Forward Launches Managed Futures Fund
New long/short strategy systematically invests across commodities, equities, bonds and currencies
SAN FRANCISCO, March 13, 2012 /PRNewswire/ -- Forward Management, LLC ("Forward") today announced the launch of the Forward Managed Futures Strategy Fund (FUTRX), a mutual fund designed to generate positive returns in varied market environments while maintaining low correlations to major stock, bond, and commodity indexes.
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The Forward Managed Futures Strategy Fund harnesses a systematic, trend-following approach that provides both long and short exposure to liquid futures contracts in four global asset classes—commodities, equities, bonds and currencies.
"In our view, the appeal of managed futures lies in their equity-like return potential and volatility coupled with their historically low correlation to traditional asset classes," said Forward CEO J. Alan Reid. "We've designed our strategy to give investors a flexible way to allocate assets in line with long-term market trends."
With the addition of the new fund, Forward's set of alternative funds now includes eight long/short strategies spanning the global and domestic equity, fixed-income, commodities and real estate categories. As of December 31, 2011, Forward Management placed among the top 25 asset managers in the U.S. in terms of year-to-date alternative asset flows, according to Strategic Insight.
The new managed futures strategy employs a proprietary, quantitative process to provide exposure to futures contracts across 44 individual asset sub-categories based on their long-term upward or downward price movements. The portfolio may range from 100% long to 100% short at any given time, with a maximum of 10% in any one position. It is rebalanced monthly to capture changing market trends. While designed to capitalize on meaningful trends in futures prices, the strategy systematically avoids asset sub-categories that appear to be overbought or oversold, a distinguishing feature of the fund's approach.
Based on the Credit Suisse Multi-Asset Futures Strategy Index, Forward's new mutual fund provides broad access to an asset class that is of growing appeal to investors, but until recently was restricted to accredited investors and available mainly through Commodity Trading Advisors (CTAs). The managed futures asset class has a long-term track record of equity-like returns with the Barclay CTA Index reporting an 11.16% average annual return between January 1, 1980 and December 31, 2011.*
Managed futures has recently been among the fastest-growing alternative investment categories. According to Morningstar, managed futures vehicles saw inflows of about $3.4 billion in 2011, a 240% rise over the previous year, and the number of managed futures mutual funds grew from one at the beginning of 2008 to 26 funds at the end of 2011.
About Forward Management, LLC
Investors today are seeking new tools and strategies to help them achieve their goals and manage risk. Forward is an asset management firm that is helping to meet and anticipate those needs with an extensive set of diverse, ever-evolving solutions. Providing broad access to innovative strategies once available only to the largest and most sophisticated investors, we are helping to lead the industry in a new direction. As of December 31, 2011, Forward managed more than $5 billion in mutual funds, separate account strategies and limited partnerships. More information on Forward can be found at www.forwardinvesting.com.
Please consider the objectives, risks, charges and expenses carefully before investing in the fund. A prospectus with this and other information may be obtained by calling (800) 999-6809 or by visiting www.forwardinvesting.com . Please read carefully before making a final investment decision.
Past performance is no guarantee of future results. Share prices will fluctuate and you may have a gain or loss when you redeem shares.
RISKS
There are risks involved with investing, including loss of principal. Past performance does not guarantee future results, share prices will fluctuate, and you may have a gain or loss when you redeem shares.
Exposure to the commodities markets may subject a fund to greater volatility than investments in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments.
A fund's use of derivative instruments involves risks different from the risks associated with investing directly in securities and certain derivatives may create a risk of loss greater than the amount invested. Derivatives increase volatility and transaction costs and may reduce performance.
A fund that invests in ETFs will be subject to substantially the same risks as those associated with the direct ownership of the securities or other property held by the ETFs.
Mortgage-backed securities do not have a fixed maturity, and their expected maturities may vary when interest rates rise or fall. Mortgage-backed securities are subject to prepayment risk and are subject to extension risk, which is the risk that a fund that holds mortgage-backed securities may exhibit additional volatility during periods of rising interest rates. Small movements in interest rates may quickly and significantly reduce the value of certain mortgage-backed securities.
A "non-diversified" fund has the ability to invest a larger percentage of its assets in the securities of a smaller number of issuers than a "diversified" fund. The net asset value per share of a non-diversified fund can be expected to fluctuate more than that of a comparable diversified fund.
Alternative strategies typically are subject to increased risk and loss of principal. Consequently, investments such as mutual funds which focus on alternative strategies are not suitable for all investors.
Diversification does not assure profit or protect against risk.
Forward Funds are distributed by ALPS Distributors, Inc. Separately Managed Accounts and related investment advisory services are provided by Forward Management, a federally regulated Investment Advisor.
CTA is an individual or a firm, registered with the Commodity Futures Trading Commission that receives compensation for giving people advice on options, futures and the actual trading of managed futures accounts.
Managed futures is a type of alternative investment. Managed futures accounts can take both long and short positions in futures contracts and options on futures contracts in the global commodity, interest rate, equity and currency markets.
The Credit Suisse Multi-Asset Futures Strategy Index provides exposure to up to 44 liquid futures contracts within four broad asset classes: equities, bonds, currencies, and commodities. The index seeks to deliver absolute returns in all market cycles and is comprised of long and/or short positions in exchange-traded future contracts.
The Barclay CTA Index is an industry benchmark of representative performance of commodity trading advisors. There are currently 602 programs included in the calculation of the Barclay CTA Index for the year 2012, which is unweighted and rebalanced at the beginning of each year.
One cannot invest directly in an index.
The Forward Managed Futures Strategy Fund seeks long term total return.
The Forward Managed Futures Strategy Fund was launched on January 30, 2012, and has a limited operating history.
*Average annual returns for the Barclay CTA Index over the five and fifteen year periods were 4.96% and 5.26% respectively.
Alan Reid is a registered representative of ALPS Distributors, Inc. Forward Funds are distributed by ALPS Distributors, Inc. ALPS Distributors, Inc., is not affiliated with Forward Management and Kanter and Company.
Forward Funds are distributed by ALPS Distributors, Inc.
Not FDIC Insured. No Bank Guarantee. May Lose Value.
Contact: Victoria Odinotska
Kanter and Company
703-534-3735
SOURCE Forward Management, LLC
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