Rating endorses CFM alternative beta strategy


By Krystine Lumanta

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Independent research firm Zenith Investment Partners has awarded a recommended rating to the Capital Fund Management (CFM) ISDiversified Trust.

According to Zenith, 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.

The global diversified alternative beta strategy has resonated strongly with Australian financial advisers and investors. Since the fund’s introduction in November 2015, funds under management have grown to $47 million.

The Zenith rating caps a strong 2016, which included a Lonsec recommended rating and a superior rating awarded by SQM in April, according to CFM Asia-Pacific head Steve Shepherd.

“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’ [fee structure] model, and with far greater liquidity,” Shepherd noted.

“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 5 per cent per annum, with constant volatility of 6 per cent per annum, over a full investment cycle.”

The trust is currently on the investment menus of Colonial First Wrap, netwealth, Hub24 and Powerwrap.

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