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Managed futures

Managed futures managers (also known as commodity trading advisors or CTAs) aim to profit from upward and downward price trends in global futures markets.

Managed futures managers are able to capture the trends in prices by taking net long or short positions, with market exposures gained by standardised futures contracts traded on highly regulated, liquid exchanges around the world. Managers can then build or reduce these positions as trends intensify or weaken. 

Illust.: Managed futures – capturing the trends

Managed futures trading strategies

  • Discretionary: Discretionary managers rely on the judgement of the manager and their expertise in a particular market to make investment decisions.
  • Systematic: Systematic managers use historical technical and fundamental data to anticipate future price movements. Such strategies rely heavily on computer generated, technical trading signals.

Benefits of managed futures

One of the main benefits of managed futures is that they can offer diversification potential due to their low correlation to traditional investments.

In fact, they often exhibit negative correlation when equity markets trend lower, so an allocation to managed futures can counter, rather than just cushion, the impact of an extended bear market.

Illust.: Managed futures – Sub-strategies

As with any investment, funds can lose money as well as profit. Investors should always seek professional advice before considering any investment.

Please note some of these investment solutions and/or strategies may not be offered in your jurisdiction or may significantly differ from those offered in your jurisdiction.

Managed futures
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