Managed Futures Accounts
The futures industry defines managed futures as professional money managers or commodity trading advisors ("CTAs") that manage client assets based on manager skill using global futures markets as an investment medium. Investors can allocate capital across multiple programs to create a custom portfolio.
The Benefits of Managed Futures include:
- Non-correlated to traditional stocks and bonds— As an alternative asset class, managed futures provides an opportunity to profit in both rising and falling markets and diversify a traditional stock and bond portfolio.
- Diversity— Managed Futures include an investment in a broad
spectrum of market sectors; commodities, financials and
equities across global markets with the goal of achieving solid
long-term returns.
- Professional Management— An investment in managed futures can be through an individually managed account or by investing in an alternative investment product. Either type of investment is traded by a skilled money manager, eliminating the necessity to learn how to trade certain markets.
- Liquidity / Transparency— Individual managed accounts provide for daily liquidity and transparency and most fund structures typically have monthly or quarterly liquidity and limited transparency.
Individually Managed Accounts
Individually managed accounts are trading accounts opened in the client's name which are managed by a commodity trading advisor (CTA). The client has complete transparency to all positions and activity in the account which is held at a Futures Commission Merchant (FCM).
Fund Structures
Fund structures are designed to aggregate investors' assets into one pool of money. The investor becomes a partner or member of the fund and participates in the overall performance based on their capital contribution. Funds can be structured with single strategy, multi-strategy or multi-advisor programs and may have CTA's that cannot be accessed through an individual managed account.
Why Price Futures Group for Managed Futures Accounts?
Since the late 80's, Price Futures Group has been a strong advocate of investing in managed futures. As the managed futures industry began to evolve from individual managed accounts to alternative investment products (fund structures), Price Futures Group also evolved by creating affiliate companies that broadened the focus of this asset class.
In 1999, Price Asset Management was formed to develop alternative investment products complimenting the individual managed accounts offered through Price Futures Group - providing financial advisors, institutional investors, and family offices with customized services specific to these needs and providing Price Futures Group with an even stronger customer base.
The combined resources of Price Futures Group and Price Asset Management unite to provide their clients a custom managed futures service.
