What Are Managed Futures?

The term managed futures describes an industry made up of professional money managers known as commodity trading advisors (CTAs). As investors look for greater diversity in their portfolios, these trading advisors manage client assets on a discretionary basis using global futures markets as an investment medium. 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 and trusts, and banks have made managed futures part of a well-diversified portfolio.