Managed Futures Funds
What are managed futures?
The term managed futures describes an industry composed of experienced, professional money managers commonly known as Commodity Trading Advisors (CTAs). These CTAs manage client assets on a discretionary basis taking positions with the potential to benefit from the rise and/or fall of various currencies and commodities (i.e. agricultural, energy, metals), stock index and interest-rate contracts that trade on over 150 different futures and commodity markets around the world. Many managed futures funds further diversify by using several trading advisors (multi-manager) with different trading approaches as opposed to a single manager. JP Turner has partnered with many different managed futures funds; some have a minimum investment as low as $5,000. J.P. Turner offers access to both single and multi-manager managed futures investment strategies. As an independent firm we offer no proprietary managed futures funds. We carefully screen investment opportunities and conduct extensive due diligence on the investment strategies we make available to you. We seek investment vehicles designed to optimize returns while paying special attention to the inherent risk that comes with investing in the futures markets.
We offer access to managed futures investment products for both accredited and non-accredited investors. J.P. Turner's financial representatives can create a comprehensive investment strategy employing such products based on your long term investment objectives and risk tolerance.
Why managed futures?
Managed futures is a distinct asset class dating back to the early 1970’s. It is a highly regulated asset class.
Managed futures have been used by investment management professionals for more than 30 years. High Net Worth investors looking to maximize portfolio exposure may use managed futures as an integral component of a well diversified portfolio. With the ability to go both long and short, managed futures funds are highly flexible financial instruments with the potential to profit from rising and falling markets. Moreover, managed future funds have virtually no correlation to traditional asset classes (stocks and bonds) enabling them to potentially enhance returns as well as lower overall portfolio volatility. Recent growth in managed futures has been substantial. In 2002, it was estimated that more than $45 billion was under management by managed futures trading advisors. By the end of 2009, that number had grown to more than $225 billion.
Potential Benefits of managed futures within a balanced portfolio include:
1. Potential to lower overall portfolio risk
2. Potential opportunity to enhance overall portfolio returns
3. Increase diversification opportunities
4. Potential opportunity to profit in both rising and falling economic environments
5. Lower overall portfolio correlation
Ask your J.P. Turner financial advisor about diversifying your portfolio using managed futures funds.
Risks of Managed Futures Funds
Investing in managed futures is speculative and investors must be prepared to lose all or a substantial amount of their investment;
Returns will fluctuate;
Most managed futures funds are highly leveraged which may potentially provide higher return, but also increases the overall risk and volatility of the investment;
Managed futures funds are less liquid than stocks and bonds, with redemptions typically limited to monthly intervals;
Costs and expenses in managed futures funds are significantly higher than mutual funds and other investment vehicles; and
Investors in managed futures funds realize taxable gains and losses in the year in which they occur and proper consideration should be given to the tax implications of an investment. J.P. Turner & Company, LLC does not provide tax or legal advice; we urge investors to seek appropriate tax and/or legal counsel before making investments.
JPT032210-3850
