PROFILE
Equinox Frontier Funds
DIVERSE RETURN
OPPORTUNITIES
Three distinct commodity
pool options offering profit
potential in up and down
markets
RISK REDUCTION
POTENTIAL
Potential to enhance returns
and reduce risk when added
to a traditional portfolio
EXTENSIVE MANAGED FUTURES
INVESTING EXPERIENCE
Access to decades of
managed futures investing
experience
Equinox Frontier
Diversified Fund
Equinox Frontier
Masters Fund
BUILDING BETTER
ALTERNATIVES
At Equinox Funds, we are pioneers in
developing investor-friendly alternatives,
such as the first multi-advisor managed
futures mutual fund. We started with
managed futures because we believe they
are the single most powerful diversifier for
a portfolio of stocks and bonds. But we’ve
also moved into other alternative assets
like hedged equities, which can potentially
help reduce risk and enhance the returns
of an overall portfolio over time.
With a deep research culture, our mission is
to bring the potential benefits of alternatives
to institutions and individuals by offering
diverse investment strategies that can help
meet the unique goals of each investor.
Ajay Dravid, PhD
Chief Investment Officer,
Equinox Institutional Asset Management, LP
Managing Director of Portfolio Strategy,
Equinox Fund Management, LLC
For a full list of the Equinox Funds Leadership Team, please visit
www.equinoxfunds.com/corporate-home/team
MEET OUR
Portfolio Management Team
Equinox Funds draws upon talented individuals with decades
of collective experience. The Equinox Funds team is among
the most experienced in the alternatives industry, including
members who have been involved in alternative investments
and managed futures for over 20 years. Meet members of
our portfolio management team:
Equinox Funds
is founded
The Equinox Frontier Funds are
launched, the first public managed
Launch of Equinox Frontier
Diversified Fund, Equinox Frontier
Masters Fund, and Equinox
Frontier Long/Short
Commodity Fund
2009
2004
2003
Rufus Rankin, DBA
Director of Research,
Equinox Institutional Asset Management, LP
Director of Portfolio Management,
Equinox Fund Management, LLC
Richard Bornhoft
Managing Director – Portfolio Management,
Equinox Fund Management, LLC
The Fund seeks attractive returns
while managing risk and volatility.
INCEPTION DATE
Class 1 and 2: 6/9/2009
Class 3: 2/25/2014
Equinox Frontier Masters Fund
CLASS 1, 2 AND 3
INVESTMENT OBJECTIVE
The Fund seeks capital appreciation
and reduced volatility with the goal
of improving the overall performance
of an investment portfolio.
INCEPTION DATE
Class 1 and 2: 6/9/2009
Class 3: 6/17/2013
Equinox Frontier Long/Short
Commodity Fund
CLASS 1A, 2A AND 3A
INVESTMENT OBJECTIVE
The Fund seeks attractive returns
while managing risk and volatility.
INCEPTION DATE
Class 1a and 2a: 6/9/2009
Class 3a: 6/17/2013
Equinox Funds sales team
1.866.276.6010
For more information
on the Equinox Frontier
Funds, please contact your
Investment Professional or
visit equinoxfunds.com.
AN INVESTMENT IN EQUINOX FRONTIER FUNDS IS SPECULATIVE AND INVOLVES A HIGH DEGREE OF RISK, AND IS NOT SUITABLE FOR ALL
INVESTORS. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THERE IS RISK OF LOSS. YOU CAN LOSE MONEY IN A MANAGED
FUTURES PROGRAM. NO LEVEL OF DIVERSIFICATION CAN GUARANTEE PROFITS OR AVOID LOSSES.
funds, each with unique exposure and
risk/return characteristics. The funds
seek attractive returns while managing
risk and volatility by providing exposure
to managed futures programs with
diverse trading strategies.
DIVERSE RETURN OPPORTUNITIES
The Funds offer profit opportunities in both bull and bear markets due to the ability
to go long (buy) futures positions during rising markets or go short (sell) futures
positions during falling markets. Accessing more than 150 global markets, returns
are generated from up and down price movements in:
• Financial futures (currencies, interest rates, equity indices)
• Physical commodities (metals, energy, livestock and agricultural commodities)
RISK REDUCTION POTENTIAL
The Funds seek diversified exposure within the managed futures asset class as well
as diversification benefits relative to traditional stock and bond portfolios:
• Portfolio volatility is managed by actively allocating to short, medium and long
term managed futures strategies with varying trading approaches
• The funds have historically shown low correlation to equities
EXTENSIVE MANAGED FUTURES INVESTING EXPERIENCE
The Equinox portfolio management team is one of the most experienced
in managing multi-strategy managed futures portfolios, offering over 20 years
of investing experience.
• Over the last decade, Equinox’s Investment Professionals have structured
managed futures portfolios for Public Commodity Pools, Private Funds, and
Mutual Funds.
• When Equinox Frontier Funds
†launched in 2004, it was the first multi-advisor
commodity pool to offer investors daily liquidity in a public fund format.
†
The Equinox Frontier Funds (the Trust) was previously named The Frontier Fund.
Broadly diversified portfolio of managed futures programs with diverse trading strategies
•
Chesapeake Capital Corporation
Diversified
•
Crabel Capital Mgmt, LLC
Crabel Multi-Product
•
Doherty Advisors, LLC
Relative Value
• Emil van Essen, LLC
Multi-Strategy
•
FORT, LP
Fort Global Contrarian
•
H2O AM LLP
Force 10
•
Landmark Trading Company
Landmark Trading
• Quantitative Investment Mgmt, LLC
Global
Managed Futures Strategies in the Portfolio
CLASS 1
CLASS 2
CLASS 3
Commission
Fee based
Units that have reached
the compensation limitations
imposed by FINRA Rule 2310
11
CTAs
EQUINOX FRONTIER
Diversified Fund
•
QuantMetrics Capital Mgmt LLP
Multi-Strategy
•
Quest Partners LLC
Quest Tracker Index
•
Winton Capital Mgmt Ltd
Diversified
Equinox Frontier Funds
BREAKEVEN
ANALYSIS
%
EQUINOX FRONTIER
Diversified Fund
EQUINOX FRONTIERMasters Fund
EQUINOX FRONTIERLong/Short Commodity Fund
CLASS 1 CLASS 2 CLASS 3 CLASS 1 CLASS 2 CLASS 3 CLASS 1A CLASS 2A CLASS 3A
Management fee
2.55 2.55 2.55 3.49 3.49 3.49 5.26 5.26 5.26Service fee
2.00 0.25 0.00 2.00 0.25 0.00 2.00 0.25 0.00Brokerage commissions,
investment and trading fees
2.58 2.58 2.58 2.40 2.40 2.40 3.31 3.31 3.31Incentive fee
0.67 0.12 0.04 0.53 0.09 0.03 0.56 0.10 0.03Less interest income
(1.63) (1.63) (1.63) (1.63) (1.63) (1.63) (1.63) (1.63) (1.63)Due diligence and custodial fees
0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12Redemption fee
1 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Breakeven level
6.29 3.99 3.66 6.91 4.72 4.41 9.62 7.41 7.09Performance is net of fees and expenses. The Equinox Frontier Diversified Fund was previously named the Frontier Diversified Series.
*The inception date for Class 1 and 2 is 6/9/2009. The inception date for Class 3 is 2/25/2014. The Equinox Frontier Funds (the Trust) was previously
named The Frontier Fund. The Trust began trading on 9/24/2004.
The breakeven analysis shows the return the Fund must earn in order to break-even on an investment after one year. As of the 4/30/2015 prospectus.
1
Investors who redeem all or a portion of their class 1 and class 1a units during the first 12 months will be subject to a redemption fee of up to 2.0% of the
purchase price of the units being redeemed. After 12 months, no redemption fee will apply. There are no redemption fees associated with class 2, class 2a,
class 3 or class 3a units.
Annualized Total Returns
QTR
YTD
1
YEAR
3
YEARS
5
YEARS
SINCE
INCEPTION *
CLASS 1
2.52
2.52
-10.05
8.31
2.13
2.51
CLASS 2
2.96
2.96
-8.46
10.23
3.94
4.31
CLASS 3
3.03
3.03
-8.23
--
--
19.33
Fund Performance (%)
E N E R GY
ME
TAL
S
AGS
6
CTAs
•
Chesapeake Capital Corporation
Diversified
•
Emil van Essen, LLC
Multi-Strategy
•
Transtrend B.V.
Diversified Trend - Enhanced Risk/USD
•
Winton Capital Mgmt Ltd
Diversified
Managed Futures Strategies in the Portfolio
CLASS 1
CLASS 2
CLASS 3
Commission
Fee based
Units that have reached
the compensation limitations
imposed by FINRA Rule 2310
Portfolio of managed futures programs with a 90% target exposure
to energy, metals and agricultural commodities
Managed Futures Strategies in the Portfolio
CLASS 1A
CLASS 2A
CLASS 3A
Commission
Fee based
Units that have reached
the compensation limitations
imposed by FINRA Rule 2310
EQUINOX FRONTIER
Long/Short Commodity Fund
•
Chesapeake Capital Corporation
Diversified
•
Emil van Essen, LLC
Multi-Strategy
•
JE Moody & Company
Commodity Relative Value
•
Landmark Trading Company
Landmark Trading
•
Red Oak Commodity Advisors, Inc.
Fundamental Trading
•
Rosetta Capital Mgmt, LLC
Rosetta Trading
AN INVESTMENT IN EQUINOX FRONTIER FUNDS IS SPECULATIVE AND INVOLVES A HIGH DEGREE OF RISK, AND IS NOT SUITABLE FOR ALL
INVESTORS. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THERE IS RISK OF LOSS. YOU CAN LOSE MONEY IN A MANAGED
FUTURES PROGRAM. NO LEVEL OF DIVERSIFICATION CAN GUARANTEE PROFITS OR AVOID LOSSES.
Performance is net of fees and expenses. The Equinox Frontier Long/Short Commodity Fund was previously named the Frontier Long/Short
Commodity Series.
*The inception date for Class 1a and 2a is 6/9/2009. The inception date for Class 3a is 6/17/2013. The Equinox Frontier Funds (the Trust) was previously named
The Frontier Fund. The Trust began trading on 9/24/2004.
Performance is net of fees and expenses. The Equinox Frontier Masters Fund was previously named the Frontier Masters Series.
*The inception date for Class 1 and 2 is 6/9/2009. The inception date for Class 3 is 12/16/2013. The Equinox Frontier Funds (the Trust) was
previously named The Frontier Fund. The Trust began trading on 9/24/2004.
Annualized Total Returns
QTR
YTD
1
YEAR
3
YEARS
5
YEARS
SINCE
INCEPTION *
CLASS 1
5.44
5.44
-7.30
5.41
2.91
2.58
CLASS 2
5.90
5.90
-5.66
7.28
4.73
4.38
CLASS 3
5.97
5.97
-5.42
--
--
16.06
Fund Performance (%)
As of 3/31/2016
Annualized Total Returns
QTR
YTD
1
YEAR
3
YEARS
5
YEARS
SINCE
INCEPTION *
CLASS 1A
-2.33
-2.33
-23.33
-5.01
-6.79
-1.13
CLASS 2A
-1.91
-1.91
-21.97
-3.33
-5.15
0.60
CLASS 3A
-1.85
-1.85
-21.77
--
--
-1.54
Fund Performance (%)
$16,000
$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$0
• $13,407
• $13,344
• $10,416
6/2009
3/2010
12/2010
9/2011
6/2012
3/2013
12/2013
9/2014
6/2015
3/2016
CLASS 2EQUINOX FRONTIER
Diversified Fund
CLASS 2EQUINOX FRONTIER
Masters Fund
CLASS 2AEQUINOX FRONTIER
Long/Short Commodity Fund
Equinox Frontier Funds
Growth of $10,000 Investment Since Inception
Equinox Frontier Funds (6/2009 - 3/2016)
Performance and risk since inception of Equinox Frontier Funds Class 2, Class 2a
1(%)
From 6/9/2009 - 3/31/2016
Q1 2016 YTD 1YEAR2 3 YEARS2 5 YEARS2 CUMULATIVERETURN ANNUALIZED RETURN2
MAXIMUM
DRAWDOWN STANDARD DEVIATION2
CORRELATION VS. MANAGED FUTURES
CLASS 2
2.96
2.96
-8.46
10.23
3.94
33.44
4.31
-24.52
14.08
0.83
CLASS 2
5.90
5.90
-5.66
7.28
4.73
34.07
4.38
-17.75
14.20
0.90
CLASS 2a
-1.91
-1.91
-21.97
-3.33
-5.15
4.16
0.60
-37.22
15.00
0.58
LONG ONLY COMMODITIES
3-2.49
-2.49
-28.67
-24.49
-17.43
-50.00
-9.65
-64.97
19.26
-0.22
MANAGED FUTURES
32.18
2.18
-3.52
3.97
1.91
11.82
1.65
-8.34
6.27
1.00
FIXED INCOME
33.04
3.04
1.99
2.50
3.79
34.73
4.46
-3.66
2.81
0.34
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THERE IS RISK OF LOSS. YOU CAN LOSE MONEY IN A MANAGED
FUTURES PROGRAM. Refer to back page for important risk disclosure.
The performance for Equinox Frontier Diversified Fund, Equinox Frontier Masters Fund, and Equinox Long/Short Commodity Fund is net of fees and charges,
including management fees, incentive fees, brokerage commissions and trading fees and expenses, due diligence and custodial fees and expenses and
service fees payable to selling brokers. The performance data quoted here represents past performance. Current performance may be lower or higher than
the performance data quoted above. Investment return and principal value will fluctuate, so that units, when redeemed, may be worth more or less than their
original cost. Past performance is no guarantee of future results.
1
Class 2 and 2a since inception dates: 6/9/2009. Since inception returns for benchmarks are shown as of 6/1/2009.
2Annualized.
3
Long Only Commodities: S&P GSCI
®Total Return Index; Managed Futures: Barclay BTOP50 Index
®; Fixed Income: Barclays Capital US Aggregate Bond Index
®.
The BTOP50 Index
®does not encompass the whole universe of Commodity Trading Advisors (“CTA”). The CTAs that comprise the index have submitted their
information voluntarily. Investors cannot directly invest in an index and unmanaged index returns do not reflect any fees, expenses or sales charges.
Masters Fund
EQUINOX FRONTIER
Long/Short
Commodity Fund
AN INVESTMENT IN EQUINOX FRONTIER FUNDS IS SPECULATIVE AND INVOLVES A HIGH DEGREE OF RISK, AND IS NOT SUITABLE FOR ALL
INVESTORS. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THERE IS RISK OF LOSS. YOU CAN LOSE MONEY IN A MANAGED
FUTURES PROGRAM. NO LEVEL OF DIVERSIFICATION CAN GUARANTEE PROFITS OR AVOID LOSSES.
Annualized rate of return (AROR) is the geometric average return for a period greater than
or equal to one year, expressed on an annual basis or as a return per year.
The Barclay BTOP50 Index® (BTOP50) seeks to replicate the overall composition of the
managed futures industry with regard to trading style and overall market exposure. The BTOP50 employs a top-down approach in selecting its constituents. The largest investable trading advisor programs, as measured by assets under management, are selected for inclusion in the BTOP50. In each calendar year the selected trading advisors represent, in aggregate, no less than 50% of the investable assets of the Barclay CTA Universe. To be included in the BTOP50, the following criteria must be met: Program must be open for investment; Manager must be willing to provide daily returns; Program must have at least two years of trading activity; Program’s advisor must have at least three years of operating history; The BTOP50’s portfolio will be equally weighted among the selected programs at the beginning of each calendar year and will be rebalanced annually. The index does not encompass the whole universe of CTAs. The CTAs that comprise the index have submitted their information voluntarily. Investors cannot directly invest in an index and unmanaged index returns do not reflect any fees, expenses or sales charges. Managed Futures programs in the BTOP50 may be subject to leverage risk, volatility, and risk of loss that may magnify with the use of leverage. Source: barclayhedge.com.
The Barclays Capital US Aggregate Bond Index® covers the USD-denominated,
investment-grade, fixed-rate, taxable bond market of SEC-registered securities. The index includes bonds from the Treasury, Government-Related, Corporate, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS sectors. The US Aggregate Index is a component of the US Universal Index in its entirety. The index was created in 1986, with index history backfilled to January 1, 1976.
Source: barcap.com.
Correlation is a statistical measure of how two investments move in relation to each other. A
correlation of +1.0 implies that as one investment moves, either up or down, the other investment will move lockstep, in the same direction. A correlation of -1.0 means that if one investment moves in either direction the other investment will move in the opposite direction. A correlation of 0 indicates that the movements of the investments have no correlation; they are completely random.
Discretionary traders is when a discretionary CTA trades futures, forwards and options
contracts without relying on a computer system to make trading decisions. Generally, discretionary managers use a combination of fundamental and technical inputs to make their trading decisions for each market.
Diversified trend-following is a strategy that encompasses all three horizons –
short, medium, and long-term.
A long position refers to the buying of a security with the expectation that the asset will rise in value. There is risk of loss. You can lose money by utilizing a long position. There is no assurance that any investment strategy will be profitable, or that they will be able to avoid losses.
Maximum drawdown is a measure of risk (also known as Worst Historical Loss) that
illustrates the largest peak-to-valley decline, based on monthly rates of return, during a given time period. The Worst Historical Loss depicted in this presentation is not the maximum loss that can occur in an individual’s managed account. There is no guarantee that managed futures or any particular investment will meet its intended objective; accordingly, investors could lose a substantial portion, or even all, of their investment.
The S&P GSCI® Total Return Index is widely recognized as a leading measure of general
price movements and inflation in the world economy. It provides investors with a reliable and publicly available benchmark for investment performance in the commodity markets, and is designed to be a “tradable” index. The index is calculated primarily on a world production-weighted basis and is comprised of the principal physical commodities that are the subject of active, liquid futures markets.
Source: standardandpoors.com.
A short position is a position whereby an investor sells a security which they do not own in anticipation of a price decline. The investor is then required to return an equal number of shares at some point in the future. There is risk of loss. You can lose money by utilizing a short position. There is no assurance that any investment strategy will be profitable, or that they will be able to avoid losses.
Spread/Relative value traders whereby a CTA will seek to take advantage of relative
discrepancies in prices and/or spreads between futures contracts, typically within similar markets, thereby allowing investors to potentially profit from "relative value" of the contracts. For example, buying July 2012 corn futures and selling December 2012 corn futures is a spread trade.
Total cumulative return is the return or yield on an investment or portfolio over
a given period of time, expressed in non-annualized terms.
Trend-following strategy generally seeks to identify the general direction of one or more
global market segments (either up or down), using indicators such as current market prices and moving average prices, and buy or sell investments based on the assessment of these trade signals, as determined before a trade is made. Trend-following generally focuses on the direction an investment or global market segment already has gone and not on the direction it may go.
Spread traders simultaneously purchase of one security and sell a related security. Spread
trades are usually executed with options or futures contracts, but other securities are sometimes used. They are executed to yield an overall net position whose value, called the spread, depends on the difference between the prices of the securities. Spread trades are executed to attempt to profit from the widening or narrowing of the spread, rather than from movement in the prices of the securities directly. Spreads are either “bought” or “sold” depending on whether the trade will profit from the widening or narrowing of the spread.
Standard deviation (Volatility) is a measure of fluctuation in the value of an asset or
investment. Lower volatility improves the stability and lowers the risk of an investment portfolio.
DEFINITIONS OF TERMS AND INDICES
†
