Integrity Futures Group

Managed Futures

Have you considered diversifying your portfolio with exposure to the commodities market?

Integrity Futures Group has a healthy relationship with a variety of different professional money managers known as Commodity Trading Advisors (CTAs). These trading advisors manage client assets on a discretionary basis using global futures as an investment medium.

What are managed Futures?

Domestic and international corporations, banks, insurance companies, mutual fund managers, and trading firms use the futures markets to manage their continuous exposure to price changes. Futures markets make it possible for these hedgers to transfer that risk exposure to other market participants. CTAs are responsible for the actual trading of managed accounts. They use a mixture of technical and fundamental analysis to capture markets through proven quantitative analysis. They implement a proprietary trading system, or a discretionary method, that may involve going long or short in futures contracts in areas such as metals (gold, silver), grains (soybeans, corn, wheat), equity indexes (S&P futures, Dow futures, NASDAQ 100 futures), soft commodities (cotton, cocoa, coffee, sugar) as well as foreign currency and U.S government bond futures. In the past several years, money invested in managed futures has more than doubled and is estimated to continue to grow in the coming years if hedge fund returns flatten and stocks under perform.

How can you benefit from Managed Futures?

1. Reduced Portfolio Volatility Risk
The primary benefit of adding managed futures to an already diversified investment portfolio is that it may decrease portfolio volatility risk. Nobel Prize economist Dr. Harry M. Markowitz has proven that adding managed futures to an efficient investment portfolio can create a more well balance investment by diversifying among asset categories with low to negative correlations.

2. Potential for Enhanced Portfolio Returns
While managed futures can decrease portfolio risk, they can also simultaneously enhance overall portfolio performance.

3. Ability to Profit in Any Economic Environment
Managed futures trading advisors can take advantage of price trends. They can buy futures in anticipation of rising markets or sell in anticipation of a falling market. Therefore they can profit in any type of market condition, and even implement strategies employing options, calendar and inter-market spreads.

4. Ease of Global Diversification
The establishment of global futures exchanges and the accompanying increase in actively traded contract offerings has allowed trading advisors to diversify their portfolios by geography as well as by product.

Managed futures investments have been used by individual investors for more than 26 years. As an asset class, managed futures are increasingly being recognized as an important investment alternative that may potentially enhance the returns and lower the overall volatility of a diversified investment portfolio.

Many different futures markets
Managed futures are highly flexible financial instruments traded on many regulated financial and commodity markets around the world. By broadly diversifying across global markets, managed futures can simultaneously profit from prices changes in stock, bond, currency and money markets, as well as from diverse commodity markets having virtually no correlation to traditional asset classes.

Disclaimer:

The risk of loss in trading commodity futures and options can be substantial. Before trading, you should carefully consider your financial position to determine if futures trading is appropriate. When trading futures and/or options, it is possible to lose more than the full value of your account. All funds committed should be risk capital. Past performance is not necessarily indicative of future results.

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*Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Currency trading is not conducted on a regulated exchange, and as a result there are associated risks with forex trading.

Trading Futures and Options on Futures transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.