About Managed Futures
First Capitol Ag is offering 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.
Choosing a CTA and Managed Futures Program
First Capitol Ag 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, First Capitol Ag 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 First Capitol Ag, who will process trades at the direction of the CTA. The assets you invest are deposited with First Capitol Ag, are only accessible by you, and prelims are viewable intraday. First Capitol Ag is regulated by both the NFA and CFTC.
What Are Managed Futures?
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.
Growth of Managed Futures
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.
Risks of Futures Trading
There are risks with every type of investment. Make sure you have collected the correct information to measure CTAs, and that you are comfortable with their strategy.