Sydney, 25 January 2019: Global quantitative asset manager Capital Fund Management (CFM) today announced that its trend following strategy, CFM IS Trends Trust Class A & B, has received a ‘’Highly Recommended” rating from Lonsec. In addition, it has maintained its “Recommended” rating from Zenith. The fund was also a finalist in the disruptor category at the 2018 Annual SuperRatings and Lonsec Fund of the Year Awards.
The recognition for the strategy follows the recent opening of CFM’s permanent Australian office in Sydney at the end of last year.
CFM’s Head of Asia Pacific, Steve Shepherd, said that Australian investors are increasingly seeking out alternative strategies to help diversify their portfolios.
“The trend following strategies we manage are designed to be liquid, low-cost and transparent, and are intended to be de-correlated from traditional benchmarks. They are absolute return strategies, which means they aim to perform in all market conditions, and can help smooth portfolio returns over the long-term.
“ISTrends invests in long-term trend following strategies, which seek to capture momentum effects and price trends across a range of markets, including equities, currencies, bonds and interest rates, using a systematic or quant-based investment process,” Mr Shepherd explained.
Zenith’s ratings were announced in its 2018 Managed Futures & Global Macro/Absolute Return Sector Report, which evaluated 22 funds in the sector across a range of different metrics, and concluded by revalidating “the diversification benefits that managed futures introduced to a traditional portfolio.”
CFM ISTrends Class B was rated for the first time, with Zenith noting it is well placed to achieve its investment objectives, “underpinned by CFM’s impressive pedigree in quantitative investing”, and that the fund “provides a highly attractive trade-off between investment merit and cost”.
Lonsec’s ratings were announced in its 2018 Alternatives Sector Review. There were nine ratings changes and 15 new strategies reviewed for the first time. Only five were awarded “Highly Recommended”, including CFM IS Trends Trust Class A & B.
‘Highly Recommended’ is Lonsec’s highest rating and means Lonsec has a “very strong conviction that the fund can generate risk adjusted returns in line with relevant objectives.”
Winston Capital Partners distributes CFM producs to the Ausralian adviser market. Managing Director, Stephen Robertson commented:
“The quality of CFM’s funds is reflected not only in these excellent ratings, but in the strong demand we have experienced from institutional and retail investors. With these ratings, our investors now have yet more comfort that CFM is a world-class manager with proven strategies.”
About: Capital Fund Management (CFM) is a global quantitative and systematic asset management firm. Since 1991 we have applied a scientific approach to finance to develop alternative investment strategies that create value for our clients. From offices in Paris, London, New York, Tokyo, and Sydney we manage over US$9bn (as at Dec 2018) for our clients across the globe.
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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.
The Trust Company (RE Services) Limited ABN 45 003 278 831, AFSL 235 150 (“Perpetual”) is the trustee of, and issuer of units in CFM IS Trends Trust (the “Fund”).
This communication is only available to wholesale investors in Australia. The content of this document does not constitute an offer or solicitation to subscribe for units in the Fund.
CFM LLP accepts no liability for any inaccurate, incomplete or omitted information of any kind or any losses caused by using this information. Any investment decision in connection with the Fund should only be made based on the information contained in the Product Disclosure Statement of the Fund. CFM LLP does not guarantee repayment of capital or any particular rate of return from the Fund. CFM LLP does not give any representation or warranty as to the reliability or accuracy of the information contained in this document. All opinions and estimates included in this document constitute judgments of CFM LLP as at the date of this document and are subject to change without notice.
Any description or information involving investment strategies, processes or allocations is provided for illustrations purposes only, may not be fully indicative of any present or future investments and is not intended to reflect anticipated performance. Targets or objectives, including with respect to returns, volatility or leverage, if any, are used for measurement or comparison purposes only. Such targets or objectives reflect subjective determinations based on a variety of factors, including, among others, investment strategy, prior performance, volatility and leverage measures and expectations and market conditions. There can be no assurance that such targets or objectives will be met over any particular time horizon. Performance may fluctuate as can volatility and leverage. Targeted returns are not intended to be actual performance and should not be relied upon as an indication of actual or future performance.
Unless otherwise indicated, performance results are net of applicable fees and expenses and presume reinvestment of income. All of the figures presented in this document are unaudited. No representation is made that the risk management, investment process, trading performance, investment objectives or the control of operational risks, credit risks and other risks involved in any trading strategy of the Fund or CFM LLP will or are likely to be achieved or successful or that any fund or underlying investment will make any profit or will not sustain losses. Any measure of risk is inherently incomplete and does not account for all risks or even all material risks, such as risks due to unforeseen catastrophic events. Investment in the Fund carries significant risk of loss.
Any statements regarding market events, future events or other similar statements constitute only subjective views, are based upon expectations or beliefs, involve inherent risks and uncertainties and should therefore not be relied on. Future evidence and actual results could differ materially from those set forth, contemplated by or underlying these statements. In light of these risks and uncertainties, there can be no assurance that these statements are or will prove to be accurate or complete in any way.
PLEASE NOTE THAT AN INVESTMENT IN THE FUND CAN INVOLVE SIGNIFICANT RISKS AND SHOULD BE REGARDED AS HIGHLY SPECULATIVE IN NATURE. THE VALUE OF AN INVESTMENT MAY GO DOWN AS WELL AS UP AND THERE MAY BE SIGNIFICANT RISK OF LOSS. THERE IS NO GUARANTEE OF TRADING PERFORMANCE AND PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
NOTES TO HYPOTHETICAL PERFORMANCE INFORMATION
HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY FUND OR ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.
The Lonsec Rating (assigned July 2018) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445. The Rating is limited to “General Advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold Capital Fund Management LLP product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria.
For further information regarding Lonsec’s Ratings methodology, please refer to our website at: http://www.lonsecresearch.com.au/research-solutions/our-ratings