Fund in Focus: Aspect Diversified Futures – Class Aby Chris Limberg on Apr 15, 2016
The Aspect Diversified Futures fund is a London based investment fund manager that invests in a broad range of investments across various assets classes. This investment provides a different style to investing from the standard equity fund manager. Aspect use quantitative research to invest in global futures markets by following medium term trends. (The fund managers describe this as not being the first to the party and not the last to leave. This means that they wait for a trend to establish, build a position and then take profit before the trend turns)
The quantitative investment style involves sophisticated computer algorithms which have been designed and tested by Aspect. Aspect currently employs an investment team of over 100 people who test and develop the investment process. The investment process is continuously reviewed to ensure that the Aspect investment process remains robust and dynamic to deliver results.
What are Futures?
A futures contract is a contract to buy or sell something in the future at a pre-agreed price. Futures originated in the 1840s in the USA for farming commodities and now includes financial assets such as currency, interest rates, equities, bonds, metals, agriculturals and energies. They are highly liquid and a low cost way of attaining exposure to the underlying asset.
The benefits that the Aspect Diversified fund provides to your investment portfolio include:
- A low correlation to other asset classes over the long term
- Access to opportunities in a broad range of liquid markets
- An ability to benefit from both rising and falling markets
- Diversification of your investment portfolio
- A long term track record of positive performance
This graph shows a comparison of the Aspect fund from its inception in December 1998 to March 2015. This shows the value Aspect have been able to provide outperforming other major asset classes over a long period of time.
This graph show how the Aspect fund has a low correlation to the equity markets (ASX 200 in the example). The benefit of low correlation is that when equity markets are under performing it is more likely that the Aspect fund will have a differing return profile. The bar chart below highlights Aspects positive performance during the GCF in 2008-2009 when the ASX 200 was negative.
Limberg Asset Management have included a weighting between 5% to 15% for the Aspect fund in the investment models to provide diversification from traditional equity exposure and aim to generate performance in all market conditions.
*Inception date for Australian based fund is 8/3/2010
**Performance is to the end of February 2016