Benefits of Managed Accounts

Why Managed Futures? Then answer is simple. According to numerous studies (see below), a portfolio that includes managed futures produces better returns than a portfolio without managed futures, plus decreases overall risk exposure.

What is Managed Futures? At Zaner, it is professional money management by professional advisers. More technically, managed futures provides direct exposure to international financial and non-financial asset sectors while offering (through their ability to easily take both long and short investment positions) a means to gain exposure to risk and return patterns not easily accessible with investment in traditional stock and bond portfolios.

Note: Futures and Forex trading is speculative in nature and involves substantial risk of loss. Past performance is not necessarily indicative of future results.

CBOT's informative brochure on Managed Futures.
Managed Futures are on the rise as an investment choice -- read all about it in this Barclay's Report.
Read why a portfolio including managed futures dominates a portfolio of stocks alone (or stocks and bonds) -- in this
Landmark Study from Harvard University Professor John V. Lintner
According to Burak Cerrahoglu at the Isenberg School of Management at the University of Massachusetts, Managed Futures have grown as individuals have increased their knowledge and their comfort level as to the use of managed futures in their investment portfolios. This article examines the benefits of managed futures as part of an investor's overall asset portfolio.

The individual investors who have the know-how, time, access to information and necessary disposition are highly successful in directing their own futures trading. Amateur traders often lack a definitive game plan, and change their approach midstream. They often make decisions based on rumors, hunches or the opinions of others. The record suggests that only a small percentage of "do-it-yourself" futures traders possess the requisites for success. Studies indicate that somewhere between 66 - 90% lose money.

If you are a qualified investor, managed futures investments may offer several benefits within a well-balanced portfolio. They may provide you with:

The opportunity to balance portfolio volatility risk made possible because of the low to slightly negative correlation of managed futures with equities and bonds.

The potential for enhanced portfolio returns. Adding managed futures to a traditional portfolio improves overall diversification of investments.

The ability to profit in any economic environment. Managed futures trading advisors can take advantage of price trends. They can buy futures positions in anticipation of a rising market or sell futures positions if they anticipate a falling market.

The opportunity to participate easily in global markets. Managed futures accounts can participate in over 50 different markets worldwide. Trading advisors thus have ample opportunity for profit potential and risk reduction among a broad array of non-correlated markets.

The growth in investor demand for managed futures products indicates investor appreciation of the potential benefits of managed futures as well as the benefits that futures/options traders have trading.

Note: Futures and Forex trading is speculative in nature and involves substantial risk of loss. Past performance is not necessarily indicative of future results.

Powerful Studies on Managed Futures Portfolio Impact and Performance

Independent studies and actual experience has shown, futures can increase performance and balance the risk of an overall portfolio. Futures can potentially be the ideal hedge for stocks and bonds. These studies were conducted to specifically examine the effect on managed futures in an overall portfolio. Futures’ ability to enhance returns in an overall stock and bond portfolio was documented by the prestigious investment-banking firm of Goldman Sachs. In a study they conducted covering a 25-year period, they concluded that by allocating only 10% of a securities portfolio to commodities, investors can improve their performance.

Note: Futures trading is speculative in nature and involves substantial risk of loss. Past performance is no guarantee of future results.

The Chicago Board of Trade illustrates in their publication, “Portfolio Diversification Opportunities,” a chart indicating a portfolio with the greatest risk and least amount of returns comprised 55% stocks, 45% bonds, and 0% managed futures. In comparison, the portfolio comprised of 45% stocks, 35% bonds and 20% managed futures had the greatest returns. Actual performance of stocks and managed futures, as illustrated in the CBOT publication, demonstrate how managed futures have remained positive even during some of the stock market’s worst periods of decline! The study is supported by another one that was published by the Chicago Mercantile Exchange which concluded portfolios with as much as 20% of its assets in managed futures yielded up to 50% more returns than stock and bond portfolios, while offering comparable risk.