Alternative beta fund gets two positive ratings


Global investment manager, Capital Fund Management (CFM)'s alternative beta fund received a ‘recommended' rating from Lonsec and a ‘superior' rating from an independent investment research group, SQM Research.
A distributor of CFM's institutional systematic diversified trust, Winston Capital Partners, said that the fund was available with Netwealth and HUB24, and since it launched in November 2015 it received $37 million of funds.
Winston Capital's Stephen Roberston found that financial advisers were recommending the fund as they wanted to add alternatives to their model portfolios or active review methods.
"Generally, advisers' choices for high quality, simple-to-understand, affordable investment solutions have been quite limited, particularly compared with the choices offered to the institutional market," he said.
High-quality global managers like CFM had been welcomed into the true-to-label investment space, as they had proven track records of delivering return objectives and defending portfolios against risk, he said.
According to Money Management's Investment Centre, the CFM Institutional Systematic Diversified Trust underperformed against the sector average on a year-to-date basis.
Click here: http://investmentcentre.moneymanagement.com.au/factsheets/mi-mxffh/cfm-…
Recommended for you
Lonsec and SQM Research have highlighted manager selection as a crucial risk for financial advisers when it comes to private market investments, particularly due to the clear performance dispersion.
Macquarie Asset Management has indicated its desire to commit the fast-growing wealth business in Australia by divesting part of its public investment business to Japanese investment bank Nomura.
Australia’s “sophisticated” financial services industry is a magnet for offshore fund managers, according to a global firm.
The latest Morningstar asset manager survey believes ETF providers are likely to retain the market share they have gained from active managers.