Managed Futures Mutual Funds Performance Update

Last month we expanded our look at managed futures mutual funds to look at all of the new entrants into the space, not just the normal whipping boys Rydex and Wisdom Tree. As we have discussed before, our main problem with those two products is that they are being marketed as managed futures exposure without containing any actual managed futures exposure. Enter: several products which actually do invest in underlying managed futures managers (kudos to you), but do so at a very high cost with extra layers of fees and, more often than not, a high front end sales (load) fee (shame on you).  And then there are a bunch which are not giving exposure and charging the load fees, the worst of the worst.

Given all of this, we don’t think mutual funds are a good vehicle to access the asset class if you have the capital to stand on your own and invest in individually managed accounts. What is the end result of these products not giving actual exposure to the asset class and charging high fees? Significant underperformance compared to the benchmarks. Read ‘em and weep below (Disclamer: past performance is not necessarily indicative of future results).

Click to embiggen.

Through March 30th, 2012

4/17/2012 Edit: categories rearranged.

4 comments

  1. […] Via managed-futures-blog.attaincapital.com Publié dans Non classé […]

  2. I was wondering if someone could explain how Grant Park is a single manager strategy. Or how LoCorr is a multi manager. If I am going through their prospectuses and annual reports correctly, then it would stand to reason that since only Millburn is the underlying manager for LoCorr that they would be a single manager. And since Grant Park allocates their CFC to Denali, QIM, Welton and Winton, they should be a multi-manager.

  3. Thanks for pointing that out, CB. We’ve amended the chart to place those funds in the appropriate categories.

  4. Thank you for sharing this information. Your information very useful for us.

Write a Comment

The performance data displayed herein is compiled from various sources, including BarclayHedge, RCM's own estimates of performance based on account managed by advisors on its books, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.