Investor Tax Considerations

Tax Considerations for Futures Investments

Managed futures investments may involve tax treatment that differs from traditional asset classes. The information below is general in nature and is not intended as tax advice. Investors should consult their own tax advisors regarding their individual circumstances.

Key Tax Considerations

• Certain regulated futures contracts and nonequity options may be treated as Section 1256 contracts.
• Section 1256 contracts are generally subject to 60/40 tax treatment, regardless of holding period.
• These contracts are generally marked to market at year-end for tax purposes.
• Section 1256 contracts are generally not subject to wash sale rules applicable to certain securities.
• Tax treatment may vary depending on the instruments traded, investment structure, and investor-specific circumstances.