7.5.2.4. Performance Disclosures
Past performance must be disclosed and include the following information:
- • The name of the commodity trading advisor and the name of the trading program
- • The date on which the CTA or other person trading the account began trading customer accounts
- • The number of accounts directed by the CTA pursuant to the specified trading program
- • The total assets under the CTA’s management and the total assets traded pursuant to the specified trading program, as of the date of the disclosure document
- • The largest monthly drawdown (losses) for the account or trading program specified during the most recent five calendar year and year to date expressed as a percentage of customer funds
- • The worst peak-to-valley drawdown for the specified trading program during the most recent five calendar years and year to date, expressed as a percentage of net asset value
- • The annual and year-to-date rate of return for the offered trading program specified for the five most recent calendar years and year to date
All performance information must be current as of a date not more than three months preceding the date of the disclosure document.
Required legend. Any past performance presentation, whether or not required by CFTC rules, must be preceded with the following statement, prominently displayed:
Past performance is not necessarily indicative of future results.
Finally, the CTA must disclose the actual performance of all accounts it directs. If the trading advisor or its trading principals previously have not directed any accounts, the trading advisor must prominently disclose this fact.
CFTC Regulations 4.31, 4.34 and 4.35
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SUMMARY CPO And CTA Customer Disclosure Requirements |
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Type of Disclosure |
Timing of Disclosure |
Disclosure Description |