McKinley Capital offers Financial Services to Private Clients through its Diversified Account Program. It is recommended that Clients open managed accounts with risk capital. Risk Capital is capital that you can afford to set aside for a couple years and not need.
The Diversified Account Program will trade Commodity Futures contacts on U.S. Exchanges and Foreign Currencies on the off-exchange Foreign Currency market. The goal of the Diversified Account Program is to grow the account capital by following Trends in Commodity Futures and Foreign Currencies. There is no assurance/guarantee that maintenance of the account for a two or three-year period will cause it to be profitable on an overall basis.
Account sizes are recommended to be U.S $1,000,000, with an account minimum of at least $250,000 (this number is a starter number, actual account size recomendation will be based on the client's portfolio). McKinley Capital reserves the right to waive this minimum and may accept account sizes under this amount (minimum $10,000). This account size was established to ensure that client accounts could be sufficeintly diviserfied among the various Commodity Futures groups and Foreign Currencies (see Portfolio Diversification & Risk Management for more information).
Performance Fee: McKinley Capital
charges a Performance fee of 25% of the New Trading Profits
generated for the account during the month, payable each month. As used herein, new
trading profits means, for any calendar month, the sum of the net of any profits and
losses realized on all trades and positions in futures interests (Commodity Futures & Foreign Currencies) closed out for the account
during such month (if no positions were closed out, then there is no performance fee),
plus any loss carry-forward, provided this sum is positive. If the sum is negative, that
amount becomes the new loss carry-forward for the next month. If New Trading Profits are
positive, the new loss carry-forward becomes zero. If capital withdrawals are made when the
loss carry-forward is not zero, the loss carry-forward is multiplied by the value of the
account immediately after the withdrawal and divided by the value of the account immediately
before the withdrawal. The result is the new adjusted loss carry-forward. If any
performance fee shall have been paid to McKinley Capital, and the account shall thereafter
incur a net loss for any subsequent month, McKinley Capital shall be entitled to retain
the performance fee previously paid from the account. However, no subsequent performance
fee shall be paid to McKinley Capital until the account has again experienced new
appreciation. For more information please see Performance & Management
Fees.