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RISK DISCLOSURE STATEMENT

Please scroll down the page to accept or decline the Terms & Conditions.

IF YOU WOULD LIKE TO VIEW THE FRONTIER FUND PROSPECTUS, IN ITS ENTIRETY, PLEASE CLICK HERE. To obtain a hard copy of the Prospectus, please call your financial advisor. Please note that the Post-Effective Amendment No. 2 to the Registration Statement for The Frontier Fund has an effective date of April 30, 2011.

Please note this offering is made only through FINRA members, who must prominently display their names to potential investors.

YOU SHOULD CAREFULLY CONSIDER WHETHER YOUR FINANCIAL CONDITION PERMITS YOU TO PARTICIPATE IN A COMMODITY POOL. IN SO DOING, YOU SHOULD BE AWARE THAT FUTURES AND OPTIONS TRADING CAN QUICKLY LEAD TO LARGE LOSSES, AS WELL AS GAINS. SUCH TRADING LOSSES CAN SHARPLY REDUCE THE NET ASSET VALUE OF THE POOL, AND CONSEQUENTLY, THE VALUE OF YOUR INTEREST IN THE POOL. IN ADDITION, RESTRICTIONS ON REDEMPTIONS MAY AFFECT YOUR ABILITY TO WITHDRAW YOUR PARTICIPATION IN THE POOL.

IN SOME CASES, COMMODITY POOLS MAY BE SUBJECT TO SUBSTANTIAL CHARGES FOR MANAGEMENT, ADVISORY AND BROKERAGE FEES. IT MAY BE NECESSARY FOR THOSE POOLS THAT ARE SUBJECT TO THESE CHARGES TO MAKE SUBSTANTIAL TRADING PROFITS TO AVOID DEPLETION OR EXHAUSTION OF THEIR ASSETS. THE PROSPECTUS OF THE FRONTIER FUND CONTAINS A DESCRIPTION OF THE PRINCIPAL RISK FACTORS, EACH EXPENSE TO BE CHARGED TO THE FRONTIER FUND AND A STATEMENT OF THE AMOUNT, AS A PERCENTAGE RETURN AND DOLLAR AMOUNT, NECESSARY TO BREAK-EVEN, THAT IS, TO RECOVER THE AMOUNT OF YOUR INITIAL INVESTMENT.

THE REGULATIONS OF THE COMMODITY FUTURES TRADING COMMISSION ("CFTC") REQUIRE THAT PROSPECTIVE INVESTORS RECEIVE A DISCLOSURE DOCUMENT WHEN THEY ARE SOLICITED TO INVEST FUNDS IN A COMMODITY POOL AND THAT CERTAIN RISK FACTORS BE HIGHLIGHTED. THIS DOCUMENT IS READILY ACCESSIBLE AT THIS SITE AND FROM THE FINANCIAL INDUSTRY REGULATORY AUTHORITY ("FINRA") MEMBERS THAT ARE SELLING AGENTS OF THE FRONTIER FUND. THIS BRIEF STATEMENT CANNOT DISCLOSE ALL OF THE RISKS AND OTHER FACTORS NECESSARY TO EVALUATE YOUR PARTICIPATION IN THE FRONTIER FUND. THEREFORE, YOU SHOULD PROCEED DIRECTLY TO THE PROSPECTUS AND STUDY IT CAREFULLY TO DETERMINE WHETHER SUCH TRADING IS APPROPRIATE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. YOU ARE ENCOURAGED TO ACCESS THE PROSPECTUS BY CLICKING ON THE ABOVE LINK. YOU WILL NOT INCUR ANY ADDITIONAL CHARGES BY ACCESSING THE PROSPECTUS. YOU MAY ALSO REQUEST DELIVERY OF A HARD COPY OF THE PROSPECTUS, WHICH ALSO WILL BE PROVIDED TO YOU AT NO COST. THE CFTC HAS NOT PASSED UPON THE MERITS OF PARTICIPATING IN ANY FRONTIER FUND SERIES, NOR ON THE ADEQUACY OR ACCURACY OF THE PROSPECTUS.

PLEASE ACKNOWLEDGE YOUR UNDERSTANDING OF THIS IMPORTANT STATEMENT.

****** TERMS AND CONDITIONS ******

In order to use this site, you must accept the Terms and Conditions ("T&Cs") of use of this website. Click here to view the T&Cs. (Please review these T&Cs carefully).

The RDS and T&Cs are accepted by selecting the "I ACCEPT AND ACKNOWLEDGE" button below. Acceptance by any representative of an entity is acceptance by that entity. By selecting the "I ACCEPT AND ACKNOWLEDGE" button below or by otherwise accessing this site, the user or representative acknowledges that he or she has read these RDS and T&Cs. If you do not agree with these RDS and T&Cs, please select the "I DO NOT ACCEPT" button below. If the "I DO NOT ACCEPT" button is selected, further entry to the website will not be permitted. If you review the Prospectus, you will still need to accept or decline the T&Cs before you can gain access to the site.

We reserve the right to amend this RDS and the T&Cs at any time. These T&Cs were last modified on May 23, 2008.



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Why Managed Futures?

Managed Futures in a Portfolio

As an investor, you recognize the need to evaluate managed futures in context; you want to know not only the stand-alone characteristics of managed futures, but also the impact that managed futures can have on your total portfolio. The following graphs explore key attributes of managed futures in smoothing overall portfolio performance.


Historical Correlation of Various Asset Classes to Managed Futures 
January 2000 - December 2011
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

Important Consideration: Non-correlation is over a long period (i.e., over 10 years). In addition, other asset classes have different investment objectives, costs and expenses, liquidity profiles, safety, guarantees/insurance, volatility, tax advantages/disadvantages. Investors are not able to invest directly in these indices.  The performance of the indices does not represent the performance of The Frontier Fund.
Currency: The ICE Futures U.S. Dollar Index (USDX®).  Source: CQG, Inc.
Equities: S&P 500® Total Return Index. Source: PerTrac Financial Solutions.
International Equities: The MSCI® EAFE® Index (Europe, Australasia, Far East). Source: PerTrac Financial Solutions.
Equity Long/Short: The Dow Jones Credit Suisse Long/Short Equity Hedge Fund IndexSM. Source: PerTrac Financial Solutions.
Cash: 3-Month T-Bill Rate. Source: federalreserve.gov.
REITs: The Dow Jones® Wilshire REIT Index. Index. Source: CQG, Inc.
Bonds: Barclays Capital U.S. Aggregate Bond Index®. Source: PerTrac Financial Solutions.
Commodities: TR/J CRB Excess Return Index® through June 2005.  TR/J CRB Total Return Index® thereafter. Source: jefferies.com.
Hedge Funds: The Dow Jones Credit Suisse Hedge Fund IndexSM. Source: PerTrac Financial Solutions.
Managed Futures: CASAM CISDM Asset Weighted Index through October 2010. Barclay BTOP50 Index® thereafter. Source: PerTrac Financial Solutions.
Correlation is a numerical measure of the similarity (or difference) in the performance of two investments. As the graph to the left indicates, managed futures were the only major asset class with a negative correlation to equities (-0.25) during the 10-year period illustrated. This feature suggests that managed futures have a significantly different return pattern from that of equities.


Managed Futures Performance and Risk Measurements versus Other Alternative Asset Classes*
January 2000 - December 2011
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

Important Consideration: Non-correlation is over a long period (i.e., over 10 years). In addition, other asset classes have different investment objectives, costs and expenses, liquidity profiles, safety, guarantees/insurance, volatility, tax advantages/disadvantages. Investors are not able to invest directly in these indices.  The performance of the indices does not represent the performance of The Frontier Fund.
Managed Futures: CASAM CISDM Asset Weighted Index through October 2010. Barclay BTOP50 Index® thereafter. Source: PerTrac Financial Solutions.
Hedge Funds: The Dow Jones Credit Suisse Hedge Fund IndexSM. Source: PerTrac Financial Solutions.
REITs: The Dow Jones® Wilshire REIT Index. Source: CQG, Inc.
Commodities: TR/J CRB Excess Return Index® through June 2005.  TR/J CRB Total Return Index® thereafter. Source: jefferies.com.
Bonds: Barclays Capital U.S. Aggregate Bond Index®. Source: PerTrac Financial Solutions.
Equities: S&P 500® Total Return Index. Source: PerTrac Financial Solutions.

A drawdown is a period in which an investment moves from a peak to a subsequent low. With a relatively low maximum drawdown of 8%, managed futures have exhibited less down-side risk over the past decade than alternative asset classes with similar return profiles.* Standard deviation is a measurement of the volatility of an investment; the more volatile an investment, the higher its standard deviation. As the graph reveals, managed futures have relatively low standard deviation (8%) in comparison to other asset classes.

Integrating managed futures into a stock and bond portfolio can result in a higher return for a given level of risk, as illustrated by the efficient frontier.

An investor with a 50% allocation each to stocks and bonds experiences less performance and more volatility than an investor with allocations of 10% managed futures/45% stocks/45% bonds.

* Maximum drawdown is the measure of risk (also known as Worst Historical Loss) that illustrates the largest peak-to-valley decline, based on simulated monthly rates of return, during a given time period. The time period of analysis is from January 2000 through June 2011, unless otherwise noted. The maximum drawdown depicted here is not the maximum loss that can occur in an individual’s managed account. There is no guarantee that managed futures or the fund will meet its intended objective; accordingly, investors could lose a substantial portion, or even all, of their investment.


Efficient Frontier Theory of Portfolio Diversification: Hypothetical Return for a Given Level of Risk**
January 1980 – December 2011
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

** This diagram models hypothetical portfolios of different compositions, based on actual index performance over the periods shown. Investors are not able to invest directly in these indices.  The performance of the indices does not represent the performance of The Frontier Fund.
Managed Futures: CASAM CISDM Asset Weighted Index through October 2010. Barclay BTOP50 Index® thereafter. December 2010 performance is an estimate.  Source: PerTrac Financial Solutions.
Equities: S&P 500® Total Return Index. Source: PerTrac Financial Solutions.
Bonds: Barclays Capital U.S. Aggregate Bond Index®. Source: PerTrac Financial Solutions.

 

INVESTING IN FUTURES INVOLVES SUBSTANTIAL RISK OF LOSS. CLICK HERE FOR A FULL DISCUSSION OF POSSIBLE RISKS. »


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