Managed Futures in Australia: 2025 Guide to Alternative Investments

Managed futures have quietly evolved from a niche investment for sophisticated traders to a mainstream option for Australian investors seeking diversification, downside protection, and access to global markets. As 2025 unfolds, this alternative asset class is gaining momentum, thanks to advances in technology, regulatory support, and a growing awareness of the value of non-traditional strategies.

What Are Managed Futures?

Managed futures refer to professionally managed investment programs that trade futures contracts and options on commodities, currencies, stock indices, and interest rates. These strategies, often implemented by Commodity Trading Advisors (CTAs), rely on systematic, rules-based approaches to capitalise on market trends—whether markets are rising or falling.

• Diversification: Managed futures offer exposure to asset classes beyond shares and property, reducing reliance on traditional markets.
• Liquidity: Futures markets are deep and liquid, allowing managers to quickly adapt to changing conditions.
• Potential for Absolute Returns: By going both long and short, managed futures can profit in bull and bear markets.

For Australian investors, managed futures are typically accessed through managed funds or ETFs, with products listed on the ASX and available via major platforms.

2025 Trends: Why Managed Futures Are in the Spotlight

Several 2025 trends have propelled managed futures to the forefront of portfolio construction discussions:

• Volatile Markets: Australian and global equities have experienced sharp swings, prompting investors to seek strategies that can navigate uncertainty.
• Rate Environment: With the RBA maintaining a cautious stance and inflation remaining sticky, traditional fixed income returns have lagged, making alternatives more attractive.
• Regulatory Updates: ASIC’s 2025 review of alternative investments has clarified product disclosure and risk labeling, making it easier for retail investors to access managed futures with greater transparency.
• Technology and Data: Quantitative managers now deploy sophisticated algorithms and artificial intelligence to identify trading opportunities, enhancing returns and risk control.

For example, the BetaShares Managed Futures ETF (ASX: MFUT) saw assets under management double in the first half of 2025, with inflows from both institutional and retail investors responding to choppy markets and geopolitical uncertainty.

How Managed Futures Fit into an Australian Portfolio

Managed futures are not designed to replace equities or bonds, but to complement them. Here’s how they can slot into a diversified portfolio:

• Risk Mitigation: Studies by local asset consultants in 2025 show that managed futures have a low or negative correlation with Australian shares and real estate, helping cushion portfolios during market downturns.
• Performance During Crises: During the 2022–23 rate hiking cycle, several managed futures funds posted positive returns while the ASX 200 fell, demonstrating their value as a hedge.
• Accessibility: With minimum investments as low as $5,000 and listed ETFs available for as little as one share, managed futures are now within reach for self-directed investors and SMSFs.

It’s important to understand the risks: managed futures can be volatile and may underperform during periods of strong equity bull markets. They are best used as part of a balanced approach, typically representing 5–15% of a diversified portfolio according to leading Australian financial planners in 2025.

Practical Considerations: What to Look for in a Managed Futures Product

Before adding managed futures to your investment mix, consider the following:

• Strategy Transparency: Does the fund clearly disclose its trading approach and risk controls?
• Fee Structure: Watch for performance fees and compare total cost ratios to ensure value for money.
• Track Record: While past performance isn’t everything, review how the manager performed in both up and down markets.
• Liquidity: Can you access your money quickly if needed?
• Regulatory Oversight: Ensure the product is ASIC-regulated and meets 2025 enhanced disclosure standards.

Some of the top-performing managed futures products in Australia in 2025 include multi-asset strategies, trend-following systems, and funds that offer daily liquidity via the ASX. Always match the product structure to your investment goals and risk tolerance.

The Bottom Line

Managed futures are no longer the preserve of hedge funds and institutional investors. In 2025, they have emerged as a practical, regulated, and effective way for Australians to diversify portfolios, hedge risks, and access global opportunities. With careful selection and allocation, managed futures can help build resilience and improve long-term outcomes in a rapidly changing financial landscape.