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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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