5 What are managed futures? Futures markets were created over 150 years ago for a single purpose, to facilitate the transfer of price risk away from producers and consumers. By participating in the futures markets, a managed futures portfolio acts as an important market participant, accepting that price risk and providing liquidity to commercial interests. Futures markets are traded on public exchanges and are based on a standardized futures contracts in equities, bonds, currencies, and commodities. What are the benefits of investing in managed futures? The primary benefit of investing in managed futures is the mitigation of portfolio risk through an uncorrelated asset class. Further, during periods of market stress, managed futures has historically shown greater potential for negative correlations. Institutional investors may employ an active futures manager for a variety of reasons. However, investors of all types may use managed futures to diversify risks in a portfolio that does not already consist of derivatives. Who are active futures managers? Active futures managers are highly trained individuals who have been designated by the Commodities Futures Trading Commission (CFTC) as commodities trading advisors (CTAs). These individuals trade futures contracts on a wide array of commodities and/or other assets on behalf of clients. >$300 Billion Assets in managed futures, mostly in private vehicles 1 ~30% Portion of CTA industry assets under management (AUM) in managed futures 1 Managed Futures at a Glance >15% The average return of a managed futures portfolio during the 2008 Global Financial Crisis 2 1. Data from BarclayHedge as of 12/31/2024. 2. Data from Altegris as of 8/2011. Data presented is for informational purposes only and is not meant to guide any investment decision. Past performance does not guarantee future results. Retrieved on 12/31/2024. Diversification does not ensure a profit or guarantee against a loss. See the end of the presentation for term definitions. Managed Futures Overview