AGN offers programs from a number of established Commodity Trading Advisors. We are a strong proponent of the use of managed futures as an important part of a balanced asset allocation and work to educate clients on the benefits and risks of managed futures. Contact us for specifics on available CTA products.
What are managed futures?
Managed futures are a highly flexible alternative investment traded on many financial and commodity markets around the world. By broadly diversifying across markets, managed futures may simultaneously profit from price changes in stock indices, treasury futures or bond futures, and currencies, as well as from diverse commodity markets having virtually no correlation to traditional asset classes such as the stock market.
Managed futures are investment products in which professional money managers called Commodity Trading Advisors (“CTAs”) direct investments in the futures markets utilizing futures contracts and/or options on futures. While investment management professionals have been using managed futures for more than 30 years, institutional investors such as corporate and public pension funds, endowments and banks have more recently begun to employ managed futures in pursuit of a well-diversified portfolio.
Why has there been such substantial growth in managed futures?
Recent growth in managed futures has been substantial. According to Barclay Hedge, assets under management for managed futures are $355.1 billion through the fourth quarter of 2018. Managed futures have historically been uncorrelated with the returns in traditional asset classes, potentially enabling them to enhance returns as well as lower overall volatility.
The benefits of managed futures within a well-balanced portfolio include:
- Potential to lower overall portfolio risk
- Potential opportunity to enhance overall portfolio returns
- Broad diversification opportunities
Disclaimer: Please be advised that trading futures and options involve substantial risk of loss and is not suitable for all investors. Commodity Trading Advisor (CTA) commissions can be substantial and may eliminate any profits or increase losses in your trading account. Managed futures are designed for investors that are able to bear the loss of more than their entire investment. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. An investor must read and understand the CTA’s current disclosure document before investing. Past performance is not necessarily indicative of future results.