● The categorization of CTA Fund:

1.According to the method of market participation:

▪ Market-specific: Focus on individual markets/commodities i.e.: precious metal

▪ Diversified: Using the Starwint Plan’s method of investing into several markets and futures contracts lowers risk(Starwint Plan)

2.According to trading methods

▪ Computer automatic trading: Apply the quantitative model in fundamental and statistical analysis, conduct trading in accordance with the Bull and Bear Index (Starwint Plan)

▪ Human discretionary trading: Make investment based on fundamental analysis or analysis of key economic data

3.According to trading strategies

▪ Macroeconomic strategies: We make investment into stocks, bonds, foreign exchanges, interest rate, futures, options by adhering to the principles of macroeconomics, identifying general development trends or pricing inconsistencies of the prices of the financial asset as opportunities to acquire great return

▪ Event-based strategy: With our careful coverage of world events, our trading pracices are constantly updated to best suit the dynamics of global economic change.

▪ Market neutral strategy: The Starwint Plan allows clients to profit from price differences between futures contracts regardless of markets eliminating significant market risk (Starwint Plan)

▪ Make trades according to trend: The Starwint Plan uses a large amount of indexes to eliminate market noise to find The most accurate current market trend to establish long and short positions

4.Available options for compensating fund managers

▪ Management fee based: (no business commission) Managers get earnings through expanding scale

▪ Commission based: (With a small management fee) Managers get earnings by ensuring positive fund performance (Starwint Plan)

▪ Mixed commission and fee based: Managers aim to expand scale as well as ensure positive fund performance

CTA Facts and Figures:

● The global futures CTA originated in 1949, when broker Richard Donchian from Hayden, Stone & Co. established the first Publicly managed futures fund (Fund Futures Inc.) fund

● CTAs originated from commodity futures. After many years of development in global financial futures, CTAs nowadays invest into many fields, including agricultural products, energy, metals, foreign exchanges, Stock indices, and interest rates

● Major clients include banks, trust funds, pensions, enterprise capital, and high net asset value individuals

● In 2000, the total amount of global CTA Fund assets was USD 37.9 billion, and in 2013 it reached USD 331.2 billion

The change trend of global CTA Fund (Unit: USD 1 billion)

The benefits of investing in CTAs

● Reduce risks of the whole investment portfolio

As CTAs have low correlation with most traditional assets, its addition into the investment portfolio has the potential to reduce risks and increase returns

● Create more diversified investment opportunities

CATs are very flexible. They can be traded in many supervised commodity futures or financial futures markets in the world. Making diversified and scattered investments in different financial instruments provides good opportunities to benefit from the price changes of commodities, foreign exchanges, stocks, bonds, etc

● Pursue absolute return in multiple market environments

CTAs can make scattered investments in different regions and assets, and its flexibility in shifting from long to short as well as its ease in utilizing leverage makes it and investment with high potential to obtain large returns

● Flexibility of long and short position adjustment

CTAs can easily shift between long and short positions depending on market trend fluctuations, maximizing returns and minimizing losses

*Disclaimer: Absolute return does not refer to fixed return or guaranteed return, and is different from relative return. Traditional funds pursue relative return, So surpassing a certain specific index is its investment goal. Absolute return means to obtain positive return regardless of market environments