v3.25.1
Derivative Instruments and Hedging Activities
 3 Months Ended
Mar. 31, 2025
The Series of Frontier Funds [Member]  
Derivative Instruments and Hedging Activities [Line Items]  
Derivative Instruments and Hedging Activities

8. Derivative Instruments and Hedging Activities

 

The Series’ primary business is to engage in speculative trading of a diversified portfolio of futures, forwards (including interbank foreign currencies), options contracts and other derivative instruments (including swap contracts). The Series do not enter into or hold positions for hedging purposes as defined under ASC 815, Derivatives and Hedging (“ASC 815”). The detail of the fair value of the Series’ derivatives by instrument types as of March 31, 2025 and 2024 is included in the consolidated condensed schedules of investments. See Note 4 for further disclosure related to each Series’ position in swap contracts.

 

The following tables summarize the monthly averages of futures contracts bought and sold for each respective Series of the Trust:

 

For the Three Months Ended March 31, 2025

 

Monthly average contracts:

 

   Bought   Sold 
           
Frontier Balanced Fund   
    -
    
    -
 

 

For the Three Months Ended March 31, 2024

 

Monthly average contracts:

 

   Bought   Sold 
           
Frontier Balanced Fund   
    -
    
    -
 

 

The following tables summarize the consolidated trading revenues for the three months ended March 31, 2025 and 2024 by sector:

 

Realized Trading Revenue from Futures, Forwards and Options

for the Three Months Ended March 31, 2025

 

Type of contract  Frontier Balanced
Fund		 
     
Agriculturals  $
-
 
Currencies   
-
 
Energies   
-
 
Interest rates   
-
 
Metals   
-
 
Stock indices   
-
 
Realized trading income/(loss)(1)  $
            -
 

Realized Trading Revenue from Futures, Forwards and Options

for the Three Months Ended March 31, 2024

 

Type of contract  Frontier Balanced
Fund		 
     
Agriculturals  $
-
 
Currencies   
-
 
Energies   
-
 
Interest rates   
-
 
Metals   
-
 
Stock indices   
-
 
Realized trading income/(loss)(1)  $
            -
 

 

 Net Change in Open Trade Equity from Futures, Forwards and Options

for the Three Months Ended March 31, 2025

 

Type of contract  Frontier Balanced
Fund		 
     
Agriculturals  $
-
 
Currencies   
-
 
Energies   
-
 
Interest rates   
-
 
Metals   
-
 
Stock indices   
-
 
Change in unrealized trading income/(loss)(1)  $
            -
 

 

Net Change in Open Trade Equity from Futures, Forwards and Options

for the Three Months Ended March 31, 2024

 

Type of contract  Frontier Balanced
Fund		 
     
Agriculturals  $
            -
 
Currencies   
-
 
Energies   
-
 
Interest rates   
-
 
Metals   
-
 
Stock indices   
-
 
Change in unrealized trading income/(loss)(1)  $
-
 

 

(1) Amounts recorded in the consolidated statements of operations under net change in open trade equity/(deficit).

Certain financial instruments and derivative instruments are eligible for offset in the consolidated statements of financial condition under GAAP. The Series’ open trade equity/(deficit), options written, and receivables from futures commissions merchants (each, an “FCM”) are subject to master netting arrangements and collateral arrangements and meet the GAAP guidance to qualify for offset. A master netting arrangement with a counterparty creates a right of offset for amounts due to and from that same counterparty that is enforceable in the event of a default or bankruptcy. The Series’ policy is to recognize amounts subject to master netting arrangements on a net basis on the consolidated statements of financial condition.

 

The following tables present gross and net information about the Series’ assets and liabilities subject to master netting arrangements as disclosed on the consolidated statements of financial condition as of March 31, 2025 and December 31, 2024.

 

As of March 31, 2025

 

Frontier Balanced Fund  Gross Amounts of
recognized Derivative
Assets/Liabilities		   Gross Amounts
offset in the
Consolidated
Statements of
Financial Condition		   Net Amounts
Presented in the
Consolidated
Statements of
Financial Condition		 
Open Trade Equity/(Deficit)  $
   -
   $
           -
   $
           -
 

 

As of December 31, 2024

 

Frontier Balanced Fund  Gross Amounts of
recognized Derivative
Assets		   Gross Amounts
offset in the
Consolidated
Statements of
Financial Condition		   Net Amounts
Presented in the
Consolidated
Statements of
Financial Condition		 
Open Trade Equity/(Deficit)  $
     -
   $
        -
   $
        -
 
Frontier Funds [Member]  
Derivative Instruments and Hedging Activities [Line Items]  
Derivative Instruments and Hedging Activities

8. Derivative Instruments and Hedging Activities

 

The Trust’s primary business is to engage in speculative trading of a diversified portfolio of futures, forwards (including interbank foreign currencies), options contracts and other derivative instruments (including swap contracts). The Trust does not enter into or hold positions for hedging purposes as defined under ASC 815. The detail of the fair value of the Trust’s derivatives by instrument types as of March 31, 2025 and 2024 is included in the combined consolidated condensed schedules of investments. See Note 4 for further disclosure related to the Trust’s positions in swap contracts. There are embedded management fees in transacting these swaps ranging from 1% to 1.5% based on fair value of swaps and the embedded incentive fees ranging from 15% to 25% based on net new trading profits on swaps.

 

For the three months ended March 31, 2025 and 2024, the monthly average of futures, forwards and options contracts bought was approximately 0, and 0, respectively and the monthly average of futures, forwards, and options contracts sold was approximately 0, and 0, respectively.

 

The following tables summarize the Trust’s combined consolidated trading revenues for the three months ended March 31, 2025 and 2024 by contract type:

 

Realized Trading Revenue from Futures, Forwards and Options
for the Three Months Ended March 31, 2025

 

Type of contract    
     
Agriculturals  $
-
 
Currencies   
-
 
Energies   
-
 
Interest rates   
-
 
Metals   
-
 
Stock indices   
-
 
Realized trading income/(loss)(1)  $
-
 

 

Realized Trading Revenue from Futures, Forwards and Options
for the Three Months Ended March 31, 2024

 

Type of contract    
     
Agriculturals  $
-
 
Currencies   
-
 
Energies   
-
 
Interest rates   
-
 
Metals   
-
 
Stock indices   
-
 
Realized trading income/(loss)(1)  $
-
 

 

(1) Amounts recorded in the combined consolidated statements of operations under net realized gain(loss) on futures forwards and options.

Net Change in Open Trade Equity from Futures, Forwards and Options
for the Three Months Ended March 31, 2025

 

Type of contract    
     
Agriculturals  $
-
 
Currencies   
-
 
Energies   
-
 
Interest rates   
-
 
Metals   
-
 
Stock indices   
-
 
Change in unrealized trading income/(loss)(1)  $
-
 

 

Net Change in Open Trade Equity from Futures, Forwards and Options
for the Three Months Ended March 31, 2024

 

Type of contract    
     
Agriculturals  $
-
 
Currencies   
-
 
Energies   
-
 
Interest rates   
-
 
Metals   
-
 
Stock indices   
-
 
Change in unrealized trading income/(loss)(1)  $
-
 

 

(1)Amounts recorded in the combined consolidated statements of operations under net change in open trade equity/(deficit).

 

Certain financial instruments and derivative instruments are eligible for offset in the combined consolidated statements of financial condition under GAAP. The Trust’s open trade equity/(deficit), options written, and receivables from futures commission merchants (each, an “FCM”) are subject to master netting arrangements and collateral arrangements and meet the GAAP guidance to qualify for offset. A master netting arrangement with a counterparty creates a right of offset for amounts due to and from that same counterparty that is enforceable in the event of a default or bankruptcy. The Trust’s policy is to recognize amounts subject to master netting arrangements on a net basis on the combined consolidated statements of financial condition.

The following tables present gross and net information about the Trust’s assets and liabilities subject the master netting arrangements as disclosed on the combined consolidated statements of financial condition as of March 31, 2025 and December 31, 2024:

 

As of March 31, 2025

 

   Gross
Amounts of
recognized
Derivative
Assets		   Gross
Amounts
offset in the
Statements of
Financial
Condition		   Net Amounts
Presented
in the
Statements of
Financial
Condition		 
                
                
Open Trade Equity/(Deficit)  $
     -
   $
      -
   $
     -
 

 

As of December 31, 2024

  

   Gross
Amounts of
recognized
Derivative
Assets		   Gross
Amounts
offset in the
Statements of
Financial
Condition		   Net Amounts
Presented
in the
Statements of
Financial
Condition		 
                
                
Open Trade Equity/(Deficit)  $
        -
   $
        -
   $
        -