Thu, Jul 31, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

First Trust Advisors launches Morningstar Managed Futures Strategy Fund

Monday, August 19, 2013

amb
Ryan Issakainen
Bailey McCann, Opalesque New York:

First Trust Advisors is launching a new managed futures ETF tracking the Morningstar Diversified Futures IndexSM. Managed futures have been successfully implemented by institutional investors for nearly three decades, but have been typically offered in hedge funds or private accounts until recently. The company seeks to make managed futures more accessible to retail investors through this ETF.

The fund provides exposure, through a wholly-owned Cayman Islands subsidiary, to commodities, currencies, and equities through a long, short or flat futures strategy. The fund seeks to achieve positive returns that are not directly correlated to broad market equity or fixed income returns.

"As an actively managed product we'll be able to choose when we roll from one contract to another in an effort to outperform our benchmark," Ryan Issakainen, ETF Strategist of First Trust, tells Opalesque.

He notes that advisors may opt for this ETF over managed futures mutual funds as part of a more actively managed portfolio. Because the product goes both long and short, with an actively managed strategy Issakainen says that the ETF can provide for a diversifier and depending on the goals of a given portfolio, may do so at less of a load than a managed futures mutual fund.

"You don’t own managed futures because they do well from an absolute standpoint all the time. They can perform well however, when some of the tradition......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  2. Hedge fund manager Winton Capital making headway with long-only strategy[more]

    From PIonline.com: North American investors are helping Winton Capital Management Ltd. make progress — albeit slowly — toward its founder's goal of becoming a $100 billion company. The firm's ticket to quadrupling its assets under management is unlikely to be one of its scientifically designed manag

  3. Opalesque Radio: Now is a good time to buy protection cheaply in the options market[more]

    Benedicte Gravrand, Opalesque Geneva: Investors are showing an increased interest in risk parity funds and strategies, Opalesque reported last year. Risk parity strategies have the

  4. The Big Picture: Charlemagne Capital smoothes risk out of frontier market investing with portfolio approach[more]

    Benedicte Gravrand, Opalesque Geneva: Opalesque recently talked to one of the portfolio managers of the Oaks funds, which are emerging and frontier market hedge funds focusing on equity long/short with a directional approach. They are run by

  5. Winton’s low-cost equities fund tops $1bn for first time[more]

    From FT.com: Winton, the London-based hedge fund, has increased the assets in its low-cost equities fund to more than $1bn for the first time in a sign that traditional stock managers may come under increasing pressure from computer-driven rivals. Winton, which manages about $25bn in total ass