Zenith “Recommended” rating caps strong year for CFM in Australia
Independent research firm Zenith Investment Partners (Zenith) has awarded a “Recommended” Rating to the CFM ISDiversified Trust (the Fund).
CFM Alternative Beta has pioneered an award-winning approach to financial markets. Its global diversified alternative beta strategy has resonated strongly with Australian financial advisers and investors. Funds under management has grown to $47 million since the Fund’s introduction in November 2015.
Head of CFM Asia Pacific, Steve Shepherd said the Zenith rating caps a strong 2016 and follows other notable milestones including a Lonsec “Recommended” rating, and a “Superior Rating” awarded by SQM in April 2016.
“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*, and with far greater liquidity,” Mr Shepherd said.
“These attributes have been recognised by financial advisers looking for true-to-label alternative solutions that aim to have 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).”
Key points from the Zenith rating:
Stephen Robertson of Winston Capital – the Australian distributor of the CFM Diversified Alternative Beta Fund – said key aspects of the Zenith Recommended rating reflect the increasing value placed by financial advisers on strong alternative beta investments.
“The entry of high-quality global managers like CFM into the retail marketplace has enabled financial advisers to access true-to-label investments with proven track records of delivery against defined risk and return objectives.
“Zenith noted that it believes the Fund offers investors an ‘attractive multi-strategy investment solution, which is supported by a high-quality team, with a long history in developing and managing quantitative alternative hedge fund strategies’, he said.”
“Zenith also noted that: ‘CFM is one of the global leaders in multi-strategy hedge funds, in which their flagship strategy is closed for investment and maintains a long waiting list of clients. CFM has partnered with Winston Capital Partners (Winston) to distribute the Fund in Australia. Zenith has a positive view of this type of arrangement given Winston specialise in retail distribution within the Australian market’, Mr Robertson said.”
“Zenith believes the Fund offers investors a relatively low cost way to gain exposure to a liquid and diversified portfolio of hedge fund strategies which is backed by a well-resourced and pedigreed quantitative hedge fund capability.”
The CFM ISDiversified Trust is currently on the investment menus of Colonial First Wrap, Netwealth, Hub24 and Powerwrap.
