CTA/Managed Futures funds have been in existence for more than 40 years and are historically uncorrelated to stocks and bonds. As a result, they have offered invaluable diversification within portfolios, in particular during equity bear markets.
Since the MSCI World Index peaked on 12 February 2020, it has fallen by -32.3% to 20 March 2020. Meanwhile, over the same period, Garraway Financial Trends has generated a positive return of +9.89% and is now up +13.88% year to date (as at 20/3/20).
Below is a comparison of how CTA/Managed Futures have performed against equities since 1980. It highlights their positive performance during all the equity bear markets over the last 40 years and their non-correlation to equities.
The next slide highlights how blending our CTA/Managed Futures fund, Garraway Financial Trends, into a traditional portfolio would have significantly improved performance, in particular, higher Sharpe and Sortino Ratios and lower Maximum Monthly Drawdowns.
If you would like further information, or to arrange a video call to learn more, please contact your usual Garraway representative.