Managed Futures
This term describes an industry made up of professional money managers known as Commodity Trading Advisors (CTAs).
With practically a zero-correlation with stocks, CTAs can add profound diversification to an overall investment portfolio by using global futures markets as an investment medium, taking positions based on expected profit potential.
Knowledgeable investment professionals have been using managed futures for more than 30 years. Institutional Investors, such as corporate and public pension funds, endowments, trusts and banks, have made managed futures part of a well-diversified portfolio.
Managed Futures as an asset class are increasingly being recognized as an important investment alternative that can potentially enhance returns and lower the overall volatility of a portfolio.
CTAs are regulated by the National Futures Association and the Commodity Futures Trading Commission. All stated rates of return must meet stringent regulatory standards.
The primary sources of income for most CTAs are management fees and incentive fees that can only be earned by producing ongoing new profits for a customer’s account (net of all costs).
As of 4th Quarter 2010, it is estimated that over $267.6 billion dollars was under management by trading advisors.*
Source www.BarclayHedge.com. The adequacy, accuracy, or completeness of the data is not verified by Barclays or the firm. The performance is voluntarily submitted by various CTA’s and is not inclusive of performance from all CTA’s. Past performance is not necessarily indicative of future results.
