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October 8, 2013

Letter to the Editor of Bloomberg Markets magazine

Dear Editor:

The article, "Fleeced by Fees", which appears in the November 2013 issue of Bloomberg Markets, deliberately presents an inaccurate view of the managed futures industry. The article's author, David Evans, ignored all of the rules that ensure customers are given correct and current information about the fees they pay and the impact of those fees on their investments.

Commodity pool operators (CPO) are required to provide a detailed disclosure document to potential investors, which includes numerous disclosures regarding the fees and expenses associated with a managed futures investment, including:

• A simple, prominent, easy-to-read break-even analysis that ensures customers are aware of the impact fees and expenses have on the performance of their investments. This disclosure must be expressed in both dollars and as a percentage;

• A complete description of each fee, commission and other expense incurred or anticipated, including a detailed explanation of how the fees are calculated; and

• Performance results net of all fees.

CPOs also are required to distribute quarterly account statements on a timely basis to all customers, and an annual statement that is certified by an independent public accountant. This allows managed futures customers to closely monitor their performance and the amount of fees and commissions they have incurred.

Although all of this information was given to Mr. Evans when he met with NFA staff, he chose to ignore the facts, take comments out of context and ultimately present an inaccurate view of the managed futures industry.

Sincerely,
Daniel Roth
President, National Futures Association