Diversification Benefits of Managed Futures StrategiesDiversificationBenefitsofManagedFuturesStrategies

Overview*

Managed futures (CTA) strategies tend to perform well when traditional 60/40 portfolios do especially poorly:
 

• 60/40 portfolios tend to fare poorly during periods of unexpectedly high inflation so CTA strategies can be thought of as a possible inflation hedge.
• Today’s economic backdrop suggests an elevated risk of recession. CTA strategies usually significantly outperform a 60/40 portfolio during recessions.
• CTAs tend to post positive returns even during periods when a 60/40 portfolio is rising, so are unlike conventional tail-risk strategies that tend to lose money when equity markets go up.

* Portfolio objectives are not guaranteed. Past performance is not a guarantee or reliable indicator of future results.