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.