Diversify beyond the traditional asset classes
Managed Futures are an alternative asset class that has achieved strong performance in both up and down markets, exhibiting low correlation to traditional asset classes, such as stocks, bonds, cash and real estate.
Sources: CME Group Brochure “10 Reasons to Consider Adding Managed Futures to your Portfolio”.
Reduce overall portfolio volatility.
In general, as one asset class goes up, some other asset class goes down. Managed Futures invest across a broad spectrum of asset classes with the goal of achieving solid long-term returns.
Sources: CME Group Brochure “Portfolio Diversification Opportunities”
Increase returns and reduce volatility.
Managed Futures, as well as commodities, when used in conjunction with traditional asset classes, may reduce risk, while at the same time potentially increasing returns.
Returns evident in any kind of economic environment.
Managed Futures may generate returns in bull and bear markets, boasting solid long-term track records despite economic downturns.
Strong performance during stock market declines.
Managed Futures may do well in down markets because they employ short-selling and options strategies that allow them to profit in such markets.
Sources: CME Group Brochure “Portfolio Diversification Opportunities”
The risk of loss in trading commodity futures and options is substantial. Before trading, you should carefully consider your financial position to determine if futures trading is appropriate. When trading futures and/or options, it is possible to lose more than the full value of your account. All funds committed should be risk capital. Past performance is not necessarily indicative of future results.
Successful pension plan sponsors use them
Pension plans have long used Managed Futures to generate returns in excess of the S&P 500.
Sources: CME Group Brochure “Portfolio Diversification Opportunities”
Commodity Trade Advisors (CTA s) and Pool Operators (CPOs) have access to a wide variety of global futures products that are liquid and transparent.
There are more than 150 liquid futures products across the globe, including stock indexes, fixed income, energies, metals, and agricultural products.
CTA /CPO community is regulated and trades on regulated futures exchanges
Trading in a regulated marketplace builds the credibility and trustworthiness of the CTA/CPO community.
Risk management and clearing.
CME Clearing institutes some of the most sophisticated risk management practices in the financial world. As such, it has performed flawlessly during times of economic turbulence. In more than a century, CME Clearing has never experienced a default.
Sources: CME Group Brochure “Portfolio Diversification Opportunities”
Overall financial industry growth has been exceptional
In the last 30 years, assets under management for the Managed Futures industry have grown 800 fold (80,000 percent).*
Sources: CME Group Brochure “Portfolio Diversification Opportunities”
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.
