Overview
If you're a qualified investor with a diversified investment strategy, you may want to consider adding managed futures investments to your total long-term financial plan.
Offering you the potential opportunity to profit in both rising and falling markets, managed futures may provide you with a significant growth potential along with commensurate risk.
About Managed Futures
Managed Futures is an industry in which professional money managers direct investments in the global currency, interest rate, equity, metal, energy and agricultural markets. They do this through the use of futures, forwards and options.
The futures markets have played a pivotal role in the world's economies. Tremendous market expansion has created new categories of markets and industry growth.
The number and variety of markets traded in managed futures investments may add substantial diversification to an investment portfolio. Potentially, they can enhance risk-adjusted rates of return. (Historically, managed futures' returns have shown
low correlation to those achieved by stock and bond investments.)
Risk considerations
Managed futures investments involve significant risks, including the following: An investment in a managed futures investment involves a high degree of risk, is speculative and volatile. An investor could lose all or a substantial part of his or her investment. There is no guarantee that an investment of this type will achieve its objectives. Managed futures funds’ high fees and expenses offset trading profits and reduce returns. Managed futures investments involve the use of significant leverage that may increase the risk of investment loss. The interests of investors in Morgan Stanley Smith Barney managed futures funds may conflict with those of Morgan Stanley Smith Barney. Managed futures are not subject to the same regulatory requirements as mutual funds. An investment in managed futures funds is illiquid. There is no secondary market for managed futures funds, and there are restrictions on transfer of managed futures funds. A substantial portion of the trades executed with respect to managed futures investments may take place on foreign exchanges. Managed futures investments may be considered as a potential component of a fully diversified investment portfolio. Morgan Stanley Smith Barney considers managed futures investments suitable solely for the risk capital portion of a portfolio. If a managed futures fund does not perform in a manner that has a low correlation to the performance of traditional financial markets or does not perform successfully, investors will obtain no diversification benefits by investing in such fund. Investors via IRA accounts should be aware that managed futures investments may endure extended periods of losses, which should be of particular concern if such an investor maintains a high concentration of managed futures investments within such IRA accounts. The prospectus and/or offering documents for each managed futures investment offered by Morgan Stanley Smith Barney contains a comprehensive discussion of some of that investment’s features and risks, and must be reviewed carefully before making an investment decision.
What's the difference between private and public managed future funds?
Learn about the potential benefits that these types of investments can offer.
Morgan Stanley Smith Barney has been offering managed futures investments since 1977.
Qualified Investors
Only investors who are financially eligible and willing to accept managed futures' inherent fluctuations should consider managed futures investments. Because these investments can be volatile, they are appropriate only for the risk capital portion of an investment portfolio, and they should be positioned for the long-term. Investors are cautioned that they could lose all or substantially all of their managed futures investments.
Investor suitability:
The financial requirements for public futures funds vary from state to state and with each offering. Generally, in most states, a minimum net worth of $150,000 (excluding homes, furnishings and automobiles) or a minimum annual income of $45,000 and a net worth of $45,000 (with the same exclusions) may be considered sufficient to allow investors to take advantage of certain managed futures investments. Suitability standards for certain public futures funds and private placement funds are higher and vary by offering. Ask a Morgan Stanley Smith Barney Financial Advisor about suitability requirements in your state.
