PALM BEACH, Fla. - John Frawley, newly elected head of the Managed Futures Association, said at a conference here that the trade group will tackle the public's negative perception of derivatives.

He said the association will focus not only on complex over-the-counter products, but on exchange-traded futures as well.

"I think we've got, as an industry, some work to do on the image side," Mr. Frawley said.

Investors may regard exchange-traded futures, which comprise the bulk of investments by public futures funds in the U.S., as volatile instruments.

But he said that averaged over the last five years, diversified funds investing in a wide variety of markets with multiple trading advisers were less volatile than traditional debt and equity markets, and offered higher returns.

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