“Portfolios…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.”  - Dr. John Litner, Harvard University

WHAT ARE MANAGED FUTURES?

Managed Futures describe an industry made up of professional money managers known as Commodity Trading Advisors (CTAs).

With practically a zero-correlation with stocks, CTAs can add profound diversification to an overall investment portfolio by using global futures markets as an investment medium, taking positions based on expected profit potential.

Knowledgeable investment professionals have been using managed futures for more than 30 years. Institutional Investors, such as corporate and public pension funds, endowments, trusts and banks, have made managed futures part of a well-diversified portfolio.

Managed Futures as an asset class are increasingly being recognized as an important investment alternative that can potentially enhance returns and lower the overall volatility of a portfolio.

CTAs are regulated by the National Futures Association and the Commodity Futures Trading Commission. All stated rates of return must meet stringent regulatory standards.

The primary source of income for most CTAs is an incentive fee that can only be earned by producing ongoing new profits for a customer's account (net of all costs).

In October 2004, it is estimated that over $117 billion dollars was under management by trading advisors.*

*Source Barclay Trading Group

The risk of trading futures, options, and foreign exchange can be substantial. Past performance is not necessarily indicative of future results. The factual information of this report has been obtained from sources believed to be reliable, but is not necessarily all-inclusive and its accuracy can not be guaranteed.

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