The WSJ Cautions Against Futures Offerings
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Thursday, October 06, 2011

The WSJ Cautions Against Futures Offerings

Managed-futures mutual funds are quickly gaining traction, having tripled their AUM in the past year, but buyer beware, according to the Wall Street Journal.

The subset, which currently holds some $7 billion, now includes some 21 funds, including the Rydex/SGI Managed Futures Strategy, with at least a dozen more awaiting regulators' approval. The subset has faired well in foul weather, having gained 10 percent in 2008 when the Standard & Poor's 500-stock index fell 37 percent.

However, futures offerings aren't required to fully divulge their investments and all their fees. Typically, they publish management fees totaling 200 to 300 basis points.

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