Overview Of Managed Futures

Investment management professionals have been using managed futures for more than 30 years. More recently, institutional investors such as corporate and public pension funds, endowments, trusts and banks have made managed futures part of a well-diversified portfolio. According to the Barclay Group, a leading provider of Managed Futures data, money under management in Managed Futures in the 4th quarter of 2007 was $205.3 billion, up from $184.8 billion the previous quarter.

The growing use of managed futures by these investors may be due to the increased institutional use of the futures markets. Portfolio managers have become more familiar with futures contracts. Additionally, investors want greater diversity in their portfolios. They seek to increase portfolio exposure to international investments and non-financial sectors, an objective that is easily accomplished through the use of global futures markets.

The term "managed futures" describes an industry made up of professional money managers known as Commodity Trading Advisors (CTAs). 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.

This information was copied from Portfolio Diversification Opportunities printed by the Chicago Board of Trade. @ 1996,1999,2002,2003