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What
are managed Futures?
The
term managed futures describes an industry made up of
professional money managers known as commodity trading
advisors (CTAs). These trading advisors manage client assets
on a discretionary basis using global futures markets as an
investment medium. Trading advisors take positions based on
expected profit potential.
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 a well diversified portfolio. In 2004, it was
estimated that over $130 billion was under management by
trading advisors.
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, investors want greater diversity in
their portfolios. They seek to increase portfolio exposure to
international investments and non-financial sectors, an
objective that is easily accomplished through the use of
global futures markets.
The
benefits of managed futures 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
Visit
our Blue Crown Managed Futures site for more information on
the Blue Crown Trading Program.
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