A growing number of investors would like to consider adding managed futures, which can take both long and short positions via futures contracts and options in global commodity, interest rate, equity and currency markets, in their retirement and other portfolios.
To include managed futures in retirement plans, though, investors face several challenges, according to Adam Rochlin, MF Global senior vice president for alternative investment strategies.
One challenge is availability.
Rochlin says his firm cannot find any employer sponsored 401(k) or defined contribution plans in which plan participants can invest in a "true" managed futures program.
If the plan offers participants a brokerage account option, there are some ETFs available that provide exposure to the performance of managed futures, but they're not the same, says Rochlin: "It's not as clean or as efficient as you would necessarily get with a true managed futures fund program," he explained in a phone interview.
Rochlin cites several causes for this lack of availability in retail investors' retirement plans.
One is the regulatory climate. The SEC and the CFTC (U.S. Commodity Futures Trading Commission) are at odds over the issue of managed-futures funds for retail investors.
