Go placidly amid the noise and haste...
What are Managed Futures?
The term "managed futures" refers to a 30-year-old industry made up of experienced, professional money managers known as "commodity trading advisors" (CTAs), who manage investors' assets using investments in the commodities and futures markets, just as a stock mutual fund manager would invest his/her clients' assets in a variety of different stocks. CTAs generally manage their clients' assets using a proprietary trading system, or a discretionary method, that may involve going long or short in futures contracts in areas such as metals (gold, silver), energies (crude oil, natural gas), grains (soybeans, corn, wheat), equity indices (S&P futures, NASDAQ 100 futures), soft commodities (cotton, cocoa, coffee, sugar) as well as foreign currency and U.S government bond futures.
What are the Benefits of Managed Futures?
1. Opportunity to balance portfolio volatility risk.
Managed Futures exhibit low to slightly negative correlation of with stocks and bonds.
Benefit: Investors may experience smoother, less volatile returns in their portfolio.
2. Potential to enhance portfolio returns.
Managed Futures have historically performed well during periods in which traditional stock and bond investments have shown poor returns.
Benefit: Investors may experience superior year-over-year returns in their portfolio.
3. Ability to profit in any economic environment.
Managed futures can take advantage of both rising and falling price trends. They can buy (go Long) in rising markets, or sell (go Short) in falling markets.
Benefit: Investors can profit in both Bull and Bear markets.
4. Opportunity to easily participate in global market investments.
Managed futures participate in many different markets worldwide, including: stock indices, financial instruments, agricultural and tropical products, precious and nonferrous metals, currencies and energy products.
Benefit: Investors have opportunity for profit potential and risk reduction among a broad array of non- correlated markets.
