managed futures

managed futures

Managed Futures, alternative investment strategy, in which the professional portfolio managers use futures contracts as part of their total investment strategy. Managed futures provide diversification of the portfolio on various types of investment styles and classes of assets to help reduce portfolio risk in a way that is not possible in the implementation of direct investments in the shares.
Professional financial managers, known as consultants for trade in goods, usually control the managed futures accounts. These accounts may be different ratios of investment in shares and derivatives. The diversified managed futures account usually has investments in various markets, such as raw materials, energy, agriculture and currency. The introduction of futures in a portfolio reduces the risk of the negative correlation between the groups of assets.