Commodity Risk Management Group LLC (CRMG) offers managed futures through individually managed accounts which are opened in the investor's name, with money on deposit always under the investor's control. A CTA is given authority to place trades on the investor's behalf, and the investor is able to monitor activity and track performance.
Managed futures are investment vehicles run by professional money managers, known as Commodity Trading Advisors (CTAs), who manage client assets using global futures markets. There are over 1,500 active CTAs currently registered with and regulated by the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC). CTAs invest in a wide variety of product types: Commodities such as Corn or Sugar; Metals such as Gold or Copper; Fixed Income products such as US Treasury Bonds or UK Gilts; Equity Indices such as the S&P 500 or Nikkei 225, and Foreign Exchange contracts such as Australian Dollar/US Dollar or Euro/Japanese Yen.
Managed futures investments have grown from just under $1 billion in 1983 to over $200 billion. Managed futures has been one of the fastest growing asset classes over the past several decades.
CRMG combines sophisticated analytics with precision technology and market expertise to identify CTAs with risk/returns that fit a variety of individual investor needs. Based upon your needs and risk tolerance, Commodity Risk Management Group will show you CTAs that fit your requirements. Some of the criteria we use include strategy, experience, drawdown, volatility, assets under management (AUM), minimum investment, track record, markets traded, and margin-to-equity ratio.
Most CTAs have minimum investment amounts that allow them to trade their strategies without sacrificing return. This initial investment will require you to complete new account documentation with Commodity Risk Management Group, who will process trades at the direction of the CTA. The assets you invest are deposited with CRMG, are only accessible by you, and prelims are viewable intraday. Commodity Risk Management Group is regulated by both the NFA and CFTC.
There are risks with every type of investment. With that in mind, professionally-managed futures accounts may be a valuable investment alternative. However, like any investment decision, prudent research and consideration should be made before investing. Make sure you have collected the correct information to measure CTAs, and that you are comfortable with their strategy. Your decision to invest in a managed futures program should only be made after a thorough research and analysis of managed futures and the risk and the rewards this alternative investment presents.