Document and Entity Information
Document and Entity Information - Jun. 30, 2015 - shares | Total |
Document and Entity Information [Abstract] | |
Entity Registrant Name | GreenHaven Coal Fund |
Entity Central Index Key | 1,552,700 |
Trading Symbol | tons |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Smaller Reporting Company |
Entity Common Stock, Shares Outstanding | 25,050 |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2015 |
Amendment Flag | false |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q2 |
Statements of Financial Conditi
Statements of Financial Condition - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | |
Equity in broker trading accounts: | |||
Cash held by broker | [1] | $ 951,753 | $ 1,500 |
Net unrealized appreciation on futures contracts | 42,500 | ||
Prepaid brokerage fees and expenses | 1,683 | ||
Total assets | 995,936 | 1,500 | |
Liabilities and shareholders' equity | |||
Management fee payable to related party | 755 | ||
Total liabilities | 755 | ||
Shareholders' equity | |||
Paid in capital - 25,050 and 50 redeemable shares issued and outstanding as of June 30, 2015 and December 31, 2014, respectively | 1,304,975 | 1,500 | |
Accumulated deficit | (309,794) | ||
Total shareholders' equity | 995,181 | 1,500 | |
Total liabilities and shareholders' equity | $ 995,936 | $ 1,500 | |
Net asset value per share | $ 39.73 | $ 30 | |
[1] | Commenced trading operations on the NYSE Arca on February 20, 2015. |
Statements of Financial Condit3
Statements of Financial Condition (Parentheticals) - shares | Jun. 30, 2015 | Dec. 31, 2014 |
Statement Of Financial Position [Abstract] | ||
Paid in capital redeemable units issued | 25,050 | 50 |
Paid in capital redeemable units outstanding | 25,050 | 50 |
Unaudited Schedule of Investmen
Unaudited Schedule of Investments - Jun. 30, 2015 | USD ($)Contract |
Schedule of Investments [Line Items] | |
Percentage of Net Assets | 4.27% |
Fair Value | $ 42,500 |
Notional Value | $ 968,000 |
Unrealized Appreciation on Futures Contracts | Coal API2 ARA SWP , Settlement Date, December 31 2015 | |
Schedule of Investments [Line Items] | |
Percentage of Net Assets | 1.31% |
Fair Value | $ 13,100 |
Notional Value | $ 302,500 |
Unrealized Appreciation on Futures Contracts | Contract | 5 |
Unrealized Appreciation on Futures Contracts | Coal API2 ARA SWP Contracts, Settlement Date, November 27 2015 | |
Schedule of Investments [Line Items] | |
Percentage of Net Assets | 1.34% |
Fair Value | $ 13,300 |
Notional Value | $ 302,500 |
Unrealized Appreciation on Futures Contracts | Contract | 5 |
Unrealized Appreciation on Futures Contracts | Coal API2 ARA SWP Contracts, Settlement Date, October 30 2015 | |
Schedule of Investments [Line Items] | |
Percentage of Net Assets | 1.62% |
Fair Value | $ 16,100 |
Notional Value | $ 363,000 |
Unrealized Appreciation on Futures Contracts | Contract | 6 |
Unaudited Statement of Income a
Unaudited Statement of Income and Expenses - Jun. 30, 2015 - USD ($) | Total | Total | |
Income | |||
Interest Income | [1] | ||
Expenses | |||
Management fee to related party | [1] | $ 5,169 | $ 11,282 |
Brokerage fees and expenses | [1] | 1,632 | 3,562 |
Total expenses | [1] | 6,801 | 14,844 |
Net Investment Loss | [1] | (6,801) | (14,844) |
Realized Loss on | |||
Futures Contracts | [1] | (169,950) | (337,450) |
Net Realized Loss | [1] | (169,950) | (337,450) |
Net Change in Unrealized Gain on | |||
Futures Contracts | [1] | 142,100 | 42,500 |
Net Change in Unrealized Gain | [1] | 142,100 | 42,500 |
Net Realized and Unrealized Loss on Investments and Futures Contracts | [1] | (27,850) | (294,950) |
Net Loss | [1] | $ (34,651) | $ (309,794) |
[1] | Commenced trading operations on the NYSE Arca on February 20, 2015. |
Unaudited Statement of Changes
Unaudited Statement of Changes in Shareholders' Equity - 6 months ended Jun. 30, 2015 - USD ($) | Units | Paid In Capital | Accumulated Deficit | Total | |
Balance at Dec. 31, 2014 | [1] | $ 1,500 | $ 1,500 | ||
Balance (in units) at Dec. 31, 2014 | [1] | 50 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Capital Contribution on Original Units | [1] | 500 | 500 | ||
Creation of Limited Units | [1] | 6,000,000 | 6,000,000 | ||
Creation of Limited Units (in units) | [1] | 150,000 | |||
Redemption of Limited Units | [1] | (4,697,025) | (4,697,025) | ||
Redemption of Limited Units (in units) | [1] | (125,000) | |||
Net Loss: | |||||
Net Investment loss | [1] | $ (14,844) | (14,844) | ||
Net realized loss on Investments and Futures Contracts | [1] | (337,450) | (337,450) | ||
Net change in unrealized gain on Futures Contracts | [1] | 42,500 | 42,500 | ||
Balance at Jun. 30, 2015 | [1] | $ 1,304,975 | $ (309,794) | $ 995,181 | |
Balance (in units) at Jun. 30, 2015 | [1] | 25,050 | |||
[1] | Commenced trading operations on the NYSE Arca on February 20, 2015. |
Unaudited Statement of Cash Flo
Unaudited Statement of Cash Flows - Jun. 30, 2015 - USD ($) | Total | |
Cash flow from operating activities: | ||
Net Loss | [1] | $ (309,794) |
Adjustments to reconcile net loss to net cash used for operating activities: | ||
Unrealized appreciation on investments and futures contracts | [1] | (42,500) |
Increase in accrued expenses | [1] | 755 |
Increase in prepaid brokerage fees and expenses | [1] | (1,683) |
Net cash used for operating activities | [1] | (353,222) |
Cash flows from financing activities: | ||
Proceeds from creation of Limited Units | [1] | 6,000,000 |
Additional capital contribution | [1] | 500 |
Redemption of Limited Units | [1] | (4,697,025) |
Net cash provided by financing activities | [1] | 1,303,475 |
Net change in cash | [1] | 950,253 |
Cash held by broker at the beginning of the period | [1] | 1,500 |
Cash held by broker at end of period | [1] | $ 951,753 |
[1] | Commenced trading operations on the NYSE Arca on February 20, 2015. |
Organization
Organization | 6 Months Ended |
Jun. 30, 2015 | |
Organization [Abstract] | |
Organization | (1) Organization GreenHaven Coal Fund (the “Fund”), formerly GreenHaven Coal Index Fund, was formed as a Delaware statutory trust on June 18, 2012 and commenced operations on February 20, 2015. The business of the Fund is limited to (i) creating and redeeming common units of beneficial interest in the Fund (“Shares”) in minimum blocks of 25,000 Shares (“Baskets”) on a continuous basis, and (ii) investing proceeds in a portfolio of Rotterdam Coal futures contracts (“Coal Futures”) and U.S. Treasuries. The Fund’s sponsor is GreenHaven Coal Services, LLC, a Georgia limited liability company (the “Sponsor”). The Sponsor serves as the Fund’s commodity pool operator and sponsor under the Fund’s trust agreement, and is responsible for the day-to-day operations of the Fund. Shares of the Fund are offered on NYSE Arca stock exchange under the symbol “TONS”. The Fund’s investment objective is to provide its investors (“Shareholders”) with exposure to daily changes in the price of Coal Futures, before Fund liabilities and expenses. The Fund intends to achieve this objective by investing substantially all of its assets in Coal Futures traded on the Chicago Mercantile Exchange (the “CME”) under the symbol “MTF”. The Fund will invest in Coal Futures on a non-discretionary basis (i.e., without regard to whether the value of the Fund is rising or falling over any particular period). Additional specifications for CME Coal Futures can be found at the CME’s website: www.cmegroup.com The proceeds from the offering of Shares are invested in the Fund (See Note 7 for details of the procedures for creation and redemption of Shares in the Fund). The Sponsor and the Shareholders share in any profits and losses of the Fund in proportion to the percentage interest owned by each. The Sponsor and the Fund retain the services of third party service providers to the extent necessary to operate the ongoing operations of the Fund. (See Note (2)). Unaudited Interim Financial Information The financial statements as of June 30, 2015 included herein are unaudited. In the opinion of the Sponsor, the unaudited financial statements have been prepared on the same basis as an annual financial statement and include all adjustments, which are of the normal recurring nature, necessary for a fair statement of the Fund’s financial position, investments, results of operations and cash flows. Interim results are not necessarily indicative of the results that will be achieved for the year or for any other interim period or for any future year. |
Service Providers and Related P
Service Providers and Related Party Agreements | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Service Providers and Related Party Agreements | (2) Service Providers and Related Party Agreements (a) ”Trustee” – Christiana Trust is the sole trustee for the Fund. The Trustee is a division of Wilmington Saving Fund Society, FSB, and is headquartered in Wilmington, DE. (b) ”Sponsor” – GreenHaven Coal Services, LLC is responsible for the day to day operations of the Fund. The Sponsor charges the Fund a management fee for its services. GreenHaven Coal Services, LLC is a Georgia limited liability company with operations in Atlanta, GA. (c) “Administrator” - The Bank of New York Mellon Corporation has been appointed by the Sponsor as the administrator, custodian and transfer agent of the Fund, and has entered into separate administrative, custodian, transfer agency and service agreements (collectively referred to as the “Administration Agreement”). Pursuant to the Administration Agreement, the Administrator performs or supervises the services necessary for the operation and administration of the Fund (other than making investment decisions), including receiving calculations of the assets minus the liabilities of the Fund (the “Net Asset Value”), accounting and other fund administrative services. As the Fund’s transfer agent, the Administrator processes additions and redemptions of shares. These transactions are processed on Depository Trust Company’s (“DTC”) book entry system. The Administrator retains certain financial books and records, including: Basket creation and redemption books and records, fund accounting records, ledgers with respect to assets, liabilities, capital, income and expenses, the registrar, transfer journals and related details and trading and related documents received from futures commission merchants. The Bank of New York Mellon Corporation is based in New York, New York. (d) “Commodity Broker” — Morgan Stanley & Co. LLC (“MS&Co.”) is the Fund’s Commodity Broker. In its capacity as the Commodity Broker, it executes and clears each of the Fund’s futures transactions and performs certain administrative services for the Fund. MS&Co. is based in New York, New York. (e) “Execution Broker” — TFS Energy Futures LLC (“TEF”) is the Fund’s initial Execution Broker. The Execution Broker will execute certain of the Fund’s over-the-counter transactions and perform certain administrative services for the Fund. TEF is based in New York, New York. (f) “Marketing Agent” — ALPS Distributors, Inc. is the Fund’s Distributor, and assists the Sponsor and the Administrator with certain functions and duties relating to the creation and redemption of Baskets, including receiving and processing orders from the Fund’s Authorized Participants to create and redeem Baskets, coordinating the processing of such orders and related functions and duties. The Marketing Agent retains all marketing materials and Basket creation and redemption books and records at c/o ALPS Distributors, Inc., 1290 Broadway, Suite 1100, Denver, CO 80203; Telephone number (303) 623-2577. Investors may contact the Marketing Agent toll-free in the U.S. at (800) 320-2577. The Fund has entered into a Distribution Services Agreement with the Marketing Agent. The Marketing Agent is affiliated with ALPS Mutual Fund Services, Inc., a Denver-based service provider of administration, fund accounting, transfer agency and shareholder services for mutual funds, closed-end funds and exchange-traded funds. (g) “Authorized Participant” — Authorized Participants may create or redeem Shares of the Fund. Each Authorized Participant must (1) be a registered broker-dealer or other securities market participant such as a bank or other financial institution which is not required to register as a broker-dealer to engage in securities transactions, (2) be a participant in the DTC, and (3) have entered into an agreement (“Participant Agreement”) with the Fund. The Participant Agreement sets forth the procedures for the creation and redemption of Baskets of Shares and for the delivery of cash required for such creations or redemptions. A list of the current Authorized Participants can be obtained from the Administrator. A similar agreement by the Fund sets forth the procedures for the creation and redemption of Baskets of Shares by the Fund. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (3) Summary of Significant Accounting Policies (a) Use of Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the amounts of reported income and expenses. Actual results could differ from those estimates. (b) Recently Issued Accounting Standards No recently promulgated accounting standards are expected to have an effect on the Fund’s financial statements. (c) Cash Held by Broker The Fund defines cash held by broker to be highly liquid investments, with original maturities of three months or less when acquired. MS&Co allows the Fund to apply its Treasury Bill portfolio towards its initial margin requirement for the Fund’s futures positions, hence all cash held by the broker is unrestricted cash. The cash and Treasury Bill positions are held in segregated accounts at MS&Co and are not insured by the Federal Deposit Insurance Corporation. (d) United States Treasury Obligations The Fund records purchases and sales of United States Treasury Obligations on a trade date basis. These holdings are marked to market based on quoted market closing prices. The Fund holds United States Treasury Obligations for deposit with the commodity broker as margin for trading and holding against initial margin of the open futures contracts. Interest income is recognized on an accrual basis when earned. Premiums and discounts are amortized or accreted over the life of the United States Treasury Obligations. (e) Income Taxes The Fund is classified as a partnership, for U.S. federal income tax purposes. Accordingly the Fund is subject to U.S. federal, state, or local income taxes. No provision for federal, state, or local income taxes has been made in the accompanying financial statements, as investors are individually liable for income taxes, if any, on their allocable share of the Fund’s income, gain, loss, deductions and other items. The Fund accounts for uncertainty in income taxes pursuant to the applicable accounting standard, which provides measurement, presentation and disclosure guidance related to uncertain tax positions. The guidance addresses how tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under this topic, the Fund may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. (f) Futures Contracts The Fund purchases and holds commodity futures contracts for investment purposes. These contracts are recorded on a trade date basis and open contracts are valued daily at settlement prices provided by the relevant exchanges. In the Statement of Financial Condition, futures contracts are presented at their published settlement prices on the last business day of the period, in accordance with the fair value accounting standard. Since these contracts are actively traded in markets that are directly observable and which provide readily available price quotes, their market value is deemed to be their fair value under the fair value accounting standard. (See Note 4 — Fair Value Measurements). However, when market closing prices are not available, the Sponsor may value an asset of the Fund pursuant to such other principles as the Sponsor deems fair and equitable so long as such principles are consistent with the fair value accounting standard. Realized gains (losses) and changes in unrealized appreciation (depreciation) on open positions are determined on a specific identification basis and recognized in the consolidated statement of income and expenses in the period in which the contract is closed or the changes occur, respectively. (g) Subsequent Events For purposes of disclosure in the financial statements, the Fund has evaluated events occurring during the period ended, June 30, 2015 and through the date the financial statements were issued. The evaluation did not result in any subsequent events that necessitated disclosures and/or adjustments |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (4) Fair Value Measurements The existing guidance for fair value measurements establishes the authoritative definition for fair value, sets out a framework for measuring fair value and outlines the required disclosures regarding fair value measurements. Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The Fund uses a three-tier fair value hierarchy based upon observable and unobservable inputs as follows: Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 — Unobservable inputs for the asset or liability. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The assets of the Fund are either exchange-traded securities or government securities that are valued using dealer and broker quotations or other inputs that are observable or can be corroborated by observable market data. A summary of the Fund’s assets and liabilities at fair value as of June 30, 2015, classified according to the levels used to value them, is as follows: Assets Quoted Prices in Active Market (Level 1) Other Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Totals Futures Contracts $ 42,500 - - $ 42,500 There were no transfers between Level 1 and Level 2 for the Fund during the period ended June 30, 2015. The Fund did not hold any Level 3 securities during the period ended June 30, 2015. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | (5) Derivative Instruments and Hedging Activities The Fund uses derivative instruments as part of its principal investment strategy to achieve its investment objective. At June 30, 2015, the fair value of derivative instruments was as follows: Derivative Instruments Asset Derivatives Liability Derivatives Net Derivatives Futures Contracts $ 42,500 $ - $ 42,500 The following is a summary of the realized and unrealized gains and losses of the derivative instruments utilized by the Fund for the six months ended June 30, 2015: Derivative Instruments Realized Loss on Derivative Instruments Net Change in Unrealized Loss on Derivative Instruments Futures Contracts $ (337,450 ) $ 42,500 |
Financial Instrument Risk
Financial Instrument Risk | 6 Months Ended |
Jun. 30, 2015 | |
Investments, All Other Investments [Abstract] | |
Financial Instrument Risk | (6) Financial Instrument Risk In the normal course of its business, the Fund may be party to financial instruments with off-balance sheet risk. The term “off-balance sheet risk” refers to an unrecorded potential liability that, even though it does not appear on the statements of financial condition, may result in a future obligation or loss. The financial instruments used by the Fund are commodity futures, whose values are based upon an underlying asset and generally represent future commitments which have a reasonable possibility to be settled in cash or through physical delivery. These instruments are traded on an exchange and are standardized contracts. Market risk is the potential for changes in the value of the financial instruments traded by the Fund due to market changes, including fluctuations in commodity prices. In entering into these contracts, there exists a market risk that such contracts may be significantly influenced by conditions, resulting in such contracts being less valuable. If the markets should move against all of the futures interest positions at the same time, and the Sponsor was unable to offset such positions, the Fund could experience substantial losses. Credit risk is the possibility that a loss may occur due to the failure of an exchange clearinghouse to perform according to the terms of a contract. Credit risk with respect to exchange-traded instruments is reduced to the extent that an exchange or clearing organization acts as counterparty to the transactions. The Fund’s risk of loss in the event of counterparty default is typically limited to the amounts recognized in the statement of assets and liabilities and not represented by the contract or notional amounts of the instruments. The Fund has not utilized, nor does it expect to utilize in the future, special purpose entities to facilitate off-balance sheet financing arrangements and has no loan guarantee arrangements or off-balance sheet arrangements of any kind other than agreements entered into in the normal course of business. |
Share Creations and Redemptions
Share Creations and Redemptions | 6 Months Ended |
Jun. 30, 2015 | |
Share Creations And Redemptions [Abstract] | |
Share Creations and Redemptions | (7) Share Creations and Redemptions As described in the Fund’s Prospectus, the creation and redemption procedures allow only Authorized Participants to create and redeem Shares directly from the Fund. Proceeds from sales of shares of the Fund are invested directly in the Fund. Retail investors seeking to purchase or sell Shares on any day are expected to execute such transactions in the secondary market, on the NYSE-Arca, at the market price per Share, rather than in connection with the creation or redemption of Baskets. (a) Creation of Shares On any business day, an Authorized Participant may place an order with the Marketing Agent to create one or more Baskets. Creation orders are accepted only on a “business day” during which the NYSE Arca is open for regular trading. Purchase orders must be placed no later than 10:00 a.m., New York time, on each business day the NSYE Arca is open for regular trading. The day on which the Marketing Agent receives a valid purchase order is the purchase order date. The total payment required to create each Basket is the Net Asset Value of 25,000 Shares on the purchase order date, but only if the required payment is timely received. To calculate the Net Asset Value, the Administrator will use the CME settlement price (typically determined after 5:00 p.m. New York time) for the Coal Futures traded on the CME. Because orders to purchase Baskets must be placed no later than 10:00 a.m., New York time, but the total payment required to create a Basket typically will not be determined until after 5:00 p.m., New York time, on the date the purchase order is received, Authorized Participants will not know the total amount of the payment required to create a Basket at the time they submit an irrevocable purchase order. The Net Asset Value and the total amount of the payment required to create a Basket could rise or fall substantially between the time an irrevocable purchase order is submitted and the time the amount of the purchase price in respect thereof is determined. An Authorized Participant who places a purchase order is required to transfer to the Administrator the required amount of U.S. Treasuries and/or cash by the end of the next business day following the purchase order date. Upon receipt of the deposit amount, the Administrator will direct DTC to credit the number of Baskets ordered to the Authorized Participant’s DTC account on the next business day following the purchase order date. The Sponsor acting by itself or through the Administrator or Marketing Agent may suspend the right of purchase, or postpone the purchase settlement date, for any period during which the NYSE Arca or other exchange on which the Shares are listed is closed, other than for customary holidays or weekends, or when trading is restricted or suspended. None of the Sponsor, the Marketing Agent or the Administrator will be liable to any person or in any way for any loss or damages that may result from any such suspension or postponement. The Sponsor acting by itself or through the Administrator or the Marketing Agent may reject a purchase order if (1) it determines that the purchase order is not in proper form, (2) circumstances outside the control of the Sponsor make it, for all practical purposes, not feasible to process creations of Baskets, such as during force majeure events, or (3) the Sponsor believes that it or the Fund would be in violation of any securities or commodities rules or regulations regarding position limits or otherwise by accepting a creation. None of the Administrator, the Marketing Agent or the Sponsor will be liable for the rejection of any purchase order. (b) Redemption of Shares The approved procedures by which an Authorized Participant can redeem one or more Baskets mirror in reverse the procedures for the creation of Baskets. On any business day, an Authorized Participant may place an order with the Marketing Agent to redeem one or more Baskets. Redemption orders must be placed no later than 10:00 a.m., New York time, on each business day The day on which the Marketing Agent receives a valid redemption order is the redemption order date. By placing a redemption order, an Authorized Participant agrees to deliver the Baskets to be redeemed through DTC’s book-entry system to the Fund not later than 12:00 p.m., New York time, on the business day immediately following the redemption order date. By placing a redemption order, and prior to receipt of the redemption distribution, an Authorized Participant’s DTC account will be charged the non-refundable transaction fee due for the redemption order. The redemption distribution from the Fund consists of the cash redemption amount equal to the Net Asset Value of the number of Basket(s) requested in the Authorized Participant’s redemption order on the redemption order date. To calculate the NAV, the Administrator will use the CME settlement price (typically determined after 5:00 p.m. New York time) for the Coal Futures traded on the CME. Because orders to redeem Baskets must be placed no later than 10:00 a.m., New York time, but the total amount of redemption proceeds typically will not be determined until after 5:00 p.m., New York time, on the date the redemption order is received, Authorized Participants will not know the total amount of the redemption proceeds at the time they submit an irrevocable redemption order. The Net Asset Value and the total amount of redemption proceeds could rise or fall substantially between the time an irrevocable redemption order is submitted and the time the amount of redemption proceeds in respect thereof is determined. The redemption distribution due from the Fund is delivered to the Authorized Participant at 12:00 p.m., New York time, on the business day immediately following the redemption order date if, by such time, the Fund’s DTC account has been credited with the Baskets to be redeemed. If the Fund’s DTC account has not been credited with all of the Baskets to be redeemed by such time, the redemption distribution is delivered to the extent of whole Baskets received. Any remainder of the redemption distribution is delivered on the next business day to the extent of remaining whole Baskets received if the Administrator receives the fee applicable to the extension of the redemption distribution date which the Sponsor may, from time to time, determine and the remaining Baskets to be redeemed are credited to the Fund’s DTC account by 12:00 p.m., New York time, on such next business day. Any further outstanding amount of the redemption order shall be canceled. The Sponsor may cause the redemption distribution notwithstanding that the Baskets to be redeemed are not credited to the Fund’s DTC account by 12:00 p.m., New York time, on the business day immediately following the redemption order date if the Authorized Participant has collateralized its obligation to deliver the Baskets through DTC’s book entry system on such terms as the Administrator and the Sponsor may from time to time agree upon. The Sponsor acting by itself or through the Administrator or the Marketing Agent may suspend the right of redemption, or postpone the redemption settlement date, (1) for any period during which the NYSE Arca is closed, other than customary weekend or holiday closings, or for any period when trading on the NYSE Arca is suspended, (2) for any period during which an emergency exists as a result of which the redemption distribution is not reasonably practicable, or (3) in the event any price limits imposed by the CME or the CFTC are reached and the Sponsor believes that permitting redemptions under such circumstances may adversely impact investors. None of the Sponsor, the Marketing Agent or the Administrator will be liable to any person or in any way for any loss or damages that may result from any such suspension or postponement. The Sponsor acting by itself or through the Marketing Agent or the Administrator may reject a redemption order if the order is not in proper form as described in the Prospectus or if the fulfillment of the order, in the opinion of the Sponsor’s counsel, might be unlawful. None of the Administrator, the Marketing Agent or the Sponsor will be liable for the rejection of any redemption order. |
Operating Expenses, Organizatio
Operating Expenses, Organizational and Offering Costs | 6 Months Ended |
Jun. 30, 2015 | |
Operating Expenses Organizational and Offering Costs [Abstract] | |
Operating Expenses, Organizational and Offering Costs | (8) Operating Expenses, Organizational and Offering Costs (a) Management Fee The Fund pays the Sponsor a management fee (the “Management Fee”) monthly in arrears, in an amount equal to 0.95% per annum of the Net Asset Value of the Fund for the day to day operation of the Fund. The Fund also pays an amount equal to 0.30% per annum of the Net Asset Value of the Fund for brokerage fees and other expenses. The management fees incurred during the three and six months ended June 30, 2015 were $5,169 and $11,282, respectively. The Management Fees are charged to the Fund and paid to the Sponsor. (b) Organization and Offering Expenses The fees and expenses incurred in connection with the organization of the Fund and the offering of the Shares were paid by the Sponsor. The Sponsor, under certain circumstances, may be reimbursed by the Fund in the future in connection with the payment of the organizational and offering fees and expenses. (c) Brokerage Commissions, Fees, and Routine Operational, Administrative, and Other Ordinary Expenses The Sponsor currently does not expect brokerage commissions and fees as well as routine operational, administrative and other ordinary expenses for which the Funds are responsible, including, but not limited to, the fees and expenses of the Trustee, legal and accounting fees and expenses, tax preparation expenses, filing fees, and printing, mailing and duplication costs, to exceed 0.30% of the Net Asset Value of the Fund in any year, although the actual amount of such fees and expenses in any year may be greater. The Fund’s brokerage commissions and fees and routine operational, administrative and other ordinary expenses are accrued at a rate of 0.30% per annum in the aggregate. Of the amounts so accrued, the Fund first pays brokerage commissions and fees, and secondly from the remainder of the amounts so accrued, reimburses the Sponsor first for the Fund’s ongoing operational, administrative, professional and other ordinary fees and expenses (other than any marketing-related fees and expenses), and second, the Fund’s organizational and offering fees and expenses. Brokerage commissions and fees are charged against the Fund’s assets on a per transaction basis. The brokerage commissions, trading fees and routine operational, administrative, and other ordinary expenses incurred for the three and six months ended June 30, 2015 were $1,632 and $3,562, respectively. (d) Unusual Fees and Expenses The Fund will pay all its unusual fees and expenses, if any. Such unusual fees and expenses, by their nature, are unpredictable in terms of timing and amount. There have been no unusual fees or expenses since the Fund commenced investment operations on February 20, 2015. |
Termination
Termination | 6 Months Ended |
Jun. 30, 2015 | |
Termination [Abstract] | |
Termination | (9) Termination The term of the Fund is perpetual, but the Fund may be dissolved at any time and for any reason, or for no reason at all, by the Sponsor with written notice to the Shareholders. Any termination of the Fund will result in the compulsory redemption of all outstanding Shares. |
Profit and Loss Allocations and
Profit and Loss Allocations and Distributions | 6 Months Ended |
Jun. 30, 2015 | |
Profit and Loss Allocations and Distributions [Abstract] | |
Profit and Loss Allocations and Distributions | (10) Profit and Loss Allocations and Distributions The Sponsor and the Shareholders will share in any profits and losses of the Fund attributable to the Fund in proportion to the percentage interest owned by each. Distributions may be made at the sole discretion of the Sponsor on a pro-rata basis in accordance with the respective capital balances of the Shareholders. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (11) Commitments and Contingencies The Sponsor, either in its own capacity or in its capacity as the Sponsor and on behalf of the Fund, has entered into various service agreements that contain a variety of representations, or provide indemnification provisions related to certain risks service providers undertake in performing services which are in the best interest of the Fund. As of June 30, 2015 no claims had been received by the Fund and it was therefore not possible to estimate the Fund’s potential future exposure under such indemnification provisions. |
Net Asset Value and Financial H
Net Asset Value and Financial Highlights | 6 Months Ended |
Jun. 30, 2015 | |
Net Asset Value and Financial Highlights [Abstract] | |
Net Asset Value and Financial Highlights | (12) Net Asset Value and Financial Highlights The Fund is presenting the following Net Asset Value and financial highlights related to investment performance and operations for a Share outstanding for the three and six-months ended June 30, 2015. The net investment loss and total expense ratios have been annualized. The total return at Net Asset Value is based on the change in Net Asset Value of the Shares during the period and the total return at market value is based on the change in market value of the Shares on the NYSE Arca during the period. An individual investor’s return and ratios may vary based on the timing of capital transactions. Three Months Ended June 30, 2015 Six Months Ended June 30, 2015* Net Asset Value Net asset value per Share, beginning of period $ 38.17 $ 30.00 Capital contribution on original units - 10.00 Net assets value per Share, beginning of period (commencement of trading) 38.17 40.00 Net realized and change in unrealized gain (loss) from investments (iii) 1.68 (0.09 ) Net investment loss (0.12 ) (0.18 ) Net increase (decrease) in net assets from operations 1.56 (0.27 ) Net asset value per Share, end of period $ 39.73 $ 39.73 Market value per Share, beginning of period $ 39.30 $ 40.00 Market value per Share, end of the period 39.00 39.00 Ratio to average net assets (i) Net investment loss (1.29 )% (1.27 )% Total expenses 1.29 % 1.27 % Total Return, at net assets value (ii) 4.09 % (0.68 )% Total Return, at market value (ii) (0.77 )% (2.50 )% * Commenced trading operations on the NYSE Arca on February 20, 2015. (i) Percentages are annualized. (ii) Percentages are not annualized. (iii) The amount of net gain from securities (both realized and unrealized) per share does not accord with the amounts reported in the Statements of Operations due to the timing of purchases and redemptions of Fund shares during the period. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Use of Estimates | (a) Use of Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the amounts of reported income and expenses. Actual results could differ from those estimates. |
Recently Issued Accounting Standards | (b) Recently Issued Accounting Standards No recently promulgated accounting standards are expected to have an effect on the Fund’s financial statements. |
Cash Held by Broker | (c) Cash Held by Broker The Fund defines cash held by broker to be highly liquid investments, with original maturities of three months or less when acquired. MS&Co allows the Fund to apply its Treasury Bill portfolio towards its initial margin requirement for the Fund’s futures positions, hence all cash held by the broker is unrestricted cash. The cash and Treasury Bill positions are held in segregated accounts at MS&Co and are not insured by the Federal Deposit Insurance Corporation. |
United States Treasury Obligations | (d) United States Treasury Obligations The Fund records purchases and sales of United States Treasury Obligations on a trade date basis. These holdings are marked to market based on quoted market closing prices. The Fund holds United States Treasury Obligations for deposit with the commodity broker as margin for trading and holding against initial margin of the open futures contracts. Interest income is recognized on an accrual basis when earned. Premiums and discounts are amortized or accreted over the life of the United States Treasury Obligations. |
Income Taxes | (e) Income Taxes The Fund is classified as a partnership, for U.S. federal income tax purposes. Accordingly the Fund is subject to U.S. federal, state, or local income taxes. No provision for federal, state, or local income taxes has been made in the accompanying financial statements, as investors are individually liable for income taxes, if any, on their allocable share of the Fund’s income, gain, loss, deductions and other items. The Fund accounts for uncertainty in income taxes pursuant to the applicable accounting standard, which provides measurement, presentation and disclosure guidance related to uncertain tax positions. The guidance addresses how tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under this topic, the Fund may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. |
Futures Contracts | (f) Futures Contracts The Fund purchases and holds commodity futures contracts for investment purposes. These contracts are recorded on a trade date basis and open contracts are valued daily at settlement prices provided by the relevant exchanges. In the Statement of Financial Condition, futures contracts are presented at their published settlement prices on the last business day of the period, in accordance with the fair value accounting standard. Since these contracts are actively traded in markets that are directly observable and which provide readily available price quotes, their market value is deemed to be their fair value under the fair value accounting standard. (See Note 4 — Fair Value Measurements). However, when market closing prices are not available, the Sponsor may value an asset of the Fund pursuant to such other principles as the Sponsor deems fair and equitable so long as such principles are consistent with the fair value accounting standard. Realized gains (losses) and changes in unrealized appreciation (depreciation) on open positions are determined on a specific identification basis and recognized in the consolidated statement of income and expenses in the period in which the contract is closed or the changes occur, respectively. |
Subsequent Events | (g) Subsequent Events For purposes of disclosure in the financial statements, the Fund has evaluated events occurring during the period ended, June 30, 2015 and through the date the financial statements were issued. The evaluation did not result in any subsequent events that necessitated disclosures and/or adjustments |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of the summary of the Fund's assets and liabilities at fair value, classified according to the levels used to value them | Assets Quoted Prices in Active Market (Level 1) Other Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Totals Futures Contracts $ 42,500 - - $ 42,500 |
Derivative Instruments and He22
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of the fair value of derivative instruments held | Derivative Instruments Asset Derivatives Liability Derivatives Net Derivatives Futures Contracts $ 42,500 $ - $ 42,500 |
Schedule of a summary of the realized and unrealized gains and losses of the derivative instruments utilized by the fund | Derivative Instruments Realized Loss on Derivative Instruments Net Change in Unrealized Loss on Derivative Instruments Futures Contracts $ (337,450 ) $ 42,500 |
Net Asset Value and Financial23
Net Asset Value and Financial Highlights (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Net Asset Value and Financial Highlights [Abstract] | |
Schedule of net asset value and financial highlights | Three Months Ended June 30, 2015 Six Months Ended June 30, 2015* Net Asset Value Net asset value per Share, beginning of period $ 38.17 $ 30.00 Capital contribution on original units - 10.00 Net assets value per Share, beginning of period (commencement of trading) 38.17 40.00 Net realized and change in unrealized gain (loss) from investments (iii) 1.68 (0.09 ) Net investment loss (0.12 ) (0.18 ) Net increase (decrease) in net assets from operations 1.56 (0.27 ) Net asset value per Share, end of period $ 39.73 $ 39.73 Market value per Share, beginning of period $ 39.30 $ 40.00 Market value per Share, end of the period 39.00 39.00 Ratio to average net assets (i) Net investment loss (1.29 )% (1.27 )% Total expenses 1.29 % 1.27 % Total Return, at net assets value (ii) 4.09 % (0.68 )% Total Return, at market value (ii) (0.77 )% (2.50 )% * Commenced trading operations on the NYSE Arca on February 20, 2015. (i) Percentages are annualized. (ii) Percentages are not annualized. (iii) The amount of net gain from securities (both realized and unrealized) per share does not accord with the amounts reported in the Statements of Operations due to the timing of purchases and redemptions of Fund shares during the period. |
Organization (Detail Textuals)
Organization (Detail Textuals) | 6 Months Ended |
Jun. 30, 2015shares | |
Organization [Abstract] | |
Fund will offer common units of beneficial interest in the Fund (the "Shares") in minimum blocks (in shares) | 25,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Futures Contracts | Jun. 30, 2015USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Asset Derivatives | $ 42,500 |
Quoted Prices in Active Market (Level 1) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Asset Derivatives | $ 42,500 |
Other Significant Observable Inputs (Level 2) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Asset Derivatives | |
Significant Unobservable Inputs (Level 3) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Asset Derivatives |
Derivative Instruments and He26
Derivative Instruments and Hedging Activities (Details) - Futures Contracts | Jun. 30, 2015USD ($) |
Derivative [Line Items] | |
Asset Derivatives | $ 42,500 |
Liability Derivatives | |
Net Derivatives | $ 42,500 |
Derivative Instruments and He27
Derivative Instruments and Hedging Activities (Details 1) - Jun. 30, 2015 - USD ($) | Total | Total | |
Derivative [Line Items] | |||
Realized Loss on Derivative Instruments | [1] | $ (169,950) | $ (337,450) |
Net Change in Unrealized Loss on Derivative Instruments | [1] | $ 142,100 | 42,500 |
Futures Contracts | |||
Derivative [Line Items] | |||
Realized Loss on Derivative Instruments | (337,450) | ||
Net Change in Unrealized Loss on Derivative Instruments | $ 42,500 | ||
[1] | Commenced trading operations on the NYSE Arca on February 20, 2015. |
Share Creations and Redemptio28
Share Creations and Redemptions (Detail Textuals) - 6 months ended Jun. 30, 2015 - shares | Total |
Share Creations And Redemptions [Abstract] | |
Number of shares purchased from fund by authorized participants in specified quantity | 25,000 |
Description of calculations methodology use in NAV at time of purchase | The Baskets will be valued as of the closing time of the NYSE Arca or the last to close of the exchanges on which Coal Futures are traded, whichever is later, on the date that a valid order to create a Basket is accepted by the Fund. |
Description of calculations methodology use in NAV at time of redemption | The cash redemption amount is equal to the Net Asset Value of the number of Basket(s) requested in the Authorized Participant’s redemption order as of the closing time of the NYSE Arca or the last to close of the exchanges on which Coal Futures are traded, whichever is later, on the redemption order date. |
Operating Expenses, Organizat29
Operating Expenses, Organizational and Offering Costs (Detail Textual) - Jun. 30, 2015 - USD ($) | Total | Total | |
Operating Expenses Organizational and Offering Costs [Abstract] | |||
Management fees paid to managing owner as percentage of NAV of fund | 0.95% | ||
Management fee to related party | [1] | $ 5,169 | $ 11,282 |
Percentage of brokerage commissions and fees charge on NAV | 0.30% | ||
Percentage of accrued brokerage commissions and fees | 0.30% | ||
Brokerage commissions, trading fees and routine operational, administrative, and other ordinary expenses | [1] | $ 1,632 | $ 3,562 |
[1] | Commenced trading operations on the NYSE Arca on February 20, 2015. |
Net Asset Value and Financial30
Net Asset Value and Financial Highlights (Details) - Jun. 30, 2015 - $ / shares | Total | Total | ||
Net Asset Value | ||||
Net asset value per Share, beginning of period | $ 38.17 | $ 30 | ||
Capital contribution on original units | [1] | 10 | ||
Net assets value per Share, beginning of period (commencement of trading) | 38.17 | 40 | [1] | |
Net realized and change in unrealized gain (loss) from investments | [2] | 1.68 | (0.09) | [1] |
Net investment loss | (0.12) | (0.18) | [1] | |
Net increase (decrease) in net assets from operations | 1.56 | (0.27) | ||
Net asset value per Share, end of period | [1] | 39.73 | 39.73 | |
Market value per Share, beginning of period | 39.30 | 40 | ||
Market value per Share, end of the period | [1] | $ 39 | $ 39 | |
Ratio to average net assets | ||||
Net investment loss | [3] | (1.29%) | (1.27%) | [1] |
Total expenses | [3] | 1.29% | 1.27% | [1] |
Total Return, at net assets value | [4] | 4.09% | (0.68%) | [1] |
Total Return, at market value | [4] | (0.77%) | (2.50%) | [1] |
[1] | Commenced trading operations on the NYSE Arca on February 20, 2015. | |||
[2] | The amount of net gain from securities (both realized and unrealized) per share does not accord with the amounts reported in the Statements of Operations due to the timing of purchases and redemptions of Fund shares during the period. | |||
[3] | Percentages are annualized. | |||
[4] | Percentages are not annualized. |