Though many financial advisors say managed futures are a critical component of client portfolios, a large number of these professionals admit they lack a strong understanding of how to best use these complex products in portfolios.
These are some of the key findings from an advisor survey released Monday by Altegris Advisors, which helps independent advisors offer alternative investments.
Close to half of those registered representatives surveyed, 46%, say they currently use managed futures in client accounts, and more than two in five, 41%, plan to increase their current allocation to managed futures in 2017.
In addition, one in four respondents, 25%, say they use managed futures mainly to diversify traditional equity and fixed income strategies, while almost one-third, 31%, believe managed futures should make up more than 5% of client portfolio.
“Amid heightened volatility in currencies, commodities and interest rates, the findings from the Altegris Managed Futures Survey represent a key indication that the current environment is ripe for advisors to implement managed futures in their client portfolios,” said Matt Osborne, CIO of Altegris and portfolio manager of the Altegris Futures Evolution Fund, in a statement.
“Our Futures Evolution Strategy Fund … looks to address these market conditions by offering a proven track record and a unique blend of some of the industry’s leaders in futures and active fixed income,” Osborne added.
Overall, the poll found that nearly nine of 10 reps, or 86%, currently employ alternative investments in client portfolios.
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