Leading independent investment researcher, Lonsec, has awarded Capital Fund Management’s (CFM) Institutional Systematic Diversified Trust (CFM ISDiversified) a “Recommended” rating, adding strong momentum to the Fund’s market debut and solid penetration amongst financial advisers in Australia.

Winston Capital Partners, the local distributor of CFM ISDiversified, said the Lonsec rating was a pleasing win and follows other notable recent milestones.

In addition to the Lonsec rating, the Fund has received a ‘Superior’ rating from independent investment research group SQM Research, and was approved for listing on several investment platforms, including Hub 24 and Netwealth among others.

“Since the fund was launched in Novemeber 2015 it has received inflows from institutional investors that serve financial advisers, and had over $37m in FUM at the end of June 2016,” said Stephen Robertson of Winston Capital.

“Winston routinely sees financial advisers who are looking to add alternatives to their model portfolios or actively reviewing their models in search of better solutions. Generally, advisers’ choices for high quality, simple-to-understand, affordable investment solutions have been quite limited, particularly compared with the choices offered to the institutional market,” he said.

Mr Robertson said the entry of high-quality global managers like CFM into the retail space has enabled welcome access for advisers to true-to-label investments with proven track records of delivery against defined risk and return objectives.

The Fund has been designed to offer investors a diversified portfolio of well-known and persistent alternative strategies that can be systematically harvested from markets, but at a fraction of the cost of the typical ‘2 and 20’ model (see note), and with far greater liquidity.

The fund targets zero correlation to equity and bond markets, whilst aiming to deliver returns of cash plus five per cent per annum, with constant volatility of six per cent per annum (over a full investment cycle).

“These important attributes were highlighted in the recent ‘Brexit’ inspired market volatility,” Mr Robertson said.

In awarding the Fund a “Recommended” rating, Lonsec noted that “(CFM) applies a logical and transparent investment process, which is both systematic and repeatable. The strategy is well-conceived from both a philosophical and a quantitative research perspective.” Further, Lonsec noted that “the Fund is managed by a high quality and experienced investment team which has a long and successful heritage in active quantitative hedge fund investing.”

Note: ‘2 and 20’ refers to the typical fee structure for alternative investment products of a two per cent management fee, with a 20 per cent success fee after certain performance hurdles have been met.

Please enter your details below. The ISTrends Fund Fact Sheet will be sent to your nominated email address


* Required
CAPITAL FUND MANAGEMENT LLP (CFM)
The products, information and other material contained on this website are only directed at investment professionals in Australia. Please note that you will be prevented from purchasing or dealing if you are not eligible for products and services offered within this site. Materials contained within this website have been made available for information purposes only. It does not contain any investment recommendations nor provide investment advice. Neither CFM nor its related entities, directors or officers guarantee the performance of, or the the repayment of capital or income invested. Past performance is not necessarily indicative of future performance. Pursuant to ASIC Class Order 03/1099, CFM LLP, the Investment Manager of the Fund, is exempt from the requirement to hold an AFSL under the Corporations Act. CFM LLP is regulated by the UK Financial Conduct Authority ("FCA") under United Kingdom laws which differ from Australian laws. These financial services are provided only to wholesale clients as defined in subsection 761G(7) of the Act. The information on this website has been prepared on this basis and is for the use of wholesale clients only. It is in no way intended for use by retail clients and should not be distributed to or relied upon by a retail client.
TERMS & CONDITIONS
What is a financial services licensee? A person or entity is a financial services licensee if they hold an Australia financial services licence issued pursuant to the Corporations Act 2001
BY CLICKING ON 'I AGREE', I DECLARE I AM A FINANCIAL SERVICES LICENSEE AS DEFINED IN THE CORPORATION ACT 2001.