Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2016shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | WisdomTree 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 | Mar. 31, 2016 |
Amendment Flag | false |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q1 |
Statements of Financial Conditi
Statements of Financial Condition (unaudited) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Cash | $ 645,172 | |
Cash held by broker for futures contracts | 149,111 | $ 786,836 |
Unrealized appreciation on futures contracts | 23,400 | |
Prepaid brokerage fees and expenses | 724 | 979 |
Total Assets | 818,407 | 787,815 |
Liabilities and shareholders' equity: | ||
Unrealized depreciation on futures contracts | 1,550 | |
Management fee payable to related party | 644 | 635 |
Total Liabilities | 644 | 2,185 |
Shareholders' equity: | ||
Paid in capital - 25,050 and 25,050 redeemable shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively | 1,304,975 | 1,304,975 |
Accumulated deficit | (487,212) | (519,345) |
Total shareholders' equity | 817,763 | 785,630 |
Total liabilities and shareholders' equity | $ 818,407 | $ 787,815 |
Net asset value per share | $ 32.65 | $ 31.36 |
Statements of Financial Condit3
Statements of Financial Condition (unaudited) (Parentheticals) - shares | Mar. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Paid in capital redeemable shares issued | 25,050 | 25,050 |
Paid in capital redeemable shares outstanding | 25,050 | 25,050 |
Unaudited Schedule of Investmen
Unaudited Schedule of Investments - Futures Contracts | Mar. 31, 2016USD ($)Contract | Dec. 31, 2015USD ($)Contract |
Schedule of Investments [Line Items] | ||
Percentage of Net Assets | 2.85% | (0.20%) |
Unrealized Appreciation/(Depreciation) | $ 23,400 | $ (1,550) |
Notional Value | $ 800,100 | $ 744,600 |
CME Rotterdam Coal Futures expiration date 7/29/16 | ||
Schedule of Investments [Line Items] | ||
Unrealized Depreciation on Futures Contracts | Contract | 6 | |
Percentage of Net Assets | 0.95% | |
Unrealized Appreciation/(Depreciation) | $ 7,800 | |
Notional Value | $ 266,700 | |
CME Rotterdam Coal Futures expiration date 8/26/16 | ||
Schedule of Investments [Line Items] | ||
Unrealized Depreciation on Futures Contracts | Contract | 6 | |
Percentage of Net Assets | 0.95% | |
Unrealized Appreciation/(Depreciation) | $ 7,800 | |
Notional Value | $ 266,700 | |
CME Rotterdam Coal Futures expiration date 9/30/16 | ||
Schedule of Investments [Line Items] | ||
Unrealized Depreciation on Futures Contracts | Contract | 6 | |
Percentage of Net Assets | 0.95% | |
Unrealized Appreciation/(Depreciation) | $ 7,800 | |
Notional Value | $ 266,700 | |
CME Rotterdam Coal Futures expiration date 4/29/16 | ||
Schedule of Investments [Line Items] | ||
Unrealized Depreciation on Futures Contracts | Contract | 6 | |
Percentage of Net Assets | (0.09%) | |
Unrealized Appreciation/(Depreciation) | $ (700) | |
Notional Value | $ 262,800 | |
CME Rotterdam Coal Futures expiration date 5/27/16 | ||
Schedule of Investments [Line Items] | ||
Unrealized Depreciation on Futures Contracts | Contract | 6 | |
Percentage of Net Assets | (0.05%) | |
Unrealized Appreciation/(Depreciation) | $ (400) | |
Notional Value | $ 262,800 | |
CME Rotterdam Coal Futures expiration date 6/24/16 | ||
Schedule of Investments [Line Items] | ||
Unrealized Depreciation on Futures Contracts | Contract | 5 | |
Percentage of Net Assets | (0.06%) | |
Unrealized Appreciation/(Depreciation) | $ (450) | |
Notional Value | $ 219,000 |
Unaudited Statements of Income
Unaudited Statements of Income and Expenses - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | [1] | |
Income: | |||
Interest income | |||
Expenses: | |||
Management fee to related party | $ 1,837 | $ 6,113 | |
Brokerage fees and expenses | 580 | 1,930 | |
Total expenses | 2,417 | 8,043 | |
Net investment loss | (2,417) | (8,043) | |
Net Realized Gain (Loss) from: | |||
Futures Contracts | 9,600 | (167,500) | |
Net Realized Gain (Loss) | 9,600 | (167,500) | |
Net Change in Unrealized Gain (Loss) from: | |||
Futures Contracts | 24,950 | (99,600) | |
Net Change in Unrealized Gain (Loss) | 24,950 | (99,600) | |
Net Realized and Unrealized Gain (Loss) on Futures Contracts | 34,550 | (267,100) | |
Net Gain (Loss) | $ 32,133 | $ (275,143) | |
[1] | Commenced trading operations on the NYSE Arca on February 20, 2015. |
Unaudited Statement of Changes
Unaudited Statement of Changes in Shareholders' Equity - 3 months ended Mar. 31, 2016 - USD ($) | Additional Paid-in Capital | Accumulated Deficit | Total |
Balance at Jan. 01, 2016 | $ 1,304,975 | $ (519,345) | $ 785,630 |
Balance (in units) at Jan. 01, 2016 | 25,050 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Creation of limited units | |||
Creation of limited units (in units) | |||
Redemption of limited units | |||
Redemption of limited units (in units) | |||
Net loss: (loss) | |||
Net investment loss | $ (2,417) | $ (2,417) | |
Net realized loss on investments and futures contracts | 9,600 | 9,600 | |
Net Change in Unrealized Gain (Loss) from Futures Contracts | 24,950 | 24,950 | |
Net Gain (loss) | 32,133 | 32,133 | |
Balance at Mar. 31, 2016 | $ 1,304,975 | $ (487,212) | $ 817,763 |
Balance (in units) at Mar. 31, 2016 | 25,050 |
Unaudited Statements of Cash Fl
Unaudited Statements of Cash Flows - USD ($) | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | [1] | ||
Cash flows from operating activities | ||||
Net Gain (Loss) | $ 32,133 | $ (275,143) | ||
(Increase)/Decrease in assets: | ||||
Unrealized appreciation on futures contracts | (23,400) | |||
Prepaid brokerage fees and expenses | 255 | (2,038) | ||
Increase/(Decrease) in liabilities: | ||||
Unrealized depreciation on futures contracts | (1,550) | 99,600 | ||
Management fee payable to related party | 9 | 4,705 | ||
Net cash provided by (used for) operating activities | $ 7,447 | (172,876) | ||
Cash flows from financing activities | ||||
Proceeds from creation of Limited Units | 6,000,000 | |||
Additional capital contribution | 500 | |||
Net cash provided by financing activities | 6,000,500 | |||
Net increase in cash | $ 7,447 | 5,827,624 | ||
Cash at beginning of period | [2] | 786,836 | 1,500 | |
Cash at end of period | [2] | $ 794,283 | $ 5,829,124 | |
[1] | Commenced trading operations on the NYSE Arca on February 20, 2015. | |||
[2] | Includes cash held by the broker for futures contracts. |
Organization
Organization | 3 Months Ended |
Mar. 31, 2016 | |
Organization [Abstract] | |
Organization | (1) Organization WisdomTree Coal Fund (the “Fund”), formerly GreenHaven Coal Fund, was formed as a Delaware statutory trust on September 18, 2012 and commenced operations on February 19, 2015. WisdomTree Coal Services, LLC (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 representing units of fractional undivided beneficial interest in and ownership of the Fund are listed on the NYSE Arca under the symbol “TONS”. Effective January 1, 2016, in accordance with the terms of a Unit Purchase Agreement dated October 29, 2015, GreenHaven Group LLC sold 100% of the issued and outstanding membership interest in the Sponsor to WisdomTree Investments Inc. Following the sale, the name of the Fund was changed from “GreenHaven Coal Fund” to “WisdomTree Coal Fund” and the name of the Sponsor was changed from “GreenHaven Coal Services, LLC” to “WisdomTree Coal Services, LLC.” As of January 1, 2016, the Fund’s Sub-Advisor and commodity trading advisor is GreenHaven Advisors LLC. The Fund’s investment objective is to provide its investors with exposure to daily changes in the price of coal futures contracts, before Fund liabilities and expenses. The Fund pursues this objective by investing substantially all of its assets in Rotterdam coal futures contracts (“Coal Futures”) traded on the Chicago Mercantile Exchange (“CME”). 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). The Fund will also invest a portion of its net assets in U.S. Treasuries and other high quality short-term fixed income securities for deposit with the Fund’s commodity brokers as margin. Additional specifications for CME Coal Futures can be found at the CME’s website. The Fund continuously offers and redeems baskets of 25,000 Shares (“Baskets”) to authorized participants (“Authorized Participants”) at a price based on the Fund’s net asset value (“NAV”) per Share. Authorized Participants, in turn, may offer such Shares to the public at a per Share offering price that varies, depending on, among other factors, the trading price of the Shares, the NAV, and the supply of and demand for the Shares at the time of the offer. 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)). In accordance with Accounting Standard Update (“ASU“) 2013-08, Financial Services-Investment Companies, the Fund qualifies as an investment company and is applying the accounting and reporting guidance for investment companies. Unaudited Interim Financial Information The financial statements as of March 31, 2016 and for the three months or period ended March 31, 2016 and 2015 included herein are unaudited. In the opinion of the Sponsor, the unaudited financial statements have been prepared on the same basis as the annual financial statements 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. Past performance of the Fund is not necessarily indicative of future performance. |
Service Providers and Related P
Service Providers and Related Party Agreements | 3 Months Ended |
Mar. 31, 2016 | |
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, Delaware. (b) “Sponsor” – WisdomTree Coal Services, LLC (f/k/a GreenHaven Coal Services, LLC) is the commodity pool operator and Sponsor of the Fund, responsible for the day to day operations of the Fund. The Sponsor charges the Fund a management fee for its services. The Sponsor is a Georgia limited liability company with operations in New York, New York. (c) “The Administrator” — State Street Bank and Trust Company is the Fund’s Administrator. The Administrator performs or supervises the services necessary for the operation and administration of the Fund (other than making investment decisions) in accordance with various services agreements entered into with the Fund. These services include calculating the daily NAV of the Fund, accounting and other Fund administrative services. As the Fund’s transfer agent, the Administrator processes creations 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. State Street Bank and Trust Company has an office in Boston, Massachusetts. (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 Execution Broker. The Execution Broker executes certain of the Fund’s over-the-counter transactions and performs certain administrative services for the Fund. TEF is based in New York, New York. (f) “Distributor” — Foreside Fund Services LLC (“FFS”) is the Fund’s Distributor. The Fund’s Distributor 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. FFS has an office in Portland, Maine. (g) “Authorized Participant” — Authorized Participants are the only persons that may place orders to create or redeem Baskets. 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 a Participant Agreement with the Fund. The Participant Agreement sets forth the procedures for the creation and redemption of Baskets and for the delivery of cash required for such creations or redemptions. A list of the current Authorized Participants can be obtained from the Sponsor. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
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 Cash held in segregated accounts at MS&Co. is for the purpose of meeting the initial and subsequent variation margin requirements on open futures contracts held by the Fund. The cash held by MS&Co. is restricted cash and is not insured by the Federal Deposit Insurance Corporation. (d) U.S. Obligations The Fund records purchases and sales of U.S. Treasury Obligations on a trade date basis. These holdings are marked to market based on quotations from broker-dealers or independent service providers. The Fund may hold U.S. 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 U.S. Treasury Obligations. As of March 31, 2016 and December 31, 2015, there were no U.S. Treasury Obligations held by the Fund. (e) Income Taxes The Fund is classified as a partnership, for U.S. federal income tax purposes. Accordingly, the Fund is not 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 Coal Futures 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, Coal Futures 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 provided 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 Statements 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 between the period ended March 31, 2016 and when the financial statements were issued. During that period, no Shares were created or redeemed. The evaluation did not result in any subsequent events that necessitated disclosures and/or adjustments. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
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 that are valued at the official closing price on the exchange where they are principally traded or U.S. 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 March 31, 2016, classified according to the levels used to value them, is as follows: Assets Quoted Other Significant Totals Unrealized appreciation on futures contracts $ 23,400 $ — $ — $ 23,400 There were no transfers between Level 1 and Level 2 for the Fund during the three months ended March 31, 2016. The Fund did not hold any Level 3 securities during the three months ended March 31, 2016. A summary of the Fund’s assets and liabilities at fair value as of December 31, 2015, classified according to the levels used to value them, is as follows: Liabilities Quoted Other Significant Totals Unrealized depreciation on futures contracts $ (1,550 ) $ — $ — $ (1,550 ) There were no transfers between Level 1 and Level 2 for the Fund during the year ended December 31, 2015. The Fund did not hold any Level 3 securities during the year ended December 31, 2015. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2016 | |
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. As of March 31, 2016, the Fund was invested in commodity futures contracts. For the three months ended March 31, 2016 and year ended December 31, 2015, the volume of derivative activity (based on average month-end notional amounts) were $752,238 and $1,693,021, respectively. At March 31, 2016, the fair value of derivative instruments was as follows: Derivative Asset Liability Commodity Futures Contracts $ 23,400 $ — (i) Values are disclosed on the March 31, 2016 Statements of Financial Condition under unrealized appreciation on futures contracts. The following is a summary of the realized and unrealized gains and losses of the derivative instruments utilized by the Fund for the three months ended March 31, 2016: Derivative Statements of Realized Gain Net Change in Commodity Futures Contracts Net realized gain (loss) from futures contracts $ 9,600 Net change in unrealized gain (loss) from futures contracts $ 24,950 At December 31, 2015, the fair value of derivative instruments was as follows: Derivative Asset Liability Commodity Futures Contracts $ — $ 1,550 (ii) Values are disclosed on the December 31, 2015 Statements of Financial Condition under unrealized depreciation on futures contracts. The following is a summary of the realized and unrealized gains and losses of the derivative instruments utilized by the Fund for the period ended March 31, 2015. Derivative Statements of Realized Loss Net Change in Commodity Futures Contracts Net realized gain (loss) from futures contracts $ (167,500 ) Net change in unrealized gain (loss) from futures contracts $ (99,600 ) |
Financial Instrument Risk
Financial Instrument Risk | 3 Months Ended |
Mar. 31, 2016 | |
Investments, All Other Investments [Abstract] | |
Financial Instrument Risk | (6) Financial Instrument Risk Market Risk Trading in Coal Futures will involve the Fund entering into contractual commitments to purchase or sell specific amounts of instruments at a specified date in the future. The gross or face amount of the contracts is expected to significantly exceed the future cash requirements of the Fund, however, the Fund intends to close out any open positions prior to the contractual expiration date. As a result, the Fund’s market risk is the risk of loss arising from the decline in value of the contracts, not from the need to make delivery under the contracts. The Fund considers the “fair value” of derivative instruments to be the unrealized gain or loss on the contracts. The market risk associated with the commitment by the Fund to purchase a specific contract will be limited to the aggregate face amount of the contacts held. The exposure of the Fund to market risk will depend on a number of factors including the markets for the specific instrument, the volatility of interest rates and foreign exchange rates, the liquidity of the instrument-specific interest market and the relationships among the contracts held by the Fund. 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 When the Fund enters into Coal Futures, it will be exposed to the credit risk that the counterparty will not be able to meet its obligations. As the Fund initially plans to trade its investments primarily on CME ClearPort, the Fund executes trades of Block Traded Coal Futures via CME ClearPort by placing purchase orders with an Execution Broker. The Execution Broker identifies a selling counterparty, and simultaneously with completion of the transaction, the Block Traded Coal Futures are entered into CME ClearPort by the Execution Broker, thereby completing the transaction and creating a cleared futures transaction. If the CME does not accept the transaction for any reason, the transaction is considered null and void and of no legal effect. As a result, all of the Fund’s positions in Coal Futures, whether traded on the CME ClearPort Block Trade entry systems (the current practice) or on CME Globex (which may occur in the future), will be cleared by CME clearing member firms, thereby reducing counterparty risk. There can be no assurance that any counterparty, clearinghouse, or their financial backers will satisfy their obligations to the Fund. 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 Financial Condition and not represented by the contract or notional amounts of the instruments. The Commodity Exchange Act (“CEA”) requires all Futures Commission Merchants (“FCMs”), such as the Fund’s current Commodity Broker, to meet and maintain specified fitness and financial requirements, to segregate customer funds from proprietary funds and account separately for all customers’ funds and positions, and to maintain specified books and records open to inspection by the staff of the CFTC. The CFTC has similar authority over introducing brokers, or persons who solicit or accept orders for commodity interest trades but who do not accept margin deposits for the execution of trades. The CEA authorizes the CFTC to regulate trading by FCMs and by their officers and directors, permits the CFTC to require action by exchanges in the event of market emergencies, and establishes an administrative procedure under which customers may institute complaints for damages arising from alleged violations of the CEA. The CEA also gives the states powers to enforce its provisions and the regulations of the CFTC. The CFTC has adopted regulations that require enhanced customer protections, risk management programs, internal monitoring and controls, capital and liquidity standards, customer disclosures and auditing and examination programs for FCMs. The rules are intended to afford greater assurances to market participants that customer segregated funds and secured amounts are protected, customers are provided with appropriate notice of the risks of futures trading and of the FCMs with which they may choose to do business, FCMs are monitoring and managing risks in a robust manner, the capital and liquidity of FCMs are strengthened to safeguard the continued operations and the auditing and examination programs of the CFTC and the self-regulatory organizations are monitoring the activities of FCMs in a thorough manner. Off-Balance Sheet Risk The Fund does not use and is not expected to use special purpose entities to facilitate off-balance sheet financing arrangements. The Fund does not have and is not expected to have loan guarantee arrangements or other off-balance sheet arrangements of any kind other than agreements entered into in the normal course of business, which may include indemnification provisions related to certain risks service providers undertake in performing services that are in the interest of the Fund. While the Fund’s exposure under such indemnification provisions cannot be estimated, these general business indemnifications are not expected to have a material impact on the Fund’s financial position. 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 coal 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. |
Share Creations and Redemptions
Share Creations and Redemptions | 3 Months Ended |
Mar. 31, 2016 | |
Share Creations And Redemptions [Abstract] | |
Share Creations and Redemptions | (7) Share Creations and Redemptions As described in the Item 1 of this quarterly report, 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 General. Determination of Required Payment. Delivery of Required Payment. Suspension of Purchase Orders. Rejection of Purchase Orders. (b) Redemption of Shares General. 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. Determination of Redemption Proceeds. Delivery of Redemption Proceeds. Suspension of Redemption Orders. Rejection of Redemption Orders. |
Operating Expenses
Operating Expenses | 3 Months Ended |
Mar. 31, 2016 | |
Operating Expenses Organizational and Offering Costs [Abstract] | |
Operating Expenses, Organizational and Offering Costs | (8) Operating Expenses (a) Sponsor Fee The Fund pays the Sponsor a fee equal to 0.95% per annum of the Fund’s average daily NAV. For the three months or period ended March 31, 2016 and 2015, the Sponsor’s fee was $1,837 and $6,113, respectively. In addition, the Fund will pay its brokerage fees and expenses, and certain other operational fees, as described below. (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 Fund is 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 for first, 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 months or period ended March 31, 2016 and 2015 were $580 and $1,930, respectively. |
Termination
Termination | 3 Months Ended |
Mar. 31, 2016 | |
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 | 3 Months Ended |
Mar. 31, 2016 | |
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 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, but the Fund is under no obligation to make periodic distributions to Shareholders. The Fund made no distributions to its Shareholders during the three months ended March 31, 2016. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016, 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 | 3 Months Ended |
Mar. 31, 2016 | |
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 NAV and financial highlights related to investment performance and operations for a Share outstanding for the three months or period ended March 31, 2016 and 2015. The total return at NAV is based on the change in NAV 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 Period Ended March 31, 2016 March 31, 2015* Net Asset Value Net asset value per Share, beginning of period $ 31.36 $ 30.00 Capital contribution on original units — 10.00 Net asset value per Share, beginning of period 31.36 40.00 Net realized and change in unrealized gain (loss) 1.39 (1.78 ) Net investment loss (1) (0.10 ) (0.05 ) Net increase (decrease) in net assets from operations 1.29 (1.83 ) Net asset value per Share, end of period $ 32.65 $ 38.17 Market value per Share, beginning of period $ 30.85 $ 40.00 Market value per Share, end of period $ 32.21 $ 39.30 Ratio to average Net Assets (2) Net investment loss (1.25 )% (1.28 )% Total expenses 1.25 % 1.28 % Total Return, at net asset value (3) 4.11 % (4.58 )% Total Return, at market value (3,4) 4.44 % (1.75 )% * Commenced trading on the NYSE Arca on February 20, 2015. (1) Based on average shares outstanding. (2) Annualized. (3) Total return calculated for a period of less than one year is not annualized. (4) In computing the market price total returns, the inputs for dates on or after January 1, 2016 reflect the midpoint of the bid/ask spread as of the close of trading on the exchange where Fund shares are listed, and the inputs for dates prior to January 1, 2016 reflect the last price as of the close of trading on the exchange where Fund shares are listed. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
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 Cash held in segregated accounts at MS&Co. is for the purpose of meeting the initial and subsequent variation margin requirements on open futures contracts held by the Fund. The cash held by MS&Co. is restricted cash and is not insured by the Federal Deposit Insurance Corporation. |
U.S. Obligations | (d) U.S. Obligations The Fund records purchases and sales of U.S. Treasury Obligations on a trade date basis. These holdings are marked to market based on quotations from broker-dealers or independent service providers. The Fund may hold U.S. 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 U.S. Treasury Obligations. As of March 31, 2016 and December 31, 2015, there were no U.S. Treasury Obligations held by the Fund. |
Income Taxes | (e) Income Taxes The Fund is classified as a partnership, for U.S. federal income tax purposes. Accordingly, the Fund is not 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 Coal Futures 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, Coal Futures 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 provided 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 Statements 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 between the period ended March 31, 2016 and when the financial statements were issued. During that period, no Shares were created or redeemed. The evaluation did not result in any subsequent events that necessitated disclosures and/or adjustments. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 Other Significant Totals Unrealized appreciation on futures contracts $ 23,400 $ — $ — $ 23,400 Liabilities Quoted Other Significant Totals Unrealized depreciation on futures contracts $ (1,550 ) $ — $ — $ (1,550 ) |
Derivative Instruments and He22
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of the fair value of derivative instruments | Derivative Asset Liability Commodity Futures Contracts $ 23,400 $ — (i) Values are disclosed on the March 31, 2016 Statements of Financial Condition under unrealized appreciation on futures contracts. Derivative Asset Liability Commodity Futures Contracts $ — $ 1,550 (ii) Values are disclosed on the December 31, 2015 Statements of Financial Condition under unrealized depreciation on futures contracts. |
Schedule of a summary of the realized and unrealized gains and losses of the derivative instruments utilized by the fund | Derivative Statements of Realized Gain Net Change in Commodity Futures Contracts Net realized gain (loss) from futures contracts $ 9,600 Net change in unrealized gain (loss) from futures contracts $ 24,950 Derivative Statements of Realized Loss Net Change in Commodity Futures Contracts Net realized gain (loss) from futures contracts $ (167,500 ) Net change in unrealized gain (loss) from futures contracts $ (99,600 ) |
NAV and Financial Highlights (T
NAV and Financial Highlights (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Net Asset Value and Financial Highlights [Abstract] | |
Schedule of net asset value and financial highlights | Three Months Period Ended March 31, 2016 March 31, 2015* Net Asset Value Net asset value per Share, beginning of period $ 31.36 $ 30.00 Capital contribution on original units — 10.00 Net asset value per Share, beginning of period 31.36 40.00 Net realized and change in unrealized gain (loss) 1.39 (1.78 ) Net investment loss (1) (0.10 ) (0.05 ) Net increase (decrease) in net assets from operations 1.29 (1.83 ) Net asset value per Share, end of period $ 32.65 $ 38.17 Market value per Share, beginning of period $ 30.85 $ 40.00 Market value per Share, end of period $ 32.21 $ 39.30 Ratio to average Net Assets (2) Net investment loss (1.25 )% (1.28 )% Total expenses 1.25 % 1.28 % Total Return, at net asset value (3) 4.11 % (4.58 )% Total Return, at market value (3,4) 4.44 % (1.75 )% * Commenced trading on the NYSE Arca on February 20, 2015. (1) Based on average shares outstanding. (2) Annualized. (3) Total return calculated for a period of less than one year is not annualized. (4) In computing the market price total returns, the inputs for dates on or after January 1, 2016 reflect the midpoint of the bid/ask spread as of the close of trading on the exchange where Fund shares are listed, and the inputs for dates prior to January 1, 2016 reflect the last price as of the close of trading on the exchange where Fund shares are listed. |
Organization (Detail Textuals)
Organization (Detail Textuals) - shares | 3 Months Ended | |
Mar. 31, 2016 | Jan. 01, 2016 | |
Organization [Abstract] | ||
Membership sold out to WisdomTree Investments Inc | 100.00% | |
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) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unrealized appreciation on futures contracts | $ 23,400 | |
Unrealized depreciation on futures contracts | $ 1,550 | |
Commodity Futures Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unrealized appreciation on futures contracts | 23,400 | |
Unrealized depreciation on futures contracts | (1,550) | |
Quoted Prices in Active Market (Level 1) | Commodity Futures Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unrealized appreciation on futures contracts | $ 23,400 | |
Unrealized depreciation on futures contracts | $ (1,550) | |
Other Significant Observable Inputs (Level 2) | Commodity Futures Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unrealized appreciation on futures contracts | ||
Unrealized depreciation on futures contracts | ||
Significant Unobservable Inputs (Level 3) | Commodity Futures Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unrealized appreciation on futures contracts | ||
Unrealized depreciation on futures contracts |
Derivative Instruments and He26
Derivative Instruments and Hedging Activities (Details) - Commodity Futures Contracts - USD ($) | Mar. 31, 2016 | [1] | Dec. 31, 2015 | [2] |
Derivative [Line Items] | ||||
Asset Derivatives | $ 23,400 | |||
Liability Derivatives | $ 1,550 | |||
[1] | Values are disclosed on the March 31, 2016 Statements of Financial Condition under unrealized appreciation on futures contracts. | |||
[2] | Values are disclosed on the December 31, 2015 Statements of Financial Condition under unrealized depreciation on futures contracts. |
Derivative Instruments and He27
Derivative Instruments and Hedging Activities (Details 1) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Derivative [Line Items] | |||
Net realized gain (loss) from futures contracts | $ 9,600 | $ (167,500) | [1] |
Net change in unrealized gain (loss) from futures contracts | 24,950 | (99,600) | [1] |
Commodity Futures Contracts | |||
Derivative [Line Items] | |||
Net realized gain (loss) from futures contracts | 9,600 | (167,500) | |
Net change in unrealized gain (loss) from futures contracts | $ 24,950 | $ (99,600) | |
[1] | Commenced trading operations on the NYSE Arca on February 20, 2015. |
Derivative Instruments and He28
Derivative Instruments and Hedging Activities (Detail Textual) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Average month end notional amounts of open coal futures | $ 752,238 | $ 1,693,021 |
Share Creations and Redemptio29
Share Creations and Redemptions (Detail Textual) | 3 Months Ended |
Mar. 31, 2016shares | |
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 | To calculate the Net Asset Value, the Administrator will use the CME settlement price for the Coal Futures traded on the CME. 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. |
Description of calculations methodology use in NAV at time of redemption | 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 for the Coal Futures traded on the CME. |
Operating Expenses (Detail Text
Operating Expenses (Detail Textual) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | [1] | |
Operating Expenses Organizational and Offering Costs [Abstract] | |||
Management fees paid to managing owner as percentage of NAV of fund | 0.95% | ||
Percentage of brokerage commissions and fees charge on NAV | 0.30% | ||
Percentage of accrued brokerage commissions and fees | 0.30% | ||
Management fee to related party | $ 1,837 | $ 6,113 | |
Brokerage fees and expenses | $ 580 | $ 1,930 | |
[1] | Commenced trading operations on the NYSE Arca on February 20, 2015. |
Net Asset Value and Financial31
Net Asset Value and Financial Highlights (Details) - $ / shares | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | [1] | ||
Net Asset Value | ||||
Net asset value per Share, beginning of period | $ 31.36 | $ 30 | [2] | |
Capital contribution on original units | 10 | [2] | ||
Net assets value per Share, beginning of period | $ 31.36 | 40 | [2] | |
Net realized and change in unrealized gain (loss) from investments | 1.39 | (1.78) | [2] | |
Net investment loss | [3] | (0.10) | (0.05) | [2] |
Net increase (decrease) in net assets from operations | 1.29 | (1.83) | [2] | |
Net asset value per Share, end of period | 32.65 | 38.17 | [2] | |
Market value per Share, beginning of period | 30.85 | 40 | [2] | |
Market value per Share, end of period | $ 32.21 | $ 39.30 | [2] | |
Ratio to average Net Assets | ||||
Net investment loss | [4] | (1.25%) | (1.28%) | [2] |
Total expenses | [4] | 1.25% | 1.28% | [2] |
Total Return, at net asset value | [2] | 4.11% | (4.58%) | |
Total Return, at market value | [2],[5] | 4.44% | (1.75%) | |
[1] | Commenced trading on the NYSE Arca on February 20, 2015. | |||
[2] | Total return calculated for a period of less than one year is not annualized. | |||
[3] | Based on average shares outstanding. | |||
[4] | Annualized. | |||
[5] | In computing the market price total returns, the inputs for dates on or after January 1, 2016 reflect the midpoint of the bid/ask spread as of the close of trading on the exchange where Fund shares are listed, and the inputs for dates prior to January 1, 2016 reflect the last price as of the close of trading on the exchange where Fund shares are listed. |