Managed futures is an investment sector made up of professional money managers that manage assets on behalf of their clients, trading in the global futures and options on futures markets. These money managers are referred to as Commodity Trading Advisors, or CTAs. Using the global futures markets, they implement their systems to take positions based on expected profit potential.
Managed futures investments have been used by individual investors for more than 25 years. More recently, institutional investors such as pension funds, banks, endowments, trusts and family offices have incorporated managed futures as one segment of a well-diversified portfolio.
As an asset class, managed futures is increasingly being recognized as an important investment alternative that may potentially enhance the returns and lower the overall volatility of a diversified investment portfolio.
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Managed Futures Assets
(January 1980 - December 2005) |
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Source: The Barclay Group
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