Free $45 Commodity Investor Kit

Includes : Charts, Market Information, Informative News Articles, Market Alerts, Exchange Brochures, Research, Managed Futures Information, and much more!!

CONTACT INFORMATION

You can contact us by sending mail below or you can call toll free:

Phone: 800.840.5617
Phone: 312.920.0212
Fax: 312.920.0216


ADDRESS

United Futures Trading Company, Inc.
150 N. Michigan Ave.
Suite 1970
Chicago, IL 60601

Resource Pages | Friend Pages

Key points on Managed Futures

Diversification for Today's Investor

The term managed futures describes an industry made up of professional money managers known as commodity trading advisors (CTAs). Investment management professionals have been using managed futures for more than 20 years. With practically a zero correlation with stocks, one of the most attractive features of managed futures is its ability to add profound diversification to an overall investment portfolio.

Managed Futures Trading kit includes:

  • Account opening documents
  • Commodity Trading Advisor Disclosure Documents
  • Exchange brochure

Complete this Form to Receive your Free $45 Managed Futures Information Kit
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Information On Managed Futures
  • Dr. Harry Markowitz, the father of Modern Portfolio Theory, who won a Nobel prize for his work, concluded that holding securities that tend to move in concert with one another does not lower risk. Diversification reduces risk only when assets are combined whose prices move inversely, or at times in relation to one another.
  • A diversified portfolio of non-correlated assets can provide the highest returns with the least amount of volatility.
  • One of the most non-correlated and independent investments versus stocks is professionally managed futures.
  • A landmark study by Harvard Professor Dr. John Lintner concluded that "the combined portfolios of stocks (or stocks and bonds) after including judicious investments...in leveraged managed futures accounts show substantially less risk at every possible level of expected return than portfolios of stocks (or stocks and bonds) alone."Lintner specifically showed how managed futures can decrease portfolio risk, while simultaneously enhancing overall portfolio performance. The risk of loss in trading futures can be substantial. An investor could potentially lose more than their initial investment.
  • Jack Meyer, the head of Harvard University's Endowment portfolio, concerning futures, stated, "Holding commodities offers protection against the ups and downs of stocks and bonds." Referring to commodities, he added, "They're the most diversifying asset in the portfolio…The benefits of diversification are indisputable. Diversification rules. It's powerful and our portfolio is a good deal less risky than the S&P 500."
  • The major source of income for the majority of CTAs is an incentive fee that can only be earned by producing on-going new profits for an account. (Net of all costs.)
  • Managed futures have tax benefits over stocks. According to the Tax Act of 1981, short-term profits in commodities are treated as 60% long term and 40% short term. On the other hand, short-term trading profits in stocks are treated as 100% short term. A short-term investment is one that is held for less than one year. This favorable tax treatment in commodities can translate to investors in upper tax brackets, saving as much as 30% on taxes in short-term gains on commodities versus stocks!
-- RECEIVE A CME MANAGED FUTURES BROCHURE --
  • Contrary to popular belief, at certain times, managed futures frequently display less volatility than U.S. equities and interest rate instruments.
  • Individual results may vary. A customer may not experience these results in the future. Bear in mind in futures, the potential exists to lose more than your initial investment.
  • Studies have shown professional Commodity Trading Advisors do experience an appreciably higher success rate than the individual amateur trader. The fact is, there are numerous Commodity Trading Advisors with consistent returns achieved through prudent money management. You are, however, subject to the risk of loss no matter who is managing your money.
The Most Important Question

We believe the most important question an investor should be asking himself is "What do I have in my portfolio that is non-correlated with stocks and can potentially capitalize on a lackluster, bearish, or up-trending stock market?" For many informed, suitable investors, there isn't a better way to properly diversify and help protect an overall stock portfolio, than incorporating professionally managed futures. Please contact your broker to receive a free copy of the CME brochure at no obligation.

TRADING FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. AN INVESTOR MUST READ AND UNDERSTAND THE COMMODITY TRADING ADVISORS CURRENT DISCLOSURE DOCUMENT BEFORE INVESTING. BE ADVISED THAT DIVERSIFYING ONE'S PORTFOLIO WITH MANAGED FUTURES DOES NOT GUARANTEE PROFIT, OR PROTECT A PORTFOLIO FROM SUBSTANTIAL LOSSES OR VOLATILITY. AN INVESTMENT IN MANAGED FUTURES MAY HELP ENHANCE RETURNS AND REDUCE RISK. HOWEVER, THEY MAY ALSO DO JUST THE OPPOSITE AND IN FACT RESULT IN FURTHER LOSSES. THE RESULTS OF STUDIES CONDUCTED IN THE PAST MAY NOT BE INDICATIVE OF CURRENT TIME PERIODS AND MAY NOT REFLECT THE PERFORMANCE OF ANY INDIVIDUAL CTA..