Managed Futures: Alternative Investing

Managed futures are run by professional money managers, known as Commodity Trading Advisors (CTAs), who manage client assets on global futures markets. CTAs invest in a wide variety of product types: Commodities such as Corn or Sugar; Metals such as Gold or Copper; Fixed Income products such as US Treasury Bonds or UK Gilts; Equity Indices such as the S&P 500 or Nikkei 225, and Foreign Exchange contracts such as Australian Dollar/US Dollar or Euro/Japanese Yen.

Benefits of managed futures

  1. Transparency – Managed futures strategies are based on exchange-traded futures markets, allowing for real-time access to market prices, reporting and analytics including on the public websites of futures exchanges. Daily statements reflect the market value of your managed accounts allowing you to track and see every trade.
  2. Diversification – Managed futures are highly flexible financial instruments traded on many regulated financial and commodity markets around the world. By broadly diversifying across global markets, managed futures can simultaneously profit from price changes in stock, bond, currency and money markets, as well as from diverse commodity markets having virtually no correlation to traditional asset classes such as stocks and bonds.
  3. Potential to profit in a variety of economic environments – Managed futures are highly flexible financial instruments traded on many regulated financial and commodity markets around the world. By broadly diversifying across global markets, managed futures can simultaneously profit from price changes in stock, bond, currency and money markets, as well as from diverse commodity markets having virtually no correlation to traditional asset classes such as stocks and bonds.
  4. Managed account structure – Unlike a hedge fund, CTA managed futures strategies are set-up in accounts in your name and traded on your behalf. This provides you with access to all statements and trading information directly from the clearing firm. Unlike most hedge funds which have a lock-up period, futures accounts allow you to liquidate your account and receive your funds in as little as two business days.

Managed futures investing and program selection

efutures helps investors connect with CTAs that align with individual investor needs and requirements, including:

  • Risk — what level of risk are you willing to tolerate for a potential return?
  • Strategy — what types of strategies are a fit for you?
  • Amount to invest — develop a portfolio based on the amount to be invested.

Some of the criteria we use to review managed futures strategies include: overall strategy, manager experience, drawdowns, volatility, assets under management (AUM), minimum investment, track record, markets traded, and margin-to-equity ratio.

Managed futures can even be utilized in an IRA account structure. Learn more about futures and IRAs.

Get started with managed futures

Have questions? Learn more about managed futures by speaking with a specialist. Contact us online to request a consultation or call 800.437.7751.

We also invite you to learn more about managed futures by viewing the resources below and to sign up for our managed futures database to research strategies on your own.