Aspect Capital launches lower volatility offshore fund

Aspect Capital launches lower volatility offshore fund

UK quantitative investment specialists Aspect Capital has extended its range of funds available to international investors with the addition of its “lower fee, lower volatility” Aspect Core Trend fund.

The new fund, which started trading on 13 September, has received approximately US$100m in seed capital from a European institutional investor and has now been launched into the offshore investment marketplace, the firm said in a statement earlier today.

The investment vehicle will be available to investors structured as an Irish Collective Asset Management Vehicle (ICAV) – also known as a Qualifying Investor Alternative Investment Fund (QIAIF) – with Aspect using existing technology and infrastructure used for its US mutual fund offering.

It aims to deliver “pure momentum-based returns”, targeting an annualised volatility of 10%. The fund’s annual management fee is 1% and no performance fee is charged, the firm said.

Access to US mutual fund

The Aspect Core Trend fund aims to give investors access to Aspect’s existing strategy, the Aspect Core Diversified Programme, which has been available in separately managed account format and, in the US, as a mutual fund 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.

Anthony Todd, chief executive of Aspect, said: “This extension of our investment offer reflects our commitment to provide investors with systematic, quant-driven strategies globally via a range of appropriate fund structures and underpins Aspect’s prospects for future growth.”

Aspect Capital was established in 1997 and is a UK-based systematic investment manager with 120 staff based in offices in London, Stamford and Hong Kong. The company currently manages US$6.4bn, which is primarily invested in the Aspect Diversified Programme