Why Invest in Managed Futures?
Investors have a lot of flexibility in both when they invest or divest as well as how much capital they invest. CTAs have minimum capital requirements for their own portfolio that can be further leveraged up to 3 times based on suitability. Additionally, the RJ OASIS platform offers flexibility with a pooled investment structure for qualified investors.
As regulated entities, CTAs are required to report their performance on a monthly basis. Additionally, track records and business processes are audited. In separately managed accounts, CTAs place trades directly into individual accounts and customers have full access to monitor all trades, calculate gains and losses, view open positions and account value on their daily statement or through the RJO Account Login Internet Inquiry system or through the Access OASIS for more in-depth analysis.
CTAs trade the most liquid, centrally-cleared and exchange-traded global commodity and financial futures markets to protect customers from excess slippage risks that can cause negative returns. Additionally, investors may rescind trading authority at any time and withdraw funds from their account by the next business day after trades settle. Unlike other alternative strategies, there are no lockout periods with a separately Managed Futures account unless specifically indicated in the DDoc which is rare.
Given the range of trading styles and strategies available, investors can select a CTA or mix of CTAs that optimize return given their individual risk tolerance parameters to best compliment their individual portfolio and diversification objectives.
Who Invests in Managed Futures?
Institutional investors have been investing in Managed Futures since the mid-1980s. Since then, assets under management in Managed Futures programs have grown to $200 Billion. Today, a wide range of investors avail themselves of Managed Futures, from retail to high-net worth to institutional investors.
- Family Offices
- Registered Investment Advisors (RIAs)
- Fund of Funds
- Asset Managers
- Public Pension Funds
- Corporate Treasury Departments
- Corporate Pension Funds
- Insurance Companies
- Central Banks
- Sovereign Wealth Funds