Are you in the position to make a substantial investment?
Are you willing to assume the risk of loss for the opportunity of substantial
gain?
According to MAR (Managed Account Reports), January 1999
in only four years time, assets invested in managed futures have grown
by over 100%
from 19 Billion to 39 Billion Dollars.
If professionally managed futures is one of the fastest growing investments
of our time, used by sophisticated investors and recommended to its
clients by
Goldman Sachs, shouldn't you at least learn why? Bear in mind
that past
performance is not necessarily indicative of future results. The risk
of loss
exists in futures trading.
Many professional Commodity trading advisors (CTAs) have been shown
to achieve substantial,
highly attractive returns through prudent money management. For
example, in MAR, Fourth Quarter 1999,
The CTA ranked #1 of all CTAs over the last 12, 36, and 60 month
periods, both in "Diversified" and "All Programs" categories.
Over the past 48 months (April 1996-March 2000), International Traders
Research ranks the #1 CTA with a 1157.57% compounded
rate of return. But what we find most impressive is the best
and worst 12, 24,36,48, and 60 month periods experienced by the CTA,
as presented by International Traders Research First Quarter 2000 Edition,
which follows:
best 12 months 494.4% worst 12 months 31.0%
best 24 months 1385.3% worst 24 months 120.1%
best 36 months 2446.5% worst 36 months 388.4%
best 48 months 3689.8% worst 48 months 1157.6%
best 60 months 7710.0% worst 60 months 3382.0%
The CTA's five year performance history as presented in its disclosure document dated 7/21/2000 shows:
1995 124.28%
1996 432.00%
1997 55.96%
1998 41.09%
1999 121.89%
For investment qualifications, please contact
Peter Matzke of Mercer Capital Inc. toll free at 888-834-9878 extension
23
For investors outside of the U.S. please reply to managed_futures
with a phone number and a time that we may contact you.
THIS MATERIAL MENTIONS SERVICES WHICH RANK THE PERFORMANCE OF COMMODITY
TRADING ADVISORS.
PLEASE NOTE THAT THE RANKINGS ONLY APPLY TO THOSE CTAs WHO SUBMIT THEIR
TRADING RESULTS.
THE RANKINGS IN NO WAY PURPORT TO BE REPRESENTATIVE OF THE ENTIRE UNIVERSE
OF COMMODITY TRADING
ADVISORS. THE MATERIAL IN NO WAY IMPLIES THAT THESE RESULTS ARE OFFICIALLY
SANCTIONED RESULTS
OF THE COMMODITY TRADING INDUSTRY. PAST PERFORMANCE IS NOT NECESSARILY
INDICATIVE OF FUTURE
RESULTS. THE RISK OF LOSS EXISTS IN FUTURES TRADING. THE USE
OF FUTURES MAY NOT BE SUITABLE FOR
ALL INVESTORS.
Now you can better understand why investors like you are joining the
managed futures success in
record numbers. Not only can managed futures provide an attractive
stand alone investment, able
to excel in both bull and bear markets, but managed futures also can
add profound diversification
potentially increase performance, and balance an overall investment
portfolio.
Investors seeking financial prosperity are using diversification through
different asset classes.
Since managed futures have a very low correlation to stocks, professionally
managed futures are
considered by many to be an ideal investment.
The Chicago Board of Trade publication EM35-2, "Managed Futures, Portfolio
Diversification Opportunities"
States on page 2:
"POTENTIAL FOR ENHANCED PORTFOLIO RETURNS
While managed futures can decrease portfolio risk, they can also simultaneously
enhance
overall portfolio performance. For example,... adding managed
futures to a traditional portfolio
improves overall investment quality. This is substantiated by
an extensive bank of academic research, beginning
with the landmark study of Dr. John Lintner of Harvard University,
in which he wrote that
'the combined portfolios of stocks ( or stocks and bonds) after including
judicious investments...
in leveraged managed futures accounts show substantially less risk
at every possible level of
expected return than portfolios of stocks ( or stocks and bonds) alone'
"
Potential Impact of Incremental Additions of Managed Futures on the
Traditional Portfolio
Jan 1980- Dec 1998 from Managed Futures: MAR Trading Advisor Qualified
Universe Index
Bonds: ML Domestic Master Bond Index (with Coupons reinvested)
Stocks: S&P 500 index (with dividends reinvested)
"Traditional Portfolio
50% Stocks 50% Bonds 0% Managed Futures
Annualized Rate of Return 14.4%, Annualized Standard Deviation 9.1%
Portfolio with Managed Futures
40% Stocks 40% Bonds 20% Managed Futures
Annualized Rate of Return 14.9%, Annualized Standard Deviation 8.2%
32% Stocks 32% Bonds 36% Managed Futures
Annualized Rate of Return 15.3%, Annualized Standard Deviation 8.8%"
The Chicago Board of Trade publication EM35-2, "Managed Futures, Portfolio
Diversification Opportunities"
further explains the benefits on page 2." In addition, the potential
for higher returns using managed futures
compares well with other asset classes in terms of risk. One
way to
compare risk is to measure the magnitude of the worst cumulative loss
in value
of an investment from any peak in performance to the subsequent low.
This
worst case, peak to valley scenario is called a draw down in the futures
industry.
...managed futures outperformed U.S. and international stocks during
the worst
peak to valley draw downs of the S&P 500 and the Europe, Australia,
and Far East
(EAFE) Index."
THIS IS NOT AN OFFER OR SOLICITATION FOR SALE. OFFERS OR SOLICITATIONS
MAY ONLY BE MADE
WITH A DISCLOSURE DOCUMENT. For investment
qualifications, please contact
Peter Matzke of Mercer Capital Inc. toll free
at 888-834-9878 extension 23
For investors outside of the U.S. please reply to managed_futures
with a phone number and a time that we may contact you.
THE RISK OF LOSS IN TRADING COMMODITIES CAN BE SUBSTANTIAL.
YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING
IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.
THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN OBTAINABLE IN COMMODITY
TRADING CAN WORK AGAINST AS WELL AS FOR YOU. THE USE OF LEVERAGE
CAN LEAD TO LARGE LOSSES AS WELL AS GAINS.
IN SOME CASES, MANAGED COMMODITY ACCOUNTS ARE SUBJECT TO SUBSTANTIAL
CHARGES FOR MANAGEMENT
OR ADVISORY FEES. IT MAY BE NECESSARY FOR ACCOUNTS THAT ARE SUBJECT
TO THESE CHARGES TO MAKE
SUBSTANTIAL TRADING PROFITS TO AVOID DEPLETION OR EXHAUSTION OF THEIR
ASSETS. THE DISCLOSURE
DOCUMENT CONTAINS A COMPLETE DESCRIPTION OF THE PRINCIPAL RISK FACTORS
AND EACH FEE
TO BE CHARGED TO YOUR ACCOUNT BY THE COMMODITY TRADING ADVISOR (CTA).
THE REGULATIONS OF THE COMMODITY FUTURES TRADING COMMISSION (CFC) REQUIRE
THAT PROSPECTIVE
CUSTOMERS OF A CTA RECEIVE A DISCLOSURE DOCUMENT WHEN THEY ARE SOLICITED
TO ENTER INTO AN
AGREEMENT
WHEREBY THE CTA WILL DIRECT OR GUIDE THE CLIENTS COMMODITY INTEREST
TRADING AND THAT CERTAIN
RISK FACTORS BE
HIGHLIGHTED. THIS BRIEF STATEMENT CANNOT DISCLOSE ALL THE RISKS AND
OTHER SIGNIFICANT ASPECTS
OF THE
COMMODITY MARKETS.
THE CFTC HAS NOT PASSED UPON THE MERITS OF PARTICIPATING IN ANY OF
THESE TRADING PROGRAMS
NOR ON THE
ADEQUACY OR ACCURACY OF ANY OF THESE DISCLOSURE DOCUMENTS.
OTHER DISCLOSURE STATEMENTS ARE REQUIRED TO BE PROVIDED TO YOU BEFORE
A COMMODITY ACCOUNT MAY
BE OPENED FOR YOU.
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