CFM Trend Following strategy “Highly Recommended” by Lonsec


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.”

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