1	An Introduction to Managed Futures and Ace Investment Strategists, LLC. Yu-Dee Chang Commodity Trading Advisor To proceed, use the arrow to your right .
2	"Commodities are the" Commodities are the Place to Be! The commodities markets are now in the throes of a major bull market. Many, in fact, believe we are at the "sweet spot" of the economic cycle for commodities, representing a classic opportunity for investors. Well known money manager, Jim Rodgers, says of the commodities markets: I am convinced that the value and strength in the commodities markets will continue for years to come-that we are, in fact, in the midst of a long-term secular commodities bull market. The twentieth century saw three long bulls (1906-1923, 1933-1953, 1968-1983), each lasting an average of a little more than 17 years. Underpinning the commodities bull market is rising demand for commodities from China, India and other developing countries. This rising demand is expected to continue into the foreseeable future as a new middle class grows in numbers and buying power. Futures and options investing involves substantial risk of loss and is not suitable for everyone.
3	Amateurs Vs Professionals The most prudent way to participate in the commodities markets is with professional Commodity Trading Advisors (CTAs). Professionally managed futures are eminently suitable for any qualified investor who understands that a major difference exists between amateurs who ‘dabble’ and professionals who trade futures for a living. Isn’t it logical to conclude that an unskilled
4	Ability to Profit in Any Economic Environment Commodity Trading Advisors (CTAs) can take advantage of price trends. They may buy futures positions in anticipation of a rising market or sell futures positions if they anticipate a falling market. For example, during periods of inflation, hard commodities such as gold, silver, oil, grains and livestock tend to trend higher. During deflationary times, futures provide an opportunity to profit by selling into a declining market with the expectation of buying, or closing out the position at a lower price. Our CTAs can also employ strategies involving options on futures contracts that allow for profit potential in flat or neutral markets. As one can see, unlike in stocks, CTAs have the potential to prosper in rising, falling or sideways markets. Bear in mind that the risk of loss exists no matter who is managing your money, and that the potential exists in futures trading to lose more than your initial investment.
5	Take a Look at a Comparison between Mutual Funds and Managed Futures.
6	"One of Today’s Fastest Growing..." One of Today’s Fastest Growing Investments!
7	Insight to Portfolio Diversification With practically a zero correlation with stocks, one of the most attractive features of managed futures is its ability to add profound diversification to an overall investment portfolio. The ability of futures to enhance the returns of traditional investments has been documented in a study conducted by Goldman Sachs. Covering a 25-year period, the study concluded that by "allocating only 10% of a securities portfolio to commodities, investors can vastly improve their performance." Goldman Sachs' conclusion concerning the value of commodities was supported by another study published by the Chicago Mercantile Exchange (CME), one of the world's preeminent futures exchanges. According to the CME study, "Portfolios with as much as 20% of assets in managed futures yielded up to 50% more than a portfolio of stocks and bonds alone."
8	A Comparing a Traditional Portfolio to One Including Managed Futures The Chicago Board of Trade's booklet, “Managed Futures, Portfolio Diversification Opportunities”, shows a portfolio with the greatest risk an least returns comprised of 50% stocks, 50% bonds, and 0% managed futures while a portfolio exhibiting the greatest returns and least risk, comprised 37.5% stocks, 37.5% bonds, and 25% Managed Futures.
9	Managed Futures vs. Stocks The potential for higher performance returns using managed futures compares well with other asset classes in terms of risk. One means of comparing 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 drawdown in the futures industry. As this chart illustrates, since 1989 the worst drawdown managed futures have experienced as an asset class is -15.7%. And when compared to time periods when stocks have shown their worst drawdowns, managed futures have shown positive returns.
10	Managed Futures and Portfolios: A Provocative Statement Managed futures have long been employed in connection with diversifying institutional portfolios. One such example is Harvard University. Jack Meyer, the chief executive of that school’s endowment fund regularly includes commodity and financial futures-related instruments in the portfolio. In fact, this proponent of Modern Portfolio Theory has placed himself on record by stating,
11	Are Managed Futures Riskier Than Stocks? Technically speaking, futures are riskier than stocks because of the greater leverage in futures and potential for unlimited risk. Over-leveraging a futures trading account without utilizing prudent money management could result in potentially substantial losses or profits. In our opinion, that would constitute high stakes gambling, not investing. In over 20 years of observing traders and seeing many millions of dollars made and lost, we believe the unprofessional use of leverage and the lack of prudent money management are the main culprits that can render futures riskier than stocks. Place futures in the hands of an accomplished CTA, and we strongly believe the risk in futures becomes no
12	Academic Studies on Comparing the Risk in Stocks Vs. Managed Futures Thomas Schneeweis, Professor of Finance at the University of Massachusetts, in his 2002 academic study “Benefits of Managed Futures,” destroys the myth of managed futures as investments that are riskier than stocks. Schneeweis found that,“Managed futures are not any more riskier than traditional equity investments. Investment in a single commodity trading advisor is shown to have risks and returns, which are similar to investment in a single equity. Moreover, a portfolio of commodity trading advisors is also shown to have risks, and returns, which are similar to traditional investments.”
13	Introducing Yu-Dee Chang, Trading Advisor, Ace Investment Strategists, LLC (‘ACE’)
14	Advantage of Writing Options ACE’s primary means of investing is writing options on the S&P 500. The CTA states in their disclosure document: “We believe that investments in stock indexes, but not individual stocks themselves, continue to hold more promise for growth than other investments in the near as well as the long term future.”
15	The Measure of a Good Trader One of the best measures of a trader is how he or she performs under all market conditions. In this respect, ACE’s trader, Yu-Dee Chang, has clearly demonstrated his nimble trading skills! Examine the track record of ACE’s flagship “Stock Index Premium Collection” program available in their government-filed disclosure document. One can readily see how well the trading advisor performed in virtually all market conditions, from severe bear markets in 2001 and 2002, through a booming bull market in 2003, across flat stagnant markets in 2004 and 2005, and in a mildly bull market in 2006.. By providing substantial returns through this period with less volatility than the majority of blue chip stocks, ACE has clearly demonstrated their performance is not luck. Bear in mind past performance is not necessarily indicative of future results. The risk of substantial loss exists in futures and options trading.
16	Money Manager Performance Rankings For the benefit of investors there are a number of services that rank and analyze performance of money managers who report their trading results. Among the most popular are), The Barclay Institutional Report, and Autumn Gold. Slides 18 and 19 display performance rankings and/or analysis from these services.
17	DISCLAIMER 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 RESULTS ARE OFFICIALLY SANCTIONED RESULTS OF THE COMMODITY INDUSTRY PAST PERFORMANCE IS NOT NECCESARILY INDICATIVE OF FUTURE RESULTS. THE RISK OF SUBSTANTIAL LOSS EXISTS IN FUTURES TRADING. A COMPLETE DISCUSSION OF FEES AND CHARGES ARE REPORTED IN THE CTA’S DISCLOSURE DOCUMENT. SPECIFICALLY, ONE SHOULD REALIZE THAT AN INTRODUCING BROKER MAY CHARGE A FRONT-END START UP FEE OF UP TO 6% OF THE INITIAL CONTRIBUTION. PLEASE NOTE THAT THIS CHARGE IS NOT REFLECTED IN THE PERFORMANCE OF THE COMMODITY TRADING ADVISOR AND COULD HAVE A SIGNIFICANT ABILITY TO ACHIEVE SIMLAR RESULTS
18	The Barclay Institutional Report The Barclay Institutional Report is one of the most useful for analyzing a CTA’s performance. This valuable report provides investors important performance statistics that would normally be too difficult for them to compute, or too time consuming to interpret. Of particular interest to investors is the performance categories of: Annual returns Total Compounded Return Since Inception STD. Deviation of Monthly ROR (Worst Draw Down) Total Winning vs. Losing Months Length of Recovery from Drawdown Worst and Best 12- and 24- Month Performance Periods Value of a Hypothetical $1000 Invested (VAMI vs. Barclay vs. S&P 500) Monthly Breakdown of Performance History For the most recent Barclay Institutional Report on ACE Investments Click Here.
19	Autumn Gold Mature CTA Rankings
20	Tax Benefits of Managed Futures Managed Futures offer potential tax benefits versus stocks.
21	The Most Important Question We believe the most important question an investor should be asking himself is “What do I have in my portfolio that is non-correlated with stocks and can potentially capitalize in an up, down and sideways-moving stock market?” The research and facts overwhelmingly support the inclusion of managed futures in an overall investment portfolio. For many informed (and suitable) investors, there isn’t a better way to properly diversify and help protect an overall stock portfolio than to incorporate professionally managed futures!
22	Why Should I Invest With Ace Investment Strategists? It stands to reason that in any given month or year, even those investments with the best performance records will be outperformed by others. Savvy investors know this and realize the best is not the best every month and in every year, but over an average of at least 5 years. At least that’s how many professional investors and pension funds evaluate the “best” investments. It’s consistency of performance over time through prudent money management with the smallest draw downs and least volatility that counts most…the more consistency with the smallest draw downs and least volatility the better the investment. What good is it being in an investment even if it possesses an excellent performance record if it was achieved with large drawn downs: experienced investors know no matter how much money they may earn, eventually, they probably would lose it all! Chances are, if we look at a six-year time frame, stretching from 2001 to the present, and which incorporates a period during which the stock market ran the gamut from bullish to bearish to essentially stagnant, most if not all of the investments in a portfolio will have underperformed and/or lacked consistency of performance. Not so with ACE Investment Strategists, LLC. ACE has performed over the most recent six-year time horizon, offering up double-digit returns each year, with almost 90% of all months profitable, and with less volatility than most blue chip stocks. Additionally ACE, has beat the S&P over any two-year period and doubling its performance over any three-year period. Isn’t any investment with performance statistics like this worthy of being an integral part of any suitable investors portfolio? Ace can be an attractive stand alone investment. When suitable investors consider the non-correlation aspect of ACE’s program with respect to stock market performance, the benefits of asset diversification become apparent, and the case for investing with ACE becomes that much more compelling. Past performance is not necessarily indicative of future results. The risk of unlimited loss exits in futures and writing futures options no matter who is managing your money.
23	Can I Track the Performance of my Managed Account? Firstly, a complete accounting of all the activity in your account, including the account balance, can be seen 24 hours a day on Vision’s web site. Secondly, you may call your managed futures specialist, who receives a daily equity run detailing all your open positions, netting all profits and losses, showing the exact daily balance in your account. Lastly, regardless of whether you call or not, a purchase and sale statement will automatically be sent to your chosen mailing address on every single trade. The Purchase and Sale Statement shows the date and price entered, when you exit a trade, the date, price, net profit or loss on the trade and also your account balance.
24	Account Opening Documents To open up the standard account forms, please click on the link below. Standard Account Forms (Adobe PDF, 689KB) For additional account forms please open up the following documents (Corporate, Partnership, Trust, etc…) Supplemental Forms (Adobe PDF, 284KB)