44. HOW DO I OPEN AN ACCOUNT WITH SP TRADER FUND?

 

1. WHAT KIND OF POSITIONS DOES SP TRADER FUND TAKE?
For the Investments Futures Growth Fund, SP Trader buys and sells the E-Mini Futures Contracts in the US Index Futures, the most liquid of all the indexes traded. In the Portfolio Futures Growth Fund, SP Trader trades a wider range of markets including commodities and currencies. For more information about our different investment products see Products.
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2. WHAT IS THE EXCHANGE?
The International Monetary Market Division of CME with respect to the Investment Futures Growth Fund. For more information about the CME and the Futures Market, click Futures Market. For more information about the exchanges we trade on with respect to the Portfolio Futures Growth Fund, please see Fundamentals.
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3. WHAT IS THE INDEX? AND HOW DOES IT OPERATE?
An example of a major index is the S&P 500 Index or Broad Market which is comprised of 500 major U.S. weighted stocks (such as GE, MSFT, PFE, XOM, C, JNJ, IBM, AIG, INTC). The index trades approximately 300,000 contracts, or 40 Billion dollars, per day, the most liquid of all the indexes traded. Ease of use vs. stocks or other instruments: electronic platform with fast, efficient fills and 24 hour trading. Commissions are only paid on a round trip exit and entry vs. other instruments which have higher costs of in-and-out commissions and spreads are constant at 0.25 cents and do not widen.
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4. WHAT ARE THE CONTRACT MONTHS AND HOW IS DELIVERY TAKEN?
With respect to the S&P, the contract months are March, June, September & December. The last trading day is the 3rd Friday of the contract delivery month and cash is settled to the S&P 500. For more information about the S&P 500 Stock Index Futures, please click Futures Market. For more information about other exchanges, please see Fundamentals.
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5. WHAT ARE THE SIZE AND MINIMUM NUMBER OF UNITS?
For the Investment Futures Growth Fund, the Subscription Unit size is $6,250 and the minimum investment is ONE Unit, for the Portfolio Futures Growth Fund the Subscription Unit size is $400,000. For more information about our other Fund Products, please see Products. The Investment Futures Growth Fund is closed at this time.
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6. WHAT DOES ONE UNIT REPRESENT?
One Unit allows the SP Trader Investment Futures Growth Fund to buy or sell one futures contract and to hold it overnight without margin. But as explained in "Are You Leveraged at any Time?", below, not all of the Fund's capital or Units are utilized in the market 100% of the time. Generally, the Fund maintains a 50% cash position for each account.
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7. WHAT DO TWO FUTURES CONTRACTS REPRESENT?
In the S&P 500, each futures contract moves in increments of 0.25 Index Points, or 0.50 per contract. One futures contract has a value of per 1 Index Point. So, a 1 point move in the Index represents approximately a 1% move per Unit held.
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8. HOW ARE UNITS VALUED?
Each Unit's valuation is determined on a mark-to-market basis monthly. Whatever percentage gain attributed to that Unit or group of Units is accrued and accounted for on a monthly cash basis. To see trade accruals on a cash basis, please see an example of the Accounting Summary.
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9. HOW MANY POSITIONS ARE ENTERED INTO PER MONTH?
Generally we enter into approximately 10-12 positions per month.
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10. ARE YOU LEVERAGED AT ANY TIME?
No, we do not leverage our funds at any time. To the contrary, we provide cushion for draw downs and maintain a conservative posture. We do not maximize the number of contracts that could be purchased but maintain at least a 30-50% cash cushion at all times. This means that we are not in the market 100% of the time and not with 100% of the capital available so as to protect the Fund's capital which is the priority at all times. And we do not utilize outside capital for leverage or for margin.
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11. WHAT ARE YOUR INVESTMENT STRATEGIES?
Our investment strategies are to maximize capital maintenance over profit maximization. Proprietary risk management plays a key role in SP Trader Fund's investment strategy. Effective money management helps minimize the risk profile of the invested capital. The computer trading systems continuously monitor all risk factors, volatility and historical context of each traded trend to precisely define the optimal size of each position. For more on our philosophy and strategy, please see Why SP Trader.
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12. HOW DO YOU DETERMINE WHAT POSITIONS TO TRADE?
We take positions based on technical criteria which are programmed into our proprietary trading system. The criteria include proprietary formulas for determining short term oversold and overbought market conditions as well as price divergence and is based on a well-defined trading methodology utilizing a large number of rules. The programs were designed to find large winners, while suffering small losses and yet be highly accurate. The programs were designed to eliminate many of the outside influences or emotions and other mistakes traders tend to make. It has no emotions about whether the market goes up or down. Long and short trades are split almost evenly. For more information about Our Trading System, Click on Our Trading System.
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13. WHERE MAY I GET A COPY OF THE FUND PROSPECTUS?
Please download the Prospectus at the site from  Download Information & Forms.
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14. WHERE MAY I OBTAIN REDEMPTION FORMS AND OTHER FUND FORMS?
All forms may be downloaded at the site at Download Information & Forms.
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15. WHY A MANAGED FUTURES FUND?
Managed futures investments are intended to generate long term capital growth by providing portfolio diversification. Investing in SP Trader Funds may add substantial diversification not otherwise available through traditional investments. A key reason to invest in a managed futures (see Why SP Trader) product is the potential to generate attractive returns while protecting against risk.
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16. WHY THE SP TRADER INVESTMENT FUTURES GROWTH FUND?
Since January 2000, The SP Trader Investment Futures Growth Fund has had and continues to have one of the best performance track records. The Fund produces absolute returns in every type of market. This approach gives SP Trade Investments Capital Ltd. the ability to profit in virtually any environment, be it rising or falling markets, quick or long term moves, or trending versus oscillating markets. A Portfolio allocation of 30% in SP Trader Fund would reduce your frequency of losing months by nearly half and increase your return by over 30% annualized. The Fund Products generate the best trading strategies in the business today. Customer service is consistently timely, efficient and personal. For more information please see Why SP Trader.
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17. WHAT ARE YOUR HISTORICAL RETURNS?
From January 1, 2000 to current date, the Investment Futures Growth Fund tracked historical returns performance of an average annualized simple rate of return of over 50% with an annualized standard deviation of 13% and Sharpe Ratio of 5.53. With over 1000 trades, approximately 70% were profitable. Click on any performance period and review the daily trades and their results. From January 2000, with more than 1,000 positional trades, the results have been consistent and constant. Had one invested $6,250 in January 2000, utilizing our proprietary system, the compounded net profit would now be over $100,000. See our Historical Returns.

For more on Monthly % Performance from the inception of the Fund, click Monthly % to Date. To see all the trades from 2004, click Trades 2004.
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18. HOW ARE YOU RANKED COMPARED TO OTHER SIMILAR FUNDS?
Please go to Ranking to preview our position compared to other hedge funds worldwide based on our performance and own compiled ranking review.
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19. HAVE YOU HAD ANY LOSING MONTHS IN THE LAST 5 YEARS?
Since Jan 2000, we have had three months of drawdown, -1.61% on 12/01/2001, -0.69% on 09/01/2002 and -0.12% on 04/01/2003. Though we had to face several crises during our six year history (9/11 among them), none of these events have influenced our overall performance in a negative way. Among managed futures funds, SP Trade Investment Capital Ltd's Products exhibits one of the best track records worldwide. The past has shown that an investment in the Fund is an asset in a client portfolio in difficult economic environments. The past has also shown that the Fund can compensate for downturns in world equity markets with positive performance. For more about monthly gains and losses please click Monthly % to Date.
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20. WHO MANAGES THE SP TRADER INVESTMENT GROWTH FUND?
SP Trade Investments Capital Ltd's core management comprises of two seasoned senior traders, an operations execution manager, a financial strategies and systems analyst and a computer programmer who have, since January 2000, perfected, tested and launched a successful financial trading system based on 15 years of investment research and investment analysis. The management team is led by a U.K. national with 20 years of financial management experience. The same personnel have been managing the Fund since its inception and continue to lead the Fund into the future.
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21. WHAT KIND OF COMPANY IS SP TRADE INVESTMENT FUTURES FUND?
SP Trade Investments Capital Ltd. is a Hedge Fund.
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22. HOW DO YOU USE THE ADVANTAGE OF HEDGE FUNDS?
Above average gains combined with a low risk of losses - To achieve this goal for our investors, SP Trade Investments Capital Ltd developed a technical computerized trading system. The computer software platform electronically initiates buy and sell orders through technical analysis. As the markets absorb news and other factors that influence prices, the program adjusts its positions; immediately modifying existing orders based on money management and correlation changes. The result can be summarized as follows: minimize losses and increase profit potential coupled with profitable trades in both bull and bear markets.
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23. WHERE ARE THE INVESTMENT FUNDS PLACED?
Funds are brokered with brokers and clearing houses that are the world's leading providers of futures brokerage services.

The Fund utilizes various brokers and clearing houses to keep fees and slippage as low as possible. SP Trader also uses subsidiaries to trade through brokers to prevent the risk of other market participants and competitors reconstructing our positions' trades and to reduce the risk of exposure with any one broker/clearing house.
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24. UPON RECEIPT OF MY FUNDS, WHEN DO YOU BEGIN TRADING?
Upon receipt of investment funds we begin trading within 3-5 business days - the time it takes to transfer the funds into the brokerage account.
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25. HOW DO I TRACK MY ACCOUNT WITH YOU?
Upon executing and returning the Unit Subscription Application, we will send you a 10 digit code to be utilized by you for all of your communications with us. This reference control code represents your account segregated under the SP Trade Investments Capital Ltd. capital trading account and is utilized to keep track of your account, accounting and performance reports provided to you on the 10th of each month. For an example of the Accounting Summary you can expect, click Accounting Summary.
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26. WHAT IS THE FRONT-END LOAD COST AND INCENTIVE FEE COST?
There are no Front End Load fees, but there is an Incentive Fee of 20% commission paid on the actual net profits earned by the client. This Incentive Fee is only earned whenever the Fund reaches a new High Water Mark. The only other cost to Fund clients is a $35.00 roundtrip transaction which includes all brokerage fees, exchange fees and slippage. There are no other costs, hidden or otherwise.
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27. DO YOU TAKE AN INCENTIVE FEE ONLY AT EVERY HIGH WATER MARK LEVEL?
Yes, management only takes its Incentive Fee when the Fund reaches a New High Water Mark. For more information about defining the High Water Mark, please see the Prospectus. To obtain a Prospectus, please download it from Download Information & Forms.
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28. HOW DOES THE 20% PARTICIPATION COMPARE TO OTHER FUNDS?
20% is at the lower range of what mutual and hedge funds charge, which generally charge from 25% to as high as 50%.
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29. IS LIABILITY LIMITED TO THE INVESTMENT MADE?
Yes, the liability is limited to the initial investment. We are not a leveraged fund and do not purchase on margin. We generally allow a 50% cash margin at all times and we allow at least a 30% draw down for each Unit invested, which is more than sufficient to cover all draw downs. Investors will never have to increase their investment in the Fund if they do not wish to - there is never a call on additional investment funds.
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30. WHAT IS MY TAX LIABILITY?
Investment gains made in tax haven jurisdictions may not be generally taxable or usually incur a lower rated tax liability. Please contact your tax adviser with respect to your expected tax liability.
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31. DO YOU PROVIDE ACCOUNTING AND TRANSPARENCY?
Yes, by the 10th day of each calendar month clients receive an accounting and status report which includes: initial balance, points gained/lost, Percent Profit gained, Value gained/lost, the Totals net of the per roundtrip transaction for commission and slippage and the net closing balance after Fund participation. An example of the report can be viewed at Accounting Summary. In addition; investors receive a weekly Newsletter. For the archive of Newsletters, see Newsletters.

Although it is absolutely necessary for the Fund not to disclose vital trade information to the public so as to be competitive and accomplish our profit goals, SP Trade Investments Capital Ltd. endeavors to be as transparent as possible while protecting information vital to our trading system. In every instance, the Fund acts on behalf of its investors.
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32. HOW MUCH NOTICE DO I HAVE TO GIVE TO TAKE OUT CAPITAL?

Upon 6 months written notice for the Investment Future Growth Fund, and 1 year for the Portfolio Future Growth Fund, we will provide you with a final accounting report and transfer all or part of your capital as you request. (For investments of greater than USD 5M, 18 month written notice is required). At the time of such request, we will stop trading the account, and if requested place the redeemed funds in a money market account. (Top of Page)

33. MAY I REQUEST THAT YOU STOP TRADING MY FUNDS AT ANY TIME?
Yes, you may give us a stop trading notice at any time and it will be in effect from the next trading day.
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34. DO YOU PROVIDE MONTHLY DATA?
Yes, by the 10th day of each calendar month clients receive an accounting and status report which includes: initial balance, points gained/lost, net profit gained/lost, percent profit gained, the Totals net of the per roundtrip transaction for commission and slippage and the net closing balance after Fund participation. An example of the monthly Summary Accounting report can be viewed at Accounting Summary.
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35. ARE YOU REGULATED BY ANY GOVERNMENTAL BODY?
The Fund is subject to periodical review by internal auditors and may be (but not necessarily) subject to review and regulation by national securities regulatory bodies.
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36. WHAT PRODUCTS ARE AVAILABLE FROM SP TRADER FUND?
There are two Funds available: Investment Futures Growth Fund and Portfolio Futures Growth Fund. The minimum investment for the Investment Futures Growth Fund is $6,250, whereas for the Portfolio Futures Growth Fund it is $400,000. The main difference between the two Funds is that the Portfolio Futures Product is composed of 12 Futures strategies trading in 5 Sectors. For more about the two Products, see Products. The Investment Futures Growth Fund is closed at this time.
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37. HOW DO I SUBSCRIBE TO THE FUND?
If you wish to subscribe to the Fund, please click Open an Account. If you have any queries, comments or suggestions, please don't hesitate to Email us.
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38. WEALTH MANAGEMENT AND ASSET PROTECTION
SP Trader Fund manages client funds with a view first to asset protection by setting hard stop loss limits and thereby limiting losses. An important part of our philosophy is to trade within defined limits that permits winners to run and losses to be stopped out early. This discipline sets SP Trader Fund apart from classical discretionary fund management and insures proper wealth management and asset protection at all times.
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39. OFFSHORE INVESTING AS A TAX SHELTER
Investment gains made in tax haven jurisdictions may not be generally taxable or usually incur a lower rated tax liability, but one should not enter into investments solely for tax reduction purposes. The investment itself has to be sensible before tax liability is considered.
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40. CAPITAL GAINS TAX ON FUTURES TRADING
Capital gains made in certain tax haven jurisdictions may not be generally taxable or usually incur a lower rated tax liability, but one should not enter into investments solely for tax reduction purposes. The investment itself has to be sensible before tax liability is considered. There are certain regulations that permit lower tax rates with respect to Futures trading. Sp trader Fund will aid clients with respect to the tax benefits of futures trading by providing statements in the format required by your local accountant or tax adviser. SP Trader Fund does not provide tax advice.
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41. FUND INVESTMENT AS A FAMILY TRUST OR INDIVIDUAL TRUST
Some investors invest for a family trust or as an individual trust for a family member. Please make out the appropriate section within the Subscription application and sign it as the trustee of the trust.
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42. HOW TO USE A HEDGE FUND AS LIFE INSURANCE TO PROMOTE FAMILY WEALTH?
Although SP trader Fund is not a life insurance policy it can provide an annuity over time for clients that leave their funds in place for the long term. Based on the historical returns and track record of SP Trader Fund, the returns compounded over time would provide a good protective policy for a family or individual, but should not be seen as a direct alternative to life insurance.
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43. HOW DO I TRANSFER IRA (INVIDUAL RETIREMENT ACCOUNT) FUNDS TO SP TRADER FUND?
To transfer funds from your IRA account to SP Trader Fund, please fill out the section of the SP Trader Subscription Application titled IRA Account. Then request that your broker transfer the investment funds to SP Trader Fund. Should your broker not support self-regulated accounts, please see Request Forms and send us a request for the IRA Information Package which will be sent to your email address. If this is not sufficient for your needs, please Email us and we will provide you with an additional list of brokers that support self-regulated IRA accounts and support SP Trader Fund. If you have any questions about IRA investment accounts, please Email us.
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44. HOW DO I OPEN AN ACCOUNT WITH SP TRADER FUND?
If you wish to open an account with the Fund, please click Open an Account. If you have any queries, comments or suggestions, please don't hesitate to Email us.
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