Why Managed Futures in a Retirement Portfolio?

Managed Futures are ideal for long term profile of retirement plans, and have some extraordinary benefits when included in IRAs and other securities portfolios that are difficult to find elsewhere.

• Reduced volatility and risk. Since 1989, the volatility of managed futures products has compared quite favorably to the stock market and, since 1996, is actually significantly less. Commodity trading advisors (CTAs) have learned how to manage risk over the past 20 years.
  
  Dr. John Lintner of Harvard University, wrote that, "the combined portfolios of stocks (or stocks and bonds) after including judicious investments. . .in leveraged managed futures accounts show substantially less risk at every possible level of expected return than portfolios of stocks (or stocks and bonds) alone." Lintner's research is substantiated by the long-term MAR study.

  
  

• Increased returns. According to Dr. Harry M. Markowitz, the Nobel prize-winning economist and father of modern portfolio theory, more efficient investment portfolios (i.e. portfolios with decreased volatility and increased performance) can be created by diversifying among asset categories with low to negative correlation, such as stocks and commodities.

  
  

Managed futures, of course, have periodic "drawdowns" (declines in value). However, over the long-term, they can provide consistent, attractive appreciation. Investors can also choose those products that offer a level of volatility appropriate to their retirement objectives. Managed commodity futures, therefore, make extraordinarily beneficial long-term additions to an IRA.

Review CTA Programs