Frequently Asked Questions   Downloads
What are Commodity Trading Advisors (CTAs)?
Commodity Trading Advisors, also known as CTAs, are professional traders regulated by the Commodity Futures Trading Commission (CFTC). They give advice regarding the buying and selling of derivatives or manage individual accounts using a limited power of attorney.

Academic Studies
Yale University & University of Pennsylvania Facts and Fantasies About Commodity Futures (2005)
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CISDM, Isenberg School of Management, University of Massachusetts The Benefits of Managed Futures: 2006 Update (2006)
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Private Studies
Chicago Board of Trade CBOT Managed Futures: Portfolio Diversification Opportunities (2005)
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National Futures Association Opportunity and Risk: An Educational Guide to Trading Futures and Options on Futures (2006)
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Who regulates the Managed Futures industry?
The Managed Futures markets operate under the regulations of the Commodity Futures Trading Commission (CFTC), a government mandated regulatory body. CFTC regulations are enforced by futures exchanges (CBOT, MCE, NYMEX and others) and by the National Futures Associations (NFA), which is the federally authorized self-regulatory organization that administers the regulations of the CFTC for member firms.

Who should invest in managed futures?
Although various academic studies that can be downloaded below have proven that Managed Futures can improve portfolio risk-adjusted returns, Managed Futures is not appropriate for everyone. Each investor should determine his/her suitability. Investors should have realistic expectations about returns on investment and tolerance to drawdowns that occur with Managed Futures as well as any other investment.

Where will the funds be held once I open a managed account?
The funds will be held with the brokerage you open your account with. The CTA will have the power to place trades in that account via power of attorney. The CTA will only handle the trading aspect of the account and will not be responsible for customer service, withdrawal enquiries, or any client questions. The brokerage where the account is housed will handle all non trading questions and concerns.

Why is Modern Portfolio Theory important and who uses it?
The premise underlying MPT tells us that the risk-adjusted returns of a portfolio can be improved by holding a number of less correlated investments. Nobel Prize Winner, Dr. Harry Markowitz, concluded that a diversified portfolio comprised of investments not correlated with securities could provide the greater returns with less risk. Pension funds and sophisticated investors have long relied on Modern Portfolio Theory (MPT) in attempting to obtain the highest returns with the lowest level of risk.

Are any large institutions invested in Managed Futures?
Among other state pension funds and non-governmental institutions, Harvard University regularly includes futures-related instruments in the portfolio. A Harvard representative has stated that "holding commodities offers protection against the ups and downs of stocks and bonds; they're the most diversifying asset in the portfolio. The benefits of diversification are indisputable; diversification rules. It's powerful and our portfolio is a good deal less risky [with commodities] than with only the S&P 500."

How will I view the account?
Your account can be viewed online which will give you current open positions, total equity, margin being used, and today’s statement. Along with being able to view the real time value of your account at any time you will receive daily statements with a complete account breakdown.

Can I add to my portfolio at any time?
Yes, you can add more funds at any time.

Can I withdraw funds at any time?
As long as you do not go below the CTA minimum you can withdraw funds at any time in any denomination.

Can I receive statements via fax or mail?
Statements can be received via fax or mail.