Demand for alternative beta and trend following strategies prompts investment manager Capital Fund Management (“CFM”) to open Sydney office

Sydney, 24 January

Global alternative beta investment manager CFM is pleased to announce the opening of its first permanent Australian office in the Sydney CBD. CFM’s range of liquid alternative beta strategies have been available in Australia for over ten years.

Philippe Jordan, President of CFM, said that demand for alternative assets has been growing globally, including amongst sophisticated Australian institutional and retail investors.

“Market conditions are challenging at the moment, which means that portfolio diversification is particularly important. Investors are looking for new and effective ways of diversifying their portfolios and improving risk-adjusted returns, and demand for our alternative beta strategies has been growing quickly.

“Alternative beta strategies have the ability to be effective diversifiers, smoothing risk-adjusted returns, including in a crisis, but I would stress that the most important thing to understand about alternative strategies is that they don’t target specific market conditions – they are long-term strategies, and offer diversification benefits in a wide range of market conditions,” Mr Jordan said.

Illustrating Mr Jordan’s point, the Future Fund has increased its allocation to alternatives from around 42%[1] at the end of 2014 to almost 47%[2] at the end of September this year.

CFM’s Head of Asia Pacific, Steve Shepherd, said the time was right for CFM to have a permanent, on-the-ground presence and team.

“Australian investors are becoming much more aware of alternative strategies and how they work, but these strategies can appear complex at first glance, so our aim is to work alongside investors to demonstrate how alternative beta can fit into their portfolio.

Mr Shepherd will lead an initial team of four in Sydney office, but it is expected that the team will double in the next 3-4 months, with the addition of sales, operations and product specialists.

Winston Capital Partners will continue to work with financial advisers to distribute CFM’s alternative beta funds, and Mark Yetman will be responsible for servicing and growing CFM’s institutional client base.

“We are looking forward to increasing the level of service to our institutional clients while continuing to address financial advisers’ needs. Our aim is to become more connected to both the market and our clients,” concluded Mr Shepherd.

[1] Future Fund of Australia. Asset allocation as at 31 December 2014.
[2] Future Fund of Australia. Asset allocation as at 30 September 2018.

Disclaimer

Capital Fund Management LLP (CFM LLP) is registered as a Foreign Services Provider (“FFSP”) with ASIC under ARBN 624 703 886, operating under the same Class Order CO 03/1099 applicable to UK FFSP. CFM is regulated by the UK Financial Conduct Authority under the laws of England and Wales. Pursuant to ASIC Corporations (Repeal and Transitional) Instrument 2016/396, CFM LLP is exempt from the requirement to hold an Australian financial services license under the Corporations Act. The laws of England and Wales differ from Australian laws.

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