The asset class
Unlike in in the US, Switzerland and Great Britian, in Germany managed futures are an neglected asset class. Wrongfully and for the disadvantage of the investors as managed futures are no longer reserved for institutional investors only.
Managed futures are alternative investments in the class of liquid and regulated hedge fund strategies. On the basis of standardised contracts, usually traded on the stock exchange (in particular futures and options), managed futures managers can profit from both rising and falling prices and therefore make a positive contribution to a portfolio even in periods of crisis on the financial markets. Managed futures offer many advantages over other types of hedge fund as they apply very different investment methods. Managed futures for example invest only in listed products which are standardised and highly liquid.
Unlike most other hedge fund strategies, managed futures are therefore extremely transparent. Managed futures have for years been well-established in countries such as the USA, the UK and Switzerland, where they are a constant in many investors’ portfolios. In Germany, on the other hand, investors have to date invested only a fraction of their overall portfolios in what is still a relatively unknown asset class. Yet managed futures generate real added value as a portfolio addition. The wide range of possible strategies offers flexible investment options and an individual portfolio structure.
Assets invested in managed futures at the end of the 80s totalled around five billion USD worldwide. This figure had grown to around 250 billion USD by the end of 2010. Managed futures were previously the preserve of institutional investors such as pension funds, investment funds, insurers and foundations or of extremely wealthy private individuals.
Diversification and risk reduction
300 markets - flexible investment in all assets classes; potential returns on both rising and falling markets; no concentration risk
