IMGP DBI MNGD FUTURES FD R USD UCITS ETF

Issuer: IMGP

Asset Class: Alternative

TER: 85bps

Trading Currency: GBX

Pays Income: False

Listing Date: 22 Apr 2025

Ticker: DBMG

ISIN: LU2951555585

Managed futures is an alternative strategy designed to provide diversification from traditional stock and bond portfolios. It aims to capture market trends, both upward and downward, across a wide range of asset classes including commodities, currencies, equity indices, and government bonds. The strategy takes long positions in assets with positive momentum and short positions in those with negative momentum. This approach allows it to potentially generate returns in various market environments, including periods when traditional assets are declining. The core idea is that trends can persist over time, and a systematic approach may be able to exploit these movements for gain.

This fund implements a systematic trend-following strategy that aims to replicate the pre-fee performance of leading commodity trading advisor (CTA) hedge funds. By analyzing the positions of a select group of CTAs, the fund constructs a diversified portfolio of liquid futures contracts across global markets. The goal is to provide investors with access to the diversification benefits of managed futures—historically showing low correlation to equities and bonds—but within a more accessible, transparent, and liquid UCITS framework. This can be a valuable tool for portfolio construction, particularly for mitigating downside risk during equity market downturns and adding a non-correlated source of returns.

This investment may be suitable for investors seeking to enhance their portfolio's resilience and diversification. By allocating to a strategy that behaves differently from traditional stocks and bonds, investors can potentially smooth out their overall portfolio returns over a full market cycle. It is designed to be an 'all-weather' component, capable of performing in rising or falling markets, as long as clear trends are present. Given its potential to act as a hedge during periods of market stress or heightened inflation, it serves as a strategic alternative allocation intended to improve risk-adjusted returns over the long term.