What are Managed Futures?

Managed Futures GuideManaged Futures is an alternative investment option that allows investors to allocate money to professional futures traders called Commodity Trading Advisors (CTAs). The futures markets are leveraged and can offer capital efficiency. Additionally, the futures markets include multiple global market sectors such as Foreign Exchange, Energies, Metals, Interest Rates, Equity Indices, and Commodities.

Managed Futures provide returns distinct from the equity and bond markets primarily due to their ability to participate in both upside and/or downside movements in bull and bear markets. These opportunities are not available to traditional stock and bond portfolios.

Why Invest in Managed Futures?

  • Accessibility
    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.
  • Transparency
    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 their account.
  • Liquidity
    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.
  • Variety
    Given the range of trading styles and strategies available, investors can select a CTA or mix of CTAs that optimize return.

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.

Managed Futures Growth

  • Investors
    • Individuals
    • Family Offices
    • Registered Investment Advisors (RIAs)
    • Fund of Funds
  • Asset Managers
    • Public Pension Funds
    • Endowments
    • Foundations
  • Companies
    • Corporate Treasury Departments
    • Corporate Pension Funds
    • Insurance Companies
  • Governments
    • Central Banks
    • Sovereign Wealth Funds


Managed Futures Sample Portfolio

RJO Futures | 222 South Riverside Plaza, Suite 1200 | Chicago, Illinois 60606 | United States
800.441.1616 | 312.373.5478

The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that RJO Futures believes to be reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgement at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.

This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.

Distribution in some jurisdictions may be prohibited or restricted by law. Persons in possession of this communication indirectly should inform themselves about and observe any such prohibition or restrictions. To the extent that you have received this communication indirectly and solicitations are prohibited in your jurisdiction with registration, the market commentary in this communication should not be considered a solicitation.