Key Takeaways
- • Metori, a Paris-based CTA boutique, has expanded its trend-following strategy menu to include Chinese futures markets, now offering investors exposure options with commodities, without commodities, and dedicated Chinese futures strategies.
- • The firm trades 42 Chinese futures contracts across its dedicated programs (up from 34 previously), providing access to liquid markets listed on exchanges such as Dalian, with separate offerings available for onshore Chinese investors.
- • Metori's Epsilon Diversified strategy resumed commodities trading in October 2021 after a seven-year hiatus, initially for a U.S. outsourced Chief Investment Officer (OCIO) mandate; this separately managed account is being migrated to an offshore open-ended fund to broaden investor access.
- • The lack of synchronization between Chinese and global futures markets increases diversification benefits for investors, according to Nicolas Gaussel, CEO and co-CIO, positioning Chinese exposure as a distinct risk factor alongside traditional global markets.
- • The expansion reflects regulatory liberalization in China's futures markets, allowing foreign CTAs to access previously restricted commodity and financial futures, while Metori maintains a discipline of trading only liquid futures contracts.
Summary
Metori Capital Management has broadened its Commodity Trading Advisor (CTA) product suite to capitalize on expanded access to Chinese futures markets, marking a strategic pivot toward geographic diversification for institutional investors seeking systematic trend-following exposure. The Paris-based boutique now offers investors multiple pathways to access its flagship trend-following approach: strategies excluding commodities entirely, strategies incorporating commodities, and dedicated Chinese commodity futures exposure. For onshore Chinese investors, Metori operates standalone strategies focused exclusively on Chinese futures markets.
The expansion of Chinese futures access represents a return to Metori's roots for commodity trading. The firm's Epsilon strategy, launched in 2012, originally included commodities exposure. However, in February 2014, Metori removed commodity exposure from its Amundi Metori Epsilon Global Trends Fund (one of the oldest and largest UCITS-compliant CTAs) due to two constraints: new UCITS regulations that preclude direct commodity investment and European investor preference for commodity-free strategies. The reintroduction of commodities began in October 2021 through the Epsilon Diversified strategy, initially deployed as a separately managed account for a large U.S. OCIO mandate. This strategy is now transitioning to an offshore open-ended fund structure, expanding accessibility to a broader institutional investor base.
Metori's dedicated Chinese program, branded China Trend Opportunities, currently trades 42 Chinese futures contracts—an increase from 34 contracts tracked a few years prior—all listed on liquid exchanges. The firm has also integrated selected Chinese commodity futures into its offshore fund offerings. According to Nicolas Gaussel, CEO and co-CIO, the lack of synchronization between Chinese and global futures markets generates meaningful diversification benefits, positioning Chinese market exposure as a distinct return driver independent of traditional global market correlations.
The strategic expansion aligns with gradual regulatory liberalization in China's futures markets. Historically, most commodity and financial futures in China were accessible only to domestic entities and individuals, effectively blocking foreign CTAs from participation. Recent regulatory changes, including expansions by the China Securities Regulatory Commission permitting overseas investor access to additional varieties of futures and options, have unlocked this market opportunity. Metori's approach emphasizes liquidity discipline, trading only liquid futures contracts rather than exotic or over-the-counter instruments, maintaining consistency with its institutional risk management standards.
The expansion of Chinese futures access represents a return to Metori's roots for commodity trading. The firm's Epsilon strategy, launched in 2012, originally included commodities exposure. However, in February 2014, Metori removed commodity exposure from its Amundi Metori Epsilon Global Trends Fund (one of the oldest and largest UCITS-compliant CTAs) due to two constraints: new UCITS regulations that preclude direct commodity investment and European investor preference for commodity-free strategies. The reintroduction of commodities began in October 2021 through the Epsilon Diversified strategy, initially deployed as a separately managed account for a large U.S. OCIO mandate. This strategy is now transitioning to an offshore open-ended fund structure, expanding accessibility to a broader institutional investor base.
Metori's dedicated Chinese program, branded China Trend Opportunities, currently trades 42 Chinese futures contracts—an increase from 34 contracts tracked a few years prior—all listed on liquid exchanges. The firm has also integrated selected Chinese commodity futures into its offshore fund offerings. According to Nicolas Gaussel, CEO and co-CIO, the lack of synchronization between Chinese and global futures markets generates meaningful diversification benefits, positioning Chinese market exposure as a distinct return driver independent of traditional global market correlations.
The strategic expansion aligns with gradual regulatory liberalization in China's futures markets. Historically, most commodity and financial futures in China were accessible only to domestic entities and individuals, effectively blocking foreign CTAs from participation. Recent regulatory changes, including expansions by the China Securities Regulatory Commission permitting overseas investor access to additional varieties of futures and options, have unlocked this market opportunity. Metori's approach emphasizes liquidity discipline, trading only liquid futures contracts rather than exotic or over-the-counter instruments, maintaining consistency with its institutional risk management standards.
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