United States Natural Gas Fund LP (NYSEARCA:UNG) will resume issuing new shares starting Sept. 28, the fund said in a filing with the Securities and Exchange Commission.
UNG shares are trading at a 15% premium to the value of the underlying natural gas contracts, as investor interest in the fund has remained strong since the share issuances stopped. That premium is now in jeopardy.
"It is possible that the resumption of creation activity, even on a limited basis, could reduce or remove any premium," the fund said in the filing. " Investors are cautioned that paying a premium...for UNG units can lead to additional losses for the investor in the event that the investor sells such units at a time when the premium is no longer present in the market price."
Source Dow Jones