What benefits do individually managed accounts offer over pooled investments?
Individually managed accounts offer certain advantages over pooled investments. Each client’s funds are segregated in their own account, which is held in their own name. A CTA is legally prohibited from having custody of client funds, which are deposited with and held by the Futures Commission Merchant (FCM) through which clients’ futures trades are executed. Generally, individually managed accounts have fewer restrictions on when funds can be deposited into or withdrawn from an account.
