n order to assist investors with managed futures investments, there are several industry professionals qualified to help in the evaluation, selection, investment and monitoring of managed futures product.

Commodity Trading Advisors (CTAs) are responsible for the actual trading of the managed accounts. A CTA is a person or entity who, for compensation or profit, directly or indirectly advises others as to the advisability of buying or selling futures or commodity options. Providing advice includes exercising trading authority over a customer's account. A CTA is generally required to be registered if he holds himself out to the public as a trading advisor and manages 15 or more persons. As of September 2005, there are over 700 CTAs registered with the National Futures Association (NFA), which is the industry’s self-regulatory organization for futures and options markets.

Futures Commission Merchants (FCMs) are the brokerage firms that maintain the managed accounts, as well as execute, clear and carry CTA-directed trades on the various commodity exchanges worldwide. FCMs are required to meet minimum capitalization requirements, as set by the Commodity Futures Trading Commission (CFTC). As of September 2005, there are over 150 FCMs registered with the NFA.

Commodity Pool Operators (CPOs) assemble commodity funds and pools. These are usually setup in the form of limited partnerships. CPOs generally act as the general partner of commodity pools. CPOs usually hire independent CTAs to handle daily trading decisions. They are generally responsible for the pool's administration, structure, and selecting and monitoring the traders who conduct transactions using the fund's money. As of September 2005, there are approximately 500 CPOs registered with the NFA.

Advisor Consultants (ACs) are available to assist investors in the process of selecting a CTA. ACs can be a valuable resource for learning about managed futures programs and helping establish relationships with CTAs, CPOs and FCMs. These consultants provide both individual and institutional investors with customized investment solutions. These solutions can expose investors to top managed futures and alternative investment talent, capacity and performance. Many ACs have proprietary advisor databases, as well as ranking and asset allocation software that can help investors’ search, screen and select professional advisors that meet their individual requirements. Investors should be cautioned to only work with ACs that registered in some capacity with the NFA.

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