Clients of Futures Investment Company can participate in managed futures through three different types of investment structures: Individually Managed Accounts; Publicly Offered Futures Funds; Privately Offered Futures Funds.

Typically, with an individually managed account, a CTA manages a client’s money through an individually managed account. Through Futures Investment Company, a client first establishes an account with a brokerage firm, then gives the CTA legal authority to direct trading for the funds in that account through a power of attorney agreement.

CTAs are usually compensated by a combination of management fees and incentive fees that are based on the performance of their programs. Compensation for a CTA is typically a 2% management fee based on assets under management, and a 20% incentive fee based on the performance of the investor’s account.

With an individually managed account, there is risk of unlimited liability in excess of margin deposits and many CTAs have high minimum investment requirements.

Some individuals may still prefer to trade their own futures accounts. However, according to studies cited by the Chicago Mercantile Exchange (CME), “...somewhere between two out of three and nine out of ten” individual investors who speculate in commodity futures lose money. For this reason, many investors who wish to benefit from the potential for profit in the futures markets choose to hire a professional money manager with greater experience to invest in the futures markets on their behalf. Although hiring a professional money manager may increase the potential for successful participation in these markets, there is no guarantee that the manager’s trading strategy will be profitable since losses can and do occur.

To obtain the disclosure documents, strategy descriptions, and performance reports of the CTA managed account programs we are currently offering, please register by clicking here.