Sydney, 22 August 2018: Global quantitative asset manager CFM (Capital Fund Management) today announced that its CFM ISTrends Trust, Class A & B, has been upgraded to receive the coveted “Highly Recommended” rating from Australian ratings house Lonsec.
Commenting on the rating, CFM’s Head of Asia Pacific, Steve Shepherd said that he was pleased Lonsec has again recognised the quality of CFM’s investment processes and team.
“CFM ISTrends Trust was rated ‘Recommended’ last year, and the fact that we are now ‘Highly Recommended’ is really pleasing, because it shows that Lonsec’s confidence in our fund is growing, and that they consider our trend following strategy robust and true-to-label,” he said.
According to Lonsec, the ‘Highly Recommended’ rating indicates a very strong conviction that CFM ISTrends Trust will generate risk-adjusted returns in line with relevant objectives, and is considered a preferred entry point to alternative beta strategies.
Mr Shepherd explained that the aim of CFM IS Trends is to provide long-term capital appreciation through returns that seek to be uncorrelated with traditional asset classes, like equities and bonds.
“It’s clear from this new rating that Lonsec believes we have achieved this.
“Advisers agree – they are increasingly looking for strategies which will provide true diversification in an environment where traditional diversification strategies, such as using fixed interest to diversify away from equity risk, are proving less effective than in the past,” Mr Shepherd said.
CFM is a pioneer in the liquid alternative beta space, and Lonsec pointed to CFM’s long heritage and experience in managing highly active hedge fund strategies as giving them an edge in terms of research when compared with competitors.
The competitive fees structure was also highlighted as a positive for the fund. Lonsec previously stated that by undercutting the competition on fees, CFM has the potential to disrupt a high-margin sector.
CFM’s alternative beta strategies, ISTrends Trust and ISDiversified Trust, are distributed in Australia by Winston Capital Partners, whose Managing Director, Stephen Roberston, said that positive ratings and the recent addition of CFM’s funds to major adviser platforms has seen growth in demand.
“CFM is known for the high quality of its research and experienced investment team. It is a pioneer and world-leader in alternative beta strategies.
We are pleased that more and more advisers and investors can see that benefits of adding alternative beta strategies to their portfolio, and that Lonsec has acknowledged the quality of the fund as well,” Mr Robertson said.
About: CFM (Capital Fund Management) 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$11bn (as at Feb 2018) for our clients across the globe.
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This document is issued by Capital Fund Management LLP (“CFM LLP”) in relation to the CFM Institutional Systematic Trends Trust (the “Fund”). Pursuant to ASIC Class Order 03/1099, CFM LLP, the investment manager of the Fund, is exempt from the requirement to hold an Australian financial services license under the Corporations Act. CFM LLP is regulated by the UK Financial Conduct Authority under the law of England and Wales, which 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 the Fund.
This document is only available to wholesale resident in Australia. This document is a confidential communication and solely for the use of the person to whom it was addressed. This document is not addressed to any other persons and may not be used by them for any purpose whatsoever. The information provided in this document is general information only and does not constitute investment or other advice. 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