor, LLC will serve as the investment advisor of the mutual fund. "We are excited to build on our long-term collaboration with USCF and to leverage the great success of USCI," said Ashraf Rizvi, Partner of SummerHaven. "This new mutual fund utilizes the established SummerHaven Dynamic Commodity Index (SDCI) as its benchmark, providing an attractive commodity mutual fund product with no K-1 for investors." SummerHaven and USCF have collaborated on three exchange traded products: the United States Copper Index Fund (Ticker: CPER), the United States Agriculture Index Fund (Ticker: USAG) and the United States Commodity Index Fund (USCI), which also uses SDCI as a benchmark. The SDCI is a total return commodity sector index designed to broadly represent major commodities. The SDCI reflects the performance of a fully collateralized portfolio of 14 commodity futures, selected each month from a universe of 27 eligible contracts. Unlike many commodity products, the index rebalances to equal weights on a monthly basis and features a diversification rule that allows it to maintain broad exposure to all commodity sectors.