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Why Alternatives

Alternatives Investments may offer protection to an investment portfolio by diversifying the sources of potential returns and seeking to smooth out the volatility that is inherent in traditional equity and fixed income markets. An investor can consider alternatives any investment that is NOT exclusively long positions in equities and/or fixed income. One alternative investment example is managed futures – long and short investments in a broad spectrum of geographically dispersed futures markets including commodities, currencies, equity indexes, interest rates, and precious metals.  When added to a portfolio, managed futures can potentially increase overall performance and reduce the depth and length of downside valleys, delivering a smoother experience for investors.

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Definitions: S&P 500 | Barclay Global Macro Fund Index
Sources: Yahoo Finance for the S&P 500 Index and Barclay Global Macro Fund
SEE PERFORMANCE AND EXPENSE DISCLOSURES BELOW.

 

Let’s take a look at how managed futures have that effect. Managed futures can enhance portfolio diversification with access to markets not typically available through traditional investment strategies. These markets include commodities such as gold, oil, grains, foreign currencies, stock and bond index futures.

These markets often behave independently from equities and bonds – offering a potential source of returns non-correlated to traditional investments.

 

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Global Macro can potentially be positively correlated in up years,
and its draw downs may be less dramatic

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Definitions: S&P 500 | Barclay Global Macro Fund Index
Sources: Yahoo Finance for the S&P 500 Index and Barclay Global Macro Fund
SEE PERFORMANCE AND EXPENSE DISCLOSURES BELOW.

 

Managed Futures returns have historically operated in a narrower band of performance than equities and many other asset classes.  Having the right amount of non-correlated investments in your portfolio can potentially make your investing feel like hiking gentle hills rather that scaling the peaks of Mt Everest.

 

Quilt
Click to Enlarge

Definitions: S&P 500 | Barclay Global Macro Fund Index
Sources: Yahoo Finance for the S&P 500 Index and Barclay Global Macro Fund
SEE PERFORMANCE AND EXPENSE DISCLOSURES BELOW.

 

Asset classes have different investment objectives, costs and expenses, liquidity profiles, safety, guarantees/insurance, volatility, and tax advantages/disadvantages. The performance of any index presented does not represent the performance of any particular product or series of Monte Capital Group LLC. The performance of the indices noted above does not include fund expenses, such as service fees, sponsor fees, fund organizational and operating fees, the fund operating expenses, etc. Investors are not able to invest directly in the above indices.There is no guarantee that managed futures or any particular investment will meet its intended objective; accordingly, investors could lose a substantial portion, or even all, of their investment. The above chart demonstrates the performance differences in the indices of different asset classes. Past performance does not guarantee future results.

The above charts demonstrate the performance differences in the indices of managed futures and equity asset classes. There is some important information to consider when comparing these types of investments.

Global managed futures have the ability to invest in a variety of sectors, such as commodities, currencies, interest rate instruments and stock indices. An investment in managed futures involves a high degree of risk, is speculative and volatile. An investor could lose all or a substantial part of their investment. There is no secondary market for managed futures investments. Foreign investing involves risks not typically associated with U.S. investments, including adverse fluctuations in foreign currency values, adverse political, social and economic developments, less liquidity, greater volatility, less developed or less efficient trading markets, political instability and differing auditing and legal standards.

Equities are shares issued by an individual company as ownership in that company. An equity investment is subject to certain risks, such as an economic recession and the possible deterioration of either the financial condition of the stock or the general condition of the stock market. Stocks can be sold on secondary markets, and may be sold at prices higher or lower than the original investment amount.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THERE IS RISK OF LOSS. YOU CAN LOSE MONEY IN A MANAGED FUTURES PROGRAM.

The indices shown are for informational purposes only and are not meant to represent the Fund. As it is not possible to invest in the indices, the data shown does not reflect or compare features of an actual investment, such as its objectives, costs and expenses, liquidity, safety, guarantees or insurance, fluctuation of principal or return, or tax features. Past performance is no guarantee of future results. For Fund performance information current to the most recent month-end, please call 1-855-542-4642.