Why Managed Futures?
Benefits of Managed Futures
Broad Diversification Opportunities
Managed futures are an alternative asset class that offers highly diverse global investment opportunities for institutional and individual investors. Through managed futures programs, CTAs provide investors with investment options that are traded on over 150 global financial and commodity markets.
Opportunity for reduced portfolio risk
Because of the inherent diversity, managed futures offer the potential for lower overall volatility in a balanced investment portfolio. Investment in diverse global futures markets offer the opportunity to reduce the volatility risk of a portfolio with traditional asset classes, such as stocks and bonds, with which managed futures have low long-term correlation.
Potential for enhanced portfolio returns
Managed futures programs’ diversity and potential for reduced investment volatility contributes to their capacity to boost overall portfolio gains. When used in conjunction with other traditional asset classes, managed futures may reduce risk and potentially increase returns.
Returns in any economic environment
Managed futures may generate returns in bull and bear markets, boosting long-term track records despite economic downturns. Moreover, since managed futures portfolio managers (CTAs) can go long and short in all types of markets globally, managed futures have historically performed well in market conditions that are adverse for traditional asset classes like stocks and bonds.
Liquidity, transparency and control
The transparency of managed futures is unparalleled in the realm of alternative investments. CTA’s trading decisions are fully reflected in customers’ account statements and are settled on a daily basis. Trading positions are generally held in hundreds of liquid futures products in interest rates, stock indexes, FX and commodities. Investors have the ability to monitor daily trading activities in their accounts and request liquidate of all positions on a day’s notice to withdraw funds as necessity.
Highly regulated
The CFTC and the NFA are the two major regulatory agencies involved in keeping the US based managed futures industry credible and trustworthy. With few exceptions, all CTAs must register with the CFTC and become a member of the NFA. The CFTC has the power to bring criminal charges against those who engage in fraudulent conduct or abusive practices. In addition to its monitoring function, the NFA provides rules, regulations and services that help safeguard market integrity.
Broad Diversification Opportunities
Managed futures are an alternative asset class that offers highly diverse global investment opportunities for institutional and individual investors. Through managed futures programs, CTAs provide investors with investment options that are traded on over 150 global financial and commodity markets.
Opportunity for reduced portfolio risk
Because of the inherent diversity, managed futures offer the potential for lower overall volatility in a balanced investment portfolio. Investment in diverse global futures markets offer the opportunity to reduce the volatility risk of a portfolio with traditional asset classes, such as stocks and bonds, with which managed futures have low long-term correlation.
Potential for enhanced portfolio returns
Managed futures programs’ diversity and potential for reduced investment volatility contributes to their capacity to boost overall portfolio gains. When used in conjunction with other traditional asset classes, managed futures may reduce risk and potentially increase returns.
Returns in any economic environment
Managed futures may generate returns in bull and bear markets, boosting long-term track records despite economic downturns. Moreover, since managed futures portfolio managers (CTAs) can go long and short in all types of markets globally, managed futures have historically performed well in market conditions that are adverse for traditional asset classes like stocks and bonds.
Liquidity, transparency and control
The transparency of managed futures is unparalleled in the realm of alternative investments. CTA’s trading decisions are fully reflected in customers’ account statements and are settled on a daily basis. Trading positions are generally held in hundreds of liquid futures products in interest rates, stock indexes, FX and commodities. Investors have the ability to monitor daily trading activities in their accounts and request liquidate of all positions on a day’s notice to withdraw funds as necessity.
Highly regulated
The CFTC and the NFA are the two major regulatory agencies involved in keeping the US based managed futures industry credible and trustworthy. With few exceptions, all CTAs must register with the CFTC and become a member of the NFA. The CFTC has the power to bring criminal charges against those who engage in fraudulent conduct or abusive practices. In addition to its monitoring function, the NFA provides rules, regulations and services that help safeguard market integrity.
Past performance is not necessarily indicative of future results. Trading futures contracts or options on futures contracts involves substantial risk of loss and is not suitable for all investors. You should read the Risk Disclosure available on our website.
ECG Futures is a registered ‘dba’ of Essence Capital Group, Inc
Registered Independent Introducing Broker | Registered CFTC | NFA Member | Since 2007
Past performance is not necessarily indicative of future results. Trading commodity futures and options involves substantial risk of loss and is not suitable for all investors.
Please read our Risk Disclosure, Privacy Policy, Legal Notice and Cookies Policy.