XML 38 R11.htm IDEA: XBRL DOCUMENT v2.4.0.8
Fees Paid By The Fund And Related Party Transactions
 9 Months Ended
Sep. 30, 2014
Related Party Transactions [Abstract]  
FEES PAID BY THE FUND AND RELATED PARTY TRANSACTIONS
NOTE 3 – FEES PAID BY THE FUND AND RELATED PARTY TRANSACTIONS
 
USCF Management Fee
 
Under the LP Agreement, USCF is responsible for investing the assets of BNO in accordance with the objectives and policies of BNO. In addition, USCF has arranged for one or more third parties to provide administrative, custody, accounting, transfer agency and other necessary services to BNO.  For these services, BNO is contractually obligated to pay USCF a fee, which is paid monthly, equal to 0.75% per annum of average daily total net assets.
 
Ongoing Registration Fees and Other Offering Expenses
 
BNO pays all costs and expenses associated with the ongoing registration of its shares subsequent to the initial offering. These costs include registration or other fees paid to regulatory agencies in connection with the offer and sale of shares, and all legal, accounting, printing and other expenses associated with such offer and sale. For the nine months ended September 30, 2014 and 2013, BNO did not incur registration fees and other offering expenses.
 
Directors’ Fees and Expenses
 
BNO is responsible for paying its portion of the directors’ and officers’ liability insurance for BNO and the Related Public Funds and the fees and expenses of the independent directors who also serve as audit committee members of BNO and the Related Public Funds. BNO shares the fees and expenses on a pro rata basis with each Related Public Fund, as described above, based on the relative assets of each Related Public Fund computed on a daily basis. These fees and expenses for the year ending December 31, 2014 are estimated to be a total of $560,625 for BNO and the Related Public Funds.
 
Investor Tax Reporting Cost
 
The fees and expenses associated with BNO’s audit expenses and tax accounting and reporting requirements are paid by BNO.  These costs are estimated to be $125,000 for the year ending December 31, 2014.
 
Other Expenses and Fees and Expense Waivers
 
In addition to the fees described above, BNO pays all brokerage fees and other expenses in connection with the operation of BNO, excluding costs and expenses paid by USCF as outlined in Note 4 below. USCF has voluntarily agreed to pay certain expenses normally borne by BNO to the extent that such expenses exceed 0.15% (15 basis points) of BNO’s NAV, on an annualized basis, through at least December 31, 2014. USCF has no obligation to continue such payments into subsequent periods. For the nine months ended September 30, 2014, USCF waived $95,024 of BNO’s expenses. This voluntary expense waiver is in addition to those amounts USCF is contractually obligated to pay as described in Note 4.