Investment Advisors / Family Offices

Add Managed Futures Investments to Your Portfolio as an Alternative Investment to the Stock Market 

Investment advisors and family offices can diversify a portfolio with managed futures, a liquid and transparent investment in futures markets such as agriculture, equity indexes, fixed income, meats, currencies, and metals.  Such accounts are managed by a professional manager known as a Commodity Trading Advisor (CTA).

In addition to the basic benefits of managed futures, RIAs and family offices may also realize the benefits listed below.

Managed Futures offer an Investment that Is Typically Not Correlated to the Stock Market or Bond Market

Managed Futures offer diversification of a portfolio.  Managed Futures returns are typically uncorrelated or have low correlation to the stock and bond market and therefore can be a beneficial alternative investment to add to your portfolio. 

Efficient use of Cash Through Notional Funding 

Managed futures separately managed accounts (SMAs) provide a unique opportunity: The efficient use of cash, through Notional Funding.  Notional funding is typically only available through separately managed accounts and is not fully available through other investments or other structures such as a fund.

An account is notionally funded when the client directs the Commodity Trading Advisor (CTA) to trade the account as if the funding amount was higher than the actual funds on deposit in the client’s account. This does not, however, mean that the account may trade under margined. Notional Funding results in the efficient use of cash as you can fund the account with less cash than the stated account size and take advantage of notionally funding the rest of the account.

Low Cost Access To Managed Futures Sector

In addition to the efficient use of cash through notional funding, Managed Futures separately managed accounts (SMAs) provide additional potential for the efficient use of cash because you are directly accessing a Commodity Trading Advisor’s (CTAs) program without the additional fees of a fund structure.

Liquidity of Futures Markets and No Lock Up Period

Managed Futures in general offer liquidity because they are exchange traded products which typically have a high volume of trading and are traded on regulated exchanges such as the CME Group and ICE as well as other regulated exchanges. This is compared to other alternative investments which may not be nearly as liquid due to the nature of the market such as shares in a private company (private equity) or real estate.

Transparency of Investment

Since the account is in your firm’s name and you own the actual assets, (versus a fund structure) you’ll have full transparency in your account activity. With the ability to see daily statements and drill down to the trades in each market, you’ll be able to access positions and monitor manager and market activity. In addition, you will have the transparency that is not offered in a fund structure. You will own the actual contracts traded rather than just a portion of a fund.

Additional Benefits of Separately Managed Accounts Versus a Fund Structure 

Managed Futures Separately Managed Accounts offer additional benefits that are not available in a fund structure.   While a managed futures fund structure may offer some benefits over separately managed futures accounts, the advantages of a separately managed account can outweigh a fund structure. With a fund structure, the potential returns are reduced by the additional fees that come with a managed futures fund structure, in addition a fund structure is subject to lack of transparency because you do not own the actual contracts, only a portion of the fund.  With a fund structure you are also subject to lack of liquidity due to potential lockups.  With Managed Futures SMA structure, there are no layers of fees that come with a fund structure, there are no lockups, the account is transparent because you own the actual contracts, such as wheat, gold, or interest rates, instead of simply a portion of the fund, and you can choose the amount of notional funding utilized.


Why RCG Managed Futures

The Strength of Rosenthal Collins Group (RCG)

As a division of Rosenthal Collins Group (RCG), RCG Managed Futures provides access to managed futures programs, futures clearing and execution, technology, service, and the financial standing you want in a Futures Commission Merchant (FCM). Rosenthal Collins Group (RCG) is one of the oldest and largest independently owned Futures Commission Merchant (FCMs) in the United States.  As an FCM we are regulated and fully registered with the Commodity Futures Trading Commission (CFTC) and are members of the National Futures Association (NFA).

Leadership comes naturally to the executives at Rosenthal Collins Group. Our top officials have served       as chairmen of Chicago’s major futures exchanges. Les Rosenthal at the Chicago Board of Trade, Bob Collins at the MidAmerica Commodity Exchange, and RCG Chairman/CEO Scott Gordon at the Chicago Mercantile Exchange. These perspectives provide unparalleled experience in the futures brokerage community as well as a lasting commitment to the industry.

Familiarity with Futures: Offering a Variety of CTA programs

As the managed futures division of Rosenthal Collins Group, we utilize our background in the futures industry as an FCM, to provide access to CTA programs and investments that may fit in with your objectives.  We provide clearing access to CTA programs with different trading methodologies, strategies, backgrounds, and markets traded in order to provide a range of CTAs that can potentially be cleared at RCG.  You can review the RCG Managed Futures CTA Database, powered by the industry leading BarclayHedge tool, to review and choose CTA managers that might suit your objectives and be of interest.

Managed Futures Information and Tools

We provide access to information and tools to help facilitate your managed futures investing.   We offer the efficient use of cash through notional funding, offer a master account structure so that you can cross margin your futures accounts and provide information on the details of futures and managed futures accounts, so that you can better access the futures markets and investments.   In addition to providing resources and information on managed futures, as stated above, we also provide access to the RCG Managed Futures CTA Database, powered by the industry leading Barclay Hedge CTA database tool, in order for you to track and evaluate managed futures programs.

Talk to us about your needs. We’ll discuss how managed futures can be a potential benefit to you and your goals