What Are Managed Futures?

Investment management professionals have been using Managed Futures for more than 30 years. More recently, institutional investors such as corporate and public pension funds, endowments and trusts, and banks have made Managed Futures part of well-diversified portfolios. In 2002, it was estimated that over $45 billion was under management or being directed by Commodity Trading Advisors. Surely those numbers are even higher today.

The growing use of Managed Futures by these investors may be due to increased institutional use of the futures markets. Portfolio managers have become more familiar with futures contracts. Additionally, individual investors now understand the value of greater diversity in their portfolios more than ever. They seek to increase portfolio exposure to international investments and non-financial sectors, an objective that is easily accomplished through the use of the global futures markets.

The term Managed Futures describes an industry made up of professional money managers known as Commodity Trading Advisors, (CTA’S). These trading advisors manage or direct client’s assets using global futures markets as an investment medium. Commodity Trading Advisors take positions in the Futures Markets using various trading strategies based on expected profit potential.

Managed Futures Trading Programs, by their very nature, are diversified investment opportunities. Commodity Trading Advisors have the ability to trade in over 150 different markets worldwide.

This information was copied from Portfolio Diversification Opportunites printed by the Chicago Board of Trade

The benefits of a Managed Futures Trading Program within a well-balanced portfolio include:

• opportunity for reduced portfolio volatility risk
• potential for enhanced portfolio returns
• ability to profit in any economic environment
• opportunity to participate easily in global markets

2005 Special Report on Stock Market (11 pgs.)
This report talks about the past present and future of the stock market.

Benefits of Managed Futures (13 pgs.)
This is an updated report outhlining the benefits of adding managed futures to your investment portfolio.

Modern Portfolio Theory Dynamic Diversification For Today's Investor
This brochure has been described as a "one-book library" on professionally managed futures. After reading this brochure, you'll probably be better informed about professionally managed futures than if you spent $1,000 for a weekend investment seminar! [Download .PDF]

Commodity Trading Advisor Profiles