Launch of Mentum Managed Futures Accounts

 

TIDMCMM 
 
RNS Number : 5124H 
Commoditrade Inc. 
23 February 2010 
 

23 February 2010 
               (AIM: CMM) 
                                Commoditrade Inc 
                        ("Commoditrade" or "the Group") 
 
 
              Mentum Launches Commodities Managed Futures Accounts 
 
Mentum LLP ("Mentum"), the Group's wholly-owned commodities asset management 
company, is pleased to announce the launch of its Managed Futures Accounts 
("MFAs"). The Mentum MFAs provide clients with a choice of investment products 
across commodity classes, with an initial focus on listed base metals and energy 
derivatives, traded on major global derivative exchanges. 
 
The Product 
 
Mentum will offer clients access to a suite of portfolio managers trading 
multiple commodity classes and strategies and each representing an individual 
investment product. An investor can view each portfolio manager's 'product' 
profile before deciding whether an individual or a combination of managers best 
suits their requirements.  The asset management team and the range of commodity 
classes on offer is expected to expand as the number of clients and funds under 
management increase. 
 
Mentum is extremely conscious of the importance of providing an investor the 
optimum in transparency and risk management.  Significant care and attention has 
been committed to implementing a resilient, robust and automated technical and 
operating architecture to support the MFAs.  Mentum has chosen a market leading 
systems provider for listed derivatives, this is to ensure the technical 
infrastructure facilitates the Mentum operations team in providing the optimum 
in efficiency, automation and security when processing and in the risk 
management of each Managed Futures Accounts. 
 
The performance objective of the new product is to generate absolute returns for 
clients of between 15% to 20% with controlled volatility through disciplined 
portfolio management and systematic risk parameters. 
 
Markets Traded in Base Metals & Energy 
 
+------------+-----------+ 
| London     | Copper,   | 
| Metal      | Aluminum, | 
| Exchange   | Zinc,     | 
| (LME):     | Lead,     | 
|            | Nickel,   | 
|            | Tin.      | 
|            |           | 
+------------+-----------+ 
| ICE        | Gas       | 
| Futures    | oil,      | 
| Europe:    | WTI,      | 
|            | Brent.    | 
|            |           | 
+------------+-----------+ 
| New        | Heating   | 
| York       | oil,      | 
| Mercantile | WTI.      | 
| Exchange:  |           | 
+------------+-----------+ 
 
Commodity Trading Expertise 
The management team and senior traders at Mentum have, on average, 20 years 
experience trading, managing and building businesses within the commodity arena, 
specifically in futures and options listed on global derivatives exchanges. The 
experience gained includes working at commodity hedge funds, top tier investment 
banks and on major commodity exchange trading floors. 
 
Commodity Trading Strategies 
The trading philosophy will employ a combination of relative value strategies 
including calendar spreads, location/product arbitrage and options, and 
directional strategies taking advantage of potential short and medium term 
trading opportunities. 
 
The Mentum asset management teamhas already commenced trading utilising 
investment seed capital provided by the Group.  Mentum is in the process of 
setting up MFAs for new clients, a number of whom are investors known to Mentum 
who had previously invested in AMCO Commodities Fund Limited which was managed 
by the management team of Mentum LLP.  Initial funds under management at launch 
total $20 million. 
 
Commenting, David Phipps, CEO of Commoditrade, said: 
"The launch of the Mentum MFAs is in line with the Group's strategy to build 
additional revenue streams utilising its new systems and scaleable trading 
platform.  Investors have the flexibility to move between traders and asset 
classes or blend, depending on their requirements.  Over the last twelve months 
we have adopted a very efficient, controlled and robust operating and technical 
infrastructure and this is the first of our new products to benefit from the new 
platform under the new Mentum brand name." 
 
www.mentumgroup.com 
www.commoditrade.net 
 
 
+------------------------------------------+---------------------+ 
| Enquiries:                               |                     | 
+------------------------------------------+---------------------+ 
| Commoditrade Inc, David Phipps, Chief    | tel: [phone]  | 
| Executive                                | 2200                | 
| Danny Chart/Keiron Mathias, Mentum       |                     | 
|                                          |                     | 
+------------------------------------------+---------------------+ 
| Strand Hanson, James Harris / Angela     | tel: [phone]  | 
| Peace                                    | 3494                | 
|                                          |                     | 
+------------------------------------------+---------------------+ 
| Liberum Capital, Chris Bowman / Ellen    | tel: [phone]  | 
| Francis                                  | 2000                | 
|                                          |                     | 
+------------------------------------------+---------------------+ 
| Hansard Communications, John Bick /      | tel: [phone] | 
| Justine James                            | 1100                | 
|                                          | tel: [phone]    | 
|                                          | 061007              | 
+------------------------------------------+---------------------+ 
 
 
Notes to Editors 
Mentum LLP (formerly AMCO Commodities LLP) was incorporated in 2005 and was 
acquired by Commoditrade Inc, in February 2009.  Mentum LLP is authorised and 
regulated by Financial Services Authority (UK) (registration No: 436248). 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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