What are managed futures/why should I use them?
Managed Futures are an alternative investment asset class that allow investors to simultaneously participate in multiple global market sectors such as currencies, energies, metals, short and long term interest rates, domestics and international stock indices and traditional commodities. Managed Futures can be a valuable part of an overall asset allocation plan; their purpose is to add portfolio diversification, potentially reduce overall portfolio volatility and potentially achieve higher overall portfolio performance over time when compared to traditional investment portfolios alone. A study by the Chicago Mercantile Exchange (CME) concluded that a portfolio with 20% Managed Futures has less risk than a portfolio of Stocks and Bonds alone. The major benefits with using managed futures are as follows: diversification beyond stocks and bonds, potential for higher portfolio returns, reduce portfolio volatility risk, access to broader market opportunities, ability to profit in any economi