Philadelphia partners Josh Deringer and Stephen Hamilton, and Chicago partner David Matteson, authored an article for Futures Magazine on the substantial growth in mutual funds utilizing managed-futures-based strategies and SEC and tax matters relating to these kinds of funds.
The article notes that the funds represent a significant new way for investors to invest in managed futures, and “once regulatory roadblocks are lifted, the growth of mutual fund products will escalate even more.” The attraction of managed futures mutual funds for investors and financial intermediaries is that they provide a way for small retail investors to gain access to the managed-futures asset class, in a way that offers daily liquidity, ease of purchase and sale and relatively straightforward tax treatment.
As managed-futures mutual funds continue to evolve, so does the regulatory landscape for these products. Josh, Steve and David discuss the regulatory issues for investors in detail, including rulemaking proposals by the Commodity Futures Trading Commission and Internal Revenue Service review of the tax issues presented.
To read the entire article, click here.