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Managed Futures Industry Trends

Enhanced investor control via Managed Accounts

Investors moving capital from traditional Fund of Hedge Funds and into managed accounts or managed account platforms

Increased liquidity terms within funds – move from quarterly/monthly to semi-monthly/weekly/on demand

Daily/Monthly portfolio transparency reporting to fund investors

Independent daily reconciliation & 3rd party valuation

Multiple FCM’s

Multi-Tiered fees & additional investor level fees beyond management & performance

Enhanced investor due diligence including on-site visits

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Managed Account Platform

Large investors pushing managed account platforms towards their operational mandates:

Service providers: FCM Auditor Administrator Bank

Compliance/Controls/Etc: Independent Reconciliation/Valuation Cash Controls Liquidity terms Fee terms Reporting requirements Risk Management

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Enhanced Reporting

Aggregation of portfolio data for investors and managers/sponsors

Across investor’s managed accounts

Across investor’s pro-rata portion of Fund/MAP investments***Fund/MAP may invest in many CTA’s via managed accounts

Segmentation, sorting & subtotaling of portfolio data for analysis:

Strategy, CTA, FCM, Investment type, Currency, etc…

Daily Investor NAV estimates by CTA & consolidated across CTA’s

Daily ROR – CTA, across CTA’s, Class, Investor

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Daily P&L Report - Master Fund

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Daily P&L Report - Master Fund(Feeder Transparency)

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Daily P&L Report - Master Fund (Feeder Transparency with Investor Segmentation)

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Daily P&L Report - Master Fund(Investor Transparency – Tom McGregor)

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Investor Transparency – Tom McGregorInvestment Type / FCM

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Investor Transparency – Tom McGregorSector (Agriculture) / Investment

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Tom McGregorDaily & MTD Investor Statement (Net of Fees)

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NFA Rule 2-46

CPO Quarterly Reporting Requirements – How can your administrator help? Most reporting requirements should be part of your

administrators standard reporting package Calculate NAV Calculate R.O.R. Prepare the Schedule of Investments

Schedule of Investments Administrator tracking of all trade activity allows for roll-up of

data

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Daily Reconciliation

Administrator receives trades directly from each CTA

Administrator receives nightly feeds from each FCM

Administrator receives pricing directly from third party sources

T -> Flash reports - Positions and P&L 

T+1-> Reconciled reports – Positions and P&L Positions

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Summary

Trend Toward Managed Account Structures

Increased Investor Control / Due Diligence

Increased Frequency of Liquidity

Enhanced Investor Reporting - Frequency & Transparency

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Spectrum Global Fund Administration

Full Service Daily – Oriented Fund Administration

US & Cayman – Funds, Managed Accounts, FoF’s

Flexible Technology To Handle Multiple Structures, Products, Complex Fees

45% Of Business Is CTA Related

75% Is Daily Reconciliation & Reporting Oriented

Daily Transparency Reporting, NAV Estimate’s And Returns

Integrated and Flexible Internal System - VBO

Facilitate on-demand Liquidity

Facilitate Independent Valuation

SAS 70