FMF Profile
The First Trust Managed Futures Strategy Fund is an actively managed exchange-traded fund (ETF) designed to achieve positive returns that are not directly correlated with broad market equity or fixed income returns. The fund aims to provide investors with a strategic investment option that can enhance portfolio diversification and potentially reduce overall volatility. By focusing on managed futures, the fund seeks to capitalize on price trends across various asset classes, including commodities, currencies, interest rates, and equity indices.
Under normal market conditions, the First Trust Managed Futures Strategy Fund, along with its wholly-owned subsidiary organized under the laws of the Cayman Islands, invests significantly in a diversified portfolio of exchange-listed futures contracts. These futures contracts encompass a wide range of underlying assets, enabling the fund to implement long and short positions based on market trends and signals. This approach allows the fund to potentially profit from both rising and falling markets, providing a unique source of return that is independent of traditional asset classes.
The fund's active management strategy involves continuous monitoring and adjustment of its futures positions to optimize performance. By leveraging a systematic and disciplined investment process, the fund aims to identify and exploit market inefficiencies and trends. The managed futures strategy employed by the fund is based on a combination of quantitative models and fundamental analysis, ensuring a robust and adaptive approach to changing market conditions.
Investors in the First Trust Managed Futures Strategy Fund gain access to a sophisticated investment vehicle that seeks to enhance portfolio resilience and deliver uncorrelated returns. The fund's focus on managed futures provides a hedge against adverse market movements and can serve as a valuable component of a diversified investment portfolio. By incorporating this fund, investors can potentially achieve better risk-adjusted returns and navigate complex market environments with greater confidence.
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