Managed Futures are typically referred to as Alternative Investments. They are alternative for retail investors in that 1. they are only appropriate for the risk capital portion one's portfolio 2. they can be invested in both the long side and/or short side of a large variety of asset classes within the futures markets and 3. they can be more actively managed than typical equity and fixed income investments. CTA's manage customer accounts on a discretionary basis. Each CTA has a unique trading methodology which is generally described in their Disclosure Documents. A CTA's disclosure document typically contains an investment program 1. trading methodology and investment strategy 2. description of the trading/management team 3. past track record of the program 4. terms and conditions of the investment program and 5.outline of the risks associated with investing in the program.

Managed futures programs are managed/traded by professional money managers referred to as Commodity Trading Advisors (CTA's). CTA's are members of the National Futures Association and registered with the Commodity Futures Trading Commission (CFTC). The NFA and CFTC provide regulatory oversight, guidance and compliance monitoring over CTA's and their managed programs.

Managed Futures programs can provide investors with diversification. CTA's can participate in over 150 global markets like Stock Index, Fixed Income, Currency, Metals, Energy, and Commodity markets.

Managed Futures Benefits within a diversified portfolio include*:

•  Potential of lower overall portfolio risk
•  Opportunity to enhance overall portfolio returns
•  Broad diversification opportunities
•  Opportunity to profit in a variety of economic environments

* http://www.cmegroup.com/education/modules/managed-futures/index.html

In evaluating a Managed Futures program one should consider:

•  A managers investment strategy
•  A managers long term and short term track record
•  A programs drawdown history