Global hedge fund Capital Fund Management has made its long-term trend-following strategy available to Australian investors with the launch of a new trust.
The IS Trends Trust is a managed futures trend-following trust created by global hedge fund Capital Fund Management (CFM) for Australian investors.
CFM head of Asia-Pacific Steve Shepherd said that most returns from managed futures strategies come from long-term trend-following.
“Trend-following has been shown to work for the past 200 years – it’s a strategy which takes advantage of trends in a large range of global assets and markets,” Mr Shepherd said.
“Our strategies are quant-based and well diversified across and within asset classes and markets, and executed with our systematic trading strategies.”
CFM distributor Winston Capital Partners’ managing director Stephen Robertson said financial advisers have been requesting more alternative beta strategies, but that this had been “few and far between”.
“That’s where we believe IS Trends Trust may have some added value – it’s a managed futures trust that provides investors with access to long-term trend-following in five asset classes in over 100 different markets,” Mr Robertson said.
The new fund offers investors two unit class options: Class A, with a 10 per cent volatility target, 0.6 percent per annum management fee and 10 per cent performance fee, and Class B, with a 15 per cent volatility target, a 1.125 per cent management fee and no performance fee.
The CFM IS Trends Trust has received a ‘Recommended’ rating from Lonsec.