NG Energy International Corp. (CA62931J1021)

Overview

The investment described aims to offer daily investment outcomes that are three times the inverse of the daily performance of the ISE-Revere Natural Gas IndexTM, net of expenses. This unique investment strategy is focused on generating profits from declines in the natural gas sector by inversely mimicking the performance of the ISE-Revere Natural Gas IndexTM. The goal is to benefit from short-term event-driven news as well as long-term trends within the natural gas industry. As such, the fund operates with a non-diversified approach, concentrating its efforts on achieving significant inverse leverage against its benchmark index.

Products and Services

The investment primarily engages in the following financial instruments to achieve its objective:

• Swap Agreements: These are contracts between two parties to exchange financial instruments or cash flows at a set date in the future. The fund utilizes swap agreements to gain inverse exposure to the natural gas index, aiming to profit from decreases in natural gas prices.
• Futures Contracts: Futures are standardized contracts to buy or sell a specific commodity or financial instrument at a predetermined price at a specified time in the future. By engaging in futures contracts on the natural gas index, the fund seeks to amplify its inverse performance relative to the market.
• Short Positions: Taking short positions involves borrowing shares or commodities and selling them on the market with the aim of buying them back later at a lower price. The fund employs short positions to enhance its ability to benefit from negative movements in the natural gas index.
• Other Financial Instruments: In addition to swap agreements, futures contracts, and short positions, the fund may utilize a variety of other financial instruments designed to provide leveraged inverse exposure to the natural gas index. These may include options, forwards, and other derivatives, all selected to complement the fund's investment strategy.

To ensure a steadfast focus on its investment objective, the fund commits to having at least 80% of its net assets (plus any borrowings for investment purposes) in instruments that provide inverse or short leveraged exposure to the index. This dedicated approach underlines the fund's strategy to leverage declines in the natural gas market for potential gains.