Aspect Capital Debuts New Core Trend Fund as Low-Cost Liquid Alt

Sep 15 2016 | 11:19pm ET

Systematic investment manager Aspect Capital has launched a new fund aimed at delivering momentum-based returns for lower cost and with lower volatility.

The new fund, named Aspect Core Trend Fund, started trading on September 13, the company said in an email to FINalternatives. It has received approximately $100 million in seed capital from an unidentified European institutional investor.

The fund is based on an existing Aspect strategy, the Aspect Core Diversified Programme, which has been available in separately managed account format and as a ‘40 Act mutual fund in the U.S. since 2014. The new fund provides daily liquidity and aims to identify and capture directional price trends across a diversified range of 80-90 highly liquid financial and commodity futures and forwards markets. The markets are spread over four asset classes: commodities, currencies, fixed income and stock indices.

The new fund is structured as an ICAV in Ireland, Aspect said. This enables the company to leverage its scalable existing technology and infrastructure so as to allow the fund to trade in a cost-effective way. Utilizes Aspect’s existing trend following technology and rigorous risk management framework, the fund is targeting annualized volatility of 10%, the company added. Annual management fees are 1% and no performance fee will be charged.

“This strategy benefits from the continuous research and development that has gone into the Aspect Diversified Programme over the past 20 years,” said Anthony Todd, CEO of Aspect, in a statement. “It is able to take advantage of Aspect’s significant experience in developing and operating medium-term trend following models, which has always been our main focus. This extension reflects our commitment to high quality systematic, quant-driven strategies globally via a range of appropriate fund structures.”

Based in London, Aspect Capital was founded in 1997 by former AHL executives Anthony Todd and Martin Lueck, along with Michael Adam and Eugene Lambert. The firm currently manages approximately $6.4 billion in systematic investment strategies. 

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