United States Commodity Funds heralds gasoil best-efforts units offer

By Toni Weeks

San Diego, Oct. 3 - United States Commodity Funds Trust I registered units of its United States Gasoil Fund in an S-1 filing with the Securities and Exchange Commission.

The Alameda, Calif.-based trust was formed on Sept. 8 and is organized into multiple series, each one a fund, one of which is the United States Gasoil Fund (NYSE Arca: USGO).

The initial 1,000 units in this best-efforts offering are priced at $25.00 apiece. USGO intends to continuously offer baskets consisting of 100,000 units each to authorized purchasers through the marketing agent, ALPS Distributors, Inc.

Merrill Lynch Professional Clearing Corp. is expected to be the initial authorized purchase, the filing noted.

The net assets of USGO will primarily consist of investments in futures contracts for gasoil, crude oil, heating oil, gasoline and other petroleum-based fuels that are traded on the ICE Futures Europe. Other gasoil-related investments will include cash-settled options on futures contracts; forward contracts for gasoil; cleared swap contracts and over-the-counter transactions based on the price of gasoil, crude oil and other petroleum-based fuels; futures contracts and indexes based on any of these.

The investment objective of USGO is for the daily percentage change of its units' net asset value to reflect the changes, also in percentage terms, of the price of gasoil, as measured by the changes in the price of the futures contract on gasoil traded on the ICE Futures Europe that is the near month contract to expire. When the near month contract is within two weeks of expiration, however, it will be measured by the futures contract that is the next month contract to expire, less USGO's expenses.

USGO is not a mutual fund registered under the Investment Company Act of 1940 and will not be regulated under the act.

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