Seeking stability in volatile times
By WP | 9/10/2012 12:00:00 AM | 0 comments
Could choosing managed futures be a viable alternative investment strategy to minimise volatility in today’s uncertain market conditions?
Aspect Capital CEO Anthony Todd certainly believes so. He has stated that adding a managed futures strategy to an investment portfolio typically enhances returns, softens drawdowns and decreases volatility – thereby improving the total risk adjusted return of a client’s portfolio.
“Managed futures have no directional bias so they can profit from both rising and falling markets, and provide a strong source of diversifying returns to traditional assets like shares and bonds,” he said.
"This is not just a new investment that has emerged over the last few years. It's been long-established, and has the benefits of a long track record."
According to Colonial First State, who have formed a distribution alliance with Aspect Capital, the systematic ability of managed futures strategies to allocate between a diverse range of markets and profit from trends as they arise has resulted in the managed futures index outperforming both global equities and global bonds over the past 20 years.