What Are Managed Futures?
The term Managed Futures describes an industry made up of professional money managers known as commodity trading advisors (CTA's). 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.
Introduction to Managed Futures Video
Managed Futures are an alternative investment asset class that allows investors to simultaneously participate in multiple global market sectors such as currencies, energies, metals, short and long term interest rates, domestic and international stock indices and traditional commodities.
Managed Futures can Diversify and Help Manage Risk
Managed Futures can be a valuable part of an overall asset allocation plan; its purpose is to add portfolio diversification, reduce overall portfolio volatility, and 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 may have less risk than a portfolio of Stocks and Bonds alone.
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» Paragon Investments' Managed Futures Overview
For more information complete our Managed Futures services inquiry form or contact a Paragon Investments Managed Futures Specialist at 888-452-8751 or [email protected].
Additional Considerations for Managed Futures
Managed futures and options accounts may be subject to charges for management and incentive fees beyond typical brokerage fees. Commodity Trading Advisors (CTA's) are required by the CFTC to provide you with a disclosure document prior to opening an account. The disclosure document should be carefully reviewed in order to ensure a full understanding of the principle risk factors and fees charged. Paragon Investments makes no representation of the accuracy or completeness of the returns and performances provided within the CTA’s disclosure document.
Past performance is not necessarily indicative of future results and the risk of loss does exist in futures trading.