Most Australians are told to diversify across shares and property. What they rarely hear about is a category of investment that has historically profited during the moments when those two assets hurt the most. That gap in mainstream advice is where managed futures quietly sit — and 2022 made the case for paying attention.

Managed futures are funds run by professional traders — known as Commodity Trading Advisors, or CTAs — who use systematic, rules-based algorithms to trade futures contracts across commodities, currencies, bonds, and equity indices. There is no gut feeling involved. The algorithm identifies a directional trend and follows it, long or short, across dozens of markets simultaneously.

CONCEPTManaged futures profit from trends in any direction — they can go short when markets fall, which is structurally different from owning shares or property.
WARNINGTrend-following strategies can suffer extended flat or negative periods during choppy, directionless markets — 2009 to 2019 tested many CTA investors severely.
KEY IDEAThe Societe Generale CTA Index returned approximately +25% in 2022 — the same year the S&P 500 fell 19% and global bonds had their worst year in decades.

In 2022, central banks raised rates aggressively, equities fell sharply, and traditional 60/40 portfolios delivered their worst performance in a generation. Trend-following algorithms detected the sustained downtrends in bonds and equities early, went short, and held those positions as the moves extended. The strategy did exactly what its design intended — it followed the trend.

2022 Returns: CTA vs Traditional Assets0%+13%+25%+25%SG CTAS&P 500-19%Global Bonds-13%

Accessibility has improved meaningfully for Australian investors. Managed futures exposure was once reserved for institutional allocators with six-figure minimums. Today, several ASX-listed and unlisted managed funds offer CTA-style strategies with lower entry points, though investors should carefully review fees, liquidity terms, and the specific algorithm's track record before proceeding. Understanding the mechanics is a reasonable starting point — Investopedia's managed futures overview covers the structural basics clearly, while the broader history of managed futures accounts on Wikipedia shows how this category evolved from commodity pits into sophisticated algorithmic strategies. For context on how CTAs are classified and tracked, the commodity trading advisor entry on Wikipedia explains the regulatory and operational framework these managers operate within.

The mainstream portfolio was built for a world of falling rates and rising equities. That world changed in 2022 — and some algorithms were positioned accordingly before most investors even noticed.

This content is for educational purposes only and does not constitute financial product advice. Past performance is not indicative of future results. Profit Logic Ltd (ACN 688 669 936) accepts no responsibility for errors or omissions in this content or anywhere on this website. Always seek advice from a licensed financial adviser before making investment decisions.