Diversification and Performance
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In addition to improving overall portfolio returns, managed futures have the ability to perform well in a variety of economic climates, including inflation and periods of down stock markets. One reason for this is that managed futures trading advisors have the ability to take advantage of price trends in either direction.

Performance Illustrations

Down Markets (slowing GDP and Periods of Inflation)

Managed Futures Perf. During Periods of S&P 500 Quarterly Losses Exceeding 5%
(January 1980 - May 2008)

Chart of performance

1. CASAM CISDM Equal Wtd. CTA Index.

Traditional Portfolio vs. Diversified Portfolio

Growth of Initial $100,000
(January 1980 - May 2008)

Graph showing a diversified portfolio vs. traditional stock/bond portfolio

The chart above shows a comparison between the performance of a traditional stock and bond portfolio versus the performance of a diversified portfolio with a 25% allocation to managed futures. The chart demonstrates that the historical non-correlation between these asset classes provides the opportunity for improving the performance and decreasing the volatility of an overall, balanced portfolio.

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