Capital Fund Management has announced its CFM Institutional Systematic Diversified Trust (CFM ISDiversified) has been added to the Macquarie and BT Wrap platforms.
CFM head of Asia-Pacific, Steve Shepherd said advisers and investors were increasingly embracing diversified alternative beta strategies as part of their portfolio.
He said alternative beta strategies sought to identify and exploit alternative betas or risk premiums, via a rules-based quantitative approach.
“These kinds of strategies have historically been associated with hedge funds – which aim to product ‘absolute returns’, in other words, to perform in a wide range of market conditions,” Shepherd said.
“Hegde fund managers employ a wide range of investment strategies not always available to other investors – and these ‘alternative’ strategies produce a return profile which seeks to be un-correlated to traditional asset classes.”
The CFM ISDiversified Trust combined alternative beta strategies to provide some of the benefits of traditional hedge funds but at a lower cost and more liquid format.
The firm said it applied academic techniques to its investment strategies and have looked at opportunities on offer from shifts in data proliferation globally. The alpha and alternative beta strategies include trading liquid financial instruments across global markets, including futures, equities, bonds, options, and spot and forward foreign exchange.